The cryptocurrency industry is on the rise among the Wall Street giants. At the end of the year letter, LionTree CEO Aryeh Bourkoff highlighted the exponential growth and potential of the nascent industry. Thus, citing the recent quest of the ConstitutionDAO to buy the NFT from the US Constitution. He said,
âIt embodies the potential of the new economy: cutting-edge technology serving communities who can act on their shared ideas not only recreationally, but in ways that create lasting value. “
He also argued that cryptocurrencies could serve the internet’s goal of empowering individuals. According to him, the crypto industry has now become “impossible to ignore” with the industry’s market capitalization standing at over $ 2 trillion.
Additionally, he noted that cryptocurrencies also help those with excess cash to protect their funds against inflation while achieving higher returns and returns.
Developing LionTree’s future crypto plans, the banker noted,
“We are currently exploring ways to start accepting crypto as a form of payment for our services, and in the not-so-distant future, as our ecosystem grows and our relationships continue to mature, we may even create our own token. trust LionTree. “
However, Bourkoff’s praise was accompanied by issues that he believes need to be addressed before cryptocurrencies really become mainstream. He noted that the industry needs to become more energy efficient to gain wide acceptance.
So adding that a single transaction on the Ethereum network uses more energy than an average American household in a week. Notably, he also mentioned the need to adopt user-friendly interfaces by crypto platforms so that their user base can expand further from a predominantly male and tech-savvy population.
Perhaps the biggest problem would be meaningful regulation, according to Bourkoff, as it would include the governance of cryptocurrencies explicitly marketed as alternatives to fiat currencies. He said,
âGlobally, countries will need to balance regulation and innovation, and weigh their desire to attract the next generation of entrepreneurs against their desire to control through centralized currencies. “
LionTree has enjoyed a successful 2021, having negotiated major media acquisition agreements, including those between WarnerMedia and Discovery Inc. as well as Amazon’s acquisition of MGM Studios.
Bourkoff and his company are one of the mainstream finance proponents who are now dipping their toes into the cryptocurrency industry. Most recently, billionaire investor Ray Dalio revealed that he owns “bits” of Bitcoin and Ethereum, adding that,
âIt has been an incredible accomplishment for Bitcoin to have achieved what it has done, to write this program, not to be hacked, to make it work and to have adopted it as it has been. . “
Indeed, a recent survey by EY found that one in four hedge fund managers expect to increase their exposure to cryptocurrencies over the next two years. Moreover, 20% of institutional investors surveyed claim the same thing.