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explore for yourself happy diving happy diving everyone

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welcome to money is freedom

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a podcast

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exploring how finance and freedom connect in our lives

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created from thoughtful research

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and narrated by Notebook LM AI

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this series brings you clear

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meaningful insights into finance and beyond

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welcome to episode 24 Today

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we're stepping into the future

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and unpacking crypto's biggest predictions for 2025

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drawing insights from bit wise

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Coinbase and Vanek

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this episode brings you a comprehensive summary

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of the trends and forecasts

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shaping the next wave of the crypto revolution

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let's dive in

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okay so are you ready to take a trip into the future

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finance with me always up for a good adventure

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I uh

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I brought my scuba gear are you ready to dive in

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let's do it alright

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so today we are going deep into these reports

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one from Bit Wise and one from Coinbase

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and they're both painting this

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really interesting picture

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of what crypto could look like in 2025

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and beyond yeah

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and I think what's so fascinating about these

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two reports is

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they both agree on this overall trajectory

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that crypto is going mainstream

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but they kind of highlight different aspects by

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at the each of their own angle

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exactly so

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you can kind of think of bit wise as like

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your investment guide

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so they're looking at bitcoin prices

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they're looking at uh

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what's happening with etfs

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and what's happening with government

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adoption of crypto

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whereas Coinbase is taking this broader market view

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got it and they're looking at things like stable coins

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or looking at tokenization

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they're diving deep into the world of layer twos

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oh yeah those layer 2 are getting a lot of buzz

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and they even go into this really mind blowing space

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where crypto and AI are starting to converge

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okay so no matter where you are in your crypto journey

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whether you're just dipping your toes in

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or you're already a seasoned investor

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this deep dive is gonna give you some serious

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food for thought definitely

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and I think one of the

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big headlines that jumps out from both reports

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is this prediction that Bitcoin

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Ethereum and Salona are all gonna hit new

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all time highs in 2025 okay

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so those are the three to watch

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especially Bitcoin okay

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what are they saying about bitcoin

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bit wise is particularly bullish on Bitcoin

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they're predicting it could reach $200,000

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or even 500,000 $500,000

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that's a big jump

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what makes them think Bitcoin has that

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kind of firepower well

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few things first off

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you gotta remember bitcoin has a limited supply

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there will only ever be 21 million bitcoins right

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so as more people in institutions wanna buy it

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that scarcity drives the price up

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symbol supply and demand economics

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1:00 0 one exactly

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and then bitwise is also expecting to see a surge in

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what they call ETF flows

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so that means

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more folks will be investing in Bitcoin

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through exchange traded funds

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more demand limited supply recipe for higher prices

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and there's another factor that could

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really boost the price

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the Bitcoin having event which is coming up soon okay

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remind me about having what is that all about

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so basically every four years or so

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the rate at which new bitcoins are created

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gets cut in half okay

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so it's like slowing down the printing press

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and this has historically

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LED to some pretty

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significant price increases in the past interesting

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so less Bitcoin coming into the market

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even more scarcity exactly

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and on top of all that bit wise

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also thinks that governments might start buying bitcoin

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governments buying bitcoin

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now that's a new one

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they even predict that the US government

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could establish a strategic bitcoin reserve

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and we're talking 1 million bitcoins

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whoa hold on

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the US government buying bitcoin

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that's a massive move

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what kind of impact would that have on the market

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it would be huge I mean

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first off the sheer size of that purchase would send

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shockwaves through the market

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probably push the price way up

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but it also sends a signal that

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Bitcoin is being taken seriously

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as a global asset you know right

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it's almost like a seal of approval

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almost like

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countries are gonna start competing to amass their own

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bitcoin reserves it's definitely a possibility

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this bitcoin arms race

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it's like a real life game of monopoly

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but instead of hotels and boardwalk

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it's all about digital gold

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it's fascinating to think about

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but let's bring it back down to earth for a second

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and focus on something else

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that can drive those bitcoin prices up

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okay etfs

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etfs remember those Bitcoin etfs that launched in 2024

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yeah the ones that set all those records exactly

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well bit wise is predicting

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even more money will flow into those etfs in 2025

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but didn't everybody who wanted in on that action

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already buy in I mean

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it was such a huge launch

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not even close

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we haven't seen the big players enter the arena yet

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oh you mean like the Wall Street giants

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exactly the Morgan Stanleys

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the Merrill inches of the world

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they've been holding their wealth managers back so far

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but bitwise thinks that dam is about to break

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okay so break it down for me

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what is this ETF surge mean for the average investor

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why should I care well

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etfs make it so much easier for people to invest in

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Bitcoin without having to deal with

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all the technical complexities okay

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you know setting up a crypto wallet

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worrying about security okay

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it's like

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buying a share of a company that holds bitcoin instead

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so it's like a more user friendly onramp to Bitcoin

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it exactly

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and Coinbase even suggest that a feature called

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in kind creation and redemption

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could make etfs even more attractive

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in kind creation and redemption

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okay you lost me there

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what is that all about so

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it sounds complicated but it's actually pretty simple

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imagine instead of buying and selling bitcoin for cash

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every time somebody buys or sells an ETF share right

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they could use bitcoin directly

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so instead of exchanging your dollars for Bitcoin

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to buy into the ETF

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you could simply exchange your bitcoin for ETF shares

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and vice versa so less friction

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faster transactions and potentially lower costs

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exactly okay

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so Coinbase is making a big bet on etfs

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but they're also

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making some bold predictions about their own future

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aren't they yeah

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they actually think that Coinbase could surpass Charles

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Schwab

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to become the most valuable brokerage in the world

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wow that's a pretty ambitious goal

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their stock could go above $700 per share

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that's a serious jump

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what makes them think they can pull that off

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well

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remember how we talked about crypto going mainstream

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yeah

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Coinbase is betting that they'll be the go to platform

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for all those new investors

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and they've already got this massive user base

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they do

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and they're constantly expanding their offerings

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so it's not totally out of the realm of possibility

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okay so Coinbase is feeling pretty confident

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and speaking of confidence

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bit wise is predicting

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a whole wave of other crypto companies

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going public in 2025 yeah

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they mention Kraken Anchorage

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and Chain Analysis as some of the strong contenders

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wow so

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for anyone who

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maybe missed out on those early bitcoin gains

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this could be their chance to get in

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on the ground floor potentially

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but remember ipos are always risky right

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do your research

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understand the company and the market before investing

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okay solid advice

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let's move on to something that both reports agree

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is about to explode

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stable coins stable coins

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so I know

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they're supposed to be less

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volatile than other cryptos

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but help me understand

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how they fit into this whole picture

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so stable coins are designed to maintain a stable value

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they're usually pegged to a fiat currency

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like the US dollar right

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and this makes them ideal for everyday transactions

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so they have the potential to really

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disrupt the whole world of payments

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speaking of everyday transactions

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I was just reading that

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stablecoins have already settled

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trillions of dollars this year

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yeah when we're talking almost as much as visa

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it's incredible how quickly they've grown

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yeah it's moving way faster than I realized definitely

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and both reports agree that stablecoins are poised

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for even more massive growth in the coming years

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but Coinbase goes a little bit deeper

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they actually examine different types of stable coins

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okay and how they could

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potentially disrupt traditional payment systems

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so break it down for me

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what types of stable coins are out there

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and how could they change the way we pay for things

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so the most common types are centralized stable coins

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like tether and circles USDC

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which are basically backed by reserves of fiat currency

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held by a central entity okay

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so they offer the advantage of being relatively stable

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and liquid

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but they're also subject to the risks associated with

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you know centralized control right

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makes sense so

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what are the alternatives

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if I don't wanna centralize stable coin

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well there are also decentralized stablecoins like Dai

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which are backed by a basket of cryptocurrencies

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held in a spark contract okay

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these stablecoins are more resistant to censorship

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and manipulation

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but they can be a little bit more volatile

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and complex to manage oh

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so it's a trade off it is

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and then Coinbase also thinks that eventually

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we might have a system with many smaller

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interoperable stablecoins

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okay so

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think of it like different banks

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issuing their own digital dollars

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but they're all seamlessly interchangeable usually

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so more like a network of stablecoins

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exactly and this could create a more decentralized

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and resilient stable coin ecosystem

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okay so

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that's a pretty

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radical shift from how we think about money today

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it is and it just shows how much

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potential there is for stable coins to change the game

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okay speaking of changing the game

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let's talk about tokenized real world assets

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no yeah

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this concept just blows my mind

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you know imagine owning a fraction of a building

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or a piece of art through a token on a blockchain

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hmm that means almost hard to wrap my head around it

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it's definitely

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one of the most exciting areas in crypto

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right now

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and both reports predict huge growth in this sector

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but Coinbase actually takes it a step further

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00:09:10,800 --> 00:09:12,400
and they show us what's already happening right

281
00:09:12,400 --> 00:09:14,966
they mention tokenize US Treasuries exactly

282
00:09:14,966 --> 00:09:17,166
they're already being traded wow

283
00:09:17,166 --> 00:09:19,566
and big players like Blackrock are getting involved

284
00:09:19,566 --> 00:09:22,133
they are this is not just some futuristic idea

285
00:09:22,133 --> 00:09:23,500
it's happening right now okay

286
00:09:23,500 --> 00:09:24,933
so help me understand the hype

287
00:09:24,933 --> 00:09:26,466
what's so exciting about this whole

288
00:09:26,466 --> 00:09:29,666
tokenized asset thing imagine a world where you can

289
00:09:29,800 --> 00:09:31,900
buy and sell fractions of real estate

290
00:09:31,900 --> 00:09:34,100
finer or private company stock

291
00:09:34,100 --> 00:09:36,766
with the same ease as trading stocks today

292
00:09:36,766 --> 00:09:37,500
okay yeah

293
00:09:37,500 --> 00:09:39,933
I see the appeal that's the promise of tokenization

294
00:09:39,933 --> 00:09:42,966
right it can make investing in these alternative assets

295
00:09:42,966 --> 00:09:45,666
more accessible more liquid and more efficient

296
00:09:45,700 --> 00:09:46,933
so it's a win for investors

297
00:09:46,933 --> 00:09:48,066
but what about the companies

298
00:09:48,066 --> 00:09:50,266
or individuals who are actually issuing these tokens

299
00:09:50,266 --> 00:09:51,500
what's in it for them well

300
00:09:51,500 --> 00:09:54,266
tokenization can help them raise capital more easily

301
00:09:54,266 --> 00:09:57,833
and tap into a wider pool of investors right

302
00:09:57,866 --> 00:09:59,966
it can also streamline the management

303
00:09:59,966 --> 00:10:02,000
and transfer of these assets

304
00:10:02,000 --> 00:10:03,500
you know less paperwork

305
00:10:03,500 --> 00:10:04,866
lower administrative costs

306
00:10:04,866 --> 00:10:07,066
so it's a win win potentially

307
00:10:07,100 --> 00:10:08,866
but there are definitely challenges that need to be

308
00:10:08,866 --> 00:10:11,366
addressed particularly when it comes to regulation

309
00:10:11,366 --> 00:10:12,166
right you know

310
00:10:12,166 --> 00:10:14,600
how do you ensure compliance with securities laws

311
00:10:14,600 --> 00:10:18,133
how do you protect investors in this new digital world

312
00:10:18,133 --> 00:10:19,000
that makes sense

313
00:10:19,000 --> 00:10:22,533
Coinbase also points out the importance of security and

314
00:10:22,533 --> 00:10:25,966
you know the need for really robust infrastructure

315
00:10:25,966 --> 00:10:27,533
to support all of this okay

316
00:10:27,533 --> 00:10:29,166
those are some big hurdles to clear

317
00:10:29,266 --> 00:10:29,866
but it seems like

318
00:10:29,866 --> 00:10:33,300
the potential benefits of tokenization are so massive

319
00:10:33,333 --> 00:10:34,900
the people are willing to put in the work

320
00:10:34,933 --> 00:10:35,800
absolutely I think

321
00:10:35,800 --> 00:10:38,300
it could fundamentally change the way we think about

322
00:10:38,300 --> 00:10:39,966
ownership and investment okay

323
00:10:39,966 --> 00:10:40,733
before we move on

324
00:10:40,733 --> 00:10:43,966
let's address the elephant in the room regulation

325
00:10:43,966 --> 00:10:45,466
everybody's talking about it

326
00:10:45,466 --> 00:10:48,366
both reports acknowledge the uncertainty

327
00:10:48,400 --> 00:10:51,300
but I'm curious to hear coinbases take on this

328
00:10:51,400 --> 00:10:51,933
specific

329
00:10:51,933 --> 00:10:54,333
developments that are happening around the world yeah

330
00:10:54,333 --> 00:10:56,800
they actually give a really good overview of the global

331
00:10:56,800 --> 00:10:58,966
regulatory landscape and in the US

332
00:10:58,966 --> 00:11:00,900
things are actually looking pretty good right now

333
00:11:00,900 --> 00:11:01,966
oh that's good to hear

334
00:11:01,966 --> 00:11:03,700
the political winds have shifted

335
00:11:03,700 --> 00:11:06,366
and we're actually seeing some bipartisan support

336
00:11:06,366 --> 00:11:08,600
for clearer crypto regulations

337
00:11:08,600 --> 00:11:09,766
so is the US

338
00:11:09,766 --> 00:11:12,566
finally gonna create a regulatory framework that

339
00:11:12,566 --> 00:11:14,433
makes sense for crypto

340
00:11:15,000 --> 00:11:17,500
it seems like we're headed in the right direction okay

341
00:11:17,533 --> 00:11:20,333
The House of representatives recently passed this Bill

342
00:11:20,333 --> 00:11:21,766
called the Financial Innovation

343
00:11:21,766 --> 00:11:24,066
and technology for the 21st Century Act

344
00:11:24,066 --> 00:11:25,666
I think I saw something about that

345
00:11:25,700 --> 00:11:28,166
fi t 21 fi t 21

346
00:11:28,200 --> 00:11:30,700
and this aims to provide a clearer definition

347
00:11:30,700 --> 00:11:33,500
of what constitutes a digital commodity okay

348
00:11:33,500 --> 00:11:35,333
and it outlines which agency

349
00:11:35,333 --> 00:11:37,466
either the CFTC or the SEC

350
00:11:37,600 --> 00:11:40,833
has jurisdiction over different types of crypto assets

351
00:11:40,933 --> 00:11:43,500
the more clarity less regulatory uncertainty

352
00:11:43,500 --> 00:11:45,300
that's gotta be good for the industry right

353
00:11:45,300 --> 00:11:48,666
exactly and Coinbase believes this shift

354
00:11:48,766 --> 00:11:50,000
could have a really big

355
00:11:50,000 --> 00:11:53,666
positive impact on crypto performance in 2025 okay

356
00:11:53,666 --> 00:11:55,100
you know a more favorable

357
00:11:55,100 --> 00:11:56,500
regulatory environment is gonna

358
00:11:56,500 --> 00:11:58,100
attract even more investment right

359
00:11:58,100 --> 00:12:00,166
make sense so things are looking up in the US

360
00:12:00,166 --> 00:12:01,866
but what about the rest of the world

361
00:12:01,866 --> 00:12:02,133
is there

362
00:12:02,133 --> 00:12:05,566
like a global consensus on how to regulate crypto

363
00:12:06,133 --> 00:12:06,866
not yet

364
00:12:06,866 --> 00:12:09,233
but we're starting to see some frameworks emerge

365
00:12:09,400 --> 00:12:10,766
The European Union for example

366
00:12:10,766 --> 00:12:14,133
is already implementing its Mica regulation okay

367
00:12:14,133 --> 00:12:16,600
the markets in Crypto Assets regulation

368
00:12:16,600 --> 00:12:18,333
and this provides clear

369
00:12:18,333 --> 00:12:21,366
rules for issuing and trading crypto assets

370
00:12:21,366 --> 00:12:22,933
and it set standards for crypto

371
00:12:22,933 --> 00:12:24,466
asset service providers

372
00:12:24,466 --> 00:12:26,466
so sounds like the EU is ahead of the game on this one

373
00:12:26,466 --> 00:12:27,733
they are and Coinbase

374
00:12:27,733 --> 00:12:29,366
believes that this will actually help

375
00:12:29,366 --> 00:12:31,133
foster innovation in the European

376
00:12:31,133 --> 00:12:32,600
crypto industry interesting

377
00:12:32,600 --> 00:12:35,933
so the US is catching up the EU is leading the way

378
00:12:35,933 --> 00:12:37,200
any other notable developments

379
00:12:37,200 --> 00:12:37,966
happening around the world

380
00:12:37,966 --> 00:12:38,733
yeah definitely

381
00:12:38,733 --> 00:12:41,866
the UK is also taking a proactive approach

382
00:12:42,166 --> 00:12:45,366
they've got plans to introduce a comprehensive

383
00:12:45,366 --> 00:12:47,766
regulatory framework for digital assets

384
00:12:47,766 --> 00:12:49,133
uh Hong Kong is

385
00:12:49,133 --> 00:12:51,700
making moves to reclaim its position as a global

386
00:12:51,700 --> 00:12:53,100
financial hub right

387
00:12:53,100 --> 00:12:55,166
and they're doing this by introducing crypto

388
00:12:55,166 --> 00:12:56,333
friendly legislation

389
00:12:56,333 --> 00:12:58,366
and issuing licenses for virtual asset

390
00:12:58,366 --> 00:13:00,166
training platforms yeah

391
00:13:00,266 --> 00:13:03,566
Singapore is fostering a booming crypto ecosystem

392
00:13:03,700 --> 00:13:04,733
and the Middle East

393
00:13:04,733 --> 00:13:06,600
and North Africa are seeing a surgeon

394
00:13:06,600 --> 00:13:08,333
interest and adoption partly

395
00:13:08,333 --> 00:13:09,833
thanks to some clearer

396
00:13:09,866 --> 00:13:12,466
regulatory frameworks that are emerging in that region

397
00:13:12,466 --> 00:13:14,133
so overall it seems like the global

398
00:13:14,133 --> 00:13:17,533
regulatory tide is turning in favor of crypto

399
00:13:17,533 --> 00:13:18,466
that's the general trend

400
00:13:18,466 --> 00:13:20,300
and as we get more regulatory clarity

401
00:13:20,300 --> 00:13:22,666
I think we'll see even more institutional adoption

402
00:13:22,666 --> 00:13:24,100
and investment in the space

403
00:13:24,100 --> 00:13:25,966
okay before we dive deeper into some of

404
00:13:25,966 --> 00:13:27,366
the specific technologies

405
00:13:27,366 --> 00:13:29,733
and trends that are shaping the crypto landscape

406
00:13:29,733 --> 00:13:31,766
hmm I'm curious to hear what Coinbase has to

407
00:13:31,766 --> 00:13:34,800
say about their own layer 2 network base

408
00:13:34,800 --> 00:13:37,066
oh yeah it's been a lot of buzz lately

409
00:13:37,066 --> 00:13:39,300
base has been a huge win for Coinbase

410
00:13:39,300 --> 00:13:41,266
it's already the second largest Ethereum

411
00:13:41,266 --> 00:13:43,666
layer 2 by total value locked wow

412
00:13:43,666 --> 00:13:44,066
with

413
00:13:44,066 --> 00:13:47,366
almost $12 billion in assets secured on the platform

414
00:13:47,366 --> 00:13:50,100
and it's becoming a major player in the defi space

415
00:13:50,200 --> 00:13:51,800
that's some serious growth yeah

416
00:13:51,800 --> 00:13:53,466
what do you think is driving that success

417
00:13:53,466 --> 00:13:57,966
so Coinbase attributes it to Bases Security

418
00:13:57,966 --> 00:14:01,666
its low cost and its developer friendly design okay

419
00:14:01,733 --> 00:14:03,800
and they've also made this really smart move

420
00:14:03,800 --> 00:14:06,066
by sharing a percentage of Bases

421
00:14:06,066 --> 00:14:09,333
sequencer revenue with the optimism collective okay

422
00:14:09,333 --> 00:14:11,000
what does that mean I'm playing English

423
00:14:11,100 --> 00:14:13,766
so basically they're giving back to the community

424
00:14:13,766 --> 00:14:17,000
and they're helping to foster a thriving ecosystem of

425
00:14:17,000 --> 00:14:19,633
applications and developers on the platform

426
00:14:19,666 --> 00:14:21,100
so it's not just about making money

427
00:14:21,100 --> 00:14:23,266
it's about building a sustainable ecosystem

428
00:14:23,266 --> 00:14:23,933
exactly

429
00:14:23,933 --> 00:14:26,566
and that's a key part of Coinbase's overall strategy

430
00:14:26,566 --> 00:14:28,900
they wanna be more than just an exchange right

431
00:14:28,900 --> 00:14:31,700
they wanna be the leading platform for the entire

432
00:14:31,700 --> 00:14:34,200
crypto economy that's a bold ambition

433
00:14:34,200 --> 00:14:37,333
and it sounds like base is a key piece of ABPUC or okay

434
00:14:37,333 --> 00:14:38,300
so we've covered a lot of

435
00:14:38,300 --> 00:14:39,900
ground in this first part of our deep type

436
00:14:39,900 --> 00:14:42,066
but there's still so much more to explore

437
00:14:42,400 --> 00:14:43,400
we're gonna take a quick break

438
00:14:43,400 --> 00:14:44,100
when we come back

439
00:14:44,100 --> 00:14:46,600
we'll delve into the world of layer 2 blockchains

440
00:14:46,600 --> 00:14:49,566
oh yeah and explore why they're so crucial

441
00:14:49,566 --> 00:14:51,766
to the future of crypto stay tuned

442
00:14:51,766 --> 00:14:53,500
alright so we're back and before the break

443
00:14:53,500 --> 00:14:55,133
we are talking about base

444
00:14:55,133 --> 00:14:57,600
and how it's built on this layer 2 network

445
00:14:57,733 --> 00:14:59,000
and you might be thinking

446
00:14:59,000 --> 00:15:01,000
wait a minute another layer

447
00:15:01,000 --> 00:15:03,733
isn't blockchain already complicated enough

448
00:15:03,733 --> 00:15:05,833
yeah my brain is already kind of fried

449
00:15:05,900 --> 00:15:06,166
but

450
00:15:06,166 --> 00:15:09,133
layer 2 is actually solving a big problem for crypto

451
00:15:09,133 --> 00:15:10,700
okay scalability okay

452
00:15:10,700 --> 00:15:14,633
so explain it to me like I'm 5

453
00:15:15,533 --> 00:15:17,300
why do we need these layer twos

454
00:15:17,300 --> 00:15:19,966
and how do they actually make crypto more scalable

455
00:15:19,966 --> 00:15:23,900
alright so imagine a highway with only one lane okay

456
00:15:23,900 --> 00:15:26,066
it's gonna get congested pretty quickly right

457
00:15:26,066 --> 00:15:26,900
make sense so

458
00:15:26,900 --> 00:15:28,133
that's kind of like the original

459
00:15:28,133 --> 00:15:29,566
Bitcoin and Ethereum blockchains

460
00:15:29,566 --> 00:15:32,266
they can only handle a limited number of transactions

461
00:15:32,266 --> 00:15:34,333
per second layer twos are like

462
00:15:34,333 --> 00:15:36,666
building express lanes on top of that highway

463
00:15:36,666 --> 00:15:38,733
so they allow transactions to happen much faster

464
00:15:38,733 --> 00:15:40,600
and cheaper without sacrificing

465
00:15:40,600 --> 00:15:42,400
the security of the main blockchain okay

466
00:15:42,400 --> 00:15:44,100
so more transactions lower fees

467
00:15:44,100 --> 00:15:45,200
that's a good thing exact

468
00:15:45,200 --> 00:15:47,566
so why is coin base so bullish on layer twos

469
00:15:47,600 --> 00:15:49,533
well they're seeing them as the main stage

470
00:15:49,533 --> 00:15:51,600
for a lot of the crypto activity that's happening

471
00:15:51,600 --> 00:15:54,500
especially in this world of decentralized finance

472
00:15:54,866 --> 00:15:56,200
Defi and

473
00:15:56,200 --> 00:15:58,966
their report actually shows this massive increase

474
00:15:58,966 --> 00:16:00,600
in the number of transactions

475
00:16:00,600 --> 00:16:02,466
and users on layer 2

476
00:16:02,466 --> 00:16:05,266
so it's not just hype the numbers are there exactly

477
00:16:05,266 --> 00:16:07,266
and they highlight a couple of specific

478
00:16:07,266 --> 00:16:09,066
layer 2 projects okay

479
00:16:09,133 --> 00:16:11,066
arbitram and of course their own base

480
00:16:11,066 --> 00:16:13,600
of course and they really see layer twos as this

481
00:16:13,600 --> 00:16:16,466
essential infrastructure for the future of crypto

482
00:16:16,566 --> 00:16:17,166
okay so

483
00:16:17,166 --> 00:16:21,666
if layer twos are built on top of existing blockchains

484
00:16:21,933 --> 00:16:23,800
what are layer threes oh

485
00:16:23,800 --> 00:16:25,133
we're getting even more meta

486
00:16:25,133 --> 00:16:25,800
I know right

487
00:16:25,800 --> 00:16:27,900
so layer threes take things a step further

488
00:16:27,900 --> 00:16:30,200
okay imagine them as specialized blockchains

489
00:16:30,200 --> 00:16:31,700
built on top of those layer twos

490
00:16:31,700 --> 00:16:33,533
so they can offer even lower costs

491
00:16:33,533 --> 00:16:36,000
and even more customization options

492
00:16:36,166 --> 00:16:38,533
and they can really cater to very specific needs

493
00:16:38,533 --> 00:16:41,533
okay so are layer threes kind of like niche boutiques

494
00:16:41,533 --> 00:16:43,566
while layer twos are more like department stores

495
00:16:43,566 --> 00:16:45,366
I like that analogy and Coinbase

496
00:16:45,366 --> 00:16:46,766
actually envisions a future

497
00:16:46,766 --> 00:16:49,000
where we have millions of these specialized

498
00:16:49,000 --> 00:16:51,033
layer threes creating this really

499
00:16:51,066 --> 00:16:54,366
diverse and vibrant blockchain ecosystem

500
00:16:54,400 --> 00:16:55,933
okay it's mind boggling to think

501
00:16:55,933 --> 00:16:57,166
how much innovation is happening

502
00:16:57,166 --> 00:16:58,600
this space absolutely

503
00:16:58,600 --> 00:17:00,900
and all this innovation leads us to one

504
00:17:00,900 --> 00:17:03,933
really mind blowing concept that Coinbase highlights

505
00:17:03,933 --> 00:17:06,866
and that's the convergence of crypto and AI

506
00:17:07,133 --> 00:17:09,766
okay now this is where I need you to hold my hand

507
00:17:09,933 --> 00:17:11,233
crypto and AI

508
00:17:11,600 --> 00:17:15,800
how do those two seemingly unrelated worlds collide

509
00:17:16,266 --> 00:17:18,766
yeah so we're talking about the bleeding edge here

510
00:17:18,766 --> 00:17:20,600
okay imagine AI agents

511
00:17:20,600 --> 00:17:22,566
so think sophisticated bots

512
00:17:22,566 --> 00:17:22,900
go

513
00:17:22,900 --> 00:17:26,100
using crypto wallets to do things like make purchases

514
00:17:26,100 --> 00:17:27,166
online access data

515
00:17:27,166 --> 00:17:28,866
even pay for computing power

516
00:17:28,866 --> 00:17:31,866
so basically AI is using crypto as its currency

517
00:17:31,966 --> 00:17:32,466
you got it

518
00:17:32,466 --> 00:17:34,866
and this could create entirely new economic systems

519
00:17:34,866 --> 00:17:37,600
where AI becomes a major economic force

520
00:17:37,666 --> 00:17:38,466
so my AI

521
00:17:38,466 --> 00:17:39,466
assistant could be out there

522
00:17:39,466 --> 00:17:41,366
using crypto to manage my finances

523
00:17:41,366 --> 00:17:42,733
and negotiate deals for me

524
00:17:42,733 --> 00:17:43,966
it's a paradigm shift

525
00:17:43,966 --> 00:17:45,766
that's both amazing and a little terrifying

526
00:17:45,766 --> 00:17:47,100
it is and Coinbase Ventures

527
00:17:47,100 --> 00:17:49,900
is actually actively investing in this convergence okay

528
00:17:49,900 --> 00:17:51,733
they see cryptos key features

529
00:17:51,733 --> 00:17:53,933
its efficiency its borderless nature

530
00:17:53,933 --> 00:17:55,266
its programmability as

531
00:17:55,266 --> 00:17:58,166
the perfect fuel to power this next generation of AI

532
00:17:58,166 --> 00:17:58,966
applications so

533
00:17:58,966 --> 00:18:00,933
we're talking about AI interacting with the internet

534
00:18:00,933 --> 00:18:02,833
using crypto as its currency

535
00:18:02,900 --> 00:18:05,266
exactly it's like a glimpse into this future

536
00:18:05,266 --> 00:18:08,266
where these two seemingly disparate technologies

537
00:18:08,266 --> 00:18:10,866
crypto and AI are deeply intertwined

538
00:18:10,866 --> 00:18:13,100
okay this is all incredibly fascinating

539
00:18:13,300 --> 00:18:15,666
but let's bring things back down to earth for a bit

540
00:18:15,666 --> 00:18:17,766
and talk about Bitcoin I mean

541
00:18:17,766 --> 00:18:20,066
both reports agree that it's been the star of the show

542
00:18:20,066 --> 00:18:21,366
in 2024 yeah

543
00:18:21,366 --> 00:18:22,166
for sure

544
00:18:22,366 --> 00:18:25,500
what is Coinbase saying about Bitcoin's performance

545
00:18:25,500 --> 00:18:27,166
and where it's headed so

546
00:18:27,166 --> 00:18:29,666
they're saying that in this current crypto market cycle

547
00:18:29,666 --> 00:18:31,766
we've seen a shift towards higher quality

548
00:18:31,766 --> 00:18:35,400
digital assets with Bitcoin leading the pack

549
00:18:35,866 --> 00:18:37,400
why do you think that is I mean

550
00:18:37,400 --> 00:18:38,600
is it all about bitcoin

551
00:18:38,600 --> 00:18:40,700
being seen as this safe haven asset

552
00:18:40,700 --> 00:18:42,600
I think that definitely plays a role

553
00:18:42,600 --> 00:18:44,966
you know with all the economic uncertainty in the world

554
00:18:44,966 --> 00:18:46,933
people are looking for assets that they believe

555
00:18:46,933 --> 00:18:49,200
will hold their value and bitcoin

556
00:18:49,200 --> 00:18:50,733
with its limited supply

557
00:18:50,733 --> 00:18:52,833
and its growing institutional adoption

558
00:18:52,866 --> 00:18:55,400
is increasingly being viewed as this digital

559
00:18:55,400 --> 00:18:56,700
version of gold right

560
00:18:56,700 --> 00:18:58,166
and remember those spot bitcoin

561
00:18:58,166 --> 00:19:00,466
etfs that launched in the US earlier this year

562
00:19:00,466 --> 00:19:01,066
yes oh

563
00:19:01,066 --> 00:19:02,200
a Coinbase's report says

564
00:19:02,200 --> 00:19:05,666
those etfs have attracted over $30 billion since then

565
00:19:05,666 --> 00:19:07,266
its and to put that into perspective

566
00:19:07,266 --> 00:19:08,933
the gold ETF equivalent

567
00:19:08,933 --> 00:19:12,266
attracted less than $5 billion in its first year

568
00:19:12,266 --> 00:19:12,733
I know

569
00:19:12,733 --> 00:19:15,500
the sheer scale of institutional investment in bitcoin

570
00:19:15,500 --> 00:19:16,666
is a clear indicator

571
00:19:16,666 --> 00:19:18,666
that it's becoming more mainstream

572
00:19:18,733 --> 00:19:20,700
so it's no longer just the tech savvy

573
00:19:20,700 --> 00:19:22,366
early adopters who are buying bitcoin

574
00:19:22,366 --> 00:19:25,366
no we're talking about big players endowments

575
00:19:25,366 --> 00:19:27,300
pension funds hedge funds

576
00:19:27,733 --> 00:19:29,666
all joining the party wow

577
00:19:29,666 --> 00:19:31,133
so who's holding all the bitcoin now

578
00:19:31,133 --> 00:19:32,166
like what's the breakdown

579
00:19:32,600 --> 00:19:34,866
so Coinbase mentions that institutions

580
00:19:34,866 --> 00:19:38,566
now own about 25% of all the shares in those US spot

581
00:19:38,566 --> 00:19:39,666
bitcoin etfs

582
00:19:39,666 --> 00:19:41,466
wow that's a significant chunk

583
00:19:41,466 --> 00:19:41,966
it is

584
00:19:41,966 --> 00:19:44,733
and this institutional interest is actually driving

585
00:19:44,733 --> 00:19:46,200
bitcoin's dominance okay

586
00:19:46,200 --> 00:19:48,533
so it's market cap share which is basically

587
00:19:48,533 --> 00:19:50,466
the percentage of the total crypto market cap

588
00:19:50,466 --> 00:19:51,866
that bitcoin represents

589
00:19:51,900 --> 00:19:54,333
is at its highest level since 2021

590
00:19:54,333 --> 00:19:56,266
so bitcoin is still king for now

591
00:19:56,266 --> 00:19:57,166
it seems for now

592
00:19:57,166 --> 00:19:58,366
okay so what happens after that

593
00:19:58,366 --> 00:19:58,566
you know

594
00:19:58,566 --> 00:20:00,933
do these institutions start looking at other crypto

595
00:20:00,933 --> 00:20:01,900
assets I mean

596
00:20:01,900 --> 00:20:04,366
it's definitely a possibility as the market matures

597
00:20:04,366 --> 00:20:07,000
we could see some of that capital flowing into other

598
00:20:07,000 --> 00:20:08,766
riskier assets interesting

599
00:20:08,766 --> 00:20:10,766
so it sounds like it's still early days

600
00:20:11,000 --> 00:20:13,133
for institutional involvement in the broader

601
00:20:13,133 --> 00:20:14,533
crypto market yeah

602
00:20:14,533 --> 00:20:16,666
so but let's stick with Bitcoin for a second

603
00:20:16,666 --> 00:20:19,800
no I'm curious to know how all this institutional money

604
00:20:19,800 --> 00:20:22,700
is actually impacting how Bitcoin is traded

605
00:20:22,733 --> 00:20:23,500
so Coinbase

606
00:20:23,500 --> 00:20:26,466
breaks down the average daily trading volumes by

607
00:20:26,533 --> 00:20:27,766
product type so spot

608
00:20:27,766 --> 00:20:30,266
perpetual futures and term futures

609
00:20:30,266 --> 00:20:31,733
okay and what's fascinating

610
00:20:31,733 --> 00:20:32,966
is that futures trading

611
00:20:32,966 --> 00:20:35,066
still makes up the lion share of bitcoin

612
00:20:35,066 --> 00:20:38,000
trading activity over 75%

613
00:20:38,166 --> 00:20:40,533
and this suggests that a lot of the action is driven by

614
00:20:40,533 --> 00:20:43,266
speculation and short term trading strategies

615
00:20:43,266 --> 00:20:45,100
so bitcoin is still a volatile asset

616
00:20:45,100 --> 00:20:46,166
which attracts traders

617
00:20:46,166 --> 00:20:48,800
looking to make a quick profit from those price swings

618
00:20:48,800 --> 00:20:49,733
exactly

619
00:20:49,733 --> 00:20:53,166
but with the launch of Bitcoin ETF options in November

620
00:20:53,166 --> 00:20:55,500
right spot volumes are starting to pick up

621
00:20:55,500 --> 00:20:57,800
and this could indicate a shift towards some longer

622
00:20:57,800 --> 00:20:59,333
term investment strategies

623
00:20:59,333 --> 00:21:00,366
okay so

624
00:21:00,466 --> 00:21:02,500
what does all this mean for the average investor

625
00:21:02,500 --> 00:21:04,733
who's just starting to explore bitcoin

626
00:21:04,733 --> 00:21:05,500
well for when

627
00:21:05,500 --> 00:21:06,000
it means that

628
00:21:06,000 --> 00:21:08,266
Bitcoin is becoming increasingly accessible

629
00:21:08,266 --> 00:21:09,300
and liquid

630
00:21:09,466 --> 00:21:12,066
there are more ways to invest in it than ever before

631
00:21:12,066 --> 00:21:14,500
and the infrastructure is constantly improving

632
00:21:14,733 --> 00:21:18,000
but remember bitcoin is still a volatile asset right

633
00:21:18,000 --> 00:21:21,200
so do your research and understand the risks involved

634
00:21:21,266 --> 00:21:22,100
solid advice

635
00:21:22,100 --> 00:21:24,466
never invest more than you can afford to lose

636
00:21:24,866 --> 00:21:29,333
exactly but beyond just buying and holding Bitcoin

637
00:21:29,333 --> 00:21:30,500
it's interesting to look

638
00:21:30,500 --> 00:21:33,366
at what's happening in the broader Bitcoin ecosystem

639
00:21:33,366 --> 00:21:33,866
oh yeah

640
00:21:33,866 --> 00:21:34,500
Coinbases

641
00:21:34,500 --> 00:21:37,066
report highlights some pretty fascinating developments

642
00:21:37,066 --> 00:21:39,500
like the emergence of new infrastructure

643
00:21:39,500 --> 00:21:42,266
being built on top of the Bitcoin blockchain

644
00:21:42,466 --> 00:21:42,600
so

645
00:21:42,600 --> 00:21:44,666
what kind of infrastructure are we talking about here

646
00:21:44,666 --> 00:21:46,300
I thought Bitcoin was pretty limited

647
00:21:46,300 --> 00:21:47,666
in terms of functionality

648
00:21:47,666 --> 00:21:50,000
compared to something like Ethereum

649
00:21:50,200 --> 00:21:51,300
you're right historically

650
00:21:51,300 --> 00:21:54,100
Bitcoin has mainly served as the store of value

651
00:21:54,100 --> 00:21:55,366
but that's changing oh

652
00:21:55,366 --> 00:21:58,200
we're actually seeing the rise of layer 2 networks

653
00:21:58,200 --> 00:21:59,933
bridges virtual machines

654
00:21:59,933 --> 00:22:02,066
wallets even staking protocols

655
00:22:02,066 --> 00:22:04,400
all being built on top of the Bitcoin blockchain

656
00:22:04,400 --> 00:22:06,166
hold on bitcoin is getting its own layer twos

657
00:22:06,166 --> 00:22:08,300
I thought those were primarily an Ethereum thing

658
00:22:08,300 --> 00:22:10,066
they were but now Bitcoin is catching up

659
00:22:10,066 --> 00:22:12,200
and this is made possible by something called the bit

660
00:22:12,200 --> 00:22:14,633
VM or Bitcoin virtual machine

661
00:22:14,700 --> 00:22:17,466
which basically unlocks more complex

662
00:22:17,466 --> 00:22:20,133
smart contract functionality on Bitcoin

663
00:22:20,133 --> 00:22:22,866
okay ELA I 5 for me

664
00:22:23,166 --> 00:22:24,733
what does this mean in plain English

665
00:22:24,733 --> 00:22:26,666
like what can you actually do

666
00:22:26,666 --> 00:22:28,066
with these new functionalities

667
00:22:28,066 --> 00:22:30,366
so we're already seeing some pretty cool applications

668
00:22:30,366 --> 00:22:32,766
emerge like non custodial vaults

669
00:22:32,766 --> 00:22:35,566
that allow for reversible and recurring transactions

670
00:22:35,566 --> 00:22:37,866
so imagine being able to schedule bitcoin transfers

671
00:22:37,866 --> 00:22:39,300
like you schedule Bill payments

672
00:22:39,300 --> 00:22:41,266
so Bitcoin is becoming more than just a digital

673
00:22:41,266 --> 00:22:42,466
piggy bank exactly

674
00:22:42,466 --> 00:22:43,966
and it's all thanks to these layer

675
00:22:43,966 --> 00:22:46,100
2 solutions that are expanding its capabilities

676
00:22:46,100 --> 00:22:46,533
wow so

677
00:22:46,533 --> 00:22:47,766
what's driving this sudden

678
00:22:47,766 --> 00:22:50,266
explosion of innovation in the Bitcoin ecosystem

679
00:22:50,266 --> 00:22:53,133
well the upcoming having event is definitely a factor

680
00:22:53,133 --> 00:22:55,900
as the block rewards for Bitcoin miners decrease

681
00:22:55,900 --> 00:22:57,766
they're looking for new ways to generate revenue

682
00:22:57,766 --> 00:22:59,000
and keep the network running

683
00:22:59,000 --> 00:23:02,300
although an evolutionary pressure adapter die in a way

684
00:23:02,300 --> 00:23:02,866
yes

685
00:23:02,866 --> 00:23:06,133
but it's also about realizing Bitcoin's full potential

686
00:23:06,133 --> 00:23:06,966
interesting so

687
00:23:06,966 --> 00:23:08,333
Coinbase is highlighting how

688
00:23:08,333 --> 00:23:10,800
Bitcoin is becoming more than just a store of value

689
00:23:11,133 --> 00:23:13,200
but they also mention some challenges with Bitcoin

690
00:23:13,200 --> 00:23:14,100
layer twos right

691
00:23:14,100 --> 00:23:14,800
right so

692
00:23:14,800 --> 00:23:15,900
the Bitcoin community

693
00:23:15,900 --> 00:23:19,300
is much more decentralized than the Ethereum community

694
00:23:19,300 --> 00:23:20,400
okay so

695
00:23:20,400 --> 00:23:22,466
coordinating and implementing large

696
00:23:22,466 --> 00:23:24,300
scale changes to the Bitcoin network

697
00:23:24,300 --> 00:23:26,066
can be a lot more challenging

698
00:23:26,066 --> 00:23:27,500
and since there's no central authority

699
00:23:27,500 --> 00:23:30,933
calling the shots there is a risk of fragmentation

700
00:23:30,933 --> 00:23:33,166
and competing solutions exactly

701
00:23:33,166 --> 00:23:35,900
it's a classic trade off between decentralization

702
00:23:35,900 --> 00:23:37,200
and efficiency okay

703
00:23:37,200 --> 00:23:39,500
so tell me more about these Bitcoin layer twos coming

704
00:23:39,500 --> 00:23:41,500
Coinbase mentions a few leading contenders

705
00:23:41,500 --> 00:23:44,066
in their report are there any that stand out to you

706
00:23:44,333 --> 00:23:44,666
well

707
00:23:44,666 --> 00:23:46,966
there's a lot of experimentation happening right now

708
00:23:46,966 --> 00:23:49,266
some networks like stacks and Root Stock

709
00:23:49,266 --> 00:23:50,466
have been around for a while

710
00:23:50,466 --> 00:23:52,433
and they have their own ecosystems

711
00:23:52,700 --> 00:23:55,100
others like Bitlare and core are newer

712
00:23:55,100 --> 00:23:57,133
and they're approaching things a little bit differently

713
00:23:57,133 --> 00:23:59,366
so it's a pretty diverse landscape

714
00:23:59,366 --> 00:24:01,133
with different design philosophies

715
00:24:01,133 --> 00:24:02,400
and different functionalities

716
00:24:02,400 --> 00:24:03,000
it sounds like

717
00:24:03,000 --> 00:24:05,966
the Bitcoin layer 2 landscape is still very much

718
00:24:05,966 --> 00:24:09,900
in its early stages and it's anyone's guess

719
00:24:09,900 --> 00:24:12,266
which solutions will ultimately prevail

720
00:24:12,266 --> 00:24:14,733
absolutely it's a dynamic and competitive space

721
00:24:14,733 --> 00:24:16,666
with lots of innovation happening

722
00:24:16,733 --> 00:24:18,000
but despite the challenges

723
00:24:18,000 --> 00:24:19,400
Coinbase believes that

724
00:24:19,400 --> 00:24:20,166
the development of this

725
00:24:20,166 --> 00:24:22,333
new infrastructure will be a defining trend

726
00:24:22,333 --> 00:24:24,166
for Bitcoin in 2025

727
00:24:24,166 --> 00:24:24,466
okay

728
00:24:24,466 --> 00:24:26,866
so before we jump into this fascinating world of Salana

729
00:24:26,866 --> 00:24:29,266
which Coinbase devotes a whole section too

730
00:24:29,266 --> 00:24:30,800
uh huh I'd love to take a detour

731
00:24:30,800 --> 00:24:32,533
and talk about stable coins in more detail

732
00:24:32,533 --> 00:24:33,500
sounds good I mean

733
00:24:33,500 --> 00:24:35,566
they are crucial part of the crypto ecosystem

734
00:24:35,566 --> 00:24:36,933
and their growth in 2024

735
00:24:36,933 --> 00:24:38,333
has been nothing short of remarkable

736
00:24:38,333 --> 00:24:39,366
yeah for sure

737
00:24:39,566 --> 00:24:41,000
Coinbase's report mentions that

738
00:24:41,000 --> 00:24:42,333
the stable coin market has settled

739
00:24:42,333 --> 00:24:45,266
nearly $27 trillion in transactions

740
00:24:45,266 --> 00:24:46,633
this year wow

741
00:24:46,766 --> 00:24:49,266
that's almost three times the volume from last year

742
00:24:49,266 --> 00:24:52,166
it's incredible what's driving this explosive growth

743
00:24:52,166 --> 00:24:52,900
so a few things

744
00:24:52,900 --> 00:24:55,800
were seeing increasing demand for digital dollars

745
00:24:55,800 --> 00:24:57,733
and the use cases for stable coins

746
00:24:57,733 --> 00:24:59,400
are expanding rapidly okay

747
00:24:59,400 --> 00:25:01,933
they're being used for everything from remittances

748
00:25:01,933 --> 00:25:03,666
and cross border payments

749
00:25:03,900 --> 00:25:06,666
to trading and lending and defi protocols

750
00:25:06,666 --> 00:25:08,900
yeah it's interesting to see how stable coins

751
00:25:09,200 --> 00:25:11,533
are kind of blurring the lines between the traditional

752
00:25:11,533 --> 00:25:13,366
financial system in the crypto world

753
00:25:13,800 --> 00:25:17,300
and Coinbase even mentions that establish players

754
00:25:17,300 --> 00:25:20,266
like visa are exploring ways to integrate

755
00:25:20,266 --> 00:25:22,100
stable coins into their operations

756
00:25:22,100 --> 00:25:24,666
yeah they're not just dismissing stable coins

757
00:25:24,666 --> 00:25:26,233
as this passing fad

758
00:25:26,600 --> 00:25:29,166
they recognize the potential for disruption

759
00:25:29,266 --> 00:25:32,266
it sounds like we're witnessing the early stages of a

760
00:25:32,266 --> 00:25:34,566
major shift in how money moves around the world

761
00:25:34,566 --> 00:25:36,066
it's definitely a trend to watch

762
00:25:36,066 --> 00:25:39,600
okay so while the stablecoin market is growing rapidly

763
00:25:39,600 --> 00:25:42,466
it's also becoming increasingly concentrated right

764
00:25:42,466 --> 00:25:44,600
Coinbase's report highlights that two issue

765
00:25:44,600 --> 00:25:46,533
a circle and tether currently

766
00:25:46,533 --> 00:25:49,533
control about 90% of the total stable coin market cap

767
00:25:49,533 --> 00:25:51,400
wow so it's a duopoly

768
00:25:51,400 --> 00:25:53,500
does Coinbase see this trend continuing

769
00:25:53,700 --> 00:25:54,600
I mean they're not so sure

770
00:25:54,600 --> 00:25:57,300
they actually envision a future where we have many

771
00:25:57,300 --> 00:25:59,766
smaller interoperable stablecoins

772
00:25:59,800 --> 00:26:02,266
similar to how we view dollars held at different banks

773
00:26:02,266 --> 00:26:03,566
as interchangeable today so

774
00:26:03,566 --> 00:26:06,733
a more diverse and decentralized stablecoin ecosystem

775
00:26:06,733 --> 00:26:09,466
absolutely and that could foster greater competition

776
00:26:09,466 --> 00:26:10,400
and innovation

777
00:26:10,400 --> 00:26:13,200
ultimately benefiting both consumers and businesses

778
00:26:13,666 --> 00:26:15,000
that's a pretty hopeful vision

779
00:26:15,000 --> 00:26:16,600
for the future of stablecoins

780
00:26:16,933 --> 00:26:19,133
but there's another trend in the stablecoin market

781
00:26:19,133 --> 00:26:20,766
that Coinbase highlights

782
00:26:20,766 --> 00:26:23,666
and that's the search for synthetic yield rights

783
00:26:23,866 --> 00:26:25,266
what is synthetic yield

784
00:26:25,266 --> 00:26:26,900
and why are people so obsessed with it

785
00:26:26,900 --> 00:26:29,333
so as more investors hold stable coins

786
00:26:29,333 --> 00:26:31,100
they're looking for ways to

787
00:26:31,100 --> 00:26:33,066
generate returns on these assets right

788
00:26:33,066 --> 00:26:34,300
they want their money to make money

789
00:26:34,300 --> 00:26:37,866
exactly and Coinbase mentions Athena as a prime example

790
00:26:37,866 --> 00:26:38,366
Athena

791
00:26:38,366 --> 00:26:40,766
it's a protocol that tokenizes the difference between

792
00:26:40,766 --> 00:26:42,966
spot and futures prices

793
00:26:43,166 --> 00:26:44,300
4 ethereum okay

794
00:26:44,300 --> 00:26:46,700
and this allows Athena to offer a yield bearing

795
00:26:46,700 --> 00:26:48,966
stablecoin USD USD

796
00:26:48,966 --> 00:26:51,866
okay and this gives investors a way to earn interest

797
00:26:51,866 --> 00:26:53,733
on their stablecoin holdings

798
00:26:53,733 --> 00:26:55,666
so it's similar to a money market fund

799
00:26:55,666 --> 00:26:57,866
but in the decentralized world of defi

800
00:26:57,866 --> 00:27:00,933
exactly and it's just one example of the innovative

801
00:27:00,933 --> 00:27:03,300
financial products that are being built on top of this

802
00:27:03,300 --> 00:27:04,733
stable coin infrastructure okay

803
00:27:04,733 --> 00:27:06,533
so what else does Coinbase have to say about

804
00:27:06,533 --> 00:27:07,966
the future of stable coins

805
00:27:08,000 --> 00:27:08,866
so they predict that

806
00:27:08,866 --> 00:27:11,000
stablecoins will continue to gain traction

807
00:27:11,000 --> 00:27:11,933
in the coming years

808
00:27:11,933 --> 00:27:14,400
driven by their increasing use in remittances

809
00:27:14,766 --> 00:27:16,200
digital capital markets

810
00:27:16,200 --> 00:27:18,533
and in providing financial services to the

811
00:27:18,533 --> 00:27:19,933
unbanked and underbanked

812
00:27:19,933 --> 00:27:23,066
so stablecoins aren't just a tool for speculation

813
00:27:23,400 --> 00:27:25,533
they actually have the potential to make a real

814
00:27:25,533 --> 00:27:28,366
impact on people's lives absolutely

815
00:27:28,533 --> 00:27:30,300
and as the technology improves

816
00:27:30,300 --> 00:27:31,966
and regulations become clearer

817
00:27:31,966 --> 00:27:32,366
we can

818
00:27:32,366 --> 00:27:35,000
expect stablecoins to play an even more prominent role

819
00:27:35,000 --> 00:27:37,066
in the future of finance okay

820
00:27:37,066 --> 00:27:39,433
before we wrap up this part of our deep dive

821
00:27:39,666 --> 00:27:40,666
let's shift our attention

822
00:27:40,666 --> 00:27:43,000
something that has the potential

823
00:27:43,100 --> 00:27:44,666
to really

824
00:27:44,666 --> 00:27:46,666
revolutionize the way we think about ownership

825
00:27:46,666 --> 00:27:47,700
and investment tokenization

826
00:27:47,700 --> 00:27:48,866
yeah it's a big one

827
00:27:49,100 --> 00:27:51,900
Coinbase's report says that the market for tokenized

828
00:27:51,900 --> 00:27:56,633
real world assets has grown over 60% in 2024

829
00:27:56,733 --> 00:27:57,966
wow and they predict

830
00:27:57,966 --> 00:27:59,333
it could reach a staggering

831
00:27:59,333 --> 00:28:01,566
$30 trillion in the next five years

832
00:28:01,566 --> 00:28:03,500
that's huge those are some massive number

833
00:28:03,500 --> 00:28:05,400
so clearly tokenization is catching

834
00:28:05,400 --> 00:28:07,033
the attention of some major players

835
00:28:07,100 --> 00:28:11,066
but what exactly are tokenized real world assets

836
00:28:11,500 --> 00:28:13,166
I think we bring this down for our listeners

837
00:28:13,166 --> 00:28:14,900
who might not be familiar with the concept

838
00:28:14,900 --> 00:28:18,300
sure so imagine you own a piece of real estate

839
00:28:18,300 --> 00:28:21,300
a valuable piece of art or shares in a private company

840
00:28:21,300 --> 00:28:21,766
okay

841
00:28:21,766 --> 00:28:24,700
tokenization allows you to represent these assets as

842
00:28:24,700 --> 00:28:26,500
digital tokens on a blockchain

843
00:28:26,500 --> 00:28:26,900
okay

844
00:28:26,900 --> 00:28:29,866
these tokens can then be easily traded and transferred

845
00:28:29,866 --> 00:28:32,000
making it much simpler to buy

846
00:28:32,000 --> 00:28:33,833
sell and manage these assets

847
00:28:33,900 --> 00:28:34,133
so

848
00:28:34,133 --> 00:28:36,300
instead of dealing with all the traditional paperwork

849
00:28:36,300 --> 00:28:39,466
and intermediaries you can trade these assets digitally

850
00:28:39,566 --> 00:28:41,133
just like cryptocurrencies exactly

851
00:28:41,133 --> 00:28:42,666
it streamlines the entire process

852
00:28:42,666 --> 00:28:44,066
making it faster cheaper

853
00:28:44,066 --> 00:28:45,333
and more transparent okay

854
00:28:45,333 --> 00:28:47,100
so Coinbase gives some real world

855
00:28:47,100 --> 00:28:49,400
examples of tokenization already happening right

856
00:28:49,400 --> 00:28:50,533
yes they

857
00:28:50,533 --> 00:28:53,733
discuss this growing market for tokenized US Treasuries

858
00:28:53,733 --> 00:28:55,766
which allows investors to buy and sell

859
00:28:55,766 --> 00:28:58,466
fractions of these government bonds on a blockchain

860
00:28:58,466 --> 00:29:01,666
okay they also highlight how companies like Blackrock

861
00:29:01,666 --> 00:29:02,800
and Franklin Templeton

862
00:29:02,800 --> 00:29:04,766
major players in traditional finance

863
00:29:04,766 --> 00:29:07,400
are embracing tokenization to improve efficiency

864
00:29:07,400 --> 00:29:09,666
and reduce costs in their operations

865
00:29:09,700 --> 00:29:11,900
so this isn't just a theoretical concept

866
00:29:11,900 --> 00:29:13,566
it's already being implemented by some of

867
00:29:13,566 --> 00:29:15,133
the biggest names in finance

868
00:29:15,133 --> 00:29:17,766
exactly and Coinbase believes that tokenized

869
00:29:17,766 --> 00:29:20,466
real world assets will be a defining feature of

870
00:29:20,466 --> 00:29:22,166
the next crypto market cycle

871
00:29:22,533 --> 00:29:24,700
but they also mention some challenges right

872
00:29:24,700 --> 00:29:27,833
of course tokenization is still in its early stages

873
00:29:27,866 --> 00:29:29,900
and there are hurdles to overcome

874
00:29:30,333 --> 00:29:32,500
Coinbase highlights three main challenges

875
00:29:32,500 --> 00:29:34,566
for institutional adoption okay

876
00:29:34,566 --> 00:29:35,733
technological risk

877
00:29:35,733 --> 00:29:38,433
custodial and infrastructure buildout risks

878
00:29:38,666 --> 00:29:40,700
and then the need to comply with regulations

879
00:29:40,700 --> 00:29:44,066
like KYC and AML those are all valid concerns

880
00:29:44,066 --> 00:29:46,066
can you elaborate on what those challenges actually

881
00:29:46,066 --> 00:29:46,700
entail sure

882
00:29:46,700 --> 00:29:49,000
so when it comes to technological risk

883
00:29:49,000 --> 00:29:52,233
it's all about ensuring the security and reliability

884
00:29:52,466 --> 00:29:53,200
of the platforms

885
00:29:53,200 --> 00:29:55,600
and protocols that are used for tokenization right

886
00:29:55,600 --> 00:29:57,100
we need really robust

887
00:29:57,100 --> 00:29:59,866
systems that can handle the complexity of

888
00:29:59,933 --> 00:30:02,566
managing and transferring these tokenized assets

889
00:30:02,566 --> 00:30:03,933
so it's about building trust

890
00:30:03,933 --> 00:30:05,766
and confidence in the technology exactly

891
00:30:05,766 --> 00:30:07,266
and then there's issue of custody

892
00:30:07,266 --> 00:30:08,600
you know who holds these tokenized

893
00:30:08,600 --> 00:30:10,500
assets and how are they secured

894
00:30:10,600 --> 00:30:12,866
and this is where the need for

895
00:30:12,866 --> 00:30:15,600
secure and reliable custodial solutions comes in

896
00:30:15,600 --> 00:30:17,733
we need institutions that can provide

897
00:30:17,733 --> 00:30:19,100
the same level of security

898
00:30:19,100 --> 00:30:21,800
and trust that we expect from traditional custodians

899
00:30:21,800 --> 00:30:22,133
so we need

900
00:30:22,133 --> 00:30:25,400
like a bridge between the traditional world of finance

901
00:30:25,866 --> 00:30:28,100
and this new world of tokenized assets

902
00:30:28,100 --> 00:30:29,566
precisely and then finally

903
00:30:29,566 --> 00:30:31,166
there's the regulatory challenge

904
00:30:31,166 --> 00:30:33,566
hmm how do we ensure that tokenized

905
00:30:33,566 --> 00:30:36,066
assets comply with existing regulations

906
00:30:36,066 --> 00:30:38,366
that are designed to prevent money laundering

907
00:30:38,366 --> 00:30:39,766
and other financial crimes

908
00:30:39,766 --> 00:30:40,100
yeah

909
00:30:40,100 --> 00:30:41,866
it sounds like regulators are gonna have their hands

910
00:30:41,866 --> 00:30:42,166
full

911
00:30:42,166 --> 00:30:44,400
trying to keep up with this rapidly evolving space

912
00:30:44,400 --> 00:30:45,600
yeah but

913
00:30:45,600 --> 00:30:47,000
queenbase remains optimistic about

914
00:30:47,000 --> 00:30:48,500
the future of tokenization right

915
00:30:48,500 --> 00:30:50,466
they do they point out that there's a lot of progress

916
00:30:50,466 --> 00:30:52,166
being made on the technological front

917
00:30:52,166 --> 00:30:53,466
okay with more secure

918
00:30:53,466 --> 00:30:55,266
and sophisticated protocols being developed

919
00:30:55,266 --> 00:30:55,800
and there's also

920
00:30:55,800 --> 00:30:58,200
this growing awareness among regulators

921
00:30:58,333 --> 00:31:00,566
of the need to create a clear and supportive

922
00:31:00,566 --> 00:31:03,233
regulatory framework for tokenized assets

923
00:31:03,333 --> 00:31:03,866
it sounds like

924
00:31:03,866 --> 00:31:06,366
tokenization is a space that's ripe for innovation

925
00:31:06,366 --> 00:31:07,300
in disruption

926
00:31:08,166 --> 00:31:10,166
it's definitely something we'll be keeping a close

927
00:31:10,166 --> 00:31:10,966
eye on

928
00:31:11,933 --> 00:31:12,533
okay

929
00:31:12,533 --> 00:31:15,566
so we're back and ready to wrap up our crypto journey

930
00:31:16,366 --> 00:31:18,533
we are talking about tokenization before the break

931
00:31:18,533 --> 00:31:21,333
but now let's zoom in on one blockchain in particular

932
00:31:21,333 --> 00:31:23,600
that Coinbase highlights Solana

933
00:31:23,600 --> 00:31:25,966
Solana has definitely been making waves

934
00:31:25,966 --> 00:31:28,033
it's become this go to

935
00:31:28,333 --> 00:31:30,600
platform for developers and users

936
00:31:30,600 --> 00:31:32,300
who are looking for high speed

937
00:31:32,333 --> 00:31:33,933
low cost transactions yeah

938
00:31:33,933 --> 00:31:35,766
I've been hearing a lot of buzz about it yeah

939
00:31:35,766 --> 00:31:37,466
it's attracting a ton of attention

940
00:31:37,466 --> 00:31:39,500
especially from retail investors

941
00:31:39,500 --> 00:31:40,200
who

942
00:31:40,200 --> 00:31:43,566
are drawn to its performance and its user friendliness

943
00:31:43,566 --> 00:31:45,566
okay so what makes Salona so special

944
00:31:45,566 --> 00:31:47,533
well one thing is that its transaction fees are

945
00:31:47,533 --> 00:31:49,133
way lower than Ethereums

946
00:31:49,133 --> 00:31:51,600
oh yeah those gas fees on Ethereum can be a real killer

947
00:31:51,600 --> 00:31:53,400
exactly and this cost advantage has been

948
00:31:53,400 --> 00:31:54,333
attracting a lot of

949
00:31:54,333 --> 00:31:56,200
applications that require high performance

950
00:31:56,200 --> 00:31:57,733
like decentralized exchanges

951
00:31:57,733 --> 00:31:58,500
and all those blockchain

952
00:31:58,500 --> 00:32:00,000
games that everyone's talking about right

953
00:32:00,000 --> 00:32:01,566
so it's all about speed and affordability

954
00:32:01,566 --> 00:32:04,066
and Solana also has this really unique

955
00:32:04,066 --> 00:32:05,400
framework of what they call

956
00:32:05,400 --> 00:32:07,700
localized fee markets okay

957
00:32:07,700 --> 00:32:11,133
localized fee markets what is that all about

958
00:32:11,133 --> 00:32:11,366
so

959
00:32:11,366 --> 00:32:14,366
instead of having one fee market for the whole network

960
00:32:14,366 --> 00:32:16,900
right Salona allows different applications

961
00:32:16,900 --> 00:32:19,600
or smart contracts to set their own transaction fees

962
00:32:19,600 --> 00:32:21,266
okay so it's like a more dynamic system

963
00:32:21,266 --> 00:32:24,500
exactly and it means that fees can be tailored to the

964
00:32:24,533 --> 00:32:26,566
civic demands of each application

965
00:32:26,566 --> 00:32:28,266
so it prevents congestion

966
00:32:28,400 --> 00:32:30,666
and it ensures smoother operation

967
00:32:30,800 --> 00:32:34,166
so more efficient less traffic jams exactly

968
00:32:34,166 --> 00:32:36,000
it's a clever way to optimize the network

969
00:32:36,000 --> 00:32:38,166
but Coinbase also points out that a lot of Salona's

970
00:32:38,166 --> 00:32:39,933
recent growth has been driven by mean

971
00:32:39,933 --> 00:32:43,200
coin trading is that sustainable in the long run

972
00:32:43,200 --> 00:32:45,633
or is it just a temporary hype cycle

973
00:32:45,800 --> 00:32:47,066
that's a good question I mean

974
00:32:47,066 --> 00:32:49,866
mean coins can be super volatile and speculative

975
00:32:49,866 --> 00:32:51,266
so while they've generated a lot

976
00:32:51,266 --> 00:32:53,000
of buzz and activity on Salona

977
00:32:53,333 --> 00:32:55,666
it's unclear whether this will translate into long term

978
00:32:55,666 --> 00:32:56,700
sustainable growth

979
00:32:56,700 --> 00:32:58,733
Coinbase's report actually reveals some pretty

980
00:32:58,733 --> 00:33:01,433
eye opening numbers about Solana's Meancoin frenzy

981
00:33:02,066 --> 00:33:03,166
they say that in November

982
00:33:03,166 --> 00:33:06,900
over 85% of all decentralized exchange volume on Solana

983
00:33:06,900 --> 00:33:08,400
was from meme coins wow

984
00:33:08,400 --> 00:33:10,933
that's a massive jump from just 40%

985
00:33:10,933 --> 00:33:11,866
at the beginning of the year

986
00:33:11,866 --> 00:33:13,866
yeah that just shows you how quickly trends

987
00:33:13,866 --> 00:33:15,300
can shift in the crypto world

988
00:33:15,300 --> 00:33:16,266
yeah it does

989
00:33:16,500 --> 00:33:17,966
so what happens to Solana

990
00:33:17,966 --> 00:33:19,933
if the meme coin bubble bursts

991
00:33:19,933 --> 00:33:22,300
is it game over not necessarily

992
00:33:22,300 --> 00:33:24,966
Solana has a lot more to offer than just Meancoins

993
00:33:25,066 --> 00:33:26,133
they have a growing

994
00:33:26,133 --> 00:33:28,666
ecosystem of applications and developers

995
00:33:28,666 --> 00:33:30,766
who are working on a wide range of projects

996
00:33:30,766 --> 00:33:33,833
okay from decentralized finance to NFTS

997
00:33:34,100 --> 00:33:36,066
and queenbase points out that Solana's

998
00:33:36,066 --> 00:33:37,066
straightforward focus

999
00:33:37,066 --> 00:33:39,166
on just increasing transaction speed

1000
00:33:39,166 --> 00:33:41,666
at the base layer is a key advantage

1001
00:33:41,700 --> 00:33:44,466
they're not relying on layer 2 solutions like Ethereum

1002
00:33:44,466 --> 00:33:47,466
so speed and efficiency are baked into Salona's DNA

1003
00:33:47,466 --> 00:33:48,066
exactly

1004
00:33:48,066 --> 00:33:50,733
but they also highlight some challenges that Salona

1005
00:33:50,733 --> 00:33:52,066
needs to overcome

1006
00:33:52,066 --> 00:33:54,166
if it wants to achieve mainstream adoption

1007
00:33:54,166 --> 00:33:55,233
okay like what

1008
00:33:55,266 --> 00:33:58,133
well one concern is the lack of client diversity

1009
00:33:58,133 --> 00:33:59,100
this refers to

1010
00:33:59,100 --> 00:34:01,200
the different software programs that connect to

1011
00:34:01,200 --> 00:34:03,400
and interact with the Salona network okay

1012
00:34:03,400 --> 00:34:03,900
right now

1013
00:34:03,900 --> 00:34:06,266
there's a high level of reliance on a single client

1014
00:34:06,266 --> 00:34:06,600
okay

1015
00:34:06,600 --> 00:34:09,466
and this could pose a risk to the network's resilience

1016
00:34:09,466 --> 00:34:11,166
so if that one client were to fail

1017
00:34:11,166 --> 00:34:12,766
it could disrupt the whole network

1018
00:34:12,766 --> 00:34:14,600
that's the concern and another challenge is

1019
00:34:14,600 --> 00:34:16,866
Solana's relatively high inflation rate

1020
00:34:16,866 --> 00:34:17,400
inflation

1021
00:34:17,400 --> 00:34:19,966
isn't that a problem for traditional currencies too

1022
00:34:20,000 --> 00:34:22,266
how does inflation work with cryptocurrencies

1023
00:34:22,366 --> 00:34:24,266
so it's a bit different with cryptocurrencies

1024
00:34:24,266 --> 00:34:26,000
inflation typically refers to

1025
00:34:26,000 --> 00:34:28,266
the rate at which new tokens are being created

1026
00:34:28,266 --> 00:34:30,200
and added to the circulating supply

1027
00:34:30,500 --> 00:34:33,600
and Solana's annual inflation rate is currently around

1028
00:34:33,600 --> 00:34:37,600
5.2% which is significantly higher than bitcoins

1029
00:34:37,600 --> 00:34:40,366
back 8% or Ethereums point four %

1030
00:34:40,366 --> 00:34:41,666
so does that mean that the value

1031
00:34:41,666 --> 00:34:43,966
of existing slottokens could be deluded

1032
00:34:43,966 --> 00:34:45,800
over time it's a possibility

1033
00:34:45,800 --> 00:34:48,466
but Solana's inflation rate is designed to decrease

1034
00:34:48,466 --> 00:34:52,366
over time and eventually reach a stable rate of 1.5%

1035
00:34:52,366 --> 00:34:55,066
so the inflationary pressure should gradually ease

1036
00:34:55,066 --> 00:34:55,700
but it's definitely

1037
00:34:55,700 --> 00:34:57,733
something that investors need to be aware of

1038
00:34:57,733 --> 00:35:01,000
okay so Solana has a lot going for its speed

1039
00:35:01,000 --> 00:35:03,333
low costs a vibrant ecosystem

1040
00:35:03,333 --> 00:35:05,066
but also faces some challenges

1041
00:35:05,133 --> 00:35:07,600
what's Coimbase's overall assessment of its prospects

1042
00:35:07,700 --> 00:35:09,800
so they acknowledge Salona's impressive growth

1043
00:35:09,800 --> 00:35:12,266
but they caution that its long term success will

1044
00:35:12,266 --> 00:35:14,533
depend on its ability to address these challenges

1045
00:35:14,533 --> 00:35:17,600
and transition from this meme coin driven market

1046
00:35:17,600 --> 00:35:21,066
to a more diverse and sustainable ecosystem

1047
00:35:21,266 --> 00:35:22,933
so it's a bit of a wait and see approach

1048
00:35:22,933 --> 00:35:23,700
yeah I mean

1049
00:35:23,700 --> 00:35:25,333
it's still a relatively young platform

1050
00:35:25,333 --> 00:35:26,333
so it'll be interesting to see

1051
00:35:26,333 --> 00:35:27,700
how it evolves in the coming years

1052
00:35:27,700 --> 00:35:29,966
okay let's shift our focus back to

1053
00:35:30,500 --> 00:35:32,400
the broader crypto landscape

1054
00:35:32,566 --> 00:35:34,333
Ivy regulation is on everyone's mind

1055
00:35:34,333 --> 00:35:36,866
and Coinbase provides a really

1056
00:35:36,866 --> 00:35:40,033
comprehensive overview of where things stand globally

1057
00:35:40,300 --> 00:35:41,700
what are the key takeaways

1058
00:35:41,700 --> 00:35:43,000
well it's a complex landscape

1059
00:35:43,000 --> 00:35:44,966
but one thing is clear the global

1060
00:35:44,966 --> 00:35:47,400
regulatory tide is turning in favor of crypto

1061
00:35:47,400 --> 00:35:49,833
we're seeing a shift from this wait and see approach

1062
00:35:49,933 --> 00:35:51,766
to a more proactive

1063
00:35:51,766 --> 00:35:54,366
and supportive stance from regulators around the world

1064
00:35:54,366 --> 00:35:55,666
that's good news for the industry

1065
00:35:55,666 --> 00:35:56,666
yeah it sounds like

1066
00:35:56,666 --> 00:35:58,900
the Wild West days of crypto are coming to an end

1067
00:35:58,900 --> 00:35:59,500
yeah me

1068
00:35:59,500 --> 00:35:59,900
and this

1069
00:35:59,900 --> 00:36:01,533
increased regulatory clarity

1070
00:36:01,533 --> 00:36:04,100
is paving the way for greater institutional adoption

1071
00:36:04,100 --> 00:36:06,466
and investment Coinbase highlights some interesting

1072
00:36:06,466 --> 00:36:07,766
regional developments

1073
00:36:07,766 --> 00:36:10,733
like the passage of the Fi t 21 Bill in the US

1074
00:36:10,733 --> 00:36:12,133
it seems like the US is finally

1075
00:36:12,133 --> 00:36:14,200
starting to catch up to other regions

1076
00:36:14,200 --> 00:36:15,566
in terms of creating a clear

1077
00:36:15,566 --> 00:36:17,100
regulatory framework for crypto

1078
00:36:17,100 --> 00:36:20,966
yeah they Fi t 21 is a major step forward

1079
00:36:21,000 --> 00:36:23,733
it provides some much needed clarity on key issues

1080
00:36:23,733 --> 00:36:26,200
like the classification of digital assets

1081
00:36:26,300 --> 00:36:28,133
and the division of regulatory authority

1082
00:36:28,133 --> 00:36:30,166
between the CFTC and the SEC

1083
00:36:30,600 --> 00:36:31,533
and Coinbase

1084
00:36:31,533 --> 00:36:33,800
believes that this will create a more favorable

1085
00:36:33,800 --> 00:36:35,600
environment for crypto businesses

1086
00:36:35,600 --> 00:36:37,000
and investors in the US

1087
00:36:37,000 --> 00:36:38,300
what about other parts of the world

1088
00:36:38,300 --> 00:36:39,633
any notable highlights

1089
00:36:40,166 --> 00:36:42,666
so the EU is leading the card with Mica

1090
00:36:42,666 --> 00:36:44,566
their comprehensive crypto regulation

1091
00:36:44,566 --> 00:36:47,000
that's being implemented across all member states right

1092
00:36:47,000 --> 00:36:48,533
Mica set standards for everything

1093
00:36:48,533 --> 00:36:50,700
from issuing and trading crypto assets

1094
00:36:50,700 --> 00:36:53,400
to the operation of crypto service providers

1095
00:36:53,400 --> 00:36:55,266
it's a really comprehensive framework

1096
00:36:55,266 --> 00:36:56,900
that aims to foster innovation

1097
00:36:56,900 --> 00:36:58,933
while also protecting investors

1098
00:36:58,933 --> 00:37:00,500
the EU is often ahead of the curve

1099
00:37:00,500 --> 00:37:01,466
when it comes to regulation

1100
00:37:01,466 --> 00:37:03,533
yeah it's interesting to see them taking signature

1101
00:37:03,533 --> 00:37:05,666
proactive stance on crypto

1102
00:37:05,666 --> 00:37:07,366
absolutely and they're not alone

1103
00:37:07,566 --> 00:37:09,266
the UK is also developing its own

1104
00:37:09,266 --> 00:37:11,100
comprehensive regulatory framework

1105
00:37:11,100 --> 00:37:13,466
while Hong Kong is positioning itself

1106
00:37:13,466 --> 00:37:15,200
as a global crypto hub

1107
00:37:15,200 --> 00:37:17,466
it sounds like we're seeing a global race

1108
00:37:17,666 --> 00:37:19,600
to create the most attractive

1109
00:37:19,600 --> 00:37:22,533
regulatory environment for crypto businesses

1110
00:37:22,533 --> 00:37:24,733
and investors it's an exciting time

1111
00:37:24,733 --> 00:37:27,200
and as these regulatory frameworks mature

1112
00:37:27,200 --> 00:37:30,266
we can expect to see a surge in institutional adoption

1113
00:37:30,266 --> 00:37:32,200
and mainstream acceptance of crypto

1114
00:37:32,200 --> 00:37:33,966
okay before we wrap up our deep dive

1115
00:37:33,966 --> 00:37:36,066
let's zoom in on Coinbase itself

1116
00:37:36,366 --> 00:37:36,966
their report

1117
00:37:36,966 --> 00:37:39,166
concludes with an update on their offerings

1118
00:37:39,166 --> 00:37:40,566
and their vision for the future

1119
00:37:40,566 --> 00:37:41,900
what are they up to so

1120
00:37:41,900 --> 00:37:44,333
Coinbase is making some significant investments

1121
00:37:44,333 --> 00:37:46,066
in its institutional business

1122
00:37:46,066 --> 00:37:48,700
okay recognizing the growing importance of this segment

1123
00:37:48,700 --> 00:37:49,100
so

1124
00:37:49,100 --> 00:37:51,333
they've launched a bunch of new products and services

1125
00:37:51,333 --> 00:37:52,800
tailored to institutional needs

1126
00:37:52,800 --> 00:37:56,166
like Coinbase Prime their prime brokerage platform

1127
00:37:56,366 --> 00:37:58,133
and Coinbase International Exchange

1128
00:37:58,133 --> 00:37:59,700
which offers a range of futures

1129
00:37:59,700 --> 00:38:02,366
and spot trading options to clients outside the US so

1130
00:38:02,366 --> 00:38:04,366
they're going all in on institutional adoption

1131
00:38:04,366 --> 00:38:06,666
absolutely and they're also focusing on making crypto

1132
00:38:06,666 --> 00:38:08,966
more accessible and user friendly

1133
00:38:08,966 --> 00:38:11,133
remember those smart wellants we talked about earlier

1134
00:38:11,133 --> 00:38:13,300
yeah Coinbase sees them as a key

1135
00:38:13,300 --> 00:38:15,066
enabler of mainstream adoption

1136
00:38:15,066 --> 00:38:17,000
right offering a much smoother

1137
00:38:17,000 --> 00:38:18,666
and more intuitive experience

1138
00:38:18,666 --> 00:38:20,633
for managing your crypto assets

1139
00:38:21,000 --> 00:38:22,200
so it sounds like Coinbase

1140
00:38:22,200 --> 00:38:22,666
is really

1141
00:38:22,666 --> 00:38:25,200
trying to position itself as the bridge between

1142
00:38:25,200 --> 00:38:26,866
the traditional financial world

1143
00:38:26,933 --> 00:38:28,300
and this new world of crypto

1144
00:38:28,300 --> 00:38:28,866
exactly

1145
00:38:28,866 --> 00:38:31,966
they wanna be the one stop shop for everything crypto

1146
00:38:31,966 --> 00:38:36,100
from trading and custody to education and innovation

1147
00:38:36,100 --> 00:38:37,500
and they're not just building for today

1148
00:38:37,500 --> 00:38:39,466
they're also looking ahead to the future

1149
00:38:39,666 --> 00:38:42,000
their report is full of references to

1150
00:38:42,000 --> 00:38:43,300
the convergence of crypto

1151
00:38:43,300 --> 00:38:45,966
and AI it's clearly a major focus for them

1152
00:38:45,966 --> 00:38:48,400
yeah they see it as the next frontier

1153
00:38:48,566 --> 00:38:50,066
they believe that crypto will be

1154
00:38:50,066 --> 00:38:51,966
the underlying infrastructure that powers

1155
00:38:51,966 --> 00:38:53,933
the AI driven economy of the future

1156
00:38:53,933 --> 00:38:54,700
okay I gotta ask

1157
00:38:54,700 --> 00:38:58,066
what does Coinbase see as their role in this future

1158
00:38:58,066 --> 00:39:00,566
where crypto and AI are all intertwined

1159
00:39:00,566 --> 00:39:01,900
they're positioning themselves

1160
00:39:01,900 --> 00:39:04,600
as the platform that will connect these two worlds

1161
00:39:04,600 --> 00:39:06,133
they wanna provide the tools

1162
00:39:06,133 --> 00:39:07,100
and the infrastructure that

1163
00:39:07,100 --> 00:39:10,100
enable developers to build this next generation of AI

1164
00:39:10,100 --> 00:39:12,800
powered applications on top of crypto networks

1165
00:39:12,800 --> 00:39:14,466
that's a bold vision it is

1166
00:39:14,466 --> 00:39:16,400
and while the future is always uncertain

1167
00:39:16,400 --> 00:39:18,866
Coinbase seems determined to be at the forefront

1168
00:39:18,866 --> 00:39:20,733
of this technological revolution

1169
00:39:20,733 --> 00:39:21,766
well this has been an incredible

1170
00:39:21,766 --> 00:39:23,700
deep dive into the future of crypto

1171
00:39:23,766 --> 00:39:25,200
we've covered so much ground

1172
00:39:25,200 --> 00:39:27,533
from market trends and regulatory developments

1173
00:39:27,533 --> 00:39:29,466
to cutting edge technologies

1174
00:39:29,466 --> 00:39:31,866
like layer twos and tokenization

1175
00:39:31,866 --> 00:39:33,866
both bitwise and Coinbase

1176
00:39:34,000 --> 00:39:37,933
paint a very optimistic picture of mainstream adoption

1177
00:39:37,933 --> 00:39:39,666
institutional investment

1178
00:39:39,666 --> 00:39:42,100
and the transformative power of crypto

1179
00:39:42,266 --> 00:39:44,466
it's clear that the crypto landscape is evolving

1180
00:39:44,466 --> 00:39:46,133
at an incredible pace and while there

1181
00:39:46,133 --> 00:39:46,933
will undoubtedly

1182
00:39:46,933 --> 00:39:49,333
be challenges and uncertainties along the way

1183
00:39:49,333 --> 00:39:51,400
the opportunities are immense

1184
00:39:51,500 --> 00:39:52,933
what's the one key take away

1185
00:39:52,933 --> 00:39:55,200
you want our listeners to remember from this deep dive

1186
00:39:55,200 --> 00:39:56,533
crypto is here to stay

1187
00:39:56,533 --> 00:39:58,566
it's reshaping the financial system

1188
00:39:58,566 --> 00:39:59,500
the internet

1189
00:39:59,566 --> 00:40:01,933
and the way we think about value and ownership

1190
00:40:01,933 --> 00:40:03,566
so whether you're a seasoned investor

1191
00:40:03,566 --> 00:40:05,566
or just starting to explore this world

1192
00:40:05,566 --> 00:40:07,333
it's essential to stay informed

1193
00:40:07,333 --> 00:40:10,033
stay curious and be a part of this exciting journey

1194
00:40:10,133 --> 00:40:12,400
those are words to live by in the crypto world

1195
00:40:12,733 --> 00:40:13,533
thanks for joining us

1196
00:40:13,533 --> 00:40:15,933
on this deep dive into the future of finance

1197
00:40:15,933 --> 00:40:17,766
we'll be back soon with another episode

1198
00:40:17,766 --> 00:40:20,300
exploring the cutting edge of tech and innovation

1199
00:40:20,300 --> 00:40:22,000
until then happy investing