Kraken CEO: „Layer 2 networks will make Bitcoin as easy to use as the dollar“

27. Juni 2020 0 Comments

In a recently published interview on Bloomberg, Kraken CEO Jesse Powell said that layer 2 (or second layer) networks will make Bitcoin Rush as easy to use as the US dollar.

Powell also said that institutional investors should join the Bitcoin world as if they were following a flock of sheep. Finally, he recommended crypto currency as a hedge against the manipulation of the dollar by the Fed.

What are second layer protocols?

In the future, everyone will use BTC without knowing how the technology behind it works
Powell highlighted Bitcoin’s success as a store of value: given the predictable and limited nature of both distributions, many decided to protect their assets from inflation by investing in BTC. In his opinion, cryptomoney will even outperform gold in the future.

He also predicts that layer-2 solutions will make Bitcoin fast and easy to use:

„Very soon, all the technology behind Bitcoin will disappear, and become a US dollar: nobody understands how it works, but everybody uses it.“

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Institutional investors will follow the herd

Powell revealed that in the last three months, there was a massive influx of new accounts from all types of investors: hedge fund managers, capital managers, retail investors and traders. Although the long-awaited mass adoption by institutions has not yet taken place, in his opinion, this event is now close.

Paul Tudor Jones, founder of Tudor Investment Corporation, recently announced that 2% of his portfolio is BTC: this news will push other large institutional investors to take the big step.

Buterin says the development of the second layer of Ethereum was „basically“ successful

Regarding the risk of manipulation of cryptosystems by whales, Powell emphasized that traditional markets are also manipulated:

„Think of the Fed, which buys junk bonds from failed US corporations. It’s ridiculous, the market is being manipulated. They are printing billions of dollars to increase the value of the stock.

You can’t value things in dollars anymore, inflation will be out of control soon. I would personally buy Bitcoin as a hedge against this inflation.