Bankless - ROLLUP: 1st Week of November

Starting point is 00:00:08 If you want to live a bankless life, you need to get a hardware wallet. There is no alternative for storing your crypto in a self-sovereign fashion. That's why I have four ledgers that I use to manage my different crypto assets, using the Ledger Live account as well. Ledger Live is like your home base for managing your Ethereum, DeFi, and crypto accounts. It does a really good job of aggregating all of your different Ethereum wallets if you are the type of person that uses more than one. but you can also add other cryptocurrencies like Bitcoin or Cosmos or whatever your preferred blockchain is.

Starting point is 00:00:43 And then it will display an aggregate portfolio of all your accounts at the main page. One thing that Ledger is doing a really good job of is enabling all the money verbs that me and Ryan talk about with the Bankless SkillCube enabled in the Ledger Live app. So right now in the Ledger Live app, you can buy, sell, and stake your crypto assets, which is doing a really good job of fulfilling all of the money verbs in the Bankless SkillCube. Something that's new to Ledger Live is Ledger Swap, where you can swap assets one for another directly inside the Ledger Live application, ensuring trustlessness in your financial activity on Ethereum and on Bitcoin.

Starting point is 00:01:19 There's a link in the show notes that will take you to the Ledger Shop where you can get your preferred Ledger Hardware Wallets. I personally like the Ledger NanoX, but I also have both. They're both great options. When you own a ledger, you own your own assets in the way that they have been designed to be held by the user and the user alone. So go get your ledger today to make sure that you are as self-sovereign as possible. Bankless is brought to you by WIREN. Wynne is DFI's first self-building community-run project, which I just get really, really excited about. Wynne is a system

Starting point is 00:01:53 that seeks out yield in DFI, and it does that in a number of different ways. A very aggressive way is with the vaults, where you can deposit your preferred asset of choice, and different DFI experts will come in and generate a strategy for what to do with your deposited token, right? And so it'll go find ways to get yield in that deposited token in Defy. For those who want to just earn yield on their stable coins, the Earn system is for you, where you can deposit your preferred stable coin, and Wiron will go and figure out which money market on Defy and Defy is producing the best interest rate, whether it's DYTX, it's compound or AVE.

Starting point is 00:02:30 It looks around DeFi to see where the yield is coming from, and it doesn't. direct stable coins automatically so you don't have to check them out at y earn.earn.finance to get started and also check out the stats page to see what other people are doing. Hello, Bankless Nation. Welcome to the first week of November. This is your weekly roll-up a show where David and I go through all the essential things you need to know about that happened in the past week in crypto. We've released this as always on Friday morning so you can enjoy it with breakfast, enjoy it with your morning cup of coffee and get caught up on all the news. As always, we try to do this in 25 minutes. So five minutes per section, we're going to cover

Starting point is 00:03:09 market releases, news, hot takes, and finally end with what we are excited about. This comes out on YouTube, also comes out on the podcast so you can catch it both ways. David, how are you doing today, man? Absolutely fantastic. There's just so much energy in the crypto industry right now. And we are trying to get some of that energy and why we are so energetic injected straight into your brain in a roll-up fashion. So if you don't have the time or energy to pay attention to everything that goes on in this super fast-paced world, then this is, we are going to bundle that information up and inject it right into your brain. All right, David, you ready? Should we roll them up? Roll them up. All right, let's roll them up. Roll them up. All right, we're starting with market.

Starting point is 00:03:54 David, what is the market saying? You want to start with Bitcoin here? And I'm going to show something on my screen. Show some Bitcoin price action while we are talking about it. Yeah, Bitcoin is is just marching up and to the right. Maybe it had to do with the election. Maybe it was going to do this anyways. But it is really pushing up against its all-time high, at least with regards to how long it has spent above the $15,000 mark.

Starting point is 00:04:20 So it is currently at the time of speaking, $15,000 and $15,000 and $15,200, which is, as far as Bitcoin goes, That's basically it's all-time high in terms of time. It has spent very little time above this number. Very few sellers is the theory above 15,000. What is this? Election, so we've got probably a Republican Senate, probably,

Starting point is 00:04:47 and we probably have Biden as president. I don't know, it's looking that way. That's what the prediction markets are telling us. Is that part of the reason you think? I think so. A Republican-controlled Senate means that we are definitely not, probably we are probably not rolling back Biden's tax cuts tax plans right which is bullish for asset prices and a Biden led presidency means we are definitely adding more stimulus into the economy

Starting point is 00:05:13 which like both of those things are bullish for assets and Bitcoin specifically. All right, quick take. Do you think Bitcoin's going to hit all time high in 2020 or no? Oh God, I wouldn't be surprised if it did. I couldn't say because like the thing is like it's marching. It's going so fast. And it's really. accelerating. I think it's, I think it's in the cards. It's going to start hitting headlines soon, and then it sort of becomes a self-fulfilling prophecy. Okay, let's talk about the next thing. Bitcoin on Ethereum, what's happening there? The number's higher. It's always higher. It's a higher number one year was last week. It's gone up. All right. It's gone up.

Starting point is 00:05:48 Last week is $149,000 and this week is $153,000. All right, from $2 billion to $2.3 billion. It's going up. All right. Next, you want to talk a little bit about Bitcoin futures volumes, because that's been crazy as well. This is CME feature volumes, which is CFTC regulated. That's hitting some all-time highs too, right? Crazy. Yeah, it's just all-time highs left and right. And that's one of the reasons why there's so much energy and excitement in this space. We are just getting more and more external validation that people are interested in Bitcoin. All right, let's get to Heath Price. Heath, how we're doing a little guy? So, Eiff is 413. As of right now, it hit a bit of a bump, not quite as large as Bitcoin. What's going on with the thief price?

Starting point is 00:06:31 Yeah, well, naturally, the ETH price hit a bump, hit a little pump when the deposit contract got announced, but it looks like it struggled to really follow through on that. We're going to talk a little bit more about that, but all of crypto seems to be moving up into the right, and ETH is no exception. Yeah, it might be sort of just waiting for the realization of staking to come out there. We'll talk a little bit more about that right now. far. The pump has been a bit underwhelming. Do you want to talk a little bit about total value locked in Defi? What's what's that hanging at right now? We've got 11.7 billion. That's about

Starting point is 00:07:08 flat, isn't it? Yeah, it's pretty flat on the higher side of flat, I would say. You know, but like we like we've known, Defi is still doing its retracement. Some people have called the bottom on Defi yet to be seen. I'm in that camp at the bottom on Defi's down. But that means that The fact that total locks in DFI, the fact that that's flat is actually kind of bullish, while DFI retracts total locked and DFI is flat. I guess going back to ETH, I know one thing we wanted to mention is this tweet of yours, we constantly talk about the three value accrual mechanisms of ether. And we've got one, we just store a value in DFI that we just talked about value locked in DFI.

Starting point is 00:07:47 But there's two more that are kicking in here. And you tweeted this out here about ETH's three pillars of value, accrual. What are the two others, David? And when are they coming? Yeah. So we got we got the green check mark next to a store of value in Defy. We have the capital asset and proof of stake on the horizon. That's happening on December 1st. We have an actual date for that, assuming enough ether gets deposited into the deposit contract. Both Ryan and I on our Alpha League episode indicated our bullishness that that's going to be met by December 1st. And then on the horizon after that is consumable asset in EIP-15 to 9, which Tim Beko, the most informed individual on this matter,

Starting point is 00:08:28 predicts a nine-month time horizon for that. Yeah, all right, very cool, very cool. So the three pillars, and it might be the case that we've often said 2020 is 2016, and then, you know, next year it's 2017 where everything kind of explodes. It looks like the plan is coming together on ether value accrual. Hey, we don't have much time to talk about this, but you want to talk about other markets, which is prediction markets for the presidential election, that's been crazy in crypto. There's some markets where you can actually bet on Biden versus Trump.

Starting point is 00:09:01 And we've seen some pretty heavy volume. Here's one on FTX. What's your take? Yeah, I think prediction markets were the unsung hero of the crypto world during the election. They did their jobs, right? They had high volume, high liquidity. And they really allowed people to express their version of the future and make a trade against that. And one thing I think was really cool was this catnip project, which was a combination of

Starting point is 00:09:27 money legos between balancer and auger that allowed you to buy no Donald Trump tokens or yes, Donald Trump tokens right through the balancer interface, you know, like KYC free, using an AIM that everyone knows and loves, using the money legos that people know how to use. Yeah, and I understand you put a bet on the defy prediction market, polymarket, and tried that out. And it's cool that all of these markets are changing in real time. So at one point, when it looked like Trump could win this, they were trading Trump high, but likelihood very high. And when things have switched around, now they're trading pretty low. So they're saying that the odds of Trump winning are about 10% or so 10 to 15% at this point in time, which feels about right.

Starting point is 00:10:12 Very cool to see them respond this way. All right, David, that's markets. Let's talk about the next thing. what's going on with releases. Let's talk about the big release first, shall we? What is the most obvious release other than the release of the deposit contract for Ethereum 2.0? If you've been following the bankless media or other Ethereum people in this space,

Starting point is 00:10:33 you should have been seeing this coming from a long way off. But if you're perhaps new to the space or you're coming from people that don't really speak about Ethereum, maybe this is a surprise to you. Either way, this really locks in how the fact that Ethereum 2.0 is so close. and we're starting with phase zero, and we actually have a date for phase zero. Phase zero, December 1st, and David, we are just pumping out content on staking, in particular, an ETH2 at Bankless. So we've got our Alpha League videos, of course.

Starting point is 00:11:02 We've got the staking, how to become a validator and stake your ETH that we just published on bankless as well. And just today, we released a whole economics article on EF2.0 staking, comparing it to a bond, which we can talk about later. Man, that's such a huge release. This has been like five years, five years coming. Since the Genesis, since Genesis of Ethereum, yeah. We've said this before.

Starting point is 00:11:23 This is absolutely huge news. I think the biggest news at least of this year, if not of the past several years. All right. We've talked about that enough in other places, but maybe let's link in the FTX news. So saw this on CoinDust, David. FTX, which is an exchange. We call them crypto banks, is going to list beacon chain ether. So that means that they are going to list.

Starting point is 00:11:46 list and start trading, not ether in ETH1, but this actual derivative ether in ETH2 as a product and they're going to somehow trade it. What's your take on that? Yeah, so some people said that something like this was inevitable. The point about the deposit contract is when you put your ether from the ETH1 chain into it, it's a one way bridge, right? And so then you have your ether on the ETH2 chain and you can only have it on the ETH2 train. And you know, you can't go backwards.

Starting point is 00:12:18 But some people might want liquidity between Ether 1 and ETH2. And the only way to do that is through a centralized operator, right? And so FTX is going to enable you to stake your ether put your ether from ETH1 into ETH2 through their centralized system. And then allow you to trade what is essentially a derivative of ether on their centralized exchange. I really just don't think this is a big deal. The people that are going to be putting their ether from ETH1 to ETH2 are the stakeholders of Ethereum who really want who are just in it for the long haul by definition. I don't really see it.

Starting point is 00:12:50 Who's going to be speculating on this? I don't really see what this is for. Yeah, I agree. And I think the launch of EVE 2 is really geared towards hardware-centric, like, folks that are just running their own. So there will be these crypto exchanges that do it too, which is good. I mean, the more stakers, the better. And, you know, the more we have, the better.

Starting point is 00:13:09 I kind of agree. We'll have to see how it plans out. But I don't think there's any fear, uncertainty and doubt associated with that. Speaking of ETH II, this, you know, Trent put together this fantastic graphic of how all of the phases relate. We're showing the graphic on YouTube, but for folks that are listening on audio, David, could you just give a quick like, what's going to happen in phase one, phase zero, phase one, phase one, phase one. At least, how is it going to blend together? Yeah, Trent did a good job of kind of bundling everything up because in addition to going from phase zero to one to one to one. to 1.5 to 2, there's also the parallel roadmap of roll-ups, which kind of have their own

Starting point is 00:13:50 place in the roadmap. Right now, we are at phase one. We are at the point where people are putting money into the deposit contract. Phase zero, right? Excuse me, phase zero. Phase zero, yes. People are putting ether into the deposit contract. And then that heartbeat of Ethereum, which is phase zero, gets up and running. And then the prediction, therefore, after that is phase one will come in nine months to a year after that. That's what Preston Van Lund said on our previous video so check that out and then we get into phase 1.5 and the way what the reason why phase 1.5 is so important is think of Ethereum 2.0 as a rocket ship with 63 rockets on it right and then this 64th rocket which is Ethereum 1 comes in docks and it loads into the rest of the

Starting point is 00:14:35 the bigger rocket ship and now all of a sudden there's 64 rocket ships and then once it's in there once the Ethereum 1.0 gets loaded into the Ethereum 2.0 ship, then it's all one entire thing. And we have Ethereum 1 rolled into Ethereum 2. And that's how we do the seamless transition. That's the roadmap ahead of us. Trent did a really good job illustrating that in this graphic. Dude, nice analogy. And the reality is we could have phase 1.5 done sometime in maybe 2022.

Starting point is 00:15:06 So that's going to be fantastic. and that's when the old proof of work dies and each issuance drops to below 1%. How crazy is that? All right, David, we don't have time to talk about all of these things. But loopering just put out some cool stuff. We'll include a link in the show notes and Verizon's doing more with the blockchain. I guess that bleeds into the news. Let's talk about what's going on in the news.

Starting point is 00:15:32 Australia, joining the club. They're running a central bank digital currency. pilot right now with consensus. So that would be on a private version of Ethereum. But we're seeing all the central banks do something in this space. And it feels like they're all crowding into it in the last six months. I think that's only going to accelerate. Yep. Central bank digital currencies are hot. Like there's been at least two central banks doing a central bank digital currency in the last two rollups. Right. So this is like our sixth or seventh or eighth like central bank digital currency. Right. And also tip of the hat to consensus is always there behind the scenes helping

Starting point is 00:16:08 people helping these banks do their thing. We got into an argument, Ryan, in the bankless Discord about are the central bank digital currency is going to be based on Ether, on Ethereum, or are they going to be their own totally centralized ledger? That's going to be an interesting discussion. Yeah, totally. And it might be a little a blend of both where they use their own totally centralized ledger and then settle on Ethereum for some things. But let's talk about the other signals that are going on. This is a massive one, dude. This is PayPal. right in their Q3 earnings report. This is their earnings call that they have with investors.

Starting point is 00:16:45 If you read this snippet of the transcript, I want to talk about this might be their CEO talking. It's one of their executives. Anyway, he says this. Finally, I'd like to discuss our recent announcement to increase the utility of cryptocurrencies, as well as embrace new forms of central bank digital currencies. Again, PayPal is adding the ability to purchase crypto in PayPal.

Starting point is 00:17:06 And then in 2021, they're adding it to, Venmo and he says this we are entering a new era of financial services where our wallets and all the services around them are moving from physical to digital sounds like he's listening to bankless David what do you think man that's pretty bullish largest corporations largest payment processors they're coming to crypto same time central bank digital currencies are central banks are signaling this way everybody is coming to crypto yeah it's just a massive convergence upon this new realm of money right this new way to host and have money. So not only is the central bank digital currency room crowded, the companies jostling

Starting point is 00:17:44 to serve central bank digital currencies are also playing that same game. There's a lot of competition for companies who want to serve these central banks. Yeah, MasterCard joining the fray, their president this week says their crypto patents will pay off when the central bank digital currencies arrive. Everyone thinks central bank digital currencies are coming, even the biggest banking processors, payment processors in the world right now. Fidelity also is doubling down. They're hiring 20 crypto engineers to work on their blockchain side of things. 20 plus. That's a very large amount. All crypto or blockchain. That's a large amount. Yeah, dude. There's not that many. There's not that many blockchain crypto- where are they going to find them?

Starting point is 00:18:28 Yeah. So like this is this is a trend that's happening. I expect we'll update more on this in the in the ruleups to come. Real quick, David, we should talk about this story too. U.S. officials just seized more than one billion dollars. It was funny on Tuesday. Everyone, you know, like kind of woke up to the fact that some money was getting transferred. Old money. A billion dollars worth of old Bitcoin that hadn't moved since like 2012 or something was being moved. And it was one of the largest holding addresses in all of all of Bitcoin. We just found out what that was.

Starting point is 00:19:03 What was it, David? Yeah, so it was an outgrowth of Silk Road Bitcoins. Apparently, whoever controlled the private keys for these Bitcoins stole them from the Silk Rolls, stole them from Ross Oldbrook himself. And because of that, the U.S. government was like, this is ours. Thank you. The unknown about this story is how this government identified this, how the U.S. government identified this individual and then got him to willingly forfeit the funds to him,

Starting point is 00:19:29 probably with threats of jail time for life or something like that, because that's what you can do. And so now the- Ross is. That's where Ross is. Living a example. Yep. Uh-huh.

Starting point is 00:19:39 And so now the big takeaway of the story is that the U.S. government has a billion dollars worth of Bitcoin. They're probably going to have to auction it off. And that's going to be an interesting development. That's what they did with their last stash. I wonder how long it takes them. I'm sure they'll find lots of institutional buyers this time. Even last time they did this in 2013,

Starting point is 00:19:59 folks from like the venture capital world, like Tim Draper stood up. and bought some and that turned into a very brilliant investment for him. David, it's kind of the same story, right? Nation State is raising its head and taking some action in crypto along with embracing all of these technologies at the same time. So it's an interesting, like, it's an interesting, I guess, mechanism to sort of watch. Yes, interesting juxtaposition.

Starting point is 00:20:27 You found the word for me. All right. If you are looking for a mobile wallet to hold and access your crypto, you need to go to argent.xyz and download their smart contract wallet app right onto your Android or iOS device. Argent is the most secure way to hold money on your device while still being able to access defy services that we all know and love on Ethereum. Through Argent, you have one tap access to the beloved defy apps like Compound, Uniswap, Ave, and you can even invest directly into some yield generating assets right from your Argent wallet. Crucial to maintaining security over your

Starting point is 00:21:03 assets is Argent's guardian service, which allows you to use a friend to make sure that you can always restore access to your funds in case you were to ever lose your phone or for your device to break. You can also use a local hardware wallet to ensure that you can always restore access to your funds yourself. One of Argent's newets features is their ability to route trades through 10 decentralized exchanges, including unswap and Khyber, to make sure that you are always getting the best trade on your assets. Similarly, pushing the fold on what we can do, in Ethereum and Defi, Argent has replicated some of the legacy financial services that you would expect from your bank, but put it directly into the hands of the user, such as send limits and

Starting point is 00:21:43 white listed accounts, ensuring that if anyone were to be able to access your funds in your Argent wallet, they could only send up to a certain amount and only be able to send them to approved addresses, which is creating one of the most safe environments to hold your assets in, which is why people have put millions and millions of dollars into the Argent wallet that they use on their device. In order to see the Argent wallet in action, go to argent.com slash bankless and download the Argent wallet on iOS or Android today. We're also brought to you by Monolith. Monolith is your cool new defy account, your defy savings account, your defy checking account, except the cool thing about the Monolith defy account is that it gets software updates, right?

Starting point is 00:22:25 You actually get to increase the usefulness of this over time. So here are some of the features. Monolith is a smart contract wallet with a lot of the features that you would expect. If you've come to know defy and what it is, you can add money to it. You can put that money to work in compound and accessing yield. But you can also swap through Uniswap. What was cool with Monolith is that they will send you a very sexily monolith visa card that connects to your Monolith smart contract wallet on Ethereum. So it's a really awesome tool to live a bankless life with a savings.

Starting point is 00:22:59 account that gets software updates. So this is something that you're never going to find out in the real world, but you can still do real world things with, you know, real money and like buy your groceries. So that's just fantastic. Coming soon to Monolith, actually already here to Monolith, is now you can buy, die and get it sent to your wallet directly, right? So it's also being an on-ramp. So you don't have to go through your centralized exchange like Coinbase or Gemini or wherever. You can just go straight from your bank account right into your Monolith checking account smart contract wallet. So check them out at monolith.xy-Z. Let's go to take. Speaking of what's happening, what's on your mind right now, David, what are some of your hot takes for the week?

Starting point is 00:23:41 Yeah, my hot take for the week is that we constantly hear about how there's just this lack of trust in institutions, right? Like no one knows who to trust anymore. Like the central government isn't really doing the job that we wanted to. The companies, Facebook, Silicon Valley, we don't trust them either. And as we all know, 2020 has been just a year of just reording your brain to a new reality, right? People are just things are different now for many, many different reasons. And one thing, and the underlying theme is a lack of trust, right, a lack of trust in institutions. And so I want to pose to the listeners, what's more likely to return, get new trust back? Is it going to be that we are going to improve our old institutions or that we have

Starting point is 00:24:27 adopts new institutions. And what are new institutions other than Bitcoin, Ethereum, and defy applications, specifically institutions that are trustless that you can trust by default? And I- You know what? I don't know of any other. Like you asked that question, what are the new institutions? It's either the old governments that we have to change from the inside, or it's honestly, it's these digital like corporate overlord nations, like the nation of Facebook, the nation of Mark Zuckerberg, the nation of Twitter, right? I don't trust them. Bezos. Do you trust them? No, not at all.

Starting point is 00:24:59 They could be worse. They're part of the problem, right? And so where are we going to get new trust? Well, what about trustless systems? Like, that's the whole point of this revolution. And the 2020 world has been so crazy. I don't think it's that far fetched anymore to ask people to like learn about Bitcoin, to learn about Ethereum, to offer them a new platform.

Starting point is 00:25:18 Because their world's already been turned upside down in 2020. Like, that's not that much of an ask anymore. No, this feels very much like a new puzzle piece, fitting into the whole list of things we trust. Yeah, nice inside, dude. Fascinating. Thank you. Ryan, what about you? All right. So one thing, I've got three, all right? But I'll make them quick, right? So the first is this, David. So I feel like for a long time, people have been talking about like Ethereum will never work. Smart contracts will never work. Defi is just a toy. It will never work. Well, guess what? Uniswap is now doing $4 billion in

Starting point is 00:25:56 volume and trading volume on a weekly basis, which is more than coin based, by the way. Right. We can verify that on Ethereum. And like, it's no longer an option for you to say Ethereum is pointless and defy won't work, right? It's no longer an option. Uniswap was a protocol built two years ago. In 24 months, now it's doing four billion dollars. My hot take is, shut up. If you're saying Ethereum smart contracts, defy don't work. Just look at Uniswap and then shut up because, like, Onus is on you now. Not on.

Starting point is 00:26:30 Prove it. Yeah. What are you talking about? It doesn't work. Okay. Like one developer did this, right? Like, Barry's to entry. It's crazy.

Starting point is 00:26:38 Anyway. Can't argue with $4 billion. My other hot take is this. I don't think a whole bunch of things are priced into ETH right now, the asset. That's right. I'm a bull on Eth. You guys know that. David, I know you're a bull on ETH.

Starting point is 00:26:51 But look, EF2 is not priced in right now, in my opinion. I don't think ETH staking is priced in. I don't think ETH as a store of value money is priced in. I don't even think the potential of DFI is priced in. And I know 155-9, ETH Feeburn is not priced in either. No, there's no way. I don't think any of this is priced in. So if you know this stuff, it feels like some alpha.

Starting point is 00:27:15 All right. Ready for spicy take now? See three. Three. Here we go. Okay, here we go. I said, I tweeted this out, we don't need a Bitcoin V2 because it already exists. it's called Ethereum.

Starting point is 00:27:26 And before you say, Ryan, I disagree with that. Let me say, like, I also partially disagree with this. Right? So, like,

Starting point is 00:27:35 I don't fully 100% agree with it. Like, I don't think you can actually replace Bitcoin. That's really not what I'm saying. But I do think that Ethereum is executing on a few things that now Bitcoin doesn't need to execute. So if Bitcoin ever thought it should add expressivity

Starting point is 00:27:51 or smart contracts to Bitcoin, it doesn't need to because Ethereum is here. Right. If Bitcoin ever thought it should create a layer two, it doesn't need to because Ethereum is a better layer two than it can come up with. Right. If Ethereum, if Bitcoin ever wanted to transition to proof of stake, it doesn't need to because Ethereum already has essentially. And I do think, like, Ethereum is kind of taking this bankless vision, right? To the max.

Starting point is 00:28:16 And that was part of the vision of the Satoshi white paper. So, yeah, what's your, is that spicy or is that now I've muted it down and nerfed it? It's not so spicy. Yeah, I think the second one, actually. All innovation that is like trying to do something on Bitcoin, it just works better on Ethereum, right? And so it seems to be that Bitcoin is being whittled and whittled and whittled down to just the main L1 Bitcoin chain,

Starting point is 00:28:41 which is just fine because, again, that's not, Bitcoin isn't trying to do other, anything else other than support BTC, the asset. But you're totally right. Like all the value of all the other innovations are going on to Ethereum. Ethereum is an evolution on Bitcoin. It doesn't replace Bitcoin, but it just is, it's a 3D movement upon a 2D historical, like, whatever Bitcoin is.

Starting point is 00:29:05 Totally agree. I feel like it's all part of the family of religions that, you know, the crypto religions basically, it's just another branch. All right. Let's talk about lastly, this is, I love ending with this, David. So we've given you guys news, some hot takes, some releases. but what are you most excited about at this point? First week, November 2020, what's exciting?

Starting point is 00:29:28 Yeah, so again, we're all, we're primables, I guess, on the bankless podcast. We don't mean to be, but I guess we are. But what I'm excited about is that just the arrival of Ethereum 2.0 brings in so many just positive N-order consequences, second-order, third-order consequences that just are really, really helpful. Like in 2017, people kept on talking about, like, what is ether? How do we define ether? And people, for some reason to this day, still cite John Feffer's ether investment analysis, which is basically summarized as ether is gas and the velocity

Starting point is 00:30:00 of ether is not going to make it valuable. But then people in the Ethereum community, like people like you and me and Eric Connor and Anthony Sizzano would like raise their flag and be like, that's not correct for these reasons. And all of the reasons that we would give were actually hypothetical, like dependent on future success of Ethereum reasons, right? And so, but now that to refute almost. Yeah. Right? Because somebody could say, yeah, show us when it ships, right?

Starting point is 00:30:24 Right. And you're like, damn it, good point. But like once it's here, like if anyone at this point in time is citing John Feffer, like the days are numbered, right? Like the days of the John Feffer investment thesis of ether are out and the days of the triple point asset are in. And the, again, the triple point asset was just a thesis. And we are seeing it turn into reality.

Starting point is 00:30:48 and that is just going to ultimately be reflected in the price of ether. Yeah, it feels like that old ethos oil, ethos gas kind of analogy has totally broken down. It's almost as like it almost feels as old and dated as defy will never work. Defy has no use cases when Uniswap is doing $4 billion in weekly volume. Yeah. Right. So far the bankless takes for the past like two years have been on point. Yeah.

Starting point is 00:31:14 We've been saying it from day one. We'll see. All right. I feel it that way. We'll see. Yeah. What are you excited about? All right. You know what? You stole mine, David. I'm just kidding. I mean, you're going to go into more detail.

Starting point is 00:31:28 Look, I think maybe my focus is this. Like, ETH two launched, right? And what this ETH asset is becoming is a productive asset. Ran a piece by Stefan Kulikin, who actually runs a publicly traded company in Canada. You know what they do? They just, tell me. They just buy ETH. That's their investment thesis. They buy ETH and sometimes they invest in other company. So it's a publicly traded company with a balance sheet full of ETH. And he wrote this great, great post called The Birth of the Digital Bond about how ether, the asset in staking becomes a digital bond, a yield-bearing instrument. This is somebody with a traditional financial background who is talking about this. We just put out a post today. So this will be yesterday by

Starting point is 00:32:15 the time you listen to this called eth the internet bond. And this basically goes through how you can think about ether the way you would think about a traditional like sovereign bond, for instance. When it's staked, it has basically the same elements of a bond. It has a face value. It has a present value. It has a market value. And those can be kind of discounted based on, like based on time, based on the horizon, based on sort of the market value. And there's a discount rate. So what's cool about this, I think, is staking will lead to traditional investors, institutional investors, being able to understand ether, the asset. I think they don't quite understand it right now. I think over the past three years or so, we've seen institutional investors start to understand

Starting point is 00:33:04 Bitcoin. It's like, oh, okay, digital gold. Okay, now they have digital scarcity embedded, embedded in their head. The next journey for institutional investors and for mainstream investors is to understand ETH as an internet bond, a digital bond as a yield-bearing instrument, and a whole non-sovereign, open, decentralized economy. So I think we're at the very start of that narrative, kind of picking up, and institutional investors starting to understand that, David, so that's what I'm excited about. And by the way, we're going to have Andrew Keyes, I think, on next week to talk a little bit about that. And the folks that helped write this white paper on ETH as an internet bond

Starting point is 00:33:48 to talk about that on state of the nation. So more on that soon. Yeah, there's no shortage of ETH staking in Ether-related content in The Bankless Nation. And that's because that's exactly what Ether deserves. Like, Ether is the most insane asset of all time. And just to keep on hammering on this point, like, we have never seen a bond market it with a hard money before. That is something that will be brand new to this universe. Yeah. Speaking of which, David, you get your validator preps? Finds the hardware.

Starting point is 00:34:18 Yeah. Absolutely. I already got, apparently, according to Preston, who, again, you guys got to listen to the episode with Preston. I'm going to make a link happen right around here in the corner of YouTube. You can apparently stake like 10,000 validators on like a MacBook Pro. I won't be needing that many validators. But, but, wait, 30. How much of the whale are you, David? 320,000 Eath on my MacBooks. Yeah, that's what I'm doing. Getting ready for that.

Starting point is 00:34:47 You can almost boot up the network by yourself. Well, that's awesome, man. All right, dude, well, I think that is all our time. We kept our promise. We gave you guys the week in crypto. Everything you need to know from a news, releases, market perspective, and also some hot takes to end it with. Hope you enjoyed the first week of November.

Starting point is 00:35:06 This has been our roll-up. As always, none of this is financial. advice, the assets we talk about are risky. You could lose what you put in, but thanks for joining us on the bankless journey. We're signing off.

Bankless - ROLLUP: 1st Week of November

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