The billionaire understands that cryptocurrency is not going to be anywhere soon and knows it’s not just a fad. Fertitta believes that there’s more to the cryptocurrency than speculators might think there is to it, thus, giving it long-term staying power.
He also believes that there are much more investors that are sitting on the sidelines waiting to invest in Bitcoin. The most significant barrier stopping them from investing in Bitcoin? The lack of insurance.
Fertitta on comparisons to internet boom
The Billionaire also compared the emerging Blockchain Economy similar to that of the Internet in its early commercialization stages.
In an interview, the restaurateur told CNBC, “I think it’s here to stay.”
He stated further that:
“It’s no different than anything new. Everybody forgets that if you put ‘.com’ at the end of your name just 20 years ago, your stock ran up.”
Fertitta highlighted an exciting point in the world of decentralization, the lack of insurance present in the market may be a factor that has many potential investors and users of the currency to sit on the sidelines.
He elaborated on this matter by talking about that of the currency of the dollar and how it is insured for depositors by the Federal Deposit Insurance Corporation.
At the current moment, if someone wanted to take out one million dollars worth of currency in the form of cash from their bank account, they would not be able to do so, the bank would have to deny it.
The restaurateur states:
“They don’t have the money. It’s just paper. That’s all bitcoin is, is paper, but it’s not insured by the FDIC today. And until it’s insured, a lot of people are never going to buy it.”
The Federal Deposit Insurance Corporation is an independent agency created by Congress to maintain the stability and public confidence in the nation’s financial system by:
- Ensuring deposits
- Examining and supervising financial institutions for safety, soundness and consumer protection
- Making large and complex financial institutions resolvable
- Managing receiverships
It’s interesting that the organization states that they are an independent agency to maintain stability and public confidence in the nation’s economic system
Fiat derives support from additional structures like the FDIC to guarantee that things won’t go as wrong an en event similar to that of the Great Depression.
In a sense, stating that the value of fiat currencies are propped up by institutions such as the FDIC.
The progress of Bitcoin
Fertitta thinks that there should be much more progress to Bitcoin, as technology makes changes in society quickly, he wouldn’t be surprised if there’s a whole new way of doing things because of Bitcoin.
He commented on Bitcoin becoming a part of the payments process in society:
“I think it’s going to happen,” Fertitta said. “I mean, I remember somebody walking into my office and saying, ‘The world’s going to change. There’s this thing called the internet.’ And that wasn’t that long ago. So we have to remember this. It’s just something new and everything moves at a quicker pace today.”