The digital asset management firm, Arca, has brought on Bill Powers, former executive of PIMCO, as a strategic advisor. Powers's career in finance has brought him through institutions such as the Salomon Brothers, Bear Stearns, IBM, PIMCO and now into the cryptocurrency space.
During Powers's impressive career he helped significantly increase PIMCO's assets under management, which were $29 billion when he joined in 1991. Today, PIMCO's assets under management exceed $2 trillion.
In an interview with TheStreet Crypto, Powers touched on a number of topics including Arca and its future, his outlook for crypto, IPOs on the horizon after Coinbase (COIN) and whether average investors should have exposure to cryptocurrency.
On the topic of Power's personal investment into Bitcoin and cryptocurrency, he said he is invested and that if it were to drop he would add more.
"I am invested and expect to remain invested. Is it possible that Bitcoin could go back to $20,000? Yes it is. Do I think it's likely? No, but it's not impossible. Would I add or run if it goes to that? I would add," he said.
When asked if the average person should consider adding Bitcoin to their portfolio Powers said, "Yes, but they should consider a percentage of their assets that is non-speculative, and also that they are comfortable with underwriting the volatility."
Regarding the future of cryptocurrency, Powers likened the state of crypto to his time spent at IBM in the 80's and the early stages of email.
"So when I was a trainee at IBM in 1979-1980, I was part of a group that was asked to comment on the 'office of the future.' And offices of the future included email. So I was shown the email application in 1980. But for whatever reason, it took 15 or 20 years to make emailing a common communication exchange," said Powers.
Power's comments compared the state of crypto to the beginning of email and the internet. He also spoke on the comparison between the dotcom bubble and crypto today.
"We went back and looked at Amazon, Google, Microsoft, you know, even at their highs in 2000 before the crash, they were a tiny fraction of today's prices," Powers said. "So, you know, we tend to learn that history, while it doesn't repeat itself, it often rhymes."
Powers also discussed companies that could follow in Coinbase's steps saying, "Well there is an entity called Kraken, that is like Coinbase. Huobi is another platform in Asia. These companies have large and growing high margin business in a very growing marketplace of cryptocurrency."
"One could have bought Kraken with a two or $3 billion valuation six months ago. Today it's over $10 billion. Coinbase, which one could have bought, you know, six months ago at a $40 billion valuation, that could be $100 billion or $150 billion. Coinbase is enjoying not a monopoly, but a very large moat being a first mover in a large market," he added.