Crypto Conversations_ The XRP Debate Episode2

Crypto is a wild and exciting world with headlines about Bitcoin, government crackdowns, and exploding coin values. The potential impact of a pro-crypto Trump administration and the need for clearer regulations are discussed. The departure of SEC Chair Gary Gensler could bring a turning point in regulatory approach. The increased activity on the XRP ledger is examined, highlighting the difference between velocity and actual adoption. The launch of RLUSD, a stablecoin, could bridge the gap between traditional finance and blockchain technology. Finding a balance between the crypto community and regulators is crucial for long-term success. Progress is being made in fostering a more cooperative relationship between the two. buckle up everybody because today we're going deep into the crazy world of crypto yeah it's a wild ride out there it really is every week there's a new headline about Bitcoin going to the moon or some government crackdown or some coin I've literally never even heard of suddenly exploding in value it's hard to keep up with exactly and that's why we're here today to cut through all the hype and get to the bottom of what's really going on you've got a lot to unpack for sure yeah we do from political figures getting involved with crypto to some major shakeups at the SEC and of course we'll be looking at specific coins that are making waves like a plane ok let's kick things off with something a little unexpected Donald Trump you know the former president he's been saying some interesting things about crypto lately oh yeah yeah remember how he used to be pretty skeptical of Bitcoin well recently he's actually come out in support of digital assets he's been talking it up at rallies that's a pretty big shift right so it's got everyone wondering what would a pro crypto Trump administration actually look like yeah would it just be talk or would he actually push for some crypto friendly laws that's the million-dollar question what kind of impact could that have on the industry well one big thing could be the regulations there's a lot of talk about needing clearer regulations to bring in more of the big institutional investors you know the ones with the really deep pockets like who will for example Caitlin long the CEO of custodial bank she's been really pushing for this kind of regulatory clarity she says it would give these big institutions the confidence they need to jump into the crypto market so more clarity equals more big money flowing into crypto but I've also heard concerns about too much regulation you know that it could stifle the creativity and innovation that make crypto so exciting yeah too much regulation could definitely kill the buzz so where's the line how do we find the right balance that's the tricky part yeah too little regulation then you've got the wild west which can be exciting but also super risky too much regulation and you risk choking out the whole decentralized spirit of crypto right that's a tough one so what are people saying well some folks are even talking about the possibility of a federal regulatory body specifically for crypto wow really yeah the argument is that it could bring more consistency because right now you've got different rules in different states and it's all pretty confusing yeah that makes sense but I guess the concern is that a crypto specific regulatory body could get too powerful yeah there's definitely that worry that it could become too heavy-handed and impose rules that are out of touch with how fast crypto moves and changes it's almost like they need people from the crypto world to be involved in those discussions right like they need to understand the tech and the culture before they start laying down the law I think that's a good point okay well speaking of things that will be interesting to watch unfold there's another big change on the horizon Gary Gensler the current chair of the SEC is stepping down in 2025 well I had heard that yeah it's a pretty big deal and you know Gensler has been a controversial figure in the crypto world he hasn't exactly been cryptos biggest fan right he's taken a pretty tough stance with a big emphasis on investor protection and enforcement actions so people are thinking this could be a turning point exactly with a new chair coming in there's a lot of speculation about whether we might see the SEC soften its approach like maybe take a more collaborative approach exactly some people believe that a new chair could bring a more balanced perspective you know focus on fostering innovation while still making sure investors are protected I mean it makes sense right now it feels like the SEC and the crypto world are kind of at war yeah it does and it doesn't really benefit anyone not really there are some voices in the crypto community that are actually advocating for more cooperation with regulators like who well for example Ben Peters he's a regulatory analyst at blockchain intelligence group and he believes that the right leadership at the SEC could create an environment where regulators and crypto companies actually work together to shape the future of the industry that'd be pretty big change it would but it's definitely possible so Gensler leading could be a big turning point but we'll have to wait and see what happens it's like a whole new chapter is about to begin ok let's move away from regulations for a bit and zoom in on a specific coin that's been making headlines lately XRP I've been seeing a lot about increased activity on the XRP ledger with some people even claiming it's a sign of wider adoption what's your take ah XRP always an interesting one there's definitely been an uptick in activity particularly when it comes to transaction speed we call that velocity in the crypto world velocity so things are moving faster on the XRP ledger yep but here's the thing as with all things crypto it's important to look beyond the headlines and really dig into the data meaning meaning there's more to the story than just faster transactions ok now I'm intrigued tell me more well there's a really interesting article by Gino Matos in cryptosleep he pointed out that while velocity has increased total deposits on the XRP ledger have actually dropped quite a bit actually almost 20% in recent weeks wait so more transactions but less money overall that doesn't make sense well it all comes down to the difference between velocity and actual adoption velocity just measures how quickly transactions are happening it doesn't tell us about the actual value being transferred so it's like a highway you can have cars speeding down the highway but that doesn't tell you anything about what's inside the cars exactly it's all about context ok so just because transactions are happening faster doesn't mean more people are using XRP right to gauge true adoption we need to look at other things like the number of active addresses and the overall transaction volume basically are more people actually using XRP for its intended purpose so in this case the increased velocity is interesting but it's not the whole story yeah we need to look at the bigger picture to figure out if this is a real trend or just a temporary blip you know it's like trying to understand the health of the forest you wouldn't just look at how fast the wind is blowing through the trees you'd look at how the trees are growing the diversity of the plants and animals the whole ecosystem that's a great analogy it's about taking a holistic view and that's what we try to do here on the show get the full picture speaking of which let's switch gears to something that has the potential to really bridge the gap between traditional finance and the blockchain world stable coins I'm hearing about a new stable coin called RLUSD that's launching in select markets what's the deal with this one so RLUSD is what we call a fiat-backed stable coin which basically means its value is paid to a traditional currency like the US dollar so unlike Bitcoin which is known for its wild price swings RLUSD is designed to stay stable exactly and that makes it a lot more appealing to people who are hesitant about all the volatility in the crypto market I can see that so could this be the thing that finally gets more people using crypto it has the potential imagine being able to use a digital currency that's as stable as the dollar but with all the benefits of blockchain technology like faster transactions and lower fees that's what's really good to me right and it could have a huge impact on the whole issue of volatility which is a major concern for a lot of people who are thinking about investing in crypto so RLUSD is definitely one to watch absolutely it's still early days but it's definitely worth keeping an eye on yeah it really does feel like we're on the verge of something huge here it's exciting isn't it it is you know we were talking about regulations earlier and it seems like that's a big topic these days like the crypto world and the government are on this collision course yes one of the biggest issues facing crypto right now yeah you've got this tension between the crypto community that wants to be free from traditional financial systems and the regulators who are trying to protect investors and keep everything stable like two different worlds colliding yeah and finding that sweet spot that balance between those two forces is going to be crucial if crypto is going to succeed in the long term so how do we bridge that gap is it even possible it's a tough question but I think it is possible but it requires both sides to be willing to talk to each other to compromise and to really try to understand the potential of this technology so it's not about being pro-regulation or anti-regulation it's about finding some kind of middle ground exactly a middle ground that allows the industry to grow and innovate but also protects people and the financial system as a whole that makes a lot of sense so are you seeing any signs of that happening like are those conversations actually taking place I think we are starting to see some progress you know regulators are realizing that being too heavy-handed could actually backfire it could stifle innovation and push crypto underground and nobody wants that right and on the other side the crypto community is realizing that some level of regulation is probably necessary to build trust and encourage wider adoption so maybe we're heading towards a more cooperative relationship between the two we're starting to see people on both sides realizing that they need each other that's a good sign okay let's shift gears a bit and talk about something a little more down to earth the performance of specific coins you know we talked about XRP but there are literally thousands of other cryptocurrencies out there it's mind-boggling isn't it it really is so for someone who's new to all this it can feel incredibly overwhelming where do you even begin I'd say start with the basics and learn about blockchain technology and how it works then start to familiarize yourself with the different types of cryptocurrencies okay that makes sense but there's so many coins out there how do you narrow it down well that's where research comes in don't just jump on the latest hype train take the time to understand what a coin is actually trying to do what problem is it solving does it have real-world applications so it's about looking beyond the price and trying to understand the underlying value exactly investing in crypto shouldn't just be about trying to make a quick buck it should be about supporting projects that you believe in projects that you think could actually make a difference in the world I like that so align your investments with your values now you know one thing I think a lot of people are concerned about is the environmental impact of crypto especially the energy consumption associated with mining yeah that's a valid concern and it's something that the industry is taking seriously what's being done about it well a lot of the concern stems from the proof-of-work consensus mechanism that Bitcoin uses it's very energy intensive proof-of-work I've heard that term but I'm not really sure what it means basically it means that miners have to use a lot of computing power to verify transactions and secure the network and that uses a lot of energy so is there a way to mine crypto without using so much energy well there are other consensus mechanisms that are much more energy efficient like proof-of-stake proof-of-stake what's that instead of miners competing to solve complex problems in proof-of-stake validators put up some of their own coins as collateral to participate in the process of verifying transactions so they have skin in the game exactly and because it doesn't require all that computing power proof-of-stake is way more energy efficient interesting so is anyone actually using proof-of-stake yeah actually Ethereum the second largest cryptocurrency switched to proof-of-stake last year and it dramatically reduced their energy consumption that's great so it is possible to make crypto more sustainable yeah and beyond that there are even projects that are using blockchain technology to directly address environmental challenges really like what well for example some platforms are using blockchain to track carbon emissions and reward companies for adopting sustainable practices so crypto can actually be a force for good in the fight against climate change it's still early days but the potential is huge I'm really liking this idea of crypto being used for good okay before we wrap up this part of our conversation I think we need to address the risk of investing in crypto we've talked a lot about the potential rewards but they're all for some downsides oh absolutely crypto is definitely high risk high reward asset class so it's not all sunshine and rainbows definitely not it's important to be realistic about the risks and never invest more than you can afford to lose right so don't bet the farm on dogecoin just because you saw a funny meme on Twitter yeah that's probably a good rule of thumb it's easy to get caught up in the hype but it's important to make informed decisions and understand your own risk tolerance exactly and it's not just about financial risk either there are security risks as well you know exchanges can be hacked wallets can be compromised and there are a lot of scams out there so it's important to do your research and choose reputable platforms and wallets and to be very careful about who you trust absolutely security should be a top priority for anyone who's involved in the crypto world it's a bit of a wild west out there so you need to be smart and protect yourself exactly okay well that's a good reminder that while crypto has a lot of potential it's important to approach it with a healthy dose of caution I agree balance is key balance that seems to be a theme that keeps coming up it's a theme that runs throughout the entire crypto ecosystem finding the right balance between innovation and regulation between risk and reward between optimism and caution that's the challenge and the opportunity that we're all facing I feel like we could talk about this for hours me too there's just so much to cover the whole universe out there so we've talked about Trump and the SEC and XRP and stable coins and all these different trends what does it all actually mean for our listener well I think the most important thing to remember is that there's no one right answer when it comes to crypto it's a very personal journey yeah everyone has different goals and a different level of risk they're comfortable with exactly so there's no magic formula no guaranteed path to riches I wish there was right but the reality is crypto is still pretty young and it's volatile not for the faint of heart so what advice would you give to someone who's just starting out in the crypto world I'd say the most important thing is to do your research don't get caught up in the hype or the FOMO you know the fear of missing out right because it's easy to make impulsive decisions when you see the price of Bitcoin going through the roof exactly but those gains can disappear just as quickly so take your time learn about the technology understand the risks and invest responsibly invest responsibly that's good advice so what else what else should people keep in mind stay informed the crypto world is constantly changing so you need to keep up with the latest developments new technologies regulations trends there are tons of resources out there you know new sites blogs podcasts social media groups it's a full-time job just keeping up with it all pretty much yeah but the more you know the better decisions you can make so it's about being an active participant not just a passive observer right be curious ask questions yeah experiment and don't be afraid to make mistakes everyone makes mistakes especially in the beginning it's all part of the learning process exactly you know one thing that I think is really special about the crypto world is the sense of community oh yeah yeah there's a real feeling that we're all in this together you know people are passionate about this technology and they're really eager to help each other out that's cool so it's not just about the money it's about being part of something bigger I think that's true for a lot of people in the crypto space it's like a movement it is and that community can be a huge asset you know especially if you're just starting out don't be afraid to reach out ask questions connect with people who share your interests find your tribe yeah exactly because it can be overwhelming trying to navigate this world on your own so finding a community can make all the difference it's like having a support system right and a source of information and inspiration ok so we've got invest responsibly stay informed find your community any final words of wisdom before we sign off hmm I'd say just remember why you're here what drew you to the crypto world in the first place with the technology the potential for financial freedom the desire to be part of something truly innovative and disruptive it's good to have a North Star yeah keeping that why in mind will help you stay focused and make decisions that are aligned with your goals and values well said so as we wrap up this deep dive into the world of crypto I want to leave you with this question what excites you most about the future of crypto what are you curious about what problems do you hope to see this technology solve think big yeah because who knows maybe one of our listeners will be the next big innovator in the crypto space I wouldn't be surprised it could be you listening right now so keep exploring keep learning and keep your eyes on the horizon thanks for joining us on this deep dive into the world of crypto we'll see you next time