Presented by Chris Burniske, Partner at Placeholder VC, at Fluidity 2019. Fluidity brings the worlds of finance and technology together to shape the future of blockchain and capital markets. On May 9, 2019, we welcomed companies and teams to help shape the narrative of rebuilding finance at the historic Williamsburgh Savings Bank in Brooklyn, New York. Resources: Website: https://fluiditysummit.com Facebook: https://facebook.com/fluidityio/ Twitter: https://twitter.com/fluidityio LinkedIn: https://linkedin.com/company/fluidityio/ YouTube: https://youtube.com/channel/UC0NBCYlgLIxjSljf7CV91nQ/

2. EXPECTATION
VS REALITY
Chris Burniske, Placeholder

3. Expectation is quantified & distilled in financial markets.

4. Bitcoin’s Network Value End of 2021
IF the Future is Half as Volatile as the Past
BitcoinNetworkValue(USD)
$0
$300,000,000,000
$600,000,000,000
$900,000,000,000
$1,200,000,000,000
January-13 June-14 November-15 April-17 August-18 January-20 June-21 November-22 April-24 September-2

5. Bitcoin’s Network Value End of 2021
IF the Future is Half as Volatile as the Past
BitcoinNetworkValue(USD)
$0
$300,000,000,000
$600,000,000,000
$900,000,000,000
$1,200,000,000,000
January-13 June-14 November-15 April-17 August-18 January-20 June-21 November-22 April-24 September-2
There’s the late
2013 bitcoin bubble

6. And recall, the late 2013 Bitcoin Bubble looked like this at the time:BitcoinNetworkValue(USD)
$0
$3,500,000,000
$7,000,000,000
$10,500,000,000
$14,000,000,000
January-13 July-13 January-14 July-14 January-15 July-15 January-16 July-16 January-17 July-17

7. Bitcoin’s Network Value End of 2021
IF the Future is Half as Volatile as the Past
BitcoinNetworkValue(USD)
$0
$300,000,000,000
$600,000,000,000
$900,000,000,000
$1,200,000,000,000
January-13 June-14 November-15 April-17 August-18 January-20 June-21 November-22 April-24September-25
There’s the late
2017 bitcoin bubble

8. And recall, the late 2017 Bitcoin Bubble Looked like This at the Time:BitcoinNetworkValue(USD)
$0
$100,000,000,000
$200,000,000,000
$300,000,000,000
$400,000,000,000
January-13 January-14 January-15 January-16 January-17 January-18 January-19 January-20 January-21

9. Bitcoin’s Network Value End of 2021
IF the Future is Half as Volatile as the Past
BitcoinNetworkValue(USD)
$0
$300,000,000,000
$600,000,000,000
$900,000,000,000
$1,200,000,000,000
January-13 June-14 November-15 April-17 August-18 January-20 June-21 November-22 April-24September-25

10. If Bitcoin is at $1 trillion in network value and “BTC dominance” is where it is today, crypto as a
whole is worth ~$2 trillion.
If BTC dominance continues to fall, as has been the trend, at 33% dominance the rest of
crypto is worth $3 trillion.
@placeholdervc

11. If Bitcoin is at $1 trillion in network value and “BTC dominance” is where it is today, crypto as a whole
is worth ~$2 trillion.
If BTC dominance continues to fall, as has been the trend, at 33% dominance the rest of crypto is
worth $3 trillion.
@placeholdervc

12. The Web bubble burst at $4.4 trillion in 2000 (inflation adjusted)
Irruption Frenzy Synergy Consolidation
Time
growth
CRASH
RECOMPOSITION
Deployment PhaseInstallation Phase
Web bubble burst at $4.4 trillion in 2000
2009
Bitcoin launch
2017
Crypto markets
hit $830+ billion In the coming years we’ll enter
the 2nd bull market of the frenzy
INFRASTRUCTURE & EARLY USE CASES WIDESPREAD APPLICATIONS
@placeholdervc

13. While the financial fervor may be just as fierce, in the next crypto bubble it’s
unlikely the tech will be where the Web was in 2000.

14. We have the internet upon which information, memes, and movements can spread (the
internet didn’t have the internet).
Blockchains have collapsed the cost of asset creation, custody, and transfer & their
native assets are globally accessible from inception.
The open source nature of crypto makes scam propagation a copy-paste affair, and
with short pathways to liquidity scammers can be maximally opportunistic.
@placeholdervc

15. Expectation is going to be insane.

16. Reality

17. 1. Tokenization
2. Decentralized Finance (DeFi)
3. Institutional Investors

18.
Our new asset class will continue to experiment with programmable value,
while existing assets port to this digitally native realm.

19. -Financial Times
May 2nd, 2019
https://www.ft.com/content/718a27a6-4a38-11e9-bde6-79eaea5acb64

20. 2. Decentralized Finance (DeFi)

21. @placeholdervc, data from Digital Asset Research (DAR)
MakerDAO: Total Loans Issued
CumulativeDAIDrawn(millions)
$0
$75,000,000
$150,000,000
$225,000,000
$300,000,000
Dec-21
Dec-21
Jan-22
Jan-22
Jan-22
Feb-22
Feb-22
Feb-22
Mar-22
Mar-22
Mar-22
Apr-22
Apr-22
Apr-22
May-22
May-22
May-22
Jun-22
Jun-22
Jun-22
Jul-22
Jul-22
Jul-22
Aug-22
Aug-22
Aug-22
Sept-22
Sept-22
Sept-22
Oct-22
Oct-22
Oct-22
Nov-22
Nov-22
Nov-22
Dec-22
Dec-22
Dec-22
Jan-23
Jan-23

22. @numerai @placeholdervc
Numerai: Cumulative Number of Unique Models Submitted
NumberofUniqueModels
0
45,000
90,000
135,000
180,000
December-19
June-20
September-20
October-20
December-20
February-21
March-21
May-21
July-21
September-21
November-21
January-22
March-22
April-22
June-22
August-22
October-22
December-22
February-23
March-23

23. @airswap @placeholdervc
AirSwap Trading Volumes
AirSwapVolumes(USD)
$-
$1,500,000
$3,000,000
$4,500,000
$6,000,000
AirSwapVolumes(ETH)
10,000
20,000
30,000
40,000
May 2018 July 2018 September 2018 November 2018 January 2019 March 2019
Volume (ETH terms) Volume (USD terms)

24. Blockchains are a natively financial technology that are likely to dogfood
themselves into relevance (then incumbents will hop onboard).
Low velocity, high value transactions are best suited to work through the kinks of
crypto’s current state of affairs (as we ride down cost curves).
@placeholdervc

25. The technology will outpace the law…

26. The technology will outpace the law…
…and cryptographic law trumps paper law in cryptoland.

27. Where are the Institutional Investors? (they’re already here)

28. If cryptonetworks produce valuable services for society, it’s inevitable a
market will blossom to value their native assets (it already has).
@placeholdervc

29. Thank you to @jmonegro @BradUSV @alexhevans @mlphresearch,
the @placeholdervc portfolio, and crypto at large.
You can find me @cburniske.