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welcome to Episode 30 of the money is freedom podcast
bitcoins breaking records
stablecoins are outpacing visa
and Ethereum's scaling revolution is here
we unpack key insights from Arkan Vest's Big Ideas 2025
including Bitcoin's path to 1.5 million
the rise of stablecoins and Solana's comeback
a huge thanks to Ark
Invest for their in depth research and analysis
you can check out the full report
and more of their insights at arc invest
com let's dive in
hey everyone and welcome to the Deep Dive
today
we're gonna be taking a look at the world of crypto
in 2025 specifically
we'll be focusing on Bitcoin and stable coins
we're using excerpts from Ark Invests
Big Ideas 2025 report for this one
oh yeah
Ark Invest they always put out really interesting stuff
yeah they do a ton of research
yeah their reports are always just packed with
all sorts of data and
you know projections
and some
really interesting insights into what they're seeing
I think the biggest takeaway here is just
how much the crypto world is evolving
it really is it's changing so fast
and it's really starting to look a lot more
well grown up I guess you could say
yeah it's really maturing
bitcoins hitting major milestones
sterer
coins are starting to rival the big boys like visa
in terms of transaction volume
it's amazing to see how much has changed
you know in just a few short years
yeah I think
we're really watching traditional finance and crypto
kind of become increasingly intertwined
yeah and I think the implications of that are
are pretty huge yeah
and that's a big part of what we're gonna be
exploring today so let's break it down
first up bitcoin had a huge GE 2024
not only did it reach a new all time high price
but it also went through its fourth having
yeah that having is a really key event for
for Bitcoin basically
what it means is that
the rate at which new bitcoins are created
gets cut in half so it makes it even scarcer over time
and as you know scarcity
you know often drives value right
what I think is really interesting is that
even though minor revenue was cut in half
after the having
the network's hash rate actually hit an all time high
now if you're not familiar with hash rate
um think of it as basically
like a measure of Bitcoin security
the higher the hash rate
the harder it is for somebody to
you know attack the network
so
even though miners are earning less bitcoin per block
they're still investing heavily in
the security of the network
she thinks
signals a lot of confidence in bitcoin's future
yeah I mean
it definitely seems like a pretty
strong sign that they're still willing to invest
all that money yeah
even though you're getting less bitcoin out of it
and speaking of confidence
remember the Man Gogh situation
oh yeah
that bitcoin exchange that collapsed
yeah years ago
well they finally started paying back creditors
over $9 billion worth of bitcoin
the crazy part is the market barely flinched
it just absorbed this massive influx of bitcoin
like it was nothing
which really showcases Bitcoin's resilience
and its ability to handle these large scale events
yeah it
really is a testament to how much
the market has matured now
zooming out to the institutional landscape a little bit
more and more public companies are
adding bitcoin to their balance sheets
yeah the total value of these holdings has skyrocketed
I think it's up to some like $55 billion now
which is a five fold increase compared to 2023
wow yeah
that's huge
micro strategy is definitely leading the charge here
they've got a mind blowing
58 point seven % of their market cap in Bitcoin
it's crazy which is wild
yeah and it's not just corporations
who are in it for the long haul either
individual investors
are holding onto their Bitcoin longer too
the velocity of Bitcoin
which measures how quickly it changes hands
hit a 14 year low wow
so
people aren't just using Bitcoin to make quick trades
anymore they're starting to see it as this long term
store of value like a digital version of gold
that's right that's a crucial shift in perception
but don't think for a second
that things are slowing down
oh absolutely not
the pace of innovation in the cryptoworld is only
accelerating
now let's shift gears a little bit
and talk about stablecoins
2024 was a breakout year for them
say the least get this
their transaction values surpass both Mastercard
and visa yeah
we're talking a massive like
$15.6 trillion flowing through stablecoin channels
which is more than double the volume of visa
that's insane I mean
we're still early in the adoption curve
yeah the trend is undeniable Salonatron
Ethereum and base
were the leading block chains for stablecoin volume
setting new records in December
but
it's not just about the sheer volume of transactions
what's really exciting is the incredible innovation
happening within the stable coin ecosystem itself
okay now
this is where it gets really interesting for me
Athena Labs hmm
a rising star in the stablecoin space
has figured out a way to tokenize
a popular trading strategy called a basis trade
I know that sounds complex
but bear with me for a second
essentially
Athena Labs is offering attractive yields of 20%
30% by finding clever ways to generate returns within
the stablecoin market itself
so they're basically
finding new ways to make money with stablecoins
which you know
have traditionally been seen as just
a way to hold a stable value
exactly and that's what makes Athena Lab so fascinating
they're really
pushing the boundaries of what's possible
with stable coins
turning them into a platform for financial innovation
this has the potential to create
entirely new investment opportunities
that were previously unavailable
yeah it really shows how stable coins are evolving
beyond just digital dollars
they're becoming these building blocks for a whole new
financial system but
what about the relationship between stable coins
and traditional finance
that's where things get really intriguing
you know we're seeing some countries
moving away from the US dollar
a trend called de dollarization
but at the same time
the crypto world is embracing the US dollar
through stable coins so
could stable coins
potentially increase demand for US dollars
even as some countries are trying to move away from it
it's a fascinating paradox
and I think it could have a significant
impact on the global monetary system
we're already seeing this play out
circle and tether the two largest stablecoin issuers
are among the top 20 holders of US Treasuries
wow I never thought about it like that
it's almost like the crypto world is mirroring
and reshaping the traditional financial system
at the same time it's a delicate dance
and we're only just beginning to see the steps unfold
alright so we've got Bitcoin act like digital gold
stable coins potentially boosting the US dollar
but what about the everyday user
how are stable coins impacting their lives
well stable coins are becoming much more accessible
thanks to layer 2 solutions like arbitram and optimism
now to break that down for our listeners
layer 2 solutions are like
building express lanes
on top of the existing blockchain highway
they make transactions cheaper and faster
especially for smaller amounts
exactly and this is really crucial for mass adoption
you know while
Ethereum's base layer is still the preferred platform
for institutional players
and large transactions
layer two's are really catering to everyday users
who need speed and affordability
so we're seeing this kind of two tiered system emerge
with different blockchains
serving different needs it's like having
you know a high speed train and a local subway system
both are valuable
but they cater to different types of commuters
that's a great analogy and this two tiered system
really allows the crypto ecosystem to grow
and adapt to meet the needs of both
you know institutional players and everyday users
and it's not just about the blockchains themselves
we're also seeing a shift in how people trade crypto
decentralized exchanges or DX
are really
giving centralized exchanges a run for their money
yeah dxs are generally more efficient
they're often run by much smaller
more agile teams and they offer a level of transparency
that centralized exchanges
sometimes struggle to match
yeah Uniswap
Aerodrome
and radium are some of the big names in the d X space
and get this
they're operating with incredibly lean teams
compared to centralized exchanges like Binance
which have thousands of employees
it really shows how
efficient these decentralized platforms can be
it's quite remarkable
how much they can achieve with limited resources
hmm but innovation isn't limited to exchanges
we're also seeing it at the blockchain platform level
ethereum the original platform for smart contracts
and decentralized applications
is constantly evolving especially
with the growth of those layer
2 solutions that we were just talking about
yeah and those upgrades to layer
twos are making a big difference
they're drastically reducing transaction costs
making them even more appealing to users
take base for example
Coinbase's layer 2 solution
has captured a huge chunk of the layer 2 market
in a very short time Base's success
really shows just how much demand there is
for scalable and affordable blockchain solutions
but Ethereum isn't the only platform innovating
Solana is another blockchain making waves
Solana's all about speed right
super fast transaction processing
exactly that's one of its key advantages
and it's attracted a growing developer community
Salona is also constantly innovating
they've developed a new client called firedancer
which could potentially boost its transaction through
put even further so
it sounds like we're witnessing this kind of
evolutionary arms race in the blockchain world
in a way we are
and that competition is driving incredible progress
which ultimately benefits the entire ecosystem and
of course the users
okay so we've covered a ton of ground here
from Bitcoin hitting all time highs
to stablecoins overtaking visa in transaction volume
it's clear that the crypto landscape is
changing rapidly
and the pace of innovation is only accelerating
but before we get ahead of ourselves
let's take a breath and try to summarize
the key takeaways for our listeners
alright let's synthesize
what we've Learned about the crypto landscape
so far
it's mind blowing how much has happened in just a year
bitcoin hitting new all time highs
stable coins
surpassing traditional payment processors in volume
it's like we're watching a financial revolution unfold
in real time and it's not just about the numbers
we're also seeing a fundamental shift in how these
assets are perceived yeah
bitcoin is solidifying its role as a store of value
almost like digital gold while
stable coins
are becoming increasingly integrated into the
very fabric of the global
financial system you mentioned earlier
how stable coins
could actually be driving demand for US Treasuries
that's a wild concept to wrap my head around
think about it this way
as stable coin adoption continues to grow
particularly in emerging markets
the demand for the underlying collateral
in this case US dollars could increase dramatically
this in turn
could lead to a greater demand for US Treasuries
which are considered a safe haven asset globally
so even as some countries
are trying to move away from the US dollar
stablecoins could actually be strengthening as Dominus
that's a pretty big so what insight for our listener
exactly it highlights the complex
and sometimes counterintuitive
forces at play in the global monetary system
but
let's zoom back in on the user experience for a moment
what start out to you
about how people are interacting with stable coins
well the rise of layer 2 solutions is a game changer
for accessibility
they're making stable coin transactions
much cheaper and faster for everyday users
which is absolutely crucial
for talking about mass adoption
and what's fascinating
is how a two tiered system is emerging
Ethereum's base layer remains
the go to platform for institutional players
and high value transactions
while layer
twos are catering to the needs of retail users
who prioritize speed and affordability precisely
it's a fantastic example of how the blockchain
ecosystem is adapting
to meet the diverse needs of its users
in speaking of adapting
we can't forget the rise of decentralized exchanges
or DXs they're really challenging
the dominance of centralized exchanges
by offering greater efficiency and transparency
dxs are a testament to
the power of decentralized innovation
they're often run by small
highly agile teams that can move and iterate
much faster than their centralized counterparts
and that efficiency is reflected in their head count
some of the biggest
DXs have a fraction of the employees
compared to centralized giants like Binance
talk about lean and mean it's truly remarkable
how much they can achieve with limited resources
but innovation isn't limited to exchanges right
we're also seeing it at the blockchain platform level
Ethereum
the OG smart contract platform is constantly evolving
and a lot of that evolution
is happening on those layer twos
we were just discussing those
upgrades to layer twos have been huge
for reducing transaction costs
and bathe Coinbase's layer 2 solution
is a perfect example of how quickly these platforms
can gain traction Base's success is a clear
sign of the growing demand for scalable
and affordable blockchain solutions
but Ethereum isn't the only platform
pushing the boundaries Solana
with its high speed transaction processing
and growing developer community
is a serious contender in this space
Solana's unique architecture and focus on performance
definitely set it apart
and with its new firedancer client
it has the potential to scale to even greater heights
in terms of transaction through put
it's almost like we're watching an evolutionary
arms race unfold in the blockchain world
right
and this competition is fueling some amazing progress
but let's not forget about the
applications being built on top of these blockchains
we've seen some really cool developments there as well
absolutely one of the standout trends of 2024
was the rise of prediction markets
particularly Polymarket
it shows that there's a real appetite for
decentralized platforms
that allow people to express their opinions
and potentially profit from their predictions
Polymarket's focus on elections in politics
was particularly fascinating
it demonstrated how blockchain technology
can be used to facilitate
open and transparent discussions on important
social and political issues
and their platform isn't limited to just politics right
they're expanding into other areas like sports
pop culture
and even science creating a truly diverse ecosystem
which speaks to the broader trend
of blockchain applications
moving beyond those initial financial use cases
were now seeing exciting applications in gaming
social media identity management
and even infrastructure the possibilities seem endless
but one thing that struck me is particularly important
is the role of developer activity
in the success of these platforms
you mentioned earlier that Solana
and base are attracting a lot of developers
yeah developer mine shares absolutely crucial
these are the people who are building
the next generation of decentralized applications
and they're gravitating towards platforms that offer
the best combination of speed
scalability and a supportive community
and with the ever growing interest in the crypto space
it seems like there's no shortage of talent
eager to jump in and build
which brings up a really important question
what does all of this mean for the future of the crypto
ecosystem where you see things headed
that's the million dollar question
isn't it it is
while it's impossible to predict the future
with certainty
I think we can draw some interesting conclusions
based on the trends we've been discussing
alright
hit me with your crypto crystal ball predictions
well I wouldn't call them predictions exactly
more like informed speculations
based on what we're seeing in the data
I think it's safe to say that we're entering a new era
of maturity and integration for the crypto space
so we're moving beyond those Wild West days of crypto
I think so we're seeing greater institutional adoption
more robust regulatory frameworks
and a growing recognition of the potential
benefits of blockchain technology
and with immaturity comes greater responsibility right
both for the platforms themselves and for the users
absolutely as the crypto
ecosystem becomes more integrated
with the traditional financial system
the stakes become higher
we need to ensure that these platforms are secure
transparent and accountable
and that users are educated about the technology
and understand the risks involved precisely
but with those risks come incredible opportunities
were still in
the early innings of this technological revolution
and the potential for innovation is vast
I'm excited to see what the future holds
but before we get too carried away with speculation
let's bring it back to the prison halls
we've covered a lot of ground in this deep dive
is there anything else from the Ark
report that you think is particularly relevant
for our listener yes
actually there's one more point that I think
is especially important to highlight okay
let's hear the report emphasizes
the potential for stablecoins to become
a significant force in the global monetary system
we touched on this earlier
but I'm eager to dive a little deeper
what exactly do they mean by significant force
well Air
K's research suggests that stablecoins could grow
from their current market cap of $203 billion
to a staggering $1.4 trillion by 2030
that's a massive increase
what would that kind of growth mean in practical terms
if that projection holds true
stablecoins would become the 13th largest currency
in circulation globally
surpassing the currencies of countries like Spain
and the Netherlands wow
that's a pretty bold prediction
it is but it's not entirely outlandish
when you consider
the rapid pace of stablecoin adoption
we've witnessed in recent years
and you mentioned earlier
how stablecoins could actually be driving demand
for US Treasuries they would definitely
give them a significant role in global finance
exactly it's a fascinating dynamic to watch unfold
okay my mind is officially blown
this deep dive has been a whirlwind of insights
and eye opening statistics
it's amazing to see how quickly
the crypto landscape is changing right
and it's clear that both bitcoin and stablecoins
are playing a major role
in shaping the future of finance
but I have to ask
what does this all mean for our listener
why should they care about these trends
that's a great question
I think the key takeaway for our listener is this
the crypto world is not some abstract far off concept
it's already having a profound impact on the global
financial system
and that impact is only gonna grow in the coming years
so whether you're a seasoned crypto investor
or just starting to explore this space
it's crucial to stay informed
and understand the forces at play
absolutely knowledge is power
especially in a rapidly evolving field like crypto
will said
but this deep dive hasn't just been about knowledge
it's also been about sparking curiosity
and encouraging
our listener to think critically about the future
what's one final provocative thought
you'd like to leave our listener with
hmm that's a tough one
but if I had to choose I'd say this
pay close attention to
the interplay between stablecoins
and central bank digital currencies
or cbdcs oh
that's an interesting one
for those who aren't familiar
cbdcs are essentially
digital versions of fiat currencies
issued by central banks how do you see
stable coins in CBDC's interacting in the future
that's the million dollar question
isn't it will they coexist peacefully
or will they compete for dominance
could we see a world where stable coins
issued by private companies
are eventually replaced by CBDC's
backed by governments it's certainly a possibility
but it's also possible that stable coins and Cvdcs
will find ways to complement each other
each serving different needs
within the global financial system
it's like a financial thriller waiting to unfold
I guess
we'll just have to wait and see how this story plays
out indeed
the future of money is being written as we speak
and it's a fascinating time to be alive
well that was quite a journey
yeah we really went deep on that one
I don't know about you
but I'm still processing all that information
it's a lot to take in for sure
the crypto landscape is just evolving
at such a rapid pace it's hard to keep up sometimes
yeah it really is
but that's what makes it so exciting right
absolutely
we're witnessing a financial revolution unfold
right in front of our eyes
yeah
and it's really anyone's guess what the future holds
true but I think one thing is for sure
the trends we've talked about today
have the potential to really reshape the
global financial system as we know it
yeah and that's really why we do these deep dives
we wanna give you the information in
the insights you need to navigate this new world
exactly we want to empower you
to make informed decisions about your finances
and your future so
as we wrap up this episode
I wanna leave you with a few questions to ponder
what aspect of this crypto evolution intrigues
you the most are you a Bitcoin believer
drawn to its decentralized nature
and potential as a store of value
or are you more fascinated by stable coins
and their potential to revolutionize payments
and global finance it's a fascinating space
and no matter what your stance is
one thing's clear
the crypto space is not slowing down anytime soon
and neither are we
we'll be back soon with more deep dives
and the most important trends shaping our world
until then keep exploring
keep learning and most importantly
stay curious thanks for joining us on the deep dive
we'll catch you next time