Glenn Hutchins demonstrated how public investors can know which of the leading cryptocurrencies will be the “right answer” and continue to thrive.
He predicted that some of the leading cryptocurrencies will disappear and few will successfully take over the market.
Mr. Hutchins, former chairman of Nasdaq and one of the earliest established Bitcoin investors, compared the battle for cryptocurrency to the dawn of the internet
Referring to the original commercial websites on the internet, he said, “You want Google – you don’t want to be Pets.Com.”
When asked on Fox Business News how to know which digital currency will be the “right answer” to the market, Hutchins said, “It’s difficult.
“The price is a distraction – rather, focus on the medium of exchange. It’s a very small, emerging property that has the potential to be transformative.”
“Bitcoin could be the wrong solution – and other tokens like Ethereum or Ripple might be the right answer.
“Can you use this technology as a solution to an important customer problem? That is the question investors need to monitor.”
Mr Hutchins has invested around £ 4m in a range of early stage investments in companies active in cryptocurrency.
The investor added, “I really think people are missing the point. They should be talking about the companies.
“It’s the greatest opportunity I’ve seen because the two most important things are business information and value.
“We can now move information around the world at the speed of light for free. Why can’t we do that with value in the future?”