Crypto is an engagement driver for apps, says Mizuho's Dolev
Thank you for being here on this friday night, uh thats kind of the key here right crypto has really ingrained itself into the ecosystem. Two trillion dollars in market cap, its a huge part of the revenue stream for companies like coinbase and robin hood, both of which went public this year. So how systemically important is it to the economy right now? In other words is crypto in and of itself too big to fail, hey, leslie, always a pleasure being on the show. So look i think youre right. We are seeing crypto, basically everywhere in our coverage right. So we we look at square. We look at paypal. We look at coinbase, look at robinhood were seeing crypto becoming more and more important. The way i view crypto and i think its a little different. I view crypto as an engagement driver or an engagement enhancer for these apps. If you think about the holy grail of all these apps, they all want to become sort of that super app. The next neobank. You know we said about square its, the its like buying jp morgan in 1871., so kind of thats, where theyre all one thats, where they all want to be and crypto, is a very, very good engagement tool and i think thats, why its going to continue to Flourish right now, uh, but again, theres also a lot of risks right, not all crypto is created equal right, theres, bitcoin and theres – probably a lot of other crypto which may or may not be around in a few years.
Okay lets discuss that then, because there are claims that bitcoins dominance is waning, uh recently soon to be supplanted by other cryptocurrencies, namely ether uh. What do you make of those arguments and which cryptocurrencies do you believe, have more staying power and should be the ones that companies are paying attention to yeah thats thats? A great question? Look, i i think you know when whenever you know, when youre thinking about these things, i look at what sort of the thought leaders out there like the jack dorseys of the world or the elons of the work, and they all talk about bitcoin. As kind of the the currency of the internet right and and sort of the real true digital gold, so i think if you really want to make a distinction, i think its bitcoin and theres pretty much everything else, so i mean im almost indifferent, i mean i Look at coinbase and they call that you know they. They keep adding more and more uh cryptocurrencies and youre, asking yourself whats the true scarcity value. If every dan, i think, were having a youre adding like you know as interesting, its truly unique okay. I think your your audio is a little bit better. Now we had a little uh pocket there um. You said that obviously bitcoin is still dominant here, but when you look at what happened with robin hood, for example, dogecoin was a key contributor to the contributor to their revenue base, uh.
How? How would you kind of characterize these up and coming cryptocurrencies and their relative importance to a lot of the companies that you cover yeah, i think look. We saw what happened with dogecoin in the second quarter. It was. It was pretty fascinating to see that. I really still think that that you know if you really are bullish about robin hood and youre thinking about the future of robinhood. Its very similar to the future of square were using crypto as an engagement driver to become the single money app. So i really think its one more stepping stone to becoming a much bigger bank and offering multi you know a lot of services other than crypto. So i really think we have to look at it on a very long term basis. You know its great to see the engagement with dogecoin, but i think in a year therell be something else that you know something else that people are going to get excited about. So thats kind of how i view this, the end goal is to become that single money, app that and i think, thats, where all these, like really really good apps are heading towards yeah. As you mentioned its like investing in jpmorgan in 1871, i think was the year that you said uh for that one dan.