Mert Mumtaz: Bitcoin’s simplicity enhances its store of value, programmability doesn’t define money, and Solana’s engineering sets a new standard | Raoul Pal

Key takeaways

• Bitcoin’s simplicity as a non-programmable asset strengthens its position as a store of value.
• The programmability of crypto does not equate to it being money; it represents value in diverse ways.
• Investors often misclassify crypto assets, failing to recognize their distinct nature compared to traditional investments.
• Achieving product-market fit in crypto requires targeting a specific niche due to the technology’s novelty.
• Solana’s engineering principles enable it to address scalable solutions through solvable problems.
• Solana outperforms many blockchains in transaction speed and cost, enhancing its competitive edge.
• Future enhancements could make Solana significantly faster, cheaper, and more developer-friendly.
• NFTs extend beyond digital art, offering broader applications across industries.
• Stablecoins and trusted platforms like Aave are pivotal in restoring confidence post-FTX collapse.
• Blockchains should concentrate on financial technologies rather than solving unrelated problems.
• The FTX incident underscores the necessity for high-trust use cases in the crypto market.
• Emphasizing financial applications in blockchain can lead to more effective technological solutions.
• Solana’s transaction efficiency and cost-effectiveness set a benchmark in the blockchain space.

Guest intro

Mert Mumtaz is the co-founder and CEO of Helius, a Solana developer infrastructure platform providing RPCs, webhooks, and APIs. He previously worked as a software engineer at Coinbase, where he researched blockchains and built $NFT bots for Solana in his spare time. He co-founded Helius in June 2022 to support developers building scalable applications on Solana.

Bitcoin as a store of value

• Bitcoin’s approach is seen as a better use case for a store of value due to its non-programmable nature.

• I really like bitcoin’s approach of not doing anything that seems much better to me… that’s a much better use case for that as the store of value argument.

  — Mert Mumtaz

• The distinction between Bitcoin and programmable crypto highlights its stability.
• Bitcoin’s simplicity is a strength in the context of value preservation.
• The focus on Bitcoin as a store of value contrasts with other digital assets that offer programmability.
• Bitcoin’s role as a stable store of value is emphasized over its transactional capabilities.
• The non-programmable nature of Bitcoin aligns with its purpose as a value holder.
• Understanding Bitcoin’s unique position in the crypto ecosystem is crucial for investors.

The role of programmability in crypto

• The programmable element of money does not inherently make it money itself.

• The programmable element of money doesn’t make it money itself… we can think of it as value but it doesn’t have to be money.

  — Mert Mumtaz

• Programmability in crypto represents diverse forms of value rather than traditional money.
• Differentiating between crypto as money and as value holders is essential.
• Programmable features in digital assets offer unique functionalities apart from being money.
• The role of programmability is to enhance the utility of digital assets beyond monetary functions.
• Understanding the distinction between value representation and money is key in crypto.
• Programmability adds layers of functionality to digital assets, broadening their use cases.

Misconceptions in crypto investment

• Investors often misunderstand the distinct nature of different asset types in crypto.

• It’s like saying you know why would you invest in robinhood when you’ve invested in gold it’s like they’re just completely different asset types with completely different theses on basically everything.

  — Mert Mumtaz

• Recognizing the differences between various crypto assets and traditional investments is crucial.
• Misclassification of crypto assets can lead to misguided investment strategies.
• Each crypto asset type has unique characteristics and investment theses.
• Understanding the specific nature of crypto assets is vital for informed investment decisions.
• The diversity of crypto assets requires tailored investment approaches.
• Investors should be aware of the distinct value propositions of different digital assets.

Achieving product-market fit in crypto

• Finding product-market fit in crypto requires focusing on a small niche.

• The thing to understand especially in crypto when it’s newer technology is that you want to reduce you you you want to find pmf in a very small niche.

  — Mert Mumtaz

• Targeting a specific niche is essential due to the novelty of crypto technology.
• Product-market fit is crucial for the success of emerging technologies like crypto.
• A strategic focus on niche markets can accelerate the adoption of crypto solutions.
• Understanding the importance of product-market fit is key for crypto entrepreneurs.
• Narrowing down the target market enhances the chances of success in the crypto space.
• The unique nature of crypto technology necessitates a focused approach to market entry.

Solana’s engineering philosophy

• Solana’s engineering approach allows it to solve problems not barred by the laws of physics.

• If I take that playground that let’s say foundation then I can build structures on top of it that I know will stick because they obeyed the laws of physics and so that is to say all the problems that solana had in 2021 were soluble engineering problems.

  — Mert Mumtaz

• Solana’s design principles focus on scalable solutions through solvable engineering challenges.
• Understanding Solana’s engineering philosophy provides insights into its scalability.
• Solana’s approach differentiates it from other blockchain technologies.
• The emphasis on engineering solutions positions Solana for long-term scalability.
• Solana’s foundational design principles enable the development of robust blockchain solutions.
• Solana’s engineering philosophy is a key factor in its competitive advantage.

Solana’s transaction efficiency

• Solana processes more transactions per second than most chains in crypto combined at a lower median fee.

• Today solana does more transactions per second than most chains in crypto combined and it does that not only is it more scale it does it at a lower median fee.

  — Mert Mumtaz

• Solana’s transaction throughput sets it apart in the blockchain space.
• The cost-effectiveness of Solana’s transactions enhances its appeal to users.
• Solana’s efficiency in transaction processing is a significant competitive advantage.
• Understanding Solana’s transaction capabilities is crucial for evaluating its market position.
• Solana’s transaction efficiency contributes to its scalability and user adoption.
• The lower median fee of Solana transactions makes it an attractive option for developers.

Solana’s future potential

• Solana can become 10 times faster, 100 times cheaper, and at least twice more usable for developers compared to other blockchains.

• I think we can become 10 x faster a 100 times cheaper and at least two times more usable for developers to then build applications for.

  — Mert Mumtaz

• Solana’s potential improvements highlight its commitment to enhancing blockchain technology.
• The projected advancements in speed, cost, and usability position Solana for future growth.
• Solana’s focus on developer usability is crucial for expanding its ecosystem.
• Understanding Solana’s future potential is key for assessing its long-term viability.
• The ambitious goals for Solana’s development reflect its strategic vision.
• Solana’s future enhancements could significantly impact its market competitiveness.

The evolving role of NFTs

• NFTs are a technology that unlocks much more than just digital art; they have broader applications.

• NFTs can actually do… they’re a technology that’s not just about you know jpegs.

  — Mert Mumtaz

• NFTs offer potential utility beyond digital collectibles, impacting various industries.
• Understanding the broader applications of NFTs is crucial for future developments.
• The perception of NFTs is evolving as their potential use cases expand.
• NFTs represent a transformative technology with diverse applications.
• The role of NFTs in the digital economy is expanding beyond art and collectibles.
• Recognizing the broader impact of NFTs is key for understanding their future trajectory.

The importance of stablecoins and trust

• Stablecoins and high-trust use cases like borrowing and lending are crucial in the crypto space.

• Like ftx blowup did not help with trust but like so that’s another so stable coins and high trust use cases like borrow and lending I think like aave’s still the gold standard.

  — Mert Mumtaz

• Stablecoins play a vital role in maintaining trust in the crypto ecosystem.
• High-trust platforms like Aave are essential for rebuilding confidence post-FTX collapse.
• The FTX incident underscores the need for reliable and trustworthy crypto solutions.
• Stablecoins and lending platforms are pivotal in restoring market confidence.
• Understanding the role of stablecoins is crucial for navigating the crypto landscape.
• Trustworthy platforms are key to the sustainable growth of the crypto market.

Strategic focus for blockchain development

• Blockchains should focus on financial use cases rather than trying to solve all problems.

• A lot of people make the mistake of trying to shoehorn blockchains into solving all sorts of different problems but fundamentally they’re just financial technology.

  — Mert Mumtaz

• Prioritizing financial applications can lead to more effective blockchain solutions.
• The strategic focus on financial use cases enhances the impact of blockchain technology.
• Understanding the core purpose of blockchains is crucial for their development.
• Financial applications represent the most promising area for blockchain innovation.
• The emphasis on financial technology aligns with the strengths of blockchain systems.
• A focused approach to blockchain development can maximize its potential benefits.