I think theres been a big sell off today. I think we always have to remember that crypto is still a retail dominated uh ecosystem right weve got institutions that are moving in by the day and thats, creating a lot of excitement, but theres lots of retail money. A lot of its leveraged uh. There was about four billion dollars of liquidations that happened in a short period of time this morning, right, thats, mostly leveraged offshore in places like ftx and finance, and the market got too long uh. It got long for good reasons right. I think in the last eight weeks there has been a giant realization that cryptos not just bitcoin being bought as a hedge against bad monetary and fiscal policy, but maybe more importantly, its web 3.0, its the internet of value transfer, uh. And when you see companies like visa buying an nft and saying they think digital goods is a big part of their future walmart and amazon. The two biggest retailers in the world putting up help wanted science, crypto engineers and for crypto experts, uh theres, a realization that this is a technology play and no investor wants to miss the next internet. This is the next internet, and so there was a lot of great price movement right. We went from 29 000 to 53, 000 and bitcoin. You know from whatever 1800 all the way to 4 000 in ethereum uh solana, a new level one for most institutions.

Yeah has burst on the scene, and so i think we just got too excited, and this was the a little error being you know popped out of the balloon all right mike. We do want to get your thoughts on solana, but before we move on to that, i am just curious as to what role, if any governments in will have in this, because the el salvador approach was of course much more just straight transactional and weve. Seen: sort of uh some of the concerns uh as to sort of uh gravitating to a transactional, uh model for bitcoin and other crypto assets here with other governments, uh decide to get into this. What role do you think they would play in this environment? Theres theres? Two different sides to this right: governments are going to be very, very protective of their national currencies right. Their ability to to tax and print currencies uh is is, is paramount to them existing in lots of places, and so i think, theyll be okay. With payments youre going to see the rise of stable coins right, chinas issuing one youll see them in almost every major country uh. You know basically wrapped versions of those national currencies um and i think things like bitcoin, which in the west really are being used to store value people arent using it as a transaction currency. I think whats unique in el salvador is, you know, 20 of their gdp. Comes from remittances, and so you can see lots of those remittances people sending bitcoin back across oceans, uh from the u.

s to el salvador and the locals either keeping bitcoin because theyre worried about the dollar. Remember they have a dollarized economy or converting it and spending it. Uh in the local economy – and so you know its theyre kind of unique in that respect, uh and well see you know, maybe it gets used as a transactional currency ive never thought it would be partly because i think its going to keep going higher and why Would you spend something thats going to keep going higher? Well, could you argue, though, why would you spend on something on days like today, where 10 minutes later it drops 10 percent, you know, could you make the case that, like you were hinting taylor, if youre such a good trader, you know what time to buy the Pizza im paying bitcoin in dollars. I should hire you its really difficult to understand in the short term where markets are going, yeah um in the longer term, its not so difficult. Just look at a 15 year or 12 year, long chart of the bitcoin price and think about the adoption that is happening all over the world um. You know it is now an asset, its a store of value. I i like to kid: when stan druckenmiller said it was an asset hes literally the best investor weve, seen in 30 years, its an asset, and so there are enough stand rock millers. There are enough institutions that have said they believe in this as a store of value that it is a story mike right.

I just see it heading one direction. The rollout today for el salvador is choppy theres, a price drop. There is technology glitches at the beginning, a big go which youve agreed to buy is a company that is working with el salvador. What do you make of todays rollout and what impact might it have on future countries that may choose to go this route? Venezuela, for example, comes to mind when a lot of people talk about this. Listen, no matter whatever youre doing a new technology roll out their glitches, and so i guess the real question is come back in six weeks, uh or 12 weeks and lets talk about how its working you know for the people of el salvador for the system itself. Um, you know i i remember when obama rolled out obamacare, it was kind of a disaster for a little while and they they sorted. The glitches out. You know doing things at scale is not easy and so ive got a lot of faith that theyll get this right. You know the other thing is that were in a place where you see these young traders moving to the market across the world and you see them buying nfts, you see them. Buying meme stops for the last few few months, whats. The next big thing that you think that the retail trader could catch on to ah great question. Listen, i think what the lesson that we should learn from this year is that there are so many eyeballs out there right and the faster.

You can see something that catches, those eyeballs and builds community, the faster the price moves, and so it literally is watching for what the next idea is um, and then those communities become much stronger than i ever thought right. I used to think okay bitcoin will work and and the the cryptos that get a lot of use like ethereum things, building on it or even solana. Lots of people are now building on, it would work, but some of these other things wouldnt they wouldnt – have a purpose and ive just been wrong right. You look at cardano or xrp. They have these fan clubs. These very uh committed uh investors who are bringing people in their community and really its a sense of identity, and so i think what were learning is the internet. Uh and retail interest has created almost a new way to think of investing its. Can they build a community? Can they make it sustainable with you know, bringing more people in when moneys, cheap and theres so much money floating around were seeing. You know things that i never thought would happen. I mean gamestop amc, perfect examples of stocks that now dont that trade completely divorced from the fundamentals of the company, um and youre, seeing that same thing in crypto. So when we talk about sort of the way some investors gravitate to things mike, i mean you mentioned solana a couple times here. We talk about uh, the the token uh sort of tied to that, and just how fast it sort of all sort of vaulted itself into sort of public consciousness.

Here, im curious as to what you think is driving that and about the sustainability of some of these moves here, because that always seems to be the question. People have particularly people new to this. They sort of look at the volatility and they wonder where. Where is this sustainable? Well, look. You look at you, know: sam bankman free who runs ftx, hes, 30 years old and just raised 900 million dollars for his company, an 18 billion dollar valuation from some of the best investors in the world right, hes, a legend in this space and hes. The backer of solana, uh and so thats his ecosystem, so people are betting on sam uh as more people come in, they get excited right. Institutions are coming in um and it hit a it hit. A critical point of acceleration, where now its a thing whats a blockchain, a blockchain, is a database that we all share. Solana is exciting because its easier to build on because its really fast right, its faster than ethereum its faster because its not nearly as decentralized its, not nearly as secure and safe in some ways right theyre only you know uh a couple dozen validators of the solana Blockchain, where theres thousands on the ethereum watching um right now, consumers dont seem to care right. Its decentralized enough and regulators dont seem to care. There is a fair question will in time regulators say we are not going to let this business infrastructure for our country of the world be built on blockchains that arent decentralized, like thats up for grabs.

You know thats thats, thats, really in the weeds uh right now. Thats, not what the markets focused on the markets, both focused on fast and better, and can they get people to build on it and is there excitement around it? And so you know, luna luna is another blockchain and i have big investments in full disclosure, uh juan from korea, hes like the sam bankman, free hes, pulling all kinds of products and projects into his ecosystem mike. Unfortunately, i have to be sort of the boring one that brings us back to macro. I am wondering your call on rates. Are you still short you betting rates to climb from here? I am short rates. Listen, you know, theyve had a decent little move recently. Uh. You know rates higher prices lower. I just think its its impossible to own as much crypto as i do, or other assets equities and not want to have a big rate short um. There is a possibility that inflation is much stickier than we think and accelerates and that the fed will have to to move sooner than they think and more aggressive when they move um they might not if they dont. I think assets keep going up for a long period of time right as long as pal keeps easy money. You can stay along your assets, but it feels like its a its a really important hedge for any portfolio.

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