17 Burst results for "Solana Nfts"

"solana nfts" Discussed on CoinDesk Podcast Network

CoinDesk Podcast Network

03:54 min | Last week

"solana nfts" Discussed on CoinDesk Podcast Network

"U.S. is also the only leading exchange that supports both Ethereum and Solana NFTs. When you trade NFTs on FTX, you pay no gas fees. Download the FTX app today and use referral code breakdown to support the show. Now we go back to September 12th, 2018, with a piece that I wrote back in the glory days of medium and the 2018 crypto winter. When people would actually, you know, read stuff. The piece was called complexity theater. And it was written at a time not this similar to now. When people were finally accepting that we were in a bear market, and it was time to learn the lessons of the last cycle. Complexity theater is when the presentation of ideas is complicated in order to make those ideas seem more valid. It is not limited to the crypto space, but has wreaked a very particular havoc here. Luckily, it doesn't have to be this way. In bull markets, people spout wisdom like oracles of Delphi and lay claim to success as though blessed by divine sight. Down markets, meanwhile, favor the critics who deftly pick apart the intrigue and excess of the previous phase. As important as price resets are, this critical review process has an equally important role in the long-term health of any asset class. Through this process, we reset norms and expectations and hopefully provide some bulwark against repeating the same mistakes again in the future. One standard of the ICO era that has been recently drawing ire is the white paper. Linda she recently tweeted, the Bitcoin white paper was 9 pages. Your white paper doesn't need to be ten X the length to get your ideas across. If it does, I think you're trying to build too many things. Token projects started writing white papers at the outset of their projects for one reason. Satoshi did it. Now it's perhaps worth noting that Bitcoin didn't actually use the white paper to raise money, but here we are. Holding cynicism aside for a second, there are some good reasons that white papers stuck as a communications tool. What you can explain in a pitch deck is limited, especially when it comes to exploring new technologies, and new economics of human organization. There's a lot to be said for supplemental collateral with a bit more room for exposition. As white papers moved away from their technical roots, however, and into the center of the fundraising process. They became less about exploring new concepts with peers, and more about convincing investors to buy. That shift brought a tendency towards complexity that was less elucidation and more obfuscation. Complexity theater is when ideas are explained in an overly complicated way in order to make those ideas seem more robust, intelligent, and worthy of attention. Importantly, complexity theater can be intentional or accidental. While intentional complexity theater is more odious, accidental complexity theater can actually be more damaging. The ICO craze was a wash and complexity theater of both the intentional and accidental variety, and demonstrates why it's not just an annoyance, but an actual problem for the crypto space. First, complexity theater has higher stakes when it happens in the context of a mass expansion of retail participation in risk capital. In professional markets, one could argue that complexity theater is simply a sales tactic that experience investors should be able to see through. But crypto wasn't a professional market. In fact, a meaningful part of the ICO boom was attributable to pent up demand on the part of mainstream investors to participate in the early stage technology investing that they had been locked out of due to accredited investor rules. What they found in crypto was an emergent technology field that is by nature immensely technologically complex. It is so genuinely complex in fact that professional investment firms are reconfiguring themselves by hiring developers and technical experts. For some ICO projects, complexity theater became an intentional strategy to shock and awe investors into investing in things they didn't fully understand. To make the problem worse, even projects that weren't trying to prioritize complicated explanations over substance, inadvertently contributed to an overall market attitude where perception of complexity was rewarded. Over the ability to clearly and concisely articulate how new technology would work and for whom. The great irony of complexity theater is that presenting complicated ideas simply is

Solana NFTs new economics of human organiz Delphi Satoshi Bitcoin U.S. Linda
"solana nfts" Discussed on CoinDesk Podcast Network

CoinDesk Podcast Network

02:00 min | Last month

"solana nfts" Discussed on CoinDesk Podcast Network

"One of the largest exchanges in the U.S., FTX U.S. is also the only leading exchange that supports both Ethereum and Solana NFTs. When you trade NFTs on FTX, you pay no gas fees. Download the FTX app today and use referral code breakdown to support the show. The labor proposition. Being part of something greater than oneself offers a source of meaning and purpose. The approach to open-source contribution in the tech sector has a long and storied history of people who have shared their specific knowledge or skill and expected nothing in return but the satisfaction of work and its potential impact. Contributing to open-source projects, however, is difficult for most people who are exhausted, trying to make ends meet to pay bills by working their day jobs. As a result, creators and contributors for many open-source projects are well intentioned volunteers who have limited time and attention to allocate. The paradox here is clear. Altruistic projects often can not be bankrolled by those who would most be helped by those innovations. Physical and emotional constraints, economic barriers, class antagonisms, and scarcity of leisure time limit contribution and support from the individuals whom the projects are intended to benefit most. The accumulation of wealth. In a proprietary organization, considerable work is extracted from the worker, which is not matched in compensation. The pursuit of wealth is not inherently bad, and the idea that successful wealth creation must be unethical, selfish or greedy is false. Predatory profit motives are the problem. When a hierarchical system of revenue and earnings becomes more important than an equality of social prosperity, the system grows inhumane. A common herd word in the world of open-source and cryptocurrency is meritocracy. A meritocracy ensures that work of value yields wealth of equal value. In other words, it's a system that should reward members strictly based on their contribution towards the system's goals. Sadly, in a proprietary system whereby economically or politically advantaged actors can opt in to increase wealth without contribution, meritocracy is impossible. Once individuals are tricked into mistrusting open-source methods as a potential pathway to wealth, they face a sobering truth.

Solana NFTs U.S.
"solana nfts" Discussed on CoinDesk Podcast Network

CoinDesk Podcast Network

05:54 min | Last month

"solana nfts" Discussed on CoinDesk Podcast Network

"Minimum thieves, no ACH transaction fees, and no withdrawal of these. One of the largest exchanges in the U.S., FTX U.S. is also the only leading exchange that supports both Ethereum and Solana NFTs. When you trade NFTs on FTX, you pay no gas fees. Download the FTX app today and use referral code breakdown to support the show. So let's try to bring this back to a discussion of what is happening right now. Where we started that Dixie was up to its highest point in 20 years. However, the big question and topic of discussion really for the last few months is whether this represents U.S. strength or just weakness in the other currencies, namely the Euro and the Japanese yen. Put differently, are people fleeing risk markets for dollars, or are they fleeing other currencies for dollars? Or is it some combination of both? So with that question in mind, let's look at the Euro. The Euro fell to its lowest level in two decades on Tuesday. For a while it looked like it was heading to €1 to $1 parity, but it ended up stopping just short. In total the Euro is down 9% against the dollar so far this year. Now the background of this is pretty clear. Eurozone inflation hit a record 8.6% in June across the entire economic zone. Some areas were hit harder such as Spain at 10.2%. The big story here is, of course, energy inflation, which hit 41.9% for June compared to 39.1% in May. Unsurprisingly, this is related to Russia's war in Ukraine. That said, there's also a policy dimension to this as well. Despite all of this inflation, the ECB still hasn't raised interest rates at all. With the Central Bank's key interest rate still slightly negative and nominal terms and deeply negative and inflation adjusted real terms, the ECB faces in some ways an even more difficult problem than the fed. It has to hold together the monetary union as well as managing monetary policy. Spreads between interest on German and Italian debt have blown out to 2%. Now the ECB appears to believe that they should enforce a 0% spread between Eurozone sovereign debt. To that end, they announced last month they would create a program to purchase weaker sovereign debt. Many commentators point out that this looks suspiciously like doing more QE. And whatever it actually is, the market is super skeptical. Charlie biello writes, Eurozone inflation has moved up to 8.6%. Its highest level ever. Meanwhile, the ECB is still holding interest rates at negative levels. This is perhaps the greatest disconnect between easy monetary policy and unabated rising prices that the world has ever seen. But what about Japan? Japan has been attempting to peg rates at 0.25% all the way out to the ten year bond. This is part of the policy of yield curve control that they've had since 2016. Now a quick note on this term yield curve control. QE quantitative easing, which has been the fed's strategy over the last ten years. It's about injecting liquidity by purchasing bonds on the open market. This brings the prices of those bonds up by creating a new source of demand and in so doing reduces longer term interest rates and borrowing costs. Importantly though, when the fed does this, they aren't pursuing a specific long-term rate. Yield curve control, on the other hand, is when a Central Bank sets a specific long-term interest rate target, and buys as much as it takes to actually get there. During the last month, the yen has dropped to a 24 year low against the dollar. Down 4% in June and overall, 16% for the year. The Financial Times wrote following a week of setting fresh 20 year lows, the yen continued its descent as traders bet that the bank of Japan will remain the only major Central Bank to maintain ultra loose monetary policy despite its counterparts in the U.S. and Europe, entering an interest rate raising cycle. Also from FT quote on Friday the bank of Japan, ministry of finance and financial services agency issued a rare joint statement expressing concern over the yen's steep slide against the dollar. The yen has fallen more than 20% against the dollar over the past 12 months. And this brings us back to the original debt servicing concern. Jim Bianco in April of this year wrote the biggest story that no one is talking about is the incredible pressure building in the Japanese government bond and currency markets. What happens if it blows up? The bag of Japan has been operating with yield curve control since September 2016. This Japanese government bond intervention is coming with a high cost. The Japanese yen has been collapsing. Awakening yen is very bearish for the U.S. ten year treasury. Japan owns more U.S. treasuries than any other country even China. To continue buying U.S. treasuries takes more and more yen because their currency is weakening against the dollar. So the BOJ can prevent the ten year Japanese government bond from rising or the yen from collapsing, but they can not do both. For now, the BOJ picked preventing the ten year Japanese government bond yield from rising. But if the yen keeps weakening, will the markets force them to abandon yield curve control? A couple more economic spotlights before we head out. Much of the focus during this Eurozone weakness has been on Germany. They are under pressure from increases in natural gas prices that are leading to limits on industrial production. In May, Germany printed its first trade deficit in 30 years. Indeed, it's consistently high level of export surplus had led it to be referred to as the engine of Europe. It now appears that that engine is grinding to a halt. In May they saw a trade deficit of €1 billion compared to a surplus of over €15 billion a year ago. Yasmin fahimi, the head of the German federation of trade unions, said over the weekend, entire industries are in danger of collapsing permanently because of the gas bottlenecks, aluminum, glass, the chemical industry, such a collapse would have massive consequences for the entire economy and jobs in Germany. In the UK now inflation is also at record levels. Inflation hit 9.1% in May, which was the highest level in 40 years. Energy and fuel inflation are already excessively strong and food inflation is forecast to rise to 15% over the summer. Unlike the ECB, the Bank of England has already aggressively hiked rates.

ECB U.S. Solana NFTs Japanese government BOJ Central Bank fed Charlie biello Japan
"solana nfts" Discussed on The Breakdown with NLW

The Breakdown with NLW

08:03 min | 4 months ago

"solana nfts" Discussed on The Breakdown with NLW

"Fees. One of the largest exchanges in the U.S. FTX U.S. is also the only leading exchange that supports both Ethereum and Solana NFTs. When you trade NFTs on FTX, you pay no gas fees. Download the FTX app today and use referral code breakdown to support the show. With that, let's shift to something that had everyone fired up and that's Facebook or meta's fees for its new horizon worlds platform. In a blog post on Monday, meta said that it's going to be testing virtual sales inside horizon worlds. Important background context is that Zuckerberg has previously criticized Apple for its 30% in app fees. In a November post on exactly this topic, he said quote, as we build for the metaverse, we're focused on unlocking opportunities for creators to make money from their work. The 30% fees that Apple takes on transactions make it harder to do that. So we're updating our subscriptions products are now creators can earn more. Then this week from Business Insider, quote meta charges a platform fee of 30% for sales made on meta quest. It's virtual reality system, which was formerly known as Oculus. On top of that, horizon worlds met as metaverse system will charge a 25% sales fee. This means metal will take a cut of up to 47.5% from the sale price, leaving the seller with 52.5%. Insider was basically like weight, are you serious? And so reached out to the company for confirmation of this math. That math was indeed confirmed by a spokesperson. Quote, if a creator sells an item for a dollar, then the meta quest store fee would be 30 cents, and the horizon platform fee would be 17 cents, 25% of the remainder, leaving 53% for the creator before any applicable taxes. Over time we plan to bring horizon worlds to more platforms and so the platform few won't always be going to meta. S horizon world rolled out to more platforms like mobile, we expect those platforms to charge their own feet. The horizon world fee, which is 25% of the remainder would be applied after any relevant hardware platform fee has been applied. And then to top it all off Vivek Sharma met his VP of horizon, told the verge, quote we think it's a pretty competitive rate in the market. We believe in the other platforms being able to have their share. So of course, everyone was like, are you effing kidding me? Starting, by the way, with Apple. Fred sanes and Apple spokesperson said in an email, beta has repeatedly taken aim at Apple for charging developers a 30% commission for in app purchases in the App Store. And if you small businesses and creators as a scapegoat at every turn. Now meta seeks to charge those same creators significantly more than any other platform. The announcement lays bare met as hypocrisy, goes to show that while they seek to use apple's platform for free, they happily take from the creators and small businesses that use their own. The crypto crowd was even more brutal. This has definitely become a rallying cry for many, including punk 6 5 two 9. He writes in one of his classic threads, tweet one, 60 crying laughing faces, tweet two. I present to you the meta economic model. Step one pretend NFTs, centralize in game objects basically. Step two, 47.5% transaction fees. Yes, 47.5% to drop objects into here. 47.5%. 47.5%. So long as we are not regulated out of existence, IE preserving non custodial wallets, we're going to win by default. 6 5 two 9 couldn't help himself though and he just kept going. 47.5% meta take rates on digital goods are a pretty good reason to push for an open metaverse, even if you don't believe me on all the risk of dictatorship stuff. State of tech, in crypto, 2.5% transaction fees are outrageous. Let's launch ten competitors this year to drive this to zero. Web two. We think a 47.5% transaction fee on digital objects is pretty competitive to be honest. Government. How can we protect consumers from crypto? Now, I'm obviously adding the voices to match the intonation. But I think that the point is dead on. Part of the upside of unfettered markets is that they create competition that makes it impossible for this sort of virtual exploitation to take place. Something that the only possible way that Facebook wins because of this is regulation. Maya's Khan writes Mark Zuckerberg proposing a 50% cut of NFTs on meta, feels like the beginning of a prolonged regulation war between crypto natives and corporations looking to profit from it. However, this doesn't stop some people from being scared. D.C. investor writes while I enjoy trolling meta being out of touch, the proper way to assess the 47.5% zuck tax is based on total addressable markets. IE if meta offers more than two X earnings pre zuck tax potential for a creator versus a public chain that it may make sense for a creator to use it, in short, the only answer is scale. Importantly though, the web three crowd in the open metaverse kids aren't just competing with meta. It was also announced this week that LEGO and Sony are pumping $2 billion into Epic Games the creators of Fortnite to build a metaverse. Keep in mind that Fortnite has arguably been host to the biggest metaverse experiences yet, such as the Travis Scott concert in Fortnite a couple years ago, which saw 12.3 million concurrent users at the concert and 27 million overall. There is a lot more respect and fear in this announcement. 6.529 again says just in case we are wondering how much we need to scale up to be competitive. Alex Krueger writes Epic Games as officially entering the metaverse race. This will be huge. NFT trader the essay says smart money is still pouring into the metaverse and NFTs. However, they're investing in companies with proven experience, prototypes, and shipped products. Retail investors need to wisen up and hold the whole crypto and NFT industry to this standard. Finally, D.C. investor again wrote quick and dirty metaverse predictions thread starring a, meta slash Facebook, B, Epic Games, C Twitter, and D Ethereum L twos and other public blockchains. A meta slash Facebook. We'll build off of social apps and VR platform to push a controlled and mostly closed ecosystem. We'll push their own private consortium blockchain with long-term goal of global financial domination via the metaverse token Congress will probably ignore Libra redux. B Epic Games will push game centric VR metaverse targeting mostly gamers. Focus mostly on in game items and then being able to use or flaunt those in social apps. We'll probably create a more open standard for any game publisher to join. Start as a private chain, then use public. C Twitter doesn't realize it's actually the center of the current online metaverse because most of the org do not think this way. They will likely squander everything they could have from this preeminent position and will just remain a 280 characters post app. D Ethereum, et cetera, will remain the home of the organic soul pushing online economic interaction forward. We'll be home to the highest value artifacts as lower cost grows on L two and other chains. Epic will probably integrate it eventually. Facebook will only do it if forced by others. Still early days and things could change dramatically. By the way, I think trolling on metaverse means nothing is wrong. I get that it's amorphous now, but it's obviously this is going to grow into something. Crypto has shown the power of permissionless or relatively permissionless online economic interactions. There's no going back. Now I thought D.C.'s thread was interesting to close on, especially given what we've learned about Twitter's potential future since he wrote it. Would a private Twitter under the banner of Elon Musk be more or less likely to be at the center of the growing metaverse? I don't know, but it's a fun thing to think about. For now I want to say thanks again to my sponsors next to IO, arculus and FTX, and thanks to you guys for listening. Until tomorrow, be safe and take care of each other. Peace. Hey breakdown listeners come join coin desks consensus 2022. The festival for the decentralized world this June 9th through the 12th in Austin, Texas. This is the only festival showcasing and celebrating all sides of blockchain, crypto ecosystems, web three, and the metaverse, and is designed for crypto newbies, investors, entrepreneurs, developers, and creators. Don't miss speakers like Kathy wood, SPF, CZ, punk 6 5 two 9 and Joe lubin to name just a few. Use code breakdown to get 15% off your pass at coindesk dot com slash consensus 2022..

Apple Solana NFTs Vivek Sharma Fred sanes Facebook U.S. Maya's Khan Zuckerberg meta
"solana nfts" Discussed on The Breakdown with NLW

The Breakdown with NLW

11:05 min | 4 months ago

"solana nfts" Discussed on The Breakdown with NLW

"Crypto using three factor authentication, providing a simpler, safer and smarter way to store, buy, swap, send and receive crypto. Arculus is offline cold storage. Your private keys are encrypted on the Oculus keycard and are never online. Stay safe from hackers with no cords, no charging, no Bluetooth. Just crypto security made simple. By Oculus on Amazon today. The breakdown is sponsored by FTX U.S.. FTX U.S. is the safe regulated way to buy and sell Bitcoin and other digital assets. With up to 85% lower fees than competitors. There are no fixed minimum fees, no ACH transaction fees, and no withdrawal fees. One of the largest exchanges in the U.S. FTX U.S. is also the only leading exchange that supports both Ethereum and Solana NFTs. When you trade NFTs on FTX, you pay no gas fees. Download the FTX app today and use referral code breakdown to support the show. For what it's worth, I also think that the Biden narrative is also dumb. Ted Cruz tweeted The White House is now expecting shocking inflation numbers. Here's the list of the Biden and men's ever shifting denial of reality about inflation. It's not happening, it's transitory, it's a high class problem. It's a good thing. It's Putin's fault. It's Biden inflation. This is clearly also political. It's denying any role that the Trump administration, which oversaw the initial round of COVID stimulus and Republicans who supported those efforts might have had as well. It's a term that when you hear it, you can pretty quickly and comfortably assess the political objective of the person using it. That said, not being willing to call it Biden doesn't mean that this administration should somehow be free from blame. There has been a long period after Trump and after the first wave of COVID, where decisions they've made or not made have impacted inflation, and at this point it's clear for the worse. The messaging has been bungled from the beginning. The ironic thing about the transitory inflation label is that what they were really saying was a technical argument about the roots of inflation. They were talking about a supply demand mismatch as people came out of lockdowns. They were talking about supply chain disruptions as businesses that had been offline tried to come online. Those things have seemingly pretty clearly been significant factors in producing this inflation. But the language of transitory does three things. One doesn't actually explain those things that they were trying to say. Two, it gives an inherent sense of dismissing this as a problem just by nature of the word transitory and three it creates a sense of time limitation that could easily be disproven. This last part was especially silly to do, given how much was completely unknown about the context we were moving into. We'd never had a global pandemic with a host of mutations and waves in a modern interconnected global economy, and we certainly had never dealt with shutting down the entire world economically at the same time. In a situation that literally no one has experience with. Maybe choosing a language of certainty and time boundedness wasn't the best idea. Indeed, ultimately what the transitory language amounted to was a bet. The fed and the administration that parroted the line made a wager that inflation would resolve before calling it transitory made them look dumb and started extracting a political cost. They lost that bet and every narrative shift since from its greedy corporations taking advantage of this moment to extract more from you to the latest Putin's price hike have just been attempts to dig out from the original sin of calling inflation transitory in the first place. It makes me think even more about how damaging it is that fed's major tool isn't monetary policy, but media and self fulfilling prophecy. With the world being a better spot now if the fed had said, listen, here what we believe, the root causes are of this inflation. Supply demand mismatches, exacerbated by supply chain disruption. Notably, this means that the inflation we're seeing isn't yet the pernicious spiral of higher wages that create higher prices that create higher wages, et cetera, but we're watching. Given the nature of this inflation, it should be temporary. It should work itself out as supply chains resolve and people level out their demand. The problem is we're in totally uncharted territory, and we have no idea how long that will take. Given all that we're in a tough spot, keeping our foot on the gas and monetary support could make inflation worse if it takes longer to resolve than we think. At the same time, recovery from economic downturns is always worse for the poor. And by keeping up more support, we hope we can get more people in jobs faster than in past recoveries. Now, of course, I realize that this is super easy for me to say in retrospect that politics especially in our world doesn't work like this. That it's equally likely that everyone would then be shouting at the fed for admitting they didn't have any idea what they were doing, and that four, even if they had that level of transparency in their public discourse, they still might have made the wrong decisions. But I don't know. I think having the humility to explain exactly what was going on and what they didn't know and why they were making the decisions they were without relying on a buzzword like transitory might have led us to a different place. In any case, this is where we were on Monday night. So what actually happened with this inflation print? Remember February's game had been 7.9% and economists were expecting between 8.2 and 8.6%. What we got was 8.5%. The highest year over year inflation jumps since 1981. Month over month was 1.2% the highest monthly jump since 2005. Gastro half of that cost increase, but food was also up. The core CPI month over month was the only bright spot that anyone tried to hold up. Core CPI gets rid of food and energy, which are seen as more volatile and increased 6.5% year over year, but only 0.3% month over month instead of the expected 0.5% month over month. Remember, a lot of the market's reaction to any given news is not based on the raw numbers, but instead based on what the market expects. So the 0.3% instead of 0.5% was seen as a victory. The core number came in unexpectedly lower because of the biggest drop in used vehicle prices since 1969, as well as some amount of deceleration of growth in other categories. There was a lot of attempt to spin that one as a positive, although Nick Carter was not having it. He tweets, inflation is 8.5%, and some economists are celebrating that the second derivative of core prices, the rate of change of the rate of change is negative. Prices didn't decline, they still went up, but the rate of increase in the specific subset of prices wasn't quite as rapid as the previous month. Did anything get cheaper heavens know, things are getting more expensive, just at a slower rate than before. For a subset, feel better, now speaking of reactions, there was a lot of breaking apart of the full year over year list of price increases. Gas up 48% electricity 11.1% meat, poultry fish, 13.8%. Milk 13.3% eggs 11.2% bread 7.1%. Coffee 11.2% used cars even with that decline, 35.3%, and so on and so forth. In terms of people feeling the pinch wages continue to not be able to keep pace. Lisa Abramovich from Bloomberg writes average weekly earnings on an inflation adjusted pace are declining by the most in data going back to 2006, highlighting how far wages are lagging behind consumer price increases. Many honed in on the housing cost measures as a particularly egregious departure from the reality of the situation that people actually face. Michael Burry of big short fame says CPI says housing costs rose 5% last 12 months. Wrong. CPI would be 12% using real world nar housing data. Bureau of labor statistics has smoothed out housing numbers forever because home prices have been a problem forever. Wall Street silver and many others pointed to the difference between the CPI rent increase of around 5% and more market based indexes like Zillow's rent index, which suggests that rents have increased 16.8% year over year. And then of course there are a lot of people who are just looking to what comes next. Market analyst David Tracy writes BlackRock CIO on Yahoo finance today. Rates would need to go to 3.5% before we worry about stock market valuations. Inflation is good for stocks. Remarkable comments. Alan Levin said the CIO at overlay Capital Partners writes the 60s and today are in completely different economic landscapes. 60s was a lightly indebted aspiring young country that hadn't tasted prosperity. Money supply was steady and velocity strong. Today, fat old lazy complacent heavily indebted money velocity is dormant. You will not have a demand side shock where too much money is chasing too few goods. This massive indebtedness will return us to secular deflation once the severe acute inflation is in the rearview mirror. Adam taggart the CEO of wealthy on says, I think today's march print is likely the peak and reported CPI. Do mostly to year over year comparisons get tougher in April, rate hikes and quantitative tightening fed more serious than many think, fast slowing GDP. I think disinflation will be the theme for the rest of 2022 and likely deflation for 2023. And then of course you're hearing a lot of these stagflation word. A piece in Bloomberg today stagflation risk has investors sinking billions into hedges. Europe seen facing a regime of high inflation and negative growth. Quote, it's the next big market call that could enrich traders across Wall Street. The raging global energy crisis and ever more hawkish central banks not key economies into 1970s style stagflation. It's a long shot for now, but anxiety is building among money managers that this market scenario out of control inflation just as growth slumps will eventually come to pass, especially in Europe. Indeed a Bank of America report just out also shows the highest stagflation expectations since August of 2008. I think this is something we'll have to come back to. For now, I think the takeaway here is that no matter how much the Biden administration wants it to be the case, Russia has not displaced inflation as the key macroeconomic story, at least when it comes to markets. Indeed, if anything, the jockeying is to understand if and how Russia's war in the Ukraine is impacting what is really in the driver's seat, which is, of course, inflation. One thing to watch I believe in the coming weeks is to see if we start to see the beginning of demand destruction. If we actually start to see people make big shifts in their consumer habits. To some extent that's already happening, but I wouldn't be surprised if we start to see a lot more focus on that from media in the weeks to come. For now I want to say thanks again to my sponsors, nexo IO, arculus and FTX, and thanks to you guys for listening. Until tomorrow, be safe and take care of each other. Peace. Hey breakdown listeners come join coin desks consensus 2022. The festival for the decentralized world, this June 9th through the 12th in Austin, Texas. This is the only festival showcasing and celebrating all sides of blockchain, crypto ecosystems, web three, and the metaverse, and is designed for crypto newbies, investors, entrepreneurs, developers, and creators. Don't miss speakers like Kathy wood, SPF, CZ, punk 6 5 two 9 and Joe lubin to name just a few. Use code breakdown to get 15% off your pass at coin desk dot com slash consensus 2022..

Biden U.S. fed Solana NFTs Ted Cruz Trump administration Putin
"solana nfts" Discussed on The Breakdown with NLW

The Breakdown with NLW

08:06 min | 4 months ago

"solana nfts" Discussed on The Breakdown with NLW

"Looking for ways to step up your crypto game, then go with nexo. For starters, you get free crypto for each purchase or swap. How about earning guaranteed yields up to 17% paid out daily? Ideal for you hardcore HODLers. You don't even need to sell. Instead, borrow instant cash against your assets. Get the most out of your crypto, with nexo. Add nexo IO. That's N EXO dot IO. Meet arculus, the next generation cold storage wallet. Arcu was secures your crypto using three factor authentication, providing a simpler, safer and smarter way to store, buy, swap, send and receive crypto. Arculus is offline cold storage. Your private keys are encrypted on the Oculus keycard and are never online. Stay safe from hackers with no cords, no charging, no Bluetooth. Just crypto security made simple. By arculus on Amazon today. The breakdown is sponsored by FTX U.S. FTX U.S. is the safe, regulated way to buy and sell Bitcoin and other digital assets. With up to 85% lower fees than competitors. There are no fixed minimum fees, no ACH transaction fees, and no withdrawal fees. One of the largest exchanges in the U.S. FTX U.S. is also the only leading exchange that supports both Ethereum and Solana NFTs. When you trade NFTs on FTX, you pay no gas fees. Download the FTX app today and use referral code breakdown to support the show. Now a question how has Russia and Ukraine change things if at all? There was an interesting discussion in Reuters from a former bank of Japan official. He said, China's rapid progress in developing a digital yuan has alarmed some lawmakers in G 7 advanced economies as a potential threat against the U.S. dollar's global hegemony. There's a chance a country like China could promote usage of digital yuan for cross border transactions and create a currency block to counter the dollars dominance. That idea of a new currency block is obviously something that people are thinking a lot about right now as it relates to the dollar, the ruble, the Chinese currency, et cetera. What now about the European Central Bank? As you've heard in a few different shows, we've seen an acceleration in tone around digital asset regulation, have we seen the same thing around a digital Euro? The answer is sort of. On March 11th, coindesk wrote ECB's Lagarde supports acceleration of digital Euro work. This was during an ECB press conference and referred to the ECB's two year investigation into a digital Euro that started last October. Lagarde said, I think we have to be a little bit ahead of the curve if we can on that front. So I hope we can accelerate the work. Also, like in China, the Russian Ukraine war created a new context again from coin desk on March 31st. Small digital Euro payments won't need laundering checks, ECB official says. The article writes a potential new digital Euro would allow anonymous transactions for small payments in spite of anti money laundering norms, a leading member of the European Central Bank said. The suggestion stands in contrast to propose rules for private cryptocurrencies like Bitcoin where lawmakers are debating a plan to outlaw privacy for even low value transactions. You really don't love to see it. What about the U.S.? Well, there has been a lot going on over here as well. In early February, the Boston fed released its discussion paper regarding the U.S. CBDC design, codenamed project Hamilton, and then in March, The White House released the long awaited executive order on cryptocurrencies that included a call for governments to quote explore a U.S. Central Bank digital currency. In the event that issuances deemed in the national interest. Now much more than previous documents and statements, this executive order made the administration's intention to pursue a digital currency clear, whereas the fed has hedged in the past, this document did not. One of the 6 bullets on the summary fact sheet was, quote, explore a U.S. Central Bank digital currency by placing urgency on research and development of a potential United States CBDC should issuance be deemed in the national interest. The order directs the U.S. government to assess the technological infrastructure and capacity needs for a potential U.S. CBDC in a manner that protects American interests. The order also encourages the Federal Reserve to continue its research, development and assessment efforts for a USC BDC, including development of a plan for broader U.S. government action and support of their work. This effort prioritizes U.S. participation in multi country experimentation and ensures U.S. leadership internationally to promote CBDC development that is consistent with U.S. priorities and democratic values. Now, while the EO was greeted largely within enthusiasm in the cryptocurrency industry, particularly around the productive tone as it related to digital assets as a whole, there was some concern, especially from the crypto aligned part of Congress and the Senate on the CBDC provisions. On March 30th, congressman Tom emmer tweeted the U.S. is not quote behind China on crypto. CBDCs are not crypto. They're a government surveillance tool. Crypto creates freedom, it doesn't destroy it. Remember, earlier in the year emmer had introduced legislation that would prevent unilateral fed control of a U.S. digital currency. In a statement at that time, emmer said as other countries like China develop CBDCs that fundamentally omit the benefits and protections of cash, it is more important than ever to ensure the United States digital currency policy protects financial privacy, maintains the dollar's dominance and cultivates innovation. CBDCs that fail to adhere to these three basic principles could enable an entity like the Federal Reserve to mobilize itself into a retail bank, connect personally identifiable information on users, and track their transactions indefinitely. Not only with the CBDC model centralized Americans financial information, leaving it vulnerable to attack, but it could also be used as a surveillance tool that Americans should never tolerate from their own government. Senator Ted Cruz also just released something very similar in the Senate. Meanwhile, on the other side of the aisle, Warren has come out in favor of a Central Bank digital currency. So seemingly some partisanship growing, but don't let that fool you as it's not that simple. There is another entire type of CBDC Bill in the E cash Bill. It was introduced in the House by Stephen lynch, the chair of the House financial services committee's FinTech task force. This is basically a CBDC without the Central Bank. The act was instructed the treasury, not the fed to lead a pilot program to test the digital dollar safety functionality and interoperability with other payment systems and financial institutions. This would be something that would be on cards on mobile wallets. It would have a physical dimension. According to a press release, the bill mandates that the E cache includes features, quote, generally associated with the use of physical currency, including anonymity, privacy, and minimal generation of data from transactions. Not only that, but the digital dollar must also work for peer to peer payments offline and be stored on hardware devices that are quote distributed directly to the public. I think it's clear that there is going to be a much bigger debate around not just Central Bank digital currencies in the U.S., but cash and monetary privacy more broadly. And it's a conversation we sorely need to have. So I think it's safe to say that we are nudging towards the CBDC era. It is not fully here yet. You don't have any of the great economies with the CBDC up and running, although China is certainly getting close. This conversation about CBDCs is going to shape discussions of stablecoins and crypto regulation more broadly. And frankly, I think it's a good thing that we're making financial privacy such an issue now. But with that, I want to say thanks again to my sponsors, nexo IO, arculus and FTX, and thanks to you guys for listening. Until tomorrow be safe and take care of each other. Peace. Hey, breakdown listeners come join coin desks consensus 2022. The festival for the decentralized world, this June 9th through the 12th in Austin, Texas. This is the only festival showcasing and celebrating all sides of blockchain, crypto ecosystems, web three, and the metaverse, and is designed for crypto newbies, investors, entrepreneurs, developers, and creators. Don't miss speakers like Kathy wood, SPF, CZ, punk 6 5 two 9 and Joe lubin to name just a few. Use code breakdown to get 15% off your pass at coindesk dot com slash consensus 2022..

U.S. ECB China Arcu Solana NFTs Federal Reserve CBDC coindesk Russian Ukraine emmer U.S. government Lagarde congressman Tom emmer Bitcoin issuances CBDCs Ukraine Reuters
"solana nfts" Discussed on The Breakdown with NLW

The Breakdown with NLW

05:16 min | 4 months ago

"solana nfts" Discussed on The Breakdown with NLW

"Fees, no ACH transaction fees, and no withdrawal fees. One of the largest exchanges in the U.S. FTX U.S. is also the only leading exchange that supports both Ethereum and Solana NFTs. When you trade NFTs on FTX, you pay no gas fees. Download the FTX app today and use referral code breakdown to support the show. You pair kind of greet an idealism a lot. This is sort of like the central kind of tension in contrast. How much do you think they're both necessary for crypto to have evolved the way that it did? You know, one of the things that I think people often recognize if they're kind of realists in the space is that although it is not necessarily the part of the industry that we want to kind of hold up and double down on the monetary incentive has been such a huge driver of people coming into this space and building things. I mean, is that what you found is sort of like that these things were both necessary or do you think that there could have been kind of a pure, better version in a different set of configurations? That's such an interesting question. I mean, obviously, you know, I'm an American and I believe in capitalism. You know, my ancestors come from Korea, which now is divided into a place that's like a mini communist country and many capitalist country or U.S. country and definitely the version that's more like the U.S. is the better way to go. So, you know, I have strong opinions about things like that, but obviously things in moderation. I definitely wouldn't say that if the people that were more self interested had truly, truly dominated, that Ethereum would be the success that it is. You know, I do feel that, frankly, as you see early in the book, there is these conflicts that occur between the devs or developers and the business guys. And the developers always end up winning. And I actually think that was to Ethereum's benefit. And the business guys were the ones who wanted to make it close sores, and they didn't want to have a beat to centralize they wanted it to be more like a web two company where they're using customer data and profiting off of it and things like that. And so do I think Ethereum would be a successful today if it were built. Like that, no, I don't. So it's just kind of, yeah, it's probably like a push and pull sort of dynamic. And if you go too far, maybe in one direction, then it won't work. And if you go too far on the other, it also won't work. Yeah, that's super interesting..

Solana NFTs U.S. Ethereum Korea
"solana nfts" Discussed on The Breakdown with NLW

The Breakdown with NLW

10:06 min | 5 months ago

"solana nfts" Discussed on The Breakdown with NLW

"Arcu was secures your crypto using three factor authentication, providing a simpler, safer and smarter way to store, buy, swap, send and receive crypto. Arculus is offline cold storage. Your private keys are encrypted on the Oculus keycard and are never online. Stay safe from hackers with no cords, no charging, no Bluetooth. Just crypto security made simple. By arculus on Amazon today. The breakdown is sponsored by FTX U.S. FTX U.S. is the safe regulated way to buy and sell Bitcoin and other digital assets. With up to 85% lower fees than competitors. There are no fixed minimum fees, no ACH transaction fees, and no withdrawal fees. One of the largest exchanges in the U.S. FTX U.S. is also the only leading exchange that supports both Ethereum and Solana NFTs. When you trade NFTs on FTX, you pay no gas fees. Download the FTX app today and use referral code breakdown to support the show. In short, foreigners who had long supported America's largest by eagerly buying its debt, were buying less and less of our new debt issuance. Foreign ownership of U.S. debt declined from 34% in 2015 to 24% at the end of 2021. China's ownership declined from 1.25 trillion in 2015 to under 1.1 trillion in 2021. To compensate for this diminished outside interest, the U.S. looked inward for new creditors. The Federal Reserve held around 4% of U.S. debt in 2009 that figure has climbed to 19% today. These purchases made with dollars summoned out of thin air come with a giant asterisk. They do not derive from organic demand for our debt. They are only sustainable as long as inflation is tolerably low, which it no longer is. In February it hit a 40 year high of 7.9%. The exact explanation for the lost appetite among foreigners for U.S. dollars in U.S. debt is hard to pin down. It may have been a delayed reaction from the 2008 crisis. When the fed made it clear it had the ability to print unlimited dollars to support domestic markets at the expense of foreigners. It might have been the aggressive sanctions the U.S. instituted against Russian banks after Russia's invasion of Crimea in 2014. The most economically powerful nation the U.S. had ever targeted in such a manner. Previously, sanctions had been reserved for small economically unimportant nations. At the time, the U.S. threatened to exclude Russia from the swift international transfer system entirely, but back down due to the severity of the measure. Russia took the threat to heart and its Central Bank divested most of its US Treasury exposure and set up a swift alternative called SPF S even as the Russians took steps to free themselves from dependence on the dollar system, the U.S. wisely walked back from the brink, realizing that American and European banks were hopelessly intertwined with Russian ones. At the time, president Obama laid out a prescient warning regarding the risk to the dollar system that arbitrary exclusions could pose. In 2015, he cautioned in the context of unilateral Iran sanctions, we can not dictate the foreign economic and energy policies of every major power in the world. We'd have to cut off countries like China from the American financial system. And since they happen to be major purchasers of our debt, such actions could trigger severe disruptions in our own economy, and by the way, raise questions internationally about the dollar's role as the world's reserve currency. Joe Biden did not heed the warning of his former boss. First, the U.S. seized Afghan Central Bank assets held in New York and bizarrely handed a large portion over to the plaintiffs in a 9 11 lawsuit. While the seizure may have been predictable, expropriating the savings of ordinary Afghans and distributing them to Americans affected by 9 11, an attack perpetrated by Saudis is deeply unusual. Partly as a consequence, the Afghan banking system is kneeling over, worsening a humanitarian crisis. Not content with that, Biden then dropped a financial nuke on Russia with the seizure of her reserves. It's important to untangle the perceived morality of this action, a reaction to an unjust invasion, and it's prudence. While seizing Afghan or Russian reserves may feel righteous and just, the immediate effect of such actions is to completely undermine the credibility of dollar debt as an international savings device. The U.S. wants to have its cake and eat it too. We need foreigners to buy our debt to the government can finance its structurally high levels of spending. But we increasingly seek to impose moral conditions on who can hold that debt. The U.S. will find that their creditors are increasingly unwilling to pass these purity tests, and will choose to hold the money that doesn't require the owner to comport with Washington's latest political fashions. Author Luke grohman pulled no punches asserting that the fed and European Central Bank quote completely discredited sovereign debt as an FX reserve completely, adding that quote the multi currency multipolar world was likely fully born on Wednesday night. Fed blogger Joseph Wang calls the freezes of FX reserves financial WMDs, adding that quote foreign sovereigns must now diversify as a matter of national security, and some citizens must now diversify as a matter of self preservation. Wang points out that India and China both of whom voted abstain on the United Nations motion to condemn Russia's invasion of Ukraine, maintain heavily FX based sovereign reserves that they will now be eyeing uneasily. Russia made the fundamental miscalculation of not realizing all of their foreign Fiat reserves were at risk. Other nation states falling afoul of the U.S. will not repeat that mistake. Most notably the celebrated Credit Suisse interest rate strategist sultan bozar, declared an end to bretton Woods two. The post 1971 pure Fiat period based on the petrodollar and treasury recycling. Quote bretton Woods two was built on inside money and its foundations crumbled a week ago when the G 7 seized Russia's FX reserves. While the reach of gold bugs and fed critics might extend only to narrow echo chambers on Twitter. Pulsar's words reverberate around the financial community. For once the difference between golden dollars historically clear. Outside of James Bond novels, gold can not be immobilized at a distance. Dollars and dollar assets can. While not as dramatic as the Nixon shock, the Biden sanction was just as genuine a default. U.S. treasuries in the post 1971 era were global risk free assets used by friends and enemies alike to reliably store value. Rug pulling the Russians even if warranted introduced for the first time, genuine doubt into the quality of the commitment the U.S. can maintain towards foreign creditors. The prospect of total asset and validation is an unacceptable tail risk, and any nation state wary of falling afoul of U.S. sensibilities, especially as the U.S. becomes ever more capricious and less interested in the well-being of the international sphere it used to govern. We'll consider diversifying out of U.S. treasuries and other freezable assets. In 2022, posar is outside money is king. For now that's gold, but even the former skeptic has some time for its digital analog, concluding Bitcoin, if it still exists after the war will probably benefit from all of this. Back to MLW here. I think one of the things that's hard about this moment and about distilling insight from the noise. Is how rhetorically valuable in the context of social media and readerships and digital publications is to propose the end of one era and the beginning of another. This is the type of proclamation that makes for immensely good reading and immensely good pondering and immensely good content. It's also something that humans are biased to think about themselves and their time. We all like to imagine ourselves as living through significant eras of being a part of something larger. It's why, for example, so many generations throughout history have seen themselves as the last, and the end of times. And so perhaps because of that, it's easy to be skeptical when someone declares something so huge as the closing of this monetary era. However, in those moments, it's worth doing a few things. First, asking about the source of those proclamations. And what their biases are to fall trap to that great moment of history sort of fallacy. In this case, for example, Nick isn't trying to get clicks outside of sharing what he thinks. It's not his business. He's also written enough that we know that he doesn't fall prey to hyperbole. So, Nick becomes a more interesting, more valid source, at least for me. When it comes to this sort of big picture power shift, is not to say, is there a clean break from history. But have the recent actions of leaders made a sufficient crack on the face of history for new forces to seep in. And that's, I think, what someone like Nick in this piece and others beyond him and other pieces are arguing about the seizure of Russia's Central Bank reserves. It's not so much that this definitely means the end of U.S. dollar hegemony. It means that there's a new crack in a once largely impervious pillar of the global financial order. That pillar was the neutrality and imperviousness of U.S. treasuries in the U.S. dollar as a way to store global wealth, and that crack is the idea that it could be made political. Now, of course, this is an extreme circumstance. It's a belligerent nation making an unwarranted unjustified attack on a smaller nation. Largely for the sake of its own economic or political or nationalistic or even individual reasons, and to perhaps that will temper just how many forces slide into that crack. But it doesn't change that crack in the pillar is now there. What that means and how that will play out will be the story of the decade to come. For now, I want to say thanks again to my sponsors nexo IO, arculus and FTX. Thanks to Nick Carter for another excellent piece. And thanks to you guys for listening. Until tomorrow be safe and take care of each other. Peace. Hey breakdown listeners, come join coin disks consensus 2022. The festival for the decentralized world that's June 9th through June 12th in Austin, Texas. This is the only festival showcasing and celebrating all sides of blockchain, crypto ecosystems, web three and the metaverse, and is designed for crypto newbies, investors, entrepreneurs, developers, and creators. Don't miss speakers, Kathy wood, SPF, CZ, punk 6 5 two 9 and Joe lubin just to name a few. Use code breakdown to get 15% off your pass at coin desk dot com slash consensus.

U.S. Russia Arcu Solana NFTs fed Afghan Central Bank China Luke grohman Joseph Wang bretton Woods Biden sultan bozar Crimea Central Bank
"solana nfts" Discussed on The Breakdown with NLW

The Breakdown with NLW

11:39 min | 6 months ago

"solana nfts" Discussed on The Breakdown with NLW

"Have shown black and Latino Americans, now outpace white Americans in Bitcoin and cryptocurrency investing. But too many are writing off this emerging trend as just another sign of the times. Another signal of a GameStop investing culture gone awry. It isn't. Rather, Bitcoin's rise in America is deeply rooted in our legacy of oppression of marginalized communities. Black, Brown, LGBTQ and Latino Americans are distrustful of an establishment and its systems that have failed them time and again and are failing them now. The headlines speak for themselves. The COVID-19 pandemic has highlighted racial disparities in the healthcare system. The senseless deaths of Breonna Taylor, ahmaud Arbery, and George Floyd have sparked nationwide protests against police brutality and racism. Professional sports teams, including the WNBA, MLB and MLS, have all postponed games and protests of racial injustice. Nearly a 160 statues dedicated to the confederacy have been taken down after being labeled as symbols of white supremacy. These pivotal events have had an impact on Americans. We are reflecting an acknowledging the devastating injustices done to our marginalized communities and communities of color. All Americans are exploring new innovative solutions to our society's most challenging problems. As the co authors of a new book on Bitcoin in America, we believe this call to action has led directly to the rise of an alternative money monetary system. We understand you may be dismissive of Bitcoin that you may have heard that this technology is tied to white supremacy and groups spreading seeking to spread hate and division. We reject this one sided message, and instead, want to explain why we see Bitcoin as a Beacon of hope. In the following article, excerpted from our new book, Bitcoin and the American Dream, we explain how Bitcoin can be used as a tool for social and economic justice. One that can help underserved communities increase their economic mobility by building generational wealth. Embedded in our nation's history as a legacy of oppression, racism, and genocide, more than ever before, age, race, gender, and sexual identity are shaping American policy, and for good reason. The U.S. is falling short in creating an economy where all citizens can build wealth regardless of background. Elected leaders from both parties have an obligation to work towards dismantling the system of oppression and discrimination that persists in this nation. Social justice is an emerging part of the Bitcoin discussion. The discriminatory practices of the U.S. banking industry have been well documented. Lawsuits and fines against banks reveal a history of fraud, higher fees and restricted access to credit that has disadvantaged all of our minority communities. While no monetary invention can eliminate the effects of discrimination, Bitcoin offers immigrant black, Brown indigenous and LGBTQ+ communities, the promise of a fair and equitable financial system. Our marginalized communities are already recognizing a potential of Bitcoin. Over 30% of black and 27% of Latino investors own Bitcoin. Innovations like Bitcoin ATMs allow these communities to access Bitcoin. Applications make buying, saving and investing in Bitcoin easier. For those who have struggled to gain access to banking services, Bitcoin is a breath of fresh air. Bitcoin wallets or software, meaning these devices can not discriminate against users based on their identity, race, or past financial status. This should prove of interest to progressives who have long been sensitive to issues of inequality in America. Nexo is a trusted and easy to use crypto platform. Where you can buy cryptocurrencies at the touch of a button and start earning up to 18% annual interest that is paid out daily. They support all of the major assets on the market, and even allow you to swap one asset for another, or borrow cash against your crypto without selling it. Nearly 3 million people in over 200 countries trust nexo with their digital assets. So whether you're just getting started or you're a seasoned pro, get the most of your crypto today. With nexo. At any exo. Meet arculus, the next generation cold storage wallet. Oculus secures your crypto using three factor authentication, providing a simpler, safer and smarter way to store, buy, swap, send and receive crypto. Is offline cold storage. Your private keys are encrypted on the Oculus keycard and are never online. Stay safe from hackers with no cords, no charging, no Bluetooth. Just crypto security made simple. By now at get arculus dot com. That's GET. ARC UL U.S. dot com. The breakdown is sponsored by FTX U.S. FTX U.S. is the safe regulated way to buy and sell Bitcoin and other digital assets. With up to 85% lower fees than competitors. There are no fixed minimum fees, no ACH transaction fees, and no withdrawal fees. One of the largest exchanges in the U.S. FTX U.S. is also the only leading exchange that supports both Ethereum and Solana NFTs. When you trade NFTs on FTX, you pay no gas fees. Download the FTX app today and use referral code breakdown to support the show. Closing the black wealth gap for generations, black Americans have been systemically prohibited from building wealth and ensuring property rights, and they inherit a legacy of disadvantage that impacts their finances today. The institution of brutal shadow slavery in which humans were valued as property was America's first economic system. It turned our country into a financial powerhouse, creating millionaire slave owners whose white descendants enjoy those gains. Even after the Civil War, black Americans would have property seized under Jim Crow era laws that confiscated over 12 million acres. Decades later, the new deal would create the federal housing administration, which remains the foundation of our modern real estate market. This new mortgage market offered white American families a path to wealth through home ownership. But this American Dream was again not available to black families. The Civil Rights Act of 1968 attempted to outlaw housing discrimination, but our credit system continued to marginalize black Americans who lived in lower income neighborhoods, deemed geographically undesirable. Despite well meaning past policy efforts expensive social programs and a progressive agenda, the black wealth gap remains wide. As of 2019, median wealth for black households in the U.S. was 24,100. Compared with 189,100 for white households. This is an imbalance created by centuries of property rights violations and thefts that have left black Americans distrustful. For black Americans, Bitcoin offers the promise of a fair financial system untainted. By America's legacy of racial oppression, and strong assurances to the property rights that they have long been denied. Because Bitcoin can be self custody to black Americans no longer need to solely depend on banks, institutions or intermediaries. Bitcoin allows black Americans to take direct agency, control, and custody of their financial assets and the opportunity to build generational wealth. Supporting Latino communities. Like black Americans are Latino communities have historically experienced economic injustice that has hindered them from achieving the American Dream. Leading up to the 2008 financial crisis, Latino borrowers were disproportionately offered, costlier subprime mortgage loans, thousands of Latino families lost homes, setting them back in their efforts to build generational wealth and savings. These devastating financial losses coupled with past discriminatory practices from banks have fueled the distrust of the finance industry in the Latino community. Perhaps this is why 27% of these Americans use Bitcoin as a store of value. The COVID-19 pandemic exposed more economic disparities for the Latino community. Stanford University found that Latino business owners had their paycheck protection program, PPP loans approved at half the rate of white owned businesses. Bitcoin empowers the Latino community with access to a fair economic system and offers a path to prosperity through enhanced financial tools. Empowering first generation immigrants. America is a country built by immigrants and immigrants remain a cornerstone of our economy. Of the country's nearly 5 million business owners 900,000 are immigrants. The reason for this is that first generation Americans are often breadwinners for family members abroad. America accounts for nearly 24% of all remittance transactions. Unfortunately, remittance services are expensive. The U.S. is among the least costly countries from which to send remittances, yet the average fee is 6% per transaction. Many immigrants are adopting Bitcoin as a way to avoid these fees. With Bitcoin immigrants can convert dollars to Bitcoin and send Bitcoin to family members abroad. Fees on the Bitcoin network are often much cheaper, sending a $1000 abroad on the Bitcoin network, costs about $4 on average compared to $60 when using a traditional remittance service. Lightning wallets and emerging technology running on top of Bitcoin takes this a step further with average fees of less than one cent. These savings add up. Unlike remittance services, Bitcoin operates 24/7 and settles in about ten minutes, armed with this tool first generation immigrants can keep more of what they earn when they use Bitcoin. Including LGBTQ+ Americans. One in four LGBTQ+ Americans report financial challenges based on their orientation or gender identity, and they are less likely to have a savings or retirement account. LGBTQ families typically include at least one non biological parent and many state laws make a state planning especially tricky. Should an unmarried LGBTQ+ American die without a will? Courts may not recognize the custody of their children. Perhaps because of these issues, one quarter of LGBTQ+ Americans own Bitcoin. Bitcoin offers the LGBTQ+ community at the opportunity to transfer money to beneficiaries instead of relying on shifting state based legislation. The ability to own and custody Bitcoin offers this and many other tangible benefits. Domestic violence survivors. One out of four American women will experience some type of gender based violence in the vast majority of domestic abuse survivors will be subject to financial abuse. The domestic abuser may take loans in the victim's name without consent, force agreements with financial documents or control how the victim spends money. As a result, survivors of domestic violence often suffer from poor credit history and a lack of resources even after they escape abusive relationships. Bitcoin offers a path for survivors. The 2020 book cipher punk women offered one detailed account by a domestic abuse survivor who used Bitcoin to help save in a way that went undetected by their abuser. Bitcoin empowered this individual by offering the tools for financial independence. The domestic violence survivor was able to build wealth outside of traditional bank accounts and outside their abusers control. Conclusion. Bitcoin has opened an escape hatch for a generation of marginalized Americans and made them excited about saving and investing. But poor regulation could force Bitcoin services to resemble our legacy financial system. As of writing U.S. Bitcoin exchanges require users to meet the same requirements as banks. Their users must have bank accounts or debit cards and they must rigorously collect customer information undermining benefits from marginalized groups. We believe Bitcoin must be a part of future education curriculums, so all communities can prosper in the next generation. All right, back to NL here, and I don't have a lot to add. I'm going to let those words speak for themselves. The only thing that I will add is that this is exactly the type of discussion that I hope finds its way into the political discourse around Bitcoin in the weeks months and years to come as very fundamental decisions are made about how it's going to be regulated. This is not a left or right issue, and we should push back fiercely against the attempt to reduce it. To another partisan football, we're just knowing whether someone has a D or an R next to their name is going to make you know what they think about Bitcoin. Right now, Bitcoin has been remarkably resilient to the partisan calcification of American politics. Let's keep it that way. Until tomorrow, be safe and take care of each other. Peace.

Bitcoin U.S. COVID Breonna Taylor ahmaud Arbery George Floyd Solana NFTs GameStop WNBA MLB MLS federal housing administration Jim Crow
"solana nfts" Discussed on The Breakdown with NLW

The Breakdown with NLW

07:46 min | 6 months ago

"solana nfts" Discussed on The Breakdown with NLW

"But I still think the impact here is a bit more muted than that January QT surprise. Indeed, if you listen to all the smart observers, what they're focused on is not the potential of problems from rate hikes, but what happens when you remove liquidity from markets? That's I think what people are going to be looking out for next. Welcome back to the breakdown with me. And I'll W. It's a daily podcast on macro Bitcoin and the big picture power shifts remaking our world. The breakdown is sponsored by nexo IO, arculus, NFTX, and produced and distributed by coin desk. What's going on guys? It is Thursday, February 10th, and today we are talking about the weird back and forth tension between macro being good and macro being bad for crypto and what it all means, but before we do that, if you're enjoying the breakdown, please go subscribe to it, give it 5 stars, leave a nice review or if you want to get deeper into the conversation join the Discord. You can find the breakers Discord at the link in the show notes or go to bit dot LY slash breakdown pod. As usual a quick disclosure in addition to them being a sponsor of the show, I also work with FTX. And one final note before we get into today's fascinating topic. This week I'm incredibly pleased to have a special sponsor in meld. If you've ever wondered how the rich are able to spend their money and still stay rich, it's because they borrow against their assets. Meld is creating a protocol that can be used by anyone, and which offers this exact service, but in a decentralized way. Users of melds protocol will be able to borrow dollars, Euros and other Fiat currencies against their cryptocurrencies. If you want to learn more about the first DeFi non custodial banking protocol today, go check out meld dot com. That's Emil D dot com. Thanks again to meld for sponsoring the show. So last night I was doing a Twitter space's discussion with the crew over at blockworks, and one of the things that came up in a question from Jason yanowitz over there was how to make sense of the weird dualistic nature of crypto right now. On the one hand you have this sense that maybe the chickens are coming home to roost, the macro environment is looking really good. You've got rates that are likely to get raised later this year and other sort of fed policy things that could get in the way of a crypto bull market. But then on the other you have continued interest from institutions. NFTs booming, all of these positive scenes, right? Over the last two weeks we've seen Bitcoin recover in a big way and drag some other assets with it. So what's really going on? I think to understand we need to first look at how crypto has been correlated with the macro over the last couple months. You started to really see this in December of last year. That was the point at which the fed started changing its tune and came out with their dot plot predictions that suggested that there would be at least three rate hikes in the year 2022. Markets mostly shrug that off. In fact, they sort of like that the fed was finally taking inflation seriously versus continuing to claim it was transitory. However, even at that time you did start to see markets price in the likelihood of these rate increases. And it didn't happen all at once it wasn't some big sort of exodus from risk assets, but if you look at what started to happen Vis-à-vis institutions in Bitcoin, coin shares each week publishes their list of whether funds are flowing into or out of Bitcoin and crypto related products from institutions. Around the middle of December, they started to flow out. And that was some of the first sign that we were clearly heading into a different type of macroeconomic environment. What really started this January off with such an aggressive downward shift was the publishing of the fed's meeting notes which showed that they were thinking about not just peeling back support for the market in terms of bond purchases and not just raising rates, but in fact, going all the way to quantitative tightening. That means selling assets removing liquidity from the markets. After previous episodes of QE they had not shifted to QT so quickly and markets did not like that at all. That's why we saw such an exodus from risk assets of which Bitcoin and crypto were part of that. At the same time, I saw this other thing happen, which was the Bitcoin and crypto world kind of almost remember that although it was in some way tied up with those larger macro forces, it was still something that was independent, distinct, long-term focused and having other types of inputs that determine how the market is doing it at any given time. And I think that's a good setup to get us to this week where we have two very different forces going on in terms of whether people are feeling bullish or bearish. So let's talk first drawing through that macro and monetary policy theme into the discussion of inflation. We just today got the inflation numbers back for January and inflation hit 7.5% year over year last month. That's the highest growth in inflation since 1982, or for decades if that's your preferred nomenclature. The year over year gain in December was 7% and from December to January over that last month was 0.6%. The so called core price measure that excludes food and energy, which are considered to be highly volatile, increased 6% year over year. And again, 0.6% from December. Now importantly, when it comes to inflation, it's often less about the headline number and more about the expectations. And in this case, economists had projected 7.3% year over year growth and 0.4% month to month growth. What's more many people went into this thinking that we were going to slightly underperform that. So it was a surprise to the upside. Nexo is a trusted and easy to use crypto platform. Where you can buy cryptocurrencies at the touch of a button and start earning up to 18% annual interest that is paid out daily. They support all of the major assets on the market, and even allow you to swap one asset for another, or borrow cash against your crypto without selling it. Nearly 3 million people in over 200 countries trust nexo with their digital assets. So whether you're just getting started or you're a seasoned pro, get the most of your crypto today. With nexo, at any exo dot IO. Meet arculus, the next generation cold storage wallet. Oculus secures your crypto using three factor authentication, providing a simpler, safer and smarter way to store, buy, swap, send and receive crypto. Arculus is offline cold storage. Your private keys are encrypted on the Oculus keycard and are never online. Stay safe from hackers with no cords, no charging, no Bluetooth. Just crypto security made simple. By now at get arculus dot com. That's GET. ARC UL U.S. dot com. The breakdown is sponsored by FTX U.S. FTX U.S. is the safe regulated way to buy and sell Bitcoin and other digital assets. With up to 85% lower fees than competitors. There are no fixed minimum fees, no ACH transaction fees, and no withdrawal fees. One of the largest exchanges in the U.S. FTX U.S. is also the only leading exchange that supports both Ethereum and Solana NFTs. When you trade NFTs on FTX, you pay no gas fees. Download the FTX app today and use referral code breakdown to support the show..

Bitcoin Jason yanowitz fed Fiat Twitter U.S. Solana NFTs
"solana nfts" Discussed on The Breakdown with NLW

The Breakdown with NLW

04:33 min | 6 months ago

"solana nfts" Discussed on The Breakdown with NLW

"Fees, no ACH transaction fees and no withdrawal fees. One of the largest exchanges in the U.S., FTX U.S. is also the only leading exchange that supports both Ethereum and Solana NFTs. When you trade NFTs on FTX, you pay no gas fees. Download the FTX app today and use referral code breakdown to support the show. Now, this is all sort of on chain data, but it's also worth checking out sentiment. I think broadly you're seeing a shift away from discussion of just this sort of short term price action and the fed to a return in some ways of more fundamentals and the arguments that get people excited about Bitcoin in the first place. To take one example on Friday night, Jack Dorsey and congressional candidate arika Rhodes hosted a Twitter spaces on the topic of Bitcoin in relation to universal basic income. The specifics of the discussion matter less than the fact it's what people chose to spend their Friday night discussing. Suzu has also been writing about this exact phenomenon saying, my bull case for crypto has nothing to do with money printing, risk on or risk off. It has to do with the great awakening of the sovereign individual and the understanding of the potential of peer to peer distribution networks to reshape the nature of reality. He also tweeted a new framework. Generalized epics of crypto bidding 2020 macrobid, 2021 tech bid. 2022, geopolitical bid. Another framing, 2020, an inflatable. 2021, programmable. 2022 censorship resistance. This is something you'll see a lot if you go check out Bitcoin Twitter or crypto Twitter in general right now. This discussion of censorship and censorship resistance. There's definitely something in this site guys. If you've been paying attention at all to trucker protests in Canada around vaccine rules, when GoFundMe shut down their fundraising platform, a number of Bitcoin based fundraising alternatives popped up. One created by has raised nearly 400,000 in Bitcoin from nearly 4000 people. Then, of course, there's everything swirling around the debate around Joe Rogan and freedom of speech and what obligations he does or doesn't have to how he presents guests in what he discusses and what Spotify's rights are or aren't in terms of how they censor him or not. And so on and so forth, and the point isn't that you have to be on any one side of these arguments or another, just that they're all bringing up a conversation about the power in media, the power of voice and censorship resistance. You know what this creates in some ways is attention between the bigger picture and the short term. Is everything happening in Bitcoin and crypto being driven by this larger prerogative in this larger quest for censorship resistance in the human experience? Or is it all about what Jay Powell says next? Jeff Dorman tweeted this weekend, crypto Twitter..

Solana NFTs arika Rhodes Suzu U.S. Twitter Jack Dorsey GoFundMe fed Joe Rogan Spotify Canada Jay Powell Jeff Dorman
"solana nfts" Discussed on The Breakdown with NLW

The Breakdown with NLW

05:21 min | 6 months ago

"solana nfts" Discussed on The Breakdown with NLW

"There are no fixed minimum fees, no ACH transaction fees and no withdrawal fees. One of the largest exchanges in the U.S., FDX U.S. is also the only leading exchange that supports both Ethereum and Solana NFTs. When you trade NFTs on FTX, you pay no gas fees. Download the FTX app today and use referral code breakdown to support the show. This week alone we saw news of two very different ends of the spectrum. As you mentioned, Philadelphia story came out that I found out about because Laura shin had tweeted about it because apparently the CIO of Philadelphia was listening to her podcast in this podcast. That's pretty cool. But that was how I found out about it. I think then you saw it and we're like, oh, and then but then on the other end of the spectrum, was mayor Suarez, who said that he is announcing that they were receiving their first ever disbursement from mine city coins, which was a total of 5.25 million. So an actual serious amount of money when it comes to when it comes to a policy like that. I guess one question is how much is this, you know, something like municipal bonds? There's been a concept of people investing in their community in a financial way for a long time. But this is, you know, is this just a change in kind of scale and speed or is it a fundamental change in kind? It's like apples and oranges. If you were to compare it to municipal bonds, I'd say it's a hundred X improvement on municipal bonds. And I'll tell you why. Municipal bonds are not held by citizens. Does anyone you know hold the municipal bond? Probably not. And the reason is interest rates are so low. Usually when you're making money on muni bonds, like the spreads are large because the city is about to go bankrupt. And so you really don't want to hold municipal bonds like large sovereigns and institutions do. And also, they're issuing debt, which not all debt is bad, but they're issuing debt that later has to be repaid by the city's taxpayers..

FDX Solana NFTs Laura shin mayor Suarez Philadelphia U.S. CIO
"solana nfts" Discussed on The Breakdown with NLW

The Breakdown with NLW

11:20 min | 7 months ago

"solana nfts" Discussed on The Breakdown with NLW

"Some of the key highlights from this report, especially around blockchain crypto Bitcoin, et cetera. Now, I've heard from a bunch of you that you don't always love having a ton of stats in your podcast and I understand and appreciate that. But this is going to be kind of a numbers heavy show before warned, but I still think it's going to be a lot of fun. So let's dive in and let's start with frame setting. Just so you understand where arcs coming from their bet is that there are 5 key innovation platforms that will generate huge equity market returns over the long term. The 5 that they focus on are gene sequencing, robotics, blockchain, battery technology, and AI. Between 2020 and 2030, they're predicting a compound annual growth rate of 26% for AI, 35% for battery technology, 40% for gene sequencing, 43% for blockchain and 51% for robotics. Overall, they see blockchain and crypto going from about 1.4 trillion in market cap in 2020 to 49 trillion by 2030, almost $50 trillion. They split that up into 40 trillion for blockchain and 9 trillion for digital wallets. On blockchain, they say all money and contracts could migrate to open-source protocols that enable and verify digital scarcity and proof of ownership. The financial ecosystem could be forced to reconfigure and take advantage of the capabilities these technologies afford, potentially leading to more transparency, fewer capital and regulatory controls and significantly lower contract execution costs. More of everything could become money like fungible liquid quantifiable, every corporate entity and consumer will have to adapt, corporate structures might be called into question every sector could be impacted. Now, in digital wallets, they are including not only what we think of as crypto wallets or web three wallets or whatever, but actually also sort of neo bank style wallets. So cash app PayPal Venmo, et cetera. They say digital wallets allow anyone with a connected device to transact money instantly transforming commercial and financial experiences. And say that traditional financial service institutions could be at risk. Nexto is a trusted and easy to use crypto platform, where you can buy cryptocurrencies at the touch of a button and start earning up to 17% annual interest that is paid out daily. They support all of the major assets on the market, and even allow you to swap one asset for another, or burrow cash against your crypto without selling it. Nearly 3 million people in over 200 countries trust nexo with their digital assets. So whether you're just getting started or you're a seasoned pro, get the most of your crypto today. With nexo, at any exo dot IO. Today's episode is sponsored by abrupt. Join over 1 million users and conquer crypto, with abra, and all in one, simple and secure app where you can trade over 110 cryptocurrencies. Get 0% interest loans using your crypto as collateral, and earn interest, with up to 14% APY on stablecoins, and 8.15% APY on Bitcoin. Visit aber dot com or download the app from the Google Play or Apple App Store today. Abra, conquer crypto. The breakdown is sponsored by FTX. FTX is the safe regulated way to buy and sell Bitcoin and other digital assets. Trade crypto was up to 85% lower fees than top competitors. FTX U.S. is also the only leading exchange that supports both Ethereum and Solana NFTs. You can trade NFTs with no gas on FTX U.S. and gases subsidized when you withdraw off the platform. Help support the breakdown and visit FTX U.S. today. That's FTX U.S.. For arc part of the background scenario for these trends is this dramatic shift in the ratio of the time we spend offline versus the time we spend online. The report estimates that on average in 2021, Internet users spend 38% of their free time online and 62% offline. By 2030, they expect those averages to flip with user spending 52% of free time online and 48% offline. It's not hard if you have that thesis to see how things like crypto and the metaverse might come into play. Now let's get into some of the numbers around the digital wallet and blockchain area. And we'll start with digital wallets. One of their highlight statistics is that the number of digital wallet users has surpassed the number of deposit account holders at one of the largest U.S. banks. JPMorgan, the biggest bank in the U.S. has 60 million deposit account holders, while cash app has 74 million and PayPal's Venmo has 82 million annual active users. Arc believes that U.S. digital wallets could scale 69% annually from more than 400 billion last year to 5.7 trillion in 2026. When it comes to public blockchains now, arch is extremely bullish, saying that they could quote transform every traditional asset class from cryptocurrencies to crypto equities to crypto commodities, crypto art, dows, and so on. One of the things that I find really fascinating about the report is the way they break down different quote unquote revolutions. They say public blockchains are stirring several revolutions. They categorize them as the money revolution. The financial revolution and the Internet revolution. For shorthand, they say that's Bitcoin, DeFi and web three. The money revolution is the coordination of value transfer and property rights outside the purview of centralized authorities, governments and top down control. From Fiat currencies in central banking to global decentralized non state money. The financial revolution is the coordination of financial services and contracts outside the purview of traditional financial institutions. Traditional finance to decentralize finance. The Internet revolution is the coordination of identity reputation and data outside the purview of traditional media conglomerates and big tech from corporate owned platforms to interoperable user owned web. Importantly, they say that each of these revolutions involves a different level of trust. The money revolution is the furthest on decentralized trust while the financial and Internet revolution sits somewhere between decentralized and centralized trust, and of course you have the status quo over on the far side, which is represented by centralized trust. I'm not going to try to describe it here, but they lay out Bitcoin Ethereum Solana avalanche Tara binance smart chain and then on the far extreme of centralized trust, Visa Amazon fed wire, et cetera. On this spectrum with Bitcoin being the farthest on the decentralized trust side and Visa Amazon fedwire, being the farthest on the centralized trust side. I'll include a link in the show notes because it's worth going and checking out the way that they subdivide this industry. To Bitcoin for a minute, they point out that Bitcoin is taking significant market share as a global settlements network. Bitcoin's cumulative transfer volume increased by 463% last year and its annual settlement volume has surpassed visas payments volume. Last year, Bitcoin settled $13.1 trillion. Bitcoin is also arc says attracting institutional holders. As of November 2021, exchange traded products, countries and corporations held 8% of Bitcoin supply. The largest of those holders include the grayscale Bitcoin trust, the balance sheets of block one micro strategy Tesla and the tazos foundation and other ATPs like coin shares XBT provider purpose Bitcoin ETF and galaxy digital. They of course discuss in this report El Salvador as the first nation state to adopt Bitcoin as legal tender. And point out that in El Salvador now, more people have Bitcoin wallets than traditional bank accounts and it's not close. They're estimated to be 1.9 Salvadoran citizens with traditional bank accounts versus 3.8 chivo wallet users. Arc believes that Bitcoin's market cap could scale more than 25.9 X in the next decade for a total market cap of 28.5 trillion. And that gets them to the probably most quoted number of this entire report, which is that the price of one Bitcoin they believe could exceed 1 million by 2030. Now fascinatingly, they break out what they see as Bitcoin use cases. Remittance network, emerging market currency, economic settlement network, nation state treasury, seizure resistant asset, institutional investment, corporate treasury and digital gold. And to each of these numbers they ascribe a value. For example, for emerging market currency they assume that Bitcoin could represent 10% of M two, excluding the top four countries. As an economic settlement network, they imagine the Bitcoin could represent 25% of U.S. bank settlement volumes. Nation state treasuries 1% of total reserves. Seizure resistant asset 5% of global high net worth wealth. And so on and so forth. And that's how they come up with that Bitcoin could exceed 1 million by 2030 number. Let's move to Ethereum. Arc believes that ethers market cap could exceed 20 trillion in the next ten years. Quote, displacing many traditional financial services and competing as global money. They see a potential for a 56 X growth in the total market cap of Ethereum. On the back of its use as the reference asset in DeFi. When it comes to NFTs, arc is focused on true ownership of digital assets, saying non fungible token serve as smart contracts that verify the ownership of digital assets on public blockchains. They usurp the power of centralized platforms to house control and verify assets. In 2021, NFTs generated $21 billion in sales as the number of monthly unique buyers soared nearly 8 fold to more than 700,000. Now maybe the most interesting thing they say though about NFTs is their notion that NFTs will quote blur the line between consumption and investment. NFTs offer a liquid marketplace in which consumers can invest in different digital assets and engage in peer to peer transactions. And if T buyers and sellers determine market clearing prices on blockchains instead of data aggregation platforms, creating new forms of asset monetization. On this slide, they use the example of digital clothing to show how this line between consumption and investment gets blurred. You buy some digital clothing items, some Gucci Pete Davidson, people collaboration that hasn't happened yet to use in the sandbox or decentral land or wherever you're using it. But then in addition to that, you could lend or stake it. You could collateralize it. You could fractionalize it. And so you've taken something that would have just been a consumption expense and shifted it into also an investment. There's obviously still a lot to be determined about how consumption and investment even happens in the metaverse. But I do think this idea of blurring the line between consumption and investment gives us a lot to chew on. Anyways, guys, I'll wrap there. There's a ton more info in this report. I highly recommend checking it out. I obviously didn't get into any of the technologies outside of blockchain and digital wallets. And there's a lot more in there. Like I said, I'll throw a link in the show notes to give you a chance to look for yourself. But hopefully this was fun to listen to. I want to again thank my sponsors nexo dot IO, abra and FTX. And thank you guys for listening. Until tomorrow be safe and take care of each other. Peace.

Bitcoin U.S. Solana NFTs Venmo
"solana nfts" Discussed on The Breakdown with NLW

The Breakdown with NLW

08:16 min | 7 months ago

"solana nfts" Discussed on The Breakdown with NLW

"We don't discuss how this is actually too critiques in one. First, that Bitcoin is bad for the environment. But second, implicitly, that the Bitcoin industry is worse than other industries for the environment. This is a really, really important note. We talk constantly about which country or state or city or whatever Bitcoin consumes as much energy as. But we don't talk about how it compares to other industries that we value and that we don't have the same critiques for. Part of the issue is that Bitcoin is transparent. And so it's easier to calculate than other industries, but being more transparent and easier to calculate doesn't mean it should have the highest burden. You see a little bit of this in the house memo and mainstream media around this Bitcoin network uses the same energy as Argentina. However, that's much less shocking if we put that in terms of other industries, where gold mining uses about 2.5 argentinas. U.S. household appliances nearly 15 argentinas, and U.S. air conditioning boy oh boy, 30 Argentina's. Nick writes in his newsweek piece, why worry about an industry that consumes approximately 0.55% of global electricity production? After all, energy associated with Bitcoin mining is roughly equivalent to the energy consumption of zinc mining and refinery, and less than the energy associated with the extraction of either copper or gold. It consumes the rough equivalent of the energy associated with running domestic tumble dryers in the U.S. alone. And one 5th the energy used for domestic refrigeration. Brian Brooks and his prepared testimony makes an even more direct comparison saying even more stark is the contrast with the banking system. The market capitalization of Bitcoin over the past 6 months has fluctuated between about 800,000,000,001.2 trillion. The market cap of the global banking system is approximately 8.6 trillion. The banking system consumed just over 4900 terawatt hours to produce that market capitalization, Bitcoin mining consumed 188 terawatt hours to produce its market cap. Put differently the banking system requires 573 terawatt hours of power to produce 1 trillion of value. That is about 2.5 times the amount of power required to produce the same amount of value in Bitcoin. Nexto is a trusted and easy to use crypto platform, where you can buy cryptocurrencies at the touch of a button and start earning up to 17% annual interest that is paid out daily. They support all of the major assets on the market, and even allow you to swap one asset for another or borrow cash against your crypto without selling it. Nearly 3 million people in over 200 countries trust nexo with their digital assets. So whether you're just getting started or you're a seasoned pro, get the most of your crypto today. With nexo, at NE XO dot IO. Today's episode is sponsored by abra. Join over 1 million users and conquer crypto, with abra, and all in one simple and secure app where you can trade over 110 cryptocurrencies. Get 0% interest loans using your crypto as collateral, and earn interest, with up to 14% APY on stablecoins, and 8.15% APY on Bitcoin. Visit aber dot com or download the app from the Google Play or Apple App Store today. Abra, conquer crypto. The breakdown is sponsored by FTX. FTX is the safe regulated way to buy and sell Bitcoin and other digital assets. Trade crypto with up to 85% lower fees than top competitors. FTX U.S. is also the only leading exchange that supports both Ethereum and Solana NFTs. You can trade NFTs with no gas on FTX U.S. and gases subsidized when you withdraw off the platform. Help support the breakdown and visit FTX U.S. today. That's FTX U.S.. Category two government interference in markets. There is another underlying assumption in many of the critiques of Bitcoin mining that governments get to determine how private markets use energy. Something I've said frequently on this show often around NFTs just based on where the crypto conversation is right now, is some version of the idea that just because you think a thing is stupid doesn't mean it's not a thing. I think you can apply something similar to Bitcoin when it comes to policymakers and critics. Just because it's not valuable to you doesn't mean it's not valuable. Not to trot out the old tired example of Christmas lights, but there are huge parts of the country and world who don't celebrate Christmas, and so who definitionally don't care at all, but you don't see them calling for a banning. I really like what Brian Brooks had to say about this and his testimony. Quote, from a public policy perspective, the most relevant question should be energy production rather than energy consumption. If the people's representatives decide, we should eliminate or reduce a particular source of energy such as coal or oil. You were elected to do that. But once the energy mix has been established in a market economy like the United States markets, meaning the aggregate decisions of American consumers and businesses should decide the most productive use of the energy that is produced. There is another important discussion to pair this with, which is an acknowledgment of the role that Bitcoin has potentially to play in the maturation of renewable energy markets. In a report from last May, galaxy digital rights, critics often consume that the energy expended by minors is either stolen from more productive use cases, or results in increased energy consumption. But because of inefficiencies in the energy market, Bitcoin miners are incentivized to utilize non rival energy that may otherwise be wasted or underutilized as this electricity tends to be the cheapest. Though the revenue associated with mining varies, miners have the luxury of flexibility with the option to switch their equipment on or off any time. This makes Bitcoin mining the ideal energy sync, anyone anywhere can monetize excess energy by plugging in equipment and switching it off at their convenience. Brian Brooks goes deeper into this problem in his testimony, saying that access production with renewables is often the challenge. Quote, in 2020 in California alone, 1.5 million megawatt hours of solar production, 5% of the total, was curtailed because production exceeded demand. And this figure understates the true extent of the problem at certain peak production hours, California solar projects have as much as 15% excess capacity. This is one reason why solar and wind power as a category have generally been unprofitable and have required government subsidies. Nick Carter's newsweek peace explains this as well, saying the reality is that electricity infrastructure is geographically constrained, and pockets of free negatively priced energy routinely emerge on the grid. Over the last decade negative prices a signal of energy over abundance have become much more common, particularly in the windy vertical corridor stretching from Texas to the dakotas. It's the stranded islands of energy growing in size every year as solar and wind account for more generation while transmission lags that are particularly ripe for Bitcoin miners. And far from driving up prices if a minor is buying energy that no one else wants, he's actually fortifying the grid, making energy available if other industrial consumers move in. Or if transmission lines are built to transport it elsewhere. This is due to the remarkable properties of mining itself. Each individual computation is statistically independent of the last one, meaning that the process of mining can be stopped at any moment without a loss of progress. This allows minors to dial down their usage on short notice if necessary. Grid operators love this as they reckon with increasingly unstable grids due to an influx of wind and solar. Normally great operators have to keep fast reacting natural gas power plants and reserve in order to backstop unreliable wind and solar, but with flexible load coming in the form of Bitcoin mining, these operators have a new tool. They can simply ask miners to produce their consumption to offset a loss of supply and miners gladly do within seconds. Today, the vast majority of Bitcoin miners in North America participate in these demand response programs. So the point of all of this is that the memo was kind of saying all of these issues, which we've seen trotted out over and over again, and some of the testimony as well as other sources like Nick Carter's news week piece have good answers for all of them. But ultimately, the question is what actually happened in the session? And the answer is honest to God not much. The block really nailed it with the title of their summary piece, no fireworks at house's Bitcoin mining hearing. So here's what I noticed personally. First we saw an actual distinction being made between proof of work and proof of stake. On the one hand this led to some why can't Bitcoin just be proof of stake instead type questions. But frankly, I don't think it's a bad thing that Congress is honing in on and judging these technologies on their own merits. Second and very related, there were a lot of basic questions. Of.

Bitcoin Brian Brooks U.S. Bitcoin mining Argentina Solana NFTs Nick Nick Carter Apple Google California
"solana nfts" Discussed on The Breakdown with NLW

The Breakdown with NLW

06:50 min | 7 months ago

"solana nfts" Discussed on The Breakdown with NLW

"What's going on guys, it is Thursday, January 6th. Welcome back to the breakdown. If you're enjoying the show, give it 5 stars, leave a rating, or join the Discord community. It's been growing very quickly recently. There's a lot more discussions going on. You can find that address in the show notes or you can go to bit dot LY slash breakdown pod. Bitly slash breakdown pod. Also, as always, as they're now a sponsor, I do marketing at FTX. So that is a disclosure. So to today's topic, just a few days in and we've got our first big crypto macro fed show. The markets have been brutal for the last 24 hours, but hopefully this show helps you put them in context. So let's do a little primer on the fed and markets and crypto just for those of you who might be joining us for the first time, or who are still new in this journey. So the fed's relationship with markets. If you can't already tell, it's a little pavlovian right? When the fed signals cheap money, lower interest rates, more support in terms of asset purchases more liquidity. Financial market actors respond positively and part of what the accumulation of that is is that they feel like they can take more risk. That benefits all risk assets, of course, but it's certainly benefits the riskiest the most because some additional number of actors or percentage of the market feels like they can move even farther out on the risk spectrum. Indeed in the extreme they feel like they have to. This is sort of the story of the last I don't know 15 years or so in market history. As the yields from safe assets have gone down, institutions of all stripes have had to move farther and farther out onto the risk spectrum. That's why you see so many more types of previously extremely risk averse organizations getting into asset classes like venture capital are more recently crypto. This has been the story for the last decade for sure between the great financial crisis and certainly this was supercharged over the last couple of years. Remember the dominant meme of 2020 was money printer go bird. And the genesis of that meme and that attitude was retail traders who were completely convinced that the Federal Reserve would not let market struggle based on COVID shutdowns and would come in riding on their monetary policy horses with all of the capital injections that the markets needed. Now, 2020 was complimented by fiscal stimulus, which is different than what the fed does and led to what has been a booming last couple of years. Now for all of this though, the pavlovian reaction works in both directions. And so when the fed signals tightening, raising rates withdrawal of asset purchases, or even balance sheet reduction, quantitative tightening, markets go in the other direction, risk off. And sometimes they go that way even more than they should. The most dramatic historical example of this was the so called taper tantrum in 2013. When markets reacted extremely poorly to the very idea that the fed would withdraw support from its quantitative easing program. So we have a pavlovian response between the fed and markets in both directions. In fact, some folks like Jeff Snyder think that the cultivation of that pavlovian reaction, the ability to influence markets via statements and media rather than through actual action is at this point the fed's chief tool in its toolkit. But what about crypto and the relationship between crypto and the fed? A big thing you see a lot of people talking about over the last 6 months is crypto's correlation to stocks. There have been a number of folks in FinTech who have tried to show Bitcoin charge versus equities charts in a way to somehow diminish Bitcoin or say it's not actually an uncorrelated asset yada yada yada. Now, my basic explanation for the relationship between crypto and stocks is super simple. For the first 8 years or so of its life, Bitcoin was not in the mainstream. It attracted a totally different type of investor than traditional equities markets. There's a lot that we could get into on that on how much it was ideological, how much it was international. Yada yada yada, the point was there wasn't ultimately that much overlap. And even in 2017, when that whole bull market happened in the ICO boom happened, it was dominated by retail investors, not traditional Wall Street types. We've now spent the last four years or so lobbying Wall Street to get in. And over the course of the last 18 months, it worked. Wall Street now has huge investment in exposure in Bitcoin and starting to be in other crypto assets as well. And this happens at both an individual and institutional level. We're talking about Wall Street institutions and traditional finance institutions coming in, as well as traditional traders who have hung up their priors and decided to just make their allocations into Bitcoin. So it follows from that that if some meaningful percentage of Bitcoin holders are now Wall Street types, things that impact Wall Street are going to impact Bitcoin. And this is especially true for these nibbly little short term things like moves between risk off and risk on. There's a whole different conversation to be had about how far this correlation really goes and how much it undermines core arguments for Bitcoin, which spoiler alert it doesn't, but that's for a different show. Nexto is a trusted and easy to use crypto platform, where you can buy cryptocurrencies at the touch of a button and start earning up to 17% annual interest that is paid out daily. They support all of the major assets on the market, and even allow you to swap one asset for another or borrow cash against your crypto without selling it. Nearly 3 million people in over 200 countries trust nexo with their digital assets. So whether you're just getting started or you're a seasoned pro, get the most of your crypto today. With nexo, at NE XO dot IO. Today's episode is sponsored by abra. Join over 1 million users and conquer crypto, with abra, and all in one simple and secure app where you can trade over 110 cryptocurrencies. Get 0% interest loans using your crypto as collateral, and earn interest, with up to 14% APY on stablecoins, and 8.15% APY on Bitcoin. Visit aber dot com or download the app from the Google Play or Apple App Store today. Abra, conquer crypto. The breakdown is sponsored by FTX. FTX is the safe regulated way to buy and sell Bitcoin and other digital assets. Trade crypto was up to 85% lower fees than top competitors. FTX U.S. is also the only leading exchange that supports both Ethereum and Solana NFTs. You can trade NFTs with no gas on FTX U.S. and gases subsidized when you withdraw off the platform. Help support the breakdown and visit FTX U.S. today. That's FTX U.S...

fed Bitcoin Jeff Snyder Solana NFTs Apple Google U.S.
"solana nfts" Discussed on The Breakdown with NLW

The Breakdown with NLW

14:35 min | 8 months ago

"solana nfts" Discussed on The Breakdown with NLW

"Literally nothing in Fiat terms. Now, block zero the genesis block wasn't actually mined like the rest of the blocks. It was instead hard coded into the original software, along with the coinbase transaction of the first 50 BTC. Those bitcoins are unspendable. Block one onward is included in the global transaction database and block one actually wouldn't be mined until January 9th. 6 days later. As you might imagine, there has been tons of speculation about why the delay. Why 6 days between the genesis block and block one? Some of theorized that satoshi spent those 6 days testing mining blocks and then deleting them and backdating the timestamp just to make sure everything was stable. A more out there theory says it's a reference to the literal story of the world's creation in the book of genesis, where God created the world in 6 days and then rested. Still, somehow this is not the most notable thing about the genesis block. That is, of course, the message left in code on the block, the times zero 3 January 2009. Chancellor on brink of second bailout for banks. Bitcoin was of course born into the world of the great financial crisis. And this headline seems to represent that. The piece was from the times UK and is still online to be read for anyone who wants to see it. Chancellor Alistair darling on brink of second bailout for banks. Billions may be needed as lending squeezed Titans. Alistair darling has been forced to consider a second bailout for banks as the lending drought worsens. The Chancellor will decide within weeks whether to pump billions more into the economy as evidence mounts that the 37 billion pound part nationalization last year has failed to keep credit flowing. Options include cash injections offering banks cheaper state guarantees to raise money privately or buying up talks at assets the times has learned. The Bank of England revealed yesterday that despite intense pressure, the banks curbed lending in the final quarter of last year and plan even tighter restrictions in the coming months. Its findings will alarm the treasury. Now, all of this seems to be a reference to the bailouts. The bank bailouts that characterize the beginning of the great financial crisis. These bailouts represented two things. The first was a demonstration of the significance, the power of private sector financial institutions. This was of course where we got this idea of too big to fail. These companies were so large that they had to be protected for the sake of the larger economy. Despite the fact that it had been their decisions, their legacy of leverage that had gotten them into the position where they needed to be bailed out in the first place. The second thing that bailouts represented was a shift in the very conception of monetary policy. We entered a world which we have been in ever since of extreme government involvement in markets, where the mandate to financial stability means in fact propping up markets through cheap money. Because of that in many ways with the bailouts really represented at least to some, was a recognition of the problem of the power flow between government and the financial sector. Nexto is a trusted and easy to use crypto platform, where you can buy cryptocurrencies at the touch of a button and start earning up to 17% annual interest that is paid out daily. They support all of the major assets on the market, and even allow you to swap one asset for another or borrow cash against your crypto without selling it. Nearly 3 million people in over 200 countries trust nexa with their digital assets. So whether you're just getting started or you're a seasoned pro, get the most of your crypto today. With nexo, at any exo dot IO. Today's episode is sponsored by abrupt. Join over 1 million users and conquer crypto, with abra, and all in one, simple and secure app where you can trade over 110 cryptocurrencies. Get 0% interest loans using your crypto as collateral, and earn interest, with up to 14% APY on stablecoins, and 8.15% APY on Bitcoin. Visit aber dot com or download the app from the Google Play or Apple App Store today. Abra, conquer crypto. The breakdown is sponsored by FTX. FTX is the safe regulated way to buy and sell Bitcoin and other digital assets. Trade crypto was up to 85% lower fees than top competitors. FTX U.S. is also the only leading exchange that supports both Ethereum and Solana NFTs. You can trade NFTs with no gas on FTX U.S. and gases subsidized when you withdraw off the platform. Help support the breakdown and visit FTX U.S. today. That's FTX U.S.. Coming back to the Bitcoin genesis block. In practical terms, that single line, the inclusion of this single message, Chancellor on brink of second bailout for banks, gave Bitcoin the stem of an ideology. Reductively that has been described or viewed as just some sort of digital libertarianism, right? A rally for governments to get out of markets in people's lives and et cetera, et cetera, et cetera. But that's not really accurate. You have to remember that reaction to an acronym for the whole bailout process from when the bailouts happen to particularly how no one in those financial firms was really held accountable was bipartisan. It was occupy Wall Street on the one side and Trump's drain the swamp on the other. Bitcoin was a very different approach to a protest because it had embedded within it a larger critique of the underlying system. When you take democratic political action, there's something you point to as not wanting or repugnant or problematic. And you try to find ways to exert power that when you concessions. Those concessions can be things like new laws. Bitcoin, as I mentioned, was a very different type of protest. It made a determination on the root cause of the problem of this system. In this case, at the most surface level, the ability for a Central Bank to even consider bailing out a traditional financial institution. Instead of just calling that out, Bitcoin actually offered an alternative to how the system was designed. Put differently, Bitcoin didn't engage with the existing financial system on its own terms. It shows exit, and as it did so, it invited other people into a new alternative. With the only precondition that they agreed to play by its rules, which were rules that theoretically couldn't be changed by people. Now, of course, in practice, it isn't this clean. Yes, the rules of Bitcoin are hard coded. It's monetary policy based on math, not people. But there is a layer of people as well. Rules like Bitcoin's only matter because of the network effect of people around them. There is a social consensus that agrees to enforce those rules and forces exit of those who wish not to. Those who do exit are forced to go recreate the network effect. An immensely difficult thing to do. This is why it was wrong headed to think that forking would diminish the value of the network on the main chain. Although lots of people thought this in 2017. The Bitcoin cash split was one of the major reasons that some were skeptical of Bitcoin. If one group could splinter, did it actually undermine this $21 million hard cap? Because there are going to be dozens and dozens of these 21 million hard cap supply things floating around with no one knowing what was the most important? It's also why it's wrong headed to think that another crypto could just choose an even more limited supply and somehow be more popular than Bitcoin because they were being more Bitcoin than Bitcoin was. Those people again would need to build some type of network effect around that to reinforce social consensus. Bitcoin spent years quietly attracting people who were looking for their own exit, their own type of alternative. And as it did, its value rose. This created one of the more interesting dynamics in Bitcoin, the weird confluence of interest between speculators and ideological holders. One reinforces the other. People who are holding based on ideology based on philosophical reasons set price floors and limit the risk to the speculators. Speculators, on the other hand, create upside and bring in new people. And of course, some of those new people in some of those speculators convert to ideological holders. Speculators increase the holder base grows and the conviction of both increases over time. Even this distinction obviously isn't as clear as I'm making it here because these categories are not mutually exclusive, and people are malleable. They can change their perspectives over time. What's more even using the idea of lumping all quote unquote ideological holders of Bitcoin together is sort of farcical. There are many ideologies which lead people to Bitcoin. Monetary policy controlled by math and not people alongside a fixed supply is a little bit different of a reason for being interested than censorship resistance, and the idea of a non sovereign money, which is also a little bit different than a portable store of value argument, which is a little bit different than a final instantaneous cross border settlement. The point of course is that there are a lot of things that range from market thesis to ideology that have brought people to Bitcoin more than just some libertarian bent, which is why it's so frustrating when people try to reduce it to that. But ultimately, all of that starts with the Chancellor on brink of a second bailout for banks line. It grounds Bitcoin in something in the real world. It plants enough of a thought of an ideology that people could rally around it, even before there was that value, even before there were these broader articulations of market theses that have brought people into the system. So how have the number of people with whom that line resonates changed over time? I think it's fairly clear to say there has been an increase, but it hasn't been a clean line. Remember, reaction one to the great financial crisis and bailouts was thanks for saving the economy. Reaction two was holy crap, there's gonna be crazy inflation. Look at all this money printing. Reaction three was holy crap, how could you bail out the banks and not have anyone go to jail for their actions? Now, on reaction to this idea that there was going to be crazy inflation, that didn't show up at least on the consumer side. In fact, what we got was just asset price inflation in a booming stock market. This surprised many people and would shape their perspective on the relationship between money printing and inflation later on. It also from a personal incentive standpoint, got a big part of the market quiet and just enjoying the gains. At the same time, it was very clear how addicted to cheap money markets had become. Now, reaction three, this frustration that there was a bailout for banks, but not accountability for the people within those financial institutions. This disaffection manifested as I mentioned before in lots of different ways. Occupy Wall Street on the left, of course, but then the rise of Trump. Remember the whole thing was about draining the swamp. His whole appeal was as an outsider of the whole D.C. complex, and that had come to mean not just politicians, but the entire mainstream system of power that ran from Wall Street to D.C.. Fast forward to COVID times. 2020 and 2021 made the stimulus of the great financial crisis look quaint. It was a whole different era and the memes entered the mainstream lexicon this time. In fact, it wasn't just crypto who initially resuscitated the money printer go burr idea. It was the WallStreetBets crowd, who bet months earlier than the hedge funders that this wave of stimulus would bring the markets back. And in so doing made a lot of professional managers who were predicting doom forever look silly. Of course, there's an inherent sort of cynicism that was involved in many of those trades. If everything was just a casino game backs up by the fed, and there wasn't really a sense of alternative plausible paths to a different life, why not go all in? While that was happening, some others were having their own revelations. Famous hedge fund Paul Tudor Jones, who wrote his great monetary inflation thesis and announced himself of Bitcoin. Michael saylor, who was coming up with his big block of ice metaphor and was about to make one of the most dramatic corporate treasury actions of all time. Over the next 12 months, many, many more came in, most notably, big institutions, many of the too big to fails. Now, the economic crisis following COVID was different from the great financial crisis. It was a demand crisis from people being in lockdown. But it's still reinforced for many, this idea that the Central Bank is a completely political apparatus now. That ultimately exists to prop up the markets. Whether true or not that is a major narrative for people on both sides of the political aisle heading into 2022. So here we are, 13 years on from Chancellor on brink of second bailout for banks. The involvement of government and markets that satoshi seemed to identify is not only still present but stronger than ever. The group of people who have concern about that involvement has also subsequently grown. Part of why it has grown is the existence of an alternative in Bitcoin that has, despite so much effort, not died. An alternative that the very banks who were the beneficiaries of the bailout have also started to capitulate to and get involved with. We've even seen a government in El Salvador show that Bitcoin represents an entirely different form of an exit from the existing system than many of us thought possible. I describe this show every day is about big picture power shifts, and there are a lot of things in the crypto space that are contenders that are fighting to be so. NFTs could be just a bunch of hype and jpegs that don't have any value, but they could also represent a disruptive force to the music industry. The gaming industry, you name it. Dows could be complicated. Burdensome organizations that never really get off the ground. Or they could totally change how people come together to leverage pooled capital into what ends. DeFi could just be financial yield farming games, or it could change the way the pipes of the financial system work. Web three could just be a clever rebranding of things people already don't like. Again, to burn some and differing from consumer norms to make a dent, or it could undermine the model of ownership of the services we interact with every day. The point of course is that all of these things are potential disruptors. They have the potential to shift power. But 13 years on from Chancellor, it's clear that Bitcoin already has. The very fact of its existence, growth and success has changed the possibility set for individuals and institutions. An ever growing number of which avail themselves of that new optionality every day. So welcome back to 2022. I'm excited for this year. Thanks again to nexor dot IO, abra and FTX for sponsoring the show. Rate it, subscribe it, review it, join the breakers Discord, and until tomorrow guys be safe and take care of each other. Peace.

Bitcoin Chancellor Alistair darling U.S. Solana NFTs satoshi Alistair darling Fiat Bank of England Titans Central Bank treasury Trump COVID times
"solana nfts" Discussed on The Breakdown with NLW

The Breakdown with NLW

10:56 min | 8 months ago

"solana nfts" Discussed on The Breakdown with NLW

"Today. With nexo, at any exo dot IO. Today's episode is sponsored by abra. Join over 1 million users and conquer crypto, with abra, and all in one, simple and secure app, where you can trade over 110 cryptocurrencies. Get 0% interest loans using your crypto as collateral, and earn interest, with up to 14% APY on stablecoins, and 8.15% APY on Bitcoin. Visit aber dot com or download the app from the Google Play or Apple App Store today. Abra, conquer crypto. The breakdown is sponsored by FTX. FTX is the safe regulated way to buy and sell Bitcoin and other digital assets. Trade crypto is up to 85% lower fees than top competitors. FTX U.S. is also the only leading exchange that supports both Ethereum and Solana NFTs. You can trade NFTs with no gas on FTX U.S. and gases subsidized when you withdraw off the platform. Help support the breakdown and visit FTX U.S. today. That's FTX U.S.. Number 5 on my list of power shifts I'm watching is Bitcoin versus Fiat. Now, there are a lot of possible legacies of the El Salvador Bitcoin experiment. And we won't know how it influences the rest of the world for a while to come yet. But it is notable that for the first time in 2021, a sovereign nation chose to make this non sovereign uncontrollable currency legal tender. That is as power shifty as power shifty gets, and I am watching carefully to see how this plays out in 2022. What are the other countries considering making that same game theoretical move? Are there central banks who even if not interested in replacing their Fiat currencies are thinking about putting Bitcoin on the books? I'm not even gonna go much deeper on this because I think it's gonna be such a recurring theme this year, but you can't deny that Bitcoin versus Fiat is lurking as one of the biggest potential power shifts of the year and beyond. Speaking of Bitcoin in El Salvador, I asked folks on my Twitter, what they thought I should include in these big picture power shifts I'm watching next year. And one that stood out was the IMF versus El Salvador, or really the IMF versus Bitcoin bonds. So you'll remember El Salvador reached out to the IMF and the World Bank in the wake of their Bitcoin legal tender decision and tried to get their help with implementation and other issues only to be rebuffed. A few months later, when it was time for El Salvador to negotiate another loan from the IMF, they instead chose to sell Bitcoin backed bonds. Now there were plenty of folks who said that this was just worse than the other types of el Salvadoran debt that was available on the markets, Matt Levine notable among them, but that doesn't really matter if there's a market that's willing to give you better terms because you're invested in the same thing they're invested in, which is, of course, Bitcoin. I think the thing that matters to me from this heuristic of power shifts is that did you expect in 2022 for the IMF to have actual practical consideration for where emerging markets might turn for loans? I certainly didn't but you better believe that's something that I'm going to be paying attention to in the year to come. So those are all big kind of macro picture things. And now we're going to transition a little bit more into the micro into the crypto industry. And in a lot of ways, I think the way that I would frame this whole power shift idea and how it relates to the crypto industry is that to me, Bitcoin is clearly in the role of big picture power shift. It is having a disruptive effect right now in the markets in a macro landscape. You can't ignore it. Everything else going on in crypto is competing to be in a similar position. Much of it has very disruptive aspirational goals and is trying to break out of this industry subsection to have the impact in the world that it actually believes that it can have. I think even if not all those disruptions will come to be what the people invested in those ecosystems want them to be, they're still worth paying attention to from this framework of power. So number 7 on the list of shifts that I'm watching in 2022 is Bitcoin D 5 versus other DeFi. For this, I'm not using the framework of Bitcoin as DeFi because it's a permissionless decentralized currency, which I think is a reasonable argument. Instead, what I'm talking about is the sort of smart contract powered protocols and systems that create interesting open permissionless financial primitives. Now already you could argue there is a Bitcoin DeFi where people are using wrapped Bitcoin as the base layer asset for DeFi systems. However, if 2021 is any indication, there's going to be a lot more attempts to have Bitcoin native DeFi in the year to come. First taproot expands some of the capacities we have for that. Second, there are already protocols building some of this sort of functionality on Bitcoin like stacks. Third, you have, of course, Jack Dorsey leaving his role on Twitter. It seems in part to build exactly this sort of thing via a new division at square. How much will the sound money monetary premium of Bitcoin attract defied to it once the tooling starts to become available? Speaking of DeFi number 8 on my list of power shifts I'm watching is DeFi versus KYC. And what I mean of course is that if anything in the crypto space outside of stablecoins seems to be headed for a regulatory reckoning, it is of course DeFi. The language that politicians are using this is extremely aggressive in many cases, and really the question in some ways is whether the version of DeFi that we see that has no relationship really with the KYC AML bank secrecy act regime can survive in mainstream U.S. society or whether it will be shunted out. Will the story of 2022 be permissioned DeFi where you have the KYC to use these protocols? And if that is the case, what is the value proposition outside of something like censorship resistance? There are plenty of possible answers to that, but there's certainly going to be questions that I think are forced this year. Moving to a different part of the crypto space, let's talk about NFTs for a second. I want to talk about them in two contexts. The first is NFTs and web three games which include all the play to earn games and things like that versus the traditional gaming sector. Last year, of course, was a breakout for the whole play to earn NFT powered gaming movement. Axiom infinity was the poster child for this, but there were many, many others with a lot more in incubation by the end of the year. The traditional gaming space for its part is no big fan of NFTs. Remember when ubisoft announced that they were going to incorporate NFTs into a title, there was so much backlash that they had to walk it back. Now I've tried to wrap my head around it. It seems like some of its environmental. It seems like some of its people holding a grudge that crypto mining has made graphic cards much more expensive and harder to acquire for the last decade. But whatever the case, given how big an industry gaming is, given how much human time is devoted to it, I think it's going to be fascinating to see how that plays out. There's also certainly a lot of investors in the space who are making a bet that this is going to be a serious area to watch. A second power shift around NFTs that I'm watching in 2022 and this is probably a little ambitious and personal is NFTs versus record labels. And by record labels, I mean really the whole music industry complex. When I first covered NFTs on this show, it was in the context of their potential disruption to a music industry model, which is largely exploitative and hugely problematic for nearly everyone except the biggest biggest superstars in the space. It's no surprise to me that some of the earliest adopter of NFTs were in fact musicians who had lived inside the system and seen just the crazy power disequilibrium between them and their labels and the other representation that they had, and the other gatekeepers they had to access in order to play around in the music space. Now they have a mechanism to go directly to their fans to incorporate their fans in the upside of what they do, although of course we may have speaking of regulations, some more securities consideration for what that might mean, but regardless, I think the idea that NFTs represent a fundamental potential power shift in the music industry is something that I'm not only watching but actively rooting on and I hope sees some traction in 2022. 11th on this list of power shifts I'm watching in 2022 is Dow's versus other forms of capital formation. I've talked a lot about dows, it was a big subject for the end of your extravaganza. To me, they just make sense in the context of something that exists as an Internet native organizing force. Now I kind of think that 2022 is going to see a lot of call it over complication and dows. There will be a lot of false starts and missteps and really frustrating moments of people rediscovering the problems of human coordination and discovering or perhaps better remembering that a token won't solve the messiness of any sort of human democratic organization. At the same time, I also think that we'll probably get some examples of extremely lightweight hyper productive capital formation and capital deployment dows that have very specific mandates, very specific goals, very few decisions, and a lot more just raw group power manifested through money. I think that could be pretty game changing in a variety of ways. And so it's certainly something that I'm keeping an eye on and will likely end up being dragged into in some way, shape or form. Finally, number 12 gotta close it out with web two versus web three. One of the hallmarks of the end of 2021 was investors who had missed almost all of the crypto movement rising their heads up to try to take a dump on whatever they thought web three was. Now, I don't personally feel like I'm in a position where I have to defend web three against the onslaught. I do think of course that you have to examine people's motivations and in the same way that perhaps you should be wary of people shilling a protocol that they own lots of. You should also be wary of people who see their livelihood being disrupted right out from under their eyes. How you weigh how those incentives play in people's opinions and where you come out between them is ultimately your own opinion. But it does feel to me like there is a confrontation coming between the models that made web two work and the models that web three is trying to develop. I think this one was an inevitable clash and is going to be going on in some cases within a single organization. Can Facebook or now meta really be a web three native company or will it always be web two? Looking to own an extract as much as it can while giving lip service to the ideals of decentralization at any other principle that seems to matter for the folks who are most invested in web three. I don't know the answer, but I know that it's going to be a big part of 2022 and it's certainly something we're going to come back to. All right guys, there it is. 12 power shifts I'm watching in 2022, let me know what yours are. Come join the Discord and jump into the conversation. Hit me up on Twitter at MLW. It's gonna be a fun year and I'm glad to have you here hanging out as we dive into it. Until tomorrow guys, be safe and take care of each other. Peace.

Bitcoin El Salvador IMF U.S. Solana NFTs Fiat Matt Levine Twitter Jack Dorsey World Bank Apple Google ubisoft Dow Facebook