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Really appreciate the reminder about setting goals and sticking to them. Selling in chunks makes so much sense, especially with the emotional rollercoaster of crypto. On a side note, I’ve been using My Digital Money for my crypto IRA-it’s been a good way to stay tax-efficient while trading. Anyone else here into crypto IRAs for the long haul?

You got married? Congrats. Anyway, has your significant other already taken the red pill? 😂

20 minutes is great.

Appreciate the detailed breakdown! A bit off-topic, but I wanted to ask: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). What's the best way to send them to Binance?

I really appreciate your efforts! Could you help me with something unrelated: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How can I transfer them to Binance?

I loveeee the length of the video, concise and straight to the point

Great content, in general I think 20 - 30 mins is fine, depending on the subject I guess 👍

The advice is find a point you are just happy with your profit and sell, no matter where things may go.

I want the best content and prefer a bit longer. Thank you!

Please do tax episode!

I find 20 to 25 minutes is ideal for me

what should be the tactics this cycle, if my short term goal is to build a better portfolio in majors? I mean, I now have just around 7K in crypto between btc, eth and sol, and I don’t need fiat this bull cycle? Should I take profit and buy when everything goes back down or just DCA in and stay calm? ☺️

Less than 30mns is the best

I like 20 minute videos or longer. Shorter is ok but I watch or listen at work so if im busy I don’t want to be looking for the next video so frequently.

DCA out. Best plan.

Thoughts on Near protocol’s chain abstraction? Lots of potential

I feel one of the greatest challenges that we first timers face in the market is that we end up losing all we have, we find it difficult to find ourselves back to our feet. My biggest advice is to always seek the services of a professional just like I did when I ventured into it for the first time. Big thank to Helena Denilson. I now make huge profits by weekly through his services while still learning to stand on my own

Eth has purpose

In chemistry one the most cancerous substances have Ether. In Hope Solana skyrockets and finally dethrones Eth, a cancerous tumor full of L2 scams and fake narratives thrusty for liquidity.

ETH is finally starting to disappear which was about time.

HERE IS THE HEART OF THE EXPLANATION: HERE IS THE EXPLANATION: Thesis: The "moneyness" of the L1 token increases as the ecosystem grows, creating greater demand for the token as collateral, gas, and trading pair, even if the fees themselves are decreasing. A RISING TIDE FLOATS ALL L1 AND L2 BOATS... AS AI EXPLAINS IT: The thesis presented in the episode revolves around a key paradigm shift in how to value Layer 1 (L1) blockchains like Ethereum and Solana. The idea is that fee revenues (a traditional metric of valuing a business) are being overemphasized, while the actual value of L1 blockchains should be based on their role as an ecosystem's currency ("moneyness") and the infrastructure that supports decentralized finance (DeFi) and Layer 2 (L2) solutions. Let’s break down the basis of this thesis: ### 1. **Reduction in Fees Does Not Mean Reduced Value**: - As L1 blockchains scale, the cost of transactions (fees) on the base chain (L1) is designed to decrease over time to enable more adoption and usability. The reduction in fees allows more applications and users to operate on the network, including those in Layer 2 solutions. - Lower fees on the L1 are necessary for scalability; without this, the ecosystem would be too expensive and difficult for mass adoption. **Thesis**: Lower fees are not a sign of weakness or diminished value but are a natural and necessary consequence of scaling an L1 blockchain ecosystem for long-term growth. ### 2. **L2 Adoption as a Value Driver**: - The L1’s main role is not just to process transactions directly, but to provide a secure, decentralized, and trustless base layer for higher-level protocols and applications. L2s (Layer 2 solutions) scale the system by handling high-throughput transactions, but they rely on L1 for settlement and security. - As more L2s are adopted, they effectively leverage the security and decentralization of the L1, even if most of the transaction activity occurs on L2. L1 remains critical for finalizing and securing transactions, making it indispensable. **Thesis**: Even as more transactions are handled on L2s, the L1 becomes more valuable because it is foundational to the infrastructure. L2s still require the L1 for settlement, making L1 indispensable in the broader system. ### 3. **Moneyness of the L1 Token**: - The native tokens of L1 blockchains (e.g., ETH for Ethereum, SOL for Solana) have unique properties as the most decentralized and trustless assets on their respective networks. They serve as: - **Collateral** in DeFi protocols. - **Gas Fees** to pay for transactions (even indirectly on L2). - **Trading Pairs** on decentralized exchanges (DEXs). - As adoption of DeFi and other blockchain applications increases, demand for the L1 token increases because it is the "money" of that ecosystem. Unlike other tokens, which rely on smart contracts or teams, the native L1 token is inherently trustless and central to network functionality. **Thesis**: The "moneyness" of the L1 token increases as the ecosystem grows, creating greater demand for the token as collateral, gas, and trading pair, even if the fees themselves are decreasing. ### 4. **Inflation Control and Deflationary Pressure**: - Ethereum, with mechanisms like EIP-1559, introduced fee burning, which reduces the supply of ETH over time (deflationary pressure). This becomes more pronounced as network usage increases. - Even if fee revenues are small on a per-transaction basis, the aggregate effect of widespread L2 and DeFi usage can contribute to token burn rates, making the token scarcer and more valuable over time. **Thesis**: As network usage increases (through L2s and DeFi), fee burn mechanisms make the L1 token more scarce, adding deflationary pressure and driving price increases over time. ### 5. **Ecosystem Growth and Network Effects**: - The long-term value of the L1 blockchain is driven by **network effects**. As more users, applications, and developers use the L1, its ecosystem becomes more valuable. More applications lead to more users, which leads to more demand for the L1 token. - The thesis argues that the **total number of users, transactions, and applications** is the ultimate value driver, rather than just focusing on L1 fee revenue. The goal is to get **billions of users and trillions of transactions** on-chain, which creates a massive demand for L1 infrastructure and tokens. **Thesis**: The value of the L1 token is driven by the overall growth and adoption of the network (network effects), not the fee revenues. As more users and apps join the ecosystem, the demand for the native token increases for use as collateral, gas, and currency. --- ### So, how does the L1 token price increase if fees decrease? 1. **L2 Growth Increases L1 Demand**: - Even as L2s handle more transactions, they still rely on L1 for settlement and security, which means L2s ultimately strengthen L1's role in the ecosystem. L1 is the foundational layer, and its native token (ETH, SOL) becomes the key asset for securing the entire network. - More L2 activity indirectly leads to more usage of L1 for settlement, finality, and gas (even if in smaller amounts). 2. **Increased DeFi and Infrastructure Adoption**: - More DeFi applications and infrastructure projects use L1 tokens as collateral and trading pairs. As DeFi scales, the L1 token becomes the "money" of the entire ecosystem. - The trustless and decentralized nature of L1 tokens makes them the safest asset to use in DeFi protocols, ensuring sustained demand. 3. **Deflationary Pressure**: - As more activity occurs on the network, even small amounts of fee revenue accumulate and contribute to token burns (e.g., Ethereum’s fee-burning mechanism). This creates long-term deflationary pressure, reducing the circulating supply of the token and increasing its scarcity. 4. **Network Effects and Ecosystem Growth**: - The growth of the L1 ecosystem (more developers, apps, and users) increases demand for L1 tokens, regardless of the fee levels. This is because the token is needed for gas, collateral, and transactions across all layers of the network, including L2. --- ### Conclusion: The thesis is that **reducing L1 fees enables scalability and wider adoption**, but this does not mean the L1 loses value. Instead, the **value of the L1 token increases** due to: - Its role as a foundational asset for L2s, DeFi, and the entire ecosystem. - Its function as **"money"** within its ecosystem. - **Deflationary mechanisms** that increase scarcity. - The **network effects** as more applications, users, and infrastructure adopt the blockchain. In essence, even as fees trend towards zero, the L1 token gains value as it becomes the core asset driving a growing ecosystem.

AI SUMMARY: of the podcast episode from the Milk Road show featuring Kyle Reidhead and Jay Hamilton, focused on valuing Layer 1 (L1) blockchains such as Ethereum and Solana: ### Key Topics: - **Valuation of L1 Blockchains**: - There's a current focus on fee revenues in assessing the value of L1 blockchains. - Many investors and analysts overemphasize the importance of fee revenue, similar to how one would value traditional businesses by profit and loss. - The episode challenges this approach by arguing that the "moneyness" of L1 tokens (e.g., ETH for Ethereum and SOL for Solana) is a more significant factor in the long-term. ### Misunderstanding of Fee Revenues: - **Fee Revenue Misconception**: - The common perception is that higher fee revenues are indicative of a strong L1 blockchain, but this is seen as a flawed approach. - Ethereum's high fees during previous cycles were unsustainable, and the reduction of fees, through innovations like EIP-4844 and L2 scaling, reflects a healthier and more scalable ecosystem. - Similarly, Solana's rising fees are not indicative of long-term success, but rather temporary as the ecosystem scales. ### "Moneyness" of L1 Blockchains: - **Moneyness Concept**: - The L1 blockchains function less like businesses and more like ecosystems, where their tokens are used as currency within the ecosystem, analogous to a nation’s currency. - The term "moneyness" is used to describe how native tokens (ETH, SOL) serve as the most trustless and widely accepted form of collateral, trading pairs, and gas fees within the ecosystem. - Critics on crypto Twitter often dismiss the idea of ETH or SOL being "money" because they don't imagine people using them for everyday purchases (e.g., coffee), but the podcast emphasizes that these tokens are valuable as digital assets within their respective ecosystems. ### Long-Term Importance of Scalability: - **The Future of Fees**: - Both Ethereum and Solana aim to continuously lower transaction fees, making the ecosystems more accessible for developers and users. - As blockchain usage increases, fees are expected to trend towards zero, which will benefit end-users and promote adoption. - Fee revenues today are a temporary metric of value, and their trend toward zero should not be seen as a bearish signal but rather as a necessary step toward greater scalability. ### MEV (Maximal Extractable Value): - **Understanding MEV**: - MEV refers to the potential gains validators or Bots can make by front-running transactions. It has been seen as a significant revenue source for validators, but it poses a hidden cost to users. - Some argue MEV is a crucial revenue source, but the episode dismisses this, asserting that MEV will diminish over time as more mechanisms are developed to protect users from it. ### Broader Perspective on L1 Blockchain Valuation: - **Not Businesses, but Ecosystems**: - Unlike traditional businesses that need sustainable revenue, L1 blockchains are more like digital nations. Their native tokens serve as currencies within these ecosystems. - Collateralization in decentralized finance (DeFi), trading pairs, and gas fees for blockchain operations cement ETH and SOL as the primary currencies within their ecosystems. - **Decentralization and Trust**: - L1 native tokens are the most decentralized and trustless assets in their respective ecosystems, making them inherently valuable for transactions, collateral, and DeFi applications. - The podcast emphasizes that while other tokens (e.g., Uniswap, Maker) may serve similar functions, they carry higher risk due to their centralized issuance or contract vulnerabilities. ### Long-Term Adoption and Scaling: - **Scaling Through Lower Fees**: - The central goal for Ethereum and Solana is to scale their ecosystems by making transactions cheaper and more efficient, allowing billions of users and applications to function on-chain. - As blockchain adoption grows, revenues may become more significant, but the immediate priority is expanding the network's scalability and reducing fees. - **Solana's and Ethereum's Path Forward**: - Solana will continue to focus on scaling solutions, such as launching L2 chains to support its growing user base. - Ethereum is following a similar trajectory by focusing on L2 scaling (e.g., Optimism, Arbitrum) to reduce congestion and lower costs on the main chain. ### Conclusion: - **Valuation Framework Shift**: - Investors should shift their focus from short-term revenue metrics to understanding the broader use of native tokens as money within digital ecosystems. - The true value of L1 blockchains lies in their ability to become the base collateral and currency for future decentralized applications and digital transactions.

What you are saying doesn’t make sense to me. You say that in order for the chain to have more value the amount of transactions need to keep going way, way higher. I agree that this can happen to Solana but how can it happen with Eth? I mean even if the transaction fees for Eth come way, way down to, let’s say, 50 cents, this is still thousands of times more that Solana. So how can Eth EVER compete with Solana. Your argument makes no sense to me.

Show me the $$$$$$$$$$$$$$$

Great episode, all valid points. But the key question is if the gas fees are down, will the adoption increase be enough this cycle to offset gas fees so that price reach a new ATH? More I learn, more bearish ETH seems to be..

Great guest! Bring him again, please

"People default to wanting simplicity vs complexity." - Mike Dudas So true! Ease of use is so much better than flashy features that are complicated to learn. Reminds me of when Steve Jobs was given this big presentation for iDVD, and all the different things the program could do, and he interrupted and said, "No! There's a box. You drag a file into it. You click Burn. That's it!"

Sold ETH, bought BTC. No 2nd best.

great episode, loved Kyla, cheering for new ppl(:

If you can't mine it, it's not publicly owned or verified. Nobody actually owns ethereum. It's a private network, not a public crypto. If you can't mine it, it's NOT CRYPTO. Pretty simple.

Ethereum never dropped like Solana, Ethereum was more developer than Solana. Stop this narrative like fake news.

Kelp is the worse restake platform. Still no TGE.

ETH is not dead yet but will soon be and ICP will take over. Give it 5 more years.

fakest guy in the industry: Fart Davis you can see it in his eyes so badly, i cant stand it. lets see what he has to bubble into the ether

Sol network is known for crashing.

I’ve avoided ETH for years because of the insane gas fees.

When will ETH hit ATH like it did in 2021 before it dropped? Or, has that ship sailed?

Why own eth or sol when there is Icp! Icp is literally the best crypto project by technology

Enter Kaspa

Setting up a perfect bullrun for 2025

super impressed with Kyla's perspective. Very measured and logical in how she views the macro economy actually shaping up over the next year.. while also quick to acknowledge the inherent uncertainty of where we are at this election year. Looking forward to reading her book

Lark is wrong. Recession inbound and bull market canceled.

Lark looks like he's on coke