In this episode, Dylan LeClair joins us to discuss positive feedback loops around bitcoin’s extreme volatility and a collapsing crypto industry. We kick off with Vitalik's questions about the sustainability of yield in the crypto space and whether ethereum and other cryptocurrencies are at risk of fading away. Dylan offers his insights on the VIX spike in early August and what it might mean for the broader market. We then shift to the success of bitcoin ETFs and dive into how companies like Metaplanet and MicroStrategy are using financial engineering to increase their bitcoin holdings per share. Dylan shares his thoughts on the concept of corporate "bitcoin yield" versus holding bitcoin in cold storage, and how volatility can create a highly positive feedback loop. We also touch on the power law and S2F models, rounding off with a personal note as Dylan reflects on his high school teachers congratulating him on his success.
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TIMESTAMPS:
00:01:50 Vitalik questioning where the yield comes from
00:08:03 Vix spike in early August—bottom for risk assets?
00:17:30 Metaplanet and Microstrategy financial engineering more bitcoin
00:33:42 Bitcoin “yield” or bitcoin per share?
00:36:58 Metaplanet and MSTR vs cold storage bitcoin
00:43:00 Volatility results in a positive feedback loop
00:59:35 What’s something you believe that most bitcoiners would disagree with?
01:04:29 What’s the biggest risk to bitcoin?
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