Investors may not have a crystal ball that helps them ferret out the financial future for assets in 2022. Chamath Palihapitiya doesn't have one either, but he does have a lot of experience and billions of dollars that demonstrate his savvy in the markets. Find out what Palihapitiya is predicting for 2022 below.
Palihapitiya made waves in December by decrying traditional payment methods like Visa and Mastercard. According to the billionaire, who has a background working for Facebook and is an engineer and venture capitalist with his own fund, traditional payment methods will make way for blockchain-based options in the very near future.
The venture capitalist points out that the revenue model of traditional payment companies is a lot like a tax. The businesses charge fees of 2% or 3% on every transaction, whether that fee is paid by the merchant or the consumer. As Web3-based payments grow in popularity and accessibility, businesses and individuals have increasing ways to opt-out of the traditional payment "tax." Palihapitiya believes people are going to do that.
He also notes that the biggest traditional payment networks—Visa and Mastercard—have created a duology that's bordered on shared monopoly for years. Palihapitiya doesn't think it's at all necessary and believes the markets are about to shift to bring down the big dog and raise up many new underdogs in that place.
The TL;DR here is that Palihapitiya says investors might want to consider shorting Visa/Mastercard in portfolios and going long with a diverse selection of high-quality, well-vetted cryptos. According to Palihapitiya, the big traditional players in payments may be at or reaching peak market cap and about to begin a long slide down the other side.