WEBVTT - Bitcoin v Crypto v Securities 0:00:00.040 --> 0:00:02.680 Hello, and welcome to another episode of the Mark Moa 0:00:02.840 --> 0:00:06.120 show where we talk about the decentralized revolution each and 0:00:06.120 --> 0:00:08.559 every week, talking about the way the world is changing, 0:00:08.600 --> 0:00:10.399 of course as we look at it through the lens 0:00:10.480 --> 0:00:15.960 of politics, finance, and technology, and there's no shortage of 0:00:16.000 --> 0:00:19.079 things to talk about as the world is moving really 0:00:19.120 --> 0:00:24.919 really fast. Of course, maybe, man, all three are just 0:00:24.960 --> 0:00:27.920 so important. That's why we talk about all three. But 0:00:28.000 --> 0:00:32.159 we're witnessing the first sovereign debt crisis in about a 0:00:32.240 --> 0:00:36.320 hundred years, and so this super inflated you know, debt 0:00:36.360 --> 0:00:40.320 bubble is collapsing. Of course, the Federal Reserve is restricting 0:00:40.320 --> 0:00:44.000 the monetary supply by raising rates. Um. They came off 0:00:44.000 --> 0:00:47.400 of their easing their monetary easy program to do monetary tightening, 0:00:47.760 --> 0:00:52.159 and it's causing problems all over the world in every area, 0:00:52.680 --> 0:00:57.040 from uh yeah, from politics, like where now people can't 0:00:57.040 --> 0:00:59.240 afford their debt and so we want, you know, the 0:00:59.280 --> 0:01:02.120 president one to forgive student loans, and now we need 0:01:02.160 --> 0:01:05.440 to raise taxes and then we have to offset people's 0:01:05.720 --> 0:01:10.280 expensive energy bills. Um. So yeah, politics, and of course finance, 0:01:10.360 --> 0:01:14.319 where we have the stock markets crashing, the cryptocurrency markets 0:01:14.319 --> 0:01:16.559 are crashing, and then of course we have technology which 0:01:16.640 --> 0:01:19.360 is trying to kind of offset and change all this 0:01:19.440 --> 0:01:22.200 and it is a wild world if you just tune 0:01:22.200 --> 0:01:24.440 it in. Thank you, make sure to tune in with 0:01:24.440 --> 0:01:26.760 me each and every week at the same time, at 0:01:26.800 --> 0:01:28.840 the same channel. You can put a reminder in your 0:01:28.840 --> 0:01:32.000 phone so you don't miss out, and of course always 0:01:32.120 --> 0:01:34.320 feel free to catch me on the podcast. If you 0:01:34.360 --> 0:01:37.679 miss me, just search Mark Moss on your favorite podcast player. 0:01:38.040 --> 0:01:41.160 All right, so, uh, we have been talking about for 0:01:41.200 --> 0:01:42.759 a good part of this year. I mean, we talk 0:01:42.840 --> 0:01:45.720 a lot about all three of those topics. But of 0:01:45.760 --> 0:01:50.040 course the financial markets have been in turmoil, and specifically 0:01:50.080 --> 0:01:54.520 the cryptocurrency markets have burning turmoil going back until about 0:01:54.600 --> 0:01:58.160 May of this year. Mayo where we saw, you know, 0:01:58.720 --> 0:02:01.360 really things start to aching a turn for the worst. 0:02:01.400 --> 0:02:05.880 Of course, November one was kind of the high water 0:02:06.120 --> 0:02:10.320 mark for cryptocurrencies. That's where bitcoin, ethereum, etcetera. Had their 0:02:10.360 --> 0:02:14.440 their their all time highs. And of course that is 0:02:14.480 --> 0:02:16.920 when the Federal Reserve said that they were going to 0:02:17.200 --> 0:02:21.520 start raising rates. Now, the Federal Reserve is not trying 0:02:21.600 --> 0:02:25.000 to sneak up on anybody. A lot of times people 0:02:25.360 --> 0:02:27.320 are a lot of people, I should say, are spending 0:02:27.320 --> 0:02:29.000 a lot of time trying to figure out what the 0:02:29.000 --> 0:02:31.960 feed is gonna do next, what they're gonna what, what 0:02:32.040 --> 0:02:34.560 they're really saying. They're trying to read between the lines, 0:02:34.600 --> 0:02:37.840 so to speak, trying to guess what they're doing. The 0:02:37.880 --> 0:02:41.959 Central Banks, the Federal Reserve is not trying to trick you. 0:02:42.440 --> 0:02:44.239 They're not trying to sneak up on you. As a 0:02:44.240 --> 0:02:46.080 matter of fact, they're trying to tell us well in 0:02:46.160 --> 0:02:48.720 advance what they're doing so we can all be prepared 0:02:48.800 --> 0:02:52.639 for this. And so all you gotta do is watch 0:02:53.080 --> 0:02:56.359 watch their news press releases, you know, watch their meetings, 0:02:56.760 --> 0:02:59.079 look at the notes, the minutes that come out after that, 0:02:59.560 --> 0:03:03.320 and they're helling you. All right. So they told us 0:03:03.600 --> 0:03:06.480 back in November that they were going to start raising 0:03:06.560 --> 0:03:11.240 rates and going into quantitative tightening. Now, if you haven't 0:03:11.240 --> 0:03:13.720 been following along, if we just rewind the clock a 0:03:13.760 --> 0:03:17.560 little bit more, you remember in two thousand twenty, specifically 0:03:17.600 --> 0:03:21.440 March of two thousand twenty, the entire world stopped, or 0:03:21.480 --> 0:03:26.280 more specifically, the governments of the world shut the world down, 0:03:26.600 --> 0:03:31.320 uh specifically shutting down businesses, closing businesses, firing workers, and 0:03:31.400 --> 0:03:34.440 so much more over this whole pandemic situation. Um. And 0:03:34.480 --> 0:03:37.680 so when that happened, of course, businesses that have been 0:03:37.720 --> 0:03:42.080 in business for decades, multiple decades, multiple family generations were 0:03:42.240 --> 0:03:45.640 literally forced to close out of business. And so when 0:03:45.680 --> 0:03:49.560 the economy screeches to a halt, then earnings go down. 0:03:49.600 --> 0:03:51.640 So then you would expect stocks to go down, which 0:03:51.640 --> 0:03:54.280 is exactly what happened. The stock markets crashed at a 0:03:54.280 --> 0:03:57.280 at an alarming pace, dried up all the liquid e 0:03:57.360 --> 0:04:00.080 that and everything just froze up of course because they 0:04:00.080 --> 0:04:02.240 shut it down. Of course, then the Federal Reserve had 0:04:02.280 --> 0:04:06.760 to leap into action and start injecting money, injecting liquidity 0:04:06.760 --> 0:04:08.960 to get the markets moving back again. And then, um, 0:04:09.040 --> 0:04:10.920 the reason why I kind of go backwards into that 0:04:10.960 --> 0:04:13.560 story because then the Federal Reserve, which is doing this 0:04:13.760 --> 0:04:18.000 monetary easy, which is lowering interest rates. Remember when they 0:04:18.040 --> 0:04:22.520 lower interest rates, people take on more debt. Money is 0:04:22.640 --> 0:04:25.440 created through debt, so it's not like the Fed pumps 0:04:25.440 --> 0:04:28.599 and more dollars they create they lower interest rates. We 0:04:28.720 --> 0:04:32.120 take on more debt by houses, cars, boats, etcetera. And 0:04:32.200 --> 0:04:34.400 as that money is created in the ecosystem, it starts 0:04:34.400 --> 0:04:36.920 slashing around inside of there and then the reason why 0:04:36.920 --> 0:04:38.120 I go back to that, like I said, is because 0:04:38.120 --> 0:04:41.680 the FED said, um, you know, we're not thinking about 0:04:41.760 --> 0:04:43.280 raising rates. Then he came out like a month later 0:04:43.320 --> 0:04:46.320 and said we're not even thinking about thinking about raising rates. 0:04:47.000 --> 0:04:52.560 And what that did is that forecast to the markets that, hey, 0:04:52.640 --> 0:04:56.159 the Fed's gonna hold this easy monetary policy for a while. 0:04:57.360 --> 0:04:59.800 Let's go, let's run this thing up. And of course 0:05:00.000 --> 0:05:03.719 financial assets caught a bid. You saw houses jumping through 0:05:03.760 --> 0:05:06.120 through to new all time highs, all the stocks making 0:05:06.160 --> 0:05:10.480 new all time highs. Um. You know, I couldn't get cars, cryptocurrencies, 0:05:10.520 --> 0:05:14.400 et cetera. And so when they forecast to the market 0:05:14.480 --> 0:05:18.360 that game on, let's go, things took off. And then, 0:05:18.400 --> 0:05:20.479 of course, like I said, in November, they said, hey, 0:05:20.520 --> 0:05:25.239 we're gonna start pulling back. And so first we saw 0:05:25.560 --> 0:05:29.440 cryptocurrency start selling off. So Bitcoin and ethereum made their 0:05:29.520 --> 0:05:31.960 all time high right after the announcement and started selling 0:05:31.960 --> 0:05:34.400 off about a week or two later. On how the 0:05:34.480 --> 0:05:36.240 exact chart in front of me. A week or two later, 0:05:36.240 --> 0:05:38.800 we saw the Nasdaq, which is the tech stocks, start 0:05:38.839 --> 0:05:43.240 selling off UM and then UM, I think it was 0:05:43.400 --> 0:05:48.520 January two when the SMPI started selling off, and then 0:05:48.560 --> 0:05:51.120 of course finally the FED came through with what they 0:05:51.120 --> 0:05:54.080 said they were going to do in March of twenty two, 0:05:54.600 --> 0:05:58.960 they actually did start raising rates. Now, the reason why 0:05:58.960 --> 0:06:01.200 that's important to what I'm to say is because this 0:06:01.279 --> 0:06:06.360 has set off this entire chain reaction of market crashes. 0:06:08.000 --> 0:06:11.160 And we'll talk about the cryptocurrency space, but that's where 0:06:11.160 --> 0:06:15.640 it started. And the reason why is because when when 0:06:15.680 --> 0:06:19.600 the FED puts more dollars into the ecosystem, things take off, 0:06:19.680 --> 0:06:24.400 and when they suck them out, everything crashes. Some things 0:06:24.400 --> 0:06:27.359 are more susceptible to others. So the more riskier the 0:06:27.440 --> 0:06:32.480 assets they go up faster, they crash faster. The more old, secure, 0:06:32.640 --> 0:06:36.120 stable assets go up less and slower, and they also 0:06:36.200 --> 0:06:40.680 fall less and slower. The problem that we also have 0:06:40.880 --> 0:06:44.560 is that as these markets take off so fast, the 0:06:44.640 --> 0:06:47.440 problem is how do we how do we keep up 0:06:47.480 --> 0:06:50.520 with that? You and I as earners, you know we're 0:06:50.560 --> 0:06:53.160 we're working for our wages, we're trying to save them. 0:06:53.320 --> 0:06:55.599 But prices are going up so fast. We're getting priced 0:06:55.600 --> 0:06:58.080 out of homes, we're getting priced out of the cars 0:06:58.120 --> 0:06:59.839 we want to buy. We can't go out to eat 0:06:59.920 --> 0:07:02.920 or take vacations anymore. How do we keep up with that? 0:07:03.000 --> 0:07:05.040 And so in order to keep up with that, we 0:07:05.120 --> 0:07:07.400 have to also take on more risk, and then we 0:07:07.440 --> 0:07:10.760 start using things like leverage. So a lot of people 0:07:10.920 --> 0:07:16.160 were leveraging their assets, and that looks really good when 0:07:16.200 --> 0:07:19.400 things are going really good and you grow much faster. 0:07:20.080 --> 0:07:24.160 But then when things go bad, unfortunately, you unravel much faster. 0:07:24.240 --> 0:07:27.240 And so what we saw is in the cryptocurrency space, 0:07:27.400 --> 0:07:35.240 in the financial space, founders, investors, etcetera. Used massive amounts 0:07:35.280 --> 0:07:37.360 of leverage in order to grow, and so they look 0:07:37.360 --> 0:07:40.480 like geniuses. They look they looked amazing, Like Sam Bankman 0:07:40.520 --> 0:07:43.920 freed from ft X. Within three years, he built this 0:07:44.000 --> 0:07:47.560 thirty million dollar company because he took the most risk, 0:07:47.720 --> 0:07:50.280 He gambled the most, he used the most leverage. He'd 0:07:50.320 --> 0:07:54.640 looked like a genius until everything came crumbling down. And 0:07:54.680 --> 0:07:58.120 that's exactly what happened. So we saw in UM about 0:07:58.200 --> 0:08:01.120 May of two thousand twenty two, after things had been 0:08:01.200 --> 0:08:05.240 starting to wind down, we saw potentially maybe the first 0:08:05.520 --> 0:08:08.000 really really really big domino to go down, which was 0:08:08.000 --> 0:08:10.160 a stable coin, terror Luna. We've covered it at length. 0:08:10.280 --> 0:08:12.240 If you want to figure that out, go back into 0:08:12.280 --> 0:08:14.320 the archives back into about May and you can see 0:08:14.360 --> 0:08:17.880 me talking about that. But as this algorithmic stable coin 0:08:18.400 --> 0:08:20.640 which was never going to work, I talked about it 0:08:20.640 --> 0:08:23.360 extensively before all pegs are meant to be broken, and 0:08:23.400 --> 0:08:25.120 so of course it was going to come down. It 0:08:25.280 --> 0:08:28.440 just needed the liquidity, it needed the right environment to 0:08:28.440 --> 0:08:30.840 come down, and that's what happened, which then brought down 0:08:30.880 --> 0:08:33.320 a whole chain reaction. Like I said, so we saw 0:08:33.400 --> 0:08:35.920 that come down, and then we saw you know, Tara 0:08:36.040 --> 0:08:38.080 Luna come down, an anchor broto Call come down, and 0:08:38.080 --> 0:08:40.679 then we saw Voyager come down, and then Celsie has 0:08:40.760 --> 0:08:43.120 come down, and on and on and on, and it's 0:08:43.160 --> 0:08:45.680 finally it starts with the smaller ones and then it 0:08:45.800 --> 0:08:48.600 scales up to bigger, bigger, bigger, bigger, bigger, and then 0:08:48.800 --> 0:08:51.000 it's now taken down f t X and now the 0:08:51.000 --> 0:08:54.199 whole world is taking notice. And I believe that it's 0:08:54.240 --> 0:08:57.160 doing two things. It's doing to two big things that 0:08:57.160 --> 0:08:59.360 you need to be aware of. One, it's showing the 0:08:59.400 --> 0:09:03.640 difference is between bitcoin and crypto why people say bitcoin 0:09:03.679 --> 0:09:07.199 not crypto. It's also I believe, going to push off 0:09:07.200 --> 0:09:09.679 a whole wave of regulations that is going to completely 0:09:09.840 --> 0:09:14.480 change the cryptocurrency landscape. And whether you think so or not, 0:09:14.640 --> 0:09:16.600 you need to at least understand where I'm coming from, 0:09:16.679 --> 0:09:19.000 because you need to understand the risks. All Right, So 0:09:19.040 --> 0:09:20.640 I got lots of cover. You don't want to miss 0:09:20.640 --> 0:09:22.400 what I'm gonna be talking about. If you're just tuning in, 0:09:22.440 --> 0:09:26.240 you're listening to the Mark Mo Show talking about how 0:09:26.280 --> 0:09:30.240 this f t x uh fiasco will change things moving forward, 0:09:30.520 --> 0:09:32.400 don't go away. I'm gonna back right back in a minute. 0:09:32.679 --> 0:09:34.600 All right, welcome back. If you're just tuning in, you're 0:09:34.600 --> 0:09:37.680 listening to the Mark Mo Show, We're talking about how 0:09:38.080 --> 0:09:41.480 the Federal Reserve, by tightening the monetary supply, kicked off 0:09:41.520 --> 0:09:45.760 an entire domino effect that's rippled through the financial markets, 0:09:45.800 --> 0:09:49.000 through the cryptocurrency markets, and I believe is going to 0:09:49.240 --> 0:09:52.320 change the face of the cryptocurrency markets as we know it. 0:09:53.080 --> 0:09:56.160 And so let's keep going here. So, as I said, 0:09:56.240 --> 0:09:58.480 we kind of had this domino effect Harry Luna went down, 0:09:58.480 --> 0:10:02.240 which then was Voyager, and then with Celsius and on 0:10:02.280 --> 0:10:05.360 and on and on. It starts small and it gets bigger, bigger, bigger, bigger, bigger, 0:10:05.440 --> 0:10:07.960 and then f t X, which was the savior. F 0:10:08.040 --> 0:10:11.120 t X jumped into build everybody out, and the media 0:10:11.240 --> 0:10:13.360 was painting them as the darlins of the space, the 0:10:13.400 --> 0:10:18.319 savior of the space. They went down, and the reason 0:10:18.360 --> 0:10:21.240 why is because they look like a genius using all 0:10:21.320 --> 0:10:24.680 this leverage. But the leverage is what unwound them. Now 0:10:25.320 --> 0:10:28.640 we have this UM. It's brought it to the forefront. 0:10:28.679 --> 0:10:32.040 It's all over mainstream media, it's on every single news outlet. 0:10:32.040 --> 0:10:35.920 I've talked about it extensively here. And now it's doing 0:10:35.960 --> 0:10:39.240 two things. So we're gonna talk about one. It's highlighting 0:10:39.400 --> 0:10:44.320 the big, big difference that bitcoin and UM generally cryptocurrencies 0:10:44.360 --> 0:10:46.120 are not really the same thing at all, and so 0:10:46.160 --> 0:10:48.400 people are starting to wake up to that. And then 0:10:48.440 --> 0:10:50.680 the second thing is I believe it's going to really 0:10:50.760 --> 0:10:53.720 push regulations to the forefront and it's going to change 0:10:53.760 --> 0:10:56.560 the face of cryptocurrency as we know it. So let's explain, 0:10:56.920 --> 0:10:59.880 or let's explore these two things that I'm talking about here. 0:11:00.480 --> 0:11:04.120 So the first thing is we'll talk about UM. Why 0:11:04.440 --> 0:11:09.080 you might hear me and other people say bitcoin not cryptocurrency, 0:11:09.120 --> 0:11:13.240 and so we're not saying that bitcoin is not a cryptocurrency, 0:11:13.320 --> 0:11:16.000 but what we're typically saying is when I'm talking about something, 0:11:16.040 --> 0:11:19.760 I'm talking about bitcoin, and it doesn't apply generally to 0:11:19.960 --> 0:11:23.360 all the other twenty thousand cryptocurrencies out there, And so 0:11:23.440 --> 0:11:25.880 what are we talking about? So first of all, what 0:11:26.040 --> 0:11:33.160 is crypto currency? Well, crypto being short for cryptography, all right, 0:11:33.520 --> 0:11:36.240 So cryptography is a way to encrypt things, a way 0:11:36.280 --> 0:11:39.719 to secure things. Right. So, up until I believe the nineties, 0:11:39.800 --> 0:11:44.240 cryptography was illegal. The United States said it was banned. 0:11:44.280 --> 0:11:47.920 It wasn't allowed to be exported under what they considered munition. 0:11:48.040 --> 0:11:51.800 So it was considered like a security um US security 0:11:52.960 --> 0:11:56.360 breach if we would ship that overseas, and so that 0:11:56.400 --> 0:11:58.600 went all the way to the Supreme Court. I believe 0:11:58.640 --> 0:12:02.040 it was under a case um by P G. P. 0:12:02.040 --> 0:12:05.520 Pretty good. Um, I forget the guy's name. I didn't 0:12:05.559 --> 0:12:07.600 prepare this part. I'm talking off the top of my head. 0:12:07.640 --> 0:12:11.160 But basically they said, hey, this is cryptography. The the 0:12:11.760 --> 0:12:15.680 the Department of Justice brought this suit against him and 0:12:15.720 --> 0:12:18.199 it went all the way to Supreme Court. And when 0:12:18.200 --> 0:12:20.480 he went to the Supreme Court, he had printed out 0:12:20.559 --> 0:12:23.640 the code. The code is software, uh, and they printed 0:12:23.640 --> 0:12:25.440 it out on paper and then they brought like a 0:12:25.480 --> 0:12:27.640 stack of paper and put it on the desk, and 0:12:27.679 --> 0:12:30.960 the Supreme Court's like, well, that's speech, and so that's 0:12:31.000 --> 0:12:34.240 protected under free speech. And so cryptography has a sense 0:12:34.280 --> 0:12:38.680 flourished since then, and bitcoin was this new technological revolution 0:12:38.679 --> 0:12:43.400 which used cryptography to secure the transactions. So we can 0:12:43.400 --> 0:12:47.880 secure our private keys, we can secure our bitcoin by cryptography, 0:12:47.920 --> 0:12:50.360 and that way, unless I have the key, no one 0:12:50.400 --> 0:12:52.320 else can get access to it. So when you hear 0:12:52.360 --> 0:12:54.720 about like you know, the government is going to seize 0:12:54.720 --> 0:12:58.800 your bitcoin, um, they can't, um not if it's not 0:12:58.880 --> 0:13:01.400 unless they can get a hold of your key, your 0:13:01.440 --> 0:13:04.600 private key, because it's cryptographically scared. So then you call 0:13:04.640 --> 0:13:08.880 it well cryptography or crypto and then currency. So bitcoin 0:13:09.480 --> 0:13:12.079 is a lot of things, one of which maybe the 0:13:12.160 --> 0:13:15.000 killer application of it is to kind of reinvent money. 0:13:15.200 --> 0:13:17.480 And so you take money or coins and then you 0:13:17.480 --> 0:13:21.800 have cryptography, you get cryptocurrency. Now there's twenty thousand other 0:13:21.960 --> 0:13:26.640 so called cryptocurrencies um, and maybe they use some form 0:13:26.720 --> 0:13:30.079 of cryptography, but they're not all meant to be currencies. 0:13:30.280 --> 0:13:33.240 So first of all, there's a big difference there. But 0:13:33.320 --> 0:13:37.320 like I said, we're typically saying crypto or bitcoin, and 0:13:37.320 --> 0:13:40.400 we're talking about bitcoins specifically and not crypto or cryptocurrency. 0:13:40.480 --> 0:13:43.320 And so let's dig in a little bit more into that. 0:13:43.440 --> 0:13:47.680 So the first thing is that bitcoin is, like I said, 0:13:47.679 --> 0:13:50.920 it was a new new invention, a technological revolution that 0:13:51.120 --> 0:13:55.160 gave us a big, big breakthrough. And the breakthrough was 0:13:55.520 --> 0:14:02.080 instead of having centralized control centralized databases, we now have decentralized. 0:14:02.120 --> 0:14:06.040 And so as the Internet grew um from the nineties um, 0:14:06.360 --> 0:14:08.199 it was very hard to get on the Internet at first, 0:14:08.400 --> 0:14:10.640 and then in the late nineties and the early two thousands, 0:14:10.679 --> 0:14:12.559 when I started my first Internet business, it was very 0:14:12.559 --> 0:14:14.760 hard to start Internet business because you had to run 0:14:14.800 --> 0:14:17.360 your own server. And so the Internet wasn't really going 0:14:17.400 --> 0:14:19.120 to scale if it was that hard where everyone had 0:14:19.120 --> 0:14:20.520 to set up their own server. And so we started 0:14:20.520 --> 0:14:23.960 getting these cloud hosting services and so then we have 0:14:24.040 --> 0:14:27.280 Amazon Web Services and Google, etcetera. Which allowed us discovered 0:14:27.280 --> 0:14:29.640 the quickly, but it created the centralized databases. On top 0:14:29.680 --> 0:14:31.720 of it. You have these companies like Experience, which is 0:14:31.720 --> 0:14:35.360 the credit reporting agency that runs their own database, or Facebook, etcetera. 0:14:36.040 --> 0:14:39.080 But the problem is is they control those databases. Your 0:14:39.120 --> 0:14:42.360 bank JP, Morgan Wells, Fargo, Bank of America, etcetera. Runs 0:14:42.360 --> 0:14:45.400 a database that keeps track of all their customers accounts 0:14:45.400 --> 0:14:48.480 and deposits, right and so um those are essentially now 0:14:48.560 --> 0:14:51.200 if Wells Fargo wanted to, they could say, well, Mark, 0:14:51.280 --> 0:14:53.480 you don't have money in your accounts anymore, or the 0:14:53.600 --> 0:14:55.160 u S could just see, you know, tell them to 0:14:55.360 --> 0:14:58.240 freeze your account. Um, it happens all the time. When 0:14:58.280 --> 0:15:00.520 you don't pay your taxes, for example, it could freeze 0:15:00.520 --> 0:15:02.520 your accounts or just take money out of your accounts. 0:15:02.800 --> 0:15:05.200 And so whoever controls that database or we'll call it 0:15:05.280 --> 0:15:08.640 a ledger, has control. But what bitcoin did is that 0:15:08.680 --> 0:15:11.760 allowed us to have a decentralized database, or have thousands 0:15:11.880 --> 0:15:14.720 or hundreds of thousands or millions of databases that so 0:15:14.920 --> 0:15:18.520 each person could control their own database as opposed to 0:15:18.920 --> 0:15:25.600 one single entity. That was the revolution d centralization, all right. 0:15:26.480 --> 0:15:28.880 The problem is that that was the big trend, that 0:15:28.960 --> 0:15:31.160 was the big breakthrough, That was the big revolution, and 0:15:31.520 --> 0:15:33.880 a lot of these other cryptocurrencies have jumped on to 0:15:33.960 --> 0:15:36.960 try to pretend like they have that, but they haven't 0:15:36.960 --> 0:15:40.800 been able to achieve it. All right, So that is 0:15:41.000 --> 0:15:43.320 the big difference here. Now, some of the big differences 0:15:44.480 --> 0:15:46.640 that we would say would be um sort of like 0:15:46.720 --> 0:15:49.760 I used the illustration on my YouTube channel um talking 0:15:49.800 --> 0:15:54.240 about how just because things sound similar doesn't mean they are. 0:15:54.880 --> 0:15:57.800 So we could look at I used the example of 0:15:57.840 --> 0:16:00.760 like beyond meat, which was this big darl and it 0:16:00.840 --> 0:16:04.120 was gonna gonna make meat healthier, but instead they have 0:16:04.200 --> 0:16:07.000 like twenty or thirty ingredients, which many of them are 0:16:07.120 --> 0:16:09.800 very very unhealthy for you, containing heavy amounts of steed 0:16:09.800 --> 0:16:12.400 oils and things like that. And so you might say, well, 0:16:12.400 --> 0:16:15.760 beyond meat is like meat, but meat is just supposed 0:16:15.760 --> 0:16:18.040 to be like from an animal, just one ingredient, right, 0:16:18.080 --> 0:16:21.920 it's just a cow, So beyond meat isn't really meat. 0:16:22.960 --> 0:16:26.000 We might also say gold. Gold is a form of metal, 0:16:26.720 --> 0:16:29.880 but it's a lot different as chemical different chemical mineral 0:16:30.680 --> 0:16:38.560 breakdown of aluminum or steel or cromaley or platinum, pladium, silver, 0:16:38.640 --> 0:16:43.120 et cetera. Right, so gold, they're all metals, but it's different. 0:16:43.520 --> 0:16:47.280 And so bitcoin is just different than all the other cryptocurrencies. 0:16:47.280 --> 0:16:50.200 One of the big things is that bitcoin was created. 0:16:50.320 --> 0:16:52.560 It's a piece of as a piece of software. The 0:16:52.600 --> 0:16:56.440 software was released into the public for people to go run, 0:16:58.080 --> 0:17:02.600 and the bitcoin was created by a single issuer. As 0:17:02.640 --> 0:17:06.800 anybody can go get a computer plug into the software 0:17:06.800 --> 0:17:10.600 and can create bitcoin for themselves today just like they 0:17:10.600 --> 0:17:14.040 could from the very beginning. Unlike most of the cryptocurrencies 0:17:14.040 --> 0:17:17.960 and including your favorite top big ones, the number two ethereum, 0:17:18.000 --> 0:17:22.560 you know, top ten cardano. Uh, those coins were created 0:17:22.600 --> 0:17:26.280 by a group of founders who enriched themselves and kept 0:17:26.280 --> 0:17:30.320 a good majority of those coins, and then they released 0:17:30.320 --> 0:17:32.119 it open to the public. All right. So that's a 0:17:32.119 --> 0:17:34.959 big difference. Um, there was no Bitcoin had no issuer. 0:17:35.080 --> 0:17:38.400 So it's that's why the SEC considers it a commodity, 0:17:38.440 --> 0:17:40.560 which will get more into the regulatory part and a 0:17:40.560 --> 0:17:43.240 little bit all right. Now, the other thing that we 0:17:43.240 --> 0:17:46.680 need to understand that makes bitcoin a lot different than 0:17:46.720 --> 0:17:51.560 the other twenty thousand cryptocurrencies is what backs it? All right. 0:17:51.840 --> 0:17:53.960 A lot of people will say, well, what backs cryptocurrency? 0:17:54.000 --> 0:17:56.240 What gives it value? So I want to talk about that. 0:17:56.320 --> 0:17:58.040 So I want to go through more. If you're just 0:17:58.080 --> 0:17:59.920 tuning in you listening to the markma Show, or talk 0:18:00.200 --> 0:18:02.320 about the ft X blow up and how it's going 0:18:02.320 --> 0:18:05.760 to change the cryptocurrency space overall, I'm highlighting some of 0:18:05.760 --> 0:18:07.840 the difference between bitcoin and the rest of cryptocurrency, and 0:18:07.880 --> 0:18:10.600 we're gonna talk about the regulations and how the whole 0:18:10.600 --> 0:18:12.800 industry will change. I got a lot to cover. You 0:18:12.800 --> 0:18:14.119 don't want to miss it. I'll be back with more 0:18:14.160 --> 0:18:16.560 in a minute, so don't go away, all right, Welcome back. 0:18:16.600 --> 0:18:18.200 If you're just tune in, you're listening to the Mark 0:18:18.320 --> 0:18:22.480 Mo Show. We're talking about how the financial system started 0:18:22.480 --> 0:18:25.080 melting down. It created a collapse in the crypto industry. 0:18:25.359 --> 0:18:27.240 The collapse of ft X brought a bunch of things 0:18:27.240 --> 0:18:30.640 to the forefront, and how it's changing the cryptocurrency space, 0:18:31.600 --> 0:18:33.760 probably for good. All right. So I'm highlighting some of 0:18:33.760 --> 0:18:36.080 the differences between bitcoin and crypto and then we'll talk 0:18:36.080 --> 0:18:37.840 about how the f t X and what I think 0:18:37.880 --> 0:18:41.840 regulations will come and how that will change. So, uh, 0:18:42.040 --> 0:18:44.120 going back to bitcoin, what we're talking about, how it's 0:18:44.160 --> 0:18:47.760 just different, and the reason why it's different is because 0:18:48.040 --> 0:18:51.120 or understanding why it's different leads to the next part, 0:18:51.160 --> 0:18:56.080 which is the regulatory side of things. And so commodities 0:18:56.960 --> 0:19:00.960 are typically things brought from the ground that could be 0:19:01.760 --> 0:19:04.040 brought from the ground anywhere in the world and they 0:19:04.040 --> 0:19:06.800 would all be fungible. So if I bought a piece 0:19:06.840 --> 0:19:11.600 of dirt in Iowa or in Kenya, Africa, or in 0:19:11.640 --> 0:19:15.280 the Ukraine. With that dirt, I could grow wheat and 0:19:15.359 --> 0:19:17.320 didn't matter where I grow that wheat in the world, 0:19:17.440 --> 0:19:21.040 wheat is wheat, So anyone can go buy dirt, grow wheat, 0:19:21.119 --> 0:19:22.920 and wheat the same. I could go buy a piece 0:19:22.960 --> 0:19:25.640 of dirt, and I could mine for gold in Mexico 0:19:26.200 --> 0:19:29.399 or in Africa, and doesn't matter. The gold is still gold. 0:19:29.440 --> 0:19:32.040 I could buy a piece of dirt and and drill 0:19:32.119 --> 0:19:35.199 for oil, whether in California or Saudi Arabia, and the 0:19:35.200 --> 0:19:38.119 oil's oil. And anybody can go buy the land and 0:19:38.240 --> 0:19:39.840 mine for the gold or the oil, or for the 0:19:40.000 --> 0:19:41.800 grow the wheat, and it's all the same. And so 0:19:41.840 --> 0:19:44.920 bitcoin is the same, where anybody can go buy a computer, 0:19:45.200 --> 0:19:48.280 plug it into the network, and they could bring bitcoin 0:19:48.359 --> 0:19:51.600 into the ecosystem, so it's a commodity. There's no central 0:19:51.640 --> 0:19:54.520 issue where nobody issued oil, wheat, or gold, and nobody's 0:19:54.600 --> 0:20:00.600 issuing bitcoin either. The difference with other cryptocurrencies is that 0:20:00.800 --> 0:20:05.080 they do have an issuer. So your your favorite cryptocurrencies 0:20:05.119 --> 0:20:08.240 have all been pre mind, So about seventy of all 0:20:08.280 --> 0:20:10.480 the ethereum and existence was pre mind. So when they 0:20:10.480 --> 0:20:12.639 created it, they created the tokens and gave them to 0:20:12.720 --> 0:20:18.360 themselves and their investors, which was themselves, Um, yes, Cardano, yes, 0:20:18.600 --> 0:20:21.600 x l M yes, Ripple, they were all pre mind 0:20:21.640 --> 0:20:24.800 Ripple x RP was a hundred percent. So a hundred 0:20:24.800 --> 0:20:28.200 percent of the Ripple was created by the team that 0:20:28.280 --> 0:20:31.960 invented it and used to make themselves filthy, filthy rich. 0:20:32.520 --> 0:20:34.480 And so that's one of the big differences that you 0:20:34.520 --> 0:20:38.639 have to understand now when it comes to these regulations. 0:20:38.640 --> 0:20:40.879 Like I said, uh f t X kind of sat 0:20:41.000 --> 0:20:45.800 in this kind of they think it's a gray area. 0:20:47.160 --> 0:20:49.320 I don't think it's a gray area. There's this gray area. 0:20:49.400 --> 0:20:52.360 The SEC is like, well, it's a it's a Bahamas corporation. Well, 0:20:52.400 --> 0:20:55.639 they were founded in the US. They transferred to the 0:20:55.640 --> 0:20:58.680 Bahamas their U. S citizens, and they built U. S 0:20:58.720 --> 0:21:01.359 citizens out of money. It's never really stopped the US 0:21:01.440 --> 0:21:04.760 from reaching their long arm of the law and regulated anyway. 0:21:05.359 --> 0:21:06.960 So maybe there's a little bit of a gray area. 0:21:07.000 --> 0:21:11.760 But I think because we're talking about tens of billions 0:21:11.760 --> 0:21:14.280 of dollars that have been lost, we're talking about millions 0:21:14.280 --> 0:21:17.719 of Americans that have lost some of them lost everything. 0:21:18.560 --> 0:21:23.160 It's really bringing this conversation of regulations to the forefront 0:21:24.840 --> 0:21:28.760 the SEC Security Exchange Commission. So there's two regulatory bodies 0:21:28.800 --> 0:21:30.760 really that kind of fall into this. There's the SEC 0:21:30.960 --> 0:21:35.800 Securities Exchange Commission, which is supposed to regulate securities as 0:21:35.800 --> 0:21:39.719 in their name, securities exchange, so the exchanging of securities, 0:21:39.720 --> 0:21:43.520 issuing and exchanging of securities. And then there's the CFTC, 0:21:43.600 --> 0:21:47.520 which is the commodities futures all right, So some of 0:21:47.560 --> 0:21:51.560 these assets kind of fall between here. So Bitcoin has 0:21:51.640 --> 0:21:55.160 been the only digital asset out of the twenty thousand 0:21:55.280 --> 0:21:58.400 or so cryptocurrencies, it's been the only one that has 0:21:58.440 --> 0:22:02.240 been declared a commodity. And that's because, as I said, 0:22:02.240 --> 0:22:04.960