In this podcast episode, the hosts explore the nuanced evaluation of decentralized networks, focusing on the key differences between Total Economic Value (TEV) and Real Economic Value (REV). They compare Proof-of-Work and Proof-of-Stake mechanisms, with Charbonneau pointing out how traditional financial methods may fall short in assessing these networks. He emphasizes Bitcoin's challenges as a store of value, particularly its negative cash flow, in contrast to the potential profits offered by PoS systems. The discussion also addresses the relationship between Layer 1 and Layer 2 networks, advocating for a deeper understanding of their interactions rather than seeing Layer 2 as purely parasitic. The episode wraps up with insights into the latest developments in the crypto space, highlighting the rapid evolution and complexity of this dynamic industry.
