Bullish on the crypto industry! Legendary venture capitalist: There may be a bubble, but Bitcoin at $30,000 is more popular than at $5,000, that's the reality.

Fred Wilson, a top venture capitalist in Silicon Valley, recently shared his views on the cryptocurrency industry in his personal blog, stating that the cryptocurrency industry is evolving into a significant element in the global economy. Despite the presence of speculative bubbles, it undoubtedly accelerates the widespread adoption of related assets and technologies.

New York's Most Influential Venture Capitalist

Fred Wilson is a top venture capitalist in Silicon Valley and a co-founder of the venture capital firm Union Square Ventures. With 670,000 followers on Twitter, Wilson has significant social influence. He recently reviewed 2020 and predicted the economic trends for 2021 in his blog.

Wilson described 2020 as a long, strange, and unsettling year. Despite the challenges, it was a turning point for technology startups, venture capital, and the cryptocurrency industry. He believes that certain industry categories, such as Zoom, electric vehicles, and technology-based business solutions, are increasing in global importance. The COVID-19 pandemic has accelerated progress in these industries.

28,000 More Appealing Than 5,000 Dollars for Bitcoin

In his December 31st post, Wilson pointed out that while Tesla and Bitcoin may currently be in another speculative bubble, the attention they are receiving helps accelerate adoption processes. Despite potentially overvalued, it proves that the trend direction is correct. He stated:

Cryptocurrencies are undoubtedly in a bubble, but speculative bubbles make emerging technologies mainstream and expand their capital base. It may seem strange that more people are willing to buy Bitcoin at $28,000 than those who entered at $5,000, but that's the reality, and understanding this is crucial.

Developed Countries to End the COVID-19 Pandemic this Year

Wilson believes that the U.S. epidemic will end in the second quarter, but the impact of COVID-19 and the climate crisis will be profound. Both will drive large-scale migration in the U.S., with people opting to move to areas less affected by climate crises, which will also become an investment trend in the coming years.

Regarding the applications and development of the cryptocurrency industry, he is bullish on the rise of decentralized finance. He stated:

I believe governments worldwide will respond to all economic challenges with "continuous money printing," resorting to "taxation," "regulation," and other means against startups. This will lead investors to continue investing in new forms of currency, cryptocurrencies, and establish or invest in financial startups, decentralized projects or organizations. We have already seen similar situations, and this field will accelerate in 2021.

Wilson mentioned that projects his venture capital has invested in, including Compound, Yearn, and Uniswap, are rapidly growing. In his latest article, he also expressed concern about the controversial non-custodial wallet regulation proposed by the Treasury Department, citing Chainalysis data that in the second quarter of 2020, only 2% of interactions between exchanges and non-custodial wallets were illicit.

Wilson is quite dissatisfied with the deliberate shortening of the public comment period for this bill by regulatory agencies, believing that the Treasury Department's intention is to deliberately stifle discussion, referring to it as the "pre-departure horror legacy" of current Treasury Secretary Steven Mnuchin.