Billionaire Investor and CEO of Social Capital Palihapitiya moles Expect that traditional payment processors like Visa company (NYSE: V) and MasterCard Corporation (NYSE:MA) will lose out to crypto startups in 2022.
What happened: On a recent episode of the All-In Podcast, Palihapitiya scored to say he expects the “biggest business loser for 2022” to be Visa, MasterCard and the ecosystem that surrounds traditional payment rails.
He went on to describe what he expected to be “the most profitable spread trade of his life”.
“Stay short of these companies and basically anyone who lives off a 2 or 3% (transaction) tax, and be long and well thought out, Web3 crypto projects that rebuild the payments infrastructure in a completely decentralized way,” he said.
Palihapitiya admitted that while a lot of current “crypto spoof projects” are likely to go to zero, the more established projects with real interest in the space are worth betting on.
“If you read the white papers of these crypto projects, and compile a framework systematically, I think you can be long, and you can be Visa/Mastercard short because I think that is the height of their market cap.”
What then: Visa and Mastercard have recently entered themselves into the blockchain and crypto space.
In December, Visa announced that it would launch a crypto consulting practice to help its customers navigate their crypto journey.
Meanwhile, MasterCard is actively working to help prominent Ethereum (CRYPTO: ETH) Developer Consensys launches a new privacy-preserving solution for the Ethereum blockchain.
price movement: Visa shares are down 0.48% in 2021, while Mastercard has only gained 2.23% over the year. Both stocks underperformed Standard & Poor’s 500 Which rose by 28.79% over the same period.
Related Links: Stock Wars: MasterCard Vs. Visa