Live on Bloomberg TV

00:00How much has your world been overshadowed by what currently is unfolding with FTSE X, which is sort of a centralized part of a decentralized future and hope. But I'm interested whether you found an uprooting of your world to. Airline ad the biggest lesson here is that the value is in bitcoin and self custody and not crypto. And that's the lesson that we get in every bear market when the tide goes out. So as long term equity investors still mark is focused on the accrual and build of sustainable value, an enterprise value specifically, and that hasn't changed in any fundamental way. Instead, I think what's happened here. I hope the silver lining is that fraud and dishonest narrative has been washed out, which is necessary for the ecosystem to advance as a whole. And hopefully we get back to the fundamental questions of what we're all doing here and why Bitcoin is important. Well, at least let's get to the fundamental question. I always keep a bitcoin chart handy as one does. And, you know, go back to November 8th, November 9th. That's where the sort of sandbank mint freed contagion. Look at the far right hand side of your screen. That's where it happened between June and October of this year. We've traded sideways on bitcoin. What is the fundamental driver if this crypto currency long term, what gives you the faith? Well, it gives Kathy with the faith that it will reach prior highs. Of course. So first of all, Bitcoin fundament fundamentals are intact. What's historically been important for Bitcoin is adoption, of course, in the expansion of bitcoins utility set, and that is all progressing. At an incredibly rapid clip we saw, Kathy would note that bitcoins hash rate is up, meaning bitcoin is increasingly secure. And in addition to that, we're seeing that bitcoin holders become more sophisticated. So as an example, after the FTSE collapse, there was a spike, a peak in the sale of hardware devices that can allow bitcoin holders to hold and secure their own bitcoin. Something notable about this bear market also from the bitcoin market's perspective, is that we see less volatility than we did in the last bear market, which is an indication of an increasing level of sophistication that market participants. And of course, also reflects higher trading volumes in contrast to the prior market. What I'm interested in is thinking more about the ecosystem. You say it's getting built still at a very quick clip. What helpful hint is right now is interesting that in the state of New York, Kathy Hochul, the governor today sort of talking about a moratorium on crypto mining. And that seems to be explicitly more about a proof of work rather than proof a state can just basically energy efficiency here. But how much does that hinder perhaps the overall focus on cash rates on Bitcoin as a process and indeed building around it? Well, that's a very interesting point because actually that was one of SPF and FTSE X's hat. Lobbying means, which is that proof of work is something that is inherently a malevolent activity. But of course we know it's necessary to be able to secure a decentralized ledger like the Bitcoin ledger. And in addition to that, we know that proof of work has quickly shifted to relying on sustainable energy sources. And in fact, I think it offers the opportunity for other industries to take an example of what can be done in adopting sustainable energy sources, which of course, also have the capitalistic benefit of being very cheap and miners compete for cheap energy. And so a note here on one of the other benefits of fraud and dishonesty being washed out of the system to some degree is that FTSE ex leveraged their third novel and native token FTT to boost their assets and likely as collateral to access loans. And with that money they did, they created sort of a really quick scaling in both their size and in their power and perceived authority, including in front of regulators. And so what they did with that was tried to impugn often the virtues of the ecosystem, which is bitcoin and proof of work. And so I hope that by seeing or finding that some of the leaders that regulators might have felt trust for seeing them, their operations be made transparent and and having dishonesty or misdirection revealed, will allow regulators some time and space to ask the hard questions that lead them to better sort of discovery, understanding and truth.

No schedule data available.

FTX, Bitcoin, and Trust in Crypto

Stillmark VC Founder and Managing Partner Alyse Killeen joins Caroline Hyde and Ed Ludlow to discuss the FTX fallout and impact on crypto, and Cathie Wood's bullish view on Bitcoin. (Source: Bloomberg)

More From Bloomberg Technology
All episodes and clips