Coindesk: Are Crypto Markets Overheated?

Published on
February 8th, 2021
Duration
56 minutes

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Coindesk: Are Crypto Markets Overheated?

The Interview - Crypto ·
Featuring Daniel Cawrey and Ash Bennington

Published on: February 8th, 2021 • Duration: 56 minutes

Daniel Cawrey, senior markets reporter at Coindesk, joins Ash Bennington, Real Vision senior editor, to discuss Cawrey’s recent book, the current crypto market environment, and what changes he sees on the horizon. Cawrey explains that the primary goal for his book, “Mastering Blockchain,” is to educate a broader audience about the mechanics of blockchain and cryptocurrencies as well as for it to be used by universities to further this goal. Believing that there are many new sophisticated players entering the crypto derivatives markets, he states that there is record high interest in the crypto futures lately. Cawrey also argues that the markets are becoming overheated, and he explores how competition between crypto projects is growing as more people enter the space. As Cawrey is confident that the crypto space is still in its early stages of growth, he is excited about the future and increasing competition for smart contract platforms. Filmed on January 26, 2021.

Key Learnings: Crypto is still very early in its development, and increased valuations bring more competition to the table, which implies that there is potential for the leaders like Ethereum to be disrupted. Cawrey believes that the current markets are overheated in the short term, but that crypto is here to stay.

Comments

Transcript

  • RZ
    Richard Z.
    17 February 2021 @ 02:03
    Fantastic interview! Thank you both. What I don't understand is if USDT is so untransparent in its holdings, why is it still so dominant? with other alternatives, I would think that uses would chose to use a more transparent and less risky stablecoin?
  • TP
    Timothy P.
    8 February 2021 @ 18:41
    Another day, another RV Crypto interview that insists on using the "Bitcoin Maximalist" slur coined by ETH dictator Vitalik Buterin. Seriously Ash, you're a journalist and you can't just use "Bitcoiner"? Every time RV does this, it just makes you look like a bunch of rubes. I don't get why you want to alienate a good portion of your userbase by insisting on this phrase. As for the guest -- I can spot a statist a mile away -- He pulls out the usual tropes "Too Volatile" and infers that fiat is "stable". He also is way behind in the stablecoin space - and it shows. This is the kind of guy who thinks his account balance is fully insured by the FDIC. He thinks that inflation isn't a "big deal" and pretty much is totally dependent on the existing system, so he thinks like an academic or someone hip-deep in banking. Eh, I'm tired of giving away info -- so I'll just let him wallow for kicks.
    • AB
      Ash B. | Real Vision
      8 February 2021 @ 20:59
      Hi, Timothy. Thanks for the comment. I appreciate the sentiment regarding the view of bitcoin. This is something that we are thinking about inside RV right now -- and I'm leading the charge to tell the story from the Bitcoiner perspective in deeper and more nuanced way.
    • TP
      Timothy P.
      9 February 2021 @ 00:36
      @Ash B. - Appreciate the answer. I sincerely hope that is true. I'll look out for that in future vids.
    • CC
      Christopher C.
      9 February 2021 @ 03:19
      Most Ethereans I know believe that Bitcoin and other alternative platforms will coexist, but there are certainly Bitcoiners out there in the world that feel that believe every other coin is shit and provides no actual value to the world. Those folks are certainly Maximalists. I wouldn't view it as a slur, it's just like calling someone a Gold Bug. You there's the Peter Schiff's of the world and similar folks like him on the BTC side.
    • TP
      Timothy P.
      9 February 2021 @ 16:34
      Christopher C - Bullshit. And I say that after having lived through crypto trends since 2011. Most ETH people love the idea of "The Flippening" and use it in their tweets to irritate Bitcoiners. So don't pretend they're these coexist hippies, because in my experience they want to take down the big dog just like everyone else.
    • mw
      michael w.
      10 February 2021 @ 05:56
      Why are maximalists so threatened when other assets are given attention? Very telling of some in this space.
    • EF
      Eric F.
      15 February 2021 @ 20:50
      Stop being a dick. Whatever points you have - valid or not - just keep getting lost with your salty comments.
  • Bp
    Brent p.
    13 February 2021 @ 02:05
    Oh man - I'm about a hundred pages in to Mastering Blockchain - it's so excellent! I don't code, but it relays the concepts so well. What a delight to then stumble into this interview. And thanks for the wonderful book Daniel!
  • LD
    Louis D.
    11 February 2021 @ 11:57
    Ash - great interview as always. You have a skill with what you do. Watching the Tether situation closely. This could have a domino effect not just in the Crypto space but in the US stock market as well. When you have premier names like Tesla, Square, Paypal entering this space you will see repercussions up and down.
  • NS
    Ned S.
    9 February 2021 @ 02:56
    "Overheated market, don't see anything of value, Bitcoin is expensive" Not even a minute later, "I think we are in the first inning"
    • LD
      Louis D.
      11 February 2021 @ 11:52
      You can be in the first inning of evolution but overshoot in valuation.
  • JC
    Joshua C.
    11 February 2021 @ 03:50
    If you want to use a "private blockchain" for its immutability (nobody is allowed to tamper with the history), isn't what you really need just a git repository? Calling it 'blockchain' is just trying to use a marketing buzzword to make it seem more sophisticated than it really is. At least half of the sophistication and complexity of public blockchain protocols is in the mechanism to disincentivize bad actors. Take that part away and you are left with just something akin to a git repository.
    • JC
      Joshua C.
      11 February 2021 @ 03:57
      To elaborate, a git repository is basically a database for computer source code with a history of the changes to the code linked to one another, similar to how one block in a bitcoin blockchain is linked to the previous block. It's essentially a database storing the entire history of changes.
  • PU
    Peter U.
    9 February 2021 @ 16:51
    I have to give a huge hat tip to Ash. Ash, you have become such an excellent journalist and interviewer! Well done.
  • CB
    Christopher B.
    9 February 2021 @ 04:13
    Awesome interview
  • JH
    James H.
    9 February 2021 @ 03:51
    Great interview. The Tether situation seems concerning. If they turn out to be wirecard 2.0, it could set the entire space back quite a bit and potentially even eject some institutions.
  • WS
    William S.
    9 February 2021 @ 00:21
    Sorry - didn't listen to 85%...
    • JH
      James H.
      9 February 2021 @ 03:39
      Your loss.
  • CC
    Christopher C.
    8 February 2021 @ 10:45
    Bring in the legacy regulators...and THEN the innovation can happen? What does it even mean to regulate a smart contract? It has no borders, it's just code on the blockchain. The innovation is already happening at a rapid clip. CME futures are not the future.
    • cw
      chris w.
      9 February 2021 @ 01:11
      Agree and in this case, represent only the monied interests who are in a position to back the 42k to hold a contract. The 'whales' have had remarkable success in shorting futes, banking fiat, wash/rinse, etc. It's a nice way to make a killing if you have the bankroll.
  • cw
    chris w.
    9 February 2021 @ 01:01
    Good interview. Well reasoned and informed. Obviously it would have been hard for either of them to know what was going to happen a day or two later. I think it's hard for anyone that's using conventional indicators, etc. to anticipate price movement in btc. By all measures RSI is blown out, but then again, wasn't RSI blown out for TSLA?
    • cw
      chris w.
      9 February 2021 @ 01:06
      I say that not because Daniel made reference to indicators, but this is what I immediately think of when hearing the "it feels overheated" sentiment. Similar thoughts were heard on CNBC at 20k. At what point do you simply acknowledge that this is a bit of a game changer, and that measuring BTC as if it is an actual commodity is probably not going to work, even though it's labeled as a commodity.
  • WS
    William S.
    9 February 2021 @ 00:20
    Need somebody who can layout the various competing factions in the digital; buildout space - ie pro's cons of various projects and potential....
  • WS
    William S.
    9 February 2021 @ 00:15
    Request - bring on again ARCA CIO/Analyst from his team...thx
  • VP
    Vaughn P.
    9 February 2021 @ 00:12
    Ash, you are doing a great job. Keep pressing on man. Well done as always. V
  • DH
    Daniel H.
    8 February 2021 @ 21:57
    Thanks guys. Good overview of the current market. Tether especially looks like at least a short-term risk. They have stated that some of their assets are kept in crypto: how much is anybody’s guess—obviously works great going up. Some transparency here would sure help market participants to fairly judge risk. P.S. NFTs seem like they are on the verge of break into the mainstream. Would be really interesting to here how artists and such are using them (e.g., Opensea, et. al.)
  • MW
    Mariusz W.
    8 February 2021 @ 17:22
    I envy the skill, talent, the sheer mastery of Ash Bennington as a host. He´s both always spot on and just incredibly self-restrained in guiding his guests through the matter. There are not many hosts out there who raise up to Ash. Wow.
    • AB
      Ash B. | Real Vision
      8 February 2021 @ 20:56
      Thanks, Mariusz. That's very much appreciated.