Silicon Valley investor and economic commentator Balaji Srinivasan predicted that all valuable assets will be secured and managed through blockchain technology in the future.
What happened: In a blog post published on Sunday, Srinivasan provided several examples to support his argument.
He starts by noting that trillions of dollars worth of Bitcoin (CRYPTO: BTC), which BTC advocates frequently refer to as "digital gold," is already secured on blockchain networks.
Next, he pointed out that stablecoins getting regulatory clarity as a legal "on-chain currency" paves the way for other financial assets, such as stocks and bonds, to be powered by blockchains.
Srinivasan referenced an old video showing a door that can be unlocked using Ethereum (CRYPTO: ETH) after verifying non-fungible token ownership. He argued that even physical properties, like homes or cars, can be secured with cryptographic keys.
"Indeed, any door can be secured in this way. The door to a plane, to a train, to a boat, to a building. Any door can be secured on-chain," he added.
Srinivasan acknowledged exceptions, such as consumable items, like food or clothing, which, according to him, represented a "negligible fraction" of the total value in the world.
He called blockchain the "only truly secure backend," which, unlike traditional systems like that of the Pentagon, is resistant to hacks.
See Also: Bitcoin Drops As Michael Saylor’s Strategy Halts Accumulation Streak; Ethereum, Dogecoin Also Dip: Analyst Expects ‘Violent’ Week Ahead
Why It Matters: A section of users critiqued Srinivasan’s arguments.
Nick Neuman, co-founder and CEO of Bitcoin-based company Casa, questioned the rationale behind having on-chain storage for smart locks, suggesting that local encryption and Near Field Communication technology could provide a more resilient and cleaner solution for securing physical items like doors.
The firm previously accepted Bitcoin as a payment option for vehicles before ending the practice due to concerns about the energy consumption used in Bitcoin mining.
Alex Shevchenko, CEO of Aurora Labs, questioned whether it is wiser to move TradFi on-chain or for cryptocurrency to have TradFi wrappers like exchange-traded funds.
“TradiFi has much wider adoption and is much bigger in $ value; crypto people are much riskier,” Shevchenko said.
Regarding the “secure backend” argument, while it’s true that blockchains have no single point of control and are immutable, concerns around security persist. In the first quarter of 2025, crypto hacks cost around $2 billion, nearly doubling the loss from the same period last year.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
