Bitcoin Breaks $95k, Crypto’s Valuation Problem, & The Path To Real On-Chain Users
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You just cannot justify the valuation of most projects in the space. And it's a classic Silicon Valley meme of, like, never show revenue. Always sell the dream. Crypto is no longer the main character. Right? It's AI. So from a momentum driven trade, over. From a valuation fundamental trade, over, too. Ethereum as a $400,000,000,000 asset, Avi, Jonah, in what right mind would you buy this when it's cranking out 1,000,000,000 to $2,000,000,000 of fees that are not recurring, that are going to dry up in a bear market when liquidity is there. Like, you're churning through most users and liquidity
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God, Jonah, your your intro music always gets me fired up. For those for those that don't know, that that little little beat there was composed by Jonah himself. Today's today's a crazy day. The last time we recorded Bitcoin was above 100,000. Today, we're recording Bitcoins at 94 and things are dropping precipitously. It looks like the timeline is very anxious. In order to assuage those fears, we brought on our professional market man, Santi. Thank you for joining us today.
Howdy, Jonah. Thanks for being here. Thanks for having me on.
Thank you.
No, this is awesome. Think Jonah you, and I have talked about this a little bit high level on a bunch of podcasts where we basically just keep saying, hey, the market is changing dramatically. And I think it already has changed dramatically a bit. Then you put out a blog post this morning, which I highly encourage everybody to read, which really tackles like the issue of valuations in crypto, and why we might be experiencing some of what we're experiencing right now, where things just keep coming apart. Other than Bitcoin, if you look at this cycle outside of Bitcoin, very few things have actu
Like, I mean, when you look at a fundamental analysis, you just cannot justify the valuation of most projects in this space. And it's a classic Silicon Valley meme of never show revenue, always sell the dream. And perhaps that's the greatest credit I'll give to Ripple, which is they've done a phenomenal job. If you go out walking the street, you ask people, hey, what do you think about crypto as an infrastructure, this fintech opportunity? They're like, oh, it's Ripple. And a stock maker, it's not Uniswap, it's not anything really. Zooming out a little, it's like, do you always, as an investor
Yeah. I mean, that's been, that's been a huge issue, I think, for just crypto traders in general, is that the I mean, outside of this crazy Rod by Zcash recently, and I guess the meme mania of six six six to eight months ago, trading stock market has just been infinitely more fun and profitable than trading crypto. And I think we all know that a tremendous amount of value is derived from the fact that crypto was a very fun place to trade. And like it was, it was a place that you could make a ton of money. And now that's starting to dissipate. What actually worries me more is also crypto was th
Yeah, maybe penny stocks are the new crypto, sadly.
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