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The total tokenization of life awaits us — a prediction from eccentric billionaire Chamath Palihapitiya

Igor Grigorchenko

News editor

Oct 11, 2022 at 06:18

In his latest interview, billionaire and visionary Chamath Palihapitiya put a bet on Web3, predicting total tokenization and dominance of blockchain projects in the near future.

Source: Getty Images / TechCrunch

Who is Chamath Palihapitiya?

A former top manager of Facebook, he is now Social Capital CEO, to which he became a billionaire. Chamath is known for his extravagant visionary views and unconventional investment approaches.

We collected the main points from his recent interviews.

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Cross-border payments will be taken over by crypto

Billionaire investor Chamath Palihapitiya persistently predicts that Visa and Mastercard, the world’s two largest payment processors, will be overturned by emerging blockchain projects and DeFi in the coming years:

“Be short these companies and anybody that basically lives off of this 2 or 3% (transaction) tax, and be long well-thought-out, Web3 crypto projects that are rebuilding payments infrastructure in a completely decentralized way,” he said.

He also predicted that the first to adopt these new financial technologies (based on blockchain and Web3) will be developing countries. In Western European countries, as well as in the U.S., everything is ruled by “financial mafias,” which create strong inertia and prevent competition at the level of laws.

“If you read the whitepapers of these crypto projects, and you systematically put together a framework, I think you can be long those and you can be short Visa/MasterCard, because I think this is their peak market cap,” he added.

Total tokenization of everything and the open market

According to Chamath Palihapitiya, in the future humanity will find a way to tokenize all assets to increase their value (through increased accessibility and better manageability). Both material assets and non-material assets (e.g., a person’s skills or talents) will have to be tokenized. A person would be able to list and trade any tokenized assets on their own, rent them out, and create mortgages or loans on their basis.

Chamath advocates the total virtualization and tokenization of all possible assets to make the economy as digital, voluminous and flexible as possible:

“All the leakage you have today goes away in a world of DeFi (decentralized finance) because you will financialize every single asset possible. You’ll financialize your homes. You’ll financialize your cars. You’ll financialize your watches, your jewelry, your art. You’ll financialize every random thing [including your] career.”

“By monetizing it and financializing it, you can borrow against it, you can trade it, you can pull forward value into the future against it.”

It is also reported that he considers the fact that users who place their assets on blockchain will not be able to argue in any way against the payment of taxes because of the complete transparency of income. The taxes will be collected fully automatically. Overall, the digital world will become bigger and more transparent after decentralization, from which everyone will only benefit.

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