The chief investment officer of a digital asset investment firm is raising new questions about the future of crypto for one key reason.
Jeff Dorman, CIO of Arca, believes that Bitcoin (BTC) and many other digital assets are unlikely to see an increase in value due to the explosion in asset tokenization.
Dorman cautions that there may be only 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.
Said Dorman,
“Crypto is truly in an existential crisis now. Everything we thought would happen on blockchain is happening now, but little to no value is returning to the stocks or tokens in our ecosystem. The big protocol thesis is long dead. BTC has nothing to do with ANY of the real growth drivers of blockchain: no exposure to the growth of stablecoins, decentralized finance (DeFi), or real-world asset tokenization (RWA).
Keep thinking that a handful of DeFi tokens, token launchpad companies, and GLXY (Galaxy Digital) stocks are the only clear winners from this trend – when all assets are on-chain, DeFi goes from a niche experiment to a complete financial plumbing engine.
However, macro analyst and institutional crypto veteran Dan Tapiero disagrees with Dorman.
“It’s remarkable how wrong that is.”
In response to Tapiero’s criticism, Dorman doubles down on his views.
“Where do you see the value coming from all the new blockchain use cases? We’re seeing a lot of tokenization and high adoption of stablecoins and the value is coming back 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: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions 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 The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/herryfaizal/Salamahin
