Kyle Samani, the co-founder of Multicoin, accepted an interview with BiTweet this week. In the interview, he said that Bitcoin is the tipping point for the next round of crypto bull market.
Kyle Samani is the co-founder and managing partner of Multicoin Capital. He graduated from New York University Stern with a major in Finance and Management. He co-founded Pristine, an enterprise software company that was acquired by Upskill in 2017. In 2017, he participated in the establishment of Multicoin Capital, a crypto asset investment company.
According to BiTweet data, the price of Bitcoin, the largest cryptocurrency by market capitalization, has exceeded $19,000. He told BiTweet in an interview that Bitcoin is the catalyst for the next round of crypto bull market. Central banks in various countries are printing money in large quantities, and people are worried about inflation, which is the reason for the rise in the price of Bitcoin.
Kyle Samani also stated that Bitcoin currently does not threaten the status of legal currencies such as the US dollar, the euro or the Japanese yen, so the government currently has no reason to ban the cryptocurrency.
He believes that encrypted assets will create the largest transfer of wealth in history, especially in the context of the new crown epidemic. Cryptocurrencies will transfer wealth from legal currency holders to new non-inflationary currency holders.
Regarding the DeFi boom this summer, Kyle Samani believes that DeFi will not cause a bubble like the ICO in 2017, although it will cause a lot of attention. Regarding liquid mining, he told BiTweet in an interview that most of the current teams are not doing very well in this regard. Although this model will not be small in the next few years, the current income of almost all projects Will fall.
The following is the interview record:
Bi Tweet: You mentioned before that encrypted assets will create the largest transfer of wealth in the history of the Internet. Why?
Kyle Samani: The current market value of crypto assets is US$200-300 billion, and it is clear that it will grow to 10 trillion or even 50 trillion. Institutions move slowly, while individual investors move quickly.
Bi Tweet: Why does it create the greatest transfer of wealth, and in what way?
Kyle Samani: There are two ways. First, individual investors who entered the crypto field in the early stage will be able to profit. Second, all legal currencies will depreciate in the next 10-30 years.
We see that governments of all countries are printing money to deal with the new crown epidemic, so cryptocurrency will transfer wealth from legal tender holders to new non-inflationary currency holders. In this way, trillions of dollars worth of wealth will be transferred.
Bi Tweet: Does this idea make you particularly interested in the intersection of encryption technology and Internet infrastructure?
Kyle Samani: We made two investments in the intersection of encryption and Internet infrastructure, namely Serum and OXIO.
If you think about the nature of the Internet, you will know that some things are generally true.
First, everyone on the planet can access the Internet, and they can access it anytime, anywhere, on the ground or in the air. This is a very bullish commodity market.
Secondly, the access network is not a substitute product, which means that the access network here is of no use to you. They are by our side.
Third, there is no need to deploy infrastructure. Whether it is people erecting wires or building radio towers, they are all behaviors that require permission. But access to the network does not require permission, which is a true bottom-up design.
We think this is a very rare opportunity for people to build their own wireless Internet and simplify Internet access. We think this is a huge opportunity.
Bi Tweet: What is the most successful case in your investment?
Kyle Samani: It may be Solana and Serum. We invested in Solana because we have long believed that transactions will be the most important application of blockchain. The Solana team has focused on building the best transaction blockchain from the beginning, and they will build the best transaction infrastructure in the world.
Solana was launched in March of this year, and at the same time, FTX was also launched. In my opinion, FTX builds the best product. They started operating at the beginning of 2019 and turned themselves into one of the best exchanges at the end of that year.
In May of this year, the FTX team realized that DeFi would eventually kill it. They started trying to build the best decentralized exchange. They first tried to build it on top of Ethereum, but there was no way to make it run due to the technical limitations of Ethereum.
So they studied all other smart contract platforms, and they think Solana will be the best place to build a scalable trading platform. This platform is Serum.
Our investments in Solana and Serum have done very well. Our first investment in Solana is 4 cents and the base cost is 11 cents. The price of our investment in Serum is 3.3 cents. Solana is currently trading at around $2.3, and Serum is trading at $1.27. Therefore, these two companies are very strong in our fund. Solana now has a basic platform on which developers can build large-scale applications that serve hundreds of millions of users. We think this is very exciting.
Bi Tweet: This summer, we just started a DeFi frenzy. Are you optimistic about DeFi?
Kyle Samani: There are a few things that are most promising. One is Serum. What makes Serum special is its central limit order book. I think automated market makers have always existed, and they will dominate the market. Serum is very interesting. We firmly believe that the exchange is the most important financial native application scenario in all finance, and the second important financial native application scenario is lending, just like Compound.
Bi Tweet: What do you think of liquidity mining this summer?
Kyle Samani: Liquid mining is cool. But I think most teams are not doing very well. They hope to put the tokens in the hands of people who care about governance, but to a large extent, they only encourage crypto whales to provide liquidity and then sell them to individual investors. They are very ignorant.
This is what is happening in most cases. In the companies we invest in, we work closely to help them design better systems.
Bi Tweet: Do you think this is sustainable?
Kyle Samani: I don’t think it will disappear in the next few years. But the yield will fall. The income of almost most projects is declining.
Bi Tweet: We know that the last bull market was based on smart contracts. Will the next bull market be built on the development of DeFi?
Kyle Samani: The last bubble was caused by an ICO. I think DeFi will not cause a bubble like ICO. It will cause a lot of attention, but it will not cause a bubble.
The most likely catalyst for the next bull market is Bitcoin. Central banks around the world are printing large amounts of currency, and people are worried about inflation. I think this is what caused the price of Bitcoin to rise.
Push: The price of Bitcoin has exceeded $18,000, but Dario, Chairman of the Board of Bridgewater, believes that when Bitcoin can compete with the central bank’s currency, the government will ban Bitcoin. Do you think it is possible?
Kyle Samani: What he said is possible, but too far away. Bitcoin has not yet been used as currency, it is used as a store of value for speculation.
It is like a commodity. I don’t think Bitcoin will threaten the dollar, euro or yen. So the government has no reason to ban it because it will not threaten their currency.
Image source: pixabay
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