Brian Brooks, a former US Monetary Authority during the Trump administration, said the price of cryptocurrencies should look more like Internet stocks than currencies.
The biggest misconception about cryptocurrencies is that they “if they haven’t done a great job of replacing the US dollar, crypto has failed its mission,” currently CEO of Bitcoin Mining and Cryptocurrency Technology Company Bitfury Group. Brooks told CNBC’s Iran Muii at the Aspen Ideas Festival on Monday.
“Most of the cryptography is to replace the central banking system with a network that allows user and banking control … Priced crypto assets are like Internet stocks,” Brooks said. .. “If you think there will be more internet traffic, it’s like betting on Google. In short, people will go back to the post office, right? But not Ethereum or Ripple. They’re trying to replace the US dollar. It is about to replace the system that conveys value. “
The entire crypto market was sluggish in 2022, another “Crypto Winter.. Some crypto and tech companies quickly overturned their hiring plans, but many include major exchanges. CoinbaseDismissed the worker in the crypto price and transaction slides.
It also has many people in the industry Predict that potentially thousands of digital tokens could collapseGrowing concerns only after recent The collapse of the so-called algorithm stablecointerraUSD And related digital token Luna. According to a CNBC survey, there are over 19,000 cryptocurrencies and dozens of blockchain platforms.
Terra’s problem is, “Basically, we’re at the stage of having too many blockchains and too many tokens. This confuses users and poses risks to them,” said Web3 Foundation CEO. Bertrand Perez said. I told CNBC at the World Economic Forum in Davos last month.
“Like the beginning of the internet, you have a lot of dot-com companies, many of them are scams, do not bring value, everything is cleared. And now we are very useful. We have a legitimate company, “Perez said.
Brooks said Bitcoin has five times more than the S & P 500 in the last 12 months, despite the price plunge, and it’s worth noting that there is no session on “the future of US equities” at Aspen Ideas. rice field. festival. Bitcoin has fallen by more than 56% to date.
But even in the midst of these rapid changes in valuations, cryptocurrency pricing is “less relevant than Google’s volatility,” he said.
“The value of these tokens you are getting is related to the adoption rate of the underlying ones. [technology]With tens of millions of people trading Bitcoin, the value of Bitcoin goes up significantly, “he said. It’s the same as many other things, “Brooks said. “The value of the network determines the value of the token,” he added.
Brooks, who signed the first regulatory guidance that defined what Stablecoin is and how it is allowed within the U.S. banking system, said, “Stablecoin is what people think about today’s bank deposits. It will be a thing. “
“These are bank deposits with no minimum balance fees, monthly maintenance fees, or transaction fees,” Brooks said, saying that Stablecoin believes it will have a significant impact on low interest rates. As a result, American income.
Disclosure: NBCUniversal News Group is a media partner of the Aspen Ideas Festival.
