Chamath Palihapitiya is a person.
Brian Ach is the photographer for TechCrunch.
Chamath Palihapitya predicted that Visa and Mastercard will be overthrown by Defi projects in 2022.
Visa and Mastercard are his biggest business loser for 2022, he said in an episode of the "All-In" show.
The long-standing payment systems used all over the world are not needed to exist.
Palihapitya, a former Facebook executive who runs the venture capital fund Social Capital, shared what he thinks will be the most profitable spread trade of his lifetime in the coming year.
He said to short these companies and anyone that lives off of this 2% or 3% transaction tax, and to be long-thought-out, Web3 projects that are rebuilding payments infrastructure in a completely decentralized way.
He predicted that a lot of the scammy projects would go to zero.
He said that if you read the whitepapers of the projects, and put together a framework, you can be long them and short them.
A spread trade is a market order in which a trader buys one security and sells another in a single unit. The investors are trying to profit from the difference between the buying and selling prices.
Palihapitya thought that Amazon's decision to ban the use of Visa credit cards in the UK was related to high transaction fees.
He said that the canary in the coal mine is significant. "Amazon is not going to do something like that unless it's a test of what they can do all around the world."
There is no need for small businesses to use Visa, Mastercard, and AmEx. It's not necessary.
He predicted that the first people to adopt this technology will be in the developing world.
"This is why I think focusing on markets like Nigeria is more exciting than talking about countries like Western European countries." He said that this is where the stuff will happen.
In 10 years, the market caps of traditional payment processors will be lower.
The stock prices of Visa and Mastercard have been flat in the first half of the year, compared with a 27% gain in the S&P 500.
You're sitting on a windfall. Here's what you need to know about taxes and how to minimize them.
Business Insider has an original article.
