Crypto is not replacing the U.S. dollar: Bitfury CEO Brian Brooks
- Bitfury CEO, Brian Brooks, states that the idea that crypto valuations can replace the USD is false. Instead, they should be considered a replacement for the current value transfer system.
Former US Acting Comptroller of the Currency and current Bitfury CEO, Brian Brooks, has said that cryptos should be likened to internet stocks and not considered a currency. Brooks said it is a great misunderstanding to think that cryptos are failing because they cannot replace the USD.
Bitfury CEO on Crypto Market Streets
Brooks shared his opinions in an interview with CNBC on Monday during the aspen ideas festival. The former US Acting Comptroller of the Currency explained that the goal of crypto is to replace the centralized banking system with an automated network. Thus, enabling user control instead of bank control.
He added that crypto-assets with prices could be likened to internet stocks. The wider crypto market has been in a slump since the beginning of this year. Thus, many fear that another crypto winter is about to happen. The market conditions have forced many cryptos and tech firms to pause hiring plans.
Some of them, like Coinbase and Robinhood, have even cut their staff strength. Hence, many industry experts predict the collapse of thousands of digital tokens. Based on last month’s Terra network crash, their prediction could come to pass. Multiple data confirm the existence of dozens of blockchain platforms and nearly 20,000 cryptocurrencies.
Some industry players, such as the Web3 foundation CEO, Bertrand Perez, said that the terra network crash indicates that many users are confused with the countless number of blockchains and tokens available in the crypto space.
Hence, they are far exposed to too many risks. Perez compared the situation to the beginning of the internet boom. During that time, most of the dot-com companies were scams; they had no value and eventually vanished.
Now, the majority of the dot-com firms are legit and useful. Brooks noted that Bitcoin’s performance in the last 12 months is still five times better than the S&P 500 despite the crypto market slump. However, the leading digital has plunged 56 percent year-to-date.
So What?
Then, he added that it isn’t surprising that there is no session discussing the future of US equities at this festival. Brooks also explained that the value of tokens depends on the adoption rate of the underlying technology. For instance, the greater the number of Bitcoin-related transactions, the higher its value.
Hence, the Bitcoin price won’t remain at $20,000 since people will keep using it. This explanation is also applicable to other digital assets. The value of any token depends on the value the network is providing.
Brooks said that the future of stablecoins will be like bank deposits without any fee. No minimum balance, monthly maintenance, or transaction fees. Hence, it is likely that stablecoins will have a greater effect on low-income Americans. Brooks played a major role in the first regulatory framework for the definition of stablecoins and their introduction into the US banking system.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
