Brock Pierce, Co-Founder of Tether, EOS, Blockchain Capital, on Tokenizing Real Estate, 2024 Crypto Markets, and Bitcoin | Ep. 313
Brock Pierce, a crypto and blockchain OG and founder of Tether and EOS, sat down with Cryptonews Podcast host Matt Zahab to discuss the current bullish situation in the crypto market.
In a wide-ranging, exclusive interview, Pierce talked about the US returning to the crypto scene as a participant following the spot Bitcoin ETF approvals, democratizing real estate investments through tokenization, and projects avoiding the ‘securities’ label, even when it suits their products better than ‘utility.’
In this interview, Pierce discussed:
- his motivation to join EstateX as an investor and strategic advisor;
- the difference between securities and utility tokens;
- brick and pixel = where physical and analog meet;
- how crypto provides solutions to the traditional banking system;
- Bitcoin ETFs and 52 million Americans holding digital assets.
The Bull is Running
This has been an exciting year so far for everybody in crypto, Pierce told Matt. The entire space went from “bull-ish” to “likely full bull.”
And we’ve just begun.
The first massive event for this year was the approval of the spot Bitcoin exchange-traded funds (ETFs).
Pierce argued that people don’t really understand how big of a deal this actually is: both for the Bitcoin (BTC) price and the crypto industry in the US.
Had the opportunity to discuss Bitcoin hovering around $43K after post ETF selloff today on @TheBigMoneyShow at @FoxBusiness
Amidst the 2024 US elections, the launch of the Bitcoin ETF marks a pivotal success for cryptocurrency, showcasing its growing acceptance and sparking… pic.twitter.com/pWWAU5kjHb
— Brock Pierce (@brockpierce) February 3, 2024
This former presidential candidate argued that the USA is an innovation leader but that its position on crypto is “a very real concern” in the country’s congress.
“American entrepreneurs were leaving the country left and right in droves. A lot of America’s greatest talent was leaving. A lot of America’s highest-potential businesses were leaving because of regulatory uncertainty.”
The ETF approvals changed this. There will be more regulatory issues and discussions. But “everyone can rest assured that America’s position in being a participant and not continuing to make this industry go away and pushing America’s finest across and out of our borders. It’s a game-changing event.”
Besides ETFs, another major event will be the much-anticipated Bitcoin halving in April.
Meanwhile, people tend to feel two kinds of ways in these market circumstances.
On the one hand, “all of a sudden, everybody feels poor,” said Pierce, because they measure their wealth based on their highs, not their lows.
However, a lot of people who have invested in crypto now understand what it is to have some degree of wealth. Per Pierce,
“This has been one of the greatest wealth transfers ever.”
The problem arises, Pierce argued, when people don’t diversify. Many people who have already invested in crypto will choose to diversify a bit in this next run, he said.
Notably, they are unlikely to reach for memecoins or non-fungible tokens (NFTs). They will seek to invest in real estate.
From ‘Brick and Mortar’ to ‘Pixels and Bits’
The tokenization of real estate is not exactly a new idea, but it’s an increasingly popular one.
And now is a good time to jump into democratizing real estate investments through tokenization, Pierce argued.
There are many ways to democratize access to this type of investment product, and blockchain is not necessary to do that. However, these novel technologies are helpful in the space, Pierse said and added:
“We talk about the brick and mortar business, call it real estate, and let’s call it ‘the pixels and bits business.’ This is where brick and pixel, the digital and the analog, the hard and the soft assets meet.”
This is a very clear value proposition, Pierce said. Real estate is a major asset class that most people do not have access to unless they are very wealthy.
Tokenization is here to help them enter the real-world asset (RWA) space and diversify their portfolios at the same time.
Per Pierce,
“[Real estate] is just something that any person that is going through asset allocation and wants to have a well-rounded portfolio with a diverse set of assets that can weather any storm or market condition that comes […] should consider.”
Near the end of February 2024, Pierce joined real estate tokenization startup EstateX as an advisor and strategic investor. The company aims to democratize access to real estate investments, allowing investors to benefit from increased liquidity and lower investment minimums.
Welcome aboard @brockpierce! The #EstateX Fam is thrilled to have you!
Here's to disrupting entire industries and more! Onwards and upwards! 🚀🚀🚀 https://t.co/DsptxH8BRz
— EstateX (@estatexeu) February 20, 2024
The possibility to invest as little as a hundred dollars and speculate on real estate as an asset class is something that “will make the world a better place,” Pierce said.
He continues to look for more real estate projects that can deliver the types of yields and returns “that are needed for this to be a viable long-term solution that is ultimately delivering on the promise, which is value.”
Also, another theme he is interested in is self-sovereign identity, describing it as the Holy Grail.
This is the foundational layer, he said. “Identity is more foundational than money value finance. […] So I’m interested in sort of the continual tokenization where people can be enumerated for their participation in open source software development.”
Security v. Utility: Some Things Are Better Left Securities
Pierce also touched upon the ongoing battle within and beyond this space: securities versus utilities.
Real estate is a regulated market, and rules are much clearer than they are in the crypto industry. The latter’s lack of clarity has been a sore point for years now.
A lot of work has to be done to be compliant when offering securities – it can’t happen fast, and it creates a barrier to entry.
Therefore, Pierce stressed that,
“Some people are busy taking what should be a security and making it into a utility to avoid rules and regulation and to not have dilution and getting free money for themselves.”
He referenced the security token BCAP, created by Blockchain Capital under Pierce’s leadership, which went through an initial coin offering (ICO) in 2017.
At the time, Pierce stated that BCAP was a security and was critical of projects that tried to avoid this label.
“I was watching a lot of people doing their ICOs back in the day where I’m like, you’re really better off being a security,” Pierce told Matt.
“Because there is a difference between utilities and securities. It doesn’t all have to be a utility token. There are things that are designed that way. And then there are some things that should be securities.”
It’s taken a while for the right infrastructure to occur, argued Pierce. But one thing that hasn’t happened yet is security token exchanges and offerings becoming “the thing.”
For something to get mainstream adoption, it needs to be an order of magnitude better than whatever it’s trying to replace, he said. “Otherwise, it’s a long, slow grind.”
Pierce concluded by saying that he’s “just so excited by the world’s potential and what it can be.” He told listeners that “the future is going to happen to you, or it’s going to happen with you. So get involved if you want to live in a world that is of your liking.”
A woman in Costa Rica used #Bitcoin to sell her eggs at the farmers market.
Bitcoin empowers developing countries by providing access to financial services through smartphones, acting as a hedge against inflation, and fostering global economic participation. pic.twitter.com/0eUjtO60LU
— Brock Pierce (@brockpierce) January 29, 2024
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About Brock Pierce
Brock Pierce is a well-known figure in the cryptocurrency and blockchain space, recognized for his contributions as an entrepreneur, venture capitalist, and advocate for the digital currency ecosystem.
Pierce began his career in the entertainment industry as a child actor but later shifted his focus towards technology and innovation.
He co-founded several high-profile projects in the crypto and blockchain sectors, including Blockchain Capital, Tether, and EOS. He has also served as the chairman of the Bitcoin Foundation, aiming to standardize, protect, and promote the use of Bitcoin cryptographic money worldwide.
Pierce is also involved in certain philanthropic efforts and supports organizations such as the American Civil Liberties Union (ACLU), the Foundation for Individual Rights in Education, and the Brennan Center for Human Rights.
