Disclaimer: This article previously read that Gavin Brown was the co-founder of Blockchain Capital, when indeed he is the co-founder of a different firm, Blockchain Capital Ltd. The name of the firm has been changed to reflect the correct nomenclature.
Blockchain Capital Limited co-founder Gavin Brown said that he expects that there will be only one or a handful of winners when it comes to cryptocurrency. Brown made his remarks during an interview with CNBC published on April 23.
During the aforementioned interview, Brown further noted that he thinks the winners — or winner — would earn a lot of value:
“These winners would obviously win big.”
He further explained that trying to understand which cryptocurrencies will be the winning ones is challenging, and that this is the reason why he believes crypto investors often have a diversified portfolio. Brown further noted that he believes the participation of increasingly notorious companies in the crypto space will bring legitimacy.
According to him, there is a trend towards the democratization of money where individuals or companies can create currencies. Still, Brown points out that people will trust the currency if they trust the underlying brand and products.
For instance, Brown claimed that Starbucks had over a billion dollars worth of assets from people who prepaid for their coffee because they trust the company and are confident that the product will be there when they want it. With this in mind, he notes that it is not outlandish for multinational companies to issue their own currencies and request that consumers use them. Brown said:
“We live in an era where McDonald’s has got a higher credit rating than the country of Ireland.”
He also cited the so-called Facebook coin, saying that it is “probably the next big one.” When asked if a world in which every major company issues its currency wouldn’t be unnecessarily complicated, Brown pointed out that he expects alliances to form.
In Brown’s opinion, such alliances would use the same cryptocurrency for transactions. To provide an example, Brown cited JPMCoin, stating that about 270 banks already signed up to use the crypto asset.
As Cointelegraph reported yesterday, JPMorgan Chase is expanding the use of its blockchain technology to help reduce the number of global payments rejected by errors.
