Summary of "Are Bitcoin & Crypto Doomed?! | Tariff Wars Explode!" on "The Wolf Of All Streets" Podcast

Release Date: April 4, 2025
Host: Scott Melker
Guest: NLW

1. Introduction to Expanding Trade Wars

The episode begins with Scott Melker announcing the explosive nature of current trade wars, describing them as an unprecedented "tariff palooza" [00:01]. He sets the stage by questioning whether Bitcoin and cryptocurrencies are decoupling from traditional markets amid this economic chaos or if further difficulties lie ahead.

Scott Melker [00:01]: "Trade wars are exploding with tariffs the likes of which the world has never seen its tariff palooza, if you will."

NLW echoes the sentiment, emphasizing the unpredictable trajectory of tariffs and dismissing any claims of certainty regarding their outcomes.

NLW [01:30]: "Anyone who says that they do [know the outcome] is lying to themselves or to you or to both."

2. Analyzing the Nature and Impact of Tariffs

Scott and NLW delve into the mechanics and motivations behind the current tariff strategies. Scott highlights the contrast between traditional, targeted tariffs and the broad, seemingly indiscriminate approach being employed, which he describes as "purposeful mayhem."

Scott Melker [02:32]: "Tariffs are not used as a blunt force instrument against every person you can possibly find. Usually they're very narrow and targeted and temporary..."

NLW categorizes the responses to the tariffs into three groups: opponents of the policy, traditional economists who find the approach irrational, and supporters with diverse motivations. She references Balaji Srinivasan’s analogy to illustrate the unsustainable nature of the current tariff strategy.

NLW [06:49]: "Balaji Srinivasan made an analogy basically to a 98-year-old man who used to be able to bench press 315 pounds, hasn't bench pressed, you know, in 50 years and tries to go straight to 315 pounds."

3. Bitcoin's Resilience Amid Market Turmoil

Despite the tumultuous economic environment, Bitcoin and other cryptocurrencies demonstrate notable resilience. Scott points out that while traditional markets plummet—Dow Jones down over 1,000 points—Bitcoin remains relatively stable, trading around $82,500 [09:07].

Scott Melker [12:53]: "Bitcoin is actually up on the last two days, which is absolutely astounding."

NLW attributes Bitcoin’s stability to its unique asset dynamics, a robust base of long-term holders, and its appeal during periods of extreme volatility. She also notes the influence of key figures like Nick Carter in defending Bitcoin's position.

NLW [09:07]: "Bitcoin and markets tend to be correlated when times are fine and then start to see the decoupling a little bit when bitcoin has to shift into this other gear."

4. Circle’s IPO and the Stablecoin Landscape

The conversation shifts to Circle, a major stablecoin issuer, which has filed for an IPO after securing a $1.7 billion stablecoin reserve [13:54]. Scott expresses optimism about the IPO's success, especially with JP Morgan handling it.

Scott Melker [14:31]: "This isn't the first rodeo for Circle. Attempting to go public didn't go so well last time. I think they get there this time."

NLW discusses the competitive pressures in the stablecoin market, suggesting that Circle is positioning itself ahead of potential saturation and commoditization challenges.

NLW [15:19]: "Circle is well past the point of no return as far as adoption and their user base."

5. BlackRock’s Endorsement of Bitcoin as a Reserve Currency

Larry Fink of BlackRock delivers a strong endorsement of Bitcoin, suggesting that it could become the global reserve currency if the U.S. continues its current fiscal trajectory [16:23]. This marks a significant shift in mainstream financial endorsement.

Scott Melker [17:20]: "Larry Fink here going full Kaiser, full satoshi, full, you name it, as orange peeled as you can possibly get."

NLW highlights the dual nature of Fink’s endorsement, viewing Bitcoin both as a strategic financial asset and a hedge against economic instability.

NLW [18:02]: "Anything like this, you know, sort of strong full-throated endorsement in these kind of times is I think very, very important for everyone."

6. Launch of Solana Policy Institute

A new development in the crypto policy arena is the launch of the Solana Policy Institute, a nonprofit aimed at educating policymakers on the importance of decentralized networks like Solana [19:07].

Scott Melker [19:07]: "We're excited to announce the launch of Solana Policy Institute..."

NLW discusses the implications of key industry figures, such as Kristen Smith from the Blockchain Association, moving to advocate specifically for Solana, raising concerns about potential biases in policy lobbying.

NLW [20:09]: "The most powerful policy voices in Washington are now associated with a single asset... It's interesting to see how it happens."

7. SEC Nominee Atkins and Regulatory Progress

Scott introduces the advancement of SEC nominee Atkins, who is perceived as a pro-crypto advocate [22:56]. Both hosts express cautious optimism about his potential impact on the regulatory landscape.

Scott Melker [22:56]: "SEC nominee Atkins advanced by Senate Banking Committee."

NLW recalls past skepticism towards SEC appointments but now shows support for Atkins, citing his positive outlook for the industry.

NLW [23:23]: "The only person at the SEC that's got my full, full-throated support is Hester Purse... He looks better."

8. House Stablecoin Bill Advances

The episode highlights the progress of the House stablecoin bill, supported by both Trump and Democrats, signaling bipartisan interest in regulating stablecoins [23:39].

Scott Melker [23:39]: "The stable Act coming out of the House committee... Looks like stablecoins are very much the low hanging fruit that will get legislated."

NLW expresses optimism about the bill's passage, viewing it as a positive step towards regulatory clarity.

NLW [25:05]: "I continue to watch this issue of interest bearing as the, as, a sort of big sticking point. But I think I'm still generally optimistic about this getting through in a way that's net positive."

9. Conclusion: Optimism for Crypto’s Future

Despite ongoing economic and regulatory challenges, both hosts maintain an optimistic outlook for Bitcoin and the broader crypto market. Scott highlights Bitcoin's upward trend over the past few days as a beacon of hope [25:05].

Scott Melker [25:42]: "Bitcoin is actually up on the last two days, which is absolutely astounding."

NLW concurs, reinforcing the belief that crypto might be entering a pivotal moment of growth and stability.

NLW [25:21]: "Maybe it's always maybe our moment."

Notable Quotes with Timestamps

• Scott Melker [00:01]: "Trade wars are exploding with tariffs the likes of which the world has never seen its tariff palooza, if you will."

• NLW [01:30]: "Anyone who says that they do is lying to themselves or to you or to both."

• Balaji Srinivasan (cited by NLW) [06:49]: "You can't unwind 45 years of policy with 45% tariffs."

• Austin Campbell (cited by NLW) [13:54]: "We've gone from far left populist, anti-progress economics straight into far right populist, anti-progress economics."

• Scott Melker [12:53]: "I will give the benefit of the doubt. I will say maybe they know what they're doing and I just don't understand what it is. But right now it seems like chaos."

• NLW [09:07]: "Bitcoin and markets tend to be correlated when times are fine and then start to see the decoupling a little bit when bitcoin has to shift into this other gear."

• Scott Melker [14:31]: "Attempting to go public didn't go so well last time. I think they get there this time."

• NLW [15:19]: "Circle is well past the point of no return as far as adoption and their user base."

• Scott Melker [17:20]: "Larry Fink here going full Kaiser, full satoshi, full, you name it, as orange peeled as you can possibly get."

• NLW [20:09]: "The most powerful policy voices in Washington are now associated with a single asset."

• Scott Melker [25:05]: "Bitcoin is actually up on the last two days, which is absolutely astounding."

• NLW [25:21]: "Maybe it's always maybe our moment."

This structured summary captures the key discussions, insights, and conclusions of the episode, providing a comprehensive overview for those who haven't listened.