Daily Briefing – August 14, 2020

Published on
August 14th, 2020
Duration
34 minutes


Daily Briefing – August 14, 2020

Daily Briefing ·
Featuring Jack Farley, Ash Bennington, and Raoul Pal

Published on: August 14th, 2020 • Duration: 34 minutes

Real Vision CEO, Raoul Pal, is joined by senior editor, Ash Bennington, to reflect on the current state of markets. Raoul and Ash discuss the upcoming “precious metals week,” and Raoul shares his views on gold, silver, and mining stocks and provides insight into his trading framework. Raoul and Ash then turn to cryptocurrency: Raoul analyzes Bitcoin’s risk/reward characteristics, and Ash details the technological breakthroughs of Ethereum 2.0 with Raoul maintaining it is the macro that is driving the extreme price action of this nascent asset class. In the intro, Jack gives a sneak peek of next week’s interviews on precious metals.

Comments

  • mw
    michael w.
    27 August 2020 @ 00:32
    Crypto a clean market? hahaha
  • CM
    Chris M.
    19 August 2020 @ 16:32
    Ash - great job trying to explain pos v pow and other crypto issues. (coming from a crypto geek).
  • AM
    Anthony M.
    15 August 2020 @ 17:18
    Stop talking like a 4 year old who thinks the boogieman is under the bed. There is no COVID emergency. Who cares if someone gets the COVID, COVID is now just another common cold. The common cold and flu kill lots of people, almost all old people because that is how most old people die. In the US and Europe death rates are normal, no COVID emergency. https://euromomo.eu/ Look at Sweden, no shut down, and has the same infection and death rates as countries that did shut down.
    • JD
      Jimmy D.
      15 August 2020 @ 18:34
      The lockdown's are not sustainable. If the state will refuse or is unable to provide for the people like in the United States the lockdown should end. Lockdowns are not well suited to EM markets and the United States which I like to call a 1st world country with a few 3rd world problems. There are too many under the table cash workers and service industry workers in the United States to whom lockdowns are more lethal than covid 19. Many people have still not recieved unemployment and filed 2 to 3 months ago and now that there is no stimulus check coming and no extra 600 its time for the lockdowns to end. To say there is no emergency is disingenous, but EM markets and the Untied States may actually find the cost to life is worse with an indefinite lockdown, we already see shootings are up in NYC and Chicago, what do people shoot eachother for? People are short on money
    • MK
      Michael K.
      15 August 2020 @ 22:04
      I wouldn’t be surprised if the proximate partial cause of the increased violence is that people actually have money for the bills but no work to do and therefore restless. An idle population without sports is dangerous.
    • JD
      Jimmy D.
      16 August 2020 @ 01:34
      @Michael K. I think a lack of work is coorelated with the uptick in crime/violence but I don't think stimulus checks cause people to be violent, if anything the checks are probably pacifying on the population.
    • RD
      Riki D.
      16 August 2020 @ 23:09
      So if there is no emergency it could only mean its a conspiracy, which is fine. But the magnitude of the conspiracy at least requires a little more evidence to counter the reality of the conspiracy than a web link. You might be better served checking out the CDC site for influenza deaths... top of the range is 60k pa. US 165k 8 months in with significant, although ineffective measures in play. That number, of course unless that also part of the conspiracy, is slightly larger than 60k by a magnitude 4. So, if the community is doing somethings to mitigate transmission yet there's at least a minimum magnitude 4 increase, what can we expect if there's zero mitigation. Sounds like a poor reasoned position on the basis of the top line number. WWII produced 406k US deaths over 4 years and its fair to say that was a national emergency, not only because of the death but because of the 'potential' for greater social economic issues. If by the end of this year we have (165/8 months x 12) 248k deaths, then after 2 years we can expect 500k deaths, which is obviously twice as fast as WWII. That is conservative on the basis of transmission rate velocity increasing. So, if we entertain this as a non event, what do we think the death rate would be then. It doesn't take a 4 year old to work out thats probably going to be pretty ugly. This doesn't account for the secondary health issues this virus cause, damage to organs as a result of vascular inflammation and impedes peoples ability to lead a normal life. Who is going to front up to tell these people, its a conspiracy? Some people need to spend more time talking to the doctors and nurses who are saving peoples lives and or making decisions on who gets triaged, including those who end up dying... and less time on conspiracy sites being fed headline generalisations about the deep state, the Chinese, Bill Gates, et al planning this to take over the world. What utter shameful nonsense!
    • JV
      Jonny V.
      19 August 2020 @ 06:37
      Very well put Riki D.!
  • DH
    Declan H.
    17 August 2020 @ 08:58
    Sorry guys, but you're not getting the POW/POS stuff right here. The use of electricity and power to create blocks is what gives Bitcoin its security, that security has a legacy that is built upon daily. Bitcoin has 10 years worth of linked cryptographic proofs burned into its blockchain, to kill that ledger you would have to recreate more than that 10 years worth of power in one effort - that's where the value and incentives are locked in and why forked coins don't matter. The ESG narrative is also incorrect here. Bitcoin miners are incentivised to find the cheapest electricity possible in order to be profitable, this is why now you'll find lots of mining rigs located in regions with v cheap surplus electricity which would not actually be used otherwise. A lot of this power is now also generated without the use of fossil fuels. Fun fact - Gold currently uses 20 times the power in its mining than Bitcoin In a proof of stake world with Ethereum 2, we'll see more centralisation of the ETH network as the exchanges will have the most ETH to stake, they'll start offering to stake on behalf of holders and will end up taking their votes in protocol decisions by default. The network will essentially be controlled by the exchanges and they'll be incentivised to alter monetary policy and also pressured by regulators to sanction certain applications on the network. We'll end up with a slower and more bug ridden version of the system we already have. The whole point of Bitcoin and crypto was to eliminate interference by intermediaries and create a money that is censorship resistant from states and entities. The future of DeFi should all be focussed on Bitcoin as the collateral, with products and applications built on top of its base layer IMO as Ethereum is nothing more than a flight simulator that looks great inside and you feel like it can do all these funky things. Than you take a step outside, there is no engine and there are no wings. I'll admit though that ETH has a good narrative right now and is probably a good trade until people actually realise the truth about it
    • DL
      Dan L.
      17 August 2020 @ 16:29
      POS systems are far more nuanced than POW. To my knowledge, only Cardano (ADA) offers a provably secure POS system that is immune from centralization. ETH is likely to continue to struggle to implement POS for some time since it must support a large legacy code base while transitioning to an entirely different type of consensus mechanism.
    • JK
      Jason K.
      17 August 2020 @ 21:47
      Agreed. I'd suggest that you bring on an Ethereum expert to easily explain the difference and shift from PoW to PoS. EOS and NEO are both PoS platforms vs where ETH is.
    • JF
      John F.
      18 August 2020 @ 16:19
      Arrange an interview with Charles Hoskinson - mathematician, founder of Cardano and co-founder of Ethereum. He can clearly (and simply) explain the difference between POW and POS and the possible pitfalls ETH will encounter all from a proven perspective since he was there at the beginning of both POW and now POS.
  • JF
    John F.
    18 August 2020 @ 15:50
    Ash, I have to say, that was some of the clearest explanation about BTC, blockchain, and crypto I've heard in awhile and I TOTALLY agree - Real vision should cover the subject ahead of the mass adoption with you at the helm steering the ship. There are many like Raoul that are excited about the space like a fancy car but there are others like me, and yourself, that like to know what's under the hood to make an informed decision on what car(s) fit our personality and purchase goals. Your comment about ETH 2.0 being a difficult project to accomplish was correct given that they are remodeling the entire base software to accommodate a whole new consensus algorithm model. You may already be aware that Cardano (ADA) has made this leap already and is pushing the boundaries of what ETH is only speculating they can accomplish by the end of the year. I am an investor of both projects but the fastest horse may just be ADA going forward with pure clean code. ETH has the marketing post of familiarity yet there are other horses in the race. Charles Hoskinson, mathematician, founder of Cardano and co-founder of the Ethereum project saw Proof of Stake to be the solution for scaling the ETH project years ago but faced resistance. He chose to head out on his own and create a peer-reviewed proof-of-stake project called Cardano. It took 5 years but the main net was just launched last month without a hitch and Proof of Stake, smart contracts, DiFi and the whole basket of future ETH-type projects is all part of the deal. His TED talk in 2015 is what convinced me his project was viable and possible to lead the pack. I would encourage you to interview him on RV. Regardless, Crypto should definitely be an integrated focus of RV moving forward.
  • JS
    Jared S.
    17 August 2020 @ 16:20
    What was the name of James' fund that invests in middle-tier precious metals miners?
    • JF
      Jack F. | Real Vision
      18 August 2020 @ 14:34
      Coast Capital
  • DG
    DOUGLAS G.
    18 August 2020 @ 14:24
    I appreciate you mentioning bitcoin. Can you do a video for beginners on the recommended way to educate yourself and properly store bitcoin? That's my biggest barrier - ie not losing it once you buy it.. Planning on self-education, but would value the RV perspective on this. Thanks.
  • MC
    Michael C.
    15 August 2020 @ 00:55
    The lack of mainstream understanding of what bitcoin is and how it's different from other cryptocurrencies gives everyone who chooses to participate in it now the first mover advantage usually limited to financial insiders through things like stock IPOs. My career is in technology and I understand bitcoin technically - I feel bad for people that are not in tech and are trying to understand what bitcoin is and why it's different from X crypto. It is not going to be easy for people without a Computer Science degree to really understand how bitcoin works and understanding how it works is necessary to understand how its different, how its secure, how it can't be hacked, etc. My only advice for those folks, is listen to the tech people that do understand this and follow them / their money. Chamath Palihapitiya, Jack Dorsey, David Marcus, Jeff Booth, and on and on. People in the tech industry that deep-dive bitcoin understand what makes it unique technically and then they invest in bitcoin. A lot. I hope old school investors don't miss this opportunity - bitcoin is a better gold and its market cap will soon reflect that as it gains mainstream adoption.
    • MK
      Michael K.
      15 August 2020 @ 02:23
      My man
    • DB
      Daniel B.
      18 August 2020 @ 04:50
      Well Said.
  • VL
    Victor L.
    17 August 2020 @ 21:03
    transcript?
  • ZM
    Zane M.
    16 August 2020 @ 19:20
    Superb laughs had watching Raoul & Ash chat on crypto in the field of msm . - Great stuff!
    • MG
      Marcel G.
      17 August 2020 @ 20:44
      Raoul & Ash are magic....I was laughing my head of whilst watching them :)
  • VT
    Vincent T.
    16 August 2020 @ 09:25
    Hang on... How can Raoul be so bullish on crypto after studying it, yet have no clue the difference between proof of work vs proof of stake? Just curious...
    • IO
      Igor O.
      16 August 2020 @ 16:39
      Makes me feel like I have an edge.
    • PT
      Paul T.
      16 August 2020 @ 17:49
      He knows the difference. He was just pressing Ash to explain the concept as simply as possible for the benefit of the audience.
    • DL
      Dan L.
      17 August 2020 @ 16:43
      There is huge investment opportunity for those who understand the actual differences between those cryptos that are vying for dominance in the application space. The first mover advantage enjoyed by ETH does not seem nearly as significant once you understand what others have accomplished, and are poised to deliver over the rest of 2020 and 2021. ETH maybe on a momentary tear, but, like silver, it won’t last. Cardano (ADA) is a much better long-term bet (IMO).
  • CM
    Chris M.
    15 August 2020 @ 19:17
    Be careful with Ethereum its still in the research phase. The blockchain complexity has increased dramatically with PoS no one really knows if it will scale with the same security as PoW. They have a entire team dedicated to security research on the testnet that just launched.
    • AB
      Ash B. | Real Vision
      15 August 2020 @ 19:58
      Yes. Agreed. I was careful to qualify my comments.
    • DB
      Daniel B.
      17 August 2020 @ 10:44
      Eth 2.0 Test net crashed. Diversify in the space around UTXO (BTC, DGB), other Smart Contract Platforms (ADA, ALGO, XTZ), Utility Tokens (UBT, RLC, VIDT). Security Tokens (RVN), DEFI (MAKER, SXN) Oracles (Link, TRB, Band).
  • JK
    Johan K.
    17 August 2020 @ 07:53
    My attempt to explain the difference between proof of work and proof of stake: POW secures the network by miners burning electricity as collateral for the validity of their transaction confirmations, POS secures the network by transaction validators (no miners any more) locking up coins as collateral for the validity of their transaction confirmations. No more electricity required.
  • RP
    Richard P.
    15 August 2020 @ 11:43
    ETH is changing and following its former founders framework and project cardano. Charles Hoskinson saw all these problems up front and parted from the network creating his own and a treasury feature. Cardano is now more decentralised than bitcoin and will host staking and smart contracts. Timestamped you will own ADA in the next few years
    • JW
      Jay W.
      17 August 2020 @ 03:39
      Agreed.
  • KJ
    Kurt J.
    15 August 2020 @ 05:12
    Cannot be convinced of cryptocurrency being anything other than Tulips. If it comes ANYTHING close to what you are saying Raoul, ie. a “competing reserve currency”, one of two things will happen; 1. Immediate outlaw, in which not only transactions (I’ve never heard of anyone or anything actually buying and selling in cryptocurrency), but also all speculation, in which the traded volume and price will arrive at precisely the intrinsic value of it: 0.00, or, there will be regulatory capture by central banks in which transactions will be held to have been in $/£/€ at the time of, and appropriate taxation liabilities set against it. I would expect better of someone with your CV to apply critical thinking on this
    • TC
      Tor C.
      15 August 2020 @ 19:51
      Use google and all of these points are invalidated many times, pe req.; you need to apply critical thinking...
    • JD
      Jimmy D.
      16 August 2020 @ 02:00
      I've been hearing bitcoin will be banned for 10 years and here we are. I'm sure that's on top on Mitch McConnel's mind is banning cryptocurrency business in a once every 100 year depression.
    • MV
      Mathieu V.
      17 August 2020 @ 00:12
      I would definitely recommend you to start reading about bitcoin and it's history. Countries like China already did try to ban bitcoin and crypto and they miserably failed. Therefore removing the ban later on. I can't blame you, everyone that hasn't dig into the rabbit hole has the same misconception about bitcoin and cryptos. That's why I highly suggest you read more on the subject.
  • MC
    Michael C.
    15 August 2020 @ 06:20
    What did I learn today? 1.) Raoul is "irresponsibly" invested in things he doesn't understand 2.) Ash thinks he is an expert on something he doesn't understand 3.) They are both promoting something to paying subscribers that they don't understand 4.) To get meaningful information on Defi/Crypto I have to search outside the RV crypto cheer leading platform. The Crypto Gathering was heavily marketed as THE event to learn about defi and digital currencies and yet it didn't explore nor explain the difference between Proof of Work and Proof of Stake. Don't you think this is fundamental?
    • Dv
      Daniel v.
      15 August 2020 @ 08:21
      I agree, it was a bit strange to see RP saying he doesn't really understand what ETH 2.0 is about.
    • JW
      J W.
      15 August 2020 @ 10:18
      This was indeed somewhat odd to watch. Was Raoul doing this on purpose - feigning ignorance - in order to demonstrate the fact that crypto-land is still very much a technology play or was he genuinely ignorant. I sincerely hope it was the former :-). The point is valid. For any form of mass adoption to take place the use, usage and value props of crypto must change into something that can be widely understood.
    • QC
      Queena C.
      15 August 2020 @ 20:55
      I think the daily briefing is increasingly being used to plug other RV content. But also it is rightly an platform that educated people of all knowledge levels. Therefore RP and others are forced to ask questions they know the answers to, so others can learn. It may seem fake, but there is method to the madness. And I think they are right to do so.
    • TN
      Tim N.
      15 August 2020 @ 21:09
      I think Raoul was feigning ignorance here. There is still intense debate in the crypto community about POW vs POS. Very few of us have the technical knowledge to convince ourselves or anyone else that POS can be as secure, decentralised and trustless as POW. Therefore, I am sticking to BTC for longterm investment /store of wealth and ETH for speculation.
    • AF
      Alex F.
      16 August 2020 @ 08:35
      Disagree. Raoul's an investor. Investors in Internet companies in late '90s didn't have to be well versed on the TCP/IP Protocol. They just had to have the foresight to see that the internet was a revolutionary/transformative piece of technology that would change the way the world did business forever. No difference here with the whole crypto/blockchain space. Its clear that both Raoul and Ash know the broad implications that Blockchain can have on world economy. As they both stated, they are also aware of the risk (which is why it's hard to price). Benefits outweight the risks in their opinion and hence they have invested in this space and are bullish. There investors, not crypto engineers/developers. Big difference - dont need to get bogged down in details. Leave it all for the developers who are all smarter than anyone commenting on this video.
    • MV
      Mathieu V.
      17 August 2020 @ 00:05
      I highly disagree, You didn't had to be an expert on how a PC works to invest in Microsoft in the early days, the same way you probably don't know how exactly Amazon is working behind the curtain and how extremely difficult it must be to manage this behemoth. You don't have to understand perfectly the technology behind bitcoin to see that it will change the future and therefore is a incredible investment. We don't ask Raoul to be a crypto expert we ask him to be the best macro forecaster.
  • JH
    Joseph H.
    16 August 2020 @ 21:56
    I would love to see Brad Garlinghouse, Ripple CEO, on Real Vision to talk about the crypto answer to money transfer. This is exactly what Raoul was talking about regarding the 3-5 days for money to clear on the Little Cayman Island. Check out their video on https://ripple.com/ripplenet
  • TS
    Theodoros S.
    16 August 2020 @ 20:07
    Well said by Raul. Why should anyone invest in this crypto space that even the ones who understand it do not know how to explain it.
  • IO
    Igor O.
    16 August 2020 @ 17:47
    One Antminer 40TH/s - over two kilowatts of power running 24/7/365. Plus hardware production cost. With hashrate parabolic hardware absolete in one year. To all mining s not a waste Just saying..
  • BJ
    Brandon J.
    16 August 2020 @ 07:47
    I love the concept of cryptos, but I have 2 huge issues with them. 1. They're supposed to be currencies, but they're not used as currencies. They're still just speculations on one day people using them as currencies over current currencies. 2. If one or multiple cryptos ever become real currencies they will be competing with governments around the world. Who the hell wants to be in a trade competing with a government?
    • SW
      Sarah W.
      16 August 2020 @ 13:12
      1. TCP/IP was created in the 70s, yet the internet applications only really exploded in the past five years or so. So it took over thirty years to get to this point. Bitcoin and crypto is barely ten years old. It’s the equivalent of saying that people didn’t use email in the early 90s. It will come with innovation. Bitcoin already acts as an incredible long term store of value, which is critical as the central banks print and inflate the value of fiat currencies away. 2. For Bitcoin/crypto to be globally restricted by governments, it requires co-ordinated effort across all nations/continents. In these current protectionist, de-globalized times, can you foresee a moment where all would be aligned to shut it down? Further to this, any country that does try to ban it, is handing the crypto initiative to their competitors/adversaries to gain a foothold in the space.
    • MK
      Michael K.
      16 August 2020 @ 16:58
      Sarah does her homework. Be like Sarah.
  • WD
    Willem D.
    16 August 2020 @ 16:51
    You would do your viewers a great favour by interviewing a guy like Ivan Liljeqvist, who runs the Ivan on Tech Academy and the Good Morning Crypto channel. He has his fingers on the pulse and is great at explaining DeFi, Protocols, Oracles and the blazingly fast developments taking place in the crypto space.
  • CD
    Christopher D.
    16 August 2020 @ 14:04
    Proof of Work: A bunch of miners crunch numbers to verify the validity of a transaction (eg: no double spend), and record the result in a block. The number crunching is a cryptographic algo that cannot be undone (although Quantum Computing could be a threat). It serves as a voting mechanism: "This is a valid transaction, let's move on". If 51% of calculations are consistently performed by one miner or a colluding group of miners, they can vote double spend. Particularly if they don't care about BTC debasement, perhaps because they hold none of it. They could just mine and convert profits to USD. With Proof of Stake, it isn't "one-calc-one-vote" but "one-coin-one-vote", which aligns interests of voters with coin owners. It is also way cheaper in calculation power. --------- Re FT For some reason the older articles on bitcoin can't be found in the FT search engine. I would gladly have added some of Iza Kaminska's prose from around 2013+. That prose lacked sufficient logic to make sense to me, but that didn't prevent the FT unleashing her unmitigated coin-bashing prowess in its columns. Part of the objective is to inform the populus, part is to diffuse opinions. FT aren't too keen on gold either. You see the general direction.
  • SW
    Sarah W.
    16 August 2020 @ 05:02
    I think the energy consumption argument for POW is a red herring. The data centers in New Jersey (and across the globe) that support HFT on the equity markets produce just as much energy consumption, if not more. That’s not to say that POS isn’t an experiment worth pursuing. Raoul, for any family offices that are skeptical of Bitcoin, direct them to read The Bitcoin Standard. Probably the best way to provide the context and explanation.
    • TL
      Thomas L.
      16 August 2020 @ 14:01
      I would say this podcast is the best I have come across for simplicity and conceptually getting the idea across: https://tim.blog/2017/06/04/nick-szabo/ Also, agree re POW. The best counter-argument again is by Nick Szabo as per the podcast where he talks about "social scalability". The energy resources going into bitcoin is not a waste. It is for ensuring trust into the system on a social level.
  • FL
    Fabrizio L.
    16 August 2020 @ 12:30
    you said it you are so bullish you cant see straight! LOL
  • AK
    Ado K.
    15 August 2020 @ 08:44
    PoW is not a waste, it provides a immutability factor that is unmatched. Meaning that the ledger (a.k.a. the balance of who owns what) is secured by large amounts of real world resources in form of electricity. PoS is just based on game theory, and has in the past had tendencies to lead to increased levels of centralization and creation of super nodes. Ethereum is doing this change simply because they are making a technological trade off between scale, speed and immutability factor. For what the Ethereum project wishes to achieve this seems like a reasonable thing to do. Bitcoin is trying to be perfect money in Austrian terms and has to have the highest levels of immutability factor, eth is more trying to be a financial platform for stocks, commodities, derivatives etc, and can hence make these trade offs.
    • MC
      Michael C.
      15 August 2020 @ 10:06
      This is more the level of discussion that is needed on the platform and not just in the comments section. Debate with real experts (maybe there aren't any) around these kinds of ideas which cross technical aspects and use cases (advantages and limitations) . Another example. Take the guys at Framework ventures and Chainlink. How is the synthetic network token not just a decentralised CFD platform without the benefit of leverage and with a huge collateral requirement? It sounds unstable and they slick talk like bankers from GS. How is BTC a free market when its been hijacked by developers so they can stop its development for the purpose of adding layers in order to extract fees? Sound familiar? It should because its just like the investment banking model .... creating layers of intermediaries that rip fees and create a class system. Its not democratic at all. Free market my #%@?
    • PG
      P G.
      15 August 2020 @ 11:10
      Yes crypto guru Andreas Antonopoulos has intelligently and thoroughly debunked this PoW "waste of energy" conspiracy theory. One of his arguments is that electricity, typically cheaply produced renewable hydro, wind or geothermal generated at isolated locations, can be utilized near energy source to create value (aka mining Bitcoins) and that energy need not have to travel great distances to population centers in order to create value. It turns out then that Bitcoin is actually 'greener' more so when compared with the enormous energy consumption (produced by burning fossil fuels?) by the legacy banking & financial systems.
    • JW
      J W.
      15 August 2020 @ 12:14
      This energy red-herring has been addressed since at least 2018. Plus Matt d'Souza discussed this on various podcasts and on this forum before. See, https://coinshares.com/insights/beware-of-lazy-research-bitcoin-mining-update
    • CH
      Crag H.
      15 August 2020 @ 16:48
      @Michael C: Creating decentralized networks by adding lightweight layers on top of each other is done for technical reasons (this is how the internet itself is built). Creating a fat protocol with all bells and whistles is like building a car and *only* selling it with *all* the add-ons and extras. Sure you might create something that performs slightly better, but many potential buyers would back off due to the higher price. So no, Bitcoin have not been hijacked by the developers. Anyone is free to contribute to the code but your proposed changes will only get added if they're adding enough benefits. Some people find this frustrating and therefore create their own forks of the project, which is fine. It's a free market after all.
    • AF
      Alex F.
      16 August 2020 @ 08:19
      Ado - thanks for your comment. Really interested in your take. I don't see much wrong with Bitcoin's high electricity consumption as I believe it gives BTC an intrinsic value in the same sense that Gold Miners have to spend $ on oil, machinery, labour etc which some argue gives gold its value. Ash mentioned that moving to PoS on Ethereum 2.0 would give Ethereum an advantage in terms of energy spent per transaction. What're your thoughts on the downsides of PoS vs PoW? You mentioned that PoS leads to more centralised decision making? How does this happen and could you point me to any examples where it has?
  • SR
    Spencer R.
    15 August 2020 @ 19:53
    Can y’all dig into Ripple and XRP and produce a video on that? Seems to be a lot going on there right now with large institutions and banks. Thank you for all that you do, very helpful.
    • IN
      Ian N.
      16 August 2020 @ 07:23
      1. ripple can't sell its XRP even at a discount, check out the quarterly reports. aka smart money staying away. 2. Jed + ripple team eternally dumping 3. securities case pending but ripple keeps kicking the can down the road. Please know that ripple agreed in a plea bargain in '15 that they premined XRP but where going to operate as a MSB...they haven't. 4. Moneygram admits to selling its XRP on upon receipt 5. Only evidence of 1 bank using XRP 6. aggressively arrogant 'community' 7. Community has insane conspiracy theories not based in reality, then puts a date on it, pushes the date back when it doesn't happen. 8. not cryptocurrency 9. chart is bearish AF It's a cult at this point I've done the dive, don't waste your time. It's only hope is the greater fool during the next BR.
  • MV
    Mathieu V.
    15 August 2020 @ 00:56
    Just to be clear. Proof of Work is absolutely vital for Bitcoin to be a store of value. The fact that you need to burn real world energy to produce a new bitcoin block makes it tremendously difficult to tamper. If you ever wanted to tamper the bitcoin blockchain to benefit yourself you would need to spend all the energy that has been used so far since the inception of the first block, which make it almost certainly uneconomical. Moreover, in a highly detailed report, CoinShares research reveals that 74% of mining activity runs on renewable energy ! Proof of Stake has other advantage but is making a huge trade off security wise.
    • AP
      Aneil P.
      15 August 2020 @ 00:59
      I would disagree that POW is essential to price value. Not true!! POW adds no value to core of what Bitcoin does. The value is in preventing Byzantine Fault Tolerance.
    • MD
      Matt D.
      15 August 2020 @ 01:53
      @Aneil P. Do you mean preventing Byzantine Faults - the tolerance seems to be a positive (tolerant to Byzantine Faults) - or am I misunderstanding your point. The POW effort does secure the bitcoin blockchain to some/a large degree which upholds its value too don't you think?
    • MV
      Mathieu V.
      15 August 2020 @ 13:41
      Regarding Bitcoin PoW is definitely essential to price value, that is what makes it so secure and therefore could be defined as store as value. The fact that everyone agrees that Bitcoin is the most secure blockchain gives it enough trust to be consider a store of value among others properties.
    • MD
      Matt D.
      16 August 2020 @ 04:12
      @Aneil P - just thinking about your comment, I think you are saying that POW is a way to ensure consensus in the network, which "prevents" Byzantine Faults?? This to me is essential to the value of the network, and why BTC is so original - so not sure still why you would disagree. POS is trying to achieve consensus a different way, which some do question. Anyway. You might have be able to comment more on this?
  • dm
    dude m.
    16 August 2020 @ 03:15
    OMG...I've only two other posts and I'm already feeling insignificant. DLS
  • dm
    dude m.
    16 August 2020 @ 03:13
    Love seeing my comments on line. I'm such a hero. DLS
  • dm
    dude m.
    16 August 2020 @ 03:12
    Awesome.
  • hr
    harlan r.
    16 August 2020 @ 02:06
    At the JOB, I receive dollars in exchange for useful work, that unit can be converted into another form of work/symbol, we call it BTC. We convert hydroelectric power to a unique synthetic artifact. It cost thousands or more in amperage (heat) to create one, that is proof-of-work, the conversion of power to a unique string. Ether has technical problems at scale that most cannot contextualize.
  • HJ
    Harang J.
    14 August 2020 @ 23:42
    Bankless (by Ryan Sean Adams) had a great analogy: BTC is digital gold, unstaked ETH is digital oil, and staked ETH is a digital bond. In Bitcoin, you get BTC by mining. In ETH 2.0, you get ETH by staking ETH.
    • MC
      Mark C.
      15 August 2020 @ 13:20
      Digital gold isn’t PAXG?
    • HJ
      Harang J.
      16 August 2020 @ 01:56
      Digital gold is an analogy. PAXG is tokenized gold.
  • RN
    Robert N.
    15 August 2020 @ 09:59
    Last year I attended a conference where Jim Rickards was up against a panel of crypto enthusiasts/promoters and took no prisoners. I see on his Twitter feed' most recent tweet that he is still somewhat intemperate on the subject. "@JamesGRickards 6h When Bitcoin groupies try to advance the case, they reveal profound ignorance of monetary economics. Scarcity is not a benefit, it's a detriment. With scarcity comes deflationary bias, which precludes a bond market, which destroys reserve currency status. It's the bonds, stupid." I'd love to see Raoul interview Rickards and Roubini who is similarly outspoken on the topic.
    • MC
      Michael C.
      15 August 2020 @ 10:40
      And XRP supply declines over time.......
    • MG
      Marcus G.
      15 August 2020 @ 17:34
      May you share a Link with a good summary on the deflationary tendency precludes bond market argument? Never heard of it. Thx
    • JD
      Jimmy D.
      16 August 2020 @ 01:52
      Do you realize how small a bitcoin can be broken down? I doubt there will ever be a shortage of bitcoin in anyone who is alive's lifetime. 21 million bitcoins breaks down into a lot of bitcoin to use.
  • LK
    Lalith K.
    15 August 2020 @ 13:07
    What is the difference with a PoS crypto instrument with a premine (e.g. Cardano, EOS, Ethererum 2) and a ponzi scheme? Early entrants acquire more tokens for free (sacrificing only opportunity cost through lock-up), and the value of the token is supported by the new entrants. PoW, on the other hand, has a balanced incentive structure. Marty Bent's characterization of ethereum as "the next Theranos", might be prophetic.
    • pg
      petter g.
      15 August 2020 @ 13:10
      Agree, Ash is showing his his heavy Eth bags. Proof of Work isn’t a waste of energy, if someone is paying for that electricity how is it a waste? This line of arguments was 2018 ethplaining.
    • JD
      Jimmy D.
      15 August 2020 @ 14:14
      Crypto has a lot of potential for cross border money movement that normally takes many days and lots in fees. I can send a bitcoin to Mexico from New Jersey if an hour or two for a few cents. You can't do that at the bank. Bitcoin's real use case is a dollar/fiat wrapper for moving dollars places it's hard to move them. It's both a storage unit for dollars and a vehicle for dollars.
    • TS
      Thomas S.
      15 August 2020 @ 16:04
      @Jimmy D. i am curious about something with respect to cross border movements like your NJ-Mex example. Presumably, if the recipient is "keeping" the BTC, no big deal; however, if it is a remittance flow, isn't someone subjected to risk of price movement ? BTC has been volatile .... can't see folks wanting to send $1,000 of value back to their home country but end up with $800. Is there a way to protect against this ?
    • JD
      Jimmy D.
      16 August 2020 @ 01:36
      @Thomas S The fees for wire transfers and moving money are extortionary to the point a 200 dollar move in bitcoin dosen't matter
  • RD
    Reginald D.
    15 August 2020 @ 23:30
    Raoul and Ash knocked it out of the park again....I swear your chats are usually among my highlights of the week.
  • CM
    Chris M.
    15 August 2020 @ 19:17
    Be careful with Ethereum its still in the research phase. The blockchain complexity has increased dramatically with PoS no one really knows if it will scale with the same security as PoW. They have a entire team dedicated to security research on the testnet that just launched.
    • AB
      Ash B. | Real Vision
      15 August 2020 @ 22:48
      Yes. Very true. I’m always careful to qualify my comments on this point.
  • dd
    diego d.
    15 August 2020 @ 22:08
    Cardano best and most decentralized proof of stake system.
  • SL
    Sean L.
    15 August 2020 @ 14:01
    Great chat as always guys but the discussion of proof of work was a disaster. i) Proof of work is not a waste of energy. It's an incredible innovation in securing a neutral monetary policy that prevents the abundant waste of excessive-debt-fuelled-consumption. ii) It's driving innovation in renewable energy and general energy efficiency - and that drive is just starting. iii) It's helping to monetize stranded energy assets that would otherwise be wasted energy. For illustrative purposes, let's pretend that 3% of the world's energy is wasted and that the bitcoin mining network uses that 3%. You can't then say bitcoin is bad for the environment just because it uses that 3% (more than most countries) if it would have otherwise been wasted. I strongly recommend reading Nic Carter's piece on this topic (it's probably way past time to have him on as well - although don't have him waste too much time on this non-issue): https://www.coindesk.com/the-last-word-on-bitcoins-energy-consumption
    • QC
      Queena C.
      15 August 2020 @ 20:50
      I agree. Doesn’t anything other than proof of work a violation of the triple ledger, diluting value. While I’d disapprove of an non-ecological energy consumption, necessity is the mother of invention and will force innovation and investment in much needed clean energy
  • DN
    D N.
    15 August 2020 @ 02:54
    Some other areas to consider on why Proof of Work like systems are really interesting: - Proof of work basically picks a distribution mechanism for the security of the network based on energy distribution. Energy is the most distributed resource we have on the planet (the sun always shines somewhere...). I cant think of many other naturally occurring phenomena that have a distribution pattern that is as wide as energy. - Proof of work can potentially be really interesting from the perspective of energy markets. Most energy markets require extraction of a raw commodity, which then must be "pipelined"/"shipped"/"driven"/"moved by rail" to its end destination for processing and usage. Proof of Work based systems allow you to DIGITALLY transport stored resource in the ground into a fungible digital value (e.g. Bitcoin, other crypto) which has global 24/7 liquid markets that allow you to sell it. This creates an alternate source of monetization method for E&P producers that is entirely market driven. - Building on the point above, if you're a renewables producer, large baseload producer (nuclear, geothermal etc) dealing with issues of either intermittency / lack of viable energy storage/ a inelastic supply, plugging in a modular mining rig to run Proof of Work type computations can allow you to offset your spare energy usage into something else that is productive. New startups working on this that are completely under the radar, and only a subset of crypto VCs really looking seriously at this.
    • TC
      Tor C.
      15 August 2020 @ 19:56
      Honest question: why would you ever need more than the btc pow? Why use(waste) resources on systems that will never be as secure as btc?
  • MT
    Mark T.
    15 August 2020 @ 19:07
    Really looking forward the precious metals week. Dan Oliver and Simon Mikhailovich are really strong.
  • CM
    Chris M.
    15 August 2020 @ 18:25
    The consensus algorithm changes from expensive computational puzzle soliving to stacking coins. This is what secures the network from double spending. Both algorithms require resources to validate a block (mechanism of security) but PoS replaces the electric consumption to staking your coins meaning the coins can be removed from the miners wallet if he tries to validate a fraudulent block. Therefore eliminating the scaling problem with PoW which can't scale because of the computational work required.
  • CC
    Connor C.
    15 August 2020 @ 01:22
    The notion that Proof of Work (PoW) is an outdated/wasteful/inefficient network-validation/security method is a fallacy that reveals the claimant's lack of understanding of the value proposition. Yes, PoW requires electricity to validate the network. But, in order to validate the network, miners compete to mine the next block (which is how they win the bitcoin block reward and make money in doing so). As such, PoW naturally incentives miners to find the most efficient means of mining. This leads to miners pursuing the cheapest forms of energy possible. Energy markets are progressing toward sustainable, renewable and cost effective solutions - which miners are trending toward (we already see this happening around the globe). We're talking about a new financial system here. One that will potentially compete with the traditional financial system - which runs a much more inefficient methods of energy consumption. If the BTC network ever reaches the point where it's a true alternative to the legacy financial system, it will actually provide a significant value proposition with respect to minimized consumption of energy and a trend toward sustainable, renewable types of energy consumption. PoW, therefore, is not a waste of energy. It also allows for the most efficient market competition possible, whereas Proof of Stake essentially acts as a rich-get-richer scheme (the more you have, the more you make). You can see how this will eventually lead to massive concentrations of wealth or, said differently, wealth inequality/poor wealth distribution. PoW combats these incentive structures. Cheers Guys!
    • AR
      Andrew R.
      15 August 2020 @ 01:26
      Hey mate, proof of stake isn’t a rich gets richer. Very few proof of stake protocols reward larger balances more these days. In fact many stake pools have reward dilution limits that stop this happening. Basically if you exceed to much in a stake pool or single node the return diminishes and you are incentivised to create another pool with additional participants. Yes in theory, the people with more nodes can get more yield but that’s a kin to being angry and people with lots of money making more interest on their money even though the interest rate is the same for everyone.
    • AR
      Andrew R.
      15 August 2020 @ 01:28
      P.s agree completely with your assessment of POW and it’s evolution and may I see very well articulated for the complexity of the topic.
    • MD
      Matt D.
      15 August 2020 @ 01:45
      Thanks - nice comment. I was thinking the same (yet don't have your knowledge of POS .... yet.
    • CZ
      Chase Z.
      15 August 2020 @ 17:43
      "PoW naturally incentives miners to find the most efficient means of mining" - You can say this about any kind of consensus algorithm. "We're talking about a new financial system here" - Again you can say that about most cryptos.
  • RK
    Roger K.
    15 August 2020 @ 17:29
    #tether????
  • DR
    Derrick R.
    15 August 2020 @ 00:10
    In the discussion of the promise around Ethereum 2.0’s scalability and untethering from expensive PoW, you come so tantalizingly close to describing just why XRP has so much potential, that I’d only add the fact that it doesn’t tangle its core blockchain with arbitrary code execution from smart contracts, a vulnerability of ETH, but will be addressed by other layers/ forks (see Codius/Flare). A deep dive on Ripple / XRP is so desperately needed, just make sure you interview someone who didn’t learn everything they know about XRP from people who only understand Bitcoin.
    • SS
      S S.
      15 August 2020 @ 01:01
      You commented in the past on my political commentary and now you are shilling scam and shitcoin xrp? Are you serious? Everyone ignore this person from now on.
    • DR
      Derrick R.
      15 August 2020 @ 01:48
      Who even are you? I’m living rent free and don’t know the address to my apartment!
    • BA
      BURHANUDDIN A.
      15 August 2020 @ 15:50
      XRP, which is neither Proof of Work nor Proof of Stake, is great but I think Ripple has been limiting itself by being too focused on one use case, which is mainly international remittances. And Brad Garlinghouse made a mistake by taking his Peanut Butter Manifesto, which was originally for Yahoo, too far for Ripple. They are doing a big disservice by doing nothing about DeFi, for which XRP is a natural fit.
  • FD
    Frank D.
    15 August 2020 @ 15:22
    Bookmarks would be nice, to be able to look at some topics or skip them.
  • AW
    Abigail W.
    15 August 2020 @ 13:42
    It surprised me hugely that Ash was trying to explain the fundamentals about Ethereum to Raoul. If you don't understand basics, you can't assess the risk and reward, you can still trade it, but it's dangerous to hype Ether in a public interview. Many newcomers will be sucked in who does not have the fundamental believe to survive the volatile time. I have high respect for Raoul, however people who enjoys the accepted thought leadership should be cautious in communication. After the March crash, RV had been positioned very bearish, it has been getting more neutral in the past weeks (probably with equity markets hitting ATH). That's why I terminated the RV subscription with pending reassessment. BTW, I am long/long-bullish on BTC/ETH, ETH is ripping hard, but it is still an asset with high risk. Peter Brandt has more reasonable approach.
    • JD
      Jimmy D.
      15 August 2020 @ 14:11
      Do you really need to know what you're trading though? In most cases you really don't. I've traded many companies that I don't know what they do, just that the chart is correct. On a daytrading or weekly basis what the company does is not relevant. On larger timeframes I'd say you're correct however.
    • JD
      Jimmy D.
      15 August 2020 @ 14:18
      No doubt there are plenty of bearish commentators on RV but it's not like they don't also give people who believe in inflation and a bull market time to speak.
    • AW
      Abigail W.
      15 August 2020 @ 14:19
      @Jimmy: we are not in a trading channel either ;-)
  • TY
    Thomas Y.
    15 August 2020 @ 00:59
    Normally I have nothing but kudos for RV content. But I must say that I the characterization of BTC vs. ETH is way way off. Simply put: Bitcoin is THE hardest money with a 21 million supply cap. 100% certainty. Ethereum is not a hard currency at all. It is not a store of value. THERE IS NO CAP ON SUPPLY. In fact, the Ethereum developer community can't confirm the current supply outstanding. Yes, you read that correctly. How is Ethereum any different than fiat?
    • MD
      Matt D.
      15 August 2020 @ 01:49
      Yes. I was wondering that too. The whole scarcity argument (eg Plan B) can't be generalised. BTC sure. You can see how this whole space is potentially poorly valued. The simplicity of fiat or gold (after it is mined) has a lot of advantages.
    • AR
      Andrew R.
      15 August 2020 @ 02:25
      Agree but we need to be careful not to get tied up with what something is today in comparison with what something is trying to become. The Value in Eth is the applications that will run on the protocol and I have no doubt BTC will run with those applications as the means of exchange but that will take time. Eth is still exponentially valuable if it becomes the protocol for transmission of digital finance despite what we use as the means of exchange. Agree? Disagree?
    • MD
      Matt D.
      15 August 2020 @ 02:56
      Hi Andrew, Yep I agree in principle. There are some things I dislike about ETH as "money" which others have already mentioned, yet the point you make (DeFi) is true. I need to educate myself more on the "how" to be able to comment more confidently.
    • TY
      Thomas Y.
      15 August 2020 @ 13:58
      By the way, I would STRONGLY suggest inviting Andreas Antonopoulos on to RV to explain the difference b/t BTC and ETH. Key reasons: 1) He's agnostic and only cares about the tech (not a BTC maximalist). 2) He has written books on both BTC and ETH and actually knows the tech. 3) He is also arguably the most articulate teacher on cryptocurrencies in general. Hope it happens for you and your viewers.
  • UJ
    Ulf J.
    15 August 2020 @ 05:57
    here is a staking calculator for Etherium you can play with to see how much yield you earn with 2.0. https://www.stakingrewards.com/earn/ethereum-2-0/calculate
    • RS
      Ravinder S.
      15 August 2020 @ 13:36
      thanks!
  • KN
    Kresten N.
    15 August 2020 @ 13:01
    Seems like there is an opportunity here to make a video explaining the difference between the different fundamentals of crypto - made for traditional investors, not tech guys. I don't think being invested in BTC, ETH etc. is good if you don't understand how they work. You will make way too many assumptions about what is possible and what is not.
    • pg
      petter g.
      15 August 2020 @ 13:14
      Exactly, this was me in 2015. I was stupid enough to believe in everything and lucky enough to stick around til 2017. Which is when I started to really read about this stuff. At the moment everything, excluding Bitcoin, is snake oil imho.
  • RN
    Robert N.
    15 August 2020 @ 10:38
    (31:03) Raoul: "It's not even in the FT ... they don't even talk about it". Is this a different FT than the one in which Izabella Kaminska has covered crypto almost since the start? Here is the pointer to their regular section: https://www.ft.com/cryptocurrencies Here is a starting point for Kaminska's many articles https://www.ft.com/izabella-kaminska In mid-2019 she wrote "" Roubini’s anti-shitcoin arguments during the debate will be familiar to readers of FT Alphaville. His key points focused on the crypto industry’s predatory nature, its exploitation and manipulation of “retail suckers” and its ironic lack of privacy, security, efficiency, decentralisation and usability. He also busted the myth that it can help the unbanked." On a rough count of https://www.ft.com/bitcoin?page=46 there have been 1132 articles with the first appearing on 6 June 2011.
    • RP
      Raoul P. | Founder
      15 August 2020 @ 12:43
      Most of her stuff was in FT Alphaville over the years and not in the main paper.
  • LR
    Luke R.
    15 August 2020 @ 02:32
    Ash, Raoul, the value of bitcoin is in part because of the PoW. The bitcoin wastes energy narrative that Ash suggested in this briefing outlines the lack of understanding. You boys need to do much deeper research on this. Vital for your /your viewers long term decision making in the space.
    • JW
      J W.
      15 August 2020 @ 12:22
      Good (still technical but you cannot avoid that) PoS and PoW explanation here: https://academy.binance.com/blockchain/proof-of-stake-explained
  • RE
    Renato E.
    15 August 2020 @ 07:50
    Yesterday, we probably had the biggest sell signal for BTC - LOL. https://twitter.com/stoolpresidente/status/1294051648533401600. How desperate are these Winklevoss guys if they have to talk down Gold by claiming Elon Musk is going to mine Gold on asteroids and therefore Gold is a problem because the supply isn't fixed like BTC. Seriously, is this the pep talk they come up with after many, many years in the business? This was hilarious.
    • MR
      Michael R.
      15 August 2020 @ 12:16
      The Winklevii could have done much, much better with Portnoy.
  • MR
    Michael R.
    15 August 2020 @ 12:00
    Why does Bitcoin not get financial media coverage? Legacy finance does not want to cut the branch upon which they sit. Bitcoin is the most asymmetrical trade in history. The smart money is buying Bitcoin.
  • PD
    Pieter D.
    15 August 2020 @ 09:47
    I love Jack's remark at 14m22 in light of ETH's supplygate :).
    • PF
      Pablo F.
      15 August 2020 @ 11:54
      That wasn't because of ETH's supplygate; that was because exchanges' volumes are mostly bullshit. I doubt Jack even knows about supplygate tbh.
  • IN
    Ian N.
    15 August 2020 @ 11:02
    Disappointed to hear you don't understand the PoS is not cryptocurrency, by definition. PoS is a security. So many call blockchain, cryptocurrency. It shows a lack of understanding. The new 'crypto' 'investors' aren't buying cryptocurrency, most actually dislike cryptocurrency, as they ignorant to what cryptocurrency is. I've put the definition below as well as the paper its derived from. This paper made cryptocurrency a commodity, regulated by the CFTC in '15. cryptocurrency - a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. https://digitalcommons.law.msu.edu/cgi/viewcontent.cgi?article=1003&context=jbsl
  • BA
    BURHANUDDIN A.
    15 August 2020 @ 10:38
    Learning the technicals behind cryptocurrency is a lot of work, even for one with a computer science background. One often feels unable to keep up, even more so recently with the explosive rise & constant innovations in the DeFi space the past few weeks. However if one is willing to do the work & not shy away from grokking the technicalities, then that would be an information assymmetry in your favor, not to mention that there is already an inefficiency in the market based on the fact that many people from the financial industry are constitutionally unable to accept it.
  • LM
    Lee M.
    15 August 2020 @ 00:23
    Maybe someone here can help educate me by answering this multi-part question. When Etherium 2.0 is live is that effectively changing the engine of Etherium? By this I mean that those holding stake in Etherium (version 1) are unaffected and new transactions will occur under proof of stake?
    • BA
      BURHANUDDIN A.
      15 August 2020 @ 10:20
      Yes & yes. Proof of State is still far off & won't be live this year. Only some parts of ETH 2.0 will be live this year & there will still be Proof of Work & mining. The biggest notable development this year will be sharding, which is expected to make the technology faster & cheaper.
  • CO
    Craig O.
    15 August 2020 @ 02:53
    Raoul, surprised you are so long an asset you do not understand. Proof of Work and Proof of Stake are the fundamental ABCs of first gen crypto. And ETH moving to POS (ETH 2.0) is not the forgone conclusion that Ash makes it out to be. I cannot begin to articulate the issues, but they seem to be fundamental. Suggestion: Tuur Demeester knows the issues well, and is good at communicating them respectfully. He's no fan of ETH, but he offers reasoned arguments (he even bought some ETH the other day, which probably angered the "Bitcoin maximalists".) I would love to see more thoughtful (than today's RVDB) consideration of the subject. Ash's claim that Bitcoin is wasteful and inefficient was even more surprising. Betrays a lack of deep understanding of the value proposition of Bitcoin. As Connor articulated well (below): "We're talking about a new financial system here. One that will potentially compete with the traditional financial system - which runs much more inefficient methods of energy consumption." Any objective evaluation of Bitcoin's resourcefulness and efficiency should be made RELATIVE to the alternative system. Again, Tuur (and no doubt a number of others) could make this case better than us in the peanut gallery. At any rate, today's RVDB makes it clear to me that more attention needs to be given to some fundamentals, preferably without the tribal evangelism that sometimes comes with the territory. (On that note I tip my hat to Dan Tapiero, who I've heard push back hard more than once in podcasts when well-known and followed personalities dis on $#!%Coins. He brings some needed objectivity and dignity to the space.) Some of us in the peanut gallery (and evidently Raoul and Ash) have a lot to learn on the subject and welcome some ABCs.
    • AR
      Andrew R.
      15 August 2020 @ 03:20
      How good is Dan! Totally changed my mind on the alt coin space and the broader crypto opportunity.
    • AB
      Ash B. | Real Vision
      15 August 2020 @ 06:31
      Hi, Craig. Thanks for the comment. Two quick points: (1) I would agree with you about ETH's transition from PoW to PoS being by no means guaranteed. (I was actually careful to say 'if' and 'could'.) (2) I'm a huge fan of bitcoin. PoW is the gold standard (pun sort of intended) for securing blockchains. That said, power consumption is an issue. Especially as blockchain solutions scale and adoption increases exponentially. I suspect there will be solutions to dramatically reduce power consumption -- perhaps as L2 hybrid model solutions. https://www.bbc.com/news/technology-48853230
    • CH
      Crag H.
      15 August 2020 @ 08:01
      I totally understand the excitement about Ethereum 2.0. But painting Eth2 as "The next level" and Bitcoin as "old and inefficient" comes across as somewhat disingenuous (at least to those of us who have been following this space for +5 years and understand the technology). - Proof-of-Work systems are inherently fair where every single miner have the *exact* same chance of mining the next block (the chance is proportional to your share of the mining market). By consuming energy via mining you have an economic input cost which is keeping the miners honest. This means that if you want to attack the system you need to spend huge amounts of money. Mining is a feature, not a bug. - In a Proof-of-Stake system you have no idea what the input cost is to securing the chain. By reducing the input cost to near zero you introduce a whole set of unpredictable and scary security issues. What happens if a malicious person inherits huge amounts of staking coins for instance? Once you get hold of staking coins there's no cost to doing the attack. Eth have already proved itself to be centrally controlled, so what are we trying to achieve here exactly? Food for thought. Also, saying that Bitcoin mining is wasteful is also not true. It's the fundamental reason why we now have the hardest and smartest money the world have ever seen. If Bitcoin mining is such an issue then maybe we should stop people from using Christmas lights as well? The problem is not energy consumption but the way energy is produced.
    • BA
      BURHANUDDIN A.
      15 August 2020 @ 10:11
      Tuur shifted his stance recently on ETH & many maximalist were not happy.
  • JC
    Jonathan C.
    15 August 2020 @ 08:25
    I think generally people misunderstand the concept of POW. The fact it costs an inordinate amount of energy consumption is alone a reason why there is value in any token that utilise POW. Just like there is an extraction cost to mine precious metals. The investment by the miners ensure that they keep honest otherwise they would risk losing the capital they have allocated. POS is trying to achieve this by removing the physical infrastructure cost and replacing with an investment stake. This is the same reason people by shares in precious metal miners rather than going out and buying heavy equipment and mining themselves. (They don't get their hands dirty in the mine)
  • JC
    Jonathan C.
    15 August 2020 @ 08:11
    One of my most used comments about work and investments is "if it was easy then everybody would be doing it and then it wouldn't be with doing"
  • JA
    Jose A.
    15 August 2020 @ 00:29
    I wish you would spend more time discussing topics other than crypto.
    • RE
      Renato E.
      15 August 2020 @ 07:54
      Agree - RV is becoming a cheerleader platform for crypto. I own BTC too, but the way the crypto nerds show up on almost every twitter thread and pumping their pet up is turning me off.
  • DT
    David T.
    15 August 2020 @ 07:16
    Ethereum went up because of the LINK and what is link 90% people wouldn't even understand. Raul is taking blind risk.
  • DR
    Danilo R.
    15 August 2020 @ 04:38
    Precious metals had a nice run but I feel the less crowded trade is EM. Particularly China, Taiwan,South Korea, Norway, Sweden and Russia. Countries that had strong COVID containment seem be the big winners with USD debasement and election noise.
    • ES
      Edward S.
      15 August 2020 @ 07:15
      When people say EM is a big opportunity, what exactly does that mean in terms of an investment? How do you get involved?
  • JS
    Jon S.
    15 August 2020 @ 06:55
    Hello everyone, I like to have comments on Crypto. However, I think we should limit a little bit this crypto conversation and focus on Stock market, precious metals, commodities etc. Surely, Crypto could be the future of everything, but that we do not know and none knows. What we would like to have is Raoul analysis and Macro insights one time weekly. If this is something that only RV Pro users can have, I understand, but from time to time comments like the Unfolding and his ideas of "Liquidity phase, hope phase, insolvency phase". It is nice to talk about Crypto and I like how enthusiastic everyone is about it. However, I do not know, whether other users agree, but we could limit to 5 minutes talking about Crypto maybe?
  • DH
    Daniel H.
    15 August 2020 @ 06:18
    If crypto is a liquidity play, then it does depend on CBs printing. Very surprised to hear Raoul say crypto is completely separate from the rest of the world.
  • VK
    Vaclav K.
    15 August 2020 @ 05:40
    Raoul, isn't Grayscale is a crypto index fund? I am not sure how big it is but passive is in the crypto as well. Ash, you are the pro!
  • AT
    Andrew T.
    15 August 2020 @ 05:22
    Hey RV team. I would live to see an interview a week that looks at one of the future uses of blockchain, crypto or DeFi. I myself have started dabbling with Peer to Peer lending in Eastern Europe. And as an Australian that is a stretch! Would love to see some features and alternative perspectives
  • JA
    Jordan A.
    15 August 2020 @ 00:01
    I don't think there are any "clean" markets.
    • DR
      Derrick R.
      15 August 2020 @ 00:11
      Amen.. whales control crypto
    • MC
      Michael C.
      15 August 2020 @ 05:11
      How can BTC be a clean market when its ownership is so highly concentrated and its been hijacked by developers who arrest its development so they can add layers in order to take advantage of its deficiencies and extract fees?
  • PJ
    Paul J.
    15 August 2020 @ 04:11
    Raoul can start to add value by going into details the technical indicators he is looking at, rather than talking in terms of what he feels or thinks.
    • PJ
      Paul J.
      15 August 2020 @ 04:21
      And stop clowning around about speaking welsh when his ignorance is preventing him from understanding what Ash is saying
  • JS
    Juraj S.
    14 August 2020 @ 23:23
    No one trading Rhodium?
    • AB
      Alastair B.
      15 August 2020 @ 04:13
      I’m watching, but not trading. When Rhodium is this high I allocate to cash.
  • PP
    Patrick P.
    15 August 2020 @ 02:59
    I have an investment rule ... If you can't explain it to me or I can't explain it to you....it's not an investment. And better yet if I can't click a mouse and make a buy... it also means that I can't click a mouse and secure my profit. As Kuppy says this is "my favorite ponzi scheme."
  • LB
    Leslie B.
    15 August 2020 @ 02:53
    These casual conversations with Raoul and Ash are always my favorite. Well, actually, there is so much great content on Real Vision.
  • MB
    Mickel B.
    15 August 2020 @ 02:49
    This investor market meets "crypto" market is interesting. Both have a lot to learn from each other. However, I see much more expertise on the reading and investment side which I appreciate. Just some things to keep note of... the fact that unlike Bitcoin, ethereum has no hard supply cap so scarcity is not one of its attributes. It could be argued it just isn't a currency at all, or is just like fiat in that regard. Actually so far nobody can count exactly how much were created. And lack of independent nodes arguably make it essentially centralized.
  • RR
    Ramon R.
    15 August 2020 @ 02:00
    If you want to dig deeper, here is a really good primer on Ethereum and the tokens that can be built on top of it: https://blog.ycombinator.com/the-token-effect/
  • GR
    Gabriel R.
    14 August 2020 @ 22:22
    Thanks Raoul, Ash, and Jack! Appreciate the Daily Briefing. Raoul often talks about the bond yields. I have a basic understanding of the bond market, but am not very sophisticated. Why have the 10 year bond yields been rising in the last couple of weeks? Appreciate any insight from other viewers. thank you!
    • JE
      Jonathan E.
      14 August 2020 @ 22:53
      In simple terms the Fed has decided to buy longer dated bonds hence the yield goes up. Why because they want to price in a new inflationary cycle.
    • CM
      Cory M.
      15 August 2020 @ 01:58
      Raoul mentions the big bond sale this week. The demand was weak, so the interest rates went up to make the sales occur.
  • JK
    John K.
    15 August 2020 @ 00:46
    Raoul your pain that you felt transferring money between your local banks is half of the pain that people feel trying to transfer money across the world. That is exactly the target of ripple. Ripple aim is to have xrp be the Bridge currency between ledgers. Just like how china has their own DLT, every country will soon and they will need a way to bridge them. You should look into the space more. I typed out a longer comment but the app glitched and deleted it so here is a short version.
    • MD
      Matt D.
      15 August 2020 @ 01:56
      Interesting - this is a small pause I have on crypto/bitcoin - is is tech dependent. What if the "app" glitched in a financial context... I understand peer-peer and there is a high degree of fault tolerance. Just thinking conceptually...
  • DB
    Daniel B.
    14 August 2020 @ 22:46
    Interesting that Raoul is bullish in Ethereum without really understanding it. However, it does seem like Ash knows quite a bit. I would like to hear more from Ash breaking down bitcoin and especially Ethereum and provide an explanation as to why RV is bullish.
    • OS
      Oliver S.
      14 August 2020 @ 22:58
      I'd suggest BTC is your digital currency (DC). ETH is based around applications. It's 2 different beasts. It's like saying how does the £ compare with Amazon.
    • GL
      Gustavo L.
      15 August 2020 @ 00:06
      Seems to me he was forcing Ash to explain it to us... playing the "average investor" advocate
    • JC
      Justin C.
      15 August 2020 @ 00:19
      The fact that so few people really understand the space is what frightens me from allocating more capital to it. If you don’t understand it, then you’re not going to stick with it when the price pressure gets extreme. I understand $BTC better than the average person, but I need to studying Ethereum further before committing to an allocation.
    • PS
      Paul S.
      15 August 2020 @ 01:48
      The Ethereum blockchain is used to hold contracts which allows the creation and settlement of a contract to be provable and decentralised (no banks or other third parties involved). It is up to the application creating these contracts what the contact is for, be it loans, votes, inventories, sales, copyright, provenance, IDs, back-stage passes etc etc. This is the basis of defi (decentralised finance). Proof of Work and Proof of Stake are two ways that the ledger holding the details of the contracts (the blockchain) can guarantee the contracts, POW by making it nigh impossible for a "bad actor" to fraudulently alter the contracts, POS by having enough stakeholders to check the ledger for fraudulent changes.
  • NS
    Nick S.
    14 August 2020 @ 23:48
    Love Raoul and Ash but can't believe Raoul does not understand proof of stake, tho is invested in the asset and talking about it frequently. Ash I think said proof of work is energy inefficient and implicated that is a bad thing. But that is what makes bitcoin unique compared to all the others. No agency and super secure precisely because you are blowing all this effort in it, auditing it non-stop.
    • MK
      Michael K.
      15 August 2020 @ 00:10
      Yup this bigly. The energy question shows a deep lack of understanding or just hoping to market your alt coin. Bitcoin does/will allow transportability or stagnant energy like gas flares or geothermal advantaged regions.
    • RK
      Ron K.
      15 August 2020 @ 01:24
      Yes, agree here. All that energy goes right into Bitcoin time and time again... every 10 seconds. You can also argue it incentivizes energy efficiency...better efficiency, more chance of reward. Just like gold and precious metal mining.
  • AR
    Andrew R.
    15 August 2020 @ 01:22
    You guys are awesome! May I assist with the proof of work proof of stake comparison. Proof of work: people allocate computational resources (essentially electricity) to solving cryptographic equations and if they are the first to solve the equation they then broadcast that to the network and the network seeks “proof they have solved the equation correctly” if they have then they receive a reward and the next block is transmitted for competition to solve. Proof of stake: Holders put lock their coins into staking wallets or stake pools (nodes) typically there is a minimum to stake. The more people who stake the more distributed the network is and the more secure. The nodes then solve the equations not very dissimilar to proof of work. If some acts maliciously they lose their stake and get kicked off the network. Think of it like a poker game we’re the players have to pay a significant blind to play before they see the cards. The winner gets rewarded for wining the hand and the next hand plays. If you cheat you lose your blind.
  • OS
    Oliver S.
    14 August 2020 @ 23:06
    For those that are new to DA (Digital Assets), it's well worth going on an online course......if you are going to put any significant capital in. You will then know how to store, and understand, the asset that you have. As a wise man said, 'if you invest £100, spend no more than £100 learning about it. If you invest £1m, spend some time educating yourself". I'd suggest that you understand in your mind the difference between a Digital Currency and a Digital Equity. At the end of the day, it may come down to zero; Until then, let's have some fun....
    • PS
      Paul S.
      15 August 2020 @ 01:19
      Some of us started with digital currencies in our portfolios, which we understand (sort of), it's the traditional markets we don't understand!
  • CW
    Collin W.
    14 August 2020 @ 23:35
    Cardano is the apple to ethereum’s Microsoft.
    • PS
      Paul S.
      15 August 2020 @ 01:10
      Or Cardano is Betamax to ETH's VHS, or MySpace to Facebook. Just paid $5 in Gas (fees) transferring $200 ETH, shocking
  • OM
    Owen M.
    15 August 2020 @ 01:06
    I'm pumped for metals weeks!
  • AP
    Aneil P.
    15 August 2020 @ 00:58
    or buy GBTC, a grayscale Trust fund that owns Bitcoin
  • AP
    Aneil P.
    15 August 2020 @ 00:57
    Buy MSTR, as an alternative to buying BTC, if you find it so difficult to transfer to Coinbase.
  • OS
    Oliver S.
    14 August 2020 @ 22:51
    Thank you for this Friday update. Great minds. As this was so DA heavy, my input. I've been investing in Digital Assets (DA) for several years. I think it helps if you decide if this is a Digital Currency (BTC, DASH), or a Digital Equity (ETH, EOS). I agree with Raoul that in terms of Digital Currency, this will be a great 2 year play. The free market won't allow significant market cap beyond that in my opinion. In terms of Digital Equity, ETH being the obvious one, it seems to be a case of which will be adopted first. Whilst ETH has the head start, EOS should outperform. And it isn't led my our Russian friend. But it's a case of platform adoption. Thank you RV. I encourage Digital Asset Pros into the space. I think this should be, at least, a small percentage of people portfolios. Please feedback.
    • OS
      Oliver S.
      14 August 2020 @ 22:55
      And Ash has some great insights. Please keep pouring those out. You have some privileged insights into the DA space. Please pass that on.
    • MP
      Matthew P.
      15 August 2020 @ 00:40
      What broker/platform are you using to get access to place the positions/trades. Binance & coin based Big ones hacked no credibility to have your money safe. Cme futures margin requirements make it impossible for most individuals to have a meaningful position.
  • BT
    Brian T.
    15 August 2020 @ 00:03
    Raoul, Exchanges like Binance offers purchase of BTC by credit card. ;)
    • RP
      Raoul P. | Founder
      15 August 2020 @ 00:19
      My credit card limit isn't big enough for major asset allocation ;-)
  • RL
    Renee L.
    15 August 2020 @ 00:17
    Fridays are my fav with Raoul! Please increase your coverage of the blockchain space- it is the opportunity to rebuild old infrastructure not only in financial markets but supply chain, management of assets, etc. The opportunity of a lifetime!
  • JC
    Justin C.
    15 August 2020 @ 00:16
    ESG meets crypto sounds like I’m about to get a reverse mortgage, on top of a time share on top of an Amway distributorship.
  • MK
    Michael K.
    15 August 2020 @ 00:12
    This is my opinion and not here to be toxic. But this ga ga over coins other than bitcoin is funny. It used to make me mad and make me feel like I need to tell people something. I don’t. I just hold bitcoin.
  • AM
    Alvaro M.
    15 August 2020 @ 00:07
    On point finish to the daily briefing today.."more coverage on cryptos" is in order boys.
  • BT
    Brian T.
    14 August 2020 @ 23:59
    The folks at Polychain are probably some of the leading investors and thinkers in this space. Especially the use of Proof of Stake and the emergent space.
  • GL
    Gustavo L.
    14 August 2020 @ 23:41
    One correction. YES we do have intervention in the crypto market. The liquidity we r drowning on has to go somewhere. It is either TDA / Robin Hood, or somewhere else... where else?? Crypto..!!!. Not sure how to explain Link going 3X in just 4 wks. However, at some point peeps might have to cash out, and then a correction will come about.
  • ER
    Ernesto R.
    14 August 2020 @ 23:33
    excellent show very exiting for the next week
  • ER
    Ernesto R.
    14 August 2020 @ 23:24
    I understand on etherium 2.0 is changing Prof of work POW for Proof of stake POS
  • DS
    David S.
    14 August 2020 @ 23:24
    Now that's a RVDB!....Raoul and Ash twice a week...Tues and Fri....amirite?...who's with me?
  • MD
    Matt D.
    14 August 2020 @ 23:15
    Great interview Ash and Raoul. Enjoyed the crypto chat - proof of stake has never been fully explained to me. I get it in that people put up like a margin to be allowed to be a validator (or forger - bad term in my opinion) - but then NO ONE explains how they validate if a block is authentic. They just go on to list the benefits, and then describe in detail POW which is easily understood. That aside - I appreciate the insight of this space being very poorly priced at the moment, allowing for great opportunities. Risks are there but still. Bond yields on the 10yr an interesting one too this week - isn't there a red line soon where there might be more forced selling? Looking forward to the next three weeks. Enjoy your naps/weekend. Cheers.
  • RC
    Ron C.
    14 August 2020 @ 23:11
    Use me as a like button if you’ve watched/listened to at least 90% of RVDB’s. Where my lifers at!
  • JA
    Jonathan A.
    14 August 2020 @ 23:02
    Amazing content! More from Ash breaking down Ethereum and Raoul Pal asking tough questions moving forward.
  • ES
    Edward S.
    14 August 2020 @ 22:50
    I hope Real Vision is not top ticking the gold market with the special next week.
  • SS
    S S.
    14 August 2020 @ 22:47
    The best person I have ever heard talk about Crypto and explain it beautifully in simple language is Bill Tai. Invite him back please.
  • RS
    Ravinder S.
    14 August 2020 @ 22:44
    Great to hear you guys talking about ethereum :) Ash did an super job explaining proof of stake. So you need 32eth to stake one node. From this you can earn interest on top by validating transactions on the ethereum network.
  • MR
    Mark R.
    14 August 2020 @ 22:36
    Nice to see a DB that discusses the actual daily/weekly occurrences. Some of the recent DBs have deviated from the typical format - a review and discussion of what occurred. Guests are fine but maybe would be better as their own video interviews.
  • SS
    S S.
    14 August 2020 @ 22:33
    Either Raoul's chair keeps making strange noises or he ate a very bad curry and has an upset stomach. Immodium is good I hear.
    • SS
      S S.
      14 August 2020 @ 22:35
      When there is 8min 33 second left on the video. Raoul looks very guilty.