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HODLers! 📢 Bitcoin Legal Tender (Country No. 2)… Next?

HODLers! 📢 Bitcoin Legal Tender (Country No. 2)… Next?

For all the FUD (fear, uncertainty, doubt) right now, there are more reasons to be bullish!

No. 1: Another country just made bitcoin (BTC) legal tender! (Two more to go for my prediction victory lap!)

No. 2: Money keeps pouring into crypto, despite the markets being down.

We’re talking billions!

I’ll dive into all of this in today’s IanCast Crypto Corner.

Don’t forget to watch till the end for your questions — including if Ethereum’s price can rival bitcoin’s, what’s ApeCoin and where can you buy Pocket Network (POKT) and other altcoins.

Watch here or jump ahead to:

  • “Buy the rumor, sell the news” event coming next week for your America 2.0 growth stocks, here.
  • The mass adoption of crypto, here.
  • Altcoin of the week: Aave (AAVE), here.
  • Your crypto questions, here!

 

Hey everyone, welcome to this week’s IanCast. This week I want to start off talking about stocks and some things going on in the market. Obviously there’s a lot going on with earnings season and the Fed meeting coming up next week. Then I want to get into crypto.

There are still a lot of bullish things going on behind the scenes despite a relatively weak market, especially in alt coins. Then I want to get into the alt coin of the week, which is Aave. It’s one of my favorite projects in general.

 

Buy The Rumor, Sell The News!

I have mentioned it many times on prior IanCasts, but I never really went into a deep dive on it. I want to explain to everybody why I’m really bullish on that project. Let me go ahead and share my screen.

Stock prices

The first thing I want to show are these metrics here. This is a list of growth stocks that are expected to grow at least 20% a year over the next three years. They have been absolutely crushed. A lot of these stocks are down 70%, 80% or more. The stocks in red are down more than 80% from their high last year.

All of them for the most part have price-to-sales ratios — their market cap divided by expected 2022 sales — of under 5. I wanted to compare these to Apple, Google and Microsoft, which don’t have as high growth. 5% for Apple, 15% for Google and a little over 14% for Microsoft.

They haven’t come down nearly as much. They are being valued even higher than these high-growth companies. Price-to-sales ratios between 5 and over 10 for Microsoft. The comparison here is crazy to me. There’s been a steady crash and bear market for growth stocks.

To me, it’s way overblown. The downside from here — I know I keep saying this — it’s very small. ARKK, the main growth ETF, did make a new low. To me it really does signal that these companies are extremely cheap right now compared to some of these other blue chip stocks that have come down but not nearly a much as growth stocks.

One of the main reasons for this is because 2020 was such a big year for a lot of growth stocks. They saw a huge jump in revenue. They still grew in 2021, but it wasn’t as high as that initial growth in 2020. A lot of these companies saw a boost from everything having to do with COVID.

More people were drawn to these platforms, probably more than otherwise would have been. You had a couple years of growth combined into that one year in 2020. Last year was not as big, but they still grew. And they are still expected to grow over the next three years quite a bit.

So 20% all the way up to 120% for Marathon Digital, which is a Bitcoin (BTC) mining company. These are really solid companies. The market is treating them like they are going bankrupt or something or that they’re worth a fraction of what they really are. Even a fraction of what companies like Microsoft are worth in terms of price to sales.

I don’t think that’s the case. Just looking at these companies from a fundamental view, they are still growing revenues a lot. They are still growing user base. That’s expected to continue for at least the next three years. I even went and got the price-to-sales ratio for 2024.

This could be their current market cap divided by their 2024 estimated sales. For a lot of these companies it’s under 2. The median for growth companies is 1.84 versus 5.99 for Apple, Google and Microsoft. Again, these companies are worth just a fraction of what the more mature tech stocks are.

I think there’s a massive imbalance here. The market is still going very risk off in traditional ways. Every time there has been Fed tightening, it’s been a bear market for growth stocks and stocks with perceived higher risk. I wouldn’t say these companies fundamentally are at a higher risk.

As I said, they are still growing their user base rapidly, they are still growing their sales and that’s expected to continue over the foreseeable future. A lot of these companies’ sales estimates for this year is right around where it was a year ago.

In a lot of cases, their sales estimates for 2022 is higher than it was a year ago. Over the past year I know it’s been a rough ride for the stocks, but in actuality, the expectation for sales and growth is right where it was a year ago when these stocks were much higher than they are now.

I just wanted to provide some clarity with that. The Fed rumor next week I think could be a sell the rumor, buy the news event. Stocks have gotten crushed coming into that meeting. I think any kind of bad news has been priced in.

The market is pricing in a double rate hike for next Wednesday, a double hike in June and a triple hike in July. At this point, I don’t know what can get more hawkish than that. Maybe they will price in a triple rate hike in June. I don’t think that’s likely at all that’s going to happen.

I think maybe we will get a double hike in May, maybe another hike in June. With the GDP number that came out yesterday, -1.4% growth, that was way below estimates. I don’t know how the Fed is going to justify having seven traditional rate hikes in the span of three months when the country’s GDP is negative year-over-year.

I think they are going to pare back their expectations and slow things down in terms of rate hikes. Maybe even with their balance sheet tapering, which would be a big relief for companies that rely on the central bank and Treasury to take out loans to fund things like share repurchases and dividends.

If the Treasury just stopped buying corporate debt it would be a massive issue for these companies. Like I said, they rely on that debt to buy shares back, which creates scarcity, and also to pay their dividends. People buy as a flight to safety. So it’s some sort of safety they get from that dividend yield that they wouldn’t get from buying those stocks.

Most of which don’t’ have much growth at this point and they are in trouble with their cash too. A lot of them don’t have nearly enough cash to support share repurchases and dividends. They really do rely on taking out those loans in order to do that.

I think between that, GDP and consumer sentiment in general, the central bank will pare back these rate hike expectations. When that happens, the market will take it into account and that will be good for growth stocks. Next Wednesday’s meeting is important.

Again, I think it could be a sell the rumor, buy the news just because it seems like worst-case scenarios are being priced into the market, especially in growth stocks right now. Any good news I think would be a huge boost for the growth stock sector.

I just wanted to cover stocks really quick, get an update on that and everything we are seeing. I wanted to put in perspective just how cheap these companies are now. I know it’s been a brutal ride. I have gone through that with everybody. I don’t just talk about these, I invest in them too.

It’s been rough. I just wanted to provide some clarity on that. Now let’s get into crypto.

 

The Mass Adoption Of Crypto!

First, BTC was adopted as legal tender in the Central African Republic, country number two that’s done this. That is a huge deal. It’s another relatively small country, but looking at the big picture the fact is that BTC is legal tender in two countries barely a year-and-a-half after it was on anyone’s radar.

In the summer and fall 2020 BTC was at $8,000 to $10,000 a coin. It’s come a long way in just a year-and-a-half. In crypto time, a year is a week. Next week we might see something else crazy that we didn’t think could happen this week. I just wanted to let everybody know about this because it’s awesome news.

This comes on the heels of another announcement this month that two new territories are adopting BTC. These are not countries, but they are still areas that are making BTC legal tender. It’s Prόspera off the coast of Honduras and Madeira, which is an autonomous region in Portugal.

This is spreading all over the place now. It’s in Central America, Africa, Europe. I’m pretty sure there’s somewhere in Switzerland that’s made BTC legal tender. It’s spreading for sure. Just within the past seven or eight months BTC has grown exponentially in terms of geopolitical adoption.

With Russia and Ukraine it provides more of a use case for BTC. In Russia’s case for having a reserve asset that can’t be frozen by other countries and for Ukraine, it would be uncensored donations and relief funds. The whole world is getting a view of how BTC can be used in a really good way.

Above all else, BTC is the most secure and un-censorable payment network in the world. There’s never been a better time for that than now. I think this adoption is going to grow faster and faster as we move forward.

The other thing I wanted to cover this week is the crazy amount of funding that’s gone into crypto markets in general in April. This is despite BTC which I think is down 13% or 14% this month, alt coins getting crushed. Yet, all this money is flowing in.

This is exactly what we call smart money. First, NEAR Protocol raises $350 million in new funding led by Tiger Global, which is a venture capital firm. You’ll see a lot of these funds are raising money. Pantera Capital is actually a VC firm that’s raising a new fund.

They brought in $200 million for this fund already as of April 6. Ava Labs, which is the company behind the Avalanche blockchain, raised $350 million. That company is now valued at $5 billion. That’s crazy considering they just launched in 2019. They are a very young company that’s already worth $5 billion.

Next is Joe McCann, who has been in the financial space for a while, but is now getting into crypto with his fund called Asymmetric. This is going to have two different parts, but more importantly he’s targeting to raise $1 billion and it sounds like he’s well on his way there.

He’s gotten the attention of a number of different funds. There’s a16z, which is probably in the top three or four funds in the crypto space, Solana, CMF, Coinbase and Tiger Global. This is a big deal. This is like a dream team of people working on this fund and funding it.

They are building this huge capital pile to go into crypto. That money is going to flow into the crypto market, same thing with Pantera’s $200 million fund. That’s extremely important. It’s also the case with Dragonfly Capital which raised another $650 million to be invested in crypto projects.

That was just two days ago that was announced. Altogether, we have around $2.5 billion that’s been raised just this month to go into the crypto markets. To me that’s impressive. It’s not at all reflected in the market. Things are quite in terms of the overall prices of these assets.

But behind the scenes a ton of money is preparing to either be invested or has already been invested into a bunch of these projects. I just wanted to share that because I think it’s extremely bullish. That’s not to say the price is going to rocket up tomorrow.

It is good news that this space is still attracting a lot of money. That’s something you want to see, especially when sentiment is so low.

Next, this is something I want to show week to week: the percent of BTC supply that was last active more than one year ago.

Bitcoin graph

That has reached a new high here within the past couple weeks. It’s now more than 64.5% of the supply that has not been moved in more than a year.

Long-term holders are still holding on strong. That’s exactly what you want to see. If we zoom out, that’s been a distinct pattern in how price reacts to this. Every time this spikes and makes a new high, it’s marked the bottom of the BTC range. BTC might stand still for a little bit, but ultimately it marks a period where downside is limited.

It happened back here in 2015, it also happened in 2012 where it spiked as BTC was trying to move up from the bear market. 2015 again it went to about 60% of the supply being held onto, that was when BTC was around $200. From September 2015 to December 2017 it was a 100x move from $200 to $20,000 per coin.

Last time it made a new high was last summer in July and August. That was when BTC was sitting around $9,000 to $10,000 per coin. It sat there and went up and down a little. Overall, this marked the area where BTC took off later that year. Again, this is not an indicator to say BTC is going to shoot straight up from here.

It might be sideways a little bit. Ultimately, the fact that so many coins are being held and long-term holders are not selling is an indicator the downside from here is not very low. It means the market is illiquid and we could see big moves happen in the market in a short period of time.

There might be selloffs, there might be rallies, but overall it looks like the BTC price downside is not too much from here. We’re still at a time where there could be a lot of panic in the market if BTC moves down 5% or 10%, but ultimately we need to remember the scarcity of BTC is going to have a factor at some point.

You don’t want to be caught off guard when that happens. When it moves up, it moves up extremely fast. Even though it’s been weak recently, it all boils down to supply and demand. The supply side of BTC is at an all-time bullish high from long-term holders.

Who knows when the demand is going to come back in in a big way? I personally don’t. I think the upside from here is massive. I would not sell here. I think it’s not worth selling, especially when the long-term holders are holding more coins than they ever have before.

I think there are better days going forward for BTC than we are currently in.

 

Altcoin Of The Week: Aave

Another thing to cover really quick, last week I talked about Pocket Network and how they are a good alternative to companies like Infura and Alchemy. Infura had another outage, which people use in MetaMask. This is just another reason to have decentralized services like Pocket Network.

They provide an alternative. They are seeing massive, rapid adoption. If you are interested in Pocket Network as an alternative to Infura which keeps having issues, check out my last IanCast which was a few weeks ago.

I want to get into Aave. This is ranked number 56 in terms of market cap.

Aave Info

In my opinion, it’s one of the best DeFi projects out there in terms of the scope of what they’re doing. It’s pretty amazing how far they’ve come in just a couple years.

One of the big things for Aave that I want to point out is the fact that there is no future inflation for the coin. The max supply is 16 million coins. Circulating supply is 13.7 million. There are no new coins entering the market as far as newly created coins.

A lot of these coins are locked up in the reserve fund for Aave, which would be used in case there’s a hack on the network and users lose funds. They would be reimbursed by the money set aside by Aave, which we will get into in a second.

I wanted to point this out because a lot of the DeFi projects out there have huge inflation over the next couple years. That’s because a lot of them, especially on blockchains like Avalanche, Solana and others, are run by VCs. People got in early and claimed a bunch of tokens.

They can’t spend them for a couple years, but they are still there and they are going to contribute to future inflation. Aave was one of the first DeFi projects so it’s not in that boat. Unfortunately, that’s becoming the norm, but Aave is not in that category.

Just right off the bat the fact there’s no big future inflation for Aave is a pro in my opinion. This is what the app looks like.

look of app

It’s just a lending and borrowing market. They also have swap features and are on a bunch of different blockchains. They have a ton of coins listed here that you can lend and borrow on their platform.

It’s super innovative. You can get higher interest rates than you would at a bank. It provides a much easier way to get a loan. Of course you do have to put money in to take a loan out. For example, if you deposit USDC into Aave, with $1,000 worth of USDC you can take out a loan in USDC.

What a lot of people do is deposit things like Ethereum (ETH) in here and take out a loan in UDSC. Basically borrowing against ETH so they don’t have to sell it and they can take out a loan against it instead. That’s a feature you will not find, at least for the common person, in traditional finance.

That’s what Aave provides and it provides it in a really easy way. You don’t need to interact with banks. You don’t need to fill out a bunch of paperwork or have a credit check. As long as you post the capital, you can take a loan out. To me, that provides a huge service.

It’s something a lot of people would be interested in because a lot of people have crypto, they don’t want to sell it because they believe it will go up in the future. This gives them an alternative. They can borrow against it instead. As long as ETH or whatever they are borrowing against doesn’t go down a lot, they can keep that loan outstanding.

There’s no time requirements or anything like that. You can keep the loan out as long as your collateral is still worth a certain amount. I think it’s an interesting service. It caught my eye when I first found out about it. It’s been a couple years since then and it’s been impressive how much it’s grown.

Another thing you can do with Aave is stake it.

Staking

This is the safety module, which is that reserve fund that would be used in case of a hack. When you stake, you get paid from the reserve fund. I think the interest rate is 7% or 8% right now. But you do run the risk of having 30% of the staked funds being used to cover a deficit in case of a hack or something like that.

Or just in case there’s a quick drawdown in crypto and people’s collateral is suddenly worth a lot less and they are liquidated, this would be used to back that up too if there’s more money being borrowed than lent to the market. I think that’s useful. It’s quite a lot of money.

This is something we’ve heard about with Luna and Anker, which is kind of like Aave. They ran into some issues where they didn’t have enough money to cover the interest. They had more people taking out loans than they had funding the loans. There was a mismatch there.

They had to quickly create this fund in order to provide a backstop to that mismatch. Aave has had that in place for almost a year-and-a-half. That’s good thinking on their part. It provides safety to this protocol too. The good thing about blockchain is you can see this in real time.

All this money that’s been staked — $494 million worth of Aave token. You can also stake ETH, Aave liquidity tokens from Balancer, which is another crypto project. There’s some collaboration there, which is cool to see. You can stake those as well and earn interest in Aave on those funds.

They also have another backstop here which is mostly made up of stable coins. They have almost $30 million in this fund. This is also to back up any issues with the network in terms of hacks or lending borrowing mismatches. So they have a lot of money in reserves in case something bad happens.

It’s really good to see because a lot of these newer protocols are in over their head with that. If there is a sudden crash, they might not hold up as well. Aave has been through several crashes now and they’ve held up really well. They haven’t had any issues.

Of course people do get liquidated from their loans. Other than that, they haven’t had any really bad issues with their platform itself or the structure of the market. That’s good to see, especially in such a new and perceived risky app as Aave.

Next I want to get into their revenue. They started back in 2020.

aave chartAave chart 2

 

They barely got any attention in the first half of 2020 and then DeFi summer happened around July. They more than doubled their revenue in July and August 2020. Since then, it’s been crazy. Their total revenue since inception is $440 million.

They have made over $80 million in revenue so far this year. Compared to last year, it’s 100% year-over-year growth. Last year they went from $5.6 million in December to $46.2 million. That’s a little over $40 million in the first four months of 2021 and $80 million so far this year.

It’s really good to see the growth, especially in these market conditions where you wouldn’t really expect people to be using these DeFi platforms as much. People have been risk averse and crypto averse. A lot of people have been panic selling.

In this environment, it’s good to see the projects that are seeing even double the amount of fee revenue they were seeing last year. I think that’s a testament to how sticky Aave is in terms of its user base and the product in general, which is crypto loans.

Overall, their borrowing volume is sitting at about $7.5 billion. Actually, if we zoom out a little, it’s come down since then. It’s now at $6.2 billion. Billions of dollars’ worth of loans outstanding in a time like this is cool to see. You can tell why banks might be afraid of this.

FRED Chart

Consumer loans since Aave’s inception are up around $118 billion. So about $1.6 trillion in January 2020 to a little over $1.7 trillion in March 2022. Aave is way smaller than this, but the marginal market share capture Aave is getting, I think, is a big deal. Not many people are talking about it.

It’s really cool to see and to compare this with consumer loans where $118 billion has been taken out for the entire banking industry in the U.S. Compare that with Aave and Aave is actually gaining on them since inception. I just wanted to use that as a comparison.

I wouldn’t place a huge amount of weight on that at this point, but going forward looking at the amount lent out on Aave versus the amount lent out by banks, I think they are probably starting to pay attention to these projects in crypto because the best kind of growth happens at the margin.

When you get your foot in the door and establish yourself as a competitor, that’s when the incumbent starts to take notice. It’s definitely good to see Aave making these strides, especially in the face of rapidly rising loans from banks.

Aave also has a feature called Flash Loans which is something that sets it apart from most of these money markets and crypto.

Group of charts

It’s mostly programmers who do this. They take out a loan and pay it back all within one block space of ETH. I think that’s 15 seconds or so.

It’s a really rapid process where this happens. It’s usually things like arbitrage. It’s been a popular feature of Aave. Since inception they have had more than $10 billion worth of Flash Loans taken. This chart shows the volume per month. It usually comes in bunches.

When there’s a big arbitrage opportunity, people will take that and use Aave Flash Loans to do it. It’s another way Aave is able to generate fees. They have made almost $1 million in fees from Flash Loans this month alone. In the other two big spikes, they made $2.15 million in fees in October and $1.76 million last May.

This is just something that I think is a cool feature Aave offers that their competitors really don’t. It’s just something I wanted to point out.

Next, their TVL. So it’s the total amount of money in the system between lenders, borrowers and stakers. It’s more than $19 billion. If you look at the big picture here, it’s number three in all of crypto in terms of TVL.

TVL Info

That’s good to see. It’s one of the most adopted platforms.

A lot of the platforms that saw big adoption in 2020 and early 2021 during the big hype run has fallen way off since then. Aave is one of the few that’s stuck around and retained a lot of that money. They are also getting their product onto a lot of different blockchains, which is super important.

They are now the number one in terms of TVL on Avalanche with $5.68 billion. They are number one on Polygon with $1.23 billion in TVL. They also just launched their Aave v3, which expanded them into five other chains: Optimism, Avalanche, Harmony, Polygon, Abritram and Phantom.

So six networks. Four of those are new. They were already on Avalanche and Polygon. It just brought their service onto several other networks including ETH layer 2 like Arbitram and Optimism. With the high fees on ETH, when fees get high people are going to move on to these platforms which are still ETH, but they are just scaling solutions for the netowkr.

AAVE V3 $AAVE

Arbitram has already gotten $16.5 million in capital. Optimism has a little over $6.5 million. Avalanche in terms of v3 is the clear winner with more than $1.33 billion added in TVL already. It’s definitely caught on quick. That’s very good to see.

Going forward, I think this is going to be a huge platform. I think Arbitram and Optimism are going to grow their presence in Aave quite a bit because, like I said, they are scaling solutions for ETH. It’s really the key and you can get way lower fees. With lending and borrowing, that’s important.

Just wanted to point out the TVL, how they are growing and how they are getting into different chains and dominating. With Avalanche and Polygon they are number one. That’s key.

Next is Aave Arc. This is their venture into institutional finance. They have already partnered with 30 different institutions to provide access to private pools of DeFi liquidity. They have partnered with Fireblocks to whitelist these institutions. That’s big too.

Fireblocks is a huge company. They’re valued at $8 billion now. They have quadrupled that valuation since the middle of 2021. In a rough market they were able to quadruple valuation, which is a good thing to see. They have more than $2 trillion in custody.

They are a huge custody provider for crypto in general and it’s good to see Aave partner with them. Unfortunately, not much has been released about these companies so far. The fact Aave has an institutional arm now and are providing these services to institutions is huge because if you can put your money in Aave and get 1.5% to 2% on USDC versus 0.01% you get in a bank, obviously that would be attractive to any company that has a lot of cash.

These software companies, growth stocks and those types of companies have a lot of cash on hand usually because that’s where all the funding is going. With Aave, they would be able to put that cash to better use, earning a couple percent plus I believe they earn Aave tokens on top of that.

That will create demand for the coin. Then they would have an interest in seeing Aave do well, so they might buy even more. I think Aave Arc is probably one of the best things Aave has to offer. Unfortunately, they haven’t given much detail into who these companies are, but just seeing them do this is a good sign.

Next their real world asset market. They are partnered with Centrifuge, which I think I have gone over on two other IanCasts. They just seem to come up more and more when I’m looking at stuff. Centrifuge provides a way for people to invest in real world assets and use them for lending and borrowing.

They partnered with Aave to do this. There’s already almost $19 million in this market, which is pretty solid considering this launched a couple months ago. This hasn’t been around long at all. They have already partnered with these companies. Most of these are fintech, but you can also lend and borrow silver, but it’s on the blockchain.

Real world asset NFTs I think are going to be a really big thing going forward. Centrifuge is the leader as far as I can tell in making that happen and putting them on chain and making them available for institutions to lend and borrow. Aave is now partnered with them.

I think we are at the cutting edge for innovation and adoption of real world asset markets on the blockchain. We haven’t seen parabolic growth yet, but I think 2022 and 2023 are going to be huge years for this. Obviously if people are using Aave to execute these transactions, that would drive even more adoption for the platform in general.

Next, just some future things Aave is working on right now that are super bullish. First, the mobile wallet. This mentions V3, which already happened, but the V3 deployment on StarkNet. It’s one of the products Starkware which has a $6 billion valuation.

It’s one of the most anticipated ETH scaling solution out there. They already have a bunch of apps. Aave is set to launch on them as well. The mobile wallet I think could be a big deal because so many people use their phones for financial transactions in general.

You have Venmo, CashApp, even Coinbase and Robinhood. As far as I know, Thorchain is the only one with a mobile app, at least the big projects. They do kind of lending and borrowing things, but not at the scale of Aave. Aave would be the first of its class to have a mobile app.

I think that would be a huge deal. I think it would catch on quickly and open the door to more people using their app. It’s one thing to have your product available on desktop, but it’s another to have an app available on your phone. That would drive usage and adoption quite a bit.

They announced this on New Year’s Day this year. I haven’t seen any updates on it yet, but it’s in the works and I think it’s going to be a huge thing going forward for Aave.

Last, this is just some more speculative stuff, future projects and things Aave has in the works. It has a list here. Aave powered social media protocol, Aave debit card and a web 3 fashion line. The founder of Aave announced they are working on social media.

I have seen some things here and there in crypto of people wanting to start a decentralized social media platform. If Aave does this or the founder of Aave does this on the side, they are going to have brand power already because they are going to be associated with Aave.

I am sure Aave would be integrated into that platform as well, so that’s something to keep an eye out for. An Aave debt card was teased back in 2020 or early 2021. I haven’t seen anything about it recently, but that doesn’t mean it’s not happening.

I know there have been governance proposals to boost the speed at which this is happening. So there is attention on creating an Aave debt card. Obviously this could be huge for Aave. You could have money in the platform, you could be earning on it and you could also have it available to spend.

Rather than spending money on your bank account you could also have it somewhere where you earn interest and earn Aave tokens on top of that and have money to spend on a debit card, which would be really convenient. The Web3 fashion line I am not familiar with.

It’s something to create brand awareness and overall meme power really. That’s more valuable than I think people realize. That could be big too. If they get their name out there and get more attention from younger people, that could be extremely beneficial to their platform.

Just because of the things they offer and the unique nature of them and the overall disruptive nature when you compare it to the financial industry. That’s all for Aave.

 

Your Crypto Questions Here!

Lastly, I wanted to get into some of the questions I got from the last video. First from RL.

“Using your logic of 119 million of ETH and 20 million max of BTC there’s an argument of 5.6 ETH for each BTC. My question to you: Do you see the prices of ETH catching up to BTC and coming closer to that 5.6 ratio in the future?”

Most likely. I would say ETH with DeFi, NFTs and whatever else they come up with in the future is going to have a bigger network effect than BTC overall. How the prices interact I’m not quite sure. They are really different things. BTC obviously is the most secure and uncensorable payment network in the world.

It happens to use its own native currency, which is BTC, rather than traditional fiat currency. ETH is basically the core of the Ethereum network. Their token is the core of that network, which is used to power all sorts of DeFi apps, NFT apps, retail, art things and real world assets.

I’m not sure how ETH will do against BTC going forward. I think they are both going to be great investments. I think ETH probably has a little more room to run looking at the big picture. I’m not sure about day to day. I think ETH has more network effect whereas BTC has the characteristics of an ideal reserve asset.

Obviously it’s being used to transfer money for remittances. It’s even being spent in some places. So there are some additional things that could boost adoption for BTC too. Will ETH be worth more than BTC in terms of the coin price in the future? I would say it could happen.

I am not super confident in that happening anytime soon though. This one is from Anthony.

“Can you touch on ApeCoin? I am up 222%.”

That is cool to hear. I am not too familiar with ApeCoin in general. I know it was released to the BoredApes community. BoredApes are on fire. I think the floor price is $430,000 right now. That’s crazy. That’s obviously driving some of the momentum for the ApeCoin.

I would say NFTs are more volatile than alt coins from what I have experienced. ApeCoin is at the mercy of that. It could go up a lot more from here; it could also go down very quickly. It’s an alt coin, which is volatile. I would say it’s probably going to be more volatile than the average alt coin.

Congrats on the gains. That’s awesome. I would say the future for that could go either way. Next question is from Renee.

“From which exchange is Pocket Network available to purchase?”

That’s a good question. Unfortunately it’s not easy to get right now. I had it on Gate.io which is an exchange that is no longer available to U.S. users. They are closing down all U.S. accounts on Saturday. Obviously I had to get it off that. I know it’s available on Huobi. I’m not sure if that’s in the U.S.

I’ll need to look more into that. I have not gotten back into Pocket Network. Huobi if you are in the U.S. might be your best bet. This one is from Doug.

“I am enjoying your new format as it’s chock full of information. Thanks for the new style. I would be interested in hearing what you know and discover about Theta and the Theta network. I hope you can cover it in an update soon.

With the metaverse growing so fast, as well as streaming becoming so much bigger than ever thought, it appears streaming assistance will be essential in helping to enable this growth.”

Yes, Theta is one of the projects that I used to know a lot more about. I haven’t been keeping up with it as much. Theta and Livepeer are both working on streaming and broadcasting in a decentralized way. Both have huge prospects. I will probably cover both in future videos.

They are projects that have caught my interest. I appreciate you bringing it up. It’s always cool to see subscribers and viewers bring up different alt coins. It gives me an idea of what people are looking at and what is getting attention. Leave a comment if you have any other questions about alt coins.

I will get to those in future updates. That it for me this week. Thank you for watching. Happy Friday. Have a great weekend and I will see you again next week.

Regards,

Ian Dyer

Ian Dyer

Editor, Crypto Flash Trader

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