Nasdaq Gets Crypto, and Wintermute Gets Hacked - Transcripts

September 21, 2022

  • Favorite
  • Share
Plus, what does the new, post-Merge reality look like for Ethereum?

Transcript

only one sail away from the Shopify one thousand club is that a thing well have a cookie I'll take one to add direction if you need to fill them you should know seriously let's such up on Shopify it's easy

I always knew you would build your own business

days that

your home when you're ready to bring your idea to life built on Shopify sign up for a free fourteen day trial at Shopify dot com slash offer twenty two Shopify dot com slash offer twenty two

hello everyone and welcome back here's why you should join today's real vision crypto daily briefing mass like once a piece of the crypto pie one of the world's largest exchanges is getting into the crypto costs of the business we'll explain what this means for the wider market plus a deep dive into how the Murch went and what happens now also the Unchained podcast l'arche and gives her take as always will break down this conversation in two key take aways for you guys at the end so stay tuned for that I'm Paul Gera and with me as always ash Bennington is with me how are you doing I should

I'm doing great Paul last night mystery man that opening party at late night lots of caffeine this morning

well it sounds like fun necessary good stuff don't forget subscribe if you're watching this thing you to smash the like button for the algorithm and if you're hearing us on your favorite podcast platform stay tuned for more now let's jump right into the latest price action the total crypto market cap is above nine hundred and thirty trillion dollars all eyes are once again on the fifth at two PM eastern so in about four hours or so we'll find out what the next rate hike is in markets generally expect another seventy five basis points this is important because crypto currencies have been very sensitive to rate hikes lately and this has been impacting prices all over the market so far the moves are subdued bitcoin is up slightly for the past twenty four hours and it's you know a little seesawing above

and below nineteen thousand dollars and its market dominance is around thirty nine point five percent we might see a bigger move after the fed announcement as always and in the meantime MicroStrategy announced it bought another three hundred and one bit coins this means they hold now around a hundred and thirty thousand bitcoin in total this means also that Michael sailor is balling ash what about the team how's it doing yes similar picture there Paul investors appear to be in a wait and see mode probably looking toward the fed meeting as everyone on Wall Street is this morning Ethereum is up slightly for the past twenty four hours trading above thirteen hundred dollars coin desk reports a city research report stated that he has remained stable post merge it also says that issuance of new eat is estimated to fall by ninety percent to around six hundred thousand a year we'll touch on that later in the show finally it notes that it is now a yield bearing assets so he puts the yield at four point five percent separately decrypt reports data from okay link that shows Ethereum miners dumped eat at elevated levels last week seventeen thousand was offloaded ball wow that's a lot of either thanks ash lots of changes under the hood for eat following the merge will discuss this in more detail later in the show but now let's take a look at our top news story today well which is a fresh vote of confidence in the crypto by Wall Street nasdaq the company behind the world's second largest exchange has announced it is getting into crypto for the first time the company will offer custody services for bitcoin

and a

Ethereum to institutions Bloomberg reports the nasdaq hired IRA our back grand prime broker services of the crypto exchange Gemini to head up with the nasdaq new digital assets unit he told Bloomberg quote we believe this next wave of the revolution is going to be driven by mass institutional adoption mass institutional adoption and coach ash blues words from the man let's start with the basics though what script to custody well in the simplest terms custody is how people store and secure their own assets whether its digital assets like cryptocurrency or stocks and bonds so traditional custodians in the modern era have stored for example stocks and bonds on behalf of their clients what does that mean in crypto when assets are stored on a blockchain what it means is that Chris crypto custodians store and guard private keys that you use to access your wallet Paul well it seems it will be a fight for custody because the nasdaq will have to compete with Coinbase bitgo encourage among others for those institutional clients but nasdaq is a big brand what do you make of this story ash well you know it's interesting nasdaq obviously has a reputation of being a high tech exchange you know particularly in the wake of that the first guide web one revolution nasdaq was where all the hot stocks traded in the nineties in the two thousands lots still straight there today it's a it's kind of like a a passion passing of the torch kind of moment here essentially we see an exchange like nasdaq getting involved in the crypto custody business it suggests that we're seeing more mainstream adoption I think as the coach said more institutional adoption at least interest around digital assets in around institutional adoption and the desire the quest to costly those assets into trade them securely I think it's probably a bullish sign on balance for the crypto space but obviously lots of stories on any given day I'm sure we've got some negative ones coming up all of

yeah

yeah well if you're a wizard but well that was actually positive news there but yes now let's take a look at an equally important but less optimistic story in here it is another day another defy

hack

crypto market maker winter mute has confirmed its lost one hundred and sixty million dollars the company says the hack was confined to its D. five business and it says its lending and over the counter services or the C. five exchange were not affected the CEO says winter mute remains solvent with more than twice the amount stolen left in equity he also said they're treating this as a white

hack

attack early reports suggest the hack was sophisticated but details remain scarce ash can you please explain how crypto market maker operates sure Paul if you want to buy something or sell something you need to obviously match those buyers and sellers and you need to provide liquidity you think of liquidity in the simplest terms a kind of inventory for buyers and sellers of financial products if you don't have adequate inventory or liquidity it means you get inefficient pricing what that means is that it costs you more to buy it cost you more to sell the idea is to aggregate this liquidity to match buyers and sellers and to have efficient price discovery markets ball thank you as well you know it's not the first time that that defy hack has been reported on this show what do you make of this this isn't even the first security event involving winter mute Gizmodo reported in June that the market maker saw about twenty million dollars initially disappear after wrong crypto exchange address was used in a transaction it was a series of unfortunate events so to speak that led to this but the store has a mostly happening ending which is that the hackers returned most of the stolen funds what's interesting to me is that according to coindesk's winter mute is still calling this a white hat attack which may may signal that they hope to get at least some portion of their assets back this is an unusual spaces people know who follow this show and the other work that we do here on religion occasionally have these white hat attack so called white act attacks were people want sort of the recognition of being able to penetrate a protocol or penetrate an exchange and then they give the funds back I imagine that is what they're hoping is going to happen over winter mute look we've said this before here just a little bit more broadly to talk about a little context around defy these hacks are regular occurrences in the space with their flatulence or bridge acts these are regular events in the space you know it's this this weird sort of space that we're in where we look at defy many of the smartest people in the industry I think this is going to be the future of the way assets are traded not just digital assets there's a lot of optimism around being able to trade traditional assets capital markets assets like stocks and bonds on trade but the reality is the security challenges are considerable they are consistent we seek significant cease the significant hacks happen in the space all the time tens of millions of dollars hundreds of millions of dollars unfortunately this is just another example Paul and unfortunately I suspect it's probably not the last we're going to be reporting on they will not be the last that's for sure

okay then thanks for joining into another religion podcast today's episode is brought to you by then go the last ten years over one hundred billion dollars worth of crypto has been lost or stolen specifically because of poor key management scams and hackers forget not your keys not your crypto software and hardware wallets both have the same vulnerability a single private key that can be lost act or simply misplaced our sponsor this angle crypto wallet is a total game changer bring wallet security to a whole new level same goes in on chain crypto wallet with no private key vulnerability leveraging advanced cryptography called MPC which until now has only been available to multi billion dollar institutions yours and go can't be secured by three factors which makes recovery simple and stress free then go has a legendary in up twenty four seven live support with real humans with no private keys to steal your crypto assets on an FTC are much more difficult to hack there's a reason why is and always able to claim itself is wet three's most secure one then go has it all multi chain support by trade connect to web three dapp and store your crypto with well then then goes the most secure web three wallet and the best place to keep your crypto entities and assets secure it's also fully recoverable using their biometric recovery kit gets started at Sango dot com slash Harvey crypto and use Harvey crypto to get twenty dollars back on your first purchase of two hundred dollars or more that said E. N. G. O. dot com slash R. V. crypto code RV crypto for twenty dollars back on your first purchase two hundred dollars or more terms conditions apply see site for details

another news story we want to look at is an announcement from Coinbase the company is integrating its going man's wallet browser extension with the EMS which is that if you're named service and if you're based the main that replaces your wallet address you know that long line of numbers and letters that it's impossible to remember well that one so Coinbase will hand out free EMS usernames to its customers

and

it will they will be formatted with the name dot C. B. for Coinbase dot ID so ash going to say is that this is a big step towards making with three simple to make it accessible for everyone what are your thoughts well you know Paul I think it's a cool story you user interface user experiences a significant challenge in crypto it's much too complicated I think this is a step in the right direction I think that's probably true I registered ash Bennington dot youth I think over a year ago and I got yet as tokens airdrop to me just in terms of full disclosure here not why I did at the time we didn't know where any of the tokens airdrop I just did it because I thought it was cool you know for exactly the reasons that you talked about obviously long strings of alphanumeric characters are very difficult to remember it's easy to remember ash Bennington dot EDU I also think it's interesting that coin desk is branding this by pre pending C. B. before the addresses that smart it basically allows them to have some branding in the space in addition to helping their customers have more easily recognizable names I think this is kind of a cool story and it seems like a step in the right direction broadly speaking Paul at symbols like a great marketing moved to have the C. B. attached to every single address so everyone will see the CB and know what what is this always going because what is that so yeah great marketing move also and speaking of Ethereum there was actually this tiny little event lately ash and leave you remember it it happened I think a few days ago it was the merge you know those are the most complicated anticipated operations in crypto history by and large it's being considered a big success so far an early lead spoke with Laura shin about it Laura is a journalist author and hope because of the on chain podcast you can also check out her book which is great by the way the cryptopia idealism greed lies and the making of the first big cryptocurrency craze here's how she described the big day

what was your reaction when the merger was successful were you one of the ones who stayed up very late to watch it happen I kind of cheated I went to bed at a normal time and then I set my alarm and I have to say I projected quite well because you know there wasn't a specific time but I managed to make a basically right before it happened and witnessed it and knowing that if you had been working on for years and in fact it was so technically challenging that they'd have to delay it and number of times and you know ultimately and the reason it's called emerges they felt the safest way to make this happen and it would be to just get a proof of stake chain going just make sure that worked and then you know the task of moving all the economic activity on Ethereum which really just has grown so much bigger and then shifting that over you know was was I you've probably heard it is similar to swapping out the engine on a plane mid flight and the fact that it went off seamlessly I think is really shows how much homework and deliberation they put into it they did a number of test merges they realize like okay these are working well the you know deep bugs in the kind of tweak things and then the fact that it basically was flawless the fact that it was sort of like uneventful and how seamless it just went from block to block I think really shows that you know the delays were perfect that you know all the extra research in the the careful you know planning of the beacon chain and getting that going for it was a smart move yes small baby steps but no news is good news as they say

well no news is good news the merchandise was a major technical achievement that took years to come true and the fact that they made an uneventful it's nothing but remarkable asked whether your thoughts about this I mean Lorsch and she's the ultimate crypto podcast O. G. she does a great job of describing the complexity of the merge here and why the merges called emerge because the economic activity on the main chambers being merged with the so called B. can change this was the pilot chain for proof of stake all in a nice simple description all around here by Laura that's that's very right and the move to the upside for eve many hoped for has not materialized yet in fact on the contrary we've seen eats prices dropping a little so let's hear Laura expectations on the way forward

this is known as one of the biggest success stories for the Ethereum network but it for investors prices do look wearing this week you know now that the mother just happened where do we sort of go from here has the dust sort of been settled I say what I would say that it for anyone looking to put their money and any crypto you need to understand how their crypto works and you need to help understand how that fits with your own personal financial goals and your own financial picture and so you know what I'm gonna see here is very general it should not be taken as a financial advice for anybody buy it you know regardless of the macro environment the truth is like just leaving that aside that the monetary policy of Ethereum has changed dramatically and in a way that many investors view as something positive until this point Ethereum had a monetary policy of just you know inflating the supply of eve and that was used to basically pay miners who were stem and the issuance has dropped dramatically from about five percent inflation to about zero point five percent and on top of that there is a change actually happened a little over a year ago called the I. P. one five five nine and died also changed how usage of the network is tied to the value of ether and so now basically the more popular didn't even if hearing becomes and the more demand that there is on the network the the the higher the value of each could be because what's going to happen is that that demand will make will cause a certain fees to be burned and when you you know considering that there's this decreased issue actually even more will be burnt than is being issued and so throughout the last year or so ever since the I. P. hunt five five nine went through there's been a website called ultrasound dot money and they have a little meter where are they I would compare it you know the usage on the network at the time and then you could talk a little switch to see okay if we were to simulate this in a post emergent firemen or this new policy is in place of you know burning the fees a certain way and then that your that your dramatically reduced issuance then it will it would either be inflationary ArcSight deflationary with this amount of usage and I would show you you know like different times to be like oh this amount of youth would be burned if you know I it was this amount of usage interestingly before the merge for like a month or so before despite the new change it was actually still slightly inflationary because demand on the network has fallen so that's why I'm not saying it's definitely going to be deflationary from here on out like I said it'll depend on the usage but regardless the issuance of Ethereum has drastically dropped and that's where you'll see popular crypto investors such as Arthur Hayes who are previously was investment banker and he also was the co founder and CEO of that next he's very bowl she's on a very then you can read he has an amazing blog but you know he always just boils it down to that simple thing and I think you know for those for those for people who just want a simple explanation that is what you should pay attention to I love and this is the website that we can pop in and have a little play around now yeah you know what another thing that I haven't checked it since the merge which at the time of the merger and they were students demand on it you often couldn't even pull it up so I don't know I what they did with the little toggling thing now maybe it's just gone

it seems the lorries referring to supply shock happening with either ash could you please elaborate on the fumes burned mechanism in the why this deflationary system is so important so you know E. I. P. fifteen fifty nine that's the theory and improvement protocol one five five nine details how mining fees are split into base bees and tips and also how the burn mechanism works I think it's probably pretty technical stuff and not

of

a credible interest your audience but what I think is more interesting to hear is why post merge Ethereum's monetary system is now deflationary rather than inflationary and that's this Paul in the simplest terms it's because eve staking is more efficient in terms of cost in terms of energy then either mining so because speaking is more efficient than mining

validators

spend less than minors which means they require less compensation because their costs are lower therefore fewer if you're in need to be created to pay them probably a bit of an over simplification but that's sort of how I think about it the monetary base is expanding more slowly because there's not less need to pay miners it's a more efficient system and therefore you don't need the massive monetary expansion to keep the system going Paul also mention the worry about oversimplifying things we actually love it your are filtered to enlighten us with your insight so we appreciate it and of course you know with him does not operate in a vacuum so what happens here is that people aren't watching specifically people sometimes from the bitcoin community and the merge begets this question could bitcoin transfer from proof of work to proof of stake let's hear what Laura thinks about this

talking about Ethereum which is the world's second most valuable crypto assets we have to talk about bitcoin as well you know this is the bondsman off east moving to proof of stake affect BTC until what if you sort of spin on the community what they're saying that interestingly I you know I think most bitcoiners would say no it does not affect bit coin people never switch to proof of stake however I did a few interviews with mainstream media on Thursday the day of the merge and yes many of them asked me what does this mean that they claim will also move to proof of stake in it when I couple died against the fact that there are multiple governments and regulatory bodies that have expressed concern with the environmental footprint of the clean I do feel that this question will come up again in the future it may still be at that point that the bitcoin community is staunchly opposed to switching to proof of stake is probably going to bring this question up again like I said because there was regulation in Europe it didn't pass but it was some regulation that was concerned about this

are you still kind of learning about this and there are arguments a major prefer for change at major blockchain that uses proof of work with you if you're gonna kind of single out that type of consensus algorithm it because really the only one that matters so I noticed is sort of more cautious version of that and new York state where what they did was they put a ban on any new facilities that were using proof of work mining existing facilities in the state of New York that do proof of work mining can I keep going but they're going to do a study during this period so I think figure out essentially if they do you want to go forward with an actual ban so like I said when I look at kind of the regulatory environment interest in general the increasing concern that investors have about ESG issues that's why I wonder down the line could there be more pressure again who knows that's interesting all right I'm going to just take out point and move on to my next question actually which is it you know when I remember when the Ethereum muscle to happen by telling one of the tweets are he tweeted out was the merge will reduce worldwide electricity consumption by north point two percent basically it's just sort of saying like look even definitely call greener and I know you spoke to Justin Drake on your podcast as well and and experience energy use basically it's come out said that dropped by more than ninety nine percent so that's a big plus for the planet which is a good thing so I know you mentioned the debate about U. S. T. full so we'll do this sort of momentum and drive investment and more induction please this is something I have also been wondering for that very reason I'd now one of the biggest criticisms that people had a proof of work jeans like Ethereum org basically honestly for this sort of uneducated mainstream person who you know doesn't it follow all the nuances of crypto they they actually think that every single blockchain houses and permanent footprint so you know I do wonder will that mainstream person who isn't following every little last thing happening crypto really kind of understand that now this criticism is no longer valid at least of Ethereum I don't know you know when I look at the comments on news articles about crypto oftentimes I don't see as that level of understanding about the differences between the blockchain's ID see a lot more comments for people view everything encrypted with the same broad brush and so I am pretty curious if the everyday person will get educated on this and understand that but certainly if they do then yeah I do believe that one of the main criticisms I've seen of crypto will be invalidated at least when it comes to Ethereum and you know becoming the bitcoin community is working a lot and also online using renewable energy and they've been doing a lot of things to show how actually the queen could be used to make our renewable energy producers that are kind of the further away from the great but in places where things like solar and wind power are quite plentiful give them more I was weird like evened out revenues like help them when they demand on then on the greatest loan but it wind and solar are high to mine bitcoin and earn money and then the second died kind of peak energy usage is up they can shut off the miners send the money to the grid or the power to the great and so you know I see that they're doing a lot of things in this regard as well so you know I I think it's died big winners aren't you know it's not that they don't care about these issues are that they're not aware of these criticisms so much is they simply think that proof of work is the safer and more secure way to protected blockchain from attacks and so for that reason they like to stick with it but at the same time also reduce the environmental issues

well lots to unpack here ash what do you make of Laura's first answer do you think that bitcoin will succumb to ESG pressures and secondly why does the bitcoin community consider proof of work safer than proof of stake well I think Laura is right here yeah this is probably the easiest question you're gonna ask me all day Paul I don't think bitcoin is going to be switching anytime soon from proof of work and proof of stake out second question why because Bitcoinz proof of work protocol is considered highly safe highly reliable in many ways it's considered the gold standard of consensus mechanisms in the crypto space you know when I first got to coin desk I was having one of these very long technical talks about bit coin and the consensus mechanism with one of the editors it was a little bit confusing honestly at the time because I was pretty new to the space and I think he actually got confused and describing it to me he lost his place and he got a little bit flummoxed he just said something like well look forget all that just think about it this way everything in big point is about making sure that the network is secure that's it that's it that's all you need to know and you know it's funny because of the fact that he got confused in the in the explanation about how mining work he actually came upon that sort of simple truth I think in a very clear way which is bit coin is one hundred percent all about security it's been all about security from the inception it's all about security right now and I think in many ways as I said it is sort of considered to be the gold standard in the space I don't think the bitcoin community is ever going to be at well I shouldn't say ever but for the foreseeable future meaning years and maybe even decades to come it seems pretty unlikely that bitcoin is going to switch away from proof of work to proof of stake I just don't see it happening Paul dash it is like they say you know you don't fix what's not broken so that might be the case with bitcoin and what's next now that the merger has been completed that's the question everyone is asking okay cool we have a merge but what's happening next what is it two point oh for me so Elaine Lara got you covered guys here's an excerpt

I know that by cutting said there are five steps to sort of complete development of its stockholder rhythms says much oppose or whatever but very Dr CCS well we break down the every single one of them okay we got through the bulge I get that the next step is the surge and full from my understanding it's just along the lines of the blockchain's ability to store and access data and you know I want to know if you know anything about the next steps in regards to the suction it's something along the lines of the blockchain's ability to store and access data like I said but I'm hearing was like dank sharding I'm do I have to brace myself full for what is yet to come you know I actually did an interview right before this and after the interview that hosts that something like gosh I feel like I am half lost in half you know like trying to keep up and learning new things and and I said oh it's like that for everybody so yes there's a whole bunch of new terms and in fact what's super fascinating is that you know since it's similar to how the Murch went down there were times in appearance history where they had ideas around how to increase throughput on the blockchain how to increase that transaction capacity and it's still evolving and you know this idea of tanks running is actually relatively new one but essentially you know the problem with a blockchain with scaling it is that if you think about how I you know because we have this decentralized system that you know there isn't one company that's managing the ledger you know all these computers around the globe they're all managing the lettering and the if you're watching at this point is seven years or more than seven years old I do think about every second but you know that's a lot of data and so when you want to keep it to centralize its taxing for the different node operators and validators to keep the state of the blockchain stored and you can kind of separate that data layer from from the blockchain incision another they are like that helps to scale things so that's kind of the concept I don't have like a ton of technical details on really how they want to do this and frankly given the way things are what they merge they would probably change them at some point down the line when they get closer to it but but yeah that's that's it and the reason that they want to do this is because you know as we mentioned earlier usage on the Ethereum network has been extremely high at different times and when that's happened the fees have just been astronomical and it really prices out the everyday person and for community like Ethereum that is really this kind of inclusive community very open they want to be this decentralized computing layer for the world they don't want to have it be something where only Wales can use it because you know the transaction even you know I'm a journalist covering the space I remember I was trying to do a few experimental transactions on my own for like research or whatever and like for me it was really expensive you know it like I was actually paying more in fees yeah make in one transaction yeah I remember trying to stand after a Cup of coffee and I was like I think they just talking kind of con fees is a ten dollars in fees for your five dollar Cup of coffee that I just try to send to your address and he's like oh yeah this is an issue here relates yeah I actually paid ninety dollars for my kings of Leon and F. T. so I am not not an anti itself is only sixty five dollars so I ended up paying like a hundred and fifty dollar and I was like wow okay ninety two I mean there's a lot of things to get by for ninety dollars so you know anyway but the point is that's why the search is being prioritized and why yeah that's next on the road I remember when the magic happening everyone does ask questions tell me that's learned Gasteiz not quiet so I'm assuming with this next step hopefully we'll get that do we have like a certain time frame of when the surge is covering up and dare I ask does this much just happened last week you know I'm not sure I have not looked into nine the next thing that I do often hear a time frame on it is the the ability to withdraw your state's east which will happen in like six to twelve months yeah so I think that I love covering the spaces sometimes slowly and surely it is a safe way to go about things

and I couldn't agree more with Elaine a Laura if you miss future upgrades aren't easy to they just for most retail investors and that's why we're here today so in layman's terms the surge includes a Shanghai upgrade that will allow people to withdraw their state if any will scale the network then the verge will allow users to become network validators without storing lots of data then the purge will remove old network history and finally the splurge it's a fine tuning of all the preceded steps but ash I want to stop a second here on the verge and ask you why it is because there's such a massive step towards decentralization I don't know Paul I maybe a little bit over my skis here the technology but let's give it a shot so the verge is slated to you something called vertical trees which are similar to Merkle trees Merkle tree allows basically protocols to roll up a series of transactions into a highly compressed block of data a kind of a hash this cryptographic compression going on but that data can then be validated by anyone on the network and that represents all the transactions have come before it in the chain so vertical trees if you read the Tallis explanation are more efficient than Merkle trees at doing this that allows the network to become more decentralized because allows validators as you said to process more transactions with less storage space if you're really interested in this case went over decrypt what a great summary of it on twenty one July twenty twenty two which I drew on here and if you want the really long form explanation go check out the talent you Terrence more detailed analysis on his website from eighteen July twenty eight twenty one called simply vertical trees it will probably melt your brain Paul sounds good I'll have my coffee ready for it

how long does it take to tackle the home project with Angie you can cross that off your list before this ad is over just tell us what you need indoor outdoor repair or redesign and we handle the rest sending a top pro to get it done you don't have to lift a finger accepted tap the screen or click the mouse plus entry is free to use so bring us your next home project and we'll bring it home download the app for go to Angie dot com that's A. N. G. I. dot com to get started

and finally Elaine asked Laura about the what else she's looking at right now let's listen in

I really just wanna sort of tickle your brain about what sort of stuff but you sniffing out next I will be the next biggest concern for the digital asset space in the next few coming month but also what is the next sort of big headline of that is that coming up if there's just so many more areas of regulation that needs to be decided and that are kind of being contested I guess you could say so that for me is really what I'm watching because I can kind of make or break the direction of crypto especially in the United States which you know traditionally has been at one of the major financial capitals of the world plus definitely I would say is the capital of all techno technological innovation you know like Google Facebook apple Amazon and Netflix I mean just like pretty much nearly every single major tech company in the world is an American company and so there's this perception that you know America is on the bleeding edge of innovation but frankly up until this point in crypto a lot of crypto people would say that the U. S. actually it lags behind it and not in fact certain regulators just don't either don't get it or hostile to it for reasons that they feel are either based on a misunderstanding of the technology or simply irrational like I show some ignorance or something like that so you know there's just a number of these issues I would say that it I probably that one of the biggest ones in the west around whether or not tokens are securities and you know this is just I see this playing out in so many different friends but I think a lot of the entrepreneurs feel that as long as the government or regulators take at what they view as an outdated position is sort of you know let's apply the the old laws before crypto to this new space they feel that if that happens it will completely stifle innovation here and we've already seen a number of American entrepreneurs that they just base their operations offshore in the two night allow US citizens to partake in what they're building and obviously this is completely different from how the previous tech revolutions that happen so that's one that I'm watching

that's great I really appreciate having Laurie with us into the show because her expertise and insights about different crypto topics are invaluable in times like this ash just two days ago with the SEC claimed as part of a lawsuit that all if your transactions fall under US jurisdiction and we reported this unchanged until yesterday's show so let's remind our viewers what this could mean in terms of regulation yeah I don't really know what to think you're Paul there's one paragraph in one filing in one case were SEC seems to imply well something I I guess it means maybe it may be that SCC believes that they have regulatory authority over the east network again maybe at least that's how it's being interpreted as most pessimistic by folks who are passionate about decentralization and libertarian spirit of the crypto space if you're kind of centralization of authority I read the sentence from the filing this comes from a case brought by SEC that dates back are from July twenty eighteen when a crypto influencer conducted what's been characterized as an as an ICO or initial coin offering which SEC in their case alleges constituted an unregistered security offering so what does it mean I know this starts to sound a little bit like a religious debate how many angels can dance on the head of a pin but let me just read you the quote here the US based investors in Bolinas pool that's the are responding here your pool irrevocably committed to the transaction went from within the United States they sent their theory and contribution to Bolinas pool at that point their Ethereum contributions were validated by a network of nodes on the Ethereum blockchain which are clustered more densely in the United States than any other country and here's the the here's the real sort of culmination of the quotation quote as a result those transactions took place in the United States there are those who believe that this is sort of implying the SCC believes that they have jurisdiction over all of these transactions but but Paul you know I'm just a guy who asked to be questions I have to like I have to like come until secret about you hear you in fact are a lawyer what do you think about this well ash in terms of legal the only thing I can say here today is that any of this is financial advice just for entertainment or you know educational purposes

only

but the only thing I know is that it's time to move to the take aways so here's what I learned today in what I think viewers can take away from Elaine's conversation with Larsen she says that the merge worked seamlessly and was uneventful which is a good thing she points out she points out that one of the biggest changes in the camps monetary policy issuance of new eve has lower significantly post merge to a point that the token could be deflationary rather that inflationary this means that investors need to reassess how they view this particular asset also well it's unlikely that bitcoin would follow if you're mean to change into a proof of stake Laura things that the future regulatory pressure could see bitcoin adopters reassess this so it might happen well time will tell and she says the mainstream media has not yet paid much attention to with the union's new much lower environmental

footprint

that means that the average Joe or the average mainstream or the average retail crypto investor is hasn't on his head that if you M. is now more like environmental friendly that say and Laura points out that is not the end of the road for Ethereum development more upgrades and changes are coming so stay tuned for more theme and finally she sees regulation that's the next big thing in crypto and we always keep an eye on the latest regulatory developments so keep tuning in under real vision crypto daily briefing for more and moving on the final segment of our show my favorite here we have the viewers questioned ash are you ready let's do it awesome so okay the first one comes from Teheran crypto on YouTube awesome sorry before we start people on YouTube don't forget to smash the like button for the YouTube algorithm hit the bell subscribe to the channel will keep bringing this show way more content more value and worth switching to

a

daily show so stay tuned for more so the question else that's right

passion

is there a bigger macro headwind for bitcoin then the D. X. Y. it just keeps climbing can bitcoin grow in the face of a straightening dollar I tear this is a great question I something that we've talked about here on the show before yeah this is really about the causal nature of what's happening here is a causing B. is B. causing a or both a and B. independently correlated to some third factor maybe see I think in this case what we're seeing here is central bank policy that's influencing the rising dollar on one hand and also the suppression of crypto prices on the other liquidity is being withdrawn from the system the dollar is rising because folks in FX markets see the monetary policy in the United States and also flight to quality bid perhaps in that is something that is investment that they believe is interesting for them or trade that they believe is interesting for them so I don't really think in my view at least this is just my opinion that it's the strengthening dollar per se it's what central banks are doing that's causing the dollar rise and also causing crypto prices to fall Paul that's right thank you ash and actually if you're interested in to checking the power of the dollar I would recommend you check on real vision the BDO friend Johnson his whole milk shake dollar theory it's amazing check out the real vision and Alan learned on YouTube has his next question for you ash sailors purchase is being celebrated by bitcoiners while it may not increase centralization to two bit coins proof of work in nature it will increase wealth concentration I believe that the wealth concentration may hinder adoption of bitcoin what are your thoughts well this is a great question it's a very sort of philosophical wanted something that we've heard debated before I mean you know this is kind of a challenge I don't get myself in trouble with the big corners here but look there is this risk that you could see a concentration of wealth you know particularly because there is no inflation in in the in the

loop

there is some inflation but it's a very sort of stable predictable inflation in the in the bitcoin ecosystem and the the level of that inflation is incredibly low in terms of the flow relative to the overall stock I think it is a challenge in in in theory at least we're just gonna have to wait and see on this one but I I understand the concern and I think that serious people have raised this and question precisely that issue as has Allen points out that less of a concern about decentralization because of the proof of work math guy mechanism African senses then we would see for example in Ethereum but yeah I think I think it is a concern and and and you know what happens for example I would people are most passionate about bit coin you know you'll hear calls about bitcoin one million declined a hundred thousand you know what happens when that price keeps rising and people who did not have the opportunity to get in at lower prices like what do they do so I think it I think it is a a philosophical question I'm sure big winners have answers to these questions I'm sure if we had one of them here they would tell us why in their view they don't see this as a problem but I think it is something that is probably a concern I think that's reasonable to say and some it we should think about something we should think about it well once the stock to flow model reach its predictions and those levels will probably see as you said once those prices go high what happens with bit coin next question comes from Toby J. on YouTube again after the merge what is the total supply of Ethereum and what percentage is the state so I was a Ripper reported a city estimates that the issuance of new Ethereum has fallen by ninety percent since the merger around six hundred thousand a year according to Ethereum dot org fourteen point five million dollars up forty point five million of east is state right now I think that's the number of total coins and not the dollar value Y. charts puts the total each supply at a hundred and twenty eight million so quick calculation here around twelve percent of eat his steak right now based on those numbers and thanks to our crack producer archer for coming up with that data

on the fly

shout out to Arthur and well thanks so much ash it's always ladies and gentleman with you the great ash Bennington thanks for all your insights today well that's it for today's show thank you for watching guys as always don't forget to subscribe on YouTube channel and smash the like button and hit the notification bell so you know when we go live I remember this is your show guys we want to hear from you what's working what's not your feedback so please drop a comment down below and let us know your feedback as well Powell said in I'm subscribing to those words I'm not too proud to beg subscribe to our channel we're doing a lots of content for you guys so stay tuned for more and let us know what guests do you want to see what theme should we cover we appreciate you sharing your time with us today and tomorrow we got Ben calling with the latest technical analysis for all of you who love charts so make sure to subscribe to real vision dot com forward slash crypto and this gives you access to the very latest content and that's always best flavor of all it's free see you tomorrow live on the real vision crypto daily briefing

00:00:00
00:00:00