Latest / The Paul Barron Crypto Show / Cathie Wood vs Tom Lee 🔥Ethereum Mega-Supercycle🚀

Transcript

Cathie Wood vs Tom Lee 🔥Ethereum Mega-Supercycle🚀 · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Let's get into it today.
• 0:01
  Speaker 2: This is Tom Lee versus Kathy Wood on Bitcoin versus Eth.
• 0:04
  Speaker 2: We'll break it down for you. Let's just jump right
• 0:06
  Speaker 2: into the show. And of course I want to thank
• 0:08
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• 0:34
  Speaker 2: over to a couple of tweets and I've got a
• 0:36
  Speaker 2: lot of clips for you guys today. I just want
• 0:38
  Speaker 2: to go right to this tweet right here, and this,
• 0:41
  Speaker 2: of course is Kathy Wood leading the twenty twenty five
• 0:44
  Speaker 2: Q one and Q two Investor performance ranking, holding the
• 0:47
  Speaker 2: number one spot both in Q one and Q two.
• 0:50
  Speaker 2: But if you compare this over here to the super
• 0:53
  Speaker 2: Investor performance for twenty five, you've got Tom Lee holding
• 0:57
  Speaker 2: number four and Kathy holding number five. So it's a
• 1:01
  Speaker 2: I think it's a good, you know, comparison between the two.
• 1:04
  Speaker 2: They have different strategies in different ways of doing things,
• 1:07
  Speaker 2: and they also have different camps in where they invest in.
• 1:11
  Speaker 2: I want to go to this first clip because this
• 1:12
  Speaker 2: will get into setting this up around bitcoin and ethereum.
• 1:16
  Speaker 1: Take a look.
• 1:18
  Speaker 3: You think that the Ethereum market cap is going to
• 1:23
  Speaker 3: flip with bitcoin flipping, as they might say, we have
• 1:28
  Speaker 3: in twenty thirty a forecast and we expect to hit
• 1:32
  Speaker 3: twenty five trillion dollars in twenty thirty, the vast majority
• 1:37
  Speaker 3: of that in bitcoin. I'd love to hear your thoughts
• 1:42
  Speaker 3: on why eath will surpass bitcoin.
• 1:45
  Speaker 4: Okay, gold is five percent of all available assets dollar
• 1:50
  Speaker 4: dominance is going to be the opportunity of Ethereum in
• 1:54
  Speaker 4: that world. We believe Ethereum could flip Bitcoin similar to
• 1:58
  Speaker 4: how Wall Street and Equity flipped goals.
• 2:01
  Speaker 2: Tom there of course defending obviously bitmin, which is BM
• 2:05
  Speaker 2: and R.
• 2:05
  Speaker 1: That's the ticker for what he's behind.
• 2:07
  Speaker 2: And this is one of the biggest digital asset treasury
• 2:09
  Speaker 2: companies out there, well, the number one in terms of
• 2:12
  Speaker 2: eth so he's got a little bit of a stock
• 2:15
  Speaker 2: in this play, for sure. But if you look at
• 2:18
  Speaker 2: this based on the price of eth with a market
• 2:22
  Speaker 2: cap of bitcoin, this is where it would be around
• 2:24
  Speaker 2: eighteen k and and this is not too far away.
• 2:26
  Speaker 2: It's the four x five esque almost. Tom has talked
• 2:29
  Speaker 2: about this before anywhere between fifteen to a twenty k eth.
• 2:33
  Speaker 2: He is that far into understanding where he thinks the
• 2:36
  Speaker 2: future could go. Now, this would mean that Bitcoin would
• 2:38
  Speaker 2: have to somewhat stay still, but there would be a
• 2:41
  Speaker 2: certain amount of rotation of assets. And his reference there
• 2:44
  Speaker 2: between gold and what we're dealing with the S and
• 2:46
  Speaker 2: P is an interesting one for sure. Let me go
• 2:49
  Speaker 2: to this second clip here. This is Tom Lee explaining
• 2:52
  Speaker 2: why he thinks that bitmin is going to be the
• 2:55
  Speaker 2: one to bet on, and Kathy kind of comes back
• 2:58
  Speaker 2: with a very intriguing statement here. It's almost like she
• 3:00
  Speaker 2: doesn't really know what he's talking about and that they
• 3:03
  Speaker 2: weren't really prepared for it.
• 3:05
  Speaker 1: Take a look what they had.
• 3:06
  Speaker 4: To say, since you know, bitmine is I think the
• 3:08
  Speaker 4: four hundred and seventieth largest company in America, you know,
• 3:11
  Speaker 4: because we'll announce Steak our staking solution very soon. But
• 3:14
  Speaker 4: assuming at two point seventy nine percent yield on a
• 3:17
  Speaker 4: pretext and income basis, It's like the eight hundred most
• 3:20
  Speaker 4: profitable company in America Bitmin and micro Strategy will soon
• 3:24
  Speaker 4: be Russell one thousand constituents. So that opens up to
• 3:27
  Speaker 4: passive index flows. Seventeen hundred large cat managers now have
• 3:32
  Speaker 4: to make a decision on whether to overweight underweight the
• 3:36
  Speaker 4: four hundred and eightieth largest company in America Bitmine. I
• 3:39
  Speaker 4: think could actually have accelerating flows next year.
• 3:44
  Speaker 3: The idea that that indexation is going to be a
• 3:49
  Speaker 3: phenomenon here is mind blowing to me.
• 3:51
  Speaker 4: The passive index flow is why micro Strategy has held
• 3:55
  Speaker 4: onto It's a portion of its nav premium.
• 3:58
  Speaker 3: We don't pay attention to index so I've never thought
• 4:02
  Speaker 3: about this.
• 4:03
  Speaker 2: All right, So when you look at this right here,
• 4:05
  Speaker 2: there's our investment. This was their original investment in micro Strategy.
• 4:09
  Speaker 2: That was their approximate percentage of total shares that outstanding
• 4:11
  Speaker 2: at the time. But she was holding MicroStrategy without understanding
• 4:15
  Speaker 2: the endexation of what Tom was just explaining. So a
• 4:18
  Speaker 2: very very interesting position, I think for Kathy Wood, especially
• 4:22
  Speaker 2: as one of the best investors out there. Now, I
• 4:24
  Speaker 2: want to go to this next clip, because this is
• 4:26
  Speaker 2: where Tom goes into the whole idea around proof of
• 4:29
  Speaker 2: work versus proof of steak.
• 4:31
  Speaker 1: You want to watch this, take a look.
• 4:33
  Speaker 3: There will come a time where we're in some kind
• 4:37
  Speaker 3: of crisis the benefits of proof of work relative to
• 4:42
  Speaker 3: proof of state. A crisis will be a moment of
• 4:46
  Speaker 3: self reflection and like, all right, is there a real
• 4:50
  Speaker 3: difference between this proof of work world and this proof
• 4:53
  Speaker 3: of steak world.
• 4:53
  Speaker 4: It's I think going to happen with proof of work
• 4:56
  Speaker 4: because we know Bitcoin mining, for instance, is becoming constant
• 5:00
  Speaker 4: treated in corporate I think this year there was one
• 5:02
  Speaker 4: mining operation that had won six successive block rewards, which
• 5:07
  Speaker 4: is a high level of concentration. The block reward is
• 5:11
  Speaker 4: going to be so small that it may not provide
• 5:15
  Speaker 4: the economic incentives to actually continue mining, which would represent
• 5:19
  Speaker 4: greater concentration.
• 5:21
  Speaker 2: All right, So I guess that was a little bit
• 5:22
  Speaker 2: of a slam dunk there on on Kathy in reference
• 5:25
  Speaker 2: around mining and proof of work versus proof of STEGA.
• 5:28
  Speaker 2: And then of course you know it's out there, listen,
• 5:29
  Speaker 2: this is what's happening out there in xLand often and
• 5:33
  Speaker 2: maybe she just didn't understand it. And this is a
• 5:36
  Speaker 2: good example of that.
• 5:37
  Speaker 1: This tweet right.
• 5:38
  Speaker 2: Here, Bitcoin is much faster than your favorite all coin
• 5:41
  Speaker 2: and of course you can kind of see that's the
• 5:42
  Speaker 2: lightning network right there. But unfortunately, this of course was
• 5:47
  Speaker 2: community noted and it says bitcoins base layer is only
• 5:50
  Speaker 2: capable of roughly seven transactions per second on TPS. Just
• 5:54
  Speaker 2: as a reminder, guys, this is the kind of thing
• 5:56
  Speaker 2: that I think gets lost a lot in terms of
• 5:59
  Speaker 2: how this actually performs as a blockchain as a speculative asset.
• 6:05
  Speaker 2: Great one, but a very interesting point that Tom was making.
• 6:08
  Speaker 2: And remember Steak and Shake, they just deployed bitcoin. I
• 6:12
  Speaker 2: still think that was a great marketing employ for them.
• 6:14
  Speaker 2: But here is what they had to say about this.
• 6:17
  Speaker 2: This is a Steak and Shake. Take a look.
• 6:18
  Speaker 5: Steak and Shake has brought bitcoin into the presence. About
• 6:22
  Speaker 5: one out of every five hundred Bitcoin transactions globally happened
• 6:27
  Speaker 5: at Steak and Shake. If you're an engineer, we'd love
• 6:36
  Speaker 5: to chat with you. It's only like three engineers four okay,
• 6:40
  Speaker 5: there's a there's more than three. Okay, that's good.
• 6:47
  Speaker 1: I don't know.
• 6:48
  Speaker 2: Sometimes you can't make this stuff up, so I won't
• 6:51
  Speaker 2: just play it here, of course is another point you
• 6:55
  Speaker 2: have to look at. New data confirms Ethereum is the
• 6:57
  Speaker 2: number one ecosystem for new develop plopers. This is in
• 7:00
  Speaker 2: twenty twenty five. You can kind of see a sixteen
• 7:02
  Speaker 2: thousand holding their own Salona coming in Bitcoin holding in
• 7:06
  Speaker 2: at seventy five hundred, Polygon growing, even Swie and even
• 7:11
  Speaker 2: stacks up there as well, So pretty consistent. But the
• 7:14
  Speaker 2: point being eth is the top dog in terms of
• 7:16
  Speaker 2: ecosystems and developers, and this is only going to accelerate
• 7:20
  Speaker 2: from here, so it is really just waiting in the
• 7:23
  Speaker 2: wings to become this next disruption level. This next clip
• 7:28
  Speaker 2: gets into where Kathy is saying, well, what if it
• 7:31
  Speaker 2: does get disrupted by banks?
• 7:34
  Speaker 3: Take a look what could disturb that knock bitmine off
• 7:38
  Speaker 3: the perch, Solana.
• 7:40
  Speaker 6: Making a go. It does happen from time to time.
• 7:45
  Speaker 4: You know, if you were to look at where the
• 7:47
  Speaker 4: development is today, especially L two's announced, even including like
• 7:51
  Speaker 4: Swift building on linear, Ethereum has already won the discount
• 7:55
  Speaker 4: to the future.
• 7:56
  Speaker 3: And what do you think of ARC the layer one
• 7:59
  Speaker 3: that circle put in place for financials.
• 8:02
  Speaker 4: If some bank created a layer one blockchain and they're
• 8:06
  Speaker 4: the oracle. We know that they're tilting that in their favor,
• 8:10
  Speaker 4: and the security model becomes a question, and we know
• 8:12
  Speaker 4: there's so many high profile hacks that have taken place
• 8:15
  Speaker 4: because as you know, that is one of the prominent
• 8:18
  Speaker 4: features of etherorum, that it's an entire history. Resilience was
• 8:22
  Speaker 4: an existing feature and has never had any downtime. Think
• 8:25
  Speaker 4: about tokenized world and using prediction markets. A lot of
• 8:29
  Speaker 4: that thinking is taking place around building on layer ones
• 8:32
  Speaker 4: and layer twos on etherium.
• 8:33
  Speaker 2: So that is a big factor. Now she goes on
• 8:36
  Speaker 2: in the interview to kind of challenge the idea of
• 8:39
  Speaker 2: L twos that could just be stealing a little bit
• 8:41
  Speaker 2: of the activity and the fame of ethereum. Look what
• 8:45
  Speaker 2: you had to say here.
• 8:46
  Speaker 3: You know it's the layer twos that are collecting all
• 8:49
  Speaker 3: the fees. The network activity is falling giving way to
• 8:53
  Speaker 3: the layer twos.
• 8:54
  Speaker 6: But what about that issue.
• 8:56
  Speaker 4: Quote world where the L two's pays zero gas feed
• 9:00
  Speaker 4: okay to the L one, which is not true. The
• 9:02
  Speaker 4: fact that ethereum is the monetary base would actually crew
• 9:07
  Speaker 4: value to it. Imagine someone said in video trades in America,
• 9:10
  Speaker 4: it doesn't help the dollar, infect it helps the euro
• 9:13
  Speaker 4: we'd be like what And of course in the future,
• 9:18
  Speaker 4: any bank that is going to be building on the
• 9:21
  Speaker 4: future of ethereum is going to be staking ethereum as well.
• 9:24
  Speaker 2: Yeah, so then you're getting into, i think, a whole
• 9:28
  Speaker 2: new model, and that I think is the value that
• 9:30
  Speaker 2: what Thoma is trying to represent around eth Now, I
• 9:33
  Speaker 2: want to revisit what he was talking about earlier in
• 9:35
  Speaker 2: that clip around tokenization and market efficiencies via these prediction markets,
• 9:40
  Speaker 2: because this gets into a new angle in how the
• 9:43
  Speaker 2: markets might work.
• 9:45
  Speaker 1: This is a very good clip. Take a look.
• 9:47
  Speaker 4: The real value on the unlock of a tokenized in
• 9:49
  Speaker 4: video is that we can do a factor bet. We
• 9:52
  Speaker 4: can then see what's priced in for their Blackwell chip
• 9:56
  Speaker 4: sales or their China sales, because now you take in
• 9:59
  Speaker 4: these and you've broken it into tokenized components, and then
• 10:03
  Speaker 4: you can use a prediction market to hedge yourself. So
• 10:07
  Speaker 4: Nvidia now knows what's priced in for its black Web
• 10:10
  Speaker 4: chip sales and they can therefore work with a lot less. Hey,
• 10:15
  Speaker 4: what's priced in our stock? They know exactly what's priced in.
• 10:18
  Speaker 4: Polymarket got fifty out of fifty states, right, so they
• 10:21
  Speaker 4: prove themselves that's probably a better way to model earnings
• 10:26
  Speaker 4: than to wait every ninety days for a company and
• 10:29
  Speaker 4: have the CFO tied up for a month auditing financials.
• 10:32
  Speaker 6: You know, this is music to our ears. Will actually
• 10:35
  Speaker 6: allow the equity market to be more future looking than
• 10:38
  Speaker 6: it currently is. Yes, no question about it.
• 10:42
  Speaker 2: It's interesting she says, no question about it. She's all
• 10:45
  Speaker 2: in on this, But does she realize Polymarket is engaged
• 10:49
  Speaker 2: in this through Polygon. Polygon is an L two for ethereum,
• 10:54
  Speaker 2: and this is the whole point. It changes the whole
• 10:56
  Speaker 2: dynamic around how markets are going to work. That's why
• 10:59
  Speaker 2: I think Polygon and poly market in comparison. Even if
• 11:03
  Speaker 2: you look at Calshi and what they're trying to do
• 11:05
  Speaker 2: over there, these are the future of where these markets
• 11:07
  Speaker 2: are going. So it's interesting that Kathy is not picking
• 11:10
  Speaker 2: this up.
• 11:11
  Speaker 1: Now.
• 11:12
  Speaker 2: This is another clip that I want to play, and
• 11:14
  Speaker 2: this is Sandy who's CEO, I guess, founder originator of Polygon.
• 11:18
  Speaker 2: He was on NASDAC and he talks about these upgrades
• 11:21
  Speaker 2: and why they are so important, especially poly market.
• 11:24
  Speaker 1: Take a look.
• 11:25
  Speaker 7: We are super proud that polymarket has come here. It's
• 11:29
  Speaker 7: a big thing for the entire crypta space. Specifically, Polymarket
• 11:32
  Speaker 7: is fully built on Polygon. It's built on Polygon blockchain.
• 11:34
  Speaker 7: We have now now gone to the capacity to have
• 11:38
  Speaker 7: five thousand TPS, which helps applications like polymarket to scale
• 11:42
  Speaker 7: their user base to hundreds of thousands or millions of users. Right,
• 11:45
  Speaker 7: so now the gas piece becomes even cheaper. So this
• 11:49
  Speaker 7: upgrade is extremely pivotal for us, for us to go
• 11:52
  Speaker 7: to one hundred thousand TPS, which allows us to go
• 11:54
  Speaker 7: to visa our MasterCard level throughout so that like multiple
• 11:58
  Speaker 7: parties across the globe can use this platform for payments
• 12:02
  Speaker 7: and stable coin and tokenization, whether you are on x
• 12:06
  Speaker 7: or you are on Telegram, if they're using a Stripe
• 12:08
  Speaker 7: in the background. The subscription, the monthly subscription that you do,
• 12:12
  Speaker 7: that now you can do with stable coins on Stripe,
• 12:15
  Speaker 7: and all of that gets processed on Polygon, all right.
• 12:18
  Speaker 2: And just remember Stripe did do a big announcement this
• 12:21
  Speaker 2: week in reference to subscriptions being able to pay with
• 12:25
  Speaker 2: crypto and stable coins, and that's kind of where san
• 12:28
  Speaker 2: Deep is going. But really, when you look at this,
• 12:31
  Speaker 2: the opportunity is pretty large, and what Tom Lee is
• 12:34
  Speaker 2: trying to represent is what he's doing. Obviously, with the
• 12:37
  Speaker 2: Treasure Company, but also in general with Ethereum is really
• 12:41
  Speaker 2: taking a look at the total TAM and this is
• 12:44
  Speaker 2: an important factor when you really kind of consider where
• 12:47
  Speaker 2: the future is going. Take a look what he had
• 12:49
  Speaker 2: to say about total market size.
• 12:52
  Speaker 4: I don't think one blockchain can hold the entire financial system. Anyways.
• 12:57
  Speaker 4: Let's say your twenty seven joint is correct, and I
• 12:59
  Speaker 4: believe it is even conservative. Today global GDP's eighty trillion plus.
• 13:03
  Speaker 4: We know that as you tookenize loyalty and IP things
• 13:06
  Speaker 4: that are GDP measurements, but not financial markets also on
• 13:09
  Speaker 4: the blockchain. So maybe the total what ends up on
• 13:13
  Speaker 4: the blockchain is sixty plus twenty eighty trillion market versus
• 13:17
  Speaker 4: your twenty seven trillion. Twenty seven trillion seems very reasonable.
• 13:20
  Speaker 4: I mean, maybe low that cannot fit on one ledger.
• 13:23
  Speaker 2: So from that you can kind of get what Tom
• 13:25
  Speaker 2: Lee is talking about. Kathy Wood looking in a word,
• 13:28
  Speaker 2: between the twenty five twenty seven trillion in terms of
• 13:30
  Speaker 2: addressable market, But what he's looking at is a much
• 13:33
  Speaker 2: broader base. And I think even though we may see
• 13:36
  Speaker 2: multichain world and I think we will the fact that
• 13:39
  Speaker 2: this could be considerably higher possibly magnitude level is pretty
• 13:44
  Speaker 2: significant around the future of ethereum. So all of that
• 13:47
  Speaker 2: being said, there's one more thing that happens when all
• 13:50
  Speaker 2: of this starts to come together, and that is going
• 13:53
  Speaker 2: to be staking.
• 13:54
  Speaker 1: Here's a clip that talks about that.
• 13:56
  Speaker 3: And we were having trouble gaining access to ETH for
• 14:01
  Speaker 3: our ETFs. SECD does not yet allow staking, and we
• 14:06
  Speaker 3: tried to gain access through other Canadian ETFs which do
• 14:11
  Speaker 3: allow staking, but then we were becoming way too big
• 14:15
  Speaker 3: a percentage of those and we were also subjecting the
• 14:19
  Speaker 3: funds to the risks of bad income. You came along
• 14:23
  Speaker 3: at the time we were trying to figure this out
• 14:26
  Speaker 3: and provided a solution.
• 14:28
  Speaker 6: You really did solve a problem.
• 14:30
  Speaker 4: Yeah, well, thank you for also investing in bitmin.
• 14:35
  Speaker 2: I like that the investing in bitmine because this is
• 14:38
  Speaker 2: exactly the case, and we're going to see staking.
• 14:40
  Speaker 1: It's going to happen.
• 14:41
  Speaker 2: Most likely we'll start to see this across a lot
• 14:44
  Speaker 2: of different financial institution and of course ETH will be
• 14:46
  Speaker 2: a big winner of this. Here was Arkham kind of
• 14:48
  Speaker 2: breaking this news. This is a Canadian ETF that just
• 14:51
  Speaker 2: staked one hundred and thirty million Etfs's kind of what
• 14:54
  Speaker 2: she's referencing there, and they hold six hundred and twenty
• 14:58
  Speaker 2: million of eth right now. And this is in just
• 15:00
  Speaker 2: one ETF in Canada. So imagine what this is going
• 15:03
  Speaker 2: to look like here in the US. Imagine what this
• 15:06
  Speaker 2: is gonna look like as we see traditional finance start
• 15:08
  Speaker 2: to move into the staking world.
• 15:09
  Speaker 1: Guys, this will be huge.
• 15:11
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