#1281 David Pakman | 2024 Outlook for Bitcoin Regulation and Web3
Dec 11, 2023
auto_awesome
David Pakman, Managing Partner at CoinFund, discusses the outlook for Bitcoin regulation and Web3 in 2024. Topics include market rallies, impact of regulation, OpenAI, Ethereum's durability, and the benefits of working with CoinFund.
The removal of bad actors in the crypto industry is seen as a sign of progress and readiness, creating a favorable environment for increased consumer usage and institutional participation.
The lack of regulatory clarity in the US pushes entrepreneurs to build in jurisdictions with more certainty, such as the UK and Far East, driving crypto's progress internationally.
Deep dives
Market Likes Cleansing of Bad Actors
The market has shown a positive response to the removal of bad or questionable actors in the crypto industry. This is evident in the chart that displays market rallies coinciding with the firing or departure of major crypto CEOs like Arthur Hayes, Sam Bankman-Fried, and CZ. The cleansing of bad actors is seen as a sign of progress and readiness in the crypto space, providing a favorable environment for increased consumer usage and institutional participation. However, concerns persist regarding Tether and the need for long-term clarity to remove uncertainty from the market.
The Battle between Regulators and Crypto Adoption
Politicians, regulators, and market participants are divided into two camps when it comes to crypto regulation. Some advocate for acceleration and embracing the technology, seeing it as a potential home for innovation and growth in America. Others, like Jamie Dimon and Elizabeth Warren, express concerns about bad actors and urge for more stringent regulation or even shutting down the crypto industry. The current lack of regulatory clarity in the US pushes entrepreneurs to build in jurisdictions with more certainty, such as the UK and Far East. Despite resistance, crypto's progress internationally remains strong, driven by a long-term investment perspective.
The Institutional Interest in Crypto
Crypto's appeal to institutional investors lies in its potential for long-term returns, despite market noise and short-term fluctuations. Venture capitalists like CoinFund offer more than just capital, providing insight and guidance to help founders navigate the crypto landscape. Institutions recognize that investing in the crypto industry is a decade-long bet, given the magnitude of innovation, activity, and value creation. The imminent launch of ETFs in 2024, allowing both retail and institutional access to crypto assets, is seen as a seminal moment that will drive institutional adoption at scale and provide greater market opportunities for investors.
Crucial Factors for Crypto Success
The future success of crypto depends on user adoption and the durability of applications built on blockchain technology. Simplifying the user experience and making non-custodial wallets more accessible are essential in driving consumer conversion rates. Critical areas worth monitoring are stablecoins, which boast significant value in the payments sector, revolutionizing cross-border remittances with low fees and near-zero trust requirements. Adoption of blockchain-based solutions in e-commerce, such as Shopify integrating stablecoin payments, could disrupt incumbent financial systems. Additionally, the usage of NFTs, gaming, and intellectual property ownership are emerging narratives that hold promise for greater utilization of blockchain technology and increased market traction.
David Pakman is a Managing Partner at CoinFund, a blockchain & crypto-native investing firm. In this conversation, we talk about bitcoin, Web3, regulation, stablecoins, and what he is expecting in 2024 & beyond.
=======================
Base is making it their mission to bring a billion people onchain. But what exactly is Base? It's an Ethereum L2 offering a seamless experience for both builders and users. With near-zero gas fees and rapid transaction speeds, Base is shaping the future of the onchain world. Base is a canvas for everyone, with hundreds of apps in the Base ecosystem, whether you're an emerging creator, a seasoned developer, or someone exploring the onchain space for the first time, Base is designed to bring your ideas to life. So, if you're looking for a platform where the future of onchain is being built daily, Base is your destination. Join in and make onchain the next online. Learn more at base.org and follow along on Twitter at @BuildOnBase to see cool things to do onchain, everyday.
=======================
Trust and Will has simplified the process of creating and managing your will or trust online. They leverage a data-driven, design-first approach and amazing customer support to help you protect your legacy from the comfort of your home starting at just $159. Sign up today for 10% off using https://trustandwill.com/pomp
=======================
Pomp writes a daily letter to over 250,000+ investors about business, technology, and finance. He breaks down complex topics into easy-to-understand language while sharing opinions on various aspects of each industry. You can subscribe at https://pomp.substack.com/
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
