Podcast Summary
Managing Crypto Assets with Zerion and Monolith: Zerion and Monolith are top DeFi platforms for managing crypto assets, accessing yield opportunities, and even buying crypto directly. Zerion offers portfolio management, investment opportunities, and asset exchange, while Monolith functions as a smart contract wallet with yield access and real-world purchasing options.
Zerion and Monolith are leading platforms in the DeFi space, offering users a comprehensive solution for managing their crypto assets, accessing yield opportunities, and even buying crypto directly. Zerion serves as a home base for managing DeFi investments, providing portfolio performance reports, asset breakdowns, and transaction history. It also allows users to invest in DeFi opportunities and exchange assets with the best rates. Monolith, on the other hand, functions as a smart contract wallet with features like adding funds, yield access, and swapping through Uniswap. Monolith also offers a Visa card connected to the wallet, allowing users to live a bankless life while still making real-world purchases. Both platforms are constantly evolving, with Monolith already offering direct buying from bank accounts and Zerion soon allowing mobile buying and selling. Tune in to the State of the Nation podcast to learn more about the current bull market and the unique aspects of this crypto market cycle from experts like Nick Carter.
Exploring the Identity of Bitcoiners and Ethereum Community's Triumph: Bitcoiners and Ethereum enthusiasts celebrated triumphs in their respective communities, with Bitcoin reaching all-time high market caps and Ethereum successfully reaching Ether deposits for the beacon chain. The conversations highlighted the growing recognition and excitement within the crypto space.
The hosts of the Bankless podcast had an engaging and informative conversation about the current state of the crypto world, focusing on Bitcoin and Ethereum. Meltem Demirors brought data and insights, leading to a discussion about the identity of Bitcoiners and the potential creation of digital nations. Ethereum's community rallied together to reach the required Ether deposits for the beacon chain, resulting in a sense of triumph and unity within the Ethereum community. Simultaneously, the Bitcoin community was also experiencing triumph with all-time high market caps and increasing institutional recognition. The podcast also announced upcoming episodes with Balaji Srinivasan and discussed Black Friday deals, including a significant discount on Ledger wallets. Overall, the conversation showcased the excitement and progress within the crypto space.
Bitcoin's dominance as leading crypto store of value asset declining: Despite Bitcoin's all-time highs and mainstream adoption, its dominance is decreasing, requiring a well-rounded understanding for successful HODLing
While Bitcoin's all-time highs and mainstream adoption are reasons for celebration within the community, it's important to note that Bitcoin's dominance as the leading crypto store of value asset is currently declining. This means that Bitcoin maximalists, who believe all other tokens will go to 0, may not be entirely triumphant. However, Nick Carter, general partner at Castle Islands Ventures and co-founder of Coinmetrics, argues that this bull market is different due to the emergence of a new cohort of pundits bringing diverse opinions about Bitcoin to the table. Despite some backlash from the community after a Bloomberg interview, Carter maintains his long-term bullishness on Bitcoin for reasons beyond the halving or supply schedule. He emphasizes the importance of having a well-rounded understanding of Bitcoin to be a successful HODLer.
Factors fueling the Bitcoin bull run: The bull run is driven by the growing number of Bitcoin holders, distribution to smaller addresses, and financial infrastructure development.
The current bull run in Bitcoin is driven by a number of external factors or demand-side metrics, making it a credible and justified trend. These factors include the increasing number of Bitcoin holders, the distribution of Bitcoin to smaller addresses, and the development of financial infrastructure. The author of the article argues that these reasons should not be overlooked and that they provide good reasons for the bull market's return. Additionally, the speaker expresses his disagreement with certain opinions that have become orthodox in the Bitcoin community, such as the stock-to-flow model, which he believes is not a valid way to approach understanding Bitcoin. The speaker emphasizes that Bitcoinism should be more about political objectives and not mathematical models. Overall, the bull run is significant due to the increasing adoption and distribution of Bitcoin, making it a promising investment and a viable new monetary system.
Dispersion metrics and open interest in CME Bitcoin futures crucial for crypto networks: Dispersion metrics show network health, while open interest attracts institutions, increasing market liquidity and affecting Bitcoin's spot price.
Dispersion metrics and open interest in the CME Bitcoin futures are crucial indicators for the growth and legitimacy of crypto networks aiming to become global money. Dispersion metrics reveal the health and stability of a network, while open interest in the CME Bitcoin futures attracts institutional investors and increases market liquidity. The CME, being deeply intertwined with established financial plumbing, provides a level of trust and security that attracts large hedge funds and asset managers, ultimately affecting the spot price of Bitcoin. The increasing attention from institutions, as seen with the announcements from Renaissance Technologies and BlackRock, is a positive sign for the crypto market and the prospects of a Bitcoin ETF. The regulatory crackdown on offshore exchanges and the growth of US-regulated markets, such as the CME, also increases the competitiveness of these markets and makes them more appealing to institutions.
Bitcoin's Bull Run: New Records and Growing Wealth: The Bitcoin bull run continues, with potential new all-time highs due to an ETF launch and increasing wealth storage. Indicators like realized cap and options open interest show continued growth.
The current Bitcoin bull run could surpass previous records, with the launch of a Bitcoin ETF potentially marking new all-time highs. Realized capitalization, a metric measuring the value of each Bitcoin at the time of last trade, indicates that more wealth is being stored in Bitcoin than ever before. Bitcoin options open interest, a measure of outstanding contracts, allows for more creative ways to express market opinions and hedge risks, especially for miners. The Turkish lira's currency crisis has led to a booming Bitcoin market in Turkey, with Bitcoin already surpassing its all-time high in that market. These indicators suggest that the current bull run has further room for growth and may not be at the extremes seen in 2017.
Cryptocurrencies act as 'apex predator' in countries with weak currencies: Cryptocurrencies like Bitcoin are increasingly popular in countries with weak currencies, absorbing them and potentially weakening sovereign currencies further. Infrastructure like stablecoins makes it easier to use and trade dollars globally.
Bitcoin and other cryptocurrencies are gaining popularity in countries with weak and inflationary currencies, acting as a "apex predator" that absorbs these currencies. Turkey is a notable example, with its sophisticated Bitcoin exchanges and cultural affinity for storing value outside the traditional banking system. The proliferation of crypto infrastructure, including stablecoins like USDC, is accelerating this trend by making it easier to use and trade dollars around the world. A recent example is Circle's partnership with Venezuela's opposition government to distribute USDC and bypass capital controls. Despite the controversy, this represents a new form of dollarization that could potentially weaken sovereign currencies further. However, there are challenges to fully adopting digital currencies, such as the need for local liquidity and physical dollar conversion.
Decentralized finance and stablecoins in Venezuela: Stablecoins and DeFi offer alternatives for financially restricted individuals and countries, but success relies on local merchant adoption and availability of uncontrollable currencies like Bitcoin or Ether. Rapid institutional investment in Bitcoin is limiting its availability and contributing to price volatility.
The use of stablecoins and decentralized finance (DeFi) solutions can provide alternatives for individuals and countries facing financial restrictions, such as those in Venezuela. However, the success of these systems relies on local merchant adoption and the availability of neutral, uncontrollable currencies like Bitcoin or Ether. The current situation in Venezuela highlights the potential benefits and challenges of decentralized financial systems, as well as the potential role of stablecoins and non-sovereign currencies in bypassing traditional financial controls. Another notable point is the rapid growth of Bitcoin investment vehicles like Grayscale, which is absorbing large amounts of Bitcoin and limiting its availability on exchanges. This trend is contributing to the price volatility of Bitcoin during business hours, as institutional investors and intermediaries become more active in the market. Overall, the discussion highlights the complex interplay between traditional and decentralized financial systems, and the potential implications for individuals, governments, and financial markets as a whole.
Institutional participation and improved infrastructure drive current Bitcoin bull market: Institutions like pension funds, endowments, and sovereign wealth funds invest in Bitcoin, increasing social acceptability among high net worth individuals. Improved infrastructure, including credit availability for arbitrage firms, makes markets more liquid and integrated.
The current Bitcoin bull market is different from the one in 2017 due to the increased participation of institutions and the improved infrastructure that supports their entry into the market. Institutions such as pension funds, endowments, and even sovereign wealth funds are now investing in Bitcoin through various means, and the social acceptability of holding Bitcoin among high net worth individuals and family offices has significantly increased. Additionally, the availability of credit to arbitrage and market making firms has made crypto markets more liquid and integrated than ever before. This infrastructure was largely absent in 2017, and the industry's ability to absorb capital from a wider range of participants has been a major driver of the current bull market. The growth of stablecoins, settlement networks, and crypto at native credits are also significant developments in the crypto industry that have contributed to its maturation. Overall, the crypto industry has come a long way since 2017, and these structural changes are likely to continue shaping the market as it evolves.
Crypto Industry's Evolution Towards Traditional Banking and Bitcoin's Unique Trait: The crypto industry is adopting traditional banking practices, but Bitcoin's transparency sets it apart. High demand for credit fuels growth of stablecoins, reducing Bitcoin's role as a transactional currency.
The crypto industry is evolving towards a more traditional banking system, with exchanges offering interest-bearing accounts and fractional reserve products. However, Bitcoin's auditable trail sets it apart, enabling a more transparent financial system. The industry currently has a high demand for credit due to structurally high yields, leading to an explosion of credit in the near future. Stablecoins, which have become the default mode of transaction in the crypto industry, have a mutualistic relationship with crypto-native assets. They serve as a liability-free trading pair for stablecoins, ensuring their liquidity during times of crisis. The shift towards stablecoins as the primary transactional currency has reduced Bitcoin's role as a reserve currency, allowing it to be treated as a pure macro asset. This evolution clarifies the distinct roles of stablecoins, Ethereum, and Bitcoin in the crypto ecosystem.
Stablecoins overshadow other payment tokens as apex predators: Stablecoins, like USDC, have overshadowed other payment tokens with their transactional usage and monetary value creation, making it challenging for projects like Ripple to compete as bridge assets.
Stablecoins have overshadowed the concept of futility coins or tokens aiming to act as a medium of exchange and create monetary value on their own. The success of stablecoins, like USDC, has made it challenging for other payment tokens to outperform in terms of qualities and transactional usage. This dynamic significantly impacts the Ripple project, which was initially positioned as a bridge asset but now faces stiff competition from stablecoins. Ripple's recent price increase could be attributed to its popularity in regions like Japan and Korea, and potential regulatory changes, but its overall fundamentals as a bridge currency remain weak. Instead, stablecoins have emerged as the apex predator in the crypto ecosystem, leaving other impostor tokens in their wake.
Ethereum Community Surpasses Deposit Contract Goal for Ethereum 2.0: The Ethereum community showed strong support for Ethereum 2.0 by collectively depositing over 524,000 ETH, exceeding the required amount, demonstrating commitment and anticipation for launch on Dec 1, 2020, and refuting external FUD. DeFi platforms like Yearn Finance offer exciting ways to earn yield, further fueling Ethereum's growth.
The Ethereum community showed strong support for Ethereum 2.0 by collectively depositing over 524,000 ETH into the deposit contract, surpassing the required amount, despite initial doubts about reaching the goal. This demonstrates the community's commitment to Ethereum's future development and the anticipation for Ethereum 2.0's launch on December 1, 2020. Additionally, the persistent belief that Ethereum 2.0 would never ship has been proven wrong, as the community came together to make it a reality. This event serves as a vote of confidence in Ethereum's potential and a rebuttal to external FUD. Furthermore, platforms like Yearn Finance's Earn system offer various ways for users to earn yield in DeFi, making it an exciting time for Ethereum's future growth.
Ethereum 2.0's Phase 0 Launch Introduces Staking as Consensus Layer: Ethereum 2.0's Phase 0 launch introduces staking, shifting focus from Ethereum killers to Ethereum's vibrant ecosystem, and contributing to recent price action.
The launch of Ethereum 2.0's Phase 0, also known as Serenity, marks a significant milestone in the Ethereum community's journey towards a more scalable and secure blockchain. This phase is crucial because it introduces staking, which serves as the consensus layer and heartbeat of Ethereum's operation. Although the full Ethereum 2.0 vision has not been achieved yet, the successful launch of Phase 0 has shifted the default position to believe that Ethereum 2.0 is indeed shipping. The market is reflecting this belief, and the removal of execution risk associated with Ethereum 2.0 is a significant factor contributing to the recent price action. In essence, the long-awaited staking feature is finally here, and it's expected to absorb capital and energy that was previously devoted to Ethereum killers, resulting in a more vibrant and innovative Ethereum ecosystem. Additionally, the current price action can be seen as a return to fair values, as staking is happening before retail investors flood in, rather than after. The capital and energy that were once directed towards Ethereum killers are now more likely to be used to build applications on Ethereum, making it a more attractive and promising platform for developers and investors alike.
The 2020 Ethereum bull market is sustained by DeFi and the bankless movement: DeFi applications like Uniswap, MakerDAO, and Compound keep investors' capital in Ethereum, and the bankless movement creates a shared experience that compels people to keep their capital on Ethereum, making the current bull market more sustainable.
The 2020 Ethereum bull market is vastly different from the 2017 one due to the presence and growth of Decentralized Finance (DeFi) applications. In contrast to the fleeting capital inflows during the 2017 ICO mania, the current capital is more likely to stay in Ethereum due to the stickiness of DeFi protocols like Uniswap, MakerDAO, and Compound. The absence of such applications in 2017 meant that there was no reason for investors to keep their capital in Ethereum once they entered. Another significant difference is the emergence of the bankless movement, which was not present during the 2017 bull run. This movement, driven by influencers like Bankless, is creating a narrative and shared experience that compels people to keep their capital on Ethereum. The bankless community, which didn't exist in 2017, is now spreading the message globally and converting content into various languages. These differences make the current bull market more sustainable, as investors are more likely to stay in the Ethereum ecosystem once they enter. Even if there is a speculative bubble in DeFi tokens, investors are more likely to exit to stablecoins or other DeFi protocols rather than fiat accounts. Overall, the growth of DeFi and the bankless movement are bullish signs for Ethereum's future.
Bullish on Ethereum and DeFi as the new economy: Understanding and educating others about Ethereum and DeFi is crucial for growth. Stablecoins increase demand for Ethereum, but beware hype around other tokens and focus on the value of Ethereum and its ecosystem.
The speakers in this discussion are bullish on Ethereum and the DeFi ecosystem, viewing it as a new economy and their home for the next decade. They believe that understanding and educating others about the concepts and ideas behind Ethereum and DeFi is crucial for the continued growth of the narrative. They also see stablecoins as a bullish factor for Ethereum, as the demand for stablecoins increases, more and more of them will be one transaction away from purchasing ether. However, they caution against the potential for retail investors to be misled by hype around other tokens, like XRP, and the need for proper education and understanding of the underlying value of Ethereum and its ecosystem.
Institutions and early bulls driving crypto market surge: Don't miss out on potential gains by waiting for perfect market conditions or risk mitigation. Buy now and hold through cycles for significant returns.
The current crypto market surge might not necessarily be driven by retail investors, but rather by institutions and those who were already bullish on crypto. Retail investors, who were active during the 2017 crypto boom and then exited, are only now starting to re-enter the market. However, those who are still hesitant to invest might miss out on potential gains as the market continues to rise. The risk-reward dynamic requires taking action and investing immediately to access the full potential upside. Waiting for perfect market conditions or complete risk mitigation might result in missing the boat and the opportunity for significant returns. It's essential to understand that holding an asset through its entire cycle, including bear markets, is necessary to access the full potential upside. The market might still be in its early stages, and it could have been more beneficial to buy Ethereum at lower prices during previous market downturns. Conviction and a long-term perspective are crucial for success in the crypto market.
Ethereum community's resilience and bullish outlook for Ethereum 2.0: Institutional capital shift, Ethereum 2.0 merge, and increased ETH lockup could lead to a prolonged bull market and potential repricing event for Ethereum.
The Ethereum community has remained strong despite the challenging crypto winter, and there's a bullish outlook for Ethereum 2.0's development and the industry as a whole. The bull market may last longer than previous cycles due to the slow pivot of institutional capital, and the next 2-3 years could see a significant increase in ETH supply being locked up through various means, leading to a potential 70% of the total ETH supply being locked. Additionally, the Ethereum 2.0 merge with the proof of work chain is expected to significantly reduce annual ETH issuance. These factors combined could lead to a prolonged bull market and a potential repricing event for Ethereum.
Ethereum's Scarcity and Potential Price Increase: Ethereum's scarcity due to increasing demand and network mechanisms like EIP 1559 could lead to significant price increases, making it an attractive investment, but investing in crypto comes with risks.
The scarcity of Ethereum (ETH) in the market, coupled with increasing demand, could lead to a prolonged bull market for the asset. This could mean that ETH prices could rise significantly over the next few years, making it an attractive investment. However, it's important to note that there are always sellers in the market, and there's a price for everything. But, Ethereum holders might choose not to sell due to the potential for earning higher returns through DeFi loans or staking, making them "never sellers." The Ethereum network also has mechanisms like EIP 1559 that could help reduce the supply of ETH, further contributing to its scarcity and potential price increase. However, it's crucial to remember that investing in Ethereum and crypto comes with risks, and there's a chance of losing the entire investment. This discussion is for informational purposes only and should not be considered financial advice.
