We ask builders in the blockchain and cryptocurrency space what they think of the industry…and throw in a few random zingers to keep them on their toes!
This week, our 6 questions go to Joe DiPasquale, CEO of BitBull Capital – a company that manages a collection of crypto hedge funds and has access to closed-end, proprietary funds.
Joe DiPasquale is CEO of BitBull Capital, which has managed crypto hedge funds since 2017. Joe founded BitBull because he believes in actively managing crypto investments. He has been an investor for 10 different crypto hedge funds, in addition to managing his own active strategies since 2013.
Previously, Joe worked in investment management, investment banking, technology and strategy consulting at Deutsche Bank, Bain and McKinsey. He holds a BA from Harvard University and an MBA from Stanford University. BitBull also operates BitBull Research, which regularly publishes its “Crypto Investing Newsletter”, available with a free subscription on the BitBull website, as well as its “Opportunistic Deals Memo”, available only to investors.
1 – What problem do you think blockchain has a chance to solve but hasn’t tried yet?
Most of the problems that will be solved by the blockchain are not solved yet. Ben Horowitz from Andreessen Horowitz said it was similar to the App Store that came out on iPhones in 2008 – we couldn’t design apps like Uber or Pokemon Go or the like, but the technology was created. Along with blockchain, we see its use in cryptocurrencies, DeFi, NFT and the Metaverse, and even traditional finance, but most of the developments are yet to come.
2 — What type of consolidation do you expect to see in the crypto industry in 2022?
I don’t believe that 2022 will be a year of consolidation; rather, it will be a year of continuous improvement of protocols, from Eth2 to various others such as Solana, Polkadot, Avalanche and more. Although consolidation is inevitable, we are still in the early stages of development and expansion. The time has come for the creation and diversity of technologies.
3 — Which countries are doing the most to support blockchain, and which will be left behind?
It will certainly be interesting to hear Biden’s planned executive order regarding crypto, but El Salvador has done the most to support blockchain and crypto. It was the first country to officially rank Bitcoin as legal tender. There are other countries, such as Japan and Switzerland, where blockchain development has been promoted and encouraged. And despite being a territory, not a country, Puerto Rico is quickly becoming a hotbed of blockchain and crypto activity.
4 — When you tell people that you are in the blockchain industry, how do they react?
It depends on how you phrase it. When I tell people about our positive returns during many crypto bearish periods, like the start of 2022, or getting 15-20% APY on stablecoins versus 0.1% with an account bank, they are interested. When you simply tell people that you are running a “crypto hedge fund”, they tend not to understand how that differs from buying and holding bitcoin.
5 – Which makes sense to you, and which doesn’t?
One of the most important things about investing is being able to gather information from a variety of sources, including – and especially – those you disagree with. If people don’t make sense to me, I try to listen twice as hard. On the other hand, one thing I love about hedge fund investing and management is that we are very quantitatively measured and our results are visible to everyone every month.
6 – Name the things you own that you will never part with.
I spend most of my time working so my desk setup is specific to me and has been built over time to be comfortable and efficient, including my second monitor and my ability to sit or stand upright. There are also some things I’ve acquired over the years, like an artistic representation of Bitcoin from a meeting in Japan, which I also keep on my wall and love.