Why Swan CEO Cory Klippsten Is Still Convinced That Bitcoin Is Headed to $1 Million - Ep. 584
Dec 19, 2023
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Cory Klippsten, CEO of Swan, discusses his belief in Bitcoin reaching $1 million by 2030. He shares his skepticism of alt-coins, the impact of spot Bitcoin ETFs, and his private equity investments. Swan's focus on financial privacy, Bitcoin-only trust company, and plans for international expansion are also highlighted.
Swan CEO Cory Klippsten believes Bitcoin will reach $1 million by 2030 and most alt-coins will go to zero.
Swan Bitcoin plans to launch the first US Bitcoin-only trust company, offering more control over custody and unique Bitcoin features.
The launch of Bitcoin spot ETFs is expected to drive the price of Bitcoin higher, but investors should focus on long-term investment rather than short-term trading.
Deep dives
The Bullish Bitcoin Predictions for 2030
The speaker has a long-term target of reaching a million dollars of coin by 2030 in 2020 dollars, and believes it will be even higher when adjusted for inflation. They emphasize the importance of understanding Bitcoin and having the conviction to hold for the long term, despite the expected volatility and potential pullbacks during the bull run. They encourage investors to buy Bitcoin for the purpose of long-term investment rather than trading.
Swan Bitcoin's Expansion and Services
Swan Bitcoin is a Bitcoin-centric financial services and technology company that started as a retail app for buying Bitcoin. Over the years, they have expanded their services to include multi-sig wallets, private client services, institutional deals, and plans to launch in new markets like Brazil and Europe. They have also ventured into asset management with Bitcoin-based strategies like alpha rotation and credit funds. Additionally, Swan Bitcoin plans to launch the first Bitcoin-only trust company in the US, which will offer more control over custody and enable experimentation with unique Bitcoin features.
The Rise of Bitcoin ETFs and Their Impact
The upcoming launch of Bitcoin spot ETFs is expected to have a significant impact on the industry. It is anticipated that large financial institutions will pour substantial capital into Bitcoin, leading to widespread advertising and marketing campaigns. The speaker notes that while this influx of capital may bring regulatory challenges and minor concerns about added centralization, it is ultimately a positive development that will drive the price of Bitcoin higher. They caution investors to focus on buying and holding Bitcoin for the long term, rather than getting caught up in short-term trading or relying solely on ETFs.
The Debate over Blockchain Inscriptions and Ordinals
The speaker acknowledges the ongoing debate within the Bitcoin community regarding the use of blockchain for inscriptions and ordinals. They suggest that the hype around these concepts will likely fizzle out over time, with rational arguments prevailing. They emphasize the importance of distinguishing between legitimate projects and scams, while also recognizing that Bitcoin's open market allows miners to decide the content they include in their blocks. The speaker mentions that taproot unintentionally made certain activities easier, and that agitation and attempts to explore new possibilities are inherent in Bitcoin's antifragile nature.
Bitcoin's network security and transaction finality are probabilistic
Bitcoin's network security relies on transaction finality, which is probabilistic. The depth to which a transaction is buried in the blockchain determines the level of certainty it has. While smaller transactions may require fewer confirmations, larger transactions may necessitate deeper confirmations to mitigate risk. This probabilistic nature of Bitcoin's security refutes the concern that a decrease in mining rewards would compromise its blockchain security.
The future of Bitcoin as a medium of exchange
The guest speaker believes that widespread adoption of Bitcoin as a medium of exchange will not occur until the 2030s. The expectation is that Bitcoin's value will continue to rise significantly, leading to a perception that holding Bitcoin is more valuable than spending it. The high fees associated with on-chain transactions are not a concern for the speaker, as solutions and innovations are being developed to scale transactions on Bitcoin and reduce costs. Additionally, the guest criticizes the promotion of altcoins, arguing that Bitcoin remains the best long-term store of value.
Swan founder and CEO Cory Klippsten is all-in on Bitcoin. Not only does he believe that Bitcoin is poised to reach $1 million by 2030, he also thinks most alt-coins add little to no value and will eventually all go to zero. Accordingly, his company is a massive bet on the future of Bitcoin, from educating people about the world’s first crypto and convincing them to eventually self-custody, to making private equity investments in the Bitcoin ecosystem, to eventually planning to launch the first US Bitcoin-only trust company to create a safer environment for investors.
Here he talks to Unchained about his crypto journey, the likely impact of spot Bitcoin ETFs on crypto adoption and prices, his extreme skepticism about Bitcoin Ordinals, when he first knew Sam Bankman-Fried was a fraud and why he thinks that crypto VCs have done a “massive disservice” to the world.
Show highlights:
What Swan Bitcoin is, its origin story and the future trajectory envisioned by Cory
Cory's journey into crypto, his journalism background and the shift to a Bitcoin-centric focus
How Cory is navigating discussions with hedge funds, family offices, and insurance companies in anticipation of a Bitcoin spot ETF
Swan’s Bitcoin-only investment strategies
How lending and borrowing with Bitcoin is evolving
Cory's private equity investments within the Bitcoin ecosystem
The rationale behind Swan launching the first US Bitcoin-only trust company
Swan's stance on financial privacy, especially after warning customers that banks might close their accounts if they used mixers
Cory's reasoning for advising against "trading" the Bitcoin spot ETF launch
Predictions on when BTC might reach new all-time highs
Cory's perspective on Bitcoin Ordinals and their impact on the Bitcoin mempool
The concerns about decreasing block rewards and the future security of Bitcoin
Why Cory was convinced of FTX's fraudulent nature after reviewing the balance sheet that led to SBF's downfall
Why he thinks that VCs have done a "massive disservice” to the world
