1 00:00:07,640 --> 00:00:11,200 Speaker 1: Sometimes it's good to define our terms, even for those 2 00:00:11,240 --> 00:00:13,400 Speaker 1: of us who do this every day for a living 3 00:00:14,800 --> 00:00:32,639 Speaker 1: Bitcoin maximalist, bridge ship, crypto, bridge, Bitcoin, blocorn steaky. I'm 4 00:00:32,720 --> 00:00:36,240 Speaker 1: Stacy Marie Ishmael, Managing editor of Crypto for Bloomberg News, 5 00:00:36,800 --> 00:00:40,040 Speaker 1: and this is Bloomberg Crypto, a new daily Bloomberg I 6 00:00:40,159 --> 00:00:48,519 Speaker 1: Heeart podcast. It's Monday, June six. You might already consider 7 00:00:48,560 --> 00:00:51,720 Speaker 1: crypto to be synonymous with the word volatility, But what 8 00:00:51,800 --> 00:00:55,000 Speaker 1: about all the other words that get thrown around by enthusiasts. 9 00:00:55,520 --> 00:00:59,520 Speaker 1: What's staking all about? What's a bridge? And why are 10 00:00:59,600 --> 00:01:02,040 Speaker 1: so many folks on Twitter sending messages that just say 11 00:01:02,440 --> 00:01:06,920 Speaker 1: GM Joining me today, Bloomberg reporters Hannah Milla and Vildanna 12 00:01:06,959 --> 00:01:13,720 Speaker 1: Hodrick are here to help with a crypto glossary. I 13 00:01:13,840 --> 00:01:17,600 Speaker 1: am really glad to be joined today by two truly 14 00:01:17,640 --> 00:01:20,880 Speaker 1: excellent colleagues of mine. One is Hannah Miller, who's joining 15 00:01:20,959 --> 00:01:23,480 Speaker 1: us from her home studio in San Francisco, and the 16 00:01:23,520 --> 00:01:25,840 Speaker 1: other is Voldana Hodrick, who's draining us from her home 17 00:01:25,880 --> 00:01:28,440 Speaker 1: studio in New York City. Thank you both. So we're 18 00:01:28,480 --> 00:01:31,520 Speaker 1: gonna talk words today, which I suppose as journalist is 19 00:01:31,560 --> 00:01:33,199 Speaker 1: like what we do all the time anyway, but today 20 00:01:33,240 --> 00:01:37,480 Speaker 1: we're gonna specifically talkwards when it comes to defining some 21 00:01:37,680 --> 00:01:41,480 Speaker 1: of the terms like a thrown around a lot in crypto, 22 00:01:42,400 --> 00:01:44,520 Speaker 1: because this is a word that's been in the news 23 00:01:44,560 --> 00:01:46,360 Speaker 1: a lot, or should say, two words that have been 24 00:01:46,400 --> 00:01:48,360 Speaker 1: in the news a lot. We're gonna kick things off 25 00:01:48,440 --> 00:01:52,520 Speaker 1: with algorithmic stable coins. Yeah, this has been such a 26 00:01:52,600 --> 00:01:56,120 Speaker 1: hot topic as of late, considering the crash of terror 27 00:01:56,280 --> 00:02:01,320 Speaker 1: USD coin. Algorithmic stable coins are pretty complex but also 28 00:02:01,480 --> 00:02:05,960 Speaker 1: very interesting. They have their price maintained by a relationship 29 00:02:06,000 --> 00:02:11,519 Speaker 1: with another cryptocurrency and also through just complex mathematical equations. 30 00:02:12,160 --> 00:02:15,440 Speaker 1: So in the case of Terra USD that was pegged 31 00:02:15,520 --> 00:02:19,880 Speaker 1: to the Luna token, and basically if the price of 32 00:02:20,000 --> 00:02:23,919 Speaker 1: one dropped, investors would be incentivized to buy the other one, 33 00:02:24,280 --> 00:02:26,320 Speaker 1: and the hopes that this would maintain a peg for 34 00:02:26,520 --> 00:02:30,040 Speaker 1: USD coin and keep it close to a dollar. Okay, 35 00:02:30,120 --> 00:02:34,239 Speaker 1: so da old coins tell us more. An alt coin 36 00:02:34,400 --> 00:02:38,160 Speaker 1: is basically just any coin that isn't Bitcoin. You might 37 00:02:38,240 --> 00:02:42,079 Speaker 1: hear people referring to alts or alt coins alternative coins, 38 00:02:42,120 --> 00:02:45,120 Speaker 1: and they're really just talking about any smaller token or 39 00:02:45,200 --> 00:02:49,560 Speaker 1: smaller coin that isn't bitcoin, And they also are in 40 00:02:49,639 --> 00:02:52,320 Speaker 1: the news recently just because we're having to sell off 41 00:02:52,360 --> 00:02:55,040 Speaker 1: in the crypto market and you see bitcoins sometimes holding 42 00:02:55,160 --> 00:02:58,280 Speaker 1: up just a lot better than some of these alternative coins, 43 00:02:58,360 --> 00:03:01,160 Speaker 1: and so you're hearing people talking all coins and just 44 00:03:01,280 --> 00:03:05,560 Speaker 1: how much they've been suffering through the recent downturn. Speaking 45 00:03:05,600 --> 00:03:09,640 Speaker 1: of bitcoin, what is a bitcoin maximal list? Yeah, bitcoin 46 00:03:09,760 --> 00:03:13,760 Speaker 1: maximalist or you know Bitcoin maxi for sure. Um, they're 47 00:03:13,880 --> 00:03:17,680 Speaker 1: all in on Bitcoin, which is the most widely held cryptocurrency, 48 00:03:18,080 --> 00:03:22,799 Speaker 1: and these people believe that the future is only for Bitcoin. 49 00:03:22,919 --> 00:03:25,440 Speaker 1: This will be the only digital currency that we're going 50 00:03:25,520 --> 00:03:28,840 Speaker 1: to need. They don't care about all coins. They're basically 51 00:03:28,919 --> 00:03:31,519 Speaker 1: all in. And some people also consider this term to 52 00:03:31,560 --> 00:03:34,639 Speaker 1: be a little derogatory. Do the Bitcoin maxis consider this 53 00:03:34,880 --> 00:03:36,880 Speaker 1: m to be derogatory or do other people consider it 54 00:03:36,920 --> 00:03:39,960 Speaker 1: to be derogatory? You know, I've spoken to some maxis 55 00:03:40,000 --> 00:03:42,720 Speaker 1: who are proud to wear the label, you know, and 56 00:03:43,280 --> 00:03:45,800 Speaker 1: you know, wear it as a badge of honor. But 57 00:03:46,160 --> 00:03:48,320 Speaker 1: I've also spoken to others who are like all in 58 00:03:48,360 --> 00:03:50,400 Speaker 1: a bitcoin, but they're like, don't call me that. So 59 00:03:50,480 --> 00:03:53,880 Speaker 1: I think it depends a bit on personal preference. Got it. Well, 60 00:03:54,200 --> 00:03:58,480 Speaker 1: that was fun. So now let's go complicated crypto bridge. Yeah. 61 00:03:58,720 --> 00:04:02,200 Speaker 1: So crypto bridge just have been in the news as 62 00:04:02,280 --> 00:04:05,040 Speaker 1: of late. Um we saw with the hack of the 63 00:04:05,240 --> 00:04:09,800 Speaker 1: Ronan bridge, which is essential to the Axi Infinity and 64 00:04:09,960 --> 00:04:14,680 Speaker 1: FT game. And crypto bridges basically connect different blockchains and 65 00:04:14,760 --> 00:04:18,159 Speaker 1: allow people to transfer digital assets from one block chain 66 00:04:18,240 --> 00:04:22,479 Speaker 1: to another. And there are questions about than being vulnerable 67 00:04:22,600 --> 00:04:25,360 Speaker 1: and whether they pose a security risk because these are 68 00:04:26,040 --> 00:04:30,400 Speaker 1: very complex tools within the crypto space. Got it. So 69 00:04:30,720 --> 00:04:32,880 Speaker 1: a way for somebody to think about that is like 70 00:04:33,360 --> 00:04:37,280 Speaker 1: they act almost as translators, just mechanisms for you to 71 00:04:37,440 --> 00:04:41,040 Speaker 1: move something from a to B in one way or another. 72 00:04:41,440 --> 00:04:43,479 Speaker 1: And people might think of bridges is like, well, here's 73 00:04:43,480 --> 00:04:45,840 Speaker 1: a physical structure or here's a place, but like what 74 00:04:46,000 --> 00:04:49,240 Speaker 1: how do bridges work? Exactly? Like are these just software? 75 00:04:49,320 --> 00:04:53,280 Speaker 1: Are they programs? Are they companies? Like what are these things? Yeah? 76 00:04:53,400 --> 00:04:56,640 Speaker 1: Their software? Um, you know, I think it's a good 77 00:04:57,279 --> 00:05:00,400 Speaker 1: visual seeing that bridge, but really at the end of today, 78 00:05:00,480 --> 00:05:04,600 Speaker 1: these are very complex pieces of software that could be 79 00:05:04,760 --> 00:05:09,039 Speaker 1: open to security flaws and holes that hackers can exploit. 80 00:05:09,120 --> 00:05:11,520 Speaker 1: So there is a question of how do we make 81 00:05:11,640 --> 00:05:16,200 Speaker 1: these bridges safer? Well, Another thing that has certainly been 82 00:05:16,480 --> 00:05:20,640 Speaker 1: super topical is this idea of crypto winter. A great 83 00:05:20,720 --> 00:05:24,120 Speaker 1: chill has descended on the markets. A chill has descended 84 00:05:24,160 --> 00:05:25,760 Speaker 1: on the Market's what a great way to put it. 85 00:05:25,920 --> 00:05:28,520 Speaker 1: But a crypto winter is just a prolonged stretch of 86 00:05:28,560 --> 00:05:31,800 Speaker 1: time where crypto prices are in a decline. So they 87 00:05:31,880 --> 00:05:34,480 Speaker 1: might be stagnant for a while, but you know, overall, 88 00:05:34,680 --> 00:05:38,400 Speaker 1: we're talking about a major downturn in the market. When 89 00:05:38,440 --> 00:05:42,640 Speaker 1: you think about the winter, you're thinking about freezes, stagnation, unpleasantness, 90 00:05:42,960 --> 00:05:46,640 Speaker 1: really cold temperatures, and so that's exactly what crypto winter, 91 00:05:46,839 --> 00:05:49,920 Speaker 1: the term is supposed to emote. We had one back 92 00:05:49,960 --> 00:05:53,240 Speaker 1: in two thousand and eighteen when crypto prices were declining, 93 00:05:53,640 --> 00:05:56,200 Speaker 1: and we also have some people calling what's happening with 94 00:05:56,440 --> 00:05:58,600 Speaker 1: the market this year a crypto winter, just because we've 95 00:05:58,640 --> 00:06:02,560 Speaker 1: had this huge downturn in prices. One of the more 96 00:06:03,000 --> 00:06:07,400 Speaker 1: I suppose topical parts of crypto or the contrast between 97 00:06:08,080 --> 00:06:11,600 Speaker 1: what's called defy and trod FI or decentralized finance and 98 00:06:11,640 --> 00:06:14,600 Speaker 1: traditional finance. Traditional finance is a concept that I think 99 00:06:14,600 --> 00:06:16,599 Speaker 1: people pretty much understand right It's like it's the idea 100 00:06:16,640 --> 00:06:19,919 Speaker 1: of wall streets, it's banks, it's it's brokers, it's insurance companies. 101 00:06:20,279 --> 00:06:24,880 Speaker 1: What's defined exactly? Yeah, So DEFY is short for Decentralized 102 00:06:24,920 --> 00:06:29,320 Speaker 1: Finance UM, and basically it envisions a world where financial 103 00:06:29,360 --> 00:06:33,200 Speaker 1: transactions are conducted over blockchain and where middlemen like banks 104 00:06:33,279 --> 00:06:36,160 Speaker 1: or brokers are cut out. It hinges on peer to 105 00:06:36,240 --> 00:06:40,280 Speaker 1: peer transactions. So this is really what people see as 106 00:06:40,320 --> 00:06:43,520 Speaker 1: the future of finance if they're you know, big DEFIVE supporters, 107 00:06:43,839 --> 00:06:47,880 Speaker 1: and there's obviously really exciting stuff going on there. There's 108 00:06:48,200 --> 00:06:51,719 Speaker 1: concerns of a regulation and we've also seen two people 109 00:06:51,880 --> 00:06:55,400 Speaker 1: migrate from working in trad FI to DEFY, which is 110 00:06:55,480 --> 00:06:57,640 Speaker 1: something that I'm really interested in writing about. Right, so 111 00:06:57,680 --> 00:07:01,640 Speaker 1: they're going from like a citadel to a pure play 112 00:07:01,720 --> 00:07:05,839 Speaker 1: crypto company exactly now on the idea of pure play 113 00:07:05,880 --> 00:07:09,160 Speaker 1: crypto companies, there's also a concept of AX help me 114 00:07:09,240 --> 00:07:11,640 Speaker 1: understand or help our audiences understand what a dex is. 115 00:07:11,960 --> 00:07:15,120 Speaker 1: A dex is just a decentralized exchange. So if you're 116 00:07:15,120 --> 00:07:18,240 Speaker 1: thinking about traditional financial markets, you're thinking about the stock market, 117 00:07:18,640 --> 00:07:21,200 Speaker 1: you might think of a stock exchange like the New 118 00:07:21,280 --> 00:07:24,320 Speaker 1: York Stock Exchange. Then nicey that has sort of like 119 00:07:24,400 --> 00:07:27,560 Speaker 1: a power structure in place, and a decentralized exchange is 120 00:07:27,680 --> 00:07:30,240 Speaker 1: something like a unit swap maybe you've heard of unit 121 00:07:30,280 --> 00:07:33,560 Speaker 1: swap or d y d X, where users can trade coins, 122 00:07:33,640 --> 00:07:37,960 Speaker 1: they can trade crypto derivatives, but it's anonymously and there 123 00:07:38,000 --> 00:07:42,840 Speaker 1: are no intermediaries, there are no banks involved. Earlier kind 124 00:07:42,880 --> 00:07:46,360 Speaker 1: of you mentioned acci Infinity and an FT game, which 125 00:07:46,440 --> 00:07:49,200 Speaker 1: brings us to this concept of game five, which, as 126 00:07:49,240 --> 00:07:51,720 Speaker 1: far as I'm concerned, is a slightly misleading thing because 127 00:07:51,720 --> 00:07:53,560 Speaker 1: I don't think that any of the crypto games I've 128 00:07:53,560 --> 00:07:56,480 Speaker 1: played are actually fun, but I will leave that to 129 00:07:56,520 --> 00:07:59,520 Speaker 1: you to say more on. Yeah, game five is a 130 00:07:59,680 --> 00:08:03,640 Speaker 1: really interesting area that I love reporting on. UM it's 131 00:08:03,840 --> 00:08:07,360 Speaker 1: you know, combination the words game and finance, and basically 132 00:08:08,040 --> 00:08:11,120 Speaker 1: it's a way to describe n f T and crypto 133 00:08:11,200 --> 00:08:16,440 Speaker 1: games that place a heavy emphasis on earning crypto tokens 134 00:08:16,680 --> 00:08:19,560 Speaker 1: through the game. And it's also connected to the term 135 00:08:19,640 --> 00:08:22,480 Speaker 1: play to earn, which would be something used to describe 136 00:08:23,040 --> 00:08:25,400 Speaker 1: a game like Acxie Affinity, where a lot of the 137 00:08:25,480 --> 00:08:29,400 Speaker 1: main objective is focused on earning money. So a lot 138 00:08:29,480 --> 00:08:33,080 Speaker 1: of people describe these sort of play to earn games 139 00:08:33,200 --> 00:08:37,599 Speaker 1: is just sort of financial tools and investment platforms with 140 00:08:38,160 --> 00:08:42,599 Speaker 1: debatable Yeah, basically it is a very charitable way of 141 00:08:42,640 --> 00:08:46,000 Speaker 1: pussing as Yes, but these these games do have people 142 00:08:46,160 --> 00:08:49,600 Speaker 1: playing them right there. There's a fairly lively ecosystem in them. 143 00:08:50,120 --> 00:08:53,240 Speaker 1: Oh yeah, they've actually become part of the gig economy 144 00:08:53,280 --> 00:08:56,360 Speaker 1: in certain places like Accie Affinity is really popular in 145 00:08:56,400 --> 00:08:58,880 Speaker 1: the Philippines, and we saw a lot of interest grow 146 00:08:58,920 --> 00:09:01,480 Speaker 1: there during the pandemic when people were quarantined and at 147 00:09:01,520 --> 00:09:03,559 Speaker 1: home and you know, just on their computers all day. 148 00:09:03,679 --> 00:09:06,439 Speaker 1: So it's become a job for people in a way 149 00:09:06,480 --> 00:09:09,760 Speaker 1: to earn a living income. Got it, Thank you, Hannah 150 00:09:09,760 --> 00:09:12,960 Speaker 1: and Voldonna. We'll be right back with more terms from 151 00:09:12,960 --> 00:09:28,360 Speaker 1: our Bloomberg cryptoglossary. Well, we've said n f T a 152 00:09:28,440 --> 00:09:30,319 Speaker 1: couple of times now, so now we get to explain it. 153 00:09:30,440 --> 00:09:33,000 Speaker 1: So n f T s are non fungible tokens. People, 154 00:09:33,160 --> 00:09:34,439 Speaker 1: if they know what they are, they might think of 155 00:09:34,520 --> 00:09:36,640 Speaker 1: them just as monkeys, but are what else are they? 156 00:09:37,280 --> 00:09:39,560 Speaker 1: This has been a super hot topic the last couple 157 00:09:39,559 --> 00:09:41,679 Speaker 1: of years, especially since the pandemic has broken out. So, 158 00:09:41,760 --> 00:09:44,679 Speaker 1: as you said, they're non fungible tokens. They basically just 159 00:09:44,800 --> 00:09:48,400 Speaker 1: allow holders of like an art piece or collectible to 160 00:09:48,520 --> 00:09:52,559 Speaker 1: track ownership of that art on the blockchain. So a 161 00:09:52,679 --> 00:09:54,679 Speaker 1: meme can be an n f T, art can be 162 00:09:54,760 --> 00:09:57,000 Speaker 1: an n f T. A clip of something that happened 163 00:09:57,000 --> 00:09:58,959 Speaker 1: maybe in a sports game, can also be an n 164 00:09:59,040 --> 00:10:02,400 Speaker 1: f T. Like I said, they were super popular last year. 165 00:10:03,400 --> 00:10:05,920 Speaker 1: The markets sort of come down a bit since then. 166 00:10:06,120 --> 00:10:09,800 Speaker 1: But we did have notably Ukraine selling their own n 167 00:10:09,880 --> 00:10:12,880 Speaker 1: f T s to fund their war efforts earlier this year. 168 00:10:13,480 --> 00:10:17,120 Speaker 1: So let's say I spent five which I'm not making up. 169 00:10:17,160 --> 00:10:19,680 Speaker 1: People have done that. Where would I show it off? 170 00:10:20,520 --> 00:10:21,920 Speaker 1: A lot of people show it off on their Twitter 171 00:10:22,000 --> 00:10:25,480 Speaker 1: profile pictures basically, or you might tell your friends about it, 172 00:10:25,600 --> 00:10:28,000 Speaker 1: or you might hold it in your your crypto wallet. 173 00:10:28,160 --> 00:10:31,360 Speaker 1: But yeah, it's just code basically on the blockchain. That 174 00:10:31,400 --> 00:10:34,000 Speaker 1: seems less fun. This does seem fun. Talk to me 175 00:10:34,040 --> 00:10:36,800 Speaker 1: about ship coins. Yeah, it's okay for me to say 176 00:10:36,840 --> 00:10:41,439 Speaker 1: ship absolutely alight only on the show Cool Cool So 177 00:10:41,640 --> 00:10:46,000 Speaker 1: ship coins. Yeah. This is a derogatory term for cryptocurrencies 178 00:10:46,040 --> 00:10:48,760 Speaker 1: that are perceived to have little or no value and 179 00:10:49,000 --> 00:10:51,880 Speaker 1: no real discernible purpose. You know, we've seen it used 180 00:10:51,920 --> 00:10:54,800 Speaker 1: to describe things like meme coins like dodge coin, where 181 00:10:54,840 --> 00:10:57,240 Speaker 1: people are just like, this is dumb. To make matters 182 00:10:57,280 --> 00:11:00,839 Speaker 1: even more complicated, there actually is a cryptocurrency chitcoin, just 183 00:11:00,960 --> 00:11:03,400 Speaker 1: for maximum fun. Oh yeah, do we know what that 184 00:11:03,480 --> 00:11:06,120 Speaker 1: coin is trading at. I just looked it up, the 185 00:11:06,160 --> 00:11:10,839 Speaker 1: shipcoin cryptocurrencies trading it for actions of a scent appropriately 186 00:11:10,960 --> 00:11:14,360 Speaker 1: enough makes sense. Another concept that people say makes sense 187 00:11:14,400 --> 00:11:16,400 Speaker 1: but other folks have questions about is the whole idea 188 00:11:16,400 --> 00:11:18,959 Speaker 1: of who's going to talk to me about that? So 189 00:11:19,120 --> 00:11:22,480 Speaker 1: staking is when, if you're a crypto investor, for instance, 190 00:11:22,559 --> 00:11:25,520 Speaker 1: you actually let your coin be used to help facilitate 191 00:11:25,600 --> 00:11:28,240 Speaker 1: other transactions on the blockchain. So if you have some 192 00:11:28,360 --> 00:11:31,280 Speaker 1: coins laying around, you might actually deposit them in a 193 00:11:31,400 --> 00:11:34,000 Speaker 1: digital wallet, you lock it there, and then what you're 194 00:11:34,040 --> 00:11:36,640 Speaker 1: hoping is just to get rewards in return or a yield. 195 00:11:37,160 --> 00:11:39,800 Speaker 1: So it's almost like crypto screw. You agree to lock 196 00:11:39,920 --> 00:11:42,760 Speaker 1: up your your crypto for some amount of time, which 197 00:11:42,800 --> 00:11:45,240 Speaker 1: allows other people to make transactions on those things, and 198 00:11:45,400 --> 00:11:47,439 Speaker 1: in return you get paid a yield of some kind. 199 00:11:47,600 --> 00:11:49,520 Speaker 1: That's right. Yeah, you're hoping to get these rewards. You're 200 00:11:49,640 --> 00:11:52,360 Speaker 1: hoping to get something in return. And one of the 201 00:11:52,520 --> 00:11:55,240 Speaker 1: bigger areas of controversy as it relates to staking, which 202 00:11:55,280 --> 00:11:57,800 Speaker 1: is a key element of DEFY is the idea that 203 00:11:57,880 --> 00:12:01,319 Speaker 1: the yields that you're getting are just massive, right Like, 204 00:12:01,440 --> 00:12:03,480 Speaker 1: if you have your money in a bank, and you 205 00:12:03,559 --> 00:12:05,360 Speaker 1: have it there, and it means that the bank can 206 00:12:05,440 --> 00:12:07,280 Speaker 1: lend your money to other people in the form of loans, 207 00:12:07,559 --> 00:12:10,400 Speaker 1: you're getting you know what, like sub fractions of a 208 00:12:10,600 --> 00:12:13,600 Speaker 1: percentage interest rates. There are folks in crypto that are 209 00:12:13,640 --> 00:12:16,880 Speaker 1: offering you know, a thousand percent a p y or 210 00:12:17,160 --> 00:12:19,880 Speaker 1: or even more like, how is that possible? It's it's 211 00:12:19,960 --> 00:12:22,360 Speaker 1: only possible in defy, really, And this has been such 212 00:12:22,400 --> 00:12:24,880 Speaker 1: a sort of like striking point of what's been happening 213 00:12:24,920 --> 00:12:27,360 Speaker 1: in crypto markets over the last couple of years. So 214 00:12:27,520 --> 00:12:30,360 Speaker 1: you had during the pandemic, you had really rock bottom 215 00:12:30,559 --> 00:12:33,680 Speaker 1: low interest rates, and so if you had cash sitting 216 00:12:33,679 --> 00:12:36,280 Speaker 1: around in your bank account, you really weren't earning very much. 217 00:12:36,320 --> 00:12:38,679 Speaker 1: And so what was happening in the DeFi space was 218 00:12:38,760 --> 00:12:42,319 Speaker 1: attracting a lot of attention because some of these yields, 219 00:12:42,480 --> 00:12:46,120 Speaker 1: as you say, we're just astronomical, but really it's just 220 00:12:46,360 --> 00:12:49,000 Speaker 1: it's a function. It's a characteristic of the DeFi space. 221 00:12:49,360 --> 00:12:52,599 Speaker 1: Another characteristic of the DeFi space or something that describes 222 00:12:52,679 --> 00:12:55,719 Speaker 1: the characteristic of the defied space is tv L. What 223 00:12:55,800 --> 00:12:57,880 Speaker 1: does that stand for and what does it mean? Standsford 224 00:12:57,920 --> 00:13:01,280 Speaker 1: Total value locked and this for first to how on 225 00:13:01,400 --> 00:13:05,280 Speaker 1: DeFi platforms people will deposit crypto and the hopes of 226 00:13:05,360 --> 00:13:10,040 Speaker 1: earning interest and yield. The processes like lending and TBL 227 00:13:10,160 --> 00:13:14,360 Speaker 1: just basically refers to the total value of those deposited 228 00:13:14,400 --> 00:13:17,840 Speaker 1: assets on a DeFi protocol. So it's almost like assets 229 00:13:17,920 --> 00:13:22,200 Speaker 1: under management exactly. Another sort of big concept that gets 230 00:13:22,240 --> 00:13:25,040 Speaker 1: thrown around the laws, especially by venture capitalists, is this 231 00:13:25,160 --> 00:13:28,280 Speaker 1: whole idea of Web three. What I would love to 232 00:13:28,400 --> 00:13:31,199 Speaker 1: hear from you is what web three is and what 233 00:13:31,400 --> 00:13:36,000 Speaker 1: it isn't. Web three is just a brand new version 234 00:13:36,360 --> 00:13:41,000 Speaker 1: of the Worldwide Web basically, but it's built on the blockchain. 235 00:13:41,400 --> 00:13:44,600 Speaker 1: So if you think about the Internet that we have currently, 236 00:13:44,840 --> 00:13:46,640 Speaker 1: a lot of people might argue that we have a 237 00:13:46,679 --> 00:13:49,360 Speaker 1: lot of tech companies that have just taken so much 238 00:13:49,440 --> 00:13:52,840 Speaker 1: ownership there and they just control so much of the Internet. 239 00:13:53,320 --> 00:13:57,280 Speaker 1: Web three sort of shifts the power back to the 240 00:13:57,480 --> 00:14:00,319 Speaker 1: user away from some of the tech come niece that 241 00:14:00,360 --> 00:14:02,560 Speaker 1: have sort of been sucking up all of our data 242 00:14:02,640 --> 00:14:05,680 Speaker 1: and selling all of our data and information to advertisers, 243 00:14:05,760 --> 00:14:08,599 Speaker 1: so gives the ownership back to the users. How is 244 00:14:08,640 --> 00:14:11,160 Speaker 1: that actually happening or is that like the sales pitch. 245 00:14:11,760 --> 00:14:15,480 Speaker 1: It's very debatable. It's a super hot topic, um within 246 00:14:16,040 --> 00:14:19,600 Speaker 1: you know, venture capital investing in crypto, especially, you know, 247 00:14:19,680 --> 00:14:23,359 Speaker 1: when investors are putting a lot of money in platforms 248 00:14:23,400 --> 00:14:27,560 Speaker 1: in exchange for tokens that give them control over how 249 00:14:27,640 --> 00:14:30,480 Speaker 1: the platform is managed. So they're getting these massive amounts 250 00:14:30,520 --> 00:14:33,520 Speaker 1: of tokens that give them voting rights in terms of 251 00:14:33,600 --> 00:14:36,480 Speaker 1: how you know, a protocol is moving forward, and they 252 00:14:36,520 --> 00:14:38,880 Speaker 1: help shape how it exists. Um And they can also 253 00:14:39,000 --> 00:14:42,240 Speaker 1: stand to benefit enormously if the protocol takes off. So yes, 254 00:14:42,360 --> 00:14:46,840 Speaker 1: this is an area of debate whether or not web 255 00:14:46,920 --> 00:14:50,880 Speaker 1: threes actually decentralized space. Because in an actually decentralized space, 256 00:14:50,960 --> 00:14:52,920 Speaker 1: like we could all quit our jobs and sell art 257 00:14:52,960 --> 00:14:55,800 Speaker 1: on the blockchain and monetize that art directly and you 258 00:14:55,840 --> 00:14:58,800 Speaker 1: know not need agents or brokers or or anything like that. 259 00:14:58,920 --> 00:15:01,160 Speaker 1: But that's not so we are happening at scale yet, 260 00:15:01,800 --> 00:15:04,840 Speaker 1: not yet. I mean we've seen attempts, We've seen you know, 261 00:15:04,960 --> 00:15:08,440 Speaker 1: things pop up like decentralized social media networks, and you know, 262 00:15:08,760 --> 00:15:14,200 Speaker 1: really interesting applications. But Web three is only of the 263 00:15:14,240 --> 00:15:16,800 Speaker 1: way there, and I've heard that from people who are 264 00:15:17,080 --> 00:15:20,200 Speaker 1: really gung how about the space? Okay, well, a thing 265 00:15:20,280 --> 00:15:23,520 Speaker 1: that's happening today is yield farming. I am not allowed 266 00:15:23,560 --> 00:15:26,400 Speaker 1: to yield farm because I am a reporter reposing on finance, 267 00:15:26,440 --> 00:15:28,000 Speaker 1: but some people are and they're making money. You tell 268 00:15:28,080 --> 00:15:30,680 Speaker 1: us how this works. Yeah, so yield farming. You make 269 00:15:30,720 --> 00:15:33,600 Speaker 1: your crypto work for you. You want to earn interest 270 00:15:33,920 --> 00:15:36,920 Speaker 1: through things like lending out your crypto. You might actually 271 00:15:36,960 --> 00:15:40,760 Speaker 1: get a new coin in exchange for lending your own holdings. 272 00:15:41,200 --> 00:15:43,560 Speaker 1: So this is like a pretty exciting area where people 273 00:15:43,600 --> 00:15:46,440 Speaker 1: think that they can make a make a big buck on, 274 00:15:46,880 --> 00:15:48,840 Speaker 1: you know, lending out their crypto. So one of the 275 00:15:49,080 --> 00:15:52,720 Speaker 1: big I don't know, perhaps more fun parts of crypto 276 00:15:52,840 --> 00:15:55,120 Speaker 1: is the idea that like there's literally a meme for everything, 277 00:15:55,720 --> 00:15:58,080 Speaker 1: and you know, there's also some acronyms that people throw 278 00:15:58,160 --> 00:16:02,560 Speaker 1: around a lot. You know, I will have um friends say, Okay, 279 00:16:02,560 --> 00:16:05,160 Speaker 1: I keep seeing these people like typing on Twitter GM 280 00:16:05,280 --> 00:16:06,960 Speaker 1: or w A g M I and I don't know 281 00:16:07,000 --> 00:16:09,480 Speaker 1: what these things mean. Help me, So let's translate a 282 00:16:09,520 --> 00:16:11,720 Speaker 1: couple of those two. This is one of the more 283 00:16:11,800 --> 00:16:13,800 Speaker 1: fun parts of the crypto space. So you have a 284 00:16:13,880 --> 00:16:17,680 Speaker 1: lot of the crypto dialogue and discourse taking place on Twitter. 285 00:16:17,800 --> 00:16:20,760 Speaker 1: So you might see people log on in the morning 286 00:16:20,800 --> 00:16:25,240 Speaker 1: they'll say GM, which means good morning, g N means 287 00:16:25,320 --> 00:16:28,160 Speaker 1: good night. So you have a lot of people talking 288 00:16:28,320 --> 00:16:31,480 Speaker 1: to each other through these memes or acronyms. So just 289 00:16:31,640 --> 00:16:33,760 Speaker 1: to give you maybe a quick rundown of some of 290 00:16:33,840 --> 00:16:39,120 Speaker 1: the more popular ones. Is just an aspirational meme that 291 00:16:39,320 --> 00:16:42,600 Speaker 1: refers to Lamborghini's where a couple of years ago, during 292 00:16:42,600 --> 00:16:44,880 Speaker 1: a huge crypto boom in two thousand seventeen, you've had 293 00:16:44,920 --> 00:16:48,680 Speaker 1: people buying really fancy fancy sports cars and showing them 294 00:16:48,720 --> 00:16:51,440 Speaker 1: off at different crypto conferences, and so you have people 295 00:16:51,520 --> 00:16:53,840 Speaker 1: sort of saying when Lambo, as in, you know, when 296 00:16:53,840 --> 00:16:56,800 Speaker 1: are we going to hit the riches. Lf G is 297 00:16:56,840 --> 00:17:05,600 Speaker 1: another abbreviation. It means let's blank and yes. So it's 298 00:17:05,680 --> 00:17:08,680 Speaker 1: just it's a rallying cry for people in the crypto space. 299 00:17:09,440 --> 00:17:14,960 Speaker 1: H f SP means that actually it's a taunt. You'll 300 00:17:15,000 --> 00:17:18,200 Speaker 1: see it on Twitter all the time. It's pretty derogatory. 301 00:17:18,520 --> 00:17:22,960 Speaker 1: It's you know when somebody is sort of calling out 302 00:17:23,040 --> 00:17:27,440 Speaker 1: crypto for whatever bad influence it's having, or for lack 303 00:17:27,520 --> 00:17:30,920 Speaker 1: of regulation, or for prices crashing, or for anything that 304 00:17:31,280 --> 00:17:34,040 Speaker 1: that's sort of been negative in the crypto space. Crypto 305 00:17:34,160 --> 00:17:38,000 Speaker 1: fans might reply with h f SP, have fun staying poor, 306 00:17:38,960 --> 00:17:41,080 Speaker 1: And I'm sure in the past couple of weeks those 307 00:17:41,160 --> 00:17:44,240 Speaker 1: crypto critics are now replying to crypto fans with h 308 00:17:44,400 --> 00:17:48,320 Speaker 1: f SP. They might be. There's a lot of interesting, fun, 309 00:17:48,960 --> 00:17:52,000 Speaker 1: crazy stuff happening on Twitter in regards to a lot 310 00:17:52,040 --> 00:17:56,960 Speaker 1: a lot of McDonald's applications being passed around. Oh man, 311 00:17:57,560 --> 00:17:59,320 Speaker 1: what else should our listeners know? How can they go 312 00:17:59,480 --> 00:18:02,560 Speaker 1: bravely forth into the crypto wonderlandes and know what people 313 00:18:02,600 --> 00:18:06,080 Speaker 1: are talking about? Yeah? No, I mean, there's so much 314 00:18:06,160 --> 00:18:08,960 Speaker 1: information online for people to sift through that it can 315 00:18:09,040 --> 00:18:12,560 Speaker 1: be hard to cut through the noise. But there are 316 00:18:12,720 --> 00:18:16,080 Speaker 1: some really good educational resources out there where you know, 317 00:18:16,240 --> 00:18:19,160 Speaker 1: you can learn about these terms and you know, kind 318 00:18:19,160 --> 00:18:22,480 Speaker 1: of figure out your own way within the space. And basically, 319 00:18:22,560 --> 00:18:24,760 Speaker 1: I also think the new rule is if it exists 320 00:18:24,920 --> 00:18:28,119 Speaker 1: in crypto, there's a meme a bit. Yeah, so you 321 00:18:28,240 --> 00:18:29,800 Speaker 1: have to have a sense of humor when looking at 322 00:18:29,840 --> 00:18:33,720 Speaker 1: this space. D y o R means do your own 323 00:18:33,880 --> 00:18:37,040 Speaker 1: research exactly. That's a popular one and very linked to 324 00:18:37,119 --> 00:18:39,520 Speaker 1: what Hannah was saying. Fact, there's always always a way 325 00:18:39,560 --> 00:18:41,600 Speaker 1: to find something out. The problem is not everything that's 326 00:18:41,600 --> 00:18:44,879 Speaker 1: out there is necessarily reliable. But hey, um, well this this, 327 00:18:45,280 --> 00:18:47,159 Speaker 1: this is great. I'm going to just send this episode 328 00:18:47,200 --> 00:18:49,240 Speaker 1: around any time anybody in my family sends me what's 329 00:18:49,320 --> 00:18:50,480 Speaker 1: up and they're like, what does this mean? I'm like, 330 00:18:50,560 --> 00:18:52,720 Speaker 1: here you go. Here's Hannah and hold on explaining this 331 00:18:52,800 --> 00:18:54,960 Speaker 1: to you. So thank you so much both of you 332 00:18:55,080 --> 00:18:57,639 Speaker 1: for joining us. It has been a real pleasure and 333 00:18:57,800 --> 00:18:59,920 Speaker 1: look forward to having you back on again soon. Thank you, 334 00:19:00,320 --> 00:19:03,440 Speaker 1: thanks for having us. You can find more of all 335 00:19:03,440 --> 00:19:06,880 Speaker 1: Donna and Hannah's reporting on the Bloomberg Terminal, on Bloomberg 336 00:19:06,960 --> 00:19:10,920 Speaker 1: dot com and on Twitter. Hannah is h G. Miller 337 00:19:11,000 --> 00:19:18,240 Speaker 1: twenty nine and vil Donna is at Vildanna Hadrick on 338 00:19:18,320 --> 00:19:21,600 Speaker 1: the next episode of Bloomberg. Crypto Fidelity, one of the 339 00:19:21,680 --> 00:19:25,000 Speaker 1: largest investment managers in the world, made headlines when it 340 00:19:25,040 --> 00:19:27,840 Speaker 1: announced its intention to offer clients the ability to invest 341 00:19:27,920 --> 00:19:31,080 Speaker 1: in crypto through their four oh one Keve retirements accounts. 342 00:19:31,720 --> 00:19:34,320 Speaker 1: In such a volatile environment, is it a risky bet 343 00:19:34,400 --> 00:19:37,400 Speaker 1: to add digital assets to your retirement plan. I'll talk 344 00:19:37,440 --> 00:19:40,520 Speaker 1: to Bloomberg reported Susann Woollie about the recent history of 345 00:19:40,560 --> 00:19:42,960 Speaker 1: four O one, key investments in crypto, and why the 346 00:19:43,080 --> 00:19:46,760 Speaker 1: US Labor Department is less than enthusiastic about fidelities move. 347 00:19:47,800 --> 00:19:50,879 Speaker 1: I'm Stacy Marie Ishmael, and this is Bloomberg Crypto, a 348 00:19:51,000 --> 00:19:54,320 Speaker 1: daily podcast from Bloomberg and I Heeart Radio. For more 349 00:19:54,359 --> 00:19:57,200 Speaker 1: shows from I Heart Radio, visit the I Heart Radio app, 350 00:19:57,520 --> 00:20:01,320 Speaker 1: Apple Podcasts, or wherever you get your podcas tests. Email 351 00:20:01,359 --> 00:20:05,200 Speaker 1: your comments, questions or suggestions to Crypto at bloomberg dot net. 352 00:20:05,720 --> 00:20:09,960 Speaker 1: Find us on Twitter at Crypto. The producer and editor 353 00:20:10,000 --> 00:20:14,000 Speaker 1: of this episode is Vicky Vergolina. Our engineer is Blake Maples. 354 00:20:14,720 --> 00:20:18,840 Speaker 1: Original music by Leo Sidron. Bloomberg's head of Podcasts is 355 00:20:18,880 --> 00:20:19,680 Speaker 1: Francesco Levi.