welcome to money is freedom
a podcast
exploring how finance and freedom connect in our lives
created from thoughtful research
and narrated by Notebook LM AI
this series brings you clear
meaningful insights into finance and beyond
in episode 21
we dive into why Ethereum is shaping up to be 2020
Five's biggest contrarian bet in the crypto world
from its surging institutional adoption
and
groundbreaking developments in decentralized finance
to favorable macro economic trends
and its deflationary toconomics
ethereum story goes far beyond the hype
join us as we explore
the key reasons why this undervalued
blockchain powerhouse could outshine its competitors
and redefine the future of cryptocurrency
okay so
you send us a pretty interesting collection
of articles and analysis
all about Ethereum yeah
and it seems like you're trying to kind of
figure out if all the hype
is it real right
is Ethereum really gonna be uh
a big player in 2025 or is it all just
you know speculation and hype
mm hmm um
the one that I thought was really interesting
was this article from chaos of money
oh yeah um
called
why Ethereum is the biggest contrarian bet in crypto
for 2025 okay
so they're making the case for it as a contrarian bet
which means
it's kind of going against what a lot of people think
right um
and they point to things like
increasing institutional adoption
real world applications like stable coins
uh huh um
and also you know
maybe a favorable economic environment yeah
um
what jumps out at you from all this material when you
when you take a look at it
what's interesting that you're looking at
Ethereum is not just a potential price increase right
but also its role in the future of financing technology
yeah and this article from chaos of money
points to a lot of those things that
that you mentioned institutional adoption
those real world applications yeah
um and that economic environment yeah
so what are your initial thoughts on those factors
well let's dive right in
one of the most interesting things
I think is this whole thing about Ethereum etfs
sure you know
you probably seen a lot of news about them taking off
but back in November did you know that Ethereum
etfs actually pulled in more investment than Bitcoin
etfs wow
for the first time ever
so people poured almost $333 million into Ethereum etfs
interesting
and Bitcoin was kind of left in the dust there
wow what do you make of that kind of shift
well I think the emergence of Ethereum
etfs is a significant development yeah
that shows that um
ethereum is really kind of breaking into the mainstream
right and
it's a huge sign that institutional investors
are starting to see Ethereum as more than just a
a speculative asset it signals that they're recognizing
the potential of its underlying technology and
and its potential to disrupt traditional finance
yeah that's really interesting yeah
why do you think
institutions are choosing Ethereum over other cryptos
like what do they see that
maybe the average investor isn't seeing
while institutions conduct extensive research
in due diligence before making investment decisions
right and the case of Ethereum
they're recognizing several key advantages yeah
um first
ethereum has a robust and growing ecosystem of
what we call DAPs
decentralized applications yeah
spanning various sectors from finance to gaming
to supply chain management okay
and this diverse ecosystem
demonstrates the platform's versatility and potential
for real world adoption so it's not just about
you know the price going up
it's about it's not just about speculation right
it's about utility yeah
it's about what you can do with it okay
second
Ethereum has a large and active developer community
uh huh
constantly innovating and building new applications
yeah and this ensures that
the platform remains
at the forefront of blockchain technology
and third
Ethereum has a strong track record of security
in resilience yeah
having withstood the test of time
mmm hmm and various market cycles right
so this makes it attractive
right for risk diverse institutional investors yeah
so it sounds like they're really looking at its utility
yeah and its potential for
for growth absolutely okay
um and I think
you know the article also
really emphasizes that
this isn't just about speculation
it's about institutions seeing it as a technology play
exactly as much as an investment
can you maybe expand on that a little bit
sure what do you mean by that
so they're exploring its use
in areas like decentralized finance
or defi tokenization of real world assets
and even supply chain management
right and these have the potential to revolutionize
industries and create new business models
for example tokenizing real estate on Ethereum
could make buying and selling property
right faster
more efficient and accessible
yeah to a wider range of investors
so
what are your thoughts on those potential applications
it's fascinating to think about like
how it could really change
it really could how we interact with assets and value
yeah but one thing
I know that you've mentioned to me before is like
this whole issue of high network fees on Ethereum
yeah this is kind of a common criticism that we hear
right and I'm wondering
you know are these institutions concerned about that
yeah is this something that could kind of hinder
Ethereum's growth it's a valid concern
yeah um
and it results from its popularity
yeah and the limited capacity of its blockchain
to process transactions
so it's kind of a victim of its own success in a way
you could say that yeah
um however
there are solutions in development to address this
layer 2 scaling solutions
yeah like optimism and arbitram
these are being implemented to increase transaction
through put
so it's almost like creating like an express lane
exact on the highway yeah
additionally Ethereum's transition to a proof of state
consensus mechanism right
is expected to improve its efficiency in scalability
okay so high fees are a current challenge
right but they're not an insurmountable obstacle
right and the Ethereum
community is actively working to solve them
that makes sense it sounds like
they are evolving to meet those challenges
they are
the article also points out that it already has a
really thriving ecosystem
right with a huge number of projects being built on it
it does and in fact
it hosts 75% of all defi protocols
wow
that's a pretty dominant position
what's your take on that
I think the sheer volume of activity
happening on Ethereum right
is a testament to the network's strength
and the trust it is garnered
think about it yeah
we've got uniswap makerdao
yeah big players all built on Ethereum right
handling billions of dollars in transactions every day
wow this level of activity attracts developers
innovators and users
yeah creating a cycle of growth
yeah so it's very exciting
so we've talked about institutional adoption
yes that growing ecosystem
the potential for real world applications
but what about the real world impact
it's already having yeah
where do you see
the most significant evidence of its practical use
well
when we look at the tangible impact Ethereum is having
two areas immediately come to mind okay
stable coins and the tokenization of real world assets
okay have you been following those areas much
I've been reading a lot about stablecoins lately
okay especially
you know this idea
that they have the potential to really disrupt
traditional payment systems
yeah and you shared some research with me from a 16 z
I did that really kind of highlights their advantages
yeah faster transactions
lower fees and global reach right
those are some pretty compelling benefits
especially in today's world
what are your thoughts on that
I think that a sixteens research yeah
paints a very compelling picture of a future
right
where stable coins built on networks like Ethereum
become the preferred way to move money
around the globe wow
you know yeah
imagine being able to send money to anyone
anywhere in the world right
almost instantly right
for a fraction of the cost yeah
of traditional methods yeah
it's a game changer for remittances
cross border payments and
anyone who needs to send money quickly and affordably
absolutely right
and they actually included a chart yeah
that compares stable coins to traditional methods
like credit cards wire transfers
and ACH transfers and the difference is striking yeah
double coins just really outperform
they do the traditional options on speed
cost and accessibility yes
and they have this great line
oh yeah
in the research where they say
like
water payments flow to the path of least resistance
mmm hmm what do you think they mean by that
well I think that quote yeah
perfectly captures the essence of stablecoin disruption
right just as water naturally seeks the easiest path
people are gonna gravitate towards payment solutions
yeah that offer the most convenience
efficiency and value right
and right now yeah
stable coins particularly those built on Ethereum
represent that path of least resistance
yeah it's a powerful idea
it is the article also mentions that Ethereum based
stable coin transactions surpassed $8 trillion in 2024
that's incredible that's a mind blowing figure
it really makes you realize
how significant this is becoming
yeah and it's a testament to the growing adoption
yeah utility of stable coins right
you know people are
increasingly using them for everyday transactions right
remittances and even as a store of value
yeah in countries with unstable currencies right
so this surgeon
usage really strengthens
Ethereum's position as that leading platform
yeah for real world blockchain applications
okay let's shift gears a little bit
and talk about tokenization
sure
this is another area where it's making a big impact
but it's a little more complex to get your head around
can you maybe break it down for us
and explain why it matters
so think of tokenization
as creating digital representations
of real world assets on the blockchain
things like stocks bonds
real estate even artwork
right can be tokenized right
and this unlocks a whole new level of liquidity
okay and accessibility
okay
so instead of owning a physical piece of real estate
right you could own a token
yes that represents a portion of that property exactly
okay instead of going through a lengthy
and expensive process to buy
or sell right
you can trade those tokens right
quickly and efficiently wow
on a decentralized exchange
that's really interesting
yeah it seems like it could really democratize access
it really could
to investments that were previously only available to
like the wealthy absolutely
are we seeing real world examples of this happening
yes we are already
JP Morgan one of the largest banks in the world
issued its first tokenized bond on Ethereum in 2024
wow and they specifically chose Ethereum
because of its security and scalability okay
so when a major player like JP Morgan is doing that
yes that's sending a signal
it is okay
so we've got stable coins disrupting payments right
tokenization
opening up these new investment opportunities
yeah
it sounds like a pretty bright future for Ethereum
it does but I think
we need to talk about the regulatory landscape
because governments around the world
are still figuring out how to deal with crypto extra
and that uncertainty
could be a major roadblock for adoption right
what's your take on kind of the regulatory landscape
and how it might impact Ethereum
well the regulatory landscape is constantly evolving
yeah but I think there are positive developments
that are suggesting a more favorable environment
yeah is emerging okay
particularly in the US okay
you know the recent election
right resulted in a more pro innovation stance
oh wait
from the government yep
recognizing the importance of fostering growth
in the tech sector including crypto
so kind of a less restrictive approach exactly
compared to maybe previous administration yes
there's a growing understanding
that stifling regulations
could hinder American leadership right
and no one wants to fall behind
yeah in this global tech race right
and in addition
there's growing momentum behind initiatives like fi t
21 right
which aim to provide regulatory clarity
right for the industry
I've heard a little bit about Fi t 21 yeah
but I'm not sure I totally understand what it entails
okay can you maybe give me like
the quick rundown on what that is
and why it's important fi t
21 is a legislative plan
that aims to simplify and clarify the rules okay
for the crypto industry in the US right
because right now
there's a lot of ambiguity about who oversees what
and what the rules are it's very confusing
very confusing yeah
so this makes businesses
and investors hesitant to get involved
and so F a t 21 seeks to define roles more clearly
yeah provide legal certainty and streamline the process
okay it's all about fostering responsible innovation
within a clear framework so
it's like
everybody understanding the rules of the game exactly
and how would this specifically benefit Ethereum
well as the leading platform
right for blockchain applications
ethereum stands to gain enormously
right from a more defined regulatory framework
yeah us okay
greater regulatory clarity will
attract more institutional investors
right who are seeking that stability right
it'll encourage businesses to build on Ethereum
knowing that they're operating within a clear
legal framework right
so ultimately
it could accelerate Ethereum's integration
right into mainstream financing technology
that makes sense it could be a win win
yeah for both the industry and regulators
okay let's move on
to this idea of Ethereum becoming a truly global asset
what are some of the things that are happening
that are really contributing to that
well it's becoming increasingly clear that it's appeal
extends far beyond the traditional tech hubs right
you know cities like Vancouver
are exploring the creation of crypto reserves
wow recognizing the potential of digital assets
to diversify their holdings
and hedge against inflation
wow imagine a city holding a portion of its treasury
wow in Ethereum
that's pretty forward thinking
it is yeah
and it's not just cities yeah
entire states are getting involved
States like Texas
and Florida are actively courting crypto businesses
interesting creating these favorable
regulatory environments to attract investment
okay so they recognize the economic potential
yeah and they're vying to become cryptohubs interesting
yeah and how does this global trend benefit Ethereum
specifically well
as these regions
and institutions explore blockchain technology
yeah they're looking for established platforms
right with a proven track record
a strong developer community
and robust security yeah
and Ethereum ticks all those boxes yeah
it's the established ecosystem yeah
the first mover advantage yeah
the reputation for security right
it makes it a natural choice
for governments and institutions
okay looking to embrace this technology
so this global momentum yeah
could further solidify
its position as the leading blockchain platform
it could but
you know amidst all this positivity
right there are always critics
of course
what are some of the arguments that people make
against investing in Ethereum yeah
what should we be aware of
well one common criticism is the issue of scalability
okay as more people use Ethereum
right
transaction speeds can slow down and fees can increase
right
we talked about that a little bit with the network fees
we did the pesky network fees
so that's a valid concern
especially if Ethereum
aims to become this global financial system
right because it needs to be able to handle
it does the volume yeah
so how do you counter that argument yeah
is it keeping up what's true
that it has faced these scalability challenges
but the community is actively addressing them okay
remember those layer 2 scaling solutions
we talked about yeah
optimism and arbitram right
those are helping to take some of the load off okay
the main Ethereum blockchain
yeah and they're making a real difference okay
good and Ethereum is also transitioning to that
proof of state consensus mechanism
right which is expected to improve its efficiency
in scalability okay
so these are big changes yeah
and it shows that they are committed to evolving
yeah and meeting those demands of a growing user base
yeah that's good yeah
I know another criticism
that I hear sometimes is just that
the technology itself can be complex
it can be right
and especially if you're new to all this
yeah you know yeah
it's like a whole new language
it is yeah
it is what advice would you give to someone
who's interested in Ethereum right
but feels a little overwhelmed
yeah by all the jargon
by the jargon yeah
it's natural to feel overwhelmed at first sure
um but don't let that discourage you right
there are tons of resources available
to help you understand the basics
like what well
you've got websites like Coindesk and Coin Telegraph
yeah those are recutable sources
yeah
that break it down in a way that's easy to understand
right you can also check out Ethereum's own website
full of information for beginners
yeah yeah
and I've found that joining
online communities can be really helpful too
that's a great point there are so many people on Reddit
on Twitter who are passionate about it
and are really willing to
answer questions and share their knowledge
so it's a good way to surround yourself with people
who are also learning absolutely
so it's good to
not feel like you have to figure it all out
on your own exactly
and remember there's no need to rush right
take your time learn at your own pace
yeah and just experiment with small amounts of ETH
yeah to get comfortable with the technology
that's good advice now I wanna
talk about the macroeconomic factors that could
impact Ethereum's future sure
the chaos of money article
mentioned quantitative easing
or Q E uh huh
can you remind us what that is
and why it matters in this context
so remember that whole money printer goberr
yeah meme a few years back
well quantitative easing is kind of like that okay
but in real life yeah
it's when central banks inject money into the economy
right to stimulate growth
right and often
they do this by buying assets like government bonds
right which increases the money supply right
and historically
we've seen that crypto assets like ethereum
yeah tend to do well during those periods of Q E okay
so more money in the system tends to
push asset prices higher exactly okay
but is that the only reason why Q E could be good
no kiwi can also lead to inflation
right which erodes the value of fiat currencies
like the US dollar
so people turn to assets like gold
yeah and increasingly cryptocurrencies like Ethereum
okay as a hedge against that inflation right
so Ethereum
with its limited supply and decentralized nature
yeah can be seen as a store of value right
like digital gold almost exactly
the article also
mentions something called an uninverting yield curve
ah yes
which to be honest
sounds kind of complicated a little bit
can you explain what that means
sure and why it could be good news for Ethereum
so imagine a graph that shows interest rates okay
for bonds with different maturity dates okay
that's the yield curve okay
and when it's inverted it means that short term
interest rates are higher than long term rates okay
and that's often seen as a sign of
a potential recession oh okay
an uninverting yield curve right
means that situations were reversing
and suggesting that investors are more
optimistic about the future
so a shift from fear exactly
to confidence yeah
okay and how does that relate to Ethereum
well when investors feel confident about the economy
right they're more likely to invest in risk on assets
right like stocks and yes cryptocurrencies okay
so Ethereum
could benefit from this increased risk appetite right
as investors seek those higher potential returns
so it seems like there are a lot of macro
economic factors that are kind of lining up
they are that could be favorable for Ethereum
the chaos of money article even suggests that global
central banks might resume
Q e
oh wow
in 2025 interesting
which could create even more of a tailwind
could right
yeah but we've also talked about some risks
of course and criticisms right
so taking all of that into consideration
do you think this contrarian bet idea still holds up
well it's becoming less contrarian all the time
you know when that chaos of money article was written
yeah the idea of Ethereum surpassing Bitcoin
seemed pretty bold right
but the evidence we've discussed right
you know the institutional adoption right
the real world applications
macro trends right
and even the shift in the regulatory landscape right
all point to a very bright future yeah
but you wouldn't say it's a sure thing
of course not right
there are always risks in any investment right
and crypto's no exception right
but I believe based on those fundamentals
based on that growing adoption
yeah and the overall momentum right
that Ethereum is
well positioned to continue its growth trajectory okay
but let's play devil's advocate okay
what are some potential risks
uh huh that people should be aware of yeah
what could derail Ethereum success
well I think one risk is regulatory uncertainty okay
you know governments around the world are skin
figuring out how to regulate crypto
and sudden policy changes could negatively
impact the market yeah
we talked about the positive developments in the US
right but things can change yeah
and other countries might take a more restrictive
approach so even though things are looking good now
yeah there's no guarantee it's gonna stay that way yeah
what else should people be thinking about
well another risk is competition okay
you know yeah
new blockchains are emerging all the time right
some claiming to be faster
cheaper or more scalable than Ethereum
so it's not just about what Ethereum's doing today
it's about how it continues to adapt
it is it is
we've covered a lot of ground today yeah
we have and I
think we've given our listener a good overview
of Ethereum's potential right
the challenges it faces yeah
and the factors that could influence its future
absolutely any final thoughts
I think the key takeaway yeah
is that ethereum is more than just a cryptocurrency
right it's a platform with real world applications
yeah that are changing the way we think about finance
technology and even society
wow it's still early days
but the potential is enormous yeah
whether becomes the king of crypto remains to be seen
right but I think its role as the driving force
right in this decentralized future is undeniable
I agree it's been a fascinating deep dive
yeah and I think we've all Learned a lot
I think so too so to our listener
yeah we encourage you to keep exploring the space
stay curious and never stop learning absolutely
the future of finance and technology is being written
right now and you have the opportunity to be part of it
you do it's true
there are always two sides to every story right
what are some of the arguments that people make
against investing in Ethereum
what should we be aware of yeah
what are the things that people say
you know to be cautious about
well
one common criticism is this whole issue of scalability
okay you know
as more people use Ethereum
those transaction speeds can slow down
right and the fees can increase right
we talked about that a little bit
the pesky network fees yeah
and this is a valid concern right
especially if Ethereum wants to become this global
financial system right
it needs to be able to handle it comes
that kind of volume yeah
so how do you counter that argument
yeah is it keeping up
it's true
that Ethereum has faced these scalability challenges
yeah but the community is actively addressing them
okay you know
we talked about those layer 2 scaling solutions
right like optimism and arbitram
exactly optimism and arbitram
yeah
those are really helping to take some of that load off
okay the main Ethereum blockchain
yeah and they're making a real difference
okay good
and Ethereum is also
transitioning to that proof of state
consensus mechanism right
which should improve its efficiency and scalability
okay so these are big changes
yeah and they show that Ethereum is committed
to evolving and meeting the demands
right of that growing user base
okay that makes me feel better
I know another criticism that we hear sometimes
yeah
it's just that the technology itself can be complex
it can be right
and for someone who's totally new to all of this right
it can feel pretty intimidating
it can yeah
it's like a whole new language almost
it is it is
what advice would you give to someone
who's interested in Ethereum
but feeling a little bit overwhelmed by all the jargon
well it's natural to feel overwhelmed at first
yeah but don't let that discourage you right
there are a ton of resources available to help you
understand the basics
like what what would you recommend
well
you've got websites like Coindesk and cointelograph
yeah those are reputable sources that can really
break things down right
in a way that's easy to understand yeah
you can also check out Ethereum's own website right
it's full of information for beginners right
yeah and I found that joining online
communities can be really helpful too
that's a great point you know
there are so many people on Reddit
on Twitter yeah
who are passionate about it
and are really willing to answer questions
and share their knowledge
exactly so
it's a good way to kind of
surround yourself with other people
absolutely who are also learning
and remember there's no need to rush right
take your time learn at your own pace
yeah and experiment with small amounts of ETH
yeah just to get comfortable with the technology
that's good advice uh huh
now I wanna talk about some of those
macroeconomic factors that could impact
Ethereum's future sure
the chaos of money article
specifically mentions quantitative easing
or Q E uh huh
can you remind us what that is
and why it matters in this context
remember that whole money printer
go brr yeah meme
oh yeah
for a few years back yeah
well quantitative easings
kind of like that okay
but in real life yeah
in the real world
it's when central banks inject money into the economy
right to stimulate growth
right and they often do this by buying assets
like government bonds right
which increases the money supply okay
and historically
we've seen that crypto assets like Ethereum
tend to do well right
during those periods of cue
so more money in the system
tends to push asset prices higher
exactly including crypto okay
but is that the only reason why Q E
could be good for Ethereum
no Q E can also lead to inflation
right which erodes the value of fiat currencies
like the US dollar yeah
so people often turn to assets like gold
and increasingly cryptocurrencies like Ethereum
okay as a hedge against that inflation
so it's almost like digital gold in a way
exactly yeah
the article also mentions something called an
uninverting yield curve ah yes
which to be honest sounds a little bit complicated
it's a bit of a mouthful
but it's actually not that complex okay
so imagine a graph that shows interest rates
okay for bonds with different maturity dates okay
that's the yield curve right
and when it's inverted
it means that short term interest rates are higher
than long term rates okay
and that's often seen as a sign of a potential
recession coming
oh okay
an uninverting yield curve
just means that situation is reversing okay
suggesting that investors
are more optimistic about the future okay
so it's kind of a shift from fear to confidence
exactly okay yeah
how does that relate to Ethereum
well when investors feel confident about the economy
right
they're more likely to invest in what we call risk on
assets okay
things like stocks yeah
and yes cryptocurrencies
okay so
Ethereum
could benefit from this increased risk appetite
right as investors seek those higher potential returns
interesting yeah
so it seems like there are a lot of macro
economic factors that are kind of lining up yeah
that could be favorable for Ethereum
yeah the chaos of money article
even suggest that global central banks might resume Q E
in 2025 wow
which would create even more of a tailwind for crypto
it could it really could
but we've also talked about some risks
oh of course
and criticisms right
so taking all of that into consideration yeah
do you think this contrarian bet idea still holds up
you know what
it's becoming less contrarian all the time
right when that chaos of money article was written yeah
the idea of Ethereum surpassing Bitcoin
seemed pretty bold right
it seemed far out there it did
it did yeah
but you know
the evidence we've discussed today yeah
the institutional adoption
the real world applications right
the macro trends the shift in the regulatory landscape
right all point to a very bright future for Ethereum
okay
now I wouldn't say it's a sure thing
of course not
there are always risks with any investment
and crypto's no exception right
but I believe based on those fundamentals
based on that growing adoption
and that overall momentum
I think
Ethereum is well positioned to continue its growth
trajectory okay
but let's play devil's advocate for a minute okay
what are some of those risks yeah
that people should be aware of
what are the things that could potentially
derail Ethereum success
I think one risk is that regulatory uncertainty okay
you know governments around the world are still
figuring out how to regulate crypto right
and sudden policy changes
could have a negative impact on the market right
we've talked about the positive developments in the US
right but things can change right
and other countries might take a more restrictive
approach so even though things are looking good now
yeah doesn't mean that that's gonna continue exactly
what else should people be thinking about
another risk is competition okay
you know new blockchains are merging all the time right
there's always something new
there is
so it's not just about what Ethereum's doing today
right it's about how it continues to adapt and evolve
it is it is
we've covered a lot of ground today
we have and I think we've given our listener
a pretty good overview yeah
of Ethereum's potential the challenges that it faces
right and the factors that could influence its future
right any final thoughts before we wrap up
I think the key takeaway here
yeah is that Ethereum is more than just cryptocurrency
right it's a platform with real world applications
yeah that are changing the way we think about finance
technology and even society wow
that's a big statement it is
it's still early days but the potential is enormous
it is whether it becomes the king of crypto
that remains to be seen right
but I think its role as a driving force in this
decentralized future is undeniable
I agree well
this has been a fascinating deep dive
it has I think we've all Learned a lot
me too to our listener
we encourage you to keep exploring this space yes
stay curious never stop learning
absolutely the future of finance
and technology is being written right now
and you have the opportunity to be a part of it
you do it's true
there are always two sides to every story right
what are some of the arguments that people make
against investing in Ethereum
what should we be aware of
yeah what are the things that people say
you know to be cautious about
well
one common criticism is this whole issue of scalability
okay you know
as more people use Ethereum
those transaction speeds can slow down
right and the fees can increase right
we talked about that a little bit
the pesky network fees yeah
and this is a valid concern right
especially if
Ethereum wants to become this global financial system
right it needs to be able to handle
it does that kind of volume yeah
so how do you counter that argument yeah
keeping up it's true that
Ethereum has faced these scalability challenges
yeah but the community is actively addressing them okay
you know we talked about those layer 2 scaling solution
why like optimism and arbitrum
exactly optimism and arbitrum
yeah
those are really helping to take some of that load off
okay the main Ethereum blockchain
yeah and they're making a real difference
okay good
and
Ethereum is also transitioning to that proof of stake
consensus mechanism
which should improve its efficiency and scalability
okay so these are big changes
yeah
and they show that Ethereum is committed to evolving
and meeting the demands right
of that growing user base okay
that makes me feel better
I know another criticism that we hear sometimes yeah
it's just that the technology itself can be complex
it can be right
and for someone who's totally new to all of this right
it can feel pretty intimidating
it can yeah
it's like a whole new language almost
it is it is
what advice would you give to someone
who's interested in Ethereum
uh huh
but feeling a little bit overwhelmed by all the jargon
well it's natural to feel overwhelmed at first right
but don't let that discourage you right
there are a ton of resources available
to help you understand the basics
like what what would you recommend
well you've got websites like Coindesk
Coin Telegraph yeah
those are reputable sources
that can really break things down
right in a way
that's easy to understand
you can also check out Ethereum's own website right
it's full of information for beginners
right yeah
and I found that joining online
communities can be really helpful too
that's a great point you know
there's so many people on Reddit Twitter
yep who are passionate about it
and are really willing to answer questions
and share their knowledge exactly
so it's a good way to
kind of surround yourself with other people
who are also learning and remember
there's no need to rush right
take your time learn at your own pace
yeah and experiment with small amounts of ETH
yeah just to get comfortable with the technology
that's good advice now
I wanna talk about some of those macro
economic factors that could impact Ethereum's future
sure the chaos of money article specifically mentions
quantitative easing or Q E
can you remind us what that is
yeah and why it matters in this context
remember that whole money printer go BRR yeah yeah
yeah a few years back
yeah well
quantitative easings kind of like that
okay but in real life
yeah in the real world
it's when central banks inject money into the economy
right to stimulate growth
right and they often do this by buying assets
like government bonds right
increases the money supply
okay and historically
we've seen that crypto assets
like Ethereum tend to do well
right during those periods of Q E
so more money in the system tends
to push asset prices higher
exactly including crypto right
okay yeah
but is that the only reason why Q E
could be good for Ethereum
no kiwi can also lead to inflation
right which erodes the value of fiat currencies
like the US dollar yeah
so people often turn to assets like gold
and increasingly cryptocurrencies like Ethereum
okay as a hedge against that inflation
so it's almost like digital gold in a way
exactly yeah
the article also
mentions something called an uninverting yield curve
ah yes
which to be honest sounds a little bit complicated
it's a bit of a mouthful
but it's actually not that complex okay
so imagine a graph that shows interest rates
okay for bonds with different maturity dates okay
that's the yield curve right
and when it's inverted
it means that short term interest rates are higher
okay than long term rates okay
and
that's often seen as a sign of a potential recession
coming okay
an uninverting yield curve
okay just means that that situation is reversing okay
suggesting that investors
are more optimistic about the future okay
so it's kind of a shift from fear to confidence
exactly okay
yeah how does that relate to Ethereum
well when investors feel confident about the economy
right
they're more likely to invest in what we call risk on
assets okay
things like stocks yeah
and yes cryptocurrencies
okay so
Ethereum could benefit from this increased risk
appetite right
as investors seek those higher potential returns
interesting yeah
so it seems like there are a lot of macro
economic factors that are kind of lining up
lining up yeah
that could be favorable for Ethereum yeah
the chaos of money article even suggests
that global central banks
might resume Q E
in 2025 wow
which would create even more of a tailwind for crypto
it could it really could
but we've also talked about some risks
of course and criticism right
so taking all that into consideration yeah
do you think this contrarian bet idea still holds up
you know what
it's becoming less contrarian all the time right
when that chaos of money article was written yeah
the idea of Ethereum surpassing Bitcoin
seemed pretty bold right
seemed far out there it did
it did yeah
but you know the evidence we've discussed today yeah
the institutional adoption
the real world applications right
the macro trends the shift in the regulatory landscape
right all point to a very bright future for Ethereum
okay now
I wouldn't say it's a sure thing
of course not
there are always risks with any investment right
and crypto is no exception
but I believe based on those fundamentals yeah
based on that growing adoption
and that overall momentum
I think Ethereum is well positioned
to continue its growth trajectory
okay but let's play devil's advocate for a minute okay
what are some of those risks yeah
people should be aware of right
what are the things that
could potentially derail Ethereum success
I think one risk is that regulatory uncertainty okay
you know governments around the world are still
figuring out how to regulate crypto right
and sudden policy changes
could have a negative impact on the market right
we've talked about the positive developments in the US
right but things can change right
and other countries might take a more restrictive
approach so even though things are looking good now
yeah it doesn't mean that that's gonna continue exactly
what else should people be thinking about
another risk is competition okay
you know new blockchains are emerging all the time
right there's always something new
there is
so it's not just about what Ethereum's doing today
right it's about how it continues to adapt and evolve
it is it is
we've covered a lot of ground today
we have and I think we've given our listener a
pretty good overview yeah
of Ethereum's potential uh huh
the challenges that it faces
and the factors that could influence its future right
any final thoughts before we wrap up
I think the key takeaway here
is that Ethereum is more than just a cryptocurrency
right it's a platform with real world applications
yeah that are changing the way we think about finance
technology and even society wow
that's a big statement it is
it's still early days but the potential is enormous
it is whether it becomes the king of crypto
that remains to be seen right
but I think
its role as a driving force in this decentralized
future is undeniable
I agree well
this has been a fascinating deep dive
it has I think we've all Learned a lot
me too to our listener
we encourage you to keep exploring this space
stay curious never stop learning
the future of finance and technology is being written
right now uh huh
and you have the opportunity to be a part of it you too