The chief investment officer of a digital asset investment firm is raising new questions about the future of cryptocurrencies for one key reason.
Arca CIO Jeff Dorman says he believes Bitcoin (BTC) and many other digital assets are unlikely to see their value increase due to the explosion of asset tokenization.
Dorman warns that there may only be a few beneficiaries of the latest big trend in blockchain use cases, such as the New York Stock Exchange’s (NYSE) plan to launch a tokenized securities platform for 24/7 trading and stablecoin-based financing.
Dorman says,
“Cryptocurrencies are now truly in an existential crisis. Everything we thought would happen on blockchain is happening now, but little to none of the value is accruing to stocks or tokens in our ecosystem. The thick protocol thesis is long dead. BTC has nothing to do with ANY of blockchain’s real growth drivers: there is no exposure to the growth of stablecoins, decentralized finance (DeFi), or tokenization of real-world assets (RWA).
Continue to Think About a Handful of DeFi Tokens, Token Launch Platform Companies, and GLXY [Galaxy Digital] “Stocks are the only clear winners of this trend: when all assets are on-chain, DeFi goes from niche experiment to full-fledged financial engine.”
However, macro analyst and institutional cryptocurrency veteran Dan Tapiero disagrees with Dorman.
“It’s remarkable how wrong this is.”
In response to Tapiero’s criticism, Dorman reaffirms his point of view.
“Where do you see value accruing in all the new blockchain use cases? We’re seeing a lot of tokenization and a lot of stablecoin adoption and value accruing to intermediaries like BlackRock, Securitize and Tether.”
Bitcoin is trading at $88,992 at the time of writing, down 1.9% in the last 24 hours.
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Disclaimer: The opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and trading are at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is it an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/herryfaizal/Salamahin
