Okay, uh faster than it was in the bitcoin space and ethereum is very interesting. It’S like, if you imagine, bitcoin as being a gold coin. Ethereum is a coin that has a magic spell in it that when you transact with somebody else that spell is unlocked, and that is computer code. So you can create smart contracts in this transaction that can replace real laws. Number of wallet addresses active wallet, addresses in ethereum and match them when bitcoin was at the same phase, the actual speed of accumulation of wallet addresses in ethereum is twice as fast. Also only a tiny percentage of my viewers are actually subscribed if you enjoy the video. Consider subscribing it’s free and you can always change your mind, enjoy the video. Well, you know when you talk about networks immediately. The first thing i go to is ethereum versus bitcoin. I know this is gon na. We were gon na hate this, but you know uh. Let’S be honest, uh, ethereum, network effect wise is happening in that space, okay, uh faster than it was in the bitcoin space. So that’s telling you something yes. So when i look at the um number of wallet addresses active wallet addresses in in ethereum and match them. When bitcoin was at the same phase, the actual speed of accumulation of wallet addresses in ethereum is twice as fast, so it is getting network effects faster. The number of developers on the platform is miles more than the bitcoin network.
The number of applications is miles more. That doesn’t mean bitcoin is dead or there’s anything else, it’s serving a different purpose and that’s okay, and it will have some of the attributes of ethereum but that’s, okay. But the facts are the um. The number of active addresses in bitcoin is growing up 50 a year i mean that’s, huge ethereum is growing at 100 a year and the entire space is growing at 113 a year, so um ethereum is basically doubling in its network effects versus bitcoin, but arguably the Network effects are more because of all the other apple applications, the developers and all the other parts of it so yeah, and this is a beast that is uh that is being unleashed, the market’s just starting to realize how powerful this is and could ethereum take. Some of the moneyness of bitcoin the store of value as it pivots this 1559 token and the eth 2.0 and the restricted supply and the and all of the other things, maybe the reduced gas prices. Well yeah i mean, i think, you’re going to see ether outperform. This whole cycle um because of that and again the we don’t really know where this is all going. This ah argument’s not going to be done in two years time. There’Ll still be lots of protocols, there’s another really super interesting protocol. That’S launching today, i think, called dfinity. I don’t own any of it, but this looks like it’s absolutely monstrous.
Um. All the kind of people who should be invested in it have been invested, it’s been developing for five years and they’ve launched it with applications and showcases and everything. I don’t even know what this means, but i think it’s coming out worth a hundred billion dollars. I mean at launch, i mean, oh, my god. I mean yeah there’s many of these things that are worth like 500 billion already, but this is huge and it’s come out of nowhere for most of us. Others obviously will know all about it. So we don’t know where this is all going. I think of it as we are not fighting for pieces of the pie, we’re creating a whole new pie and it’s, bigger and bigger, and all of this is seeing network adoption a bunch of it won’t, but even bloody dogecoin is getting network adoption on one side. We’Re not getting the other side yet we’re, not getting many use cases um, you know sure the dallas mavericks will take it as payment, but what if somebody does use it as a network for payment systems or builds another infrastructure on it? Then you’ve got all of these millions of users using it and investing in it. So you know who the hell knows all i know it’s going to happen fast. Well, you know. When you talk about network effects, we already we went into the minefield of of bitcoin versus ethereum. I want to go uh to something that’s more interesting uh because you talked about it earlier: india, i’m thinking about emerging markets in general.
So when we talk about the fang m we’re talking about you, know facebook apple, amazon, uh netflix, although you know i don’t know about netflix in that category, google and microsoft. You know we see some of the fang m in china as you mentioned, 10 cents, and you know alibaba. You mentioned one for india, but there are tons of potential uh fang m types network companies in the emerging markets. So when we look forward from an investing perspective, even from a traditional investing perspective, even if you’re not looking at crypto um, you know someone asks this question here in fact, uh. The question let me see if i can find it here is: if crypto is the best macro play. Uh should somehow crypto have an unexpected downturn for a long period of time. What is the second best asset to own macro speaking and what would be the hedge for crypto, okay, that’s, the question that tom tom asks? I’M? Actually, you know shoehorning my my thinking into that question about emerging markets, isn’t that a play uh from what tom tom was saying. So you don’t like arkhamvest right let’s, say you don’t, like that philosophy, because the u.s seems to be the center of these network effects. But, as you rightly say, the application of these network effects in emerging markets is exponential in its own way. So you will see this and you’ve seen it in india, with the adoption of digital technologies and i’m going to interview somebody uh in the next couple of weeks about uh, the digital, india, stuff and what’s happening at the fintech layer, which is fascinating.
I mean right now in india, google pay, which we don’t have google pay means. I can send ed harrison 10 bucks to your phone number that’s. All. I need because india has this upi payments, rail, underneath that’s instant payment system. So once you start multiplying the payments technologies and the fintech layers, you start to free up capital you’re, freeing up capital in a country like india, where capital is scarce and you give access to the global capital markets via cryptocurrencies. And you start upgrading to 5g technologies and all of this okay you’ve got a game changer on your hands, you’re, going to change the trend rate of gdp growth and that’s, not going to happen just to india. We’Ve seen it in china that will continue in china. Um, you know china has figured this out a long time ago and it’s pretty much more advanced than anybody else in all of this and then at the same time we will see it spread across africa, all emerging markets, and i think it will change. Take a step change. I think countries like saudi arabia, which is basically driven by the dollar and oil, will see huge changes as it shifts towards uh ev renewable energy technology. Now are they going to be successful or not? I don’t know it’s all about network effects. We’Ll see it to see whether they start attracting businesses and they can attract capital that attracts new opportunities and that that creates the network effect within the economy that silicon valley did in the us.
So, yes, i think you’re dead right. You know i want to uh. I want to uh run something by you: uh it’s it’s, a relatively cynical uh view. I think i i mentioned this to you earlier and uh a zoom that we had um. This is about the eu. So going back to the german uh carbon uh thing, the german carbon thing is a great vehicle. Okay, the cynical view that i have is that you know the compa, the countries that are like look. We want to get some deficit spending going here: okay, we’re, italy. We need some growth uh. This is the vehicle to make that happen. So when we talk about the exponential age – and we talk about copper and we talk about carbon uh credits – and we talk about evs, this is what is going to allow the eu to come together to create euro bonds, gr, green euro bonds and it’s. Also going to give the ability of italy to deficit spend in a way that doesn’t count against its uh. You know three percent uh hurdle uh for for deficits. This is something dario perkins was telling me about earlier. Is that he thinks that that’s, an idea that could gain traction? Of course it is, but why are they doing it? Are they always suspended for the sake of spending? Why are they doing it and the reason why they’re doing it is their banks are broken? This is why they’re going to central bank digital currencies, they need to bypass the banking system.
Europe has no growth, so it’s got no growth, high debts and a banking system that doesn’t work so you’re going to have to somehow bypass the banking system, which is the central bank, digital currencies and then you’ll need to retail the economy to something different that can Generate higher growth because selling louis vuitton and german engineering is not going to cut it, because these are generally speaking, um. We need step change industries that don’t employ that as many people they’ve got aging populations across europe, so bataan’s not gon na cut it. No it’s, not gon na come it’s. A big blood company and bernardo is one of the richest men in the world, but still so, the electric age is where we’re going into that’s the digital age, right, it’s, it’s, it’s, electricity, capturing and transfer, and attaching bites to it that if you can spend money Now to retool like you would do a factory to modern technology which is retail all of europe. You have a chance to generate enough growth to pay back some debts, but if you don’t do it so you have to take more debts to do it. So i get it the bet’s a mess, it’s not easy, but if you don’t do it, the economy is never going to transform itself and you’re stuck forever. So i kind of feel like you’re damned if you do damned if you don’t, but at least one of them has a call option attached the anything else.
Doesn’T have a call option.