The boom that Bitcoin has been experiencing for the last few months has inspired as much awe as ire. Its sky-high valuation might not last forever, but there is one fellow who is bursting at the seams with enthusiasm for Bitcoin.
Brian Kelly—host of CNBC’s Fast Money show and Founder of Brian Kelly Capital Management, LLC—gave Bitcoin a massive positive PR boost yesterday in his presentation for Fast Money.
He said that Bitcoin would do the same to banks as Amazon did to brick-and-mortar retail.
“Bitcoin is going to ‘Amazon’ the banks. So, what do I mean by that? Bitcoin is a way to remove the third party from financial services, just like Amazon does to retail,” Kelly said.
He then made a comparison between Amazon’s direct-to-consumer (DTC) model and Bitcoin’s model of eliminating the need for a centralized payment processing platform, abbreviating it as BTC (which also happens to be Bitcoin’s ticker symbol).
Kelly also considers that Bitcoin’s market will skyrocket in comparison to where it is now. He acknowledges that the $100 billion market capital it has right now is puny, but he believes that it can grow to ten times its original size:
“This is a massive, massive addressable market. By Jamie Dimon’s own admission, he moves $7 trillion around the world every day. There’s a lot more than that out there. Bitcoin’s only [at a] $100 million market cap right now. The upside on this is 10x if not more.”
Brian Kelly has shown nothing but the purest optimism for Bitcoin in stating that it will get rid of traditional banking. And, in a way, he is (partially) right.
The Bitcoin revolution has drawn attention to the technology that operates in its background, the blockchain. Some major players in the banking and finance industries have seen the potential in distributed ledger technology and are running with it everywhere they can take it.
Earlier this month, MasterCard opened up its blockchain API to specific banks, so that they can bypass their traditional payment processing methods and execute cross-border transactions more smoothly.
As blockchains gain more traction, it won’t be long before people will be able to make fiat payments with the same level of comfort and convenience as they would when paying for something with a cryptocurrency.
Bitcoin itself might not necessarily eliminate the need for banking, but it has undoubtedly ushered in an era of new technology that could put banks in a more competitive position.