180 - Top 5 Bear Market Bets with Avichal Garg & Sanjay Shah of Electric Capital

Bankless

How to Navigate the Idea Maze of What to Invest In

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You can only really generate value as an investor if you have a deeper understanding of what's happening than anybody else. alpha in a market comes from depth of understanding, and there are a million different ways to do that. People who invest in picks and shovels can be wildly successful. My worst fear as an investor is I see that opportunity and I make all the bad best in that category and lose all my money or I don't make the return.

Nothing tests your conviction like a bear market. This is an opportunity to test what you think you know, refine your thesis, and make your bets for the next leg up.

Avichal and Sanjay are long time crypto investors and at VC fund electric capital. What are they betting on during the bear market?

We discuss 5 of the most pressing questions facing crypto investors during the bear market including…

1) L2 tokens - Are L2 tokens they worth something or they just worthless governance tokens?

2) AltL1s…Will the ETH killers make a comeback?

3) Multichain world - Millions of L2 chains or a few big winners?

4) Restaking - big deal or overhyped?

5) What Avichal things are this cycle’s alt-coins.

Episodes like this are an opportunity to sharpen your insights as a crypto investor. Don’t take these ideas as gospel. Wrestle with them. Test them. Make them your own. We’ll have other Bear Market Bets episodes with other perspectives, so this isn’t the last.

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Timestamps

0:00 Intro

8:00 L2 Value Capture

15:12 How Rollups Make Money

20:20 Harmful vs. Good MEV

25:00 Transactions Fees & L2s

38:05 Are L2s Valueable?

40:00 Multichain L2s or Few Winners?

43:05 Multichain Applications

49:09 Multichain Friction

59:02 Are NFTs Dead?

1:06:45 Investing in NFTs

1:10:00 RSA’s Worst Fear

1:15:10 Ethereum Killers & Modular/Monolithic Chains

1:19:22 L1s Playing the Monetary Premium Game

1:22:00 RSA vs. Avichal Moneyness Debate

1:24:30 Is Restaking Overhyped? Risky?

1:29:35 Crypto’s Antifragileness & Are We Lost?

1:33:40 Closing & Disclosures

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Resources

Avichal Garg

https://twitter.com/avichal

Sanjay Shah

https://twitter.com/sanjaypshah

Read

https://mirror.xyz/electriccap.eth/SD0wT7qSSfis9gLT_Ki1gY6_oTYEqgwcGE0hDw7kMDY

https://www.developerreport.com/developer-report

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Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here: https://www.bankless.com/disclosures⁠