After spot BTC ETF’s approval, is ‘utility crypto’ next? Investor believes…

• Prominent crypto-investor predicts blockchain technology will evolve beyond its financial applications
• Amid significant growth, there is now greater demand for robust regulatory frameworks

In an interview with CNBC, Chris Dixon, a major crypto-investor and general partner at Andreessen Horowitz, shared an in-depth perspective on the rapidly evolving blockchain technology. Dixon forecasts a future where blockchain becomes a core component of the internet’s infrastructure.

“I think this technology is inevitable. I think this is the future of the internet.”

Blockchain beyond finance 

Dixon emphasized the distinction between “money crypto” like Bitcoin and DeFi applications, and “utility crypto.” Utility crypto encompasses a much broader spectrum of blockchain applications.

This expansive view of blockchain technology sees its potential stretching into domains such as gaming, social networking, and various other internet services. This marks a shift from its traditional image as a financial instrument.

The era of ETFs

A pivotal point of the discussion was the recent Securities and Exchange Commission’s (SEC) decision on a spot Bitcoin exchange-traded fund (ETF). Dixon views this development as a positive sign for the industry.

“Crypto has been a technology that’s controversial, and I think any institutional acceptance like the ETF is a good thing.”

He also expressed optimism for the future adoption of ETFs and other financial products within the crypto-realm, aligning with his dedication to nurturing entrepreneurs who are creating utility-driven blockchain applications.

The under-appreciated world of NFTs

Another significant area Dixon spoke about was the ongoing hype around non-fungible tokens (NFTs). Contrary to the belief that NFTs are fading, Dixon argued that their utility is, in fact, underestimated. 

Dixon pointed to the $8.7 billion in NFT sales in 2023 as evidence of their burgeoning market. Additionally, he drew attention to their applications beyond digital avatars. NFTs can be used in diverse sectors, like digital merchandise for musicians and decentralized social networks.

Blockchain and AI: A convergence

Finally, the interview touched upon the intersection of blockchain and artificial intelligence (AI), particularly concerning deep fakes and internet authenticity. Dixon suggested that blockchain could play a significant role in creating immutable audit trails. It can potentially counter the rise of fake content online.

He also claimed there is a critical need for clear, robust regulatory frameworks in the crypto-space. This focus is particularly pertinent in the wake of major events like FTX’s collapse, stressing the importance of regulatory oversight.

Andreessen Horowitz, with Dixon at the helm of its crypto-arm, has invested in several key players such as Coinbase, Uniswap, Solana, and OpenSea. His insights are particularly valuable at a time when the crypto-industry is seeing rapid growth and facing both regulatory scrutiny and technological evolution.