Ed Moya, Senior Market Analyst at OANDA, joins us to review why he felt the cryptocurrencies were the big winners along with the LA Rams in the Super Bowl due to the 4 key commercials that generated a lot of buzz during and after the game.
In this discussion we get Ed to unpack some key misconceptions about cryptos and what the value drivers are for the cryptos. We get into the emerging use cases for decentralized finance and smart contracts with the altcoins, and contrast that with the much different qualities that Bitcoin has, making it more of a unique store of value for crypto investors. We contrast Bitcoin with Gold, and dig into to what aspects are similar like scarcity, no third party counterparty risk and it being a currency outside of the traditional fiat system, but then show it is a different asset class in many regards. I ask Ed how something that can drop 40-60% after the highest CPI readings in decades can be seen as either a store of value or an inflation hedge. We wrap up with questions around how there is so much confusion and debate about if there is value in Bitcoin and why that value is not nothing, but in fact is backed by the 13 year network and infrastructure backing up the cryptocurrency and doing proof of work verifying transactions.