#1580 Yoni Assia | Why Bitcoin Still Has 10x Upside
🎯 Summary
Podcast Summary: #1580 Yoni Assia | Why Bitcoin Still Has 10x Upside
This episode features Yoni Assia, Founder and CEO of the publicly traded trading platform eToro, in conversation with Anthony Pompliano (Pomp). The discussion centers on Assia’s long-term conviction in Bitcoin, the transformative potential of asset tokenization, eToro’s expansion in the US market amidst regulatory shifts, and the broader evolution of capital markets driven by retail investors and digital technology.
1. Focus Area
The primary focus areas are Cryptocurrency Investment Thesis (specifically Bitcoin), Financial Technology (FinTech) & Trading Platforms (eToro), and the Tokenization of Real-World Assets (RWA).
2. Key Technical Insights
- Colored Coins Precursor to Ethereum: Assia highlighted that eToro pioneered the concept of “colored coins” on the Bitcoin network in 2012, which served as an early inspiration for Vitalik Buterin regarding tokenization and the eventual creation of Ethereum.
- Stablecoins as Proof of Concept: Stablecoins are identified as having the second-best product-market fit in crypto (after Bitcoin), demonstrating the efficiency of tokenized fiat for 24/7 asset transfer without traditional banking rails.
- Tokenization Unlocking DeFi Primitives: The tokenization of traditional assets (stocks, Treasuries) is expected to create a better, less counterparty-risky ledger, enabling the introduction of DeFi features like leverage, lending, and collateralization to traditional finance.
3. Market/Investment Angle
- Bitcoin’s 10x Upside: Assia maintains a strong conviction that Bitcoin is still early, viewing it as the reserve currency of the digital economy. He posits that its market capitalization could eventually surpass that of gold (currently ~$10+ trillion), implying a significant upside target (10x from current levels).
- Tokenization of $100 Trillion in Assets: The convergence of generational wealth transfer (Gen Y acquiring $120 trillion) and technological transition suggests that $100–$200 trillion worth of existing assets (stocks, bonds, real estate) will move on-chain over the next 25 years.
- Retail Investor Dominance: The rise of the self-directed, global retail investor is a major trend. Bitcoin is noted as the most widely distributed asset globally, and platforms like eToro serve as a gateway for these users to understand broader capital markets.
4. Notable Companies/People
- eToro: A $6 billion publicly traded company with 3.5 million users, aggressively scaling its US operations post-IPO.
- Vitalik Buterin: Mentioned for his early engagement with the colored coins concept, which influenced his thinking on blockchain utility beyond just currency.
- Traditional Finance Giants (Fidelity, BlackRock, Goldman Sachs): These firms are actively exploring or launching money market funds and other assets on the blockchain, validating the tokenization trend.
- Donald Trump/Political Figures: Noted for the surprising, sudden shift in the political narrative around crypto, evidenced by the presence of the crypto community at a recent DC event.
5. Regulatory/Policy Discussion
- US Regulatory Headwinds and Recovery: eToro faced significant regulatory pressure in the US, leading them to delist most crypto assets except BTC and ETH (deemed commodities).
- Improved Clarity Post-IPO: Going public served as a trigger for eToro to aggressively scale its US crypto offering again, adding over 60 assets post-IPO and planning to reintroduce staking. Assia notes a perception of better regulatory clarity under the current political climate.
- Historical Debanking: Assia recounted a 2017 incident where major banks demanded eToro remove $100 million due to their crypto exposure, contrasting sharply with their current relationships with major global banks (J.P. Morgan, Goldman, Citi).
6. Future Implications
The industry is heading toward a convergence where tokenization simplifies access to complex assets (like an ETF wrapper for everything) and removes global trading barriers. Traditional finance innovation (like 24/5 futures trading) is borrowing efficiency from crypto/DeFi. The focus will shift from meme tokens back towards the tokenization of Real-World Assets (RWA), which Assia believes will see mass adoption around 2025.
7. Target Audience
This episode is highly valuable for Crypto Investors, FinTech Professionals, Asset Managers, and Institutional Strategists interested in the intersection of digital assets, regulatory evolution, and the future of retail investment platforms.
🏢 Companies Mentioned
💬 Key Insights
"And there's no doubt that the biggest game-changer in trading and investing is AI."
"Most of the people within the crypto community who are crypto-native, they were like, 'Why would I pay management fees and not hold my actual Bitcoin? Hold them in a bank where I know the bank can maybe not open, can maybe tell me to move my assets somewhere else.'"
"So change happens slowly in traditional finance, and change happens extremely fast in crypto finance, right? So you can... we've seen NFTs that suddenly become super expensive or super valuable, or meme coins that go from zero to hero in a day or two, right? So extremely fast versus extremely slow."
"I think they don't have a choice. It's inevitable. They have to try, or they'll get behind, right?"
"Tokenizing a real estate building is one thing. Making sure that there's liquidity for people to actually buy and sell some of that real estate as a token 24/7, that's much harder, right?"
"And that's why now the shift is first to 24/5, but I think the shift will go into 24/7 earlier than expected."