ProChain Capital, a cryptocurrency investment firm that operates a crypto-based hedge fund, has experienced a nearly 70% return year-to-date. The fund actively invests in larger tokens like Bitcoin, Ethereum, Litecoin, Monero and others. The fund also goes long and short equities within the crypto industry, among other investments.
ProChain's President, David Tawil, had a lot to say on the growing adoption of cryptocurrency in an interview with TheStreet Crypto.
"There are corporations that are now investing a good portion of their Treasury into bitcoin. Certainly, there are a lot of enterprises out there considering it. Certainly, folks that are anywhere near the financial/banking sector are considering in many different ways crypto-related activity," he said regarding the adoption of cryptocurrency as a treasury reserve asset.
Tawil added that there are many companies that the public may not even know about that are currently have crypto and blockchain-related activities going on.
"There are so many other companies that we currently don't even know about, not in terms of them being secret companies, but they're public companies that have crypto and blockchain related activities going on that will come to light and that pool will increase," said Tawil.
Tawil compared the cryptocurrency movement to the internet and how people today still don't understand the internet, yet they use it in their everyday lives.
"People say, well, I can't do this because I don't understand it, that's great. Because in just a little bit of time, it won't matter anymore. There will be a point in time where folks just get over the hump, either in mass or one by one and say, you know what, it doesn't matter that I don't understand it. I need to use it, because everybody's using it," Tawil said.
He also had some comments on Tesla as a Bitcoin investment and whether or not people should consider it to gain indirect Bitcoin exposure.
"I think, if you're going to make a Bitcoin investment, then you might just want to make a Bitcoin investment," said Tawil.
Tawil continued saying that "Tesla may evolve into a bigger crypto focused enterprise right, for now, as far as we know, as far as the world knows, the only aspect that is crypto of it is the Bitcoin aspect, both in terms of holdings and in terms of payment for a car."
Tawil commented on the more recent trends within the space like NFTs and how they are primarily used as novelties at the moment, but could have better use-cases in the future.
"ProChain is not interested, at least now, about artwork, music, sneaker design, anything represented by tokens, someone's going to make a lot of money there, don't get me wrong, but to me, those are novelties, you know, in the literal sense," said Tawil.
Tawil added that "we haven't yet gotten to the digitization of the important stuff, or of the meaningful and valuable stuff, right? That are really, you know, a lot of this stuff is layups. Insurance policies, titles to homes, titles to automobiles, you know, things that are boring, but yet markets are gigantic."
When asked if he thought that the entire stock market would eventually become tokenized, Tawil said "the answer is yes. There's a lot of people working on that, and the question is, I mean, not that many horses can win that race."
Tawil also had remarks on what he thinks the greatest threats to cryptocurrency are today and whether it could come in the form of regulation, over-aggressive hype or another avenue.
"I think security is a real issue as more of this, more of what we've thought to be, you know, very safe tokens are being handled by public companies that have their own security concerns that come up daily with hacking and so forth. So I think that that's the most binary risk that's out there," he said.