Bitcoin Breaks $95k, Crypto’s Valuation Problem & The Path To Real Onchain Users
Episode publishedPodcast: EmpireEmpire
Transcript preview
Preview only
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. Like, Ethereum, as a $400,000,000,000 asset, Avi, Jonah, in what right mind would you buy this when it's cranking out 1 to 2,000,000,000 of fees that are not recurring, that are gonna dry up in a bear market when liquidity is there. Like, you're churning through most users and liquidity very you
This episode is brought to you by Zcash. You'll hear more about them later in today's episode. Nothing said on Empire is a recommendation to buy or sell any investments or products. This podcast is for informational purposes only, and the views expressed by anyone on the show are solely their opinions, not financial advice or necessarily the views of Blockworks. Our hosts, guests, and the Blockworks team may hold positions in the companies, funds, or projects discussed.
Today's, today's a crazy day. The last time we recorded Bitcoin, it was above a 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.
Avi, Jonah. Thanks for being here. Thanks for having me on.
Thank you. No, this is awesome. Think Jonah 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'd 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 kind of coming apart. Other than Bitcoin, I mean, if you look at this cycle outside of Bitcoin, v
Like, I mean, when you look at it at a fundamental analysis, you just cannot justify the valuation of most projects in the 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 go you out walking the street, you ask people, hey, what do think about crypto as an infrastructure, this fintech opportunity? They're like, oh, it's Ripple. And a stock maker is not Uniswap. It's not anything really. But zooming out a little, it's like, do you always, as an invest
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 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 like the o
Yeah. Maybe maybe penny stocks are the new crypto, sadly.
Always have been.
Keep exploring with a free account.
A free account preserves the short preview. Upgrade to Pro for the full transcript and episode chat.