In a recent interview for CNBC Television, Mark Yusko, the Founder, CEO, and CIO of Morgan Creek Capital, discussed the significance of BlackRock’s new Bitcoin ETF and what it means for both traditional finance and the crypto space moving forward.
According to Yusko, the entry of traditional financial services firms like BlackRock, Citadel, Schwab, and Fidelity into the crypto space is a validation of the technological innovation that has been taking place over the last 14 years since the birth of Bitcoin. This validation is not just for the technology but also for the business models, signaling that cryptocurrency is here to stay.
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Show more +Yusko believes that the current rally in the crypto market is just the beginning. He explained that we have just entered the seasonal period of “crypto summer,” a four-year cycle around the Bitcoin halving event, which is when the block rewards for the Bitcoin blockchain change. This cycle typically leads to a period of accumulation going into the event, followed by a speculative blow-off after the event, and then an overreaction on the downside, referred to as “crypto winter.”
Despite some narratives suggesting that crypto and web 3 have lost their relevance, Yusko strongly disagrees. He argues that digital assets are far from being in the waste bin, pointing to the fact that we’re talking about a $1.2 trillion asset class that has grown from zero in just 14 years. He further emphasized that blockchain technology is one of the four pillars of the digital age, along with AI, computer chips, and data.
Yusko predicts that every stock, bond, currency, commodity, piece of art, private business, and piece of real estate will eventually be a token on a blockchain, an entry on a ledger that is permanent and immutable. This shift will eliminate the need for trust and save over seven trillion dollars a year, which is currently wasted due to the friction of the trust industry.
When it comes to Bitcoin, Yusko sees it as digital gold, taking the place of what gold has done for 5,000 years. Bitcoin is an asset that exists in the absence of a liability, making it the new base layer of money. He believes that the future of finance will be built on top of this new form of money.
While other applications of blockchain technology like Ethereum may have a role, Yusko sees them more as potential replacements for fiat currencies. Regardless, the entry of traditional financial firms into the crypto space and the launch of products like BlackRock’s Bitcoin ETF are clear signs that the crypto industry is gaining mainstream acceptance and is poised for significant growth in the coming years.
