Ex Meta executive: Crypto winter will end in 2025
David Marcus, a supporter of the Bitcoin Lightning Network, believes there will be more pain in 2023 as the market attempts to recover from bad actors. David Marcus is the CEO and cofounder of Lightspark. He also ran Payments/Crypto and Messenger for Meta. He was also the founder of PayPal and three other startups. He published his thoughts on Friday in Medium. A recession plus an aging workforce. The experienced executive is not optimistic about the economy or crypto in the near to medium term. He believes that there is a near-term recession, likely due to the Federal Reserve raising interest rates to control inflation. He believes that AI will see the “beginning of a Cambrian Explosion”, which will automate many areas and lead to human obsoletion in many industries. Crypto will recover. He is of the view that crypto will take a few years to recover from the bad actors who have plagued it. He believes regulation will take time to develop and implement. He sees a sea shift in crypto and states.
“In crypto, years will be made available for real-world applications by greed. The days of creating tokens out of thin air and making millions have ended. The music has stopped. We are back to our regular programming, which focuses on creating real value and solving real-world problems.
He hopes to see the following results in solving these problems:
“Key innovations in the areas payments, asset securitization and DeFi, zero-knowledge apps including proof of reserves, layer 1 scaling solutions and renewed development energy and interest in the Bitcoin network.”
Marcus is skeptical about regulation. Marcus isn’t very optimistic that regulators will get it right. He believes that new regulation is needed for digital assets and crypto, contrary the belief of Gary Gensler (chair of the SEC), who believes that crypto should be incorporated into existing regulations. He said:
“Sadly, I have become more skeptical about our ability to reach consensus in legislative or regulatory approaches that achieve the right balance. I believe we will see more of the same in 2023, with greater responsibility on the part of leaders of industries to do the right thing in the vacuum created by our deadlocked legislative system.”
He believes that destruction is a chance to rebuild anew and that digital assets and crypto will emerge stronger and more successful than ever. This article is not intended to be used in place of legal, tax, investment, or financial advice.