Chainlink (LINK) creator Sergey Nazarov says that a failure of the banking industry and people’s subsequent disillusion about the traditional financial system could propel crypto into mass adoption mode.
In a new interview on Bankless, Nazarov says that he sees two possible scenarios that could play out for crypto and blockchain over the next decade.
The first is a “slow case” in which the industry and technology continue to grow at the same speed that it has, gradually taking value away from the incumbent financial system.
Nazarov’s second scenario is the “fast case” where an accelerated collapse of the legacy system puts millions of people into financial pain and forces them to recognize the benefits of verifiable, cryptographic money systems.
“The fast case is… more Silicon Valley Bank, more Credit Suisse-type failures, more big monumental failures that may not be able to be muted by governmental intervention, and which may lead to significant financial pain for society, significant political tension, significant international problems, because the fundamental promises of the system are not sufficiently backed.
And the realization of those promises not being sufficiently backed is a painful realization that, if it happens, and if it happens in a way that cannot managed by governments, will lead people to realize the fragility of the systems in which their value exists, the systems in which their economic life exists. And at that point, a cryptographically guaranteed world, a verifiable web, will be extremely attractive.
It will be so attractive that anyone who doesn’t cryptographically guarantee your economic relationship with them, anybody who can’t verify for you how you relate to your assets in their system, anyone who isn’t part of the verifiable web, will be at a disadvantage.
It’ll be like not being on the internet. That is the fast case.”
Even with the “slow case,” Nazarov says that the industry is most likely on its way to a $10 trillion market cap, and was put on that path when it crossed the $200 billion mark.
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