Nic Carter is a founding partner of Castle Island Ventures, and a prominent voice in the crypto community.
In this episode of The Scoop, host Frank Chaparro welcomes Nic on to discuss his thoughts on BTC maximalism, crypto regulation, stablecoins, and the best opportunities in crypto right now.
Read our notes below to learn more.
Crypto Regulation
- Being wrong about timing is the same thing as being wrong: Nic thought regulators would be more aggressive earlier.
- Every country experienced retail losses from LUNA collapse .
- LUNA collapse was a failure of expectations, as it was thought to be stable.
- Gold was illegal in 1930s and 1940s because it was an alternative to US government debt.
- Governments want you to hold their debt, not crypto, even if it’s stablecoins.
- Crypto should be more proactive on regulation, rather than just waiting for regulators.
- Crypto isn’t as transparent as people think it is, as most people don’t have the ability to access the onchain information.
- Protocols should be providing onchain information to users.
Thoughts on Stablecoins
- Circle USDC has become the most credible stablecoin.
- Stablecoin regulation compliance models include state trust charters, onshore money transmitters and offshore methods.
- Stablecoins take different approaches to OFAC compliance.
- Is it fair to call them “stablecoins” when fiat currencies experience high inflation?
- Stablecoins should include interest to help offset the inflation.
- Holding stablecoins instead of buying US Treasuries shows that people think there is 10% yield to be found in crypto.
Frank
- Purpose of fiat currencies is not to keep price stable, but to provide a medium of exchange.
- Stablecoins are actually stable in crypto, because everything else is extremely volatile.
Thoughts on BTC Maximilism
- Anyone that holds BTC is a Bitcoiner.
- Nic separated himself from the more religious part of BTC community.
- Money and religion are distinct, should stay this way.
- Many things such as fitness, veganism, environmental activism, and BTC are ways for people to maintain some religious practices without actually being religious.
- Bitcoiners may have overstated role BTC plays in energy transition in the U.S.
How Castle Island is Positioned
- Valuations are down, founder quality is up.
- Fund is deploying at a healthy rate, especially in DeFi.
- DeFi has been unloved in crypto the past year from VC.
- Most crypto data in mainstream media is wrong.
- Castle Island is interested in NFTs with utility and use cases.
Most Overlooked Opportunities
- BTC-related startups were overlooked for a while, not anymore.
- Nic values businesses focused on onboarding the ‘global south’.
- Nic values undercollateralized lending innovation; this is how crypto will get out of the credit crisis.
- Successful crypto lending firms will transition into blockchain based model.
- Forward-looking crypto lenders will use hybrid model: they rely on legal contracts but also benefit from putting activity onchain.
- This transparency helps regulators and clients.
- Insurgent companies, rather than established ones, bring new ideas.
This summary was originally posted on The Daily Bolt, which is a 100% free no-nonsense daily crypto newsletter by Revelo Intel.
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source https://www.reddit.com/r/btc/comments/y8cgap/podcast_summary_is_btc_maximalism_fading_away/
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