Jason Deleeuw, CFA, is a Vice President and Senior Research Analyst at Piper Jaffray & Co., covering financial and business services companies. He had worked as a research analyst at Piper Jaffray from 2006 to 2011 covering financial services companies. Prior to rejoining Piper Jaffray in 2014, Mr. Deleeuw was a senior analyst on the financial equities long/short team at Pine River Capital from 2011 to 2014.
In this exclusive 2,792 word interview in the Wall Street Transcript, Mr. Deleeuw examines the potential of blockchain technology and whether investors can profit from specific bets on this new category.
“In terms of the negatives, the technology itself, blockchain technology, it’s costly to implement, and it’s questionable whether it’s even better than traditional database technology that we have right now. I think that’s still an open-ended question.
And then, the other thing, you need all the players in the business ecosystem to collaborate with the blockchain. And will those players in an ecosystem, are they truly willing to give up control to whatever the computer, whatever the protocol code or design is?
And if those businesses aren’t willing to give up control, then the question is: Is there really any difference between blockchain technology and traditional database architecture technology? Because the key value on blockchain, again, is that there is no censorship resistance, transactions can’t be blocked by a single entity.”
There are key positive attributes for blockchain based investments:
“…The cryptocurrency enables an exchange of value, so you can do transactions within a blockchain ecosystem. Again, there’s no censorship resistance, those transactions can’t be blocked, and you could exchange things globally without having to do FX conversion in and out of different fiat currencies.
There are some positives there, but the key negatives are the volatility of the cryptocurrency is just extreme. The processing speeds are a lot slower; the transaction processing costs are a lot higher.”
Read the rest of the 2,792 word interview and get the specific investing advice you need from Piper Jaffray analyst Jason Deleeuw.
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