Do i think we're a crypto winner no i don't think we're the crypto winner i think we're fighting through a lot of macro issues right i think the first decade you saw these drawdowns of 80 85 and i think in the last two years we've seen drawdowns are like maxed out at 50 or so might have been a 55 or 53 or something but the volatility is less i think that the asset class is maturing i guess you know there are a lot of reasons why the asset class is volatile the lack of wash trading rules the extreme leverage the cross collateralization the security tokens the 24 7 365 the uncertainty the accounting treatment,

I could give you a litany of why it's volatile i could tell you why it's getting less volatile and that says as more institutional investors come in and as their time horizon gets longer it'll get less volatile and it will get less volatile as more regulation comes ironically a lot of things that people think are bad or will actually be good for the asset class like if the house decides that they're going to implement the wash trading role and that means you're not allowed to sell something and buy it back the next hour if that happens a lot of fast money trading will be discouraged,

It would be good that would be good that would decrease the volatility yeah because like right now if apple stock traded down 10 you don't sell 100 billion of it and buy it back in anticipation of tax harvesting because you know you have to wait 30 days before you can buy it back so apple stock is less volatile because of that rule but the cryptos don't have that rule so it's like the tax law encourages you to sell whenever you have a loss yeah right and that and that's kind of like you know that's a green light for fast money traders to come and they're like since they should sell and they know you should sell then they're gonna make you sell so they can buy back cheaper,

So you've got some built-in structural incentives for it to be volatile do i think we're a crypto winner no i don't think we're the crypto winner i think we're fighting through we're fighting through a lot of macro issues right like that people are uncertain about the degree and extent of regulatory intervention and what will happen they're uncertain about geopolitics you know be it either you know russia china policy on crypto versus you know ukraine and the like they're uncertain about ma about monetary policy like they're like there's no inflation so bitcoin trades down my there's massive inflation,

The fed's going to raise interest so bitcoin trades down you know and so i think there's we're working through that in the near term you get beat up a little bit but there are countervailing forces and the forces that are that are taking the volatility away are regulatory clarity it'll be a good thing and every single one of these things that gets fixed will decrease it'll decrease volatility and it'll increase the value of the entire ecosystem the second thing is all of these public companies like public bitcoin miners as they come public and they raise capital they're stabilizing the entire asset class,

I don't know if you notice but marathon marathon did a big convert offering 650 million dollars a few months ago and then just yesterday i think they announced a 750 million dollar atm equity shelf registration other miners you know hut 8 have announced another shelf registration riot did a 600 million dollar equity raise there will be 24 companies that came that will be public by the end of the quarter terra wolf came public core scientific came public with a multi-hundred million dollar equity raise any time a bitcoin miner raises money there's only one thing that's happening there which is that means that that money is being spent either on mining equipment or it's being spent on bitcoin but ultimately it it's really being spent on bitcoin because if they have the capital that's that much less bitcoin they're selling,

And so these this whole crypto winner idea was boom and bust cycles and living through the four-year halvings but what happens is once half of the hash power of the network is public i don't know if you notice the bitcoin mining council is like 46 of the hash power of the network now and most of them are you know not all of them but a lot of them are public as those companies come public and they buy up the private miners and they issue equity and they issue debt then the amount of bitcoin they sell decreases and the stock to flow increases and the stock to flow eventually goes to infinity and that means the available supply you know each each day goes to a trickle,

That creates price pressure so those dynamics are going to decrease volatility if banks are able to hold bitcoin on their balance sheet like the big banks they get comfortable and fdic guidance would be a critical catalyst there then you're going to see a big demand and then if you see companies like silvergate bank issued credit lines if you have fdic insured banks they get a green light to do stable coins a green light to get into crypto lending then people that own bitcoin don't have to sell the bitcoin if they don't sell the bitcoin instead of holding it for four years they hold it for eight years if they hold it for eight years it's the same as the stock to flow doubling,

So there are all these dynamics like even the block five settlement well it's painful on one hand on the other hand if you have publicly traded companies or in this case they're not public but if you have licensed companies in the us that are able to raise hundreds of millions or billions of dollars capital to give you yield on your crypto then you're going to have a lot more people think i should hold it not sell it maybe i'll buy it not sell it and so the key to an asset class maturing is you either need to be able to rent it like you need to rent your building or you need to be able to mortgage it and if you can put a mortgage on a house you'll buy a house,

And if you can rent that warehouse maybe you'll buy that warehouse and rent it out as an investment property and so as the as the entire industry matures and as people can mortgage things and they can generate yield on things and as the bitcoin miners get public and have access to lots of cheap capital then i think what you see is volatility decreases the price increases if you want to listen to the full interview click on the link provided in the description we would love to hear your thoughts comment down below if you're new to the channel don't forget to hit the subscribe button and bell notification thank you for watching daily dose crypto.