ROLLUP: 3rd Week of November

🚀 SUBSCRIBE TO NEWSLETTER: http://bankless.substack.com/ ✊ STARTING GUIDE BANKLESS: https://bit.ly/37Q17uI ❤️ JOIN PRIVATE DISCORD: https://bit.ly/2UVI10O 🎙️ SUBSCRIBE TO PODCAST: http://podcast.banklesshq.com/ 👕 BUY BANKLESS TEE: https://merch.banklesshq.com/ ----- GO BANKLESS WITH THESE SPONSOR TOOLS: ⭐️LEDGER - BEST HARDWARE WALLET TO SECURE YOUR CRYPTO https://bankless.cc/ledger-20 🚀ARGENT - GET THE MOST SIMPLE AND SECURE DEFI WALLET https://bankless.cc/argent 💳 MONOLITH - GET THE HOLY GRAIL OF BANKLESS VISA CARDS https://bankless.cc/monolith 🤖YEARN - YIELD-SEEKING MONEY ROBOT THAT FARMS DEFI FOR YOU http://bankless.cc/yearn ----- ROLLUP: 3rd Week of November! (MARKET) What’s the Market saying? BTC Price https://messari.io/chart BTC on Ethereum https://btconethereum.com/ - 151,925 BTC on Ethereum, up ~1,500 BTC Bitcoin as a system as reached ATH value (link https://twitter.com/fintechfrank/status/1328763873235771393?s=20) BTC unique addresses spiking upwards (link https://twitter.com/glassnode/status/1329045245212971010?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1329045245212971010%7Ctwgr%5E&ref_url=https%3A%2F%2Fdecrypt.co%2F48642%2Fnearly-25000-bitcoin-address-were-created-in-just-one-hour) 9 BTC metrics that are at ATHs (link https://twitter.com/nic__carter/status/1328696677885153282?s=20) ETH Price https://messari.io/chart Almost 60k ETH in the deposit contract (link https://launchpad.ethereum.org/) TVL in DeFi https://defipulse.com/ Ethereum active addresses continually marching to ATHs (link https://twitter.com/intotheblock/status/1329406753864355842?s=20) ETH 1 cycle behind BTC (link https://twitter.com/intocryptoverse/status/1328586208096686087?s=20) ETH always does well in December, 5 out of 5 times (image https://imgur.com/nz4PPoU) Same BTC, ETH price as December 2017 (tweet https://twitter.com/cyounessi1/status/1328728346600075264?s=20) DPI Price https://www.coingecko.com/en/coins/defipulse-index - $81 to $104 1 Billion DAI (DAI Stats https://daistats.com/) Grayscale $10.8B AUM (tweet https://twitter.com/Grayscale/status/1329178250288001024?s=20) (RELEASES) What got released? RocketPool Medalla Beta testnet concludes https://medium.com/rocket-pool/rocket-pool-medalla-beta-concludes-f97834d43ebd Moving onto a new testnet that tests a RocketPool network with integrated tokenomics Aave V2 on the Kovan testnet (link https://medium.com/aave/aave-v2-is-available-on-public-testnet-dc13e3dca2b) YFI + BAL as collateral in Maker (tweet https://twitter.com/MakerDAO/status/1326998585230065664?s=20) YAM releases Umbrella product (link https://twitter.com/UmbrellaByYam/status/1329183514458288128?s=20) Etherisc + Chainlink offers crop insurance on Kenyans (link https://blog.etherisc.com/etherisc-teams-up-with-chainlink-to-deliver-crop-insurance-in-kenya-137e433c29dc?gi=60637f1bd2bd) (NEWS) What’s in the news? Rich man invests in Bitcoin (link https://coinfomania.com/mexican-ricardo-salinas-confirms-he-has-bitcoins/) Coinbase crashing (link https://www.coindesk.com/coinbase-goes-down-as-bitcoin-nears-17k) Paypal gets to 85% of Binance US volume in first month (link https://cryptobriefing.com/paypal-reaches-85-binance-us-volume-first-month/) Netherlands exchanges must ask their customers to prove ownership their own their withdrawal addresses (tweet https://twitter.com/aaronvanw/status/1328661707313516545?s=21) Binance Blocking U. S. customers, giving them 90 days to withdraw assets (link https://www.theblockcrypto.com/post/84020/binance-blocking-us-users-exchange-email-2) Binance suing two journalists in anti-defamation suit (link https://twitter.com/TheBlock__/status/1329352841702600704?s=20) Jay Clayton stepping down as SEC Chairman (link https://cryptobriefing.com/crypto-community-rejoices-sec-chairman-steps-down/) Masie Williams tweets about Bitcoin (link https://twitter.com/Maisie_Williams/status/1328428879334297600?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1328428879334297600%7Ctwgr%5E&ref_url=https%3A%2F%2Fdecrypt.co%2F48454%2Fgame-of-thrones-maisie-williams-asks-twitter-about-bitcoin) Pay attention to signals like this, Dec 2017, Lady Gaga had Cryptocurrency painted fingernails That was the top (TAKES) What’s on your mind? David Bitcoiner’s got triggered really fast about the Call to Action Bankless put out on wednesday Tweet https://twitter.com/notgrubles/status/1329191850050269190?s=20, Tweet https://twitter.com/Bitcoin_Woods/status/1329194663807504385?s=20 It’s because Bitcoin progress primarily occurs in the social layer, not the technological layer. They could look at Ethereum technological progress at scoff at it, because while Ethereum was building, they were marketing Now Ethereum is pretty close to being done with building, and people like me and Ryan are now rallying the troops to saw “hey, lets market the fuck out of this thing. Big threat. Ryan What’s the best way to get exposure to DeFi? (link https://twitter.com/RyanSAdams/status/1329048636009967618?s=20) Is ETH staking gonna make it? 105k ETH in the deposit contract Over 20% ------ Don't stop at the video! Subscribe to the Bankless newsletter program http://bankless.substack.com/ Visit the official Bankless website for resources http://banklesshq.com/ Follow Bankless on Twitter https://twitter.com/BanklessHQ Follow Ryan on Twitter https://twitter.com/ryansadams Follow David on Twitter https://twitter.com/TrustlessState Follow DeFi Dad on Twitter https://twitter.com/DeFi_Dad ----- Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research. Disclosure. From time-to-time we may add links in this channel to products we use. We may receive commission if you make a purchase through one of these links. We'll always disclose when this is the case.

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:07David Hoffman?

  If you are looking for the front page of DeFi, look no further than zerion.io. Zerion is your home base for managing your DeFi portfolios. Zerion offers a central place for you to engage with all of the DeFi protocols and assets that you engage with on a daily basis, but all in one central spot. Here you can see I've loaded up a wallet and Zerion is giving me the portfolio performance of all the assets in this wallet over time, as well as a breakdown of all the assets that I own, as well as all of my transaction history that I've ever done in an easy to view fashion. Zerion also lets you invest right into DeFi's best yielding financial opportunities right from their homepage.

• 0:49David Hoffman?

  Zerion also makes it super easy to access interest in DeFi using applications like Compound and Aave in the background. And you can also exchange your assets using the Zerion app, using an exchange aggregator in the background to make sure that you always get the best rates. You can even use the Zerion mobile wallet to add your MetaMask or Argent or another Ethereum address right into your mobile wallet so you can see your portfolio and engage in DeFi on the go. Here I just loaded up my Argent wallet and now I'm going to load up my MetaMask as well. And Zerion will do the same thing. It will add all of my assets and wallets together, all in one space, and give me a portfolio summary of what's going on. Adding wallets is trivially easy. If you already have a MetaMask, you can get it right into the Zerion app

• 1:33David Hoffman?

  and it can sync with your desktop app as well. And the best part is you can also buy Ether right into the app itself. Use the Invest tab to look at all the things that you have invested in as well as other opportunities. And coming soon to the Zerion app is the ability to buy and sell your assets straight from your mobile device as well. So download the app. It works on iOS and Android. Go to zerion.io, plug in your wallets and get a historical report of your portfolio over time, as well as a comprehensive breakdown of all the assets that you own and how much yield they're generating for you. We're also brought to you by Monolith. Monolith is your cool new DeFi account, your DeFi savings account, your DeFi checking account.

• 2:15David Hoffman?

  Except the cool thing about the Monolith DeFi account is that it gets software updates, right? You actually get to increase the usefulness of this over time. So here are some of the features. Monolith is a smart contract wallet with a lot of the features that you would expect if you've come to know DeFi and what it is. You can, you can add money to it. You can put that money to work in Compound and accessing yield. But you can, and you can also swap through Uniswap. What was cool with Monolith is that they will send you a very sexy Monolith Visa card that connects to your smart Monolith smart contract wallet on Ethereum. So it's a really awesome tool to live a bankless life with a savings account that gets software updates. So this is something that you're never going to find out in the real world,

• 2:59David Hoffman?

  but you can still do real world things with, you know, real money and like buy your groceries. So that's just fantastic. Coming soon to Monolith, actually already here to Monolith is now you can buy, die and get it sent to your wallet directly, right? So it's also being an on-ramp. So you don't have to go through your centralized exchange like Coinbase or Gemini or wherever. You can just go straight from your bank account, right into your Monolith checking account, smart contract wallet. So check them out at monolith.xyz.

• 3:28Ryan Sean Adams?

  Bankless Nation, welcome to another weekly roll up episode. This is the third week of November. So here's what we do on these episodes. We roll up the week for you. It is Friday morning.

• 3:40David Hoffman?

  Rolling them up.

• 3:41Ryan Sean Adams?

  We're rolling it up. David always says that. Fantastic way to start your Friday morning. Grab a cup of coffee, catch up on the week that was crypto. We take five minutes, five topics. We try to get through this in 25 minutes. First, we talk about the market. That's going to be thick this week. Releases, news, some hot takes, and then we end with what we are excited about. This gets released every Friday morning on both YouTube and our podcast stream. David, you ready? This is the third week of November, year of our Lord 2020. Let's get to the roll ups.

• 4:13David Hoffman?

  Let's rolling them up.

• 4:15Ryan Sean Adams?

  All right, market time. Okay, Bitcoin, that's had a good week in the market.

• 4:20David Hoffman?

  Really good week.

• 4:20Ryan Sean Adams?

  I'm going to share, I'm going to share some price data. I think you're going to be looking at it in just a second. We are over 18,000, my friend. What does this mean?

• 4:30David Hoffman?

  Yeah, and specifically over 18,000, but also since there are new Bitcoins out into the market since the 2017 bull run, the combined market cap of Bitcoin is at an all time high already. So in one respect, we've already broken all time high.

• 4:45Ryan Sean Adams?

  And that actually is the metric, right? Market cap, it's not like price can vary because supply gets inflated, increase over time. So market cap is pretty reasonable. So Bitcoin's at all time high.

• 4:55David Hoffman?

  The total value of the Bitcoin network is at all time high. So congratulations to Bitcoin. It broke through the ceiling. It's there. And I think people are really bullish about how there seems to be clear skies ahead.

• 5:06Ryan Sean Adams?

  Good job Bitcoin. All right, let's talk about Bitcoin on Ethereum. Is that up or is that down?

• 5:12David Hoffman?

  It's up. It's always up. It's up by roughly 1,500 Bitcoins. We are at a combined almost 152,000 total Bitcoins on Ethereum.

• 5:22Ryan Sean Adams?

  All right. What are some other interesting things? So new addresses created. This is a tweet that Glassdun put out, said they have just observed the highest number of newly created Bitcoin addresses since January 2018. What accounts for this, David?

• 5:36David Hoffman?

  Yeah, part of it has to be new entrances into Bitcoin. That's when Bitcoin price goes up, it's largely a result of more people buying Bitcoin. And we now think because of the macroeconomic environment, that a lot of new people are buying Bitcoin. And this is how cycles start. And so seeing that a record new addresses is now holding Bitcoin is indicative of a lot of people coming into this market. So welcome newbies. Welcome to the train.

• 6:02Ryan Sean Adams?

  They're on the network. All right. This was an article from Nick Carter. Nine Bitcoin charts already have all time highs. So this wasn't only the market cap that we talked about just a few seconds ago. This is some other things. What were your takeaways from Nick's article? Besides, we're having him on the podcast next Tuesday for State of the Nation, but some takeaways here.

• 6:22David Hoffman?

  Yeah, yes, we're definitely going to peel back all of the layers with Nick directly on the State of the Nation. So stay tuned for that. But the gist of this is, is that you know, everything is correlated and everything is at all time highs, right? And it would be, it would be different if just price was at all time high and things weren't, things like active addresses weren't at all time high. I remember there was that fake out pump in 2019 where Bitcoin jumped to 14,000. And a lot of these metrics were not at all time highs, even though price was. Right now, everything is at all time highs. So that's just an intrinsic message to the fundamentals of the network.

• 6:59Ryan Sean Adams?

  Yeah, Nick, there's some interesting things that we'll get to on Tuesday about open options, interest in the CME being at all time highs, even Bitcoin priced in the Turkish lira is at an all time high, which is an interesting benchmark that he's going to tell us about a little more. Okay, let's get to ETH, ETH price. How's ETH hanging in there?

• 7:18David Hoffman?

  I mean, if we are measuring it against Bitcoin, it's been falling behind recently. It seems to be Bitcoin is going through this reflexive cycle of Bitcoin highs, make new Bitcoin highs and Ethereum. And when that happens, other assets tend to get a little shy. Bitcoin tends to suck the air out of the, out of the room. And so things kind of just wait and see for, for Bitcoin to calm down. The belief is that at the moment that Bitcoin takes a breath, takes a hesitation, the rest of the market will follow suit. And that's kind of where we think Ether is at the moment. It's at $475, being, being pretty flat. It did break its, its 2020 highs of $489, I believe, with the DeFi summer

• 7:59David Hoffman?

  highs. It crept all the way up to 495, I believe. But it's, it kind of, then there was that crash and now we're holding steady at the mid 470s.

• 8:09Ryan Sean Adams?

  Is that, was that a two year high above 490 or so?

• 8:13David Hoffman?

  Yes, that is correct. Yep.

• 8:15Ryan Sean Adams?

  All right. Let's go back to ETH in a second, but want to check out the DeFi pulse board. That is about the same for

• 8:23David Hoffman?

  No, we're up by 0.3 billion.

• 8:26Ryan Sean Adams?

  Ah, okay. 0.3 billion. We'll take it.

• 8:28David Hoffman?

  Yep.

• 8:29Ryan Sean Adams?

  That used to matter a lot more in total locked in DeFi, but now 0.3 billion here or there. Who's to say among friends? All right. This was an interesting chart as well. Active addresses on Ethereum are going through the roof, it seems like. What's your take here?

• 8:48David Hoffman?

  Yeah, same thing. Just that people are coming into the ecosystem. Active addresses on Ethereum are a little bit more difficult to discern just because there's so many more reasons to have an address on Ethereum. But nevertheless, like it's at an all time high. Like, we don't need to tell you, like, all time highs are all time highs.

• 9:03Ryan Sean Adams?

  Keep saying that. Okay. Into the crypto verse. So this is our friend Ben. He put it a great post on Bankless a while ago. But he actually compares Ether to Bitcoin in like 2015 and 2016. And I mean, this guy is one of my favorite folks in kind of TA. And it's, it's like, there's some TA folks that are just like, you know, Painting things on charts and no absolutely nothing. Yeah, drawing shapes. Ben takes a very

• 9:31David Hoffman?

  Sober.

• 9:31Ryan Sean Adams?

  Machine learning.

• 9:32David Hoffman?

  Yes.

• 9:33Ryan Sean Adams?

  Algorithmic, data-backed take on it and he looks at the long term. So what's he saying? And as he says, this, this is sort of extrapolating his models over to 2014. And he, he says that the next bubble, so this bull run that we think we have entered would put ETH price at $9,900. That's almost at that road to 10K amount. Do you buy this? What's your take?

• 10:01David Hoffman?

  Oh, yeah. The 10K meme is not a meme for just fake memery reasons. The 10K meme is a meme because it's real. Like ETH is going to 10K. We're all going to get it there.

• 10:12Ryan Sean Adams?

  It's interesting. He says the fair value in mid 2023, if you kind of look at his, his data model here, it's about $900. But ETH is going to be overvalued by 100% because both markets swing

• 10:26David Hoffman?

  They do.

• 10:26Ryan Sean Adams?

  In the other direction. So he, he thinks, this model predicts that it would be $900, $9,000. Excuse me, $900 by mid 2023. That is bullish, my friend.

• 10:40David Hoffman?

  That is, that is by definition bullish.

• 10:42Ryan Sean Adams?

  Right. I mean, like, I, I think his Bitcoin predictions have, have sort of panned out and, um, I don't know. It'll be interesting, but good job, Ben, on that. But this is a, another, I think, interesting data point from, from Cyrus. So for folks that aren't looking at the visual here, can you spell out what, what this tweet is about?

• 11:04David Hoffman?

  Yeah. So Bitcoin and Ether price, December 7th, 2017, back in the last cycle, Bitcoin was 17,000, Ether was 470,000. Now in November 17th, two days ago, the prices were exactly the same. Uh, and so we've just got three years later, we are full circle back to, back to being at the same price as we were three years ago. The difference is back in 2017, that was the peak of the bull market. And in 2020, it seems to be we are at just the base of the bull market. So foundations.

• 11:35Ryan Sean Adams?

  So what that means, David, is if you if you held Bitcoin from that date, like three years ago, basically, and you bought Ether, like, it would be the same. There's there's no difference between those two assets. So like, all of the gyration, up, down, up, down, in the ratio, everything we're talking about, Bitcoin gains, Ether wins, all the fighting, all of it was meaningless. Is that what you're telling me? Like, none of it mattered? Because we're back three years ago to where we started?

• 12:02David Hoffman?

  Yep, exactly. That's exactly right. Also, most importantly, December is a very hot month for Ether. And people, people will remind themselves that in after Bitcoin rushed up to 20,000-ish, it kind of fell down to 14. Wow, 14,000. Well, Ether ripped from like 470 all the way up to $1,400, right? Historically, Ether has always done extremely well in December, five out of five times. Its best months are all December, and it is November, excuse me, it is November 20th right now. So I am getting ready.

• 12:38Ryan Sean Adams?

  Let's see what Christmas 2020 brings for the price of Ether. Okay, last thing, because we're taking a lot of time on market, but a lot is happening in the market, to be fair.

• 12:45David Hoffman?

  Market week.

• 12:46Ryan Sean Adams?

  DeFi is going up as well. This is the DeFi Pulse Index that tracks the top 10 or so DeFi tokens. And how much did that appreciate this this week, David?

• 12:57David Hoffman?

  Yeah, it last week, a week ago, seven days ago, it was at $81. It is now at $104. It has, yeah, huge, huge bump. People thought DeFi was dead. Turns out DeFi was not dead.

• 13:09Ryan Sean Adams?

  And last week it outperformed Ether. Very interesting. All right, David, let's get to releases. So what got released last week? We're really excited about Rocket Pool, and they had a Medalla beta pilot, essentially a beta participation that just concluded there. Does that bode well for them coming to mainnet? I think this post here says, maybe a 2021 Q1 launch of Rocket Pool on staking on the ETH to mainnet. What would that mean?

• 13:40David Hoffman?

  Yeah, yeah. Rocket Pool just going through mainnet after mainnet. The Medalla Beta main testnet just concluded and they're going to roll out another testnet after this, which integrates the RPL token mechanics. That's the whole purpose of the next testnet. The reason why we wanted to just get this in the news is to let you guys know, like Rocket Pool progress is happening with Rocket Pool and I'm really excited about Rocket Pool because it is inherent to Ethereum and its decentralization. So, cool stuff is happening there behind the scenes.

• 14:05Ryan Sean Adams?

  But also, a lot of people don't have 32 ETH to stake, right? This allows them to do it if they have a lot less. Alright, let's talk about something else that's cool. So, both YFI, the token, and BAL, the balancer token, are now available as collateral in Maker Vaults. I'll give a quick take on this. I think this is awesome. Super bullish dude, because this is trustless capital assets on Ethereum. I am getting and was getting uncomfortable with all of the USDC inside collateral backing DAI. And this is a very attractive alternative

• 14:47Ryan Sean Adams?

  because these assets are all completely settled on Ethereum. There's nothing in some sort of traditional bank account. So, I'm super bullish that these assets are emerging and this collateral can be available to back something like DAI. What's your take?

• 15:01David Hoffman?

  Yeah, I think that's the exact right take. And I think the legacy of DeFi Summer 2020 was the emergence of native assets, native DeFi tokens on Ethereum that have value and therefore can themselves be collateral, right? And that's how we retain trustlessness and purity, if you will, in DAI.

• 15:19Ryan Sean Adams?

  Absolutely. And I read somewhere that I believe Maker, the Maker contract is now like the fourth or the fifth largest YFI holder. So, a whole bunch is getting put in there. It's like something like 4%, maybe more. Could be wrong in those numbers, but I think it's pretty close to that. Alright, let's talk about another release. This is the, do you remember YAM?

• 15:39David Hoffman?

  I remember YAM.

• 15:40Ryan Sean Adams?

  The first vegetable farm here. We had, they actually just released something. So, YAM is still alive and kicking. They released something called the umbrella protocol, which is actually trying to provide protection in DeFi assets. I say released, but they're kind of announcing a soon to be in like alpha, in production, alpha essentially. But what I find interesting about this is that YAM is actually building products. So they've become sort of this, it's a DAO and they've got, I think, something like three million in assets that have been contributed to their treasury, just because whenever YAM trades over a dollar,

• 16:24Ryan Sean Adams?

  a portion of like the proceeds from a rebase go into this treasury. And they're using that treasury to fund interesting DeFi projects.

• 16:34David Hoffman?

  Right, which will probably ultimately have a value capture mechanism to put money back into the treasury. I'm sure, I'm sure that that is involved with this.

• 16:42Ryan Sean Adams?

  It's very fascinating. It's almost like a new model for some kind of a DAO organization, but like different. So I guess they're shipping, they're still, they're still like pushing, pushing things out there. The last thing we should maybe cover is the EtherSync, Ether.

• 16:59David Hoffman?

  Risk.

• 17:00Ryan Sean Adams?

  Ether IS.

• 17:01David Hoffman?

  Risk.

• 17:01Ryan Sean Adams?

  Ether Risk, okay. I've always read it, never known how to say it. They are delivering something for the real world. David, you want to talk about this?

• 17:10David Hoffman?

  Yeah, this is something that I've always thought would be really, really cool about Ethereum. This is one of these sci-fi futuristic products that I'm pretty bullish on Ethereum in general. I don't know if this is the product that is going to be the future version that I have in my head, but prediction markets and risk markets on Ethereum with, in combination with oracles from, from Chainlink, can allow people to purchase insurance on real world events that can help them secure their lifestyle. And so the Ether Risk team and Chainlink have offered the ability to purchase crop insurance to people in Kenya. So I'm guessing the way that this works is that like if there's not, the theorized model is like,

• 17:52David Hoffman?

  if there's not enough rainfall in your region of the world over a certain period of time, you can buy insurance against that. And so if you are a farmer, you can buy against a drought season. And something like that is being rolled out by the Etherist team and Chainlink. And so that's just really cool.

• 18:07Ryan Sean Adams?

  Crop insurance in DeFi for areas that would previously not have had access to this type of financial instrument. That's kind of what DeFi is all about.

• 18:15David Hoffman?

  Anywhere perhaps.

• 18:16Ryan Sean Adams?

  Yeah, absolutely. All right. Let's let's flip to news, Dave.

• 18:20David Hoffman?

  If you want to live a bankless life, you need to get a hardware wallet. There is no alternative for storing your crypto in a self-sovereign fashion. That's why I have four ledgers that I use to manage my different crypto assets using the Ledger Live account as well. Ledger Live is like your home base for managing your Ethereum, DeFi, and crypto accounts. It does a really good job of aggregating all of your different Ethereum wallets if you are the type of person that uses more than one, but you can also add other cryptocurrencies like Bitcoin or Cosmos or whatever your preferred blockchain is. And then it will display an aggregate portfolio of all your accounts at the main page. One thing that Ledger is doing a really good job of is enabling all the money verbs that me and Ryan talked

• 19:04David Hoffman?

  about with the Bankless Skill Cube enabled in the Ledger Live app. So right now in the Ledger Live app, you can buy, sell, lend, swap, and stake your crypto assets, which is doing a really good job of fulfilling all of the money verbs in the Bankless Skill Cube. Something that's new to Ledger Live is Ledger Swap, where you can swap assets one for another directly inside the Ledger Live application, ensuring trustlessness in your financial activity on Ethereum and on Bitcoin. If you want to learn more about what you can do with a Ledger, go to the blog post "The Power of Ledger Live" on the Ledger website, where they share some of the more advanced things that you can do with your Ledger that you might not have known about. There's a link in the show notes that

• 19:45David Hoffman?

  will take you to the Ledger shop where you can get your preferred Ledger hardware wallets. I personally like the Ledger Nano X, but I also have both. They're both great options. When you own a Ledger, you own your own assets in the way that they have been designed to be held by the user and the user alone. So go get your Ledger today to make sure that you are as self-sovereign as possible. The Bankless State of the Nations are brought to you by Yarn. Yarn is DeFi's first self-building, community-run project, which I just get really, really excited about. Yarn is a system that seeks out yield in DeFi, and it does that in a number of different ways. A very aggressive way is with the vaults, where you can deposit your preferred asset of choice,

• 20:29David Hoffman?

  and different DeFi experts will come in and generate a strategy for what to do with your deposited token. And so it'll go find ways to get yield in that deposited token in DeFi. For those who want to just earn yield on their stablecoins, the Earn system is for you, where you can deposit your preferred stablecoin, and Yarn will go and figure out which money market on DeFi. And DeFi is producing the best interest rate, whether it's DYDX, it's Compound, or AVE. It looks around DeFi to see where the yield is coming from, and it directs stablecoins automatically, so you don't have to. Check them out at yarn.finance to get started. And also check out the stats page to see what other people are doing as well.

• 21:09Ryan Sean Adams?

  All right, let's flip to news, David. So what's in the news? This is the first one. Another rich guy invested in Bitcoin.

• 21:18David Hoffman?

  I've heard this one before.

• 21:20Ryan Sean Adams?

  Yeah. All right, so who is this rich guy, and why do we care?

• 21:23David Hoffman?

  I don't care, actually, about who this rich guy is. Apparently, it's a Mexican billionaire, but just add one to the billionaires who bought Bitcoin column. That's the news.

• 21:33Ryan Sean Adams?

  Well, the news is he has 10% of his liquid portfolio in Bitcoin. And apparently, he's been purchasing from Grayscale since 2016, and he continues to purchase. We're just finding out about this. I think there are a lot of high-net-worth individuals who already are in crypto assets, and you'll find out a few years from now, basically. All right, Coinbase. Coinbase went down. Man, that reminds me of 2017.

• 21:57David Hoffman?

  Yeah, that's exactly right. In 2017, Coinbase went down all the time, and just because 2017 hit crypto companies, they blindsided them. They were not prepared for the customer support and just the load. But also Coinbase has had three years to figure their shit out, and they haven't seemed to have done that. So I can't tell if I'm bullish, because our biggest exchange is crashing because of demand, or I'm bearish, because our biggest exchange is crashing because of demand. Like, what take is there? I don't know.

• 22:25Ryan Sean Adams?

  Brian Armstrong, come on the podcast, disregard what David just said there, your exchange is great. Yeah, that's funny. It's, it feels almost nostalgic to me. And by the way, when we said went down, we just mean service outage, right? It's, we're not talking about price here, but we'll see if that continues to happen. All right, PayPal, we've talked about them for the last

• 22:43David Hoffman?

  Every single time.

• 22:44Ryan Sean Adams?

  Three rollups, basically. They are reaching some serious volume in terms of their crypto sales. Here's a headline that says PayPal has reached 85% of Binance, at least Binance in the US, volume in their first month. This is in crypto sales. Is that right?

• 22:59David Hoffman?

  Yeah, crypto volume. Right, exactly. And so I think that just kind of lends an ear to why getting legacy institutions on boarded into crypto is perhaps even more valuable than building our own alternatives. Like if we want to reach out to the legacy world, we need legacy institutions to come onto crypto, right? Like they have the, the network effects that we want.

• 23:19Ryan Sean Adams?

  It's just low hanging fruit right there. And it's going to happen.

• 23:23David Hoffman?

  Make it easy. Like the, the bullish case for this bull run is that everyone in the world just has like 10 times better access to crypto. It's easier to buy crypto now.

• 23:34Ryan Sean Adams?

  In our final boss series, as we call it, the nation state, doing something in crypto, there is a Dutch, the, the Dutch central bank has told all Bitcoin exchanges in the Netherlands that their customers must actually prove that they really control their withdraw, their withdrawal address. So that means before you, if you're in the Netherlands, before you withdraw your Bitcoin or crypto from an exchange, you have to do some sort of identification, some sort of KYC, AML, you have to attest to ownership. No other European country requires this. I'm actually not sure because I think that, oh, Switzerland does. There's Nick Carter.

• 24:14David Hoffman?

  Thank you.

• 24:15Ryan Sean Adams?

  Yeah, thanks, Nick. I knew you'd be there. Yeah. So what's your take on this sort of thing? Like crypto, crypto banks are becoming regulated, essentially. That's what exchanges are. And the nation state saying, hey, you gotta know who you're sending the money to. We have rules around this. What do you think?

• 24:30David Hoffman?

  Yeah, so they're just making exchanges cover their own ass with their withdrawals. So like if I have a Coinbase app and I am buying drugs on the Silk Road and I send Bitcoin from my Coinbase app to my Silk Road address, I actually can't attest to the ownership of that address because somebody else owns that. And so like if I need to send it to my own address and then I can attest that I own that address and then if I send that money to the Silk Road, I've attested or you know, insert your criminal activity here, I've attested ownership over a Bitcoin address that made a transaction that did that was associated with illegal activity. So it's really just about the nation state trying to get a grasp on where all the world's value is going. And so like, we would expect this to come out of the nation state is also perhaps an

• 25:15David Hoffman?

  infringement on privacy.

• 25:17Ryan Sean Adams?

  Yeah, it's also to me anyway, bearish a little bit on Bitcoin network because if you are scaling Bitcoin with crypto banks and all crypto banks require AML KYC identification, then basically you're going to turn into a world where you've got some limited activity on chain, but all of the real economic activity is all AML KYC, no privacy, right? Hopefully that is not the fate of Ethereum and DeFi.

• 25:45David Hoffman?

  Maybe that's why there's so much Bitcoin on Ethereum.

• 25:48Ryan Sean Adams?

  Maybe so, David. I think you're on to something because that keeps rising from week to week. All right, let's talk about something else in the nation state world. The SEC Chair, Chairman.

• 26:02David Hoffman?

  Jay Clayton.

• 26:02Ryan Sean Adams?

  Jay Clayton, who we heard so much about for the last three years, he has stepped down and the headline is the crypto community rejoices. Are you having a party about this?

• 26:11David Hoffman?

  I guess so. I didn't really have a strong opinion about this, but people really think that Jay Clayton was the individual that was getting in the way of a Bitcoin ETF. And now that he's gone, a Bitcoin ETF is closer. And so if that's true, then absolutely, let's get a Bitcoin ETF so people can access Bitcoin via the legacy stock market and number can go up.

• 26:31Ryan Sean Adams?

  You know, it's a bull market when we've got Game of Thrones celebrities talking about Bitcoin and crypto assets. So this is Maisy Williams, who is asking the question, "Should I go along Bitcoin?" Wow, look at these results.

• 26:45David Hoffman?

  Yeah.

• 26:45Ryan Sean Adams?

  Bitcoiners are not happy about that.

• 26:47David Hoffman?

  Yeah.

• 26:49David Hoffman?

  That's pretty funny. Yeah, and the reason I think we want to talk about this is, is signals like this are important. Like Bitcoin is reaching into the mainstream, like, and the people that are commenting on Maisy Williams Twitter about whether she should buy Bitcoin or not are retail, right? This is how we access retail. Also, it's worth to note that like, there was a, in 2017 in December, Katy Perry tweeted out her painted fingernails that were all cryptocurrency themed.

• 27:13Ryan Sean Adams?

  Oh, I remember that.

• 27:14David Hoffman?

  Bitcoin, XRP, Monero, and like, that was literally the top. Like, when you see celebrities with painted crypto asset toenails and fingernails, like, hit that sell button, because like, it's, it's time to get out.

• 27:25Ryan Sean Adams?

  Wow.

• 27:26David Hoffman?

  Pay attention.

• 27:26Ryan Sean Adams?

  This is not the top, David.

• 27:28David Hoffman?

  This is not the top.

• 27:28Ryan Sean Adams?

  You're saying Maisy, okay.

• 27:29David Hoffman?

  We're just gonna see more and more of this as time goes on.

• 27:31Ryan Sean Adams?

  Okay, we gotta wait for her to paint her fingernails, and then it's the top.

• 27:34David Hoffman?

  Specifically fingernails.

• 27:36Ryan Sean Adams?

  It's fine. All right, what is on your mind, my friend? Tell me what's on your mind.

• 27:41David Hoffman?

  Yeah, so we released something on the bank list of a newsletter this week, which I thought was pretty cool, which is a bunch of memes, a bunch of World War II era propaganda memes. And so, the claim is that the Ethereum developers, Ethereum researchers have done their job. They've built out the network that Ethereum needs to be. Ethereum is built to run on incentives, and incentives alone, it can survive in any environment. That's what it's supposed to do. However, there's a difference between surviving and thriving. And if we want Ethereum to thrive, it's up to the social layer of Ethereum. That's you, the listener, that's me, David, that's you, Ryan. The social layer of Ethereum is the community, and we need to work on our meme ability, our, our spreading the message, our spreading the virus, right?

• 28:24David Hoffman?

  And this is, this triggered very quickly a lot of Bitcoiners. I always like it when I throw out a tweet that gets a lot of Bitcoiners in my, in my DMs telling me I'm dumb, because I know I hit on a nerve. And this triggered Bitcoiners really fast, and I think that they know that Bitcoin... It's only something that they dominate in the narrative. They dominate in the social layer. That's their world. And they see this as like entrance into their territory. And they previously would look on like Ethereum developments, like look at those stupid Ethereum's developing their chain. Don't they know that the fight is in the social realm? And now, now, now we're done developing and now it's time to get into the social realm and Bitcoiners are feeling threatened.

• 29:05Ryan Sean Adams?

  Nicely done, sir. A little fire with fire. I mean, when we say memes, we're not just talking about like gifs and images, although that's what these are and pretty effective. But we're just talking about like simple, easily conveyed viral units of information, right? A great Bitcoin meme is Bitcoin is gold, right? Super easy to digest and, and tell people about. So absolutely. Great improvements on the social layer, I think. And man, you're triggering people. So you must be doing something right.

• 29:34David Hoffman?

  Hey, we're gonna beat that drum a lot on the bankless program.

• 29:38Ryan Sean Adams?

  Absolutely.

• 29:39David Hoffman?

  What's on your mind?

• 29:40Ryan Sean Adams?

  Well, I've been thinking about what's the best way to get exposure to DeFi? And there's actually some debate about this and this is kind of on my mind and I want to like talk about it. So I tweeted this out. I said, which of these provides the best risk-adjusted price exposure to DeFi specifically? DeFi specifically on Ethereum? And I gave three options. The first is ETH. You just buy either the asset. The second is Bitcoin. And the third is, yeah, which we talked about at the front, the DPI, DeFi index. So this is like top 10 by market cap or so DeFi tokens. So I can share the results.

• 30:21Ryan Sean Adams?

  55% of folks said ETH is the best way. 13% said Bitcoiners or Bitcoin is, is the best way. And 32% said the DPI DeFi index is the best way. So fairly close between ETH and DPI index.

• 30:40David Hoffman?

  What's your take? Almost two to one ETH versus DPI index.

• 30:44Ryan Sean Adams?

  Yeah, that's true. That's true. That's another way to look at it.

• 30:49Ryan Sean Adams?

  What's your take? What's the best way to get exposure?

• 30:52David Hoffman?

  I think the important parameter here is risk adjusted. And that's going to be ETH. And it's a difficult thing to measure because like, we don't even know what DeFi is. Like, what are we actually measuring here? Are we measuring the market cap of all tokens on Ethereum outside of ETH? And how do we get exposure to that? And is that Ether? Or is that an index of the tokens? Because I feel like the intuitive answer would be an index of a token. But I would like to claim that Ethereum and DeFi are actually synonymous. Where like, applications in Ethereum, their money Legos inside of Ethereum are Ethereum itself. You stitch all the contracts inside of Ethereum together. And you create a single structure that is Ethereum. That's what Ethereum is.

• 31:34David Hoffman?

  Like, the superset of structures of Ethereum that we call DeFi. When you add them all together, they are Ethereum. And the value of Ethereum is directly reflected in the price of Ether. And so, I would actually expect over a long time with more maturity in DPI, that ETH and DPI track each other relatively well.

• 31:52Ryan Sean Adams?

  Interesting, yeah. And I do think that it is, although DPI is a great product, is pretty early to index these things, right? So, the top 10 DeFi assets, man, these, most of them didn't even exist a year ago, dude. So, like, they're gonna change on a dime. They're gonna flop in, like, come in, come out. And it's gonna take a long time for this to settle in any way. Like, the S&P index has settled, right? So, one way to look at it is, if you're betting on DeFi on Ethereum, like, what's the probability that something like, say, Wi-Fi, it still exists in 10 years? And is the reigning champ versus what's the probability that ETH is still there? And obviously ETH is going to be still there because it underpins the security of the network.

• 32:37Ryan Sean Adams?

  So, that's also another way to look at it. I would definitely wait towards ETH. Though I do think DeFi tokens are gonna have quite a successful bull run. I'm just not sure that an index will capture all of that activity. And to your point, on a risk-adjusted basis, it will either. All right, David, should we talk about what is exciting right now? What are you excited about?

• 33:02David Hoffman?

  Yeah, my take this week about what I'm excited about is using excited in a non-typical way, which like I'm excited and it's excitatory. I'm alert about it, but I'm actually, it's not very, it's not a happy exciting. I'm worried about the future of specifically with COVID and COVID's legacy, because I think it has, it's going to have a very lasting impact upon the world. And the 2020s decade is bleak. It's bleak. People, people think that the year 2020 is just a taste of what's to come in the remainder of the decade. And it's highly likely that we have a very deflationary decade as things, as meaning as things contract, right? We are seeing the demolishing of small businesses and the absolute growth in equity

• 33:47David Hoffman?

  asset prices of massive businesses. If you are a big business, if you are Amazon, Walmart, Target, or Lowe's, or whatever, your price, your share prices are doing fantastically. If you're a small business, you are closing up for shop. And I think that's just a recipe for dystopia. I think there's going to be a massive contraction in the 2020s decade. And like, it feels weird to be in crypto, because we are in such a polar opposite industry, right? Crypto is hot right now. And to some degree, the measure of the contraction of the legacy world is actually a function of how much crypto can expand, right? In the crypto world, we're trying to build this arc, so that we can get the rest of the world on to it. And we need to build this arc quickly, so that we can save as many people as possible.

• 34:32David Hoffman?

  There's a flood coming. Like, the reason why we're building an arc is because there's a massive flood coming. And that actually causes me a bunch of angst. And I'm excited about it in a bad way.

• 34:41Ryan Sean Adams?

  Just feels like society is almost cracking at the seams under this, under this pressure, right? So we've got this tweet that I put up, similar to what you said, like, Amazon profit up 100%, but small businesses, 20%, or 21% are closed. Revenue for the rest down 30%.

• 34:58David Hoffman?

  As we go into further lockdowns.

• 35:01Ryan Sean Adams?

  As we go into further lockdowns, like, what, like, how can a society exist with this level of strain? I mean, there's got to be some form of of social unrest coming our way. And I think we've seen some of this in 2020. You're saying that, like, for the foreseeable future, maybe all of the 2020s, more of the same?

• 35:20David Hoffman?

  I think there's no reason to think as to why the year 2020 is unique. And it's actually rather, it's much more rational to think that it is something, as just a teaser of what's to come.

• 35:30Ryan Sean Adams?

  All right. That's normally what we talk, not what we talk about, what we're excited about.

• 35:34David Hoffman?

  Usually we're pretty fucking bullish.

• 35:35Ryan Sean Adams?

  It's what you're sober about. I guess that's what I'm sober about. Reality of things. All right. Well, let me flip on something that I do think is bullish, maybe bullish for humanity.

• 35:45David Hoffman?

  All right. Please, need it.

• 35:47Ryan Sean Adams?

  Yeah. You want some, you want some good news now? All right. So here's the good news. This is maybe one of my, the like, the best charts I've seen all year. And for, for those that can't see it, up at the top, there is kind of a green line that shows ether balance on exchanges. So the total amount of ether that is held in crypto banks on these exchanges. And there's a pink line that is percent of ETH supply in smart contracts. Well, as of the last like three or four months, all of a ton of the ether on exchanges and in crypto banks has actually bled out into smart contracts. So ether in crypto banks and exchanges down,

• 36:29Ryan Sean Adams?

  ether in smart contracts and money legos and bankless money systems for the world up. That is so phenomenally bullish to me because one of my biggest, I love it. One of my biggest worries about crypto is are we just creating the system that we formerly left, right? Like

• 36:47David Hoffman?

  New money, same system.

• 36:48Ryan Sean Adams?

  New money, like same systems, like new bankers, maybe it's, it's CZ at Binance and our friend Brian Armstrong. Come on the podcast, Brian.

• 36:58Ryan Sean Adams?

  And we just created new bankers, but they're still the same old bankers.

• 37:01David Hoffman?

  Right.

• 37:01Ryan Sean Adams?

  Or are we really like for real, creating a decentralized bankless money system for the world? And this is an indicator that we are actually succeeding, that through DeFi, ether as a trustless store of value asset is becoming more decentralized. What is more bullish long-term than that? I'm super bullish about that.

• 37:21David Hoffman?

  Yeah.

• 37:21Ryan Sean Adams?

  Really excited to see this.

• 37:22David Hoffman?

  This is the bankless thesis, right? And like, what, what banks are, are just like the archetype of an intermediary? Like we, we probably would have called this intermediary is lists, but that's not a very catchy word. And so we

• 37:35Ryan Sean Adams?

  No, it's that.

• 37:36David Hoffman?

  But like we could have seen that we predicted this for forever ago and it's I guess all it took was like to be able to achieve yield inside of DeFi. And all of a sudden, the ether flowed into DeFi, right?

• 37:49Ryan Sean Adams?

  Yes.

• 37:49David Hoffman?

  Ethereum needs to find ways to make itself useful, or else it'll never be adopted. And if it does find ways to make itself useful, then all the money is going to be in Ethereum, not on the, not on the margins, not on the edges, not in your crypto banks, but inside of applications, inside of DeFi. And one of those DeFi applications is Rocket Pool, which is where we can stake ether in a, in a way that is distributed and decentralized. It's not with a centralized staking system. And it's another way to get ether outside from the margins and inside into the world of DeFi, right? Like, we can just build our own internal incentive mechanisms to keep things on the inside.

• 38:27Ryan Sean Adams?

  Yeah, exactly. We are, this, this is why you and I, David, we talk, we, we love Bitcoin. Bitcoin's fantastic. I mean, both of us are Bitcoin bulls.

• 38:34David Hoffman?

  Especially Bitcoin on Ethereum.

• 38:36Ryan Sean Adams?

  Bitcoin's great, right? So, but like, this is why we talk about ether and Ethereum so much is because this is what a bankless money system looks like. The, the problem with the Bitcoin network is it's going to become more and more centralized over time. If you want to actually do anything with your, like, your money, with your wealth, you have to use an intermediary. You have to use a crypto bank, even if it's just sending funds, unless you're a whale that can afford big, like, expensive block transactions, right? This is the antithesis of this. This says, like, you can truly be your own bank. You can trade with Uniswap. You don't need an intermediary. You don't need a Coinbase. Uh, and so I do think that is, this is the, the bankless, the bankless thesis exactly in graph form.

• 39:19Ryan Sean Adams?

  You know, uh, the, the other thing I was thinking about is just the, the raw power that we have, you know, like how, um, kind of the internet gives you superpowers, right? Or like, when you first got a smartphone, it was like, oh my God, like, I'm so powerful. I can get anywhere in the world through Google Maps. It's just, it's almost like a, um, a cyborg kind of add-on to your, your human intelligence, right?

• 39:43David Hoffman?

  Bicycle for the mind.

• 39:44Ryan Sean Adams?

  Right, a bicycle for the mind. Okay, Steve Jobs there. So, I feel that way about, um, my Ethereum address, right? My Ethereum address is a hundred times more valuable than any bank account I have ever opened. You know that, uh, Chris Dixon thing where like, or it may not be Chris Dixon, but it's Silicon Valley saying is if you're going to build another product, can't just be like, A little bit better, it has to be 10x better.

• 40:10David Hoffman?

  That's Peter Thiel.

• 40:11Ryan Sean Adams?

  That's Peter Thiel, okay.

• 40:12David Hoffman?

  Yeah.

• 40:12Ryan Sean Adams?

  So like, zero to one, okay, so

• 40:16Ryan Sean Adams?

  that's what I feel like an Ether, Ethereum address is. It's not, and it's not just 10x, in some ways, it's like 100x better. It is a superpower.

• 40:25David Hoffman?

  New dimension.

• 40:26Ryan Sean Adams?

  I was just thinking about that, I've had to do some stuff with traditional banks this week, David, like wire funds and just like

• 40:33David Hoffman?

  In your bank.

• 40:33Ryan Sean Adams?

  Transfer, right, like transfer, and they're like, no, you can't, you can't, you know, there's a limit to how much you could take out of this bank and put in that bank account and like it is so inhibiting compared to

• 40:47David Hoffman?

  Antiquated.

• 40:48Ryan Sean Adams?

  My ETH address, antiquated, like I could do so much more with it and I do think that the 2020s will be a period of time where people start to unlock this potential and realize that as people unlocked like their email address and found out all the cool things they could do with that, or like the Netski browser and figured that out, or the internet. It will give you superpowers, this is like a yeah, anyway, that's the other thing I was thinking about and very exciting from my perspective.

• 41:14David Hoffman?

  It's also a superpower that we can share, like you getting the superpower doesn't actually stop other people from also getting the superpower. And that's why you, the listener, should also go and recruit a friend because you should give them superpowers too.

• 41:27Ryan Sean Adams?

  Well, it's actually, it's actually better than that because like the more people who are using ETH addresses, the more like superpowers I have, more liquidity in the system, more users, greater network effect, it's like a

• 41:38David Hoffman?

  Number goes up.

• 41:39Ryan Sean Adams?

  Log scale, everything goes up.

• 41:41David Hoffman?

  Everything goes up, yeah, so get an accountability buddy and get a friend into Ethereum. Give them superpowers.

• 41:47Ryan Sean Adams?

  All right, so we're talking recruiting this week has been the theme, give your friends superpowers. Bring them to Ethereum, David, I think this has been a fantastic weekly roll up. Third week of November, excited about the future. Thanks for joining us for the weekly roll up, I hope you're enjoying your Friday morning.