Daniel Masters, who previously led JP Morgan’s global energy trading desk, says cryptocurrencies are fueling a financial revolution. In a recent interview with Bloomberg, Masters who now manages over $800 million in assets, including crypto assets explained how the cryptocurrency market will get much bigger.
Masters is now chairman of digital investment bank Coinshares and chief investment officer at Global Advisors. Before taking the leap into the world of digital currency, Masters began trading oil with shell back in the 1980’s before going to JP Morgan as the global head of energy trading in 1992.
One off the questions put to him by Bloomberg was the issue of “leakage” within the fractional reserve monetary system. In which Masters explains that the issue of leakage is not an issue he recognises in the cryptocurrency space but there may be potential for that problem to occur.
He explains the reason this is not yet an issue is due to the fact of a “regulatory sandbox” environment. In which digital assets resided for the past five years or so… Until the last quarter of 2017. He explains that an ecosystem that’s $1 billion – $10 billion in size “is almost experimental in the scope of the main financial system.” Whereas a market approaching $1 trillion and with all of the “media hype”, suddenly regulators, banks, central banks and governments decided was a market that could no longer be ignored.
“I don’t think there’s any concern from that community at the moment that there’s leakage .. but I think they’re beginning to realize that there is potential for that in the future”
Cryptocurrency market will get much bigger
While many view the cryptocurrency market as a digital revolution, in which digital assets will overtake fiat currencies. Masters explained that he does not see a “fight to the death between crypto and the USD/GBP legacy financial system.” Instead, he believes it’s about “what portion of the total financial ecosystem accrues to cryptocurrencies,”
“I think even if it’s only 5% at the end of the day, that market will then still be much bigger than it is today.”
After a disastrous start to 2018 the Bitcoin price looks to be recovering again and has just touched on $9,000 for the fourth time.