There is a wave of tech executives and engineers leaving Google, Amazon, Apple, and other large companies to chase what they see as a once-in-a-generation opportunity. Some of these jobs even pay millions of dollars in annual compensation. According to them, crypto is the next big thing, including digital currencies like bitcoin and blockchain-based non-fungible tokens (NFTs).
Members of Banking Institutions Saw Cryptocurrency as ‘Cute’
This year, the cryptocurrency market global market cap surpassed $2.26 trillion, with Bitcoin increasing by more than 60% and Ethereum increasing by 378%. One of the fascinating aspects of cryptocurrency evolution is the rate and scope of adoption.
The reason for this is their future potential, which stems from growing business, consumer, and institutional acceptance; increased payment/purchase circulation; and rising trading volumes, which are due, in part, to their use as a hedge against fiat currencies.
The founders of Meta Platforms Inc. and Tesla Inc., which was barely off the ground during Wall Street’s pre-crisis boom, are worth more than Citigroup Inc., the country’s once-most valuable bank. Previously, banks were so opposed to cryptocurrency that they saw no threat in it beyond a fad. Since then, newcomers trading crypto and meme stocks have flaunted their massive gains from loading up on crypto.
About a year ago, Sam Peurifoy noticed that his Goldman colleagues were treating cryptocurrency as “kind of a cute, niche curiosity.” Peurifoy, known for his gaming persona Das Kapitalist, left in June for Floating-Point Group, which provides digital currency trading services, and is now an executive at Hivemind, a $1.5 billion crypto fund. Despite the bankers’ windfall year, Peurifoy said there’s a “feeling in the air that they’re missing out,” describing it as ‘this overwhelming wow.’
Silicon Valley Booming With Crypto as Millennials Take Charge
Millennials are leading the charge in cryptocurrency investing, with ever-increasing amounts of money being poured into bitcoin and other digital currencies. According to a new survey, one-in-five Millennials (aged 25 to 40) now own cryptocurrency. Almost half of those polled also made their first investment in the stock market last year, owing to a surge in interest among younger people during the COVID-19 pandemic.
Stories of people riding seemingly ridiculous crypto investments like Dogecoin, a digital coin based on a dog meme, to life-changing wealth abound in Silicon Valley these days. Skeptics claim that cryptocurrency is no different from previous speculative bubbles such as subprime mortgages or the 17th-century tulip craze. They claim that much of the mania is motivated by a desire to get rich quickly by trading an asset class that appears to be based on internet jokes.
Even though crypto’s future still remains highly speculative, there are specific applications where cryptocurrency is a viable solution.