Mark Yusko – the founder and chief executive officer of Morgan Creek Capital Management – feels that bitcoin has become large enough and strong enough in recent days that it can no longer be ignored by investors or companies.
Mark Yusko: We Can’t Ignore Bitcoin
In a recent interview, he comments:
We really believe that we’ll look back five years from now and it will be deemed fiduciarily imprudent to have zero exposure to digital assets.
As it stands, many companies – some of which are quite large – have already begun to invest hundreds of millions to billions of dollars in the world’s largest digital currency by market cap. Both electric car company Tesla and software firm MicroStrategy are enterprises that have invested quite a bit of money in the asset, while other institutions – such as Square, Massachusetts Mutual and Stone Ridge – also own large stakes in the cryptocurrency.
But while all this may seem solid at first, the truth is that many companies have not taken the step forward into crypto territory, claiming that they are either examining virtual currencies a little more or that they are only beginning to dabble in them. While Yusko feels that the day will come when many companies do invest in crypto, they have been relatively slow to join the game.
He also thinks that regulators have been slow to examine these currencies as legitimate money, though for the most part, they are beginning to open doors up and consider crypto-based products for the future. When it comes to a bitcoin ETF, for example, Yusko states:
Our view on the ETF is it is going to happen. We have invested in one of the asset management groups that has an application on file.
The total valuation of the cryptocurrency market now exceeds $2 trillion, and bitcoin is at the forefront of the space. Yusko further mentions:
You can’t ignore it anymore. I really think we are at an inflection point.
He also says that many cryptocurrencies are trying desperately to fight their way up the financial ladder. To do this, they must compete and battle for space, which Yusko thinks is going to push crypto deeper into mainstream territory. He comments:
They’re so competitive with one another. I think that’s going to drive additional adoption.
Crypto Is Becoming More Mainstream
Lastly, he commented that blockchain is really moving up in the technology world. It is no longer something that simply applies to finance. Rather, it can be applied to multiple businesses, and thus any firms that seek to ignore it or reject it are only postponing the inevitable, as most businesses will likely run on blockchain in the coming years. Yusko says:
In a world where technology is moving us to a more borderless society, you don’t want to fight the technology. You want to be the first to embrace it.