The Power to Mint Money

Transcript

bankless station welcome to another episode of state of the nation at least that's the format we're trying to keep here but the guest today is just you and I David and and we are the guests just you actually because I'm going to be uh walking through a concept that you really wanted the bankless nation to understand you think this is very powerful the the title of this episode and the theme is the power to Mint money the power to Mint money and I think David as I'm looking through what you've got prepared for us kind of this this agenda um you've identified some patterns that have been found in every single bull market to date 2013 2017 2021 and 2022 how they've grown and also how they've

fallen and you're using that as a predictor a way to sort of understand the future the next bull market and how this cryptocurrency industry is going to evolve so I think it's a a powerful model that you're using and this uh this repeating uh you know pattern but you tell us what are we in store for in this episode we're in store for a lot of things I I think this hopefully uh turns into uh a kind of episode that I think only Bank lists can really produce and which is why I'm really really excited about this this is one part A History lesson about the history of the crypto industry thus far what was the 2013 bull market like what was the 2017 bull market like and of course what was the

most recent bull market like and what are the common denominators between all of those things so if you only came in bankless listener for the 2020 to 2021 bull market this might be really useful to just take a snapshot in history about the bull markets that happened before your arrival Ryan and I can speak very uh very well about the 2017 bull market the 23rd teen bull market was both before our times however it was of course much more simple to understand because of how early it was but understanding these things and then also understanding at very first principles what this whole crypto industry is based on can we can extend this forward into again what is the next bull market going to look like but also just what does

this mean for humans and I'll give a little teaser here every single bull market is noted is marked by a Cambrian explosion of assets because what is this industry based off of Ryan the free and open and permissionless ability for humans to Mint assets which is previously a superpower that was gated by uh governments monarchies any sort of social Elite it's the one percent if you will Bankers Bankers yeah well this also goes back to Roman times where the concept of uh coinage was even produced in the first place and leaders like government leaders of of the Roman Empire would start to dilute uh the value of their coin by adding in fake

Metals into gold to dilute them so like the concept of seniorage and dilution of of Fiat of currency has been something baked into humans forever but only the elites had this power and for the first time in human history humans have this power to Mint new monies and every time we express this power in the crypto industry line bull market has happened 2013 2017 2021 and I'm predicting 2025-ish whenever the next bull market arises you can bet that another Cambrian explosion of assets and asset minting will arrive and we will go through this story and unpack every single Nuance along the way there it is it's always been about tokens tokens way down every single time

every single time we've had a bull run it's because of one thing we've invented some new way to issue tokens I think that's what you're saying here David guys we're going to explore that but before we do gotta shout out our friends and sponsors over at crypto tax calculator have you done your taxes yet if you've been deferring doing your taxes maybe it's because you feel like it's a nightmare all of the layer 2 transactions that you did last year all of the D5 trading that you did all of the nfts here and there that you don't want to think about uh maybe you're dreading putting that all together and sending it to your accountant or inputting it into your tax software or whatever crypto tax calculator is a way to sort out that tax nightmare it deals with the complex transactions that are

especially hard for other crypto tax software you input your youth addresses it spits out what you owe like that's how it happens and that integrated basically everything look man this wasn't available people back in the day David okay um you know Grandpa crypto when he was doing these early maker transactions I'm talking about myself uh cdps remember cdps cdps trying to tax log that and figure out the status is well now we've got tools that do it for you David there is a special offer I think for the bankless nation as well can you give folks an idea of what that is yeah that is a 30 discount for people that sign up for crypto tax calculator with the code Bank 30 bank 30. there's a link in the show notes to go get started on your taxes uh

and it just inputs and outputs again I love hearing you say that uh and also again 30 discount Bank 30. uh if you are bankless premium subscriber there is a 40 discount extra 10 for being part of the bankless nation you can find that uh code inside of the bankless nation Discord for all the premium members out there why aren't you a premium member I'll ask you bankless listener uh you should sign up there's a bunch of cool stuff yeah go bankless become a citizen um all right David uh give us the last piece there's a comment in this in the YouTube I need to read it Ryan uh uh sticks intern asks Canton AI like Ryan just do taxes automatically this is not for AIS all right this is for all the regular humans listening to this it's

not for robots we have other powers I mean robots have other powers um why are we so why did you decide to put this together other than David um having a second guest that had to get a guest catch the flu this morning and cancel last minute um and then we're like you know who should we bring on is another guest and you're like hey I'm throwing my hand up I want to be the guest because I've got something to say um why is this so important to you and what what should listeners really look out for in this uh it's Professor David episode as we get into it yeah classroom time with bank list yeah again like I said this is I think an episode that I think you and I are particularly good suited for for uh producing it's talking about the crypto as the the details of

it the the details of this these last bull markets but also going down to base principles of crypto is like what does crypto really unlock for humans but we'll end with the of course the great line with great power comes great responsibility and this related to some of the uh Securities conversations that we also had at the beginning of this year where like I've got in trouble with the Apes because I said everything all apes or Securities implying that everything is a security nfts exactly yeah but then bringing up the broader conversation as like guys we want our assets to be bullish and that is what Securities laws are and so we have this new foundability called being able to Mint a token mint and nft mint and erc20 token and that power has previously been

restricted and gate kept and controlled by the elites now we all have it but we also need to understand that now that we have this power with great cat power comes great responsibility so how as humans as Humanity are we going to contend with the fact that we have this superpower that can be very destructive as well as very constructive so some philosophy some history some crypto Alpha it's all baked into one which is why I wanted to do this episode fun fact by the way did you know that David's nickname in high school was Toby McGuire it was Spider-Man movies great power comes great responsibility I learned that about uh 18 months ago about you David and I don't think I'll forget it but guys you're in for a special episode we get you in the classroom today talk

about all of these things talk about the power to Mint money what that means for the opportunities in crypto as well before we get into the episode we want you to uh stay tuned because we're going to talk about the sponsors that made this episode possible in particular Kraken which is our number one recommended exchange for crypto go create an account sign up for Kraken Kraken has been a leader in the crypto industry for the last 12 years dedicated to accelerating the global adoption of crypto Kraken puts an emphasis on security transparency and client support which is why over 9 million clients have come to love kraken's products whether you're a beginner or a pro the Kraken ux is simple intuitive and frictionless making the kraken app a great place for

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last bull market had a ton of them did you get them all maybe you missed one so here's what you should do go to earnify and plug in your ethereum wallet and earn if I will tell you if you have any unclaimed airdrops that you can get and it also does poapps and mintable nfts any kind of money that your wallet can claim earnify will tell you about it and you should probably do it now because some airdrops expire and if you sign up for earnify they'll email you anytime one of your wallets has a new airdrop for it to make sure that you never lose an airdrop ever again you can also upgrade to earn five premium to unlock access to airdrops that are beyond the basics and are able to set reminders for more wallets and for just under 21 a month it probably pays for itself with

just one airdrop so plug in your wallets at earnify and see what you get that's EA rni.fi and make sure you never lose another airdrop all right David let's stick into this I I think the first question we have to establish and set the context for is this question of money what is money I think uh if you've been a long time bank list listener you've probably heard Ryan and I talk about this but if people think like oh money it's the cash in your wallet right it's the number in your bank account but we really like to get deep here on Bank lists of course uh and so I'm gonna pull out a quote from Yuval Noah Harari who's a the author of the book sapiens which uh I know Ryan it's one of yours my favorite books and the quote goes the story of money is

more important to the evolution of society than religion corporations and a host of other human imagined institutions money is probably the most successful story ever told it has no objective value but then you have these Master storytellers the big Bankers the finance ministers and they come and tell you a very convincing Story look at this piece of paper it's actually worth 10 bananas and that story Works try telling that story to a chimpanzee it won't work when right when I say end of that quote when I say that quote Ryan what triggers in your brain I I love it for so many reasons uh first of all I think this quote comes from the

book sapiens where uh you've all know a Harari paints Humanity as a storing telling uh species he says that storytelling and our ability to work collectively cooperatively that is the thing that makes humans special Humanity as a systemic a single entity and it's crazy to me that how well he identifies that and just kind of lays it bare he calls it the story of money right another word for story that we might use is um in crypto Is MeMe right a meme of money The Narrative of money because what actually is uh what actually is money other than a story other than a

meme other than some shared belief that we all collectively reach consensus on that this particular piece of paper or these digits in a bank account somewhere has value the reason this is so fundamentally important to me is because like um I think that for most of my life prior to crypto I never gave a thought to what money actually is right I just kind of take it for granted I've never I I never kind of considered that it takes a collective group of humans all thinking the same thing about money for a money to actually manifest and if suddenly we all stop viewing a certain piece of paper or a certain denominated digit as

money then it ceases to be money it it's so weird this ability to kind of manufacture something from nothing through shared cooperation and shared coordination but that's exactly what we do with things like money there are other institutions like this of course like you know he talks about the the LLC the corporation these are also shared stories figments of our imagination but money is perhaps the most powerful because it is underneath all of the other things so that's what I think of when I hear this quote yeah and I think that's really great context and we're going to start to apply some of these thoughts about storytelling behind money because it's not constrained to just money actually like think about Tesla stock great story behind Tesla stock and

perhaps that's why the valuation on Tesla has been so high and so this is really uh the story goes beyond money and it's really just Finance right there's a there's a market capitalization to a lot of assets and the how valuable these assets are are a large part about the story of the fundamentals being hold and so it's one thing to have fundamentals but it's the story around fundamentals that really creates that market price in the secondary markets we just got out done with our podcast with Chris bernitski and the theme of that episode was really about how markets are just psyche and when there is a story told about something that is the world of Finance Finance is about the difference the elevation of the value of assets above

and beyond their fundamentals to bacon future growth and if you can tell a good story you can tell a story about future growth you end up ultimately impacting the valuations of these assets and so I want to pause there too right on this idea of like somebody's I know somebody's thinking they're back in their mind you're going to throw their hands up at this point in time and they'll say but David I went to business school okay I I got my MBA and they told us how to Value companies right it's discounted Cash Net Present Value discounted future cash flows right so it's DCF model discounted cash flows you model that over time and you get the value just because things trade off of their fundamental value you know doesn't mean that like they have fundamental value the fundamental value is driven by

as I was taught in business school discounted um you've net present value of discount and future cash flows basically right even that though pause and think for a second even that model itself discounted value of future cash flow that is a story right it's just a story that we always you know reach consensus on sometime between like the 1940s and 1970s and it's a story that become so popular is put into business school textbooks and how to value a company and baked into our psyche but it's still a story and it's a good story and it's perhaps the correct story as in it is the correct way to Value an asset but it is a story nonetheless

it's only correct if we all agree it's correct right we could all decide to say no actually you know profit doesn't matter anymore it's all about growth it's all about revenue and you kind of change the you know the way you fundamentally evaluate you just change the story and then you change the valuation of every company in fact I think some someone that that's what sort of happened with stocks and other assets over the last 10 years so just even when you think there's not a story is the point there's still a story behind uh the value that is the story yeah and so this brings us to the question all right what is crypto doing it's doing a lot of things uh distributed systems solving the Byzantine generals uh problem I think in the context of this episode I'll make the claim that crypto is

shattering the current story of money and the current story of money is a paradigm of Fiat currencies and largely just the US dollar if you look at the market cap of all Fiat currencies the story of Fiat currencies is really the story of the US dollar especially when a lot of Fiat currencies are just based around the FED base basic and so what is crypto doing it's shattering this story and so I'm going to share my screen here real quick and share what I think really breaks the fourth wall of money which is the one trillion dollar coin we are looking at a coin that is worth one trillion dollars I don't think this thing ever got minted but like the thought experiment itself is the point where like to me the the idea of the one

trillion dollar coin like goes full circle about the farce of Fiat money that's it starts to like break through and puncture the fabric of reality for so many people when they see a one trillion dollar coin it really begs the question all right what's money and so crypto obviously didn't produce the one trillion dollar coin but at the same time that crypto is arriving on the scene the Fiat money system starts to fall apart and so we are starting to puncture through one story as another story arrives on the scene and this new story is is crypto money right is well but the one trillion dollar coin this is not just a a fabrication this is actually a serious proposal right it's a serious proposal yes which is then treated by as a farce by the crypto

industry because we get it well I I recall it like originally emerging during the um you know the debt ceiling crisis way back in you know the early 2010s as you know something that was um a serious proposal by Congress at the time and then I recall recall it uh emerged do you remember in March uh 2022 the beginning of uh kovid Rashida taleb in was an advocate of this too uh and uh she was talking about this this could be a good measure to take in response wants to sort of some of the debt cycle type issues involved in covid so these are actually serious proposals by our

government bodies and our legislators and those in in Powers the one trillion dollar coin is not just a thought experiment it's like an actual proposal yes it's an actual proposal from the people who are still inside of the story of Fiat money and then the crypto people who have like really deeply thought about what is money understand that this is a farce from our perspective because we were kind of like quote unquote enlightened to this concept of money like we understand the concept of money and so this is to me this is what really crypto is doing it's shattering the current story of money and is taking the power around storytelling around money and it's giving it to everyone right like mints make a new blockchain make a new token uh this ability I've minted at the rc20 token I've minted a handful I have the

power to Mint new tokens and if I wanted to I could engage in a storytelling campaign about my tokens right except so I want to make a clear difference is that crypto is shattering the illusion of the dollar but in its place it's not giving us another new money it's giving us a new ability it's not Indiana jonesing where it's taking away one money and replacing it with another although the bitcoiners would love to tell you that that's what it's either Bitcoin is doing instead it's crypto shattering one story of money and giving us the ability to tell any story about money so we're not getting a new crypto money to replace dollars we're getting a new ability does that difference make sense it it does make sense and I think that the maybe the link here with the

story of the one trillion dollar coin is what made that so audacious is that the US government was essentially saying we can mint a trillion dollars at any point in time right they're basically saying like uh yeah all of that point system that's out in the economy um we control it and we can inflate the number of points at any point in time and we get to control that right and what you're saying I think that is um well crypto gives that power into the hands of the people right into the hands of communities and it sort of lays bare that um this is always what people do right right is is basically like it's it's all about a shared story and a narrative and somebody has the ability

to Mint every money system that was ever invented and generally a small group had the power to Mint right now this is democratizing that ability the power the power to Mint and what you're saying though is that it's a broader story worry it's more about kind of the verb of being able to Mint rather than a specific coin kind of knocking out all of the previous versions of of minted coins because if crypto just came in and said like oh the Dollar's out here's the new money it's kind of like old boss same as the new boss it's really much more powerful if crypto gives us the power to make any money that is and that's also in line with the progress of the internet right before we had before

the internet we had like I don't know like six five a handful of telecommunications News broadcasting services and then the internet came and then we had like 10 000 bloggers right and so new technology comes and it enables a thousand of what was previously centralized and controlled and Elite to be democratized to the masses and so this is what crypto is doing with money we have a few Fiat currencies mainly the dollar also the Euro Japanese Yen and instead of just like replacing it with a new better version It's just opening up the ability to make any of these things up to everyone to the free market right so it's it's replaced the dollar with the ability for any money to come into existence and so that is really what

what is crypto here to do it's here to democratize the power to Mint new assets and let the money what what money becomes adopted as a result of that up to the free market rather any sort of like top-down and controlled Authority and David let me ask you when you're saying money you're using that as shorthand for any asset that is valuable am I right correct yes any assay I'm not including nfts any asset that has a premium to it so you're not just saying let me let's be clear about this you're not just saying when you say when we're using the term money in this episode we're not just say saying things that are a store value medium exchange unit of account things like the dollar or the Euro or the Yen or like you know nation-state

currencies we're also saying like the stock for instance the additional value um that you know you might store in in stock that would be a type of money a type of asset right talking power to Mint stock um the power to Mint different other forms of of Collectibles I would say um is that correct that's kind of you're saying money you mean it's that broad it's like assets I think would be the correct word but money is like more fun of a word and more striking but it's really the power to Mint new assets and this is also where we get into conversations of just like the authorities the powers that be don't like it when the people of the world commit new assets because how do they tax it right like how like the Romans

don't want other people to make new money because that they had the power of senior age and if other people could make new money it reduces their power to issue new coins and so like the powers that be one of the way one of the core ways that the powers that be of whatever organizational system that has come throughout history one of the ways that they maintain power is they maintain control over the asset printer the money printer the ability to Mint new assets and so now that we have that power we have experienced three bull markets and this is what the subject of the rest of this episode is going to be is like what do humans do when we have this power like what is our behavior when we are expressing this new power that we have

which is the ability to make new assets right that's kind of what we've seen play now so so I guess if you are an Empire the one thing the one story that you have to enforce is your story around money because that gives you kind of control over your sprawling Empire but okay let's talk about this so if crypto was really basically giving individuals the power to Mint new assets um what it what patterns do we see play out in all of these bull cycles previously is it is it sort of the case where in each of these bull cycles previously maybe we can need to get in the history of this but in each of these both Cycles we've got this new power to Mint money or tokens or assets remember something honest with those things meant to

something like this and then we use that power Flex it up to the map to the Max and something happens to cause like we we take it too far yeah tell us about tell us about the how we've like use the power to Mint new Assets in crypto historically yeah so looking back at the bull markets that we're going to we're going to dive into every individual bull market um just to explore and unpack each one we'll do an autopsy of every single bull market the the patterns I've identified is that first there's a trigger something new happens something net new brand new onto the scene and second as a result of that a Cambrian explosion happens because of this new thing that we've unlocked this new reason to Mint money this new uh kind of money that

we're printing in the crypto world so a Cambrian explosion happens that's phase two phase three is corruption sets in uh grifter's come because all of this money this new money printing is happening all over the place and people are trying to get their hands on on it and then they over print and they over over print exactly they over print they over issue they're not responsible and then as a result of that a collapse happens and that's phase four uh so trigger can't bring explosion corruption craps collapse these are the four phases I've identified in every single bull market do you know it's funny about this this almost reminds me of um red dalio's idea of long-term debt Cycles oh really across kind of nation states and Empires well it basically plays out like this there's some sort of like trigger for the US you know in um Bretton Woods it

was the end of World War II dominant power that was kind of the trigger and then you get Cambrian explosion of the US economy and the dollar it's everywhere it now becomes the Petro dollar it dominates the medium of exchange and you have account all around the world 70 of all you know values traded in dollars at this point time then you see corruption starting to set in huh we could just mint this we can make new money we can't wait this is interesting well these These are seeds of the corruption and then later this is dalio's prediction um at some point all of these Empires that create and harness money is part of their empire they collapse after the corruption sets in they have to relieve all of this debt so what's interesting is the pattern you established for crypto actually happens

over the like what is dalio's Cycles like 70-year periods and time sometimes Empires go through a few of these Cycles like you know hundreds of of years type period of time when crypto it just happens like real fast real fast like every four years we do this and uh we repeat it because we don't learn the lessons because you know what is the common denominator between everything here humans it's just us we have the same behaviors we have the same DNA we have the same brains but it doesn't matter what cycle it's on uh the the fact that humans like all financial markets are ultimately based on human Collective brain power means that these same patterns are going to happen again and again and again which is why we want to teach this lesson to the bankless nation because this is going to happen again

we're going to do this again yeah next bull market it will play out just like this I promise you to a T are you ready to get into 28 2013. yeah take us back to 2013. okay so Ryan did you know in 2013 this is the earliest I'm sharing my screen here uh I'm the earliest snapshot of coin market cap we can't even use coin gecko because coin gecko came after coin market cap the earliest snapshot uh coin market cap goes back to is the 5th of May 2013 where there is a whopping 10 crypto assets listed Bitcoin Litecoin name coin purecoin feather coin coin Tara coin Dev coin Nova credit coin yeah frycoin yeah this guy would be crazy that 20 percent of these tokens are

actually still around Bitcoin and Litecoin um all the other ones have largely gone to zero the top ten right well okay let's let's throw out these market caps so uh Bitcoin one point three billion dollars wow at the time is a hundred and fifteen dollars 115.50 at the time so we're looking at a total crypto market cap of about 1.4 billion 1.5 so yeah something like that wow yeah okay so this is the state of where things are in 2013 Bitcoin had been around for four years now three and a half years now uh we're kind of into already this growing energy around bitcoin price um Litecoin was created in 2011 uh and Litecoin it was just a fork

of Bitcoin with very minute like parameters changed like they made the blocks faster they did use a different hashing algorithm largely the same thing as Bitcoin it's really just the same thing as Bitcoin just like there was a meme right there was a meme Bitcoin is gold Litecoin is silver Litecoin is silver of course of course you have a silver and gold and so like the funny thing is like I think this will take too long to do but if you like skip forward in the weeks you'll kind of just see this look I've fast forward two more weeks there's already four more coins BBQ coin if you will uh and then you can you can just see these prices like play out over time um but this is the idea so this is the trigger the trigger is Bitcoin was created and then as a result of that

trigger people like oh blockchains oh internet scarcity how about Litecoin I'll just Tinker with Bitcoin and I'll make a new one and Litecoin came in and like created a a you know 50 million dollars of value inside of a year 50 million value in a year that's great and so this is the trigger for this first ever Cambrian explosion in the crypto space which was the proof of what we call the proof of work fork and fair launch era as in oh proof of work blockchains you can just Fork Bitcoin and make many more many many more of them and so kind of in the same era as like defy summer which was like uh yield farming in order to distribute there was like this fork and fair launch era where you could Fork Bitcoin you could Fork Litecoin launch a brand new token have a

different way of Distributing it different proof of work algorithm and that was that was super like Innovative and so uh this is where things got started uh Amer American coin meme coin digital coin Franco cheese chn coin BBQ coin mega coin fast coin Dogecoin came out of this cohort Dogecoin in 2013. Bitcoin Fork uh I think a Dogecoin was a Litecoin Fork actually oh okay which is a fork of Bitcoin right so uh it's a fork of the code base it's not a fork of the blockchain but yes you're right yeah uh and so like we're watching these like prices play out right and we're watching the first bull market happen look Bitcoin had just hit six billion dollars look in one week it goes from 326 to 490 that's insane that's insane those are

the days oh well we started this with Bitcoin price at 100 and now we're at 870. I think we're all I think we actually just passed the peak right here which is January of 2014. so we're on that we're on the downtrend but this is this is the pattern right what was that the uh the trigger then we had a Bitcoin is super successful and uh turns out you can Fork other versions of of Bitcoin that was kind of the trigger yep um and then we saw the Cambrian explosion of all of the these other coins we should say some of these were new newer experiments right like um purecoin was was I think one of the first proof of stake coins so you had some early dabbling of that name coin was that was sort of a ancestor of ens ens as a blockchain domain service type of

blockchain but a lot of these were kind of just Forks of Bitcoin I guess xrp came out at the time yeah um all right so we got the the trigger I think we're seeing the Cambrian explosion what about the corruption so what is the corruption part of the cycle so the corruption part of the cycle is we started in April of 2013 there were seven cryptocurrencies listed on coin market cap by the end of 2014 there were 513. so a year and a half basically 500 new currencies were made now do you think Ryan that in the early days of crypto like no metamask no ethereum like every single blockchain had its own wallet how many like people were buying all these assets enough is there demand

for 500 is there demand for 500 currencies and also Bitcoin at a market cap of 10 billion dollars back in 2013 10 billion dollars was probably insane back then you know I'm gonna say I'm gonna say no I'm gonna say people got greedy or like I guess a more charitable explanation I don't know if you call this corruption is but like David you just opened this episode you said this is the power to meant money people using their powers people use the power minting money yeah why are you calling this corruption that uh well I guess I wasn't there for 2013. maybe corruption is perhaps semantics but I think the the point is is like you're right people use this new power to Mint new money there was also appetite to buy the new monies so people wanted to go look it down the market cap stack on bitcoin at 10

billion dollars I'm gonna buy made safecoin at seven million dollars that's a better deal uh and I can there's more upside there maybe it's the next Bitcoin and so like the whole like maybe it's the next Bitcoin like buying lower market cap assets because they want to buy to get rich people will take advantage of that you can imagine grifters come in and tell you like oh like uh you know xrp it's the next Bitcoin is going to be the Swift of of the internet right and so like these narratives come in these storytellings come in people start to flex their storytelling abilities like why my money's better than your money uh probably like this is the Genesis of like maximalism Behavior about people being maximalist about that one

particular coin funny like but maximalism was probably also part of the um the antidote to this problem of too many coins you know it's basically like well no there is only one Bitcoin stop talking about your like 54 exactly we don't care about that right okay so uh by the end like I said by the end of 2014 513 cryptocurrencies listed on on coin market cap uh if we get into the Ico Mania there are around the start of Ico Mania I'll stop sharing screen here uh there are you skipping forward to the next era or did we do the collapse yet because oh that was a collapse Cloud prices went to like basically zero everyone thought it was dead it was the

first ever Bitcoin bubble and so when Bitcoin goes from uh where it was like a 10 billion dollar market cap to where it fell down below one billion dollar market cap the idea that like it was actually dead is probably pretty like easy to accept like oh that was a one-time thing like that's never coming back like it's easy to say Bitcoin always comes back after it's come back four times but Bitcoin had never come back before then uh and so remember the the narratives in this era people were like I'm done with public blockchains right it was blockchain blockchain not Bitcoin right and so is the idea that oh well Enterprise blockchains could be a thing there's all sorts of narratives this has been IBM hyperledger came around it's a really brutal bear Market in fact like I remember some of it I wasn't

nearly as plugged in but like uh that was definitely the era of bitcoin's dead never coming back it was all the Ponzi all along it you know got over a thousand in terms of price and fell all the way back down to the hundreds never coming back after this 100 and then that was like the 2014 to 2016 era that two year long bear Market where everyone everyone left except for the Die Hard Believers and you kind of had to be crazy to believe in Bitcoin at that time like to be the type of person to believe in Bitcoin but that it would come back before it had ever come back before you kind of got to be an insane person and insane in a good way too yeah in all the best ways uh so we got the trigger we said became an explosion

we saw the corruption setting in and then the collapse all online because this power to first of all Mint new coins in Bitcoin but then like create Forks of Bitcoin essentially and mint even newer versions of Bitcoin exactly exactly yeah and like it just overextended itself we Flex this I think your internet cut out for a second yeah uh the stream's still up and running so we're good so I'm gonna I'm gonna continue um okay good you ready to go into the Ico Mania okay sorry about the stream quality I'm getting uh drop frames but uh we'll see how that goes we're recording locally uh okay uh Ico Mania 2017 at the start of 2017 there were about

789 cryptocurrencies listed on coin market cap so only 200 added in the next two years after the first collapse of the first bull market by the end of 2018 Ryan in the at the at the culmination of the Ico Mania there would ultimately become over 200 or 2 000 cryptocurrencies so 789 to over 2 000. uh 12 of them had over a billion dollar market cap now this is called the Ico Mania I think Ryan you know the answer to this what was the first Ico the very first oh that would be auger very first Ico uh no uh auger was the very first Ico for a token yeah ethereum was the first Ico yeah uh I think that's true

um yeah they're they're yeah so ethereum the first ever it may have been very smaller I suppose I don't know but it's the first one that gets referred to anyway yes yeah I think there was some on mastercoin but it was the first big one uh it was the first Ico of like a public blockchain that was a very big deal and this Ico was done in 2014 ethereum raised something like 17 million dollars 25 million dollars right it Ico at Inception it was born into sin as a Bitcoin Maximus exactly the pre-mine 70 pre-mine uh so ethereum raised an Ico very successful uh immediately had a positive return on investment as soon as the blockchain was up and running uh and then later in 2015 there was this Ico called auger auger was a prediction Market it was the first

Ico for an erc20 token on top of ethereum this was a project spun up by Joey Krug who's now at Pantera I remember being very excited about auger uh sadly sauger came it arrived it was built no one really adopted it but it was a very legitimate project that raised a bunch of money and captured the attention of a bunch of possibilities and imaginations of people that was the trigger so we're back at Phase One back at Phase number one of oh you can mint tokens and sell them for money in order to build something and that was the Ico trigger that was the the trigger that led to the 2017 Ico Mania and this is the first time I think we started calling these things tokens

more than cryptocurrencies yes that's right the 2013 sort of era was we called all of these things still cryptocurrencies uh but in uh you know the 20 the Ico Mania that you know 2014 2015 we started calling the things at least on top of ethereum not cryptocurrencies but tokens and Agar was the first I I suppose Ico for a token and as you could imagine people realize oh I can solicit uh for investment they probably weren't using these words because this is uh words that'll trigger nation state laws but like I can advertise this project that I'm going to build and then sell a token in and then promise that I'm going to build that

thing and then maybe I will maybe I won't I think you could imagine how this would trigger a bunch of just you know grifters and short-termers who don't really care about the project that they purport to want to build but you know millions of dollars started to flow into these icos and this started to snowball this started to become a medic it's like oh that token just raised a hundred million dollars and all they had to do was make a website and a web page like I guess I will do that and then we had a Cambrian explosion of icos this is where this is the Paradigm I was born under Ryan I don't know if you you came in a little bit yeah a little bit earlier yeah so we so we had the trigger which is ethereum the Cambrian explosion of these icos and then you're starting to

point to like the corruption which is everybody's doing an Ico then and I remember those days David in 2017 all you needed was a white paper yes that was the joke you said a website and like yeah that's true to for the minting function but like the business plan was just this esoteric white paper right and in fact like that was um I don't know the the main question people ask is like can I read your white paper right right and but these icos were um doing quite well oh yeah in terms of like the amount that they were raising but also the values of these tokens post token launch so no products hadn't necessarily been launched but tokens were definitely launched and they were also pumping in price yeah that's exactly right uh people would uh like

raise money for an Ico they would release the token to the blockchain on the blockchain on ethereum this is also where binance got started because there was a sensational desire to trade these tokens because we people wanted to speculate it's like is this token going to move faster than this token what's that tokens roadmap which token has a catalyst uh and while like there was perhaps some meager amount of like fundamental development Behind These tokens it was mainly about this narrative game of who's got the best story who which team can tell the best story about their token why will this token accrue value this is when we started talking about MV equals PQ if you guys if you guys remember that equation way back when or the concept of token velocity and token syncs and all

of this stuff but it was really a storytelling exercise it was like all these icos are just trying to tell a better story than all the other icos so is that where the the corruption starts to slip in when did we first get signs that uh this whole Ico Market was going to go south because there were some legitimate icos that were actually building a product and trying to ship it even those were like massively stupid valuations but like I would say 99 of all these icos collapse into nothing no ship product like nothing good even you know came of it and the vast majority of these were actually I don't know if we'd call them scams uh certainly some of them were scams but many of them just really had um no merit raising the kinds of funds

that they did or they would sort of exit scam slowly over time by like not shipping anything like massive overvaluation when did we get the first signs that this corruption was slipping into the Ico Market yeah towards the end of 2017 and I'll pull out this example there's a number of like very bad icos that I can I can uh pull back from memory they all start to blur together my first job in crypto was an Ico advisory company and let me tell you Ryan some of the icos I had to work on for it was egregious that the fact that people even thought that these were a good idea um but I'll draw attention to this one Ico which was done as a farce and this was called an Ico called useless ethereum token it was labeled as the world's first 100 honest ethereum Ico

And the tagline is you're going to give some random person money on the internet and they're going to take it and buy stuff with it probably Electronics let's be honest maybe even a big screen TV seriously don't buy these tokens so this is uh UE token.com I'm so happy that this website is still up and running but this was basically a website saying hi I'm doing an Ico my token that I'm building is called useless ethereum token I'm not going to do anything with it these are the sale terms I'm going to take your money and I'm going to buy stuff for me and also don't buy this token because I'm not going to do anything with it I love this FAQ wait is this a joke is it a scam neither this is real and it's 100 transparent you're literally giving your money to someone

on the internet and getting completely useless tokens in return obvious satire but somehow I've gotta say probably this token pumped is that the story here yeah so how much money do you think this token raised uh at the time so 2017 I bet it did a 10 million dollar raise it did about a million dollar raise this was the last snapshot I could get and then I had to look in the chain to actually get some numbers I think it did something like six hundred thousand dollars it raised six hundred thousand dollars which is for nothing at this point 600 000 is actually a tiny tiny raise in this time in this day of time like yeah the telegram raised a billion dollar Ico the time the ton token telegram the app that we all know

and use uh a billion dollars like there were billion dollar like icos like left and right towards the end of this thing the crazy thing is Ryan the useless ethereum token raised six hundred thousand dollars when the token went to trade it pumped it went up investors in the useless ethereum token made money because the token went to a secondary market and people bought it on the secondary Market this isn't Eastern yes yes uh and so this is in August of 2017 teen and so we still had a good number of like four months left in this bull market where ether went from 600 to 1400 dollars this is why people would do this people would issue a token and the token would go up and so people would keep on

issuing tokens because every time people would issue tokens the price would go up it was free money if money was flying left and right I think probably everyone listening can imagine this this didn't end well in fact most of you know kind of your history of 2017 that it didn't end well and uh this is what you're calling corruption I can't help but but think that this is this is corruption in some cases in other cases it's just bubble Behavior I might call this corruption in bubble like corruption and exuberance or something like this like the maker behind that token literally it was satire right right it's like I'm taking thank you for your donation I'm giving you buying it I'm buying a TV yeah I don't necessarily I wouldn't label that as like corruption right he's just like

if you want to give me money go ahead here's my donation address and yet it's still it's still pumped so corruption and bubble behavior is really what happens here but what like then what happened next I guess uh with with the 2017 Market it was the collapse 2018 was just like 2022 it was the crypto markets peaked in December of 2017. it was down for 12 months in a row to when we bottomed in like December of 2018 team so the collapse happened people got overextended icos got extremely fraudulent extremely scammy I literally Ryan worked on a token this was this is when I started to get disillusioned by crypto it was called pet Community Pet data on the

blockchain you would wear it like you know like a Fitbit Fitbit but a collar for your dog and it would register data of your about your dog's health and it would put it on the blockchain I you not I had to work on that project wow um move to earn for pets sure data yeah I somehow feel like that could have been successful with different framing in 2021 to 22 as well I don't know man there was uh there was fast pass so autonomous cars could use Fastpass to pay other autonomous cars to have them move out of the way so the autonomous car could drive through uh and you know fast pass like Disneyland spot token spot was uh you can sell you your garage

initially for like parking spaces but then the idea was that spot token would be just like the land it would just be land and people loved this story it was a good story do you know what's funny about this era it's like so there's all these stupid crazy icos but then there was also like a big exuberant market around layer uh one alternative so ethereum Alternatives right so that's when it started it's basically like yeah if ethereum can launch all these tokens well then why don't we launch another ethereum that can launch a bunch of other tokens right right and so I remember a few like it was Neo which was the China of ethereum China or yes ethereum of China yeah uh there was uh do you remember a dragon chain yes I remember Dragon chain Dragon chain was like um dis like somehow there was this

super nebulous never confirmed connection to like Disney maybe it was some like former Disney there's a wink wink connection yeah yeah and it was like people would announce their announced a partnership with Amazon yeah we have a partnership with Amazon what were they doing they were using AWS to host their website and they used an announcement that we're partnering with Amazon to facilitate our Ico it's where the amise go guy who's like he he took a skateboard and he took a picture of himself with a skateboard in front of like Google's office yeah or something and then like tweeted this out partnership with Google yeah it was like partnership with Google and like token it was so stupid yeah everything but it worked and that's why it happened

it's because yeah the story was told and the market accepted the story at the time okay all right so this was all caused because of minting the power to Mint unleashes potential and also exuberant corruption bubble behavior and then eventual bus sort of the same thing that we saw in the 2013 phase I guess we saw a repeat in the 2017. are you here to tell us that 2020 the 2021 phase or whatever year this kind of starts 2020 I guess to 2021. it's the exact same I think you know the answer first before we get to 2020 to 2021 uh the uh 2017 and the icos was the uh triggering of the ire of the SEC this is

when enter SEC enter player SEC came around um Jay Clayton uh former era agency chairman of the SEC told a senate in a hearing in February of 2018 I think every Ico I've ever seen is a security because Ryan of course it was it was a solicit solicitation of investment uh it was an investment contract it was literally a smart contract that was an investment contract for tokens so no the SEC comes in and this is when the nation state going back to the original like State opening statements of this podcast nation states the powers that be don't want the many to have the ability to Mint new assets to Mint new money because that is their power that is how

they can't maintain control that's what they regulate and that being out outside of the regulatory apparatus is like threatening to them that is uh that is kind of the nation-states or evil sort of take but I think if you were a regulator um you would say okay but I'm we're just but you guys just said how fraudulent they were yeah exactly so like what do you want us people are asking us the citizens of our country are asking us the governors of our country by means of um Congress and the president that you guys elected in your democracies asking us to protect our citizens and this is our freaking job like this so you're scamming retail if you weren't scamming retail with these um Mania pumps then we wouldn't have to step in we don't want

to control you we're just trying to like uh do our jobs and protect our citizenry right um I think that would be their take on this I think the wrong take I think that's a hundred percent Fair take um that is their jobs uh and and I don't really have any of the other Counterpoint other than to also say that controlling the issuance of assets and money is another way that may like the powers that be maintained control Ryan I think it's time to get into D5 summer and nft Mania 2020 to 2021 but first we have to talk about uniswap where we talk about all of these tokens that trade and also the rest of the bank list sponsors that make the show possible uniswap is the largest on-chain Marketplace for self-custody digital assets uniswap is

of course a decentralized exchange but you know this because you've been listening to bankless but did you know that the uniswap web app has a shiny new Fiat on-ramp now you could go directly from Fiat in your bank to tokens in defy inside of uniswap not only that but polygon arbitrum and optimism layer twos are supported right out of the game but that's just D5 uniswap is also an nft aggregator letting you find more listings for the best prices across the nft world with uniswap you can sweep floors on multiple nfts and uniswap's Universal router will optimize your gas fees for you uniswap is making it as easy as possible to go from bank account to bankless assets across ethereum and we couldn't be more thankful for having

them as a sponsor so go to app.uniswap.org today to buy sell or swap tokens and nfts arbitrim1 is pioneering the world of secure ethereum scalability and is continuing to accelerate the web 3 landscape hundreds of projects have already deployed on arbitrum 1 producing flourishing defy and nft ecosystems with a recent addition of arbitrum Nova gaming and social dapps like Reddit are also now calling Arboretum home both arbitrim1 and Nova leverage the security and decentralization of ethereum and provide a builder experience that's intuitive familiar and fully evm compatible on arbitrum both Builders and users will experience faster transaction

speeds with significantly lower gas fees with the arboretum's recent migration to arborstone Nitro it's also now 10 times faster than before visit arboretum.io where you can join the community dive into the developer docs Bridge your assets and start building your first app with arbitrum experience web 3 development the way it was meant to be secure fast cheap and friction free all right guys we're back let's pick up the story here so uh we talked about some of the themes of all of these previous markets you wanted to show us this David what is what are we looking at yeah this I saw this from the comment uh from the uh YouTube chat during the commercial break uh V chain signs a working agreement with McDonald's uh V chain was a supply chain uh blockchain back in 2017. I remember V chains yeah

it had it had a multi-billion dollar market cap tens of billions of dollars uh McDonald's had to tweet out McDonald's has not entered into a cooperation or partnership with v chain Foundation the company is only using our Burgers to feed their staff oh my God that is so that is corruption that's corruption that's corruption at play all right so what can we glean from this what what sort of pattern can we uh can we see echoed across all of these previous bull markets well should we Echo these patterns into 2020 and 2021 because we still have one more we still have one more bull market to go brother yeah let's see that okay so we're in 2020 the start of 2020. there are now 3

000 cryptocurrencies uh again we started we started the start of 2017 with 789 we ended 2018 with over 2 000 cryptocurrencies we are entering this next phase of the bull market in 2020 the next phase of crypto in 2020 with about 3 000 cryptocurrencies by the end of 2020 which Ryan does not include 2021 or 2022 by the end of 2020 the year of D5 summer there were over 5 500 cryptocurrencies listed on coin market cap and that's the number of cryptocurrencies which is one dimension here another dimension is um the size the total market cap of of crypto right and so I think we were showing like you know something

proximate in 20 2013. we got to like 10 billion maybe 15 billion something like that and then the next cycle in 2017 how like how high did we get we got in the um hundreds of billions didn't we yeah let me let me pull up uh coin market cap and and I will answer that question I don't think we got quite to uh we didn't get to a trillion I know in the 2017 uh Market but um yeah show us some coin market cap where we got uh let's see how do I do this um this might take some jumping around oh just go to coin market cap and like look at total uh crypto market cap oh yeah

you're right you're right I don't need to do that yeah okay yeah she's the master chart yeah yeah yeah okay so in oh God log scale so in 2013 we peaked out at 13 billion dollars in 2017 we peaked out at what was what is that 500 billion dollars 570 billion dollars oh we almost got up to one trillion we almost got up to 1 trillion what a map like what a that's just an order of magnitude difference in terms of size and then uh and then we down we fell down to almost below 125 billion 125 billion at the bottom of 2018 and then we got up to three-ish 3 trillion in 20 this last

bull market this last bull market what's interesting it's not nearly like the difference you know 700 billion to 3 trillion is much different than like 12 billion to uh 700 right billion right this I mean honestly this I wasn't in this cycle you weren't in this cycle but this first cycle of course the first cycle of crypto is the best cycle to be in it's where all the most epic run up ever ever yeah the most insane thing yeah where it takes and now it's like no money to move the price the difference is like uh we created tokens in this market cycle I guess yeah the big minting unlock here it's easier to make value with tokens than it is with layer one blockchains I think that's a great take right well like and then so going into 2020 we we had already had this

invention of tokens but um yeah take us to 2020. what were we seeing then yeah so the trigger for 2020 D5 summer was compound governance compound released the idea of a governance token and all of a sudden tokens go from like to get that token out of my face I don't want to see another token because the last time someone showed me a token it was an Ico that went to zero so like the appetite for tokens between 2018 and 2020 was absolutely zero compound it releases compound governance and yield farming invented yield farming and all of a sudden people are like I can yield farm with tokens I can get yield on my tokens I love tokens tokens are great and all of a sudden tokens become in

Vogue again and so this is a one of the big points I want to drive home tokens bull markets are not only we create a reason to Mint new Assets in 2013 it was we can make new blockchains in 2017 we can Mint new erc20 tokens in 2020 it was we can yield Farm because these tokens have value now with governance but also it creates the appetite to receive these tokens to buy these tokens in Bear markets everyone flees up the market cap stack to bitcoin and then later to bitcoin and ether in Bull markets people flee down the market cap stack because they want the low cap tokens because tokens are in and so the trigger the the trigger for 2020 is compound governance and liquidity mining

yams if you remember yams also a big trigger of just this Cambrian explosion of yield farming and so appetite for more for buying tokens and issuing more tokens comes back and so what do we do we mint a bunch of tokens once again and this was defy summer the most lucrative part of the 2020 to 2022 bull market by the way was 2020 defy summer it got scammy and bad in 20 21 when the corruption set in well there's two there's two Dimensions to this because so I agree with everything you're saying but let's also not forget about nfts as a token right and we didn't see that massive you know whatever that was 70x increase in

um fungible tokens but we did see that kind of an increase in nfts yeah and it's we didn't just invent nfts in the 2020 to 2021 um Bull Run we had those previously but like they were barely used really I consider sort of 2020 to be sort of the the birth of the first piece real nft bull market and that did see like 70x types of increases and so we got this entirely new asset class it's almost like in 2013 we figured out we had the ability to Mint cryptocurrencies other blockchains in 2015 to 2017 we figured out that we could mint tokens and in 2020 yeah we

figured out we could add yield uh you know to our tokens and that maybe some of the D5 tokens weren't as valuable but we also figured out this nft thing which is a whole new minting experience and that had the most massive bull market um that I think we saw it's just like from zero to all the way to kind of you know how many uh tens of billions of dollars the nft market landed um but just grew from nothing yeah and it really triggered parts of the brain that other like erc20 tokens just hadn't erc20 tokens highly Financial in nature right functional tokens there's no like character there's no culture in those erc20 tokens are unique there's art

there's things to look at there's pixels and so it triggered the appetite for so many people for so many people it's like I didn't really care about crypto but nfts are interesting to me and it lights up a new part of the brain it triggered it the appetite for buying these things and especially during the early days when like a crypto punk in 2018 was one ether like the appetite is also can do like conduced by the fact that these things are always going up in price and so like they no one has like a anti-nft bias here because every time they buy an nft they make money because it goes up in price which furthers people's appetite to buy more nfts so like the first half of the bull market very strong appetite for nfts than things like a shitty

Fiverr project comes out shitty nfts come out the minting process sucks gas fees happen and all of a sudden people's appetite for nfts lessons and then of course the corruption just goes from a little bit to a lot turns up to a t uh we have scams we got rug pulls we got all this stuff and all of a sudden the market turns over once again because there's a flurry of activity going around and that triggers the grifters the grifters come they can smell all the money and then they come in and do their grifting stuff they suck out all the money from the market and then they leave us with like a bear market and a collapse to deal with yeah the grifters are definitely um responsible in that play and yet so are we as the exuberant people who are buying their bags grifters can't grip

you if you don't buy their their their asset their product but what we saw was exactly what you're saying is the trigger the explosion and all these minting all of these tokens all of these assets the corruption and the exuberant setting in and then the collapse and of course here we are at the beginning of 2023 post collapse this is like 2018. this is like I guess 20 2014 again and this is all happening so what is the trend at play here David the trend is uh something we've talked about on Bank list before I'm showing my screen of the euthanasia roller coaster the frequent meme that you should definitely understand in crypto uh the youth at Asia roller coaster is a concept for a roller coaster designed to kill its passengers so it's one gigantic like

very steep incline to a very very high point and then then the roller coaster starts to fall down and gain acceleration and then it does a series of loop-de-loops seven loop-de-loops and the loop to Loops are getting Tighter and Tighter and Tighter and Tighter as they go along and the idea is that I'll read from this caption here the creator of this roller coaster wanted to create a way in that these roller coaster kills its passengers with elegance and Euphoria it is a right experiment by the way it's a thought experience this does not exist but it but it will kill you it will kill you yes because because you're sustaining the forces for too long so it's a ride to the death the seven Loops are inversions put the human body under such stress that it causes the brain to be starved of oxygen and the Heart simply

cannot push blood against the enormous g-forces it's designed to kill you but it's at least a fun death uh kind of like a bull market right like the longer you stay in the bull market like the more loop-de-loops you're going around but if you don't sell by the end of the bull market you're gonna get crushed right that's the lesson I took out of the the Chris bernitski episode that we just did so this is the pattern of every single bull market it's a euthanasia roller coaster each of these Loops are like Tighter and um and kind of like I guess I guess worse and sort of repeating repeating fractals of the first um and that's that's why we see this massive quality difference between the first versions of the minting for that token and like the the final versions

The minting of the token you start with something that's so CR like very creative something like a crypto punks for example and you end with some like Kevin do you remember do you wear that NFD the Pixelmon and Pixelmon yeah this is like people were minting nfts from Fiverr contracts like where they would just be like you know design me these uh nfts very quick quick and dirty I mean look at even like um some of the Donald Trump nfts obviously it's like your stock images right his body is stolen stock images very very low effort uh token minting that is is clearly not going to sustain into the long run

that's that's how these markets always end um all right so what is the takeaway around this is David it's the takeaway here that like um okay minting is bad power and this is why nation states were right all along and Empire right all along yeah that's exactly that's exactly what I believe uh this is now the statist podcast well I mean some people will say that they'll be like all right you're saying how great it is to give the people the power to Mint but I'm not seeing greatness across these three uh Cycles is that just the cynical take is there some greatness hidden what are like the the good things about it and then like what are what are the bad things about it yeah so the good things it's good and bad and like is technology good no

technology is evil humans are I oh no excuse me technology is neutral humans are either good or evil based off of their behaviors and what they do and so techno neutral technology can get corrupted or it can what's the opposite of corruption uh it can get used in very healthy and productive and proactive and socially like productive ways it depends on who's using it and so there's this like resistance to nation-state laws resistance to the SEC we don't want ofac to come and censor our blockchain and so that's great I 100 believe in that we as humans now have the power to Mint new money that is a power that we

have in our back pocket we can Mint new tokens we can make new blockchains we can make new nfts this PR this power which was previously only held by the elite is now democratized and that power is something I fundamentally believe in it's good for humans to have the maximum amount of tools at their disposal because the free market will eventually sort out okay that money that that human made is bad but this money that these humans made are good and so the market will start to adapt and answer to that I Believe In The Free markets ultimately after much chaos and settling of dust we will settle on a brand new money that's uh brand new and like not Fiat money and much better because it's Community adopted bottom-up adopted this is why

I'm a fan of ether um but at the same time with great power comes the great responsibility we now have the power to make new money and grifters also now have the power to make new money and that is something to watch out for and so we have this resistance to nation state Authority but we have to remember and this is why we did those Securities episodes at the beginning of this year to explore like Securities laws date back to Ryan to like 1200 back way way way long ago like very early and then they also adapted and and grew and grew and grew because humans realized that if everyone has this power to Mint assets to make a company make an LLC whatever some people will corrupt it and so we came together

as a society and bestowed the power of self-regulation unto a certain Authority the SEC is that Authority for us perhaps you don't believe that the SEC is no longer a good faith actor and they've also become corrupted but the idea is that the need to self-regulate is bestowed upon us and so this is my call to action for the crypto industry we now have the power to make new money with great power comes great responsibility if not the SEC then who then us what are we going to do about this new power that I believe is fundamentally good but grifters can sneak in and corrupt it how

do we answer to this problem how do we solve this problem of grifters coming in and corrupting every single bull market that ever will ever happen in crypto because if we want this if we want the super cycle to ever happen Ryan it's going to be because we figured out how to self-regulate and keep grifters out and allowed for sustainable and real fundamentally fundamentals based asset minting to come about so that's my call to action that's why I wanted to do this show if we want to resist like three letter agency control over our industry we need to self-regulate ourselves we need to do something and I don't know what that is but that is my call to action for the bankless nation well I I think that's a good take and I think doing that will obviously

alleviate some of the pain and hopefully listener once you understand how these Market Cycles work uh you'll understand the next one because um it look guys it's going to play at the exact same the exact same way all right so there's going to be some trigger in the future but maybe it starts in 2023 uh 2024. that trigger will be related to the minting and the creation of some sort of token or maybe it's a new way that we we are minting things or it's a new distribution mechanism or it's a new way we're adding value to our existing tokens and narratives will form from this there'll be something there there'll be the seed of something that is incredibly useful there very real

very Innovative very awesome that'll be the trigger guys we don't actually know what it is and in advance it was impossible to call all of these but I think you you can recognize it in the early stages uh and then what you'll have is the Cambrian explosion of this experiment was successful and it gets repeated repeated repeated repeated you know the first you know 10 to 20 of those experience will probably be pretty wholesome pretty healthy pretty useful pretty fun we'll go round and round on the roller coaster it'll get worse and worse and worse and loose will get tighter and will start to like lose our oxygen and uh it'll play out and we'll eventually it'll die and reset you will need to get off the roller coaster at some point yeah so you don't die and like I think that's um look how can we

prevent this you can be educated you can understand how this works you can protect yourself at some level though David I I do think that um yes it would be nice if we all held hands and we're like we're going to self-regulate and here's exactly how we should do it I've not seen that play out in any of the Cycles I've been part of sadly kind of bearish on that I think there have been some efforts towards that and we've made progress every cycle but I don't think it's going to fully play out this cycle either however what I will say is the healthy part of this these Cycles is how quickly they happen and all of the veterans who've been on this roller coaster before like they they kind of know like we can we can sort of spot it and um I do think that the grifters will

come but what happens at the end of these Cycles is all of that excess and scamminess and fraud and margin and all of the corruption actually like gets burnt off like a healthy way you know we've we've used um the analogy of sort of the woods and if it's sort of in older you know Woods lots of foliage Falls Dry twigs and leaves that sort of thing under brush yeah yeah it's although all the underbrush Falls it's actually a healthy process for the forest to go through some sort of fire Rejuvenation period to burn that off so that new new plants New Life new trees can actually grow in its place and we have that happen in crypto that I think is the regulatory

um effect sure this is in some ways David um yes but like the if we don't do it ourselves at the social air which like I don't know if we can I don't know if all the bankless podcasts in the world can hold the scammers and fraudsters at Bay here right I don't know if the most educated crypto Community can because a whole nother set of the population is going to come in and should be like what you Boomers you don't know anything this you dumb East Maxis yeah this time it's different and here's why they'll go fall for it and they'll have to learn the lesson the hard way but think through the process of exuberant market failure collapse Total Wipeout no bailout on the other side that is actually how we're leveling up because

every single cycle we get 10x 20x 30X an order of magnitude more useful in terms of the applications value you're creating the world than than the previous cycle everything gets better and values increase as well so you know the new ceiling that the old ceiling becomes the floor for the future cycle that's right so yeah anything else you want to say to end this thing that concludes this episode I believe classroom time with bankless hope you guys enjoyed it of course uh the power to Mint money that has been the episode um I'll end with this our typical risks and disclaimers gotta warn you that of course this crypto roller coaster is pretty risky it will kill you it could kill you you could lose what you put in

as our way of saying it but we are headed west this is a frontier it's not for everyone but we're glad you're with us on the bankless journey thanks a lot