Billionaire venture capitalist Chamath Palihapitiya says one sector of the crypto industry will be responsible for monetizing all assets and putting them on the blockchain.
In a new All-In podcast, the Social Capital CEO predicts that people will eventually find a way to tokenize all of their assets and possessions in an effort to capture value.
“All the leakage you have today goes away in a world of DeFi (decentralized finance) because you will financialize every single asset possible. You’ll financialize your homes. You’ll financialize your cars. You’ll financialize your watches, your jewelry, your art. You’ll financialize every random thing [including your] career.
By monetizing it and financializing it, you can borrow against it, you can trade it, you can pull forward value into the future against it.”
According to Palihapitiya, users who put their assets on-chain won’t mind paying taxes because of the potential to generate outsized revenues.
“But it will all be tracked. As long as the government then says, ‘Listen, we’re going to enable it all, but there needs to be an off-ramp to taxation.’ And that’s pretty simple because a physical house exists in the world. You can’t hide the existence of a physical house…
I think what this will create is a world where all of these assets that actually exist in the real world, it will be fine that it exists and that people get taxed on it, but it will be much more legitimate, and I think it will be simpler.
I think people will trade off incremental taxation for incremental monetizability… If you actually unlocked the ability to focus on revenue versus expenses, you just wouldn’t focus as much on the taxation because you’d say, ‘Well, I can make so much more money.’”
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