Michael Greenwald (Tiedemann Advisors) on the Dollar as a Policy Tool (EP.196)

Michael Greenwald is a former U.S. Treasury official with expertise in sanctions programs and using USD infrastructure to promote policy objectives. In this episode: 

  • What the weaponization of the dollar really means
  • How sanctions mechanically work
  • How Treasury and the State Dept carry out sanctions
  • The risk of sanctions wearing blunt as a tool 
  • The growth of sanctions post 9/11
  • How sanctions against Russia represented a sea change in policy
  • How the US deputizes SWIFT for sanctions
  • How and why Europeans tried to route around US sanctions on Iran
  • Is the US led international order fraying?
  • China’s attempt to build a parallel financial infrastructure to challenge the dollar
  • The objectives of the Belt and Road Initiative
  • The purpose of the digital yuan
  • Can the yuan challenge the primacy of the dollar in the international system?
  • How China uses the belt and road initiative to advance the yuan
  • How the US should react to China’s aggressive move into closer economic relationships with the third world
  • What a digital US dollar or CBDC might look like
  • How the US can reassert dominance in the international sphere
  • Michael’s thoughts on stablecoins and Bitcoin

Read Michael’s paper, The Future of the US Dollar

Sponsor notes: Copper is transforming how institutional investors engage with digital assets by developing award-winning custody and next-gen trading infrastructure. Headquartered in London, the firm is scaling rapidly across Asia and North America to bring its suite of products to a wider pool of institutional investors. To learn more visit copper.co or reach out on Twitter, @CopperHQ

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Weekly Roundup 04/02/21 (Our Dice Crisis, Paypal opens Bitcoin to Merchants, USA Retail CBDC?) (EP.201)

Nic and Matt return for news and deals of the week. In this episode: 

  • A crisis with our dice manufacturers
  • Visa will enable USDC settlements on their payment network
  • Paypal turns on Bitcoin payments for 29m merchants
  • Are Paypal transactions actual Bitcoin expenditures?
  • Sillvergate working with Fidelity to provide Bitcoin-backed loans
  • SEC charges LBRY with securities law violations
  • Are founders taking the wrong lessons from SEC inaction?
  • Jay Clayton is now advising OneRiver on their digital asset strategy
  • Tether publishes a new attestation
  • The merit of real time attestations for stablecoins
  • The CME launches a Bitcoin microfutures
  • The Boston Fed will be open sourcing some of their CBDC code
  • Will we ever get a retail CBDC in the USA?
  • NFTs make it to SNL
  • A new pasta shape just dropped
  • Nic syncs his Umbel node

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Rafael Cosman (TrustToken) on Uncollateralized On-Chain Lending (EP.200)

Rafael Cosman, cofounder and CEO of TrustToken, joins the show to talk stablecoins and TrueFi, their non-fully collateralized lending protocol. In this episode: 

  • TrustToken’s various stablecoins that they administer
  • The real-time stablecoin attestations TrustToken has done with Armanino
  • How a real time attestation works
  • Why the USD is so disproportionate in market share among stablecoins
  • Why DeFi is potentially the killer app for stablecoins today
  • Why Trust Token built a global fx currency basket
  • Why overcollateralized lending doesn’t necessarily constitute lending in the traditional sense
  • How TrueFi introduces uncollateralized lending into DeFi
  • How underwriting and credit creation works in a public blockchain context
  • How legal contracts are introduced into DeFi
  • Howo the TrueFi system incorporates revisions in creditworthiness
  • How on-chain credit scores could proliferate and be used on a cross-platform basis
  • How privacy is compatible with on-chain credit scoring
  • Rafael’s explanation for structurally high interest rates in DeFi
  • The contrast between crypto yields and legacy yields

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James Davolos (Horizon Kinetics) on Betting on Inflation (EP.199)

James Davolos, VP and portfolio manager at Horizon Kinetics, joins the show to make the case for inflation and to explain their Inflation Beneficiaries ETF, ticker $INFL. In this episode: 

  • How Horizon and Murray Stahl were one of the earliest asset managers to put client assets in GBTC
  • How Horizon’s value approach landed them at a Bitcoin allocation
    James’ reaction when Horizon first made the Bitcoin allocation
  • Whether Bitcoin is a growth or a value asset, and how to reason about it from either perspective
  • James’ reaction to Jerome Powell’s announcement on rates
  • The genesis of the idea to create an inflation beneficiaries ETF
  • James’ case for inflation
  • Should the disinflationists be taking victory laps?
  • Why the Fed is calling inflation ‘transitory’
  • Why we didn’t get inflation from 2010-20
  • What crystallized the case for inflation for Horizon Kinetics?
  • The importance of the ‘taper tantrum’
  • Why historical parallels are so hard to find – and why we have no historical precedent for our current moment
  • How the dollar is the ‘least rotten apple’
  • The prospects for a non-dollar monetary system
  • The effect of ESG on commodity cycles
  • How fiscal spending and the political anti-capital movement represents a structural shift
  • The constant battle between capital and labor
  • Why equities may suffer from higher labor costs
  • Why Horizon focuses on asset light companies
  • James’ answer to the equity-inflation return puzzle
  • Horizon’s specific allocations to benefit from inflation
  • The early success of the Inflation Beneficiaries ETF
  • Why the inflation beneficiaries ETF does not contain Bitcoin
  • How this ETF sets itself apart from other ways to play inflation – and why TIPS aren’t the best bet
  • Is the thesis playing out so far?
  • Why the Fed has to remain subtle with their debasement
  • James’ pitch to Bitcoiners 

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Weekly Roundup 03/26/21 (The most violent people on earth, Fidelity’s Wise Origin ETF, can GBTC be saved?) (EP.198)

Nic and Matt are back for another blockbuster week. In this episode: 

  • How Nic ended up being labeled the most violent person on Earth
  • Fidelity files for their Wise Origin Bitcoin ETF
  • The significance of Fidelity’s filing today
  • Can the GBTC product actually be redeemed by a majority of shareholders?
  • Amendments to the GBTC charter
  • Odds of the SEC finally seeing the light on the ETF
  • Why an ETF approval is more urgent than ever
  • The toppiest top signal ever making us nervous
  • FATF is back with a vengeance
  • Jack Dorsey includes a Blockclock in his Congressional testimony
  • Is Bitcoin a battery?

Content mentioned: 

This episode is brought to you by Sovryn, DeFi on Bitcoin.

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Dan Tapiero (10T Holdings) on Macro, Crypto and Growth Equity (EP.197)

Dan Tapiero, the Managing Partner or 10T Holdings joins the show. In this episode we discuss:

  • Dan’s pre-crypto career as a macro manager and entrepreneur and the path that led him to founding 10T Holdings
  • The institutional narrative for Bitcoin and cryptoassets and how this thesis interplays with gold
  • Views on layer one smart contract platforms and how to think about value accrual on these networks
  • How Dan is approaching growth stage opportunities in this industry

To learn more about 10T visit: 10tfund.com

Follow Dan on Twitter @DTAPCAP

 

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Weekly Roundup 03/19/21 (NYDIG’s rumor, NFT taxonomies, BoFa’s bad Bitcoin report) (EP.195)

Nic and Matt return for another week of deals and news. In this episode: 

  • We announce onthebrink.shop
  • What was Robby Gutmann from NYDIG rumoring on our recent episode?
  • Morgan Stanley opens up their platform to Bitcoin funds
  • A new taxonomy for NFTs
  • Bridging the gap between NFT fans and skeptics
  • Why NFTs are not bearer assets and are liabilities of an issuer
  • We break down a popular thread debunking NFTs
  • Bitmex Research publishes a book on the blocksize war
  • BoFa publishes a very bad report on Bitcoin
  • India dithers on their cryptocurrency ban
  • The parallels between the crypto wars of the 90s and state bans today
  • Is there a double standard for Bitcoin versus other ETFs at the SEC?
  • Is Gensler a grey swan for crypto markets?
  • The SEC is officially on the clock for a new ETF application
  • Why FTX should not buy the naming rights to the Miami Heat stadium

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This episode is brought to you by Sovryn, DeFi on Bitcoin.

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Dennison Bertram and Raf Solari on Reforming DeFi Governance (EP.194)

Dennison Bertram and Raf Solari, the founders of Tally join the show. In this episode we discuss:

  • Dennison and Raf’s career journeys into crypto and to founding Tally
  • The current state of DeFi and how they think about an emerging taxonomy of projects
  • Views on how voting and user interaction with DeFi protocols are evolving
  • Comparison to legacy financial services like proxy voting
  • How Tally is engaging with open-source communities to promote user engagement

To learn more about Tally visit www.withtally.com

 

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Robby Gutmann (NYDIG) on the Institutionalization of Bitcoin (EP.193)

Robby Gutmann, CEO and Co-founder of NYDIG, and Co-founder of Stone Ridge, joins the show to talk about his firm’s Bitcoin and digital asset ambitions. In this episode: 

  • The origins of NYDIG and Stone Ridge
  • NYDIG’s product suite and differentiation 
  • NYDIG’s deliberate pro-Bitcoin stance 
  • Why Bitcoin is such a compelling opportunity to Robby
  • Bitcoin’s pace of development 
  • How much attention NYDIG pays to core development
  • Is there a contradiction between open source money and institutionalization? 
  • What explains client enthusiasm for Bitcoin in 2021

Sponsor notes: Copper is transforming how institutional investors engage with digital assets by developing award-winning custody and next-gen trading infrastructure. Headquartered in London, the firm is scaling rapidly across Asia and North America to bring its suite of products to a wider pool of institutional investors. To learn more visit copper.co or reach out on Twitter, @CopperHQ

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Weekly Roundup 03/11/21 (GBTC redemption scenarios, Norwegian energy in Bitcoin, the NFT missing link) (EP.192)

Nic and Matt return for another intense week of deals. In this episode: 

  • New Bitcoin FUD dice?
  • Is there any new Bitcoin FUD?
  • Beeple sells an NFT for $69m
  • Are NFTs art or the autograph?
  • The missing link for NFTs – where do you show off your NFTs and demonstrate status?
  • One issue with NFTs and IP
  • Is NY Life getting into crypto?
  • Norwegian oil billionaire embraces Bitcoin
  • DCG buys back GBTC to bring it back to NAV
  • Scenarios for how GBTC redemption occurs
  • Why GBTC trading at a discount is better for retail investors
  • Moneygram and Ripple are no longer partners
  • Grayscale hires an entire ETF team
  • Should the US start a strategic Bitcoin reserve?
  • Why Bitcoin makes sense for central banks
  • Why CBDCs will never provide real cash-like assurances

Content mentioned: 

This episode is brought to you by Sovryn, DeFi on Bitcoin.

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Matthew Le Merle on technology trends and the cryptoasset markets (EP.190)

Matthew Le Merle, Co-Founder and Managing Partner of Fifth Era and Blockchain Coinvestors joins the show. In this episode we discuss:

  • Matthew’s views on The Rise of Generation C and some of the trends he foresaw ten years ago
  • Views on the GameStop / WSB saga and what this portends for the financial markets in the years to come
  • The state of the cryptoasset market and the infrastructure that is being deployed in 2021
  • How he thinks about approaching this industry as a leading fund of funds

 

Learn more about Blockchain Coinvestors at their website and follow Matthew on Twitter @mlemerle 

 

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Zac Prince (BlockFi) on the Series D raise and a market update (EP.191)

Zac Prince, CEO and Cofounder of BlockFi joins the show once again to discuss BlockFi’s newly announced Series D financing and to discuss market dynamics. In this episode: 

  • Announcing the Series D round of financing
  • Growth of revenues and clients on the platform
  • How BlockFi classifies itself in the taxonomy of banking, fintech, and brokerage
  • Market worries around the GBTC discount
  • Why did GBTC flip to being discounted?
  • What the GBTC discount means for BlockFi
  • How do the current GBTC dynamics affect Bitcoin interest rates, if at all?
  • One unexpected way the GBTC discount could disappear
  • The prospects for “busting the trust”
  • How Zac thinks about public messaging and the Twitter environment
  • What fraction of the bitcoin interest rate the GBTC trade represents
  • What’s next for BlockFi

Prior BlockFi OTB episodes: 

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Weekly Roundup 03/05/21 (GBTC discounted, Private Blockchains are Back, the Last Cycle?) (EP.188)

Matt and Nic are back. In this episode:

  • More cured meats drama
  • The Singapore sovereign wealth fund invests in Anchorage
  • Will they or wont they – Goldman edition
  • Bitcoin completes Paypal’s original vision
  • Schwab looks to add support for crypto
  • Kings of Leon NFT
  • Are NFTs the first truly mainstream application of blockchains?
  • Are today’s centralized public blockchains just a return of private blockchains?
  • Citi releases the case for bitcoin
  • GBTC trades at a steep discount to NAV and what it means
  • Is the GBTC arbitrage trade over?
  • Should startups hold Bitcoin on their balance sheets?
  • How does 2021 feel compared to 2018?
  • Are we likely to see another 70%+ drawdown?

Content mentioned in this episode: 

This episode is brought to you by Sovryn, DeFi on Bitcoin.

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David Vorick (Nebulous) on the Maturation of Decentralized Cloud Storage (EP.189)

David Vorick, the cofounder and CEO of Nebulous, the firm developing the Sia network, joins the show once again to talk about the growth of decentralized cloud storage.

In this episode: 

  • Skynet reaches its 1 year anniversary
  • Dweb versus Web3
  • Current capacity and utilization of the Sia network
  • Where Sia stacks up in terms of the decentralized storage networks by usage
  • How the internet ended up massively siloed
  • Why data portability and thin internet applications are so important
  • Current breakout applications of decentralized storage
  • New models for authentication for web apps
  • How the dweb could return the internet to its 90s-era topology
  • The current state of property rights on the internet
  • The intersection between Handshake and Sia

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Tieshun Roquerre (Namebase) on the Prospects for Decentralized DNS (EP.185)

Namebase founder and CEO Tieshun Roquerre joins us for a discussion of Handshake, decentralized DNS, and issues with the current system of domains. In this episode: 

  • The core technical problem with DNS today
  • Why a blockchain for a decentralized DNS system makes sense
  • How Satoshi anticipated blockchain-based DNS with BitDNS
  • Could a global PoW blockchain system accommodate all of the world’s domains?
  • How Handshake learned from Namecoin, ENS, and other attempts from blockchain based DNS and alternative root zones
  • The distinction between ENS and Handshake
  • Handshake’s origin and launch – and how it ended up with such diffuse governance
  • Where the nexuses of control are in the Handshake ecosystem
  • How Handshake PoW security works
  • The merits of embracing ASICs
  • How the distribution of domains works
  • What you can actually do with handshake domains
  • The growing interoperability between handshake and decentralized storage like Sia

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Brannin McBee (Core Weave) on Greening the Grid, the Texas Meltdown, and Bitcoin Mining (EP.183)

Core Weave chief strategy officer and former energy trader Brannin McBee joins the show to talk about the grid meltdown in Texas and the impact of renewables on the grid. In this episode: 

  • Brannin’s history in energy trading and energy analytics
  • How his firm survived a 95% collapse in the price of natural gas – and how that presaged his work in the crypto space
  • How Brannin’s firm Core Weave alternates between mining ETH and monetizing GPUs through high-performance compute
  • How wholesale power trading works – and how it provides valuable informational signals to the grid
  • How the US grid is arranged – and how the energy mix has changed in the last decade
  • How coal has been marginalized in the last decade through natural gas and renewables
  • Why energy is not globally fungible
  • Why forecasting wind is so difficult – and how that complicates including wind into the grid
  • How renewables trade off reliability against carbon impact
  • How increasing the share of wind and solar destabilizing the grid
  • Why increasing units of wind requires new units of gas on the grid
  • The confluence of causes behind the Texas grid failure last week
  • How Core Weave selected their location on the grid – and how they took political risk into account
  • How much energy Bitcoin consumes – and where that stands relative to the energy consumption of the US
  • How flaring natural gas to mine Bitcoin works – and whether it’s economical
  • Does Bitcoin work as a load balancer for grids?
  • Can you compare Bitcoin’s footprint to that of entire countries?

 

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Weekly Roundup 10/30/20 (Iran stockpiling Bitcoin?, more bank charters, is Paypal a Bitcoin Sidechain?) (EP.143)

Matt and Nic cover deals and news of the week. In this episode: 

  • Matt’s bike is stolen in mysterious circumstances
  • Our top takeaways from the Brian Brooks interview with Laura Shin
  • The state of financial regulation in the US as it pertains to crypto
  • Is the permissioned pseudonymity model of stablecoins sustainable?
  • SoFi’s application for a new bank charter approved
  • Why lowering the barrier to entry for new bank charter approvals is so important
  • is there any merit to personal tokens?
  • Avanti gets their SPDI charter approved
  • Why Avanti’s Avit stablecoin is so interesting
  • What is the legal enforceability of stablecoin transactions?
  • Accounting and tax questions with stablecoins
  • Coin Metrics partners with KPMG
  • Is the Iranian Central Bank accumulating Bitcoin?
  • Why Iran adopting Bitcoin demonstrates its value proposition
  • FTX offers equities – is it compliant?
  • Is Paypal a Bitcoin Sidechain?

Content mentioned in this episode: 

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Yoann Turpin (Wintermute) on launching a cryptoasset market making firm (EP. 142)

Yoann Turpin, cofounder of Wintermute Trading joins the show. In this episode we discuss:

  • Yoann’s background in trading and how he made his way to trading cryptoassets
  • His views on the evolving market structure for cryptoassets and where the industry is headed
  • How important market makers are for new token launches
  • The role of stablecoins and how these instruments are changing the landscape for traders
  • Wintermute’s decision to raise capital from VCs and how they see themselves are a technology firm

To learn more about Wintermute Trading visit their website.

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Joel Revill (Two Ocean Trust) on building a Qualified Custodian in Wyoming (EP.141)

Joel Revill is the cofounder and CEO of Two Ocean Trust, a Wyoming Chartered Trust Company offering wealth management services to high-net-worth individuals and family offices.

Two Ocean Trust has recently received a no-action letter from the Wyoming Division of Banking stating the division’s determination that Two Ocean is a “qualified custodian” under the Investment Advisers Act of 1940 and the SEC Custody Rule. This letter states the division’s determination that Two Ocean may provide custodial services for digital assets under Wyoming law, including virtual currency and digital tokenized securities. In this episode:

  • Joel’s background and the genesis of Two Ocean Trust
  • Current gaps in the market as far as digital asset custody is concerned
  • The significance of Two Ocean’s No-Action letter from the State of Wyoming
  • What Qualified Custody actually means, and why it matters
  • Why Wyoming is a great place to start a business pertaining to digital assets
  • The history of the SPDI Charter – and why Two Ocean did not opt for the SPDI
  • Why high net worth individuals are buying Bitcoin today
  • Joel’s current monetary outlook – and why Bitcoin is more than just a hedge

Check out this episode!

Weekly Roundup 10/23/20 (PayPal jumps in, the banks push back at the SPDI, are CBDCs inflationary?) (EP.140)

Matt and Nic cover deals and news of the week. In this episode: 

  • PTJ’s latest comments on Bitcoin
  • How Bitcoin is akin to a cathedral
  • Franklin Templeton invests in Curv
  • PayPal launches a crypto offering
  • Will PayPal open up its walled garden?
  • The Kik story finally reaches a conclusion
  • Coinbase publishes their first transparency report
  • Paradigm’s big bet
  • Is CBDC going to be pro-inflationary?
  • The bank lobby pushes back at the Wyoming SPDI
  • Why this bull run is more sustainable than that of 2017
  • How Bitcoin scales with capital, not people

Content mentioned in this episode:

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