Naval Ravikant, the AngelList founder, has yet again some bullish things to say about the cryptocurrency market.
In his latest AMA session on Twitter, he defined DeFi as “The beginning of the end for Wall Street.”
The decentralized finance sector of the cryptocurrency industry, which is growing like crazy, has a big and bright future. However, according to market participants, it is just the beginning, and we have a long way to go.
The sector had a wild run in Q3 of 2020 when money poured in bulks with the value locked in DeFi, increasing 1,500% this year. Just last week, the TVL hit a new all-time high at $12.41 billion.
The price of DeFi tokens also went crazy, only for the market to top in September.
Ravikant, who has been an early-stage investor in some of Silicon Valley’s most successful startups such as Twitter and Uber, believes “De-Fy” is sustainable.
This is because the next big investment thesis for the next decade, according to him, is “Decentralization.”
This is not the first time he has shared his support for the cryptocurrency market. Ravikant has long been a proponent of the industry and an investor in Bitcoin and Ethereum.
Back in 2017, he wrote a 27-part tweetstorm about blockchains, networks, and markets. He has called Bitcoin and crypto “a revolution.”
And much like any passionate crypto market participant, he had once said, “Once you figure it out it’s hard to think about anything else. It’s hard to think that there’s any other thing that’s going on that’s as important now.”
In 2020, especially, Bitcoin, crypto, and DeFi have become even more important with governments printing money like crazy and censorship taking over the world.
The leading digital currency not only got its place in the publicly listed companies’ balance sheet and replaced the devaluing cash, but PayPal has also exposed cryptos to its 300 million users.
As we reported, the investment banking giant JPMorgan also changed its tune on BTC. While its CEO Jamie Dimon called it a fraud, in a recent report, the bank compared it to trillion-dollar market cap gold, which is a traditional store of value.
According to Ravikant, given that the precious metal is a “non-earning asset,” it can’t hold its SoV status “for long.”
This year, we also see bitcoin increasingly becoming a store of value and a hedge as inflation. Compared to gold, BTC also has a long way to go, and despite being a non-earning asset,
“Bitcoin is still only at ~1% of what it’ll be worth if it succeeds, so there are plenty of gains to be made along the way,” said Ravikant.
When it comes to performance, digital assets are already beating traditional assets by a wide margin. Bitcoin, which has a market cap of $254 billion and has been the best performing asset of the last decade, recently made a 34-month high as it surged past $14,000, on yet another bullish cycle positioned to take over the 2017 peak of $20,000.
As for when a new high will come, like Ravikant said, “Right after you give up.”