This week in Bitcoin- 9-6-2019- eToro CEO Yoni Assia: BTC, Altcoins, ETH, Libra, Trading

Hello everyone this is adam meister the
bitcoinmeister the disrupt meister welcome to this week in bitcoin today is
September the 6th 2019 strong hand one Bitcoin equals one Bitcoin unconscious
capable defer of gratification oh my we have a very special show today
Yaya Xia is here he is the CEO and founder of eToro the world's largest
social trading network oh you've heard about it before you've seen it
advertised I've seen advertised um we're gonna get a ceo's perspective on the
space on Bitcoin on cryptocurrency on the future and the great thing is on
September the 10th at the D and DD summit which will be linked to below and
yannis info will be linked to below I will be moderating a discussion between
him and OD and we'll talk more about that later so a my big question here is
what what is a social trading network in your definition mean this is what
eternal is people are very curious about so eToro today is basically the largest
social trading network in the world with 11 million registered users who can
trade stocks from 15 different exchanges indices commodities ETFs currencies and
crypto currencies in one of the brokerage accounts around the world and
then the reason it's a social network is because everybody actually automatically
publishes their P&L their month by month basically performance and you can see
the trade by trade data of all of the users on the platform and you can see
follow and automatically copy top traders from all around the world so you
can find someone who did twenty five percent returns in each of the last
three years trading UK stocks German stocks and a bit of
Krypto when you copy him with a let's say $1,000 what it does it copies his
entire portfolio in the same proportion to your thousand dollars and every time
he trades it trades in your account at the same time in the same price so let's
say he holds an account you don't know how much money is in the account but 10%
of his account is in Bitcoin 10% is in Google and 10% is in Facebook you copy
him with $1,000 it'll open on those thousand dollars a hundred dollars in
Google a hundred dollars in facebook a hundred dollars in Bitcoin and every
time he trades will trade proportionally at the same time the same price in the
same amount all right now it is the crypto currency aspect of the business
is it completely separate from the tradition because you've had this
business for quite some time I mean uh since since before there was
cryptocurrency or basics so it is a part of the same platform were one of the
very few regulated brokers in the world who offer our users to trade both crypto
and stocks within basically the same platform the same user interface you can
copy people who invest both in cotton both in stocks and in cryptocurrencies
and maybe even in traditional currencies so everything is a unified experience
you do also have our blocking wallet so if you want to you can come on and
basically buy a Bitcoin on the platform and then transfer those bitcoins into
our multi-sig multi blockchain wallet there where you can basically transfer
the assets now you've got a whole shirt on right now so not only are you a
traitor and you want people to trade and again I am a holder Adam I'm asking you
all these questions about trading but uh you see it do you see Bitcoin as a a
savings account also III wouldn't necessarily say savings I think I don't
love that term I think Bitcoin I love it as an asset class I think it is a first
Stav its kind as a digital native asset I think it's brand awareness around the
world is you know and has the brand awareness of the coca-cola in Starbucks
at least in my little echo chamber so I definitely believe Bitcoin is here to
stay and is here to stay as the king of cryptocurrencies I but I do think that
it should be a part of a portfolio and people shouldn't have all of her savings
and all of their investments only in crypto we need to remember it's a risky
asset class stocks capital markets those are going to be here even if Bitcoin
supersedes and takes over all the fiat currencies in the world
you're still gonna eat McDonald's and drink Starbucks so I think in general
people need to remember it's a great asset class like by the way anything
gold is an interesting asset class as well I think it has a huge potential
upside but it needs to be a part of the portfolio a part of your asset
allocation and not all of it okay well let's dig a little deeper down
so you're saying that the asset class is cryptocurrency or the asset class is
Bitcoin is Bitcoin a completely different animal than the rest of the
all points I think it's simply you know it's it's its its king so for a lot of
people when you talk about crypto and Bitcoin it's it's synonymous especially
those outside of the ecosystem I think to asset class so again let's take this
a bit macro I think I I love Bitcoin but I also love blockchain which is a bit
different some Bitcoin maximalist saying blockchain is complete bollocks and you
know it doesn't make sense to talk about the technology when I started trading
Bitcoin a lot of it was because I was excited about the technology and the
reason for it is because I run a fin tech company I have been connected to
the banking system and trading venues and liquidity providers
of the world so I truly understand how wrong broken the current financial
services industries from a technical point of view and I think the concept of
blockchain and digital native assets is a revolutionary concept that should be
applied to every single asset in the world and those are and let me just
explain what are those features I my requirement by the way both of the
businesses and as a person is for every native asked for any financial asset
that I hold I want to have the ability to transfer the ownership to my own
account and and remove it so if it's in a bank or a broker I want to be able to
move it to my own ledger and to move it 24/7
to whomever I want I think that's a feature that's a great feature that any
financial assets need to have as part of the definition of what is a digital
native asset and if that happens then we're talking about a transition a buyer
know a hundred billion dollars into the blockchain so all of those new assets
whether you know tokenized assets whether stable coins whether it's Libra
those all fall under or sort of an umbrella of crypto assets or digital
native assets and I'm a very big believer in that transition in parallel
to Bitcoin as a store of value and as a hedge against government's all right
you've explained it well now I know there are a lot of people that disagree
you know putting everything on the blockchain type of thing but your aim in
real high with this and you're brought up a lot of topics that I got it that I
got a cover right now but Bitcoin dominance has hit 70% again is this a
short-term thing what what's your not so again let's split this into three there
are things like stable coins things that haven't emerged yet like art on the
blockchain or you know digital rights on the blockchain revenue share stuff on
the blockchain all you know thing have it emerged and there are there
existing crypto assets like whether it's Syrian or XRP or B&B III actually I'm
not again again I am a very pro innovation guy I'm an innovator myself I
love technology I've been in technology and trading since I was very young so
one I love the concepts of capital markets and I love the concepts of of a
Novation and Internet in general I think a lot of the crypto movement unifies
those two very very interesting markets of money and something that's tradable
with the ability to innovate and to collaborate around innovation I think
that each of the different crypto assets have a theoretical value and a
theoretical utility what whether one of them will ever be as big as Bitcoin I
don't think so whether some of them have value I definitely think so I in any
nature there is a different type of value right so it's really about the
execution ability so what you're asking is is the team around a specific crypto
asset are they good enough to increase the value in the utility of that crypto
asset in relation to its value today which is the same as you'd ask around
the stock right so you buy a stock of a company there's a lot of intrinsic value
you can analyze like the profits revenues etc here you don't have them
but the main question you should ask can the management team take this company
sort of and grow it to basically support the growth of a stock so it's the same
around if it's XRP you're talking about ripple apps if it's aetherium you're
talking about the entire group of the theorem development network or
foundation and if it's been beats obviously the baiance ecosystem for each
there's a theory of white make sense and how big
it potentially can be all right time I want everyone watching this show this
has been a great one so far pal that like button everybody
you mentioned aetherium I was I had this lined up aetherium has been in the news
the last few weeks all over social media people have been down on aetherium
what's your take are you down are people really just plain writing it off too
early here I think people are writing it up if people are I believe Dolph I'm not
sure who's right I think people who are writing it off for people who never
wrote it in the first place so III haven't seen a lot of etherium
enthusiasts throwing aetherium our way I saw a lot of Bitcoin maximalist
increasing their anti etherium tone which again I understand
I think Bitcoin maximalism is sort of like you know the priests of religion
that are protecting that religion and you know when there is something that's
religion like a lot of times the priests or guardians of that religion would by
definition attack anything that's not sort of within that ecosystem and if
theorems is basically today the second right it's second to Bitcoin it's it's
you know versus Sigma it's a significant second but but I think that creates
nobody in the Bitcoin ecosystem wants to see aetherium succeed let's say more
than it is today and even wanted to fail just to prove the point that bitcoin is
the only digital store of value and and I'm not a hundred percent behind that
concept of heard of Bitcoin as religion but though again I understand the role
like I understand the role of miners miners mine to have the block rewards to
make money the guardians of the Bitcoin religion
are trying to protect its value is the king of Bitcoin is the king of
now I mean you and you did say earlier that you really don't see anything
surpassing Bitcoin in the future in what it does I I definitely think Bitcoin as
as a crypto asset is a cryptocurrency my intuition is you know you will not it
will never lose its Kingdom and the reason is not necessarily the level of
the centralization which i think is important and unnecessary the the
technology which i think is important I think it's really around the community
around it which is quite resilient and the fact that and its brand awareness I
think I think you can't buy what Bitcoin means to probably hundreds of millions
of people today already you can't buy that for money it's very hard to surpass
that again that's one person's view who runs a company where people trade crypto
alongside other assets so yeah what am i slogans is Bitcoin is the next Bitcoin
it's not being all many coins try to be the next Bitcoin only Bitcoin is next
Bitcoin with that in mind is a theory on the next appearing in law for what it
does is there a pop do you have the same confidence that and with its brand it's
very well known that it cannot be surpassed or you as strong in your
belief in terms of the theorem as you are in Bitcoin not being surpassed if
you're I think again for every crypto asset you need to figure out what is the
utility of that crypto asset I think Bitcoin money main utility today is a
censorship less store a value that has the feet the transfer features are built
in into it right so and I think that's really doesn't today the main sort of
core value of Bitcoin is that store value and as such I think it's the
king of crypto in that category and it represents a hedge against government so
really its utility is how many more people buy Bitcoin and old bitcoin is
the utility of Bitcoin which is quite interesting
where theorem as an example has another utility and the utility of aetherium is
really the usefulness of the etherium network it's about how many people
create decentralized apps that run on aetherium and use gaps and how many
active users are using those apps and increase the usage of gas on the theory
of network so far we've seen initial success for the ethereal protocol with I
SEOs and I think we sort of also saw the you know stirlitz looks for a sort of
demise of sort of the run free ICO rally that we've seen in 2017 but I still
think you know I have Natomas in my laptop I visited several daps
we bought some crypto kitties so I think there is value but the real value of the
theorem will emerge as the ecosystem matures and as there is a direct
correlation between how many users use it taps on the theorem network how many
DAPs there are how much gas is used and you can sort of and in every asset look
for the same analysis right be it be the main utility of BnB is sort of discounts
on the B&B networks taking for iOS benefits basically that they're
inventing and pouring into the Ricoh system so if you believe in the binding
seco system and let's call it corporate governance that will keep on that
relationship between the bindings ecosystem finance users and the token
then potentially it could rise there's a lot of trust
embedded into the Seco system when there are clear teams you know whether it's
ripple labs with us therapy or whether it's the Tron foundation in
each of them you need to trust the team to support that token for its utility
let's let's talk about something you brought up briefly it was you said
stable coins and Libra now Libra has obviously been in the news
the guy will be on stage within a few days Rudy says libras not happening
what's your thought on Libra and is it is it going to happen your your innovate
innovation guys like the kind of yes I think Libra is going to happen I think
generally it's it's a very smart nice effort project driven by Facebook very
very inspired from the crypto community though some crypto people would not like
to admit it they have launched an open-source block in they have been
calling it the crypto it has initially a network of a hundred validators somewhat
reminding stuff like eos or x RP etc again other crypto assets and supported
in theory pseudo anonymous transfers on the network that's the initial white
paper so I think all of that means they actually launched a very nice white
paper and potentially could raise billions upon billions of dollars for
Libre will it happen yes I think Facebook will launch it because mark is
Facebook Facebook is Mark and I think it's going to be hard for people to stop
someone like mark that's my that's my view I might be wrong there the market
forces might be stronger than I think but it's a similar sort of structure as
aetherium has anybody stopped theorem yet has anybody to close the theorem is
anybody sort of after Vitalik in the etherium foundation
no so so my sleeper so different than people think it will be stopped I don't
know will is there a good chance that regulators then it's going to be a more
closed ecosystem there is a good chance they'll have to make concessions with
regulators to make sure that they're able to protect sort of anti money
laundering rules etc so will they launch exactly what they said in the white
paper I think we'll have to make concessions towards regulators to make
it something that hoodie would probably say so they just did another Apple but
they did sorry another paper but I think you know Facebook building their own
PayPal together with PayPal in coinbase and Visa and MasterCard and other group
of companies building sort of an open-source payment network is a cool
thing and it's cool but it's based on the blocking well this is the thing the
government bureaucrats I think they are used to the paradigm where countries are
more powerful than companies and the way it looks at outsiders is that Libre is
going to make its own currency and thus Facebook is going to become more
powerful than many countries and I like that I like that a lot what's what's
your take on this is it all right first of all first of all Apple Microsoft
Google Facebook are already bigger and stronger and more impactful in the world
the most countries not all countries but most countries you know with a billion
users here and a two billion users there there they're quite powerful as is and I
think we are living in a very interesting time where we have four four
says by the way these forces were there even before crypto but I think now we're
starting to see sort of the clash of those forces it's the large large tech
companies it's the regulators and governments it's
of a libertarian cyberpunk movement which started all this and it's the
traditional financial institution system which is a very powerful industry yes I
actually I do think maybe I am naive I do think eventually tech companies
have a relatively good moral and sort of moral compass and what they don't have
and I love that so if is they don't have weapons so how so first you know I
prefer give more power to entities that don't have weapons than to give you more
power to entities that have weapons engine in general but I think it's a
very big you know we don't know and and then multiply these four sort of forces
by the ones you know in the different countries right because we are living in
the era of trade wars of populist leaders sort of becoming the new type of
leaders are whoever's outing louder which is not by the way a great thing in
my opinion but that's what we're seeing right now so those forces of trade wars
of the changing ecosystem together with this technological paradigm shift I
think we're just at the beginning of it and I think twenty years from today
we're gonna be in a very different world and we live in today I agree it's the
beginning of a Golden Age pound that like button people you brought up the
four players one of them worked with traditional finance which is very very
powerful van eck backed all these uh we hear names that are going to enter the
space what is what is your take in a what's about to happen the news broke
obviously this week that ban act is coming up with a sort of ETF that's not
for the general public I guess what's what's the role of traditional finance
in uh in the space or should people be worried I think it's ready uh I think in
general is the same role that newspapers had in the internet so the the smart
ones will adapt all right so media companies the trend newspapers who
figured out how to adapt to the Internet potentially grew bigger the Internet is
bigger than the newspaper industry but who ever learn how to build the website
and do clickbait articles managed to grow their business through the internet
so I think traditional finance is going to use block chain because vlog chain is
going to eat eventually traditional finance the ones who are adapting to it
fast are the smart ones organs of survive this paradigm shift Vinick in
general are very crypto Buller I love you know what they're doing
Jean Vinick in Gabor are very sort of determined to see this Vanek ETF coming
up and I think they found a nice logical potential solution too many kids only
accessible for accredited investors I think or institutions let's see let's
see if it gets approved I think it's a great step in the ecosystem to enable
more traditional investors to buy Bitcoin we want traditional investors to
buy Bitcoin traditional investors you know pension funds asset managers will
find it very hard to buy Bitcoin regular Bitcoin let's call it so it makes sense
for it to be wrapped as an ETF and you know things like backed or you know
which is sort of a spin of a vise I think having more participants in the
ecosystem is generally a positive thing do I think there is a lot of appetite
right now I'm not sure how BIG's that that is of institutional investors
running into crypto but let's see well everything will be transparent so you
know when something like a Vanek etf launches at least one thing's for sure
we'll be able to see it's a un like we can see the AUM of gbtc of the grayscale
OTC traded fun now so yeah we it will be interesting to see if they really do
have a big of an interest a traditional finance people that we've been led on to
believe now in the current state and you see your numbers how many people use a
trade crypto at the site and everything retail regular people from the people
I've been talking to it appears to me we haven't had too many new retail people
lately get into Bitcoin regular Joes and Janes ice Oh what are your numbers like
what do you think's going on currently oh we have seen a significant pickup
from the group to winter era okay right which isn't that isn't that long ago six
months ago so we've seen significant pickup in the interest in crypto
currencies over the past six month I sort of from q1 to q2 we saw you know at
least growth of 200 to 300 percent if not more in the level of interest of
consumers in crypto we're still very far off from the level of interest there was
in December 2017 now whatever that will come back anytime
soon as I I think it's an open question so
that's a recent realization I had is well everybody is expecting sort of
crypto rally 2.0 to come I'm not sure necessarily that's the
the most probable scenario I think there's a good chance we're gonna see
Bitcoin going up maybe 250 thousand but it's going to take you know five to ten
years of gradually going up through gradual adoption through maturity of the
network through gradually more and more and more people buying it I think there
is a possibility a scenario where it goes from ten thousand to fifty thousand
and two month but that's not necessarily the best thing for the ecosystem and we
saw that last time because a lot a lot of people ended up disappointed when it
did a a jump like that but I more people I say you know it's a roller coaster
it's so early don't get discouraged because of tremendous drops over the
long run he is going up now you're a marketing guy I mean you I again I shows
that it's advertised detours advertised on the pier oh sure I've heard it on
I've seen it banner ads you just sponsored Russell oaken's event in LA
but this having that we have coming up a Bitcoin happy and I'm going to tie it
all together in a second that's natural marketing for Bitcoin could that be the
trigger to to send instead of instead of a ten-year or gradual build-up which was
one of your scenarios could that be the trigger to wake people up this most
people don't know about to have it now I mean if you took a survey people I bet
most people on your site that are playing around but they don't know what
having is they're just in it to make make money so could they having be a
natural marketing tool and what are your thoughts on that
III think that what the heaven does it reduces inflation incur in Bitcoin and
it reduces it for the first time under the inflation of gold so it's only
becoming almost by definition the deflationary asset you know from an
expected deflationary asset it actually is becoming a deflationary asset
compared to all assets post having so there's gonna be less less block rewards
that miners can sell the market and pressure price down so from a purely
logical point of is that something that should support
price yes a hundred percent but efficient market theorem says it's
potentially already baked in the price that's because every everybody knows
happening it is coming so if everybody knows having is coming it might have an
impact it doesn't mean that every person who is basing his trading strategy on
how things should have already bought Bitcoin since he knows having is coming
so again there's always a question of what is already baked into the price I
still think there are a lot of people holding crypto that if crypto now rises
to twenty thousand a lot of them are going to sell and as long as that's the
case there's sort of a resistance there but again this is you know this is the
markets the markets have the life of its own we can wake up a month from today in
Bitcoin at five thousand or at fifty thousand in the long term 100 percent I
agree you know as long as Bitcoin remains King which I assume it does
we're gonna see it was a significant up uptick in price compared to today how
long it takes how exactly it happens is something we'll need to watch the
markets in this market I think you give I think you give the market a lot of
credit for its knowledge I mean just two years ago people were in the same market
where they felt these icos were totally legitimate I I think the market is is
made up of a lot of people who do not understand what they're even do what
they're what they're doing that uh what what the having is so I mean you said
everybody knows about the having I think I think very few people so I just wanted
to toss that out there that uh I mean I remember last time around as more and
more people found out about this having thing the price did go up that Dan had
started to be priced in in my opinion at least and it was a lot of stories were
written about it were more there's a lot of having – I see
something similar like that happening this time but we will we will have to
see there's still some time by having we we have some time with you know so so
that might happen but maybe three six months from today yes twenty nine twenty
twenty yet I don't know I don't wanna rush things I'm enjoying it all right
you know I didn't even know each ro was based in Israel I had I had no clue
uh-huh until I was told you know you would do behind you doesn't go whoa
what's going on you what about thee you've been all over the
world what what about their Israeli I crypto ecosystem is it is it bigger
better what's your take on the ecosystem they're well they're a lot I think a
hundred to two hundred crypto companies in Israel startups I think a lot of
interest in the ecosystem a lot of great pick around cybersecurity and crypto
assets coming from Israel around sort of custody security of crypto assets some
interesting sort of companies that you know like blocks that does portfolio
management across all of your crypto assets Ledger's exchanges so I think
there are a lot of interesting companies in Israel a very vibrant sort of
ecosystem of innovators we have authorial also coming here to Israel in
two weeks and the DD NT conference so I think it's a great ecosystem it's
growing there's a lot of challenges for people on the aspect of actually getting
money in and money out of out of Israel that people aren't familiar with so the
banking industry is very anti crypto in Israel so it's hard for people to
actually convert crypto assets back into fiat into Israeli bank accounts so
there's a high level of regulatory uncertainty but I think in general the
same as you FinTech is a very big ecosystem there's
about 600 FinTech companies in Israel I think at least five FinTech unicorns in
Israel and I think that fin tick and blockchain have a lot of connectivity
between them all right III tell people value your wealth and
Bitcoin don'tyou don't need to change it back in the shekels people once you got
the Bitcoin just just live in the Bitcoin live in the Bitcoin world will
tell us it a detour oh what's the latest news over there what's your big what's
what's the big stuff you got to share with the world it's it's time to promote
the company on here what's the latest and greatest thing going on eToro so you
know we're very excited about the launch in the u.s.

We're very new in the u.s.
we've been running eToro for the past 12 years around the world we have offices
in Australia in China in three places in Europe in the UK and South Africa so
very excited about launching our crypto platform in the US outside the US we
offer both stock trading and crypto very looking forward to do that also in
the US within the next six month sort of launching our complete offering in the
u.s. very excited about it Toro X we launched recently our crypto assets
exchange so we Toro in its core is a social
trading platform where you can buy both stocks and crypto assets but it's a Fiat
in Fiat out ecosystem we have been the wallet which enables you to transfer
assets from the trading platform into the wallet and we just recently launched
it or waxed but it basically enables people to trade any crypto assets to one
another but together with it we actually build our own issuance platform and
launched 12 stable coins we're actually going to launch a couple of additional
stable coins in the next couple of month and the stable could basically cover the
top ten fiat gold and silver so were the only crypto asset exchanged
where you can actually trade euro dollar gold dollar gold Bitcoin litecoin euro
yen pound the combinations of both crypto assets and our 12 stable coins
and we're gonna now launch another range of stable coins so we're connecting and
that's really how we look at the role of eToro in the blockchain industry or the
crypto industry we're sort of the bridge between the traditional world of sort of
trading and investing and this new exciting world of crypto trading well
you I'm just gonna ask you about stable coins you've got you've got a lot
invested in it it seems like in terms of you believe in stable coins you really
do you ready hey there's a lot of people that are just like so blah about it but
it seems like you're on the other side of things what is that was I I think
again we deal so much with the traditional financial services industry
and you know I've had that experience of working with you know probably four or
five dozen financial institutions banks there api's for me the ability again to
take a euro at a dollar again pound gold silver an asset and being able to
transfer that asset from any place to any place 24/7 with low fees and being
able to transfer it into my ledger and then I decide where to send it next I
think that is an embedded feature that needs to be embedded in any financial
asset in the world period III think that's a that should become eventually a
requirement that if you offer financial services to people you need to enable
them to download the assets to their ownership and send it to whomever you
want you don't need to control it as the financial intermediary anymore and I
think that's what stable coin represents stable coin represents basically a Nick
step in in the balance sheet of companies and how they can enable that
balance sheet to move between people between companies in a click of a button
through locks into cloud Wow Yani hacia what a guest the CEO
perspective on this gigantic crypto ecosystem remember Ellen that was a
Tuesday the 10th the the D and DD summit it is linked to below he'll be on stage
with booty and and me and we're gonna have a we're gonna have a blast of
everybody come to that tel-aviv blockchain week it's basically already
started fly-in hang out bitcoin embassy see everybody this is quite a town for
Bitcoin for cryptocurrency is there anything else you want to add before we
say goodbye thank you very much for having me and go eat or calm or download
our app to see how people actually know how to trade crypto all right
all right this is this is the pleasure Yanni I really hope you returned to the
show in the future I can't wait to meet you in person on Tuesday it is going to
be a blast alright everybody that is it that was
that was this week at Bitcoin what a classic remember check out all the links
below found that like button i'm adam meister the bitcoinmeister the disrupt
meister subscribe to the channel and shabbat shalom we will see you here
saturday there's a new show here every day this week in bitcoin is every friday
take care everyone see ya

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