ROLLUP: 2nd Week of December

Transcript

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david huffman second week of december what are we doing today we are rolling it up ryan we are compressing a whole entire week's worth of information into a 25 minute video we are going to give five minutes to a bunch of different topics first the market what is the market telling us then five minutes for what got released then we go into what's in the news and then we get into what is on our minds and lastly we finish with what we are excited about we are rolling up the week and injecting it right into your brain so we're not going to say anything about that weird intro we just did david we're just going to act like it's normal and ignore it okay podcasts are fantastic i don't have seen it awesome guys this comes at you every

friday morning so you can drink your friday morning coffee and you can enjoy the week in crypto of course it's released on youtube which is the best way to view it if you want all the visuals and also on the podcast david let's get ready roll it up roll it up my friend we're rolling them up we're rolling them up okay let's okay market let's start with market what is bitcoin doing i'm sharing my screen we're looking at some price data we're down we're down david hoffman down all the way to the low low price of eighteen thousand three hundred and eighty dollars this is so low it's so incredibly low um bitcoin has been above eighteen thousand for nine days in a row which is pretty crazy when you think about the last time

in 2017 we were at 18 000 i'm pretty sure we weren't above 18 000 for nine hours now we're consolidating above 18 000 for nine days in a row taking a little bit of a tumble we were pushing up on all-time highs but we took a drawback both in bitcoin price and in the ether price ether price has fallen all the way down to 560 dollars you know these low cheap eath prices um but you know still consolidating relatively high to where we have been historically in the in the near term okay so my rate of the tea leaves at least this is the conversation is going there's there's maybe a bit of a chill like a regulatory chill in the u.s and maybe some other western countries we we talked to the

coin center folks on on uh tuesday and it wasn't anything conclusive it's just like these vague rumors of things brewing is that why the market has chilled a little bit over the past week after all of the momentum we've had coming into december you know news and price action does tend to line up i don't know if there's anything proven about like people got scared out of their positions because of this perhaps regulatory fund i think this is within the realm of just like normal cryptochop uh like still prices are relatively high uh and so i i perhaps you could link those two i think they're relatively disconnected the market always wants a reason particularly human beings always want a

reason for this type back to the regulatory stuff in a minute but we should look at some other metrics while we're talking market bitcoin on aetherium has gone up or down a little bit down a little bit down a little bit down 2 000 uh btc from 147 000 btc on ethereum to 145 000 btc on ethereum okay how about d5 so locked in in d5 is down a little bit which makes sense given the price decrease in eth and some defy tokens we are down from about 14.7 billion to about 14 billion so we're still hanging in the 14 billions and then dpi the index for all of d5 go fell down from 116 down to 103 dollars actually did kind of

take a bigger tumble yeah i guess that's you know basically that that's been sort of a consistent thing right bitcoin takes a hit ether takes a a larger hit right and then uh d5 kind of follows that's been a general trend that we've seen in these patterns um eth hash rate you know that that's something that's actually gone up even in the midst of uh some of this some of this more recent down underneath the price like why so why what is actually what is eath hash right why do we care and why is it going up right the eth hatch rate is the amount of guesses that people are making about blocks trying to mine a block how many people are trying to put forth how many guesses per unit of time to guess a

block because then they get the ether right and the higher the east price the more economical it is the more willing you are to burn more electricity to hopefully get that ether reward in the block the all-time high uh or the hash rate generally follows price because that's just how much that's the security budget and the hash rate follows the security budget but it also integrates people investors confidence into the future about the asset interestingly miners have historically been like the best traders if you do a retrospective analysis of when they sell their assets because they have the most skin in the game so when miners are bullish it's i am leveraged bullish because of the signal that they are offering and so higher hash rate stronger confidence in the network

overall better fundamentals we don't usually look at hashrate but what's interesting about it i think this week is this is post 2.0 launching so this is post heath staking and yet cash rate is still continuing to go up i guess that's just for the reasons you stated because eath price continues to go up so the miners are still kind of collecting their teeth maybe some of these miners will become stakers as well we talked to hudson jameson about that during the eighth launch uh so that that is a definite possibility that they're still mining in order to acquire that earth so that they can be validators in the future absolutely absolutely totally well let's talk about eve too because we've got some metrics

in it right now eth2 has been running for over a week now week birthday all right happy birthday eth2 uh it's gone okay so far wow like off the launch pad into outer space heading towards the moon we've got uh 27 000 active validators now um a very decentralized network from a validator perspective we've had some slashing events actually which is super interesting some double signs which are the slashing events that you most want to avoid it's interesting these have been custody staking providers that have been slashed not the at-home hobbyist folks so that's been interesting but there's a lot of staked ethan here now i

think there's over over 1.2 million this might be a day or so this is probably more now over 1.2 million deposited eath in the the in the contract and the participation rate is what i am most excited about the participation rate is 99 so that was a number that we like we didn't know how high it would be because in test nets it was a whole lot lower because people would stop mining their their validators their machines would go off well when real economics are at stake they are not doing that they are participating in the validation process because there are funds at stake that's at 99 pretty amazing after five years of work

david yeah and uh you're right that tweet was uh is a day old and it says there's a 1.2 million and if going to the launch pad there is 1.37 million in the deposit contract so we're already we're still climbing those numbers that participation rate the 99 uptime is really really strong uh and overall just the the success of the eth2 launch i think i think couldn't have been any better the interesting thing too is this e2 deposit contract is consuming like 40k eath a day so and that's like three times more than the amount of eth that is being issued right so all that new issuance a large portion of that if you want to look at the network like this it's just

getting locked up in eth2 and it can't be touched for the next year and a half two years at least uh yep so fascinating okay one other thing to talk about and then we'll get to you the releases this week this is usd versus heather supply growth what do you want to say here david yeah it's interesting to see usdc the bank friendly regulated uh stable coin out grow in in recent terms now you know tether is already so big so i guess that's it's kind of kind of not really fair to say like it's hard for tether to maintain that growth when it's already so big but in the realm of you know bank friendly government friendly stable coins verse you know more more um uh off the cuff offshore stable coins

it's interesting to see the bank friendly one be growing um that's something definitely to pay attention to it's actually i think a good thing because i prefer usdc to tether from the fact of like we have some assurances that every usdc is backed by a real us dollar we don't have those assurances with tether so it is interesting to see the markets start to maybe select for usdc over tether all right that's the market let's talk releases what got released last week i think you're really cool with this sorry yeah a really cool thing is uh masari's new uh website uh missouri data analytics company putting a bunch of just data in front of you kind of like bloomberg right it seemed they're trying to get themselves to be like the bloomberg of crypto uh really

nice ui plenty of places to if you have a data minded friend this is the place to send them that's missari.io we've talked a a a bit about the ethereum report that they just put out too which you can find here but we didn't have a bloomberg sort of analyst friendly financial interface back in 2017 with nothing like it we had some janky coin market cap website right now we do this is just spotting the evolution of crypto as an asset speaking of that we should talk about this this is the urine finance quarterly report i had no idea this is coming but uh yeah can you describe what this is david yeah so a bunch of the urine community members uh banded together and put a quarterly financial report

together to recap what has gone on in the urine ecosystem which i think is really really cool they are doing a very good job producing content that legacy individuals legacy people that read over financial reports are familiar with and can consume and kind of use old mental models to understand what's going on in urine so i think the most bullish thing about this is that yearn as a community are putting forth the resources it they need to in order to make wi-fi extremely investable right so if you are trying to find alpha and you ha and and you're coming from the legacy world and you'd stumble upon yearn that becomes really interesting to you yeah absolutely this is almost a format

that's used by publicly traded companies and of course pokey traded companies have to issue quarterly reports uh on a quarterly basis along with annualized reports and i think some people forget that some of these defy token assets are actually throwing off cash right now so right in the first page of this report uh they talk about the three months ending from uh ending on october uh in october 2021 there was 3.8 million in net income right this is like a capital asset so i think once traditional financial folks start to understand wow these are real assets throwing off real cash and there's reports and this is generated in a decentralized community type manner

that's really going to shake up the the space and get some attention on the d5 space um all right let's talk again about e2 deposits because we've got some early takeaways uh maybe we'll highlight a couple of them one one that's interesting we've talked about before david is that 80 of all the deposits to kickstart e2 actually came in the final two days i guess that's just human nature i guess uh that makes sense that was predicted yeah this is something that's interesting too is um the top this is sort of a distribution of addresses the top 20 addresses beneath two make up less than 50 of deposits and a good way to look at that is you can look look at you know kind of the the concentration

of a validator power in eth2 and compare that to the concentration in staking in in mining pools in eth1 and what you find is they are mining pools are much more concentrated in eth1 versus eth2 so the top five mining pools did 70 percent of the eth one blocks right like that's happening today whereas uh the top 20 addresses only make up 42 of the total eth to validators and blocks mind so already we're seeing a more decentralized network of emerge from proof of stake you have any other

takes here yeah i think what we are seeing here is like a a some of the strongest decentralization in the space and importantly this is kind of a nice benefit of having like a six year long proof of work phase that has been a massive distribution mechanism for more ether ether as an asset is extremely decentralized and that is making validation of eth2 extremely decentralized which was the whole point in the first place absolutely all right you talk about this news dave because it's pretty cool yeah circle is launching a payments platform right with usdse getting into the realm of square and cash app using usdc as the backbone famously cash app has you know you can

send dollars on on cash app you can also send bitcoin on cash app but you can't send stable coins and you can't send ether right and so what circle is getting into is a payments platform very much like the the square that you um i i type my apple pay on on payment providers point of sale services like wherever you use like have that have square and i guarantee you if you've swiped a credit card at a normal store in europe or america you've used square definitely and this is where circle is in uh integrating themselves in that market with usdc getting into the realm of payments pretty cool absolutely yeah more and more crypto banks broaching up upon the fintech landscape except they're doing it of course built on crypto rails versus fintech which is traditionally

built on bank rails i think more on that in a bit but let's talk about this maker governance has added a few new assets what assets what does this mean well we all love ave everyone loves ave so that's getting added so that's actually absolutely fantastic ave has a very strong market cap so that means more die but also interestingly they are adding uniswap liquidity provider tokens which is really cool this is the a first of maker dao the uniswap di eth lp tokens and the usdc eth lp tokens are now collateral inside of uniswap which means that you can get put your ether and your die into unit swap to produce the lp token get fees paid on that and then you

can put that into a maker dow and get a loan from your capital asset that's accruing passive fees which is just pretty cool that's just money legos at work i was about to say money legos that worked and then you ended with that so well done sir i guess this is why we're killing my mind [Laughter] news what's in the news right now do you want to start with this stat we're talking about the decentralization of eth2 let's talk about the number of nodes david what's this mean yeah especially during a week when regulatory concerns have been top of mind there has been an explosion of nodes in the ethereum network and if we cut out all of the united states if somehow the united states went ultra authoritarian

and told us that we couldn't run our ethereum nodes there are still 8 000 nodes in the rest of the world which is importantly more than the total number of east nodes that there were just a few months ago so the the total number of east nodes is just going through the uh going through the charts that's pretty cool yeah and the reason ethods go up is basically because youth is incentivizing more node participation the protocol itself is starting to incent greater decentralization of the network which is which is quite a uh a powerful force here um speaking of regulatory we had the the folks from coin center on really smart folks jerry and and peter

talking about the stable act for folks that missed that conversation which is state of the nation on the podcast on wednesday youtube on tuesday can you give a tl dr of the stable act why that's that that was important this week yeah the point of the stable act is to bring people that are issuing stable coins or people that are just managing stable coins in general into the fold of the banking system and getting them forcing them to be uh to be a banking get a federal banking charter right so basically to be just an extension of the federal reserve and the federal government right and we don't want that and it goes so far to include something like maker dow or die to getting a banking charter which is just never

going to happen right and then the conversation has even turned to like if our nodes are processing like die transactions or usdc transactions if you are all culpable in a usdc or non-bank chartered stablecoin transaction then you are involved with this legislation so it's just an example of bad legislation however we are getting rohan gray who is one of the leaders behind the stable cact onto the bankless uh bankless youtube to discuss this and get hims perspective directly i'm interested to see why what he's so passionate about and why he thinks this is so important just so i can get you know know thy enemy you know know thy enemy yeah important to note this is a bill in

front of congress um like experts in washington say it doesn't really have a chance of passing but it's kind of a shot across the bow what could come in the future we always have to be on our guard acro against this type of legislation there's even folks in congress who have shot it down too which we'll get into a little bit later but we should return i feel like the last four weeks david we've talked about micro strategy every single week and it's because microstrategy continues to buy bitcoin what are they doing now this is the fourth time that microstrategy has made an announcement to buy bitcoin first they announced that they bought a bunch of bitcoin and then they did it again and then they did it again and then they are now reached most recently announcing

that they are issuing debt to buy more bitcoin right and what's interesting to me is that if they are issuing debt in convertible notes and so if the share price of microstrategy goes up then that debt gets converted back into equity and back into shares of the company so they're minting microstrategy shares to pay for this debt in order to buy bitcoin and what's interesting is is in the the whole reason why microstrategy is bullish on bitcoin is they think that the money printer is going bur right and so because the federal reserve is printing money they are putting bitcoin on the balance sheets but then microstrategy said oh we can print our own equity too and then put bitcoin on the balance sheet with that right and so let's not not

forget that bitcoin isn't just a rally against um soft money like the us dollar but it is something that's anti-printing in general and if you are able to print something in order to buy something that can't be printed and put it on your balance sheet that's really interesting and that seems to be the path that microstrategy is going down it's almost like a weird form of arbitrage because like companies over the past years uh well while the money printer has been going have been printing their own stock um or actually printing printing kind of their own equity and doing these share buybacks right well now instead of doing a share buyback they're actually buying bitcoin putting on the balance sheet and getting this sort of arbitrage because they can print their own equity

very interesting and the the truth of the matter is there aren't a lot of ways that traditional investors who are locked into their brokerage accounts can gain access to bitcoin so this is potentially one of them very interesting development a few more takes on this actually is that they they did this for 400 million but they were over subscribed and ended up raising 550 million so like it's crazy in demand and also one last take on this is is pierre richard calls this a speculative speculative attack on the dollar where if more and more companies do this they are borrowing dollars to purchase bitcoin effectively going short on the dollar long on bitcoin and if more and more and more people start to do this

well then the dollar just devalues because everyone is selling the dollar and buying bitcoin right and so like he calls us a speculative attack which is interesting it's fascinating last thing for bankless listeners look if you're looking for crypto exposure don't go buy microstrategy stock okay like go buy some real crypto on exchange this is for people that uh don't know how to do that uh but anyways you don't listen to bank lists so don't you go make that mistake following in the footsteps of microstrategy though and to the point you just made this was huge news that just came out today mass mutual a mega massachusetts-based insurance firm has also bought a hundred million dollars

worth of bitcoin and what this what's interesting about this is they don't have a um majority share like champion founder like michael saylor at the helm this is a fairly sober insurance company that is taking a portion of their balance sheet assets and going and buying bitcoin almost front running maybe the market front running other insurance companies at this front running other publicly traded companies this is almost bigger news than the micro strategy news in my mind what's your take yeah michael saylor is a bitcoiner right and so he puts bitcoins on his balance sheet that's what bitcoiners do mass mutual is not a bitcoiner they don't they aren't run by like this one rogue individual who gets to dictate

what the company does which is microstrategy mass mutual is doing this like like you said in a very independent and and well thought out vote which they voted on a bunch of people voted on a board or whoever the board of directors of this company is voted to do this right and so there's it's not just one guy there's a consensus among a bunch of people to to put bitcoin on the balance sheet and to me this really indicates that like what we thought was going to be like a gold rush triggered by micro micro strategy and michael saylor like we didn't know if that was going to happen or not but with this happening i think the gold rush is on like this is the firing gun for people to put bitcoin on the balance sheet because

now it's now it's normal people right it's not michael sailor it's normal people hurry up you gotta get in the pyramid uh in the pyramid is on absolutely all right um speaking of musical chairs being on ray dalio i didn't read this full ama thread it's in my queue but give us a takeaway so he did an ama on reddit are like like quite famous for the community gets to ask uh people like this questions and one question was about bitcoin dalio has historically been pretty bearish bitcoin but bullish gold and bullish gold for um reasons of modern monetary theory he like is a full believer

that we have entered a a third level of us government's printing money and kind of the final level level before they inflate away all of their currency but he says go buy gold as a result he hasn't been warmed to bitcoin something a little bit different in this thread what what does he say and what's your takeaway here david yeah well he recently posted on twitter like i might be missing something about bitcoin and a lot of bitcoiners thoughts were like yes we knew we'd get you like one back to bitcoin and this seems to be like the follow through to that like this is the second public comment that ray dalio has had saying warm things about bitcoin he doesn't seem to be like completely converted but he is starting to integrate bitcoin as like a

non-sovereign anti-mt type of asset that could perhaps fulfill some of the worries that he has about the future of fiat currency this is the first time he says i want to highlight the quote so he's he's talking about bitcoin here so it bitcoin could his diversifier to gold and other such storehold of wealth assets he's saying it's a storehole historic value basically and uh an alternative to gold very interesting development there we'll see if we see some more developments um we've also got some interesting news we talked to the folks at ether capital this week for the bankless podcast that that show's going to be coming out soon but this is another like grayscale of

canada basically so if you're familiar with grayscale and their gbdc and e um e products in the market there is a canadian-based equivalent that just released an ether fund on the toronto stock exchange they already put 75 million into this eth it's actually getting released as you hear this like this morning sometime today um this is just more eve being locked up and i you know what i think this means david is like ether is benefiting from all of the institutional bridges of bitcoin yep so ether has the venture style upside of defy it's like this one-two punch that i think is going to be pretty

interesting going into 2020 uh and eth is definitely an asset that's benefiting from this institutional side as well what's your take yeah ether is definitely drafting behind bitcoin it took bitcoin 12 years to this point where like public companies are putting bitcoin on their balance sheet but now they're doing it in droves right like millions upon millions and millions of dollars or going of bitcoin or going onto balance sheet ether is doing the same in a in a lesser fashion but at a faster pace right so ethereum as a network is only six years old it's like roughly half the age of bitcoin but it itself is also going on to the balance sheets of both public public and private companies and it's it's doing it roughly i would say maybe one quarter maybe maybe less than that the amount that bitcoin is uh

but still doing it in half the time and so definitely benefiting from the wake of bitcoin and also overall throughout his lifespan moving faster than bitcoin has david i want to link these next two stories together in the news the first is this uh france is on the verge of imposing some mandatory kyc that's know your customer rules for all crypto transactions so that's one headline keeping your mind another headline that uh we've seen is that actually steve munich mnuchin who is the treasury secretary secretary in the us is also there's like this rumor in dc that he is considering some burdensome regulations on

self-hosted wallets in particular but certainly some enhancements on kyc rules so first let's talk about france and what that does and then let's talk about the us and and minutiae and some of these rumors so first france what is happening in france yeah so they are simply extending how far they want to go with kyc with in in the united states right now you kyc and then you can get a coinbase account and now in in switzerland you kyc and get a coin or a digital currency exchange account but then you also have to kyc an external wallet if you ever want to send it outside of the garden france it looks like it's going to extend that to the specific details of what it's extending it to i'm not

familiar with but it sounds like it's going to be even more strict than switzerland which is a little crazy and i would like to remind everyone that the no kyc is the defaults and the additional at the addition of kyc is the top down regulation so let's stick with the default guys come on yeah and there are kind of like three levels that they could go to with this the one is possibly france is just saying hey when there's a crypto crypto exchange type transaction that has to be kyc right and you know we saw that that was coming that was probably inevitable but the second step that switzerland has has taken which is you can't withdraw to an eth address let's say or a bitcoin address unless that address is kyc'd that is not currently the situation in france but might be as a result of this

bill but what does this mean for the us like uh minutian might be going down that route too and this is the letter that i'm showing you from a congressman from ohio which is actually a crypto letter this is congressman warren davidson who is is saying uh in this letter to mnuchin hey don't enact these strict regulatory virgin burdens if the rumor is true we want digital self hosted wallets we don't want them aml kyc you'll set the industry back don't do this first of all do we know if this rumor is true or not and let's say it is true what like what happens yeah we'd i think we should assume that there's definitely

something real going on there because a lot of people that we respect from both from coin center and also jake travinsky are saying that there's something there uh the details of this are yet to come out like how strict they're actually going to be um it is interesting that steve mnuchin is trying to get something done while he's well him in the administration he's a part of is on the way out um however steve mnuchin friend of the banks right therefore not a friend of bankless uh and whatever steve mnuchin is doing i don't i don't like it uh and then one and one thing i'm worried about and this is the conspiracy theorist in me is like the banks are putting pressure on steve mnuchin to like you know break some stuff on his way out so that they can get a little bit more protection because

they they know that that crypto is coming and it's not necessarily a good thing for for the incumbent banking system okay let's say that's the case something bad does come in this lame duck uh presidential situation here is that is that the end of crypto does cryptic price you know it tanked is it the end of crypto in the us at least what happens i'm i'm still running my node you can see it right over there uh so unless unless somebody's coming to my house and stopping me from doing that i think the crypto shall continue yeah absolutely i'll have to see what happens i think we might see some market turbulence if news like that emerges uh but we will uh we will we'll talk about it as it does um some other things going

on paxos becoming the latest crypto bank to actually become file to become a real bank that is happening more and more uh we also have no big surprise we also have a jp morgan report which is kind of echoing maybe some of the sentiments of dalio uh some analysts from jp morgan saying that gold will suffer for years because of because of cryptocurrencies because of bitcoin in particular here bitcoin is it's the cool new toy gold is dumb gold is a boring toy bitcoin is a cool new toy we've talked about the demographic change right like i think we even mentioned this last last pod like there's nobody that we know under 35 who's excited about gold relative to

crypto right now right bitcoin number goes up gold number doesn't go up very much all you have to do is wait my friends all right david let's do some hot takes what if you want to live a bankless life you need to get a hardware wallet there is no alternative for storing your crypto in a self-sovereign fashion that's why i have four ledgers that i use to manage my different crypto assets using the ledger live account as well ledger live is like your home base for managing your ethereum defy and crypto accounts it does a really good job of aggregating all of your different ethereum wallets if you are the type of person that uses more than one but you can also add other cryptocurrencies like

bitcoin or cosmos or whatever your preferred blockchain is and then it will display an aggregate portfolio of all your accounts at the main page one thing that ledger is doing a really good job of is enabling all the money verbs that me and ryan talk about with the bankless skill cube enabled in the ledger live app so right now in the ledger live app you can buy sell lend swap and stake your crypto assets which is doing a really good job of fulfilling all of the money verbs in the bankless skill cube something that's new to ledger live is ledger swap where you can swap assets one for another directly inside the ledger live application ensuring trustlessness in your financial activity on ethereum and on bitcoin if you want to learn more about what you can do with

a ledger go to the blog post the power of ledger live on the ledger website where they share some of the more advanced things that you can do with your ledger that you might not have known about there's a link in the show notes that will take you to the ledger shop where you can get your preferred ledger hardware wallet i personally like the ledger nano x but i also have both they're both great options when you own a ledger you own your own assets in the way that they have been designed to be held by the user and the user alone so go get your ledger today to make sure that you are as self-sovereign as possible the bankless state in the nations are brought to you by wiring wiring is defy's first self-building community run project which i just get really really

excited about iron is a system that seeks out yield in d5 and it does that in a number of different ways a very aggressive way is with the vaults where you can deposit your preferred asset of choice and different defy experts will come in and generate a strategy for what to do with your deposited token right and so it'll go find ways to get yield in that deposited token in d5 for those who want to just earn yield on their stable coins the earn system is for you where you can deposit your preferred stablecoin and wire will go and figure out which money market on defy and defy is producing the best interest rate whether it's dydx it's compound or ave it looks around d5 to see where the

yield is coming from and it directs stable coins automatically so you don't have to check them out at why earn.finance to get started and also check out the stats page to see what other people are doing david let's do some hot takes or actually before before hot takes no these are hot takes what's on your mind give me a hot take yeah so here's what's on my mind is that it's becoming clearer and i think the the majority of the cryptocurrency ecosystem is now understanding that maybe this is my my ethereum bias but i think the cryptocurrency ecosystem has now integrated ether as an non-sovereign store value asset that's alternative from bitcoin right like now the cryptocurrency industry has produced two non-sovereign store value assets right

both bitcoin and ethereum fill this niche and i think that uh the rest of the world that that's that's effort that we that we tried to hammer for the last two years and it took two years to get the cryptocurrency industry to accept ether as an alternative to bitcoin as a non-sovereign store of value but and i think we did it nice job now moving two years into the future i think that's when the rest of the world starts to integrate this information as well it's like oh there's bitcoin it's the 21 million hard cap currency and then there's also ether which is backed by the ethereum economy which is like this economy that's built on the internet also a non-sovereign store value i think that is what i'm that that's what's on my mind is like thinking about how the rest of the world is going to include

ether in the category of non-sovereign store value assets so you think the train has left the station that's just going to happen at some point that we're maybe a bit ahead of the curve bankless listeners are probably a bit ahead of the curve but trains left the station it's inevitable at this point that ether becomes a recognized store of value yeah absolutely and i think people that are looking into this space are going to like look in it's like yeah every we know bitcoin but like what else is there like what happens when you go beyond bitcoin like what's behind the scenes there and i think they're going to discover ethereum and fall in love or maybe again it's just my bias so if that's the case though just as bitcoin is in kind of a price discovery mode for the next decade so too is eth

and possibly even more so given some of the attributes that we've been talking about um will be interesting to see if more folks bite off on that narrative ryan you've been chewing on this idea all week so i'm excited for you to share what's on your mind it's just mullets are on my mind david hoffman you know coronavirus mullet but you know it's not me that's growing the mullet so this the the the inside here the hot take here is that it's fintech that is actually growing out the d5 mullet um this is basically you know fintech in the front defy in the back that's where the party

is happening and i think that um we're seeing essentially fintech swap out slowly it's banking traditional banking infrastructure and those rails as we call it in the past for crypto infrastructure so i'll just drop like i put together an opening note on bank list about this on monday but like five points cash app grew to a one billion they're doing one billion per quarter in bitcoin sales right now okay so fintech right and what what's what's in the back it's bitcoin they're buying bitcoin uh paypal is now allowing users to purchase any crypto and they're connecting that to 26 million merchants right this is just the start next it's going to be stable coins another d5 type product crypto support is going to come to venmo

next quarter robin hood's been doing crypto for a long time i just looked at their education material this is kind of like where millennials go and trade stocks essentially all their education material it's like it's it's about crypto they're onboarding millennials into the world of cryptocurrency coinbase is becoming even more fintech every day so they're going the other direction they're issuing a credit card um a visa card actually now when we're talking about visa this is probably the biggest news at all we talked about this last week but visa actually announced an integration with usdc so this is the first time a business actually take out a visa card instead of using us dollars represented

in wells fargo or bank of america or wherever else they're actually using usdc this is it this is the mullet david this is um this is fintech in the front and now instead of instead of this nice trimmed haircut banking infrastructure in the back they're grown up the d5 mullet it's just all defy it's the party in the back right um so that's my hot take i think it's gonna happen more and more this was the uh the circle announcement that we were just talking about like 20 minutes ago this was the same thing it's a it's a square alternative that runs on usdc so uh point of sale in the front and then usdc in the back yeah running on ethereum so that's that's pretty dope the bullet's getting longer it's been longer the ball is getting longer but but

here's where it links into the regulatory discussion we're just having is i think a minutian or you know some you know stable act is going to have a very difficult time banning crypto and having very strict regulatory um apparatus around crypto when they've got large fintech fortune 500 companies that are building out this crypto infrastructure because then it's not just the craziest like us who are crypto native saying hey don't do that our freedoms right it's it's wall street it's paypal it's square going to u.s regulators and saying hey if you do this you force innovation out of our companies and you force it

outside of the u.s and they have a much bigger stick in uh congress than we do so once wall street gets on board once fintech gets on board they start building on ethereum munitions not going to have the ability no one in congress is going into the ability or the political will to start taking really strict regulatory actions against crypto that's my take that's how i think that that links to um maybe there'll be some negative regulatory action in the near term but in the media maybe people won't like like the battle's over yeah not at first they'll be popular all right well let's get to the next one david what are you excited about at this

point in time dude ryan i'm excited for all the bullish ethereum content that we are in the middle of producing and have uh scheduled to produce as well we just recorded with the ether capital boys uh i just i was editing it yesterday and it's ready to go we're going to put that out i believe on the 28th we're recording with eric connor anthony cesano and and dc investor off top uh and uh all about the bold case for ethereum and that's going to be just [ __ ] awesome uh and and so i there's going to be a bunch of just bullish content coming out of bankless in the future and i'm excited to start beating some of those drums david you put out this gif i think as you were editing of this like orchestra conductor conductor down this like in

passion is that really how you feel when you're editing these podcasts you feel like the orchestra conductor and just like making magic yeah sometimes when i see when like you know three people like you the two guests me and are all conversing and we're all just hitting point after point after point i'm like yes like next point next point next point keep bringing it keep bringing them and uh yeah that's what that podcast was like that is awesome man yep lots of good content coming at you guys for sure what are you excited about i'm excited about 2021 i'm ready for 2020 to be over like i'm done with it i'm done with b20 i'm also you know something else i'm done with i'm done with a two and a half three year bear market like i'm done with it and i think we're gonna leave it behind in 2020 i

think 2021 we've got all of the like i've never seen i've never been so bullish about crypto given all of the tailwinds that we have at this point in time like bitcoin has never been stronger maybe there's some regulatory uncertainty in the air in december but like that's going to fade away i think uh in 2021 eth went through the fires of its first massive bull market down 95 percent 95 now it's back down like yeah 60 or so but it's recovered now it's on the road recovery it's on the road to uh all-time high some of the thesis we've been talking about and uh weren't too sure of in 2018 sounded crazy 2018 2019 even the d5

thesis that ethereum could actually support a d5 economy well deep five has grown to 14 billion in assets under management that thesis has proven out yes in a small way but now it's just a matter of of scaling those tailwinds um triple point asset well we talked about ether as a triple point asset staking just launched protocol sync thesis that's another term a fancy term for the d5 mullet like the starting happen like the ip1559 is moving really really quickly like that seems like it could be sooner yes way faster than we thought absolutely so it's all of these things um that i think are really bullish we've got a lot of tailwinds um you know get

through december i think 2021 is still going to be like 2017 it's gonna be face melting um maybe it comes in the latter half i'm not sure where maybe comes a little bit into 2022 i'm not sure but i feel like the worst is behind us and uh crypto's on a really good trajectory at this point yeah i totally agree i think 2021 is going to be 12 straight months of number go up so that'll be fun to look forward to all right david that's been it i think we i think we've rolled it up successfully hopefully you guys enjoyed this as always this is not financial advice if bitcoin d5 they're all risky but this is the frontier it's not for everyone david my lighting is off my face has

been glowing in its weird way the entire time but we got through this awesome to be with you guys on the banquets jeremy thanks for joining us