ROLLUP: 4th Week of April (Venmo Crypto, Canada ETH ETF, Dogecoin & Safemoon, Ampleforth Airdrop)

Transcript

good morning it is the fourth week of april this is your roll-up from bankless david how are you doing today absolutely fantastic it's a great day inside of a great week and we are going to go through all of the details about why this week was so great here on the bankless weekly roll up absolutely so we're gonna hit you with the market releases news some hot takes and then end with what we're excited about actually scratch that we're going to end with the meme of the week as we always do meme of the week gotta stay to the end to make sure you get the meme of the week of course this comes out every friday morning enjoy it with your morning cup of coffee the fastest way to download the week that was crypto inside of your brains we do this as quickly as

possible david we're gonna get in in one second but we have to mention it's badge week on bankless what happens on badge week badge week is where we give away a bunch of cool stuff to people that own bankless badges uh so if you are a premium member to the bankless newsletter you could have the bankless badge maybe you have one already and if you don't have one already you can go get yours uh and so go into your email and look uh look for an email from lucas banklesshq.com talking about how to redeem a bankless badge and then go do that if you want to get a bankless badge but you are not yet a premium member become a premium member and then at the first of the month the first of may you will get an email to redeem your bankless badge which then you can get

the bankless badge because the bankless badge is something that you want to own we're giving away baps these t-shirts that you see either me or ryan or sometimes both of us wearing every single weekly roll up as well as ether we are literally giving away ultra sound money i can't believe we're about to do that yeah and that's just indicative of how badly we want you to get your bankless badge your badge is an nft of course that is minted and settled on the ethereum blockchain so so check that out we want everyone who is eligible to grab the badge there'll be some links in the show note to you okay david you ready to get into the markets let's do it this is going to be the biggest market collection i think we've ever done this week all right let's do it markets let's

start with bitcoin as we always do how's bitcoin doing this week dude bitcoin is having some trouble bitcoin's having some trouble in the last uh let's see in the last 20 hours there have been two pretty large volatile spikes downwards down below 52 000 and it just had one right before uh we started recording just now bitcoin is at fifty three thousand and three hundred dollars where it and it's been down below fifty two thousand dollars twice in the last day or so uh so really just kind of holding on to the bottom of the 50 50 000 level some performance anxiety for bitcoin i've even seen some uh newsletter headlines or like news headlines coming out like oh is bitcoin going through

sort of a mini bear market but that's that's part of the story i think the other part of the story is actually the rest of the market in crypto is doing okay it's kind of hot so what we're seeing here what i'm looking at here is um bitcoin dominance as a percentage of total crypto market cap explain this one for us yeah so bitcoin dominance is if you take all of crypto assets and you get an aggregate market cap of i think somewhere where are we if you scroll up ryan where's that trillions my friends trillions multiple trillions multiple trillions yeah market cap and bitcoin is only right now at 54 of that it has been previously as high as uh almost 70 percent of all crypto market cap was just bitcoin and

now we have gone from the recent local high of 70 down to uh 54 and falling and what this means is that people are moving down the market cap stack right they're going risk on with crypto assets uh and and the bitcoin dominance has not been this low since 2018 and so we are back at 2018 levels of bitcoin dominance and this is this is traders like to refer to this as where an all-season indicator i know we don't like the term all-season it's not a very nuanced term but it's kind of just a way to categorize everything is that when when bitcoin dominance falls it because it's because people are working their way down the market cap stack and

speculating on lower cap tokens you know what i think dominance is going to fall further from here you know what what i'm often amazed at is over the long term how many things that um actually like people um get right i mean chris braninski basically predicted some of these macro cycles previously that every single cycle that we have bitcoin dominance is going to start at a um a lower high and then it's going to fall to a lower low from the previous cycle and if you look at this bitcoin dominance i mean it looks kind of like a version of fractal version of what happened in 2017 where bitcoin dominance went all the way down to like 30

ish i wouldn't be surprised david if we see lower lows in this cycle we'll have to see how that plays out but um that's my anticipation that we're going to continue to see this trend 2021 is 2017 all over again right and bitcoin dominance really to me is like the bitcoin maximalist index do you believe that there's going to be one asset to rule them all or do you think there's going to be a flourishing of many assets and part of my personal thesis about this base is that the erc20 token on ethereum democratizes access to making an asset just like the the gutenberg machine democratize access to printing newsletters uh the erc20 token on ethereum democratizes access to

making assets happen and then we are seeing this with daos we're seeing this with defy apps everyone is issuing a governance token like i think there's going to be a flourishing of assets and that's going to really push down the bitcoin dominance david do you know what a bitcoin maximus might say to this though is that this is like a a scam indicator basically yeah so when the market gets uh too hypey too hot too scammy bitcoin dominance tends to fall they're not what there's an element of that too uh as well there definitely are some projects that um are uh are very much vaporware that are pumping these days we'll get to that a little bit but let's talk about eth because it is doing something different directionally than bitcoin in that it's

going up yeah whereas bitcoin is testing local lows if ether is in its all-time high season and so we just recently as of today crossed over the 2600 mark we peaked out at roughly 6 000 or 2 650 took a little tumble in the last few hours down to 2 500 and now we are climbing back up to 2564 at the time of recording uh a nice performance by ether i expect continuation our bic our ether bull podcast that we recorded in like mid december has uh has been holding up pretty well and if you recall from that podcast we had three ether bulls on that was during more sober time so i encourage you to go back

in time and listen to those price predictions the low price prediction from eric connor was 2500 now we've passed eric's uh price prediction actually that was him predicting we had some other bulls on there who gave ranges i'm trying to recall i know anthony 10k and i think uh dc said 20k so we're in that range now striking distance yeah well not not immediately striking the tracking distance we are now above eric connor's uh price prediction so one day does this make you worried i mean eric's pretty pretty predictive and he's definitely a eth bull and we're above his his price predictions for the high you worried about this so this is the theme that i've noticed

so i i have three people in my life that are multi-cyclers where i and me me and anthony are just like one cycle or one cycle people is that a unicycle are you know where you unicyclers um and one thing i've noticed is the longer you've been in the space the more quickly you are to sell on the way up in this last cycle and at that at some point that makes more sense you have more life-changing money sooner and so there's no you don't really need to wait for the top of the market like how the unit cyclers might want to do that uh and so like it's interesting the longer you've been in this base the more you are selling sooner with lower price targets uh and eric eric has been in ethereum since day one and was in bitcoin before that and so that kind of

makes sense that trajectory makes sense um but you got some fiat goals you hit them you're gonna sell yeah exactly but 2 500 ether is just complete bearishness in my mind all right we're going up from here so david says this is a chart we don't usually talk about on the roll-ups but i think it's worth talking about this time is the eth bitcoin ratio um and maybe we should take a look at this on five years for five years this is the so first of all the news here is that it's up on the one year which means eth as a proportion of a bitcoin from a price perspective is going up so eth relative to bitcoin is up on two and one year x on the on the one

year yeah and this is i don't often look at this ratio but it's hanging out at 0.04 right now of bitcoin on the five year though it's pretty low because we hit almost like within flipping distance of bitcoin's market cap back in 2017 we're still low from that but it's it's the ratio is on the high like a two year or so high what do you make of this right and so a lot of traders are looking at the eth btc ratio because it is has made new highs in the same way that bitcoin has made new lows and bitcoin dominance since 2018 ether versus bitcoin is up new highs since bitcoin since 2018 and so that those are completely correlated uh and a lot of traders i know raoul paul

recently tweeted out a tweet about his tweet yeah right how he just thinks that he is he stares at the btc chart and sees um an enormous rounded bottom with potentially huge breakout just above and so what people are saying what people are looking at is the 2017 each btc ratio is where we might head to given an ether rally right in all in in bull markets people want tokens and all tokens are on ethereum and they need ether to do that and so the narrative is that people need to buy ether to play with the tokens this time's also different we also have the triple point asset thesis the ultrasound money thesis eip1559 the merge proof of stake all happening in the next like 12 months or so

and so there's definitely a growing amount of energy and momentum behind the eth btc ratio and right now as we are speaking the east btc ratio is pushing new highs again ever since 2018 we we have not been this high um since then so this means ether may be catching up to bitcoin's market cap it could also mean bitcoin going down as well while ether goes up which currently is happening right now yeah yeah which is currently happening right now and we haven't seen that in a long time so this does feel like it is a different season of the market okay let's talk about um what's locked in d5 so total locked value in d5 that dipped to around like 55 million i believe oh

excuse me billion now it's more recently bounced close to all-time high as anything here to talk about yeah i think all-time high is now 62 billion dollars we're currently sitting right below that uh so all-time high in in d5 pulse and something that's new this week in the d5 pulse index that's really exploding on the scene is liquidity uh no excuse me liquidy which is a new uh stablecoin uh project that is in uh offers zero percent interest on your borrowed stable coins and the way that they do this is pretty interesting instead of paying like a uh like how maker dow charges a stability fee which is a normal interest rate that gets charged over time uh liquidity offers zero percent interest fees but they charge you they charge you a percentage of your deposits upon deposit and i believe also uh retrieval

i think of your of your assets i need to clear uh clear up my details is this like collateral backed or is this collateral backed lusd is the new stable coin so die competitor um l usd and there's already 10 percent of all the eth that is in locked in defy is in liquidity and this is a brand new uh project brand new protocol this stuff is awesome like we talked about ride before and now liquidy uh here what's cool about this is this is very fit it very much fits the thesis that we've had for a while around ether being economic bandwidth for the rest of the ecosystem once you have a store of value that's trustless like ether on a network you can build other things on top of them like stable coins and that is exactly what's happening here so that thesis is

playing out um all right let's talk about defy because it seems like we're moving into each season maybe right what's what's d5 pulse doing right now the dpi is how we track that that once again is some of the top 12 13 or so d5 tokens this is uh just tracking them generally we're down a little bit so ethe up but well actually on the week where yeah no on the week we're down two yeah on the week we're down from a little over 550 dollars per dpi down to 480 dollars per dpi and i think that's because i think ether's very strong performance over the last two weeks is really scaring people who are perhaps overexposed to the app player and perhaps forgot about ultrasound money

how dare you forget about ultrasound money and that's what ether is telling a dpi is like perhaps perhaps ultrasound money is a place to be and you can definitely see this in the east dpi ratio as well okay well that's next uh it looks like ether is maybe sucking some of the oxygen out of the rim so this is the ratio that we look at on a weekly basis and that that ratio is down too right yeah it tr it did have a valiant effort for the last 10 days trying to hold that 0.2 uh ratio 0.2 eth per dpi but it has fallen down below that at 0.191 ether per dpi uh and perhaps it just continues to fall there i i'm not again not a trader not financial advice but

there will be a day where dpi versus eth rockets off of a floor it's just kind of a game of uh who wants to try and catch that knife uh who wants to play a little game of chicken but with a falling dpi ratio you know what's funny is we're not looking at some of the other assets in these in these ratios too right like so if you look at some of the the bnb pumps the binance chain pumps those are way up i think even relative to uh to defy tokens um and that's uh that that's not taken into account here but it definitely seems like ether is taking some of the the value auction out of the room for other d5 assets while we have some of these binance pumps going on we'll talk about that in a minute but let's talk about some

fundamentals of ether david because not only are we hitting all-time highs from a price perspective dude we're ether is crushing it uh the ethereum network and if ether as nasa is crushing it from a metrics perspective i'm going to just zip through four of these do this so um settling more transactions in q1 ethereum has 1.5 trillion in transactions then all of 2020 combined so 1.5 trillion transactions ethereum has settled in the first quarter of this year and that is like 3x on the quarter more than all of 2020 combined a crazy amount of settlement going on before you

move on to the next metric right this eerily reminds me of the coinbase uh volumes that they've did which is a very similar metric where all of q1 was more than all of 2020 uh so that's pretty cool correlation between ethereum the network and coinbase the company absolutely it all tends to rise together okay so ethereum exchange outflow this is a metric i'm particularly excited about but yeah it's coming out of exchanges so when it goes out of exchanges there's only one other place for it to go and that is on the ethereum network or on maybe a layer two that's secured by ethereum a lot of ether is going out of exchanges that means people are using it in defy maybe to back a stable coin

people are using it as a collateral base for loans people are just holding it inside of a bankless vault rather than a crypto bank which i think is pretty awesome as well this is another all-time high number of addresses holding at least one coin on ethereum hit an all-time high lastly i'll go to this uh nothing you'd see here says the poster only ethereum active addresses so every ethereum address is kind of like a bank account and ethereum active addresses have just about breached all-time highs as well pretty cool yeah i see you bankless listeners stacking that ether being more active ethereum nice job nice job absolutely it's important that we also

use these money systems we're not just stacking uh ether for the hell of it we're actually using these d5 money systems uh david speaking of using ether for economic resources this is ether being used to economically secure eth2 our friend justin drake just reported that there is 10 billion worth of ether being staked right now that's 4 million ether worth in supply which equates to 10 billion worth of stake that is the economic security for the future of the ethereum economy what what do you want to say about that and that is also how much ether is receiving eth rewards from the beacon chain uh and so

proof of stake alive and well for those who want to stake their ether this is crazy too i know we're going to talk about this a little bit but this is another tweet that justin put out and he actually linked a spreadsheet which i'm going to pull up where he is looking to estimate i believe what um returns will be for those who stake in ethereum post eip 1559 which is one part of kind of the ultrasound money thesis and then also post the um proof of stake merge where we no longer need proof of work did you catch some of did you catch some of these numbers here yeah there there are quite impressive and when you link together the rewards earned by validators which are both

ether issuance from the protocol but also tips and tips could actually be pretty substantial because tips is where minor extractable value gets captured and so you uh the only people receiving mev rewards are stakers and so you're receiving both issued ether and paid ether at the meantime ether is also being burned and so what justin drake's best guess is is staking apr which is the issuance plus fee rewards which is mev and transaction fees gets you 25 apy on your ether i mean this has to get arbitrage down over time but at genesis this is what justin drake thinks is going to be the staking rewards which is pretty pretty phenomenal yeah so that means if you stake rather

than receive the what six seven eight percent that you're receiving today you're actually receiving 25 percent in people as a reward right effectively when we also include what is being burned yes and that's going to encourage more people to stake which is going to in turn lock up more ether and this doesn't even take into account the supply issuance reduction that is coming with the merge so you get two things happen simultaneously you get these massive staking returns and then you get issuance slashed down from like four and a half percent all the way to one percent or maybe below maybe into the ultrasound territory where uh ether supply is being burnt like it's just this uh convergence almost like a

perfect storm of all of these bullish happenings at once i i don't think people like so how many tweets how many how many uh this got about 640 like i i don't know how many people understand this david like even our ultrasound money on youtube i was looking at this early in the week um 16 000 people have viewed it right and that's great right it's a two and a half hour episode i know it's like movie length right right but at the same time only 16 000 people have viewed it right how many people do you think understand what is about to happen to ether i think of of people that pay attention to this space and know ethereum one in 100 people really truly understand the ultrasound

money thesis and think about how many people out there in the world who's like oh yeah let's let's let's start thinking about crypto all right there's bitcoin there's this thing called ethereum there's litecoin these are all the same let's let's let's uh so let's allocate all dogecoin let's allocate all these things yeah so many people do not even know what this ultrasound money thesis is who are inside of ethereum and infinitely no more don't know what it is outside of ethereum that the ultrasound money thesis and what's being articulated by justin drake on his twitter and in that podcast is in my opinion the world's biggest alpha i can think of it's so massive it is it's available to you if you're listening right now if you're

paying attention yep absolutely uh so early on this let's let's talk about another thing that's early for ether day one of ether etfs at least in canada thirty three fc canada three of them that's crazy nice job canada three of them go canada three of them released on the same day i think one of these is from our friends at uh ether capital whom we had on the show in december but it's a pretty good volume on these ether etfs about one-fifth of the volume of what bitcoin did but now that there's an instrument uh i think more institutional investors at least canadians will pile in and of course if canada is doing it the u.s has got to follow along right look david i don't think that the u.s so

let me ask you if the u.s approves a bitcoin etf why the hell wouldn't they approve an ether etf at the exact same time right like they're both commodities now we've already got statements that they're both commodities we've already got plenty of conversation about ethereum-related topics in uh congress and other other other regulatory bodies if the bitcoin etf gets approved the ether etf comes within six months after it like and that's slow in my opinion maybe at the same time i don't know that's fast that's a hester pierce question all right last note here david before we leave markets is actually this bitcoin price plunge caused a lot of chaos in the markets at least short term a lot of

liquidations on some positions as well 7.6 billion in uh long positions were liquidated in one hour when it plunged down to 52 k what's going on here yeah this is also true for for ether as well where ether topped out at 25 25 000 a little bit above and then it and it fell to like almost below 2 000 in a very short amount of time bitcoin did something very similar and people were just leveraged probably perhaps people who are really bullish on the coinbase news really thought that there was going to be a flood of capital into this base afterwards so they took on a bunch of leverage funding rates were through the roof it cost you like 40 to 50 percent apy to borrow usdc from ava

and compound and that's because djinns were going leverage long and then there was there's a bunch of just like drama and debate and perhaps like a fake news tweet that really triggered a bunch of fear uh and as a result there was a cascading set of liquidations uh that really brought the crypto prices down uh very very quickly and liquidated the most amount of capital that has ever been liquidated ever in the crypto markets all in one hour and the cool thing is is that we bounce back from it pretty fast which means that there is capital that is being deployed to catch bids and those bids were caught and then we resumed the being bullish and so that's pretty cool and if you want to sleep at night of course don't take on excessive margin

you could be among those liquidations crypto is incredibly volatile of course crypto can always go faster and lower than you ever thought it could and so you need to account for that if you ever take on leverage that's right been through one of those cycles haven't we david yes we have we've done this before all right guys there's more to cover in releases we didn't get a chance to mention what doge and safe moon is doing but stay tuned for the meme of the week at the end of this episode and we will for now we want to thank the sponsors that made this episode possible bouncer is defy's most powerful automated market maker typical amms just have two tokens inside of one liquidity pool which can lead to fractured liquidity across the many pairs in d-pi with balancer you can

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releases the first one is pretty massive venmo paypal's venmo of course which is an app a banking app payment app that many uh people in the u.s all over the world have on their phones now allows users to buy and sell crypto i think bitcoin ether litecoin bitcoin cash are all supported assets 70 million customers david yeah that's here so much surface area with so many people and i even already got a message with uh with one of my friends who i told to buy ether back at two hundred dollars and he didn't listen to me and then now he's because it was hard probably probably because it was hard he didn't have an account like didn't believe in it like who who and this was before ethers pumped so who the hell am i to give financial advice to

this guy uh turns out it turns out it was right but but now he messaged me and he was like well should i just buy ether through venmo and i was like well yeah you could uh i think you perhaps are going to make your way into the world of defy at one point in time so that means you need a real exchange like paypal or gemini but if you want sure why not that's a great place to do it um and so venmo now is competing with the likes of robin hood which is kind of cool yeah pretty cool i don't think they allow uh transfers off of venmo or my incorrect about that so you don't really get your private keys they custody at all right and you can't you i don't think you can transfer it from account to account but i'm sure that that is

something that they are going to do because why wouldn't they they're a payment app what's crazy about this though is i don't know anyone around me who doesn't have venmo like everybody has venmo completely normalized so now crypto is like this kind of a headline in 2017 once again david would have been absolutely insane now here we are living it crypto is being adopted um david let's talk about this this is a new feature from block explorer ether scan etherscan is just so valuable man crazy how awesome it is it's like a like daily user of etherscan uh it's just an amazing tool for seeing everything that happens on ethereum now they are showing what's happening in the dark forest the mev dark forest what do i mean by dark forest dave and what are

they shown here right so mev is a very hot topic and we are in the works of making a mev panel happen kind of like an ama so stay tuned for that we're trying to get phil diane on as well as georgios and also perhaps charlie noyes currently in the works but maybe that maybe there's a panel and mev panel coming your way in the banquet's future and what's going on is that uh miners who want to compete to mine a block and also order those transactions in a block instead of having an on-chain gas war it's actually beneficial for them to actually just you know tuck some ease under the table and send it straight to the mining pool so the mining pool doesn't have to broadcast their transaction and while the that off-chain bidding war can be obfuscated that tip that is paid

directly to the mining pool to compensate the pool for mining the transaction without broadcasting it that that actually that part can be broadcasted and that is what ether is showing us they're showing you a what happened uh if there was a transaction that paid a a spark pool or another ethereum block miner mining pool if there is a tip being paid to them they will report that so you can know what is a mev transaction versus what's not i think there are a lot of challenges with mev it's also not all bad um but the best thing we can do with mev is make it visible is actually show it and um this is what ether scan is uh is attempting to do with at least a portion of it really cool stuff um alpha hamora that is a really interesting d5 protocol

we've we've talked about in the past they just did a v2 relaunch they've had some issues a couple months ago with kind of a security breach related to like something the iron bank i think we were we covered it then but this new v2 uh launch what's that going to include david yeah a bunch of cool cool upgrades and so there are now lp tokens as collateral unit swap v2 lp tokens perhaps also sushi lp tokens as well um uh you know yeah so unit swap the curve lp tokens sushi swap lp tokens balancer lp tokens are now collateral inside of of of alpha and so that's fantastic there's more interest-bearing tokens as well uh and so there are other assets that are uh created their

interest-bearing uh derivative of them that's what the alpha protocol does there's also protocol fees being paid to alpha stakers which i'm always a big fan of if we can get on-chain value flowing towards people that govern the protocols i always like to see that real verifiable flow of value to people that govern and then also there's even more assets to borrow inside of the ave or not ave alpha system so uh congrats to alpha for getting this out the door yeah i wonder have you looked at the the ibeth yields from alpha lately i mean not lately but i remember them being very very high above and beyond what people were getting on the beacon chain yeah and they had a large portion of eth locked up as well so that's another sort

of hungry eath money lego that is just like consuming economic bandwidth from ethereum yeah i'm also an eth hungry i'm not a money lego but i'm pretty hungry you're a human lego yeah that's also eat hungry all right let's talk about this one david so this is the um fourth protocol from ample fourth and um so ample fourth sort of a an elastic a price elastic uh not quite a stable coin but i guess it it's been trying to be a monetary asset of some sort inventory about rebasing is where rebasing came from ample forth exactly rebasing uh it's a little complex we don't have to get into all those details but if you've ever used ample forth in the past

ample fourth is releasing a fourth token so this is a governance token on top of april fourth you can connect your wallet if you've used ample fourth in the past you've ever held it and receive some fourth token it's a governance token it has value in uniswap and secondary markets um not to emphasize this look there's like air drops almost every week right and there's protocols spinning up governance protocols uh governance tokens almost like it's 2017 again so like i think what's interesting here is like i've used ample fourth in the past i know you have david right and so like what did you do with your ample fourth claim like what do you do when you

receive an airdrop from a token of some sort and you have some governance token to claim what's your process uh yeah so the only airdrop that i've kept is uniswap because i'm interested in being a governor of unit swap and every other airdrop i sold it for ether basically immediately so this was no exception no straight it was the amount of fourth tokens was e more than the gas that it would require to redeem and trade them and so i did that so there you go right so um i think this is going to be it's an interesting price catalyst for ether too it's like when these governance tokens are sold what will they be sold for will they be

sold for dollars i think in some cases in other cases they might just be sold for eth uh i did the same with the with a portion of my fourth airdrop thank you ample fourth um let's talk about this real world assets in maker dow we talked about this a little bit on the last roll up where they were being proposed now they are actually here what is this and what does it mean yeah there are so there is actually outstanding dye in the ethereum ecosystem backed by real world collateral and so that is just a groundbreaking achievement by the ethereum protocol at large but and also specifically maker dao and also with her partner centrifuge uh and so the collateral itself is a real

estate loan um and there's there's some clever engineering going into this but basically there's two ways to get a collateral on chain one is you mint a token that is redeemable for that collateral and another another way is you make it a trust in the nation state meet space and that trust does one thing and one thing only which is manage its own assets and then reports back to the protocol that it integrates with and that's the way that maker dao has decided to go and so nick kunkel who works at uh oracle's at maker dow wrote this tweet yesterday yesterday was a tectonic shift in finance maker dow is on the bleeding edge of standardizing how daos and the legal system will inter-interact to connect defy to tradify that's

traditional finance real world assets are here and it's a good sign of the growing maturity of defy and so if you don't want the oracle problem or the real world assets or real world to to digital world and integration is a very hard problem ethereum doesn't know what the outside world is the outside world doesn't know what ethereum is but ethereum doesn't know what the state of things is outside of ethereum and so getting real-world assets onto ethereum requires trust and this is a very hard problem that many uh teams just have just decided to not bother with and say you know f it we're only doing on-chain assets because doing off-chain assets is really really hard maker dao from day one has been going after hard problems uh they were the

first one pro team to really tackle oracle's which is also off chain data and now they are tackling real-world assets and so the fact there is real world assets backing die and die is outstanding in the ethereum ecosystem based off of real world assets is absolutely fantastic absolutely phenomenal and also it just unlocks trillions and trillions of dollars of potential david added to ethereum you used the term real world assets a number of times what are we talking about real world assets what assets real estate loans bonds uh corp corporate debts like uh your your car who knows like anything that has a real substantial value and a market for in the real world could in

theory become collateral inside of ethereum you know what's interesting is the most successful real-world asset right now is um is tether or usdc are these like staple coins right that's the first asset that's kind of leaked into the crypto space and blockchain and now we're starting to see other things uh leak into it so i mean the real estate market alone it's something like 200 trillion dollars out there and like it's insane property value seeing that migrate to uh crypto would be super interesting um all right david let's get to the news i think those were all of our releases let's talk about some ethereum stuff first so this was a major event we saw the third the first

gas block on the ethereum network that exceeded 13 million gas used and for people who don't actually know what that means david can you give us a quick primer on what this means and why this was the first yeah a the size of a block in denominated and gas is basically the size of a block denominated in data right and so you know bitcoin has the one megabyte hard cap and that's the size of a bitcoin block ethereum has 13 million gas and that is the size of an ethereum block uh and so the the the reason why we call it gas instead of data is outside of the scope of a weekly rollup but basically if you want more computation uh you need more gas and so the size of a block in ethereum is

really denoted by the gas used one of the really elegant things about ethereum is that miners can choose to vote up or down the block size the gas limit and rather than having a rigid and fixed block size like bitcoin ethereum has elected to have a a consensus by validators or consensus by miners mechanism where if miners think that we should increase block size then then they will all collectively vote for that and there is a game theory as to why you don't want two big blocks or two low blocks uh if you have two big blocks you uh there is an increased chance that multiple miners will make multiple blocks and one of them turns into ethereum and one of them turns into an

uncle with a reduced reward and so there's a there's an equilibrium behind how much or how high block size can go but what the takeaway is is that ethereum block size is allowed to increase up to a certain threshold so long that they that the network can handle that increased block size and so what happened is we went from 12 and a half million gas to 13 million gas which means ethereum got that much bigger in scale half a million more gas and scale and so we just increased the throughput of ethereum by a decent amount and the cool thing is is that it can always increase as a function of the underlying computational and bandwidth efficiency of the ethereum network at

large and so when we see a new higher gas limit what we are seeing is we are seeing an ethereum organically increase how much scale it has as a result of consensus by validators there you go guys on rollups not only do you get the news you get some tutorials sprinkled in there that was a gas tutorial from david hoffman as well and of course the gas that david is talking about like if you've ever done a transaction on ethereum you've consumed some gas so a transaction that takes a little gas example of that is if i send eth to someone else one uh each from one address to another dress that's the lowest lowest amount so lowest amount of gas lowest amount of compute lowest amount of david data as david said a little bit

more is sending a token a little bit more is doing a uniswap transaction and you can get increasingly you know complex and sophisticated uh you know compute transactions that consume more and more gas so gas went up that means the amount of trustless compute of the ethereum network went up so uh people are are wondering i bet at this point so okay are gas prices going to fall then we have more supply right guys gas price go down well that's not necessarily the case why is that not the case because people are just going to consume more of it right it's like oh there we go the price went down i'll just execute my transaction and then boom price goes back up my takeaway here though is that we are consuming more gas per unit time

which under eip1559 means more ether burned per unit time so bullish ooh bullish burn rate interesting i didn't think about that increasing the burn rate okay um let's talk about another really cool news item slash release this is from dharma big fans of dharma these days you know the problem they've sought they solved david is the problem of connecting your traditional bank your wells fargo your bank of america whatever if you live in the u.s you've got this bank account and you're multiple steps from getting it into the defy ecosystem so say i want to take advantage of wi-fi today and get

like 14 yield right which is what what why iron offers on usdc today well i'm multiple hopsable okay first i have to ach transfer to an exchange like gemini from gemini three days then from gemini i have to transfer that to metamask and then once it's on metamask i have to do a series of transactions to get myself into um to get myself into wi-fi and by the way i have to have eth in my wallet in order to pay for those transactions so it can't just be us dc or you know another stable coin asset anyway multiple steps just a complete pain what um what dharma solved is like this last mile problem so one click of the app and you can do as much as 25k a week

from your traditional bank account directly into a wiring or an ave and start earning yield so not only is it cool for i think like more advanced folks because there's a you know a ton of shortcuts here this is like a go-to tool for for newbies for those in retail who haven't had a first taste of of defy but like they know that their savings account sucks because they're getting basically no interest on it um so it's really cool now they're in 50 states um just big fan of what dharma is doing over there all these legacy platforms like sofi which will help you just like you know get a high interest savings account of one to two percent uh that's all gone comparison to dharma right like the one

drawback about dharma is that they can't solve the gas fee issue and so if you are it costs like i think two hundred dollars because the dharma's a smart contract wallet to make a trade on unit swap but if you can convince your friends to get beyond that you can show them like yo these yields these like 20 usdc yields on ethereum just download the dharma app just like you download the sofi app like go go liquidate all of your sofi assets go send them into dharma and get to get a much better yield and do it via dharma which is a place that they are familiar with an app on their phone legacy traditional finance people like apps on phones d5 power users probably use metamask and desktop dharma is now building out defy and getting it into people's hands where

they're comfortable with it so i expect a lot of cool things out of the dharma ecosystem in the future look man you know the only thing stopping like more adoption of this at this point david in my opinion news well i think that it's just gas fees yeah like you said right so imagine a dharma imagine an argent wallet on layer two right right like we've solved these fiat connectivity bank connectivity problems then the next thing we have to solve is is layer two and gas fees and then this is just gonna go absolutely crazy so i'm excited to see what they have in store there all right let's talk nft stuff pleaser dao you did you get into pleaser dao i am a member of pleaser dao i'm sorry what is your dad yeah i know

you are uh pleaser doubt is the dow that came together who uh wanted to buy people pleasers the artist people pleasers uh x times y equals k uniswap v3 announcement gif uh it was or a movie it was about uh 45 50 seconds long uh and it ended up going for half a million dollars uh and uh i was invited to get into pleaser dial before uh before bidding even started and i just didn't take the invite and then i hard fo mode about that i wrote i wrote an article about it put on bank list did some interviews put all that stuff up there and just yelling at the pleaser dallas let me in i want in and then pleaser dow let me in because they needed some more capital to purchase the edward

snowden nft uh and they once again pleaser dow got into a bidding war and spooked the hell out of the person that they were in a bidding war with because as they ran out of money more people sent money into the pleaser dao like me who needed because they needed the kappa doll and so uh police without literally ran out of money and then people came and sent more money into the dallas was it like a capital call they were like hey we want to do this thing but we need x more yeah yeah and so people reached out to friends and and uh one very generous individual came in with a bunch of eth uh and and sent it into the dow and then uh they won the bidding war against uh against whoever they were competing with and so now edward snowden has said the words congratulations

pleaser dao so he knows about the dao we've been trying to get him on bank list because now i'm a member of pleaser dao i am a fractional owner of the edward snowden nft so that's pretty cool and i hope that he kind of becomes uh wakes up to the world of uh permissionless censorship resistant money in addition to just censorship resistant press which i know edward snowden is a big fan of well that's that's what's cool about the story too is the proceeds from this nft don't go to edward snowden they go to this freedom of the press organization which is a non-profit that defends transparency in journalism and defends freedom of speech right so we've got like two sides of the same fight for freedom right like we've got this fight

for speech um you know the ability to to say what you want without uh censorship and also this fight for uh financial uh sovereignty and um the ability to not be locked out of the economic system um to have self-sovereignty over that and like it feels like it's two sides of the same coin and that coin is freedom so it does feel like there's a lot of common cause with with folks that are fighting for speech of which edward snowden is one i hope he goes deeper down the rabbit hole i've seen him talk about crypto before but not necessarily defy in a knowledgeable way like i don't know that he's used a d5 protocol this might be his first experience with defy right

yeah and i think if he read the tweets he should be clear that what what a dow is at this point if he doesn't even have the deepest understanding he should know that a collection of people bought his nft rather than one individual people and edward snowden i believe could could be labeled a populist because he's like by the people for the people type individual so perhaps that resonates with him it was bound to happen sometime david but while we're on nfts of course the adult industry has gotten into nfts as well looks like uh brazers is selling nfts at you know at this point only amount of time dude yeah so nfts are very democratizing uh technology and i actually do hope that brazers is not the entity that capitalizes on the

intersection is there an aggregator they're they're a middleman between uh adult entertainment and now perhaps nfts right uh and so if there's any adult listeners or adult entertaining listeners or adult performers or sex workers uh just know that you can use this technology yourself you don't need uh brazers to nft you you can just nftu but as we all know the porn industry really likes new technology and they tend to adopt at first basically out of necessity and so now i mean everyone's getting into nfts these days so maybe brazer is even late um but i do expect the world of adult entertainment and sex work to become a very big uh have a very large surface area integration with nfts do you think

nft season is over david are some of these like the top markers in your opinion uh i mean nft the recent nft season is over but the next nft season is like really close so just season one just season one right onto season two yeah on to season two yeah um all right let's talk we're in the break between seasons yeah yeah interim um let's talk bitcoin bitcoin mining hash rate dropped right this is something also and some people were linking this to the bitcoin price drop as well i'm like it's you know i don't know maybe you can make those links maybe not but for sure bitcoin's mining hash rate dropped as blackouts were instituted in china i i haven't followed this super closely but what like where did the blackouts come from

are these um actions by the government or is this kind of like you know natural causes or what where did the blackouts come from and what happened to a bitcoin hash rate here yeah this was a top-down choice for by the chinese government to implement a blackout well i don't know if we have um concrete details as to why there's speculation about a coal mining accident so there's just reduced ability to produce power but either way there was a elimination of electricity to a part of china and as a result of this 25 of bitcoin hash power dropped off the network and what this means is that 25 of bitcoin hash power is located under one single energy grid perhaps supplied

by one single energy source if that that to me spells fragility right that's not awesome the bitcoin blockchain is still going there's nothing wrong with it still produces blocks it has the difficulty adjustment it's just readjusted and now it keeps on going and blah blah blah blah doesn't matter 25 of bitcoin's computational capacity lives under one energy grid that to me is centralized fragility and that's not something that we want in our long-term blockchain now did it bounce back after that outage david uh no it's not back yet it has some i'm sure there are other asics that have turned on to help compensate but there's imagine just how much supply of asics are in that one zone that are still under the blackout this is nick carter um who is very data driven also a big proponent of of

proof-of-work some people he said said it was more like a forty to fifty percent drop this is false based on five days a day it looks like twenty five percent um but oh my god twenty five twenty five a quarter of your blockchain that's a lot like if it was fifty percent i would be freaking out right like um it was fifty percent that would mean fifty percent of the bitcoin hash power is located under one energy grid holy um this goes back to part of the the conversation from our ultrasound money podcast with with um justin drake there's so many so many hidden things there but one of them was uh the stealthiness of proof of stake compared to proof of work and it comes out kind of here right like you can see

the um the power footprint the energy consumption footprint on any electrical grid that bitcoin exists on so it's not very stealthy if there was a third party who wanted to take out some of that the bitcoin hash rate there are some key electrical grids that person could attack and probably accomplish that whereas proof of stake provides the ability to hide essentially there's not any profile that that's sitting out there on electricity grid and so could be a bit harder to shut down much harder it seems than something like this if you have decentralized validators all across the world that just look like regular everyday consumer laptop grade computers that are connecting to the

internet right and we just have to remember what this whole industry is this is a digital finance revolution right and it to me like there's no concrete connection here but to me something with a physical footprint in the world is not digital by definition what is digital is proof of stake where if your computer with that's running your node explodes your ether still exists and you can go get it and move it to a different computer your ether doesn't exist anywhere in the world therefore ethereum security doesn't actually exist anywhere in the physical world it only exists in the digital world and so there's there's no place of ethereum security there's no geographic place where ethereum finds its security unlike proof of work

david i still want to have that bankless debate podcast that's like proof of work on this side from somebody who can articulate the position and proof of stake on this side we've got to have that i feel like that that conversation needs to be had i don't know of any other bitcoiner who could do that other than nick carter mick carter if you're listening love to hear more from you on that subject okay uh let's talk about regulation there are two things maybe to talk about here and they're related the first is um gene carlo so the former chris christian carlo used to call him crypto dad actually because he worked at the cftc and was very pro crypto an advocate against like that what the scc was doing he has now joined the board of blockfi which of course is a

crypto bank that i've used in the past um you know based in the u.s uh they you can lend your crypto and they will offer interest rate um also we have this news that um brian brooks so he self-driving banks guy self-driving banks guy we've referenced that article in a number of podcasts office of the comptroller of currency under trump he left that position several months ago he's now going to become the ceo of binance us okay former regulator becoming on the board of a crypto bank another former regulator on the board of binance u.s both u.s based companies david it sounds like crypto banks are playing the

regulatory capture game they're getting their lobbyists they're getting their former regulators the same they're playing the same game that traditional banks play as well and other industries play as well this is regulatory capture i'm not necessarily saying it's like a bad thing that they shouldn't be doing this we definitely need some of that firepower but what does this say to you yeah i mean centralized crypto banks have are flushed with cash and they are ready to make moves like this i'm kind of bummed that brian brooks who coined the term uh self-driving banks ended up at not a self-driving bank ended up at a crypto bank um but uh again this is good for the industry because we have advocates for us now in the industry like we want

these people we want to integrate with these people who have influence with regulating bodies it also makes a ton of sense that binance as an entity and and like we can talk about the difference between binance u.s or non-binance u.s the global finance but at the end of the day it's one binance right it's it's one company uh and they really need regulatory protection because of all the nefarious things that they're doing that are extremely regulatory gray uh and so it's probably a very good defensive move for them to bring on brian brooks onto onto their board because they need that sort of like extra defense absolutely we're definitely seeing uh crypto sneak into the you know the the areas of of us uh regulatory i think that's a good thing

for the industry i just hope david that this is not where we end up with a bunch of crypto banks um who have kind of they have the regulatory support and they're basically just like the old banks uh that that we used to have hopefully we get to this self-driving bank concept with defy and are less reliant on these centralized intermediaries although they are a great bridge as we said before into the d5 landscape david we're going to be back with some takes i know we've got some hot ones this week but first we want to thank the sponsors that made this episode possible bankless is proud to be supported by uniswap uniswap is a new paradigm in asset exchange

infrastructure instead of a cumbersome order book system where trades are matched with other humans uniswap is an autonomous piece of software on ethereum which is what ryan and i call a money robot no human counterparties or centralized intermediaries just autonomous code on ethereum input the token you want to sell and receive the token you want to buy something brand new in the uni-swap ecosystem is the uniswap grants program is now accepting applications for grants we have been saying this for a while and we'll say it again dows have money and they are in need of labor if you think that you have something to contribute to the uniswap dow apply for a grant to uniswap just look at the size of the uniswap treasury it's almost 3 billion dollars this

mountain of capital is looking for labor do you have something of value to contribute to the uniswap dal no matter how big or small your idea is you can apply for a uni grant at unigramps.org and help steer unit swap in the direction that you think it should go that's exactly what we did to get uniswap to be a sponsor for bankless and you can do the same for your project thank you uniswap for sponsoring bankless gemini is the world's most trusted cryptocurrency exchange i've been a customer of gemiini since i first got into crypto in 2017 and it's been my main exchange of choice to make my crypto buys and sells gemini is available in all 50 states and in over 50 countries worldwide and on gemini there are markets for over 30 various

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time you can open up a free account in under three minutes at gemiini.com go bank list and if you trade more than 100 within the first 30 days after sign up you'll be gifted a free 15 bitcoin bonus check them out at gemini.com go bankless all right guys we are back with the hottest takes in crypto on the week the first is from arthur hayes is arthur hayes bullish on eve david yeah super super bullish as which is crazy because if you know arthur hayes arthur hayes is the ceo of bitmex who has been uh recently on the run for a while not quite on the run but just like not yet arrested by the authorities uh he was i think he did surrender to the

authorities and now he is awaiting trial or something i don't know meanwhile while he's awaiting trial he wrote this extremely bullish piece on ether and why he's so bullish on it which is in stark contrast to what he was talking about ether in 2017 where he called ether the mother of all coins a lot of people didn't believe in double digit double digits remember when we were dropping into like the 90s and 80s he just like kept at it man yeah arthur hayes uh has been called one of the most savage people in crypto uh and perhaps that's why he's uh under arrest or uh wherever awaiting trial um and and but he wrote this extremely bullish piece on ether and i think there's some perhaps some fun numbers in here but really the

takeaway is not necessarily the accuracy of the data but the complete 180 by a very influential influential individual from being an ether bear to an ether bull yeah what's interesting about arthur is this persona is very much i'm a prophet maximalist like he will make money no matter what market condition you're in and he'll support anything that maximizes profit liquidating his own customers blah blah blah yeah yeah i mean at the time um trashing ether like was it that was a profitable uh move like short ether and by the way short ether on bitmax because then i'll make money while you make money it sounds great so i'm going to push that narrative well now he's flipping on that which is super interesting but he's

always been what he's always been which is kind of a traitor profit maximalist at heart i actually read everything he writes because he's actually a fantastic writer too and it's a really interesting perspective but i want to just show off like this in the article dude so he was doing he was trying to model the uh price the the fair market value of ether as an asset based on it being a capital asset based on its ability to continue to create like to produce transaction fees right we've talked about in the triple point asset thesis how ether is a store of value how ether is a commodity you know for gas how it's a capital asset throw those first two out he's not even talking about ether as a store of value

he doesn't necessarily believe that he's not talking about it as a commodity who cares he's talking about its raw ability to be a capital asset to produce um you know transaction fees and revenue on the platform and he's getting to a market cap and this is based on the percent of the percent of of of traditional finance that defy actually captures right so it's a very rough proxy here um but he gets to an eth price david of not 20 000 that's only if it captures half a percent of the world's traditional finance but all the way the top if it captures all of traditional finance a four million dollar price of eth right

this is under the conditions where ethereum is the economy so when we when we say like oh the economy people are just talking about ethereum there's literally everything settled zero economic activity that is not on ethereum which we are not at all close to uh maybe one day when i am at a boomer age that is when that happens um but arthur hayes decided to model this out and he said what happens if ethereum is economy then ether should be worth four million dollars which is just absolutely insane and he goes down so if it's if it's one percent of the economy then ether should be worth forty thousand dollars that starts to be a little bit more reasonable i can get behind it's just like i don't understand i would have never thought that going into 2020 we would have seen an article on uh ether

that would be more bullish than anything we've ever published on bank list like this is this is crazy to me but it's uh interesting flipping nonetheless yeah ryan we got it we got to get more bullish we're getting outdone by i can't i can't do that man four million dollar price of ether what does that even mean that means like fiat has gone down the toilet that means something else let's talk about this um this is vance spencer okay so why don't you take this this is coinbase in five years what does coinbase in five years look like hypothetically yeah so van spencer before i get into his take he is a d5 bull he did one of our best performing podcasts ever which is the bull case for defy and so vance is coming at what coinbase could look like from a d5 first

perspective perhaps not from a crypto bank perspective and so here's his take uh here's what coinbase is in five years probably no order book trades are routed to open source liquidity where they lp where they provide liquidity uh and then they focus coinbase focuses on front end slash regulatory staking slash custody and then they earn most of their income from lping and staking the native tokens of dexes and then coinbase just primarily serves as a wallet for users and then vance uh characterizes this as a asset light version of coinbase a light on assets heavy on just interactions with customers kind of just like a defy mullet phenomenon where coinbase just provides the custody and the interface

and then everyone else just you and it all it does is a one massive dex aggregator for all of ethereum um i don't think we we asked uh our our state of the nation guest uh jeff dorman if he thinks that this is the direction of coinbase and he gave a very different one but i think it's a a good thought experiment a good mental model for what could be this is almost a d5 maximalist take on what coinbase will evolve to in the future and i think uh david the truth might be somewhat in the middle here but i do think that what vance is talking about a lot of this absolutely could come true especially if defy itself at the protocol layer if the protocol sync thesis pans out and d5 protocols like uniswap and ave and compound and all of these like trustless

primitives at the base layer if they attract the most liquidity then you know crypto banks will have to essentially tap into these liquidity sources in order to maintain uh you know in order to be competitive and in that world they just serve as sort of a fiat bridge um i don't know that will get there i do think that there's a lot of juice to squeeze in just the custody side and if you've seen like you know coinbase's assets under management it continues to increase and i think a lot of people still um want the easy button and will trust the the custody of coinbase uh and like coinbase will create a lot of other offerings that are independent and more competitive with with d5 so

maybe some of the truth in the middle but i think that vision is super interesting yep agreed binance is a short-term game let's talk about why binance at least binance chain itself not the exchange necessarily is a short-term game here's some numbers to back it up david what are we looking at right so this is actually really convenient that we are talking about this right after we gave our little lesson on gas earlier and so what we are looking at is bsc scan which is already a fork of ether scan just like how binance marching is a fork of the evm and geth which is ethereum's first client uh binance gain scan this is a fork of ether scan so really nothing original going on here but we are looking at the uh gas limit for binance

smart chain and we saw we saw the gas limit for for the ethereum at 13 million gas which is its all-time high took forever to get there finance smart chain just went from 30 million gas where it's been already insanely high all the way up to 45 million gas and that's if you're wondering why the binance smartchain is free almost free and cheap and instant it's because they have so much more so massive block sizes and there's a reason why we can't just increase block sizes because if our block sizes get too big then we have a more centralized network we already have a super centralized network in binance smart chain with only 21 nodes but the thing is is that if you increase the gas how much data that is going through the

chain per time you increase the total size of binance smart chain really really quickly and so right now binance is putting on like terabytes every month or so which is too big too big to be centralized we already know that they are willing to give up centralization but at some point the blockchain actually collapses because there's no block propagation because no one can keep up with the chain and so if you are thinking that binance smartchain is a blockchain it's not at some point this this blockchain is going to get too big and if they want it to continue they're going to have to checkpoint it which is basically like a save game delete all of the history and then move forward from that point if they want their blockchain to continue and at that

point again the whole inevitable question about binance marching is why don't why just you just do it on the website just do it on your database just have one node it's easier if you just have one node very very well said david so much of this is like decentralized theater in in finance land i've had people tweet at me when i when we talk about this sort of thing just saying things like well yes binance chain is is centralized now but it's going to become more decentralized in the future no it's not guys i mean this is like a pipe dream we are going the opposite direction there's no physical way it can become more decentralized because the hardware required to actually run the chain and be validating the node is just increasing at an exponential rate and to

your point where this maybe at some point this whole thing collapses in on itself oh say two things it's already at 58 million that chart was old we said it's we said it topped out at 45 million no it's at 58 million wow okay this oh is does it keep on going is there another one below it well uh yeah i don't know it's of course it's going to keep on going you know as people know people demand this is average um gas limit change okay yeah so so so two things one we've seen this play out already it played out in 2017 2018 with a chain called eos and pretty soon no one could run it aside from the largest validators multiple terabytes in size um chain analytics companies like coinmetrics could barely run the thing in order to

extract the data and that's their job massive centralization yeah that's their job okay so that's that's one um the second is here's the developer david of geth the thing that binance chain like forked and took here's the guy that actually engineered it peter um he said i don't want to wish ill on anyone but binance chain is pushing their chain harder than what he thinks geth the client that he helped build can handle it's nice when the chain is empty but once you pile enough data uh geth is going to reach its limits the thing's going to collapse the thing's going to explode right so look we don't say this type of thing david because we hate binance chain right or because we're like maximalist for any chain like if i'm a maximalist david if you're a maximalist we are

bankless maximalists we're about decentralization and truly self-sovereign money systems and what's happening on binance chain i'm just going to be honest with everyone like it's not sustainable it's not going to work it's business it's already running out this is a classic short-term game and the the only beneficiary of the short-term game are people in the short run uh probably a small percent that own bnb token right um so this is why i'm not a fan of binance chain you're not a fan of binance chain it's about long-term games we're building something for the future future generations we're not building something that can only last like months and years and pumps and then dumps and like retail is left picking up all the scraps uh

their rant over we get a lot of flack sometimes because we talk a lot about ethereum because we both think ethereum is really really cool and people are like well why don't you talk about cardano why don't you talk about binance marching ethereum's got high fees it's it's it's killing me on the fees but buying a smart chain is serving our needs the reason why we don't talk about those things that much is because we've seen this before we've already seen this play out with eos right and cardano is seven years old or something and doesn't have an app player yet and so like some of these things like we have already seen come and go and sometimes you just need to be in crypto for a full cycle to really comprehend and understand it and i feel like that's a big difference between listeners who have bank lists who are

confused as to why we don't appreciate binance smart chain and those who have been in ethereum for more than one cycle people who have been in crypto for more than one cycle don't aren't confused about these things it's complicated to learn it takes a while it took me a while i was convinced by the eos narrative back in 2017. i literally bought eos as a hedge in case eos was the the thing that happened and then in hindsight i was like oh well that was dumb um but it just took me a while to learn that and i think that people are going it's going to take perhaps not actually that long for people to learn that about binance smart chain because they are just growing their state way too large um but we'll see what clever engineering cz cooks up to to route around this at the end of the day uh

it's it's an open secret that cz made binance marching because he knew defy was going to come eat his lunch which from a business profit maximum perspective is probably a good move yeah absolutely david uh brace yourself man you're going to get a lot of reaction on twitter for some of those takes did you see the reaction that i got on twitter when i when i said uh perhaps cardano is a blatant scam on the wolf of wall street podcast because that's already happening yeah i did look i did right so um scam is an interesting word choice first of all i'll say that but i agree with oh okay well then i'm fine with it i mean possibly so it but but here's the thing where i saw a lot of that reaction and like i know both you and i are keen observers of crypto communities to see

what's really there and theirs like there's so many bots in in these these community armies right there's bots and then there are like i'll just call it like route retail moon boys like people who are just about the price and will not like debate you on the merits of of anything they don't know why they bought they just know they bought and then price went up so they've doubled down on their conviction um a lot of these communities are fairly hollow and cardano proved me otherwise but i'm not sure like from a community perspective if there's a lot there but definitely i think we both keep an open mind on some of this oh you're pulling up a tweet this is a tweet i tweeted about the compilation of communities when there's 20 moon kids 79 boss and 1

puppeteers getting rich your community has a problem and i think there are some communities like that out there that's why you know we just try to call it like it is on bagless um let's talk about this one this is a good thread on our slash ethereum give a man a steak and he'll eat for a day teach a man to steak and he eats forever what's the lesson here right and so we all know the metaphor teach a man to fish first give a man a fish and basically what my takeaway here is that if you give someone some eath they'll spend it over time but if you give some man an eath and teach them how to stake it they'll have steak for the rest of their life and that's the whole promise of proof of stake you put your eth principle up and

then you can just live off the dividends and this has been my game plan since getting into crypto from day one i was like oh man geez proof of stake if i buy enough ether i can just live off of the dividends that has been my plan since day one still my plan eyes on the prize i am trying to teach the world through bank list that's what we're trying to do to teach people how to stake so they can live off of their dividends and experience financial freedom and do the things that they enjoy and improve their lives and the lives of those around them if they p if they teach people how to stake and i i love this i love this takeaway so uh thanks to georgie on our ethereum are you never cell gang are you part of the never sell club uh i'm

definitely gonna try and sell the top but not with my whole stack absolutely not with my whole stack um and so i'll try and sell the top a little bit but there's definitely a very healthy proportion of my stack like two-thirds of it that it will be an in the never sell category for sure if you don't need the money why not stake that's what a productive asset gives you i think it's a fantastic point that uh again if you realize um let's talk about this three halvings capital this is from um yeah so what is what is three having's capital what's this a play on yeah it's a play on three arrows capital which is the the very famous market moving uh capital firm between zoo and uh kyle davies kind of known as three chad's capital as well

uh and so he's a retweeting a tweet from that that everyone in the ethereum ecosystem really really liked and i think we should go through this tweet as well so let's start at the top this is from squish chaos interesting name and he says he or she says net annual buying pressure in quotes doesn't make the point in a habiting event btc minor cell pressure drops 50 percent it causes all hell to break loose amongst the bitcoiners and then he asks the question what does that look like for eth and so what this is saying is that bitcoiners rally around the habiting it's like a four-year ceremony of a happening and the reason why bitcoiners rally around the happening is because that means that miners are receiving half as much ether therefore or bitcoin therefore they can only sell half as

much bitcoin which makes bitcoin more scarce and the same phenomenon is happening under proof of stake where instead of issuing 4.5 percent of ether supply per year it drops down to perhaps just one percent uh and so this is where this uh triple happening comes in this three happening because we are uh speed running bitcoin happenings by proof of stake where uh we we are going from uh we are cutting issuance down to roughly 12 and a half percent of previous issuance uh and so continuing the squish the uh chaos thread he says or she says post merge cell pressure will drop by 90 for btc cell pressure to reduce by that much it takes three halvenings i'll

repeat ether will undergo the equivalent of three halving events in the next 12 months uh and so if if bitcoiners just get over them over the moon about every happening that comes this is why ethereans are so incredibly stoked about proof of stake and the merge and that's not even including about ether burn because of how much supply reduction is going to happen as a result of staking awesome this is all riffs on the same thing that we've been talking about eath as ultrasound money these are all different ways to view it all different ways to say it and as we made in the comment earlier i feel like the market does not appreciate this very few people understand this at this point all right

david let's get to excitement time what are you excited about this week uh continuing on that same line of reasoning i'm excited about the triple point asset finally being priced in i think that's perhaps what we are seeing right now in this east outperforming basically most other assets except for dogecoin the triple point asset i think is becoming priced in uh that's what people are understanding when they say uh a three happenings all at once that's what people talk about when they say the ether burn rate makes ether uh deflationary from eip1559 and we already touched on this we just touched on those two things and we also touched on how staking rewards can be 25 apy denominated in east turns at genesis of

the merge which is the ether capital asset people are finally understanding the ether the triple point asset thesis it took them a year and a half it's been a year and a half since since i did that uh that presentation in tel aviv and then put out the article in bankless um and so those who have been paying attention to bank list for the last year and a half you've known this is coming congratulations hopefully you're among the early few um but finally i think we're seeing the early days of the rotation into ether the asset because the ether the triple point asset is finally being understood and integrated by the rest of the market absolutely man yeah it you know my the thing i'm excited about kind of does a riff off of yours so let me just

say that to kind of uh round out your thought there is it just it feels really great when a plan comes together right like i feel like um when you put ideas out there and like we don't get everything right let's let's just be completely clear there are things that we miss there are things that we get wrong we don't get everything right but some of the big ideas that we've put out there as part of the bankless platform are starting to work out like it feels like they are more certain now much more certain now than when we first published them and we didn't really know if if they were going to happen or not so triple point asset is one of those so is the entire bankless thesis this idea that we are on the brink of creating this new parallel self-sovereign money

stack like defy has worked out david three years ago it wasn't obvious that any of these things were going to work and now here we are in the very start of product market fit for d5 and now it just has to hit the accelerator and scale another thing we talked about idea we've talked about so much is the protocol sync thesis right with with crypto banks and like traditional banks having to use the most trustless and permissionless protocols available to them whether that's a settlement stack like ethereum or whether that's a d5 protocol like uniswap and ave that's starting to happen as well protocol sync thesis like the fact that uniswap has exceeded the

volume of coinbase sometime multiple times in the last 12 months that is protocol sync thesis playing out d5 mullet is another idea that we've talked about uh ultrasound money now is a more recent uh narrative that we've just used to describe what is happening with the three happenings you were just talking about with the with ether coming up all of this is and we've also talked about almost every single one of these inside of this weekly roll up if we wanted to we could go back to the the van spencer coinbase take and say that's the d5 mullet dharma that's the define mullet yeah and i don't want to like look i i don't think i don't want to pat ourselves on the back because not just bankless david does but like a lot of like to be fair there are there are many other people who have gotten this right

but it's just cool to see uh a plan working out it's cool to see that that directionally this thing that we weren't too sure of like we think this is how it's going to play out is actually playing out like for all of the things that we've gotten wrong we have gotten some things wrong the big things i feel like we've gotten right and this 2020 run so far and everything that's happened whether it's price or whether it's news and other things have been evidence of that so i'm just excited and more than that look not just excited i'm like i'm like grateful i'm like grateful to be in crypto sense of relief at this time well yeah yeah could have been real wrong on this could have led a lot of people like down the wrong path uh could be four

years into bank list and be like you guys the triple point asset i swear it's coming it's coming one day this thing is gonna be real big trust me anyway um i'm just grateful to be here and that's the thing is uh the last thing i'll say on this is there is a tendency during bull runs to look around at the crypto portfolios around you and like compared to other people right like there's always somebody who has gotten in earlier than you have right but comparison is the thief of joy that's absolutely true in crypto you're here you're early you're among the first like one percent who knows this you're among the first like i don't know fraction of one percent some tiny fraction of one percent in the world who know about ether uh as an

asset like be grateful for that i'm grateful for that it's awesome to be here this community is great um just really excited about the future and uh and grateful yeah and that so don't yeah go ahead and perhaps a time bow on that that's a good reminder that don't mess up a good thing and on the bankless newsletter on monday we talked about uh traps that people fall into and a lot of it had to do with people fomoing because perhaps perhaps you the listener just got into the bankless podcast or crypto at large in the last few months and you're like oh my god i'm so behind on everything everyone knows more than me and by definition if you're just getting into crypto you don't know anything you have to come in with a blank slate an open mind and you feel like you're

behind and i felt this in 2017 i'm like oh my god there's so much technology i don't know about like oh i'm not going to make it blah blah blah if you understand ether as ultrasound money you are in the 0.1 of the people that know about ethereum well maybe not know about crypto that understand ether's ultrasound money you don't have to play with leverage you don't have to get out over your bootstraps you don't have to risk your rent money you just need to be responsible and the ether will do the rest responsible and then be patient guys and patients absolutely well said david all right let's get to it man moment the moment we've been waiting for name of the meme of the week game of the week you want to explain this one let's do it uh well so this is your this is your uh

your uh meme but if you want me to explain it i will happily do that this is uh a favorite movie of mine uh i think this is the first spider-man tobey maguire and uh kirsten dunst uh um and so it's three panels here we go um and kristen dunst is turning to toby wiry and goes tell me the truth i'm ready to hear it uh and oh no this is the third spider-man where toby maguire tells kristen dunst that he's spider-man i think anyways uh kristen dunn says to sp to toby maguire tell me the truth i'm ready to hear it and toby maguire says back to chris and dunce and says it takes more than 15 seconds of a tick-tock video to understand the crypto asset you just bought and then the panel goes back to kristen dunst and she's just crying of tears of sadness

you made this meme ryan it's a fantastic meme nice job but what does it mean i just i just feel like some people needed to hear that this week especially with like um all of these assets on tick tock pumping and you know i almost feel like um i almost feel like a like an elite baby boomer has never heard of crypto because i don't even what are some of these assets like um safe mood safe moves what is safe moon it's clearly something that's going to moon safely of course ryan it's in the title i get texts and people asking questions about like safe moon and i have no idea what's happening like here's the lesson here and this is a lesson for everybody who um before they invest like you can't

possibly learn about an asset class and have conviction in what you're buying in like a 15 second tick tock video right so just because some influencer is showing it just because you like the memes do you know actually what you're buying if you're new to crypto my encouragement is you just you buy bitcoin you buy ether and nothing else until you understand what you just bought and why start there be patient like we can't we can't be a tick-tock investing generation i'm not saying like i love i love twitter i love tic toc for meme propagation these sorts of things but don't think you can possibly understand a trans uh like something you just

bought with um you know somebody sharing like a 15 second video and there's a lot of that going on right now uh and um look i know that's nobody listening to bank list does that message is not for the people listening but it's it's happening and people need to stop doing it if anyone knows a tick tocker that can explain a crypto asset in 15 seconds let us know because we want them on our team but i'm highly skeptical that anyone can actually do that again tick tock is fun and but it's really just just like you said and there's a reason why like people are explaining when i my opinions less quality assets all the way down to complete outright scams like safe moon because you they don't want you to explain the truth they just want you to

buy the token and so of course they go to tick tock where memes are literally it's the breeding grounds of memes that there's a complete product market fit between pumpamento tokens and tick-tock but do you know what throws people david is unless you spend the time like you and i meme all the time too ethan's money right people who have no idea they hear that and then then they hear doge's money doge's ultrasound money finance is ethereum finance is the future of finance all these things and if you're only spending 15 seconds on it right those things sound exactly alike right the thing that that we just say with conviction because we know why because we have hours years of like yeah yep and we have hours of podcasts

and we have like all of this information and data backing it at a 15 second like tweet sized um tick tock sized format it sounds exactly the same so yep don't do anything in the space until you know what you're doing until you know what you're buying that's the that's the meme that's the lesson here uh i remember uh earlier this week my uh my cousin was texting me about uh crypto assets that that uh he should get into and he was like well do you know chain link and i'm like yeah i know chain link he's like well what about doge should i get into doge i'm like no just bitcoin and ether start there just those two and they're like so boring now and then they're like what about cardano and i'm like just bitcoin and ether and like well what about this bnb token i'm like just

bitcoin and ether and then they just kept on going like what about all these at some point people just like tokens like tokens are product market fit people like to play with tokens and they don't want to hear this boomer advice of just like just the top two assets and nothing else because they don't understand they don't understand and because short term you're probably wrong david that's true that's true i'm ready to i'm ready to take that one absolutely all right guys well i hope you've enjoyed the roll up hope this got you up to speed dave and i always have a fantastic time doing it of course none of this is financial advice make your own decisions with respect to crypto but this is the journey west it's not for everyone we're glad you're with us on the bankless journey thanks a lot hey we hope you enjoyed the video if you

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