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
welcome to episode 25
where we dive deep into Ethereum's journey
as the ultimate contrarian bet for 2025
from its growing dominance in decentralized finance
to its unexpected position in institutional portfolios
we explore why
Ethereum could redefine crypto narratives
and outpace expectations in the upcoming cycle
join us for this insightful discussion
alright welcome to another deep dive
you know
we love to take these deep dives in all things crypto
and today we're taking a look at Ethereum
and all the buzz surrounding its potential
especially as we look ahead to 2025
and for this deep dive
we've got some pretty interesting stuff to dig into
we've got this article it's called
how investors are likely to miss
the largest Alpha in crypto
in 2025 ethereum
and it's uh
it's pretty bold
and we've also got some social media posts
a lot of chatter online
some people are even going as far as saying
Ethereum could be at the heart of a quote
crypto rebirth and I gotta say
particularly in the US
it seems like there's something brewing
so what are we hoping to uncover
well like with all of our deep dives
we wanna find out what's real and what's height
so let's jump right in I mean
we've got to start with the basics
a lot of people still think of all cryptocurrencies
is basically the same thing
so what makes Ethereum stand out
why all the hype yeah
I think that's a really important point
you know it's easy to lump them all together
but the key with Ethereum is understanding that
it's not just trying to be a better bitcoin
it's really something fundamentally different
okay so not just another bitcoin competitor
what makes it so different
well ethereum goes beyond just being a digital currency
it's a platform that allows
for the creation and execution of smart contracts
and this opens up a lot of possibilities
smart contracts I've heard that term before
but I gotta admit
I'm not really sure I could explain it to someone
think of it like a digital agreement
but one that automatically enforces itself
so let's say you wanna buy a piece of digital art
with the smart contract on Ethereum
as soon as you make the payment
the ownership of that art would
automatically transfer to you
no need for a lawyer
or a middleman or anything like that
oh okay
so it's like a digital vending machine
but instead of spitting out a snack
it's handling all sorts of agreements and transactions
yeah yeah
exactly
a digital vending machine for complex transactions
I like that yeah
but instead of just snacks
you can handle loans and investments
manage supply chains
even create new types of digital assets wow
okay that is a lot more than just a better Bitcoin
it sounds like but getting back to the article
it seems like
some investors might be missing out on this potential
why is that yeah
well the article basically says that
a lot of investors are kind of stuck in this
you know buy and hold mentality like with Bitcoin
you just buy it and hope the value goes up
but with Ethereum it's not just about the price of ETH
it's about the platform's potential
it's about the applications being built on it
the innovations happening
so a different kind of investment approaches needed
looking at the long term vision
not just the short term price swings
but even with all that potential
I keep seeing concerns about things like scalability
in the environmental impact
are these valid concerns or is it just F U d
you know I think those concerns are definitely valid
they've been points of contention for a while
I mean any new technology goes through growing pains
right so imagine trying to build a highway
but there are already
thousands of cars speeding down it
that's kind of what early Ethereum felt like
you know the network was getting congested
transaction fees were going up and yeah
it wasn't the most energy efficient system okay
so kind of a victim of its own early success
what about all this talk about Ethereum 2.0
and this shift to proof of state
is that supposed to address some of these issues
absolutely ethereum 2.0 is a massive upgrade
and proof of state is a big part of that
it's basically a different way to
to secure the network and validate transactions
and it replaces that energy intensive
proof of work system that Bitcoin uses
okay that sounds promising
but how does this proof of stake actually work
so instead of using all that computing power
to solve these complex math problems
proof of stake lets users stake their eath
think of it like putting down a security deposit
and the more you stake the better
your chance of getting
selected to validate transactions
and when you validate you get rewarded
interesting so less energy consumption
potentially more scalable
sounds like they're tackling those issues hit on
but how does all this compare to bitcoin
I mean
a lot of people like bitcoin's simplicity and stability
right yeah
you're right bitcoin definitely has its appeal
a lot of people see it as digital gold
you know a store of value
ethereum though
it's more like a tech stock
it's about innovation rapid development
you know potential for massive growth
but that also means it can be more volatile okay
so bitcoin is like that safe
reliable investment yeah
and Ethereum that's the high growth disruptive company
I like that analogy but speaking of disruption
one of the social media posts mention this
spiritual side of Ethereum
what's that all about yeah
I thought that was interesting too
there's definitely a strong sense of community
with Ethereum the developers
the enthusiasts
they really believe in the power of blockchain
they see Ethereum as this platform to change the world
you know for the better
so it's not just about making money
it's about something bigger yeah
there's a real belief in its potential
to create a more decentralized future
more transparent more equitable
that kind of thing hmm
that's pretty cool and that passion probably drives
a lot of the innovation we're seeing on Ethereum
especially with things like layer 2 solutions speaking
which I saw this post about base surpassing Solana
inactivity can you explain what that means
I mean why is it such a big deal
yeah so remember those growing pains we talked about
like congestion and high fees
well
layer 2 solutions are designed to tackle those issues
they basically act like express lanes
you know running alongside the main Ethereum highway
handling transactions off chain
to speed things up and make them cheaper
so instead of everything being crammed onto the main
Ethereum blockchain
layer 2 takes some of the traffic off
makes the whole network more efficient
exactly and base is one of the most promising of these
layer 2 solutions
it uses this technology called optimistic roll up
basically bundles transactions together
and submits them to the main chain in batches
so it really reduces the load on the main network
okay I'm falling so far
but why is base beating Solana such big news
well
Solana was seen as this serious competitor to Ethereum
right they had high speeds
low fees some people even called it an Ethereum killer
but now with base surpassing Salona
it's like a sign that
Ethereum's approach to scaling is actually working
developers and users are choosing to stay on Ethereum
and use these layer 2 solutions
so it's a vote of confidence for the future of Ethereum
and then on top of all this
there's this buzz about
a crypto renaissance happening in the US
one post mentioned a shift of tether
that's USDT right
towards Ethereum what's that all about
right so tether or USDT is what's called a stable coin
basically a digital version of the US dollar
and people use it to quickly move in
and out of different cryptocurrencies
so the fact that more USDT is being held on Ethereum
it suggests that there's a renewed confidence in the US
market hmm
interesting but why would that be
well you know
regulation has been a huge hurdle for crypto in the US
a lot of uncertainty
back and forth about how it should be treated
it made investors hesitant
you know but this shift of USTT to Ethereum
it could be a sign that investors are getting more
comfortable like
they're betting that things are moving in a more
crypto friendly direction
okay
so they're putting their money where their mouth is
showing that they believe in
the future of Ethereum in the US
it's pretty amazing
how all these pieces are coming together
I mean we've got Ethereum evolving with proof of stake
layer 2 solutions gaining traction
and maybe a shift in the US regulatory landscape
it does feel like we could be on the verge of something
big yeah
it's definitely a possibility
but before we get ahead of ourselves
it's important to remember that investing in crypto
especially a platform like Ethereum
you gotta be smart about it
okay good point
what should investors keep in mind
I think the most important thing is
don't get swept up in all the hype
you know
it's easy to get excited and make impulsive decisions
do your research understand the technology
the risks the potential rewards right
not a get rich quick scheme
you gotta understand the tech
so what kind of research should people be doing
I think a good place to start is
diving deeper into Ethereum itself
learn how these smart contracts work
the different applications
the development of Ethereum 2.0
then look at the competition
you know Solana
other blockchains compare their approaches
their strength and weaknesses
and of course pay attention to the regulatory landscape
any new developments okay
so be an informed investor
it's not just about buying and holding
it's about engaging with the technology
the community exactly
the crypto world is constantly changing
so you gotta stay in form
to really understand Ethereum's potential right
okay I'm getting that message loud and clear
so we've talked about the tech
the community the potential risks and rewards
but why should the average person
someone who's not a tech expert or a crypto enthusiast
why should they care about Ethereum
that's a great question
and it's one that will explore more
as we continue this deep dive
because
even though Ethereum might seem like a complicated
technical topic it really has
implications that reach far beyond just
the world of finance and technology
okay now you've really got me hooked
I can't wait to hear more about
how this connects to the bigger picture
think about how we use the internet today
you know we rely on these centralized platforms
for almost everything social media
e commerce our finances
it's all controlled by a handful of companies
yeah you're right
it's like we're stuck in these walled gardens
controlled by these tech giants
exactly and that's where Ethereum comes in
it offers a different vision
a more decentralized future
where individuals have more control over their beta
their finances their online experiences
imagine a world
where you could easily send money across borders
without crazy fees
where you own and manage your own digital identity
no third party needed
where you participate in online communities
that are governed fairly and transparently
wow that's a pretty big shift
but how does Ethereum actually make that happen
well it all goes back to the smart contracts
we were talking about yeah
because they're self executing and tamper proof
they can automate complex processes
and they create trust between parties
without needing a middleman
okay I'm starting to see the potential here
can you give us some specific examples of
how this could work in the real world
sure let's take decentralized finance
defi for example
right now if you want a loan or to invest
you have to go through a bank right
they're the middleman they set the terms
they take their cut but with Defi on Ethereum
you can access financial services directly
through these smart contracts
cut out the middle man potentially get better rates
more control so it's like peer to peer finance
but powered by blockchain technology
exactly and it's not just loans and investments
DFI is creating
entirely new financial instruments and markets
okay that's pretty amazing
and I'm guessing Defi is just one example
what other areas could be impacted by Ethereum
oh the possibilities are huge
I mean we're already seeing NFTs
change the world of digital art
and collectibles but the same technology
can be applied to things like real estate
supply chain management even voting systems
really
anything where trust and transparency are essential
wow this is way bigger than I initially thought
it's not just another cryptocurrency
it's like a whole new infrastructure for the internet
a more decentralized more democratic platform
it is a pretty ambitious vision
and of course like with any grand vision
there are challenges along the way right
we talked about those risks earlier
what are some of the biggest hurdles Ethereum faces
while scalability is still a major concern
even with the progress being made on layer 2 solutions
as more people use Ethereum
the network needs to be able to handle
a massive amount of transactions
then there are security concerns
the blockchain itself is very secure
but smart contracts can be vulnerable
to bugs and exploits
and then there's the regulatory landscape
which is constantly changing
it sounds like there's still a lot of uncertainty
yeah for sure
this isn't an investment for someone who's risk averse
but for those willing to do their research
understand the risks and really take a long term view
ethereum offers a chance to be part of something
truly transformative okay
so let's talk about that long term view
we were focusing on 2025 but what about beyond that
what's on the roadmap for the future
well one of the most anticipated things is
the complete rollout of Ethereum 2.0
it's a series of upgrades that will improve scalability
and security but also introduce a bunch of new features
like what kind of features
well what exciting one is sharding
it basically
divides the Ethereum network into multiple shards
so transactions can be processed in parallel
so you get much higher
through put lower transaction fees
and there are also plans for better privacy features
making it easier to protect data
and controlled digital identities
so Ethereum's not just a static platform
it's constantly evolving exactly
the community is very active in innovative
always new ideas and projects
it is fascinating to see all the innovation
but with so much change it can be hard to keep up
what areas are you most excited about
what do you think will have the biggest impact
in the years to come well
I'm really interested in the development of these
layer 2 solutions we talked about base
but there are so many other promising technologies
emerging as they mature
they'll be crucial for scaling Ethereum
and making it more accessible
sounds like layer 2
is key to unlocking Ethereum's full potential
what else you keeping an eye on
another area is the growth of DAOs
decentralized autonomous organizations
there are organizations governed by rules
written in smart contracts
no more traditional hierarchies
it's a new way to coordinate and collaborate
could really revolutionize
how we think about organizations
yeah DAOs have been getting a lot of attention lately
yeah how are they being used right now
well
they're being used for things like managing investment
funds creating community owned platforms
even funding scientific research
it's still early days
but it's a really interesting experiment
in decentralized governance
so much experimentation and innovation happening
it's really different from the early days of crypto
all about speculation getting rich quick
yeah ethereum has matured a lot
it's not just a playground for techies anymore
it's becoming a real contender for
the future of the internet
and with that maturity comes a lot of responsibility
right yeah
we've talked about the risks and challenges
but what about the ethical considerations
as this technology gets more powerful
how do we make sure it's used for good
that's a really important question
like any powerful tool
Ethereum can be used for both good and bad
we need to have open conversations about its potential
impact on society what are some of the ethical concerns
people are raising well
one concern is bias and discrimination
if algorithms are making decisions
and things like finance or healthcare
we need to make sure those algorithms are fair
then there are worries about privacy and surveillance
as more of our lives move on to the blockchain
we have to protect privacy
make sure it's not used for mass surveillance
these are some serious issues to think about absolutely
technology is just a tool
we as a society have to decide how we wanna use it
and to make informed decisions
we need to understand the technology
that's why these deep dives are so important
to explore these topics
and have these conversations about the future
the more we understand
the better equipped will be to shape this technology
and make sure it benefits everyone
well said
we've covered a lot of ground in this deep dive
it's been really informative
but before we wrap up
I wanna go back to something you mentioned earlier
you said ethereum
offers a different vision for the internet
a more decentralized in democratic future
can you talk more about that
what does that future look like
and how does Ethereum help us get there
I think
it's really about shifting that balance of power
you know away from those big
centralized entities and towards individuals
like right now
we're so used to relying on these big tech companies
for everything communication entertainment
banking even our online identities
it gives them so much control over our data
and our online experiences
it looks like they have all the cards exactly
but Ethereum it's like
envisioning a world
where we can just interact directly with each other
without needing those middle men
those gatekeepers hmm
sounds pretty idealistic
but how do we actually get there
from this centralized internet
to something so different
it's not gonna happen overnight for sure
but we're already seeing the pieces coming together
Ethereum it provides the infrastructure for this
more decentralized internet
we can create applications and services that operate
peer to peer no need for centralized control okay
take social media for instance
imagine a decentralized social network
you own your data you control your privacy
no algorithms deciding what you see
no central authority censoring content
oh wow
that sounds pretty good actually yeah
especially with all the concerns about
privacy and censorship on these big platforms right
and that's just one example
we're seeing similar things happening in finance
gaming even governance
remember those DAOs we talked about
experimenting with new ways to organize
and make decisions all decentralized
so it's not just about replacing existing services
it's about opening up entirely new possibilities
exactly Ethereum is this platform for innovation
and experimentation
developers can really push the boundaries
and build the tools for the future of the internet
it's exciting to think about
but let's be real
there are some really powerful players
who benefit from the centralized model yo yeah
do you really think they're just gonna
let Ethereum disrupt everything
it's definitely gonna be a fight
change is never easy
but the momentum is there
more and more people are realizing
the limitations of the current system
they're looking for alternatives
and Ethereum is becoming a real contender
it's like that classic David and Goliath story
yeah kind of
but Ethereum has some unique advantages right
it's open source it's decentralized
it's got this passionate community behind it
it's incredibly resilient
hard to control or suppress
like you can't just shut it down
exactly
it's not relying on any one company or organization
it's a distributed network
powered by thousands of people all over the world
so what can we do as individuals
how can we support this move towards a
more decentralized future
I think the most important thing is education
learn about this technology
explore the Ethereum ecosystem
try out some decentralized apps
the more people understand and use it
the faster it will grow right
so it's not about being a tech expert
nope it's about empowering individuals
it can feel a bit overwhelming with all the tech
Jarrigan but it's about something much bigger
absolutely technology should serve people
not the other way around and
Ethereum has its potential to create a more equitable
more accessible more empowering digital world
I like that it's a called action
it is
the future isn't something that just happens to us
it's something we create well said
so there you have it folks
a look into the world of Ethereum
and its potential to change the internet as we know it
it is a complex and constantly evolving space
what full of possibilities
if you wanna learn more
there are tons of resources online
The Ethereum Foundation
website is a great place to start
yeah and there are articles
videos podcasts
all dedicated to this technology
and don't be afraid to jump in and try things out
download a wallet experiment with decentralized apps
join a community
best way to understand it is to experience it
yeah and don't be shy about reaching out
and asking questions
the crypto community is full of people
who are happy to help
this is really just the start of a much bigger
conversation the future
the internet is being written right now
and Ethereums playing a huge role in that
so stay curious stay informed and stay engaged
the future is ours to create
thanks for joining us on this deep dive into Ethereum
until next time keep exploring