-
Blueprint Capital CEO Jacob Walthour told CNBC’s Squawk Box that ignoring crypto as an asset class “would be a mistake.”
-
Major companies such as Starbucks, PayPal and AT&T accept crypto as a payment option.
-
He noted that 14 percent of American adults already own cryptocurrencies, and there are even more reasons to consider them if U.S. equity markets stall while crypto rises.
Jacob Walthour, CEO of U.S.-based asset management and alternative investment firm Blueprint Capital Advisors, says that the role of cryptocurrency as a financial innovation is a major positive for the industry.
Speaking on CNBC’s Squawk Box to host Joe Kernen on Wednesday, Walthour said crypto’s growth over the past five years has been enormous despite earlier skepticism.
The investment manager added that crypto offers opportunities for investors, and described his market outlook as “very constructive.”
He suggested the best way to view cryptocurrency is to consider where and how it began. Referring to Bitcoin’s launch nearly 12 years ago, he emphasized how substantial its growth has been since inception.
Walthour said that more than 200 trading platforms now support Bitcoin and that over 14% of American adults currently own cryptocurrency.
From cash and checks to cards, e-payments and crypto
Walthour’s bullish perspective on cryptocurrencies mirrors how far the financial system has evolved through innovation. He noted the progression of payment methods: from cash to checks, then to credit and debit cards and e-wallets. Crypto is the latest innovation in that evolution.
“I think thinking about crypto as the wallet concept—like where we go from here—suggests a promising adoption curve for crypto over the next five to ten years,” he added.
Crypto is an asset class you shouldn’t ignore
Walthour outlined how Bitcoin and other cryptocurrencies are increasingly accepted as payment by some of the world’s leading companies. He cited firms such as Starbucks, PayPal, AT&T and Overstock.com as influential adopters encouraging broader crypto acceptance.
In that context, Walthour warned that it would likely be a mistake for investors to ignore crypto as an asset class. He added that if a scenario unfolds in which crypto outperforms U.S. equities, “herd mentality” could take hold and significant capital might flow out of stocks and into crypto assets.
He also believes that digital coins that outperform equities would strengthen the legitimacy of the argument that “crypto is an asset class from a diversification standpoint.”
“I think it’d be a mistake to ignore this asset class which has looked like the wild west for the last 5 or so years,” says Blueprint Capital’s @JacobWalthour. “But if we see a stall in the U.S. equity market and a rise in #crypto, I think herd mentality could take over here.” pic.twitter.com/4PEcA8qBo8
— Squawk Box (@SquawkCNBC) December 29, 2021
A recent Arcane Research report published this week shows that Bitcoin outperformed the S&P 500 over the past three years. In 2021 Bitcoin rose more than 73% year-to-date, compared with roughly a 27% gain for the stock market index.
Arcane also forecasts Bitcoin outpacing the S&P 500 in 2022, while Fundstrat Global Advisors’ Tom Lee predicted the equity index could climb by just under 11% next year.