1 00:00:02,080 --> 00:00:04,120 Speaker 1: All right, welcome to another episode of The Mark Moss 2 00:00:04,120 --> 00:00:06,880 Speaker 1: Show where we talk about bitcoin cryptocurrencies. We talked about 3 00:00:06,880 --> 00:00:10,479 Speaker 1: the decentralized revolution. Given you the play by play so 4 00:00:10,560 --> 00:00:14,240 Speaker 1: you can understand what's going on from a political, financial, 5 00:00:14,360 --> 00:00:17,319 Speaker 1: and a technological standpoint. You know, if you're only looking 6 00:00:17,320 --> 00:00:20,960 Speaker 1: at one or the other, sometimes it gets a little murky, 7 00:00:21,239 --> 00:00:23,439 Speaker 1: But when you look at them all together, things start 8 00:00:23,520 --> 00:00:27,200 Speaker 1: to get a lot more clear. And it's pretty evident 9 00:00:27,440 --> 00:00:30,760 Speaker 1: right now the financial system that we have today is failing. 10 00:00:31,440 --> 00:00:34,319 Speaker 1: It cannot go on much longer. Now I say that, 11 00:00:34,800 --> 00:00:37,000 Speaker 1: but I've been saying that for a long time. It 12 00:00:37,080 --> 00:00:39,559 Speaker 1: can't go on much longer. How much is much longer, Well, 13 00:00:39,600 --> 00:00:42,960 Speaker 1: we don't really know. Um. A smart person told me 14 00:00:43,000 --> 00:00:44,360 Speaker 1: that I can tell you what's going to happen, or 15 00:00:44,400 --> 00:00:45,800 Speaker 1: I can tell you when, but I can't tell you 16 00:00:45,880 --> 00:00:48,400 Speaker 1: both together. And so that's kind of that's kind of 17 00:00:48,440 --> 00:00:51,159 Speaker 1: where we're at. We can see what's inevitably happening, and 18 00:00:51,200 --> 00:00:53,040 Speaker 1: we can see that we're getting closer and closer and 19 00:00:53,080 --> 00:00:56,360 Speaker 1: closer to that. What that final event is we don't know, 20 00:00:56,440 --> 00:00:59,639 Speaker 1: but most analysts would have you believe that we are 21 00:00:59,720 --> 00:01:01,880 Speaker 1: getting very close to that, and we can see the 22 00:01:02,000 --> 00:01:06,720 Speaker 1: signs all around us. So, for example, this week we 23 00:01:06,840 --> 00:01:09,800 Speaker 1: got the latest numbers from the United States government of 24 00:01:09,840 --> 00:01:12,920 Speaker 1: the inflation numbers or what they call inflation, which is 25 00:01:12,959 --> 00:01:17,080 Speaker 1: the consumer price index UM. It's called c p I. 26 00:01:17,080 --> 00:01:19,959 Speaker 1: I like to call it cp LIE. And the reason 27 00:01:19,959 --> 00:01:22,040 Speaker 1: why I call it cp LIE is because the way 28 00:01:22,080 --> 00:01:24,959 Speaker 1: they use this number, they use this number for manipulation. 29 00:01:25,000 --> 00:01:28,039 Speaker 1: And so the CPI, the price index, is a basket 30 00:01:28,040 --> 00:01:30,200 Speaker 1: of goods. If I went to the grocery store and 31 00:01:30,200 --> 00:01:34,560 Speaker 1: I bought milk, cheese, steak, bread, and then every year 32 00:01:34,600 --> 00:01:36,640 Speaker 1: I go back to the same store and I buy 33 00:01:36,640 --> 00:01:38,920 Speaker 1: the same basket, and they would track the progress of 34 00:01:38,959 --> 00:01:41,880 Speaker 1: that price. The problem is a couple of things. One, 35 00:01:42,200 --> 00:01:45,000 Speaker 1: they continue to change the basket, so we're not buying 36 00:01:45,040 --> 00:01:47,039 Speaker 1: the same basket of goods over and over. So their 37 00:01:47,080 --> 00:01:50,760 Speaker 1: substituting things in the basket. Hey, you used to buy steak, um, 38 00:01:50,840 --> 00:01:54,360 Speaker 1: Now let's put hamburger meat. Hey used to buy hamger meat, 39 00:01:54,400 --> 00:01:57,440 Speaker 1: Now let's put spam or whatever. And so they change 40 00:01:57,440 --> 00:01:59,760 Speaker 1: what's in my basket. And then they even just start 41 00:01:59,800 --> 00:02:03,080 Speaker 1: room moving things. And then they go into straight out lies. 42 00:02:03,160 --> 00:02:06,520 Speaker 1: So for example, they tell you that the shelter went 43 00:02:06,600 --> 00:02:08,760 Speaker 1: up by five percent, but in reality, nation wide it 44 00:02:08,800 --> 00:02:11,919 Speaker 1: went up by and of course that makes up about 45 00:02:13,160 --> 00:02:15,919 Speaker 1: of the basket. So when they change the number that big, 46 00:02:16,080 --> 00:02:19,120 Speaker 1: it changed the numbers. Okay, that being said, the second reason, 47 00:02:19,280 --> 00:02:22,040 Speaker 1: the second problem we have a CPI is that CPI 48 00:02:22,800 --> 00:02:27,600 Speaker 1: UM it tries to measure the prices, but we deal 49 00:02:27,639 --> 00:02:30,320 Speaker 1: with prices, we interact with prices differently. So for example, 50 00:02:30,520 --> 00:02:32,720 Speaker 1: if you're renting a home and I think Glendale, Arizona, 51 00:02:32,760 --> 00:02:35,240 Speaker 1: the rent went up by about a hundred and eight percent. 52 00:02:35,960 --> 00:02:39,160 Speaker 1: If you're renting a home in like Philadelphia, rents went down, 53 00:02:39,880 --> 00:02:42,359 Speaker 1: so for somebody there the CPI went down. Somewhere else 54 00:02:42,360 --> 00:02:46,880 Speaker 1: the CPI went um. If you're buying a home in 55 00:02:47,280 --> 00:02:50,160 Speaker 1: Lake and Lake Travis and outside of Austin, Texas, it 56 00:02:50,200 --> 00:02:53,519 Speaker 1: went up a hundred and fifty percent. Some markets, I 57 00:02:53,560 --> 00:02:55,600 Speaker 1: don't know which ones, I'm sure probably went up almost 58 00:02:55,639 --> 00:02:58,880 Speaker 1: none at all. So inflation affects us differently. But inflation 59 00:02:59,000 --> 00:03:01,880 Speaker 1: is what they're calling inflation, Really the price inflation, the 60 00:03:01,919 --> 00:03:04,480 Speaker 1: price is going up of goods and services and assets. 61 00:03:04,919 --> 00:03:07,800 Speaker 1: Really the inflation is the money supply going up. The 62 00:03:07,840 --> 00:03:10,360 Speaker 1: money supply goes up, and what happens with the prices 63 00:03:10,440 --> 00:03:12,680 Speaker 1: is the result of that money supply going up, and 64 00:03:12,720 --> 00:03:15,120 Speaker 1: so the money supply goes up. The last two years 65 00:03:15,120 --> 00:03:20,040 Speaker 1: went up, and real estate went up on average, used 66 00:03:20,080 --> 00:03:24,120 Speaker 1: cars went up on average. A couple of things. Now 67 00:03:24,160 --> 00:03:26,720 Speaker 1: back to the actual report, we saw that the CPI 68 00:03:26,880 --> 00:03:30,760 Speaker 1: rises eight point three percent year on year, and it's 69 00:03:30,800 --> 00:03:35,400 Speaker 1: the first growth slowdown since August. So we've been seeing 70 00:03:35,440 --> 00:03:38,160 Speaker 1: cp I go faster faster, faster faster, and now it's 71 00:03:38,160 --> 00:03:41,840 Speaker 1: slowing down. So we went from eight percent to eight 72 00:03:41,840 --> 00:03:45,960 Speaker 1: point five to eight point three. So it came back 73 00:03:45,960 --> 00:03:47,839 Speaker 1: down from eight to eight point five day point three, 74 00:03:48,480 --> 00:03:51,480 Speaker 1: and everybody's celebrating. A couple of things about that that 75 00:03:51,560 --> 00:03:56,320 Speaker 1: are pretty crazy. Um. First of all, they have cp 76 00:03:56,440 --> 00:03:59,920 Speaker 1: I and then they have core cp I. Course, CPI 77 00:04:00,040 --> 00:04:03,360 Speaker 1: it takes out things that you and I need to live, 78 00:04:03,560 --> 00:04:07,640 Speaker 1: like food and energy. Actually the two most important things 79 00:04:07,640 --> 00:04:09,400 Speaker 1: that we need to live our food and energy, and 80 00:04:09,440 --> 00:04:11,720 Speaker 1: they take those out of the basket for some reason. 81 00:04:12,320 --> 00:04:16,000 Speaker 1: That's pretty crazy. UM. But what I want, what I 82 00:04:16,040 --> 00:04:18,760 Speaker 1: want to point to is that um, as this inflation 83 00:04:18,839 --> 00:04:21,680 Speaker 1: has slowed down from eight to eight point five to 84 00:04:21,800 --> 00:04:24,880 Speaker 1: eight point three, what that means is the price of 85 00:04:24,920 --> 00:04:27,760 Speaker 1: everything has gone up. You know this. It's twice as 86 00:04:27,839 --> 00:04:29,560 Speaker 1: much to fill up your gas tank, it's twice as 87 00:04:29,600 --> 00:04:31,000 Speaker 1: much to get food for your house, it's twice as 88 00:04:31,080 --> 00:04:35,479 Speaker 1: much to buy airline tickets, et cetera. When inflation goes 89 00:04:35,520 --> 00:04:37,640 Speaker 1: from eight point five all the way down to eight 90 00:04:37,680 --> 00:04:41,039 Speaker 1: point three, it doesn't mean prices are coming back down. 91 00:04:41,880 --> 00:04:45,279 Speaker 1: What that means is that they're still going up, just 92 00:04:45,440 --> 00:04:48,160 Speaker 1: at a slower rate. So they were going up by 93 00:04:48,160 --> 00:04:50,919 Speaker 1: eight point five percent. Now they're still going up, but 94 00:04:51,000 --> 00:04:54,960 Speaker 1: only at eight So, Um, it's not a reversal. It's 95 00:04:54,960 --> 00:04:57,479 Speaker 1: not like things will get cheaper. It's not like things 96 00:04:57,480 --> 00:04:59,640 Speaker 1: will get easier. It's not like you're purchasing power will 97 00:04:59,640 --> 00:05:02,919 Speaker 1: get better. It's just that you're losing your purchasing power 98 00:05:02,960 --> 00:05:06,000 Speaker 1: a little bit slower today than you were yesterday. That's 99 00:05:06,000 --> 00:05:11,360 Speaker 1: what that means. It's crazy now because of this. Now, Um, 100 00:05:11,400 --> 00:05:15,360 Speaker 1: the economists are like, well, uh, maybe maybe it's getting 101 00:05:15,400 --> 00:05:17,680 Speaker 1: a little bit better. Um, maybe we don't need to 102 00:05:17,680 --> 00:05:20,039 Speaker 1: be as harsh and as drastic on our cutbacks. So 103 00:05:20,160 --> 00:05:23,320 Speaker 1: the to the Federal Reserve has been trying to slow 104 00:05:23,440 --> 00:05:27,400 Speaker 1: down inflation by one raising interest rates. When they raise 105 00:05:27,440 --> 00:05:31,760 Speaker 1: interest rates, less people borrow money. If you're not aware, 106 00:05:31,880 --> 00:05:34,239 Speaker 1: we talk about money printing all the time. The FED, 107 00:05:34,520 --> 00:05:36,640 Speaker 1: the government printed money. It's not really how it works. 108 00:05:37,279 --> 00:05:40,920 Speaker 1: Over of transactions are digital. Nobody is using really paper money. 109 00:05:40,920 --> 00:05:43,479 Speaker 1: It's not really printing anything. And the Federal reserved by 110 00:05:43,520 --> 00:05:46,200 Speaker 1: itself doesn't even create money. All they do is give 111 00:05:46,279 --> 00:05:49,000 Speaker 1: reserves to the banks, and then the banks with those 112 00:05:49,040 --> 00:05:53,359 Speaker 1: reserves can create money into existence by issuing debt. So 113 00:05:53,400 --> 00:05:55,000 Speaker 1: when you go to borrow money for a house, a 114 00:05:55,080 --> 00:05:57,960 Speaker 1: car on r V, a boat, etcetera, that money is 115 00:05:58,000 --> 00:06:02,360 Speaker 1: being created into existence by debt. So when the interest 116 00:06:02,440 --> 00:06:05,840 Speaker 1: rates go up, you borrow less, which means less money 117 00:06:05,920 --> 00:06:08,400 Speaker 1: is being created into existence. Um. So the FED has 118 00:06:08,400 --> 00:06:10,200 Speaker 1: been pretty aggressive on raising rates, some of the most 119 00:06:10,240 --> 00:06:12,800 Speaker 1: aggressive we've seen them be in several years. And they 120 00:06:12,880 --> 00:06:16,599 Speaker 1: raised half a basis point, um another half a basis point, 121 00:06:17,000 --> 00:06:20,880 Speaker 1: and many still believe they're going to continue raising rates. Um. 122 00:06:20,920 --> 00:06:24,360 Speaker 1: But the markets are completely melting down and they may 123 00:06:24,400 --> 00:06:27,520 Speaker 1: have to be reversing course here pretty quickly. Of course, 124 00:06:27,560 --> 00:06:30,800 Speaker 1: might talk about the markets melting down. Everything is melting down. 125 00:06:30,880 --> 00:06:36,120 Speaker 1: We've seen, um, the Nasdaq is down, the Dow Jones 126 00:06:36,200 --> 00:06:40,280 Speaker 1: is down, the SMP five is down, UM the big 127 00:06:40,360 --> 00:06:45,520 Speaker 1: Darlen's are you know, Tesla's down, um coin bases down, UM, 128 00:06:45,560 --> 00:06:48,960 Speaker 1: you name it. Everything has come down. The crypto markets 129 00:06:48,960 --> 00:06:51,720 Speaker 1: are not immune to this either. There's a complete blood bath. 130 00:06:52,120 --> 00:06:54,800 Speaker 1: A lot of it's due to this uh failing UM 131 00:06:54,800 --> 00:06:58,200 Speaker 1: stable coin protocol U s T, which I've been talking 132 00:06:58,240 --> 00:07:01,600 Speaker 1: about quite a bit. I'm sure you caught that, and 133 00:07:01,640 --> 00:07:05,960 Speaker 1: that's bringing the entire market cap down. Considering how bad 134 00:07:06,000 --> 00:07:12,640 Speaker 1: things are. Dare I say that maybe Bitcoin is holding on? Okay, 135 00:07:13,480 --> 00:07:14,960 Speaker 1: I know it's hard to say that at a time 136 00:07:15,000 --> 00:07:17,800 Speaker 1: like this, when we have this complete melt down happening, 137 00:07:18,160 --> 00:07:22,120 Speaker 1: but maybe it's not doing UM so bad. So we 138 00:07:22,160 --> 00:07:26,200 Speaker 1: can see like Tera Lunas down in seven days, eight 139 00:07:26,280 --> 00:07:30,560 Speaker 1: coins down, sixty UM thor it's a big one avalanche, 140 00:07:31,920 --> 00:07:35,760 Speaker 1: UM decentral and you know so so Lana, the big 141 00:07:35,840 --> 00:07:39,400 Speaker 1: Darly and um so a lot of these are really 142 00:07:39,440 --> 00:07:43,720 Speaker 1: really really down uh forty fifty even sixty percent just 143 00:07:43,800 --> 00:07:47,720 Speaker 1: in the last seven days, which is pretty insane. But 144 00:07:47,800 --> 00:07:50,680 Speaker 1: we can see, you know, Bitcoin seems to be somewhat 145 00:07:50,720 --> 00:07:54,840 Speaker 1: holding on in light of that, UM, you know, considering 146 00:07:54,880 --> 00:07:59,800 Speaker 1: it's not a stable coin. It's down about so while 147 00:07:59,880 --> 00:08:03,640 Speaker 1: the entire or some of the biggest cryptocurrencies are down 148 00:08:03,720 --> 00:08:07,960 Speaker 1: by fifty sixty and even sevent bitcoins holding on at 149 00:08:07,960 --> 00:08:13,920 Speaker 1: about drop, which, um, you know, doesn't make it the best, 150 00:08:14,520 --> 00:08:17,360 Speaker 1: but it's still dropping down. We can see ethereums down, 151 00:08:17,360 --> 00:08:23,840 Speaker 1: overt x, rps down, over cardanos down forty five percent, 152 00:08:24,000 --> 00:08:27,880 Speaker 1: Salona is down fifty five percent, Elon must's favorite, dodge 153 00:08:27,880 --> 00:08:33,560 Speaker 1: coins down, and so Bitcoin holding on not doing too 154 00:08:33,600 --> 00:08:36,800 Speaker 1: bad all in all. And even while all this carnage 155 00:08:36,880 --> 00:08:39,760 Speaker 1: is happening, there's still some bright spots on the horizon. 156 00:08:40,840 --> 00:08:43,600 Speaker 1: We can see another nation is announcing that they're going 157 00:08:43,679 --> 00:08:45,360 Speaker 1: to start buying it. Not another nation, but we saw 158 00:08:45,400 --> 00:08:47,880 Speaker 1: news that Latin America's largest digital bank is going to 159 00:08:47,960 --> 00:08:51,960 Speaker 1: allocate one percent to bitcoin and offer crypto investment services. 160 00:08:52,240 --> 00:08:54,200 Speaker 1: And so here we have the largest digital bank in 161 00:08:54,240 --> 00:08:57,680 Speaker 1: Latin America that's going to start putting their reserves into bitcoin. 162 00:08:58,160 --> 00:09:00,200 Speaker 1: And we've seen through the stable coins melting down that 163 00:09:00,280 --> 00:09:02,559 Speaker 1: bitcoin is a big beneficiary. A lot of people are 164 00:09:02,640 --> 00:09:05,120 Speaker 1: buying bitcoin, and I think now it's still a pretty 165 00:09:05,120 --> 00:09:07,520 Speaker 1: good time to get into bitcoin. Um, you buy when 166 00:09:07,520 --> 00:09:10,280 Speaker 1: there's blood in the street, and that's basically where we're 167 00:09:10,320 --> 00:09:13,240 Speaker 1: at right now. You're listening to the markma Show. We're 168 00:09:13,240 --> 00:09:15,640 Speaker 1: talking about bitcoin and so much more. I got a 169 00:09:15,679 --> 00:09:18,160 Speaker 1: lot more. Don't go away, all right, Welcome back. You're 170 00:09:18,160 --> 00:09:20,360 Speaker 1: listening to the Mark mo Show. We're talking about bitcoin 171 00:09:20,440 --> 00:09:23,760 Speaker 1: and cryptocurrencies and the decentralized revolution. Before the break, we 172 00:09:23,760 --> 00:09:27,600 Speaker 1: were talking about the latest government numbers on inflation cp I, 173 00:09:28,280 --> 00:09:30,840 Speaker 1: what the Central Bank and the federal probably continue to do. 174 00:09:31,160 --> 00:09:33,000 Speaker 1: We're talking about some of the blood bath happening in 175 00:09:33,040 --> 00:09:35,920 Speaker 1: the DeFi protocols because of the terror Luna. I went 176 00:09:36,080 --> 00:09:38,000 Speaker 1: super deep into that in the early segments, so I'm 177 00:09:38,000 --> 00:09:40,280 Speaker 1: not gonna go back deep into that again, Unlesten, if 178 00:09:40,280 --> 00:09:42,840 Speaker 1: you want to go back and check out that archive, um, 179 00:09:42,840 --> 00:09:44,600 Speaker 1: but it's a blood bath in that. And I talked 180 00:09:44,600 --> 00:09:49,120 Speaker 1: about how bitcoin is actually holding up pretty good considering 181 00:09:49,440 --> 00:09:51,679 Speaker 1: what's going on the rest of the market. Most of 182 00:09:51,720 --> 00:09:54,719 Speaker 1: the market is down fifty sixty even sent Bitcoin is 183 00:09:54,760 --> 00:09:58,079 Speaker 1: kind of holding in there about we can see here's 184 00:09:58,120 --> 00:10:01,040 Speaker 1: as terror contagion leads to an eighty percent decline in 185 00:10:01,040 --> 00:10:04,800 Speaker 1: the DeFi protocols associated um with this, and so it's 186 00:10:04,800 --> 00:10:08,319 Speaker 1: just starting to drag everything down. Like I said, I'm 187 00:10:08,320 --> 00:10:10,080 Speaker 1: not gonna go super deep into this. Already a deep 188 00:10:10,080 --> 00:10:12,760 Speaker 1: dive on this. You can go listen to the podcast 189 00:10:12,920 --> 00:10:14,880 Speaker 1: version of this something I Heart Network to search Mark 190 00:10:14,960 --> 00:10:16,800 Speaker 1: Moss podcast or Mark Moss I Heart and you can 191 00:10:16,880 --> 00:10:19,720 Speaker 1: check that out where I really dug in deep to that. UM. 192 00:10:19,760 --> 00:10:21,959 Speaker 1: But what we can see is that there's a lot 193 00:10:21,960 --> 00:10:25,319 Speaker 1: of contagion happening, and I'm afraid that what could happen, 194 00:10:25,559 --> 00:10:28,120 Speaker 1: what's happened with us T could then lead to us 195 00:10:28,440 --> 00:10:31,200 Speaker 1: d T, which is tether, and it could even spread 196 00:10:31,200 --> 00:10:33,480 Speaker 1: to some of the c FI coins like Celsius, because 197 00:10:33,520 --> 00:10:36,680 Speaker 1: I see Selfius Celsius trying to backstop um these and 198 00:10:36,679 --> 00:10:38,400 Speaker 1: it makes me think they have some sort of invested 199 00:10:38,440 --> 00:10:41,640 Speaker 1: interest that so be very very careful of this contagion 200 00:10:41,679 --> 00:10:47,360 Speaker 1: that's that's happening right now. UM. And of course a 201 00:10:47,400 --> 00:10:49,640 Speaker 1: lot of people losing a lot of money, which then 202 00:10:49,760 --> 00:10:54,040 Speaker 1: leads the uh, you know, the government's the regulators to 203 00:10:54,120 --> 00:10:56,920 Speaker 1: do what they do, which is regulate, and we have 204 00:10:57,000 --> 00:11:00,920 Speaker 1: the SEC Security Exchange Commission, and their role is to 205 00:11:01,120 --> 00:11:04,600 Speaker 1: protect customers. Their role is to protect people from this 206 00:11:04,760 --> 00:11:07,040 Speaker 1: very thing. Now I'm not a fan of the SEC. 207 00:11:07,679 --> 00:11:10,440 Speaker 1: I don't think I need protection or you need protection. 208 00:11:10,520 --> 00:11:12,960 Speaker 1: We should all be in a free market that allows 209 00:11:13,040 --> 00:11:16,200 Speaker 1: me to freely choose what I want to decide, what 210 00:11:16,360 --> 00:11:19,960 Speaker 1: risks I want to take, etcetera. UM, And really I'm 211 00:11:19,960 --> 00:11:21,600 Speaker 1: a little bit mad at the SEC because they don't 212 00:11:21,600 --> 00:11:23,280 Speaker 1: do anything to protect you. UM. A lot of times 213 00:11:23,320 --> 00:11:26,839 Speaker 1: what they're doing is actually hurting you. So for example, UM, 214 00:11:26,880 --> 00:11:28,920 Speaker 1: the rich get really rich because they get access to 215 00:11:29,040 --> 00:11:32,199 Speaker 1: really good deals before their public. So for example, UM, 216 00:11:32,280 --> 00:11:38,080 Speaker 1: some famous VC investors UM put like dollars or fifty 217 00:11:38,120 --> 00:11:41,480 Speaker 1: thousand dollars or a hundred thousand dollars into early upstarts 218 00:11:41,480 --> 00:11:46,400 Speaker 1: like Uber and turns into twenty million dollars, fifty million dollars, 219 00:11:46,400 --> 00:11:49,480 Speaker 1: a hundred million dollars, little bits of money. But you, 220 00:11:50,000 --> 00:11:52,800 Speaker 1: well maybe you, maybe not you. But the average person 221 00:11:53,360 --> 00:11:55,320 Speaker 1: isn't able to get in these types of deals because 222 00:11:55,320 --> 00:11:58,720 Speaker 1: you're not an accredited investor. So the SEC is trying 223 00:11:58,760 --> 00:12:01,280 Speaker 1: to protect you, so they're keeping you out of these 224 00:12:01,320 --> 00:12:04,040 Speaker 1: types of deals. Meanwhile, the rich keep getting richer because 225 00:12:04,080 --> 00:12:05,880 Speaker 1: they get access to these deals. And what happens is 226 00:12:06,400 --> 00:12:09,760 Speaker 1: they get into all these early round deals and they 227 00:12:09,800 --> 00:12:13,120 Speaker 1: make a bunch of money and then finally they go public, 228 00:12:13,320 --> 00:12:16,679 Speaker 1: which means the average person that's non accredited, kid credited 229 00:12:16,760 --> 00:12:20,040 Speaker 1: can buy them. And so what happens. All those venture capitalists, 230 00:12:20,040 --> 00:12:23,000 Speaker 1: all those are credit investors by early and as soon 231 00:12:23,040 --> 00:12:25,839 Speaker 1: as they get onto the market, the regular people, non 232 00:12:25,840 --> 00:12:27,920 Speaker 1: acredit investors have been waiting and waiting, waiting to get in. 233 00:12:28,360 --> 00:12:30,679 Speaker 1: They can finally get in, and what happens, Well, those 234 00:12:30,720 --> 00:12:33,920 Speaker 1: early investors dump on them. Sure, I already made ten 235 00:12:34,120 --> 00:12:37,360 Speaker 1: x fifty x on my investment. Here you go buy it. 236 00:12:37,760 --> 00:12:41,720 Speaker 1: And usually right after that happens, the price plummets down, 237 00:12:42,160 --> 00:12:45,440 Speaker 1: and so the SEC they say, I was trying to 238 00:12:45,480 --> 00:12:48,480 Speaker 1: protect the average person. The reality is more people end 239 00:12:48,559 --> 00:12:52,520 Speaker 1: up getting a hurt by this. However, I can't fault 240 00:12:52,559 --> 00:12:55,560 Speaker 1: them from trying. I suppose here they are again, back 241 00:12:55,600 --> 00:12:59,040 Speaker 1: at it again, meeting at an I S d A 242 00:12:59,240 --> 00:13:03,040 Speaker 1: meeting and they're um, they're addressing the audience. It's an 243 00:13:03,080 --> 00:13:06,800 Speaker 1: annual meeting and of the International Swaps and Derivatives Association 244 00:13:07,880 --> 00:13:11,320 Speaker 1: in Madrid, Spain. And Gary Ginsler, he's the head of 245 00:13:11,320 --> 00:13:13,840 Speaker 1: the SEC, and the head of the U S Commodity 246 00:13:13,880 --> 00:13:18,079 Speaker 1: Futures Trading Committee UH Chairman Roston Benham were both features 247 00:13:18,120 --> 00:13:22,120 Speaker 1: keynote speakers at the event. UM, basically saying what they 248 00:13:22,160 --> 00:13:24,439 Speaker 1: plan to do. Ben him spoke at length about a 249 00:13:24,559 --> 00:13:27,840 Speaker 1: quote request for an amended Order of Registration as a 250 00:13:27,880 --> 00:13:32,120 Speaker 1: derivatives clearing organization by an entity seeking to offer non 251 00:13:32,120 --> 00:13:36,120 Speaker 1: intermediated clearing of margin products to retail participants. It's a lot, 252 00:13:36,480 --> 00:13:39,400 Speaker 1: it's a big mouthful. What does that mean? That means 253 00:13:39,440 --> 00:13:42,480 Speaker 1: they want to create more red tape and UM, you know, 254 00:13:42,600 --> 00:13:44,640 Speaker 1: more gates that people have to get through before they 255 00:13:44,640 --> 00:13:49,840 Speaker 1: can give these UH securities and UM derivatives for you 256 00:13:49,880 --> 00:13:53,280 Speaker 1: to invest into, which is good. UM. I think most 257 00:13:53,280 --> 00:13:56,400 Speaker 1: people probably shouldn't be investing in these at all. UM, 258 00:13:56,440 --> 00:13:58,360 Speaker 1: but never like like I said, they're gonna try to 259 00:13:58,400 --> 00:14:00,640 Speaker 1: continue to regulate it. They're gonna try to you continue 260 00:14:00,679 --> 00:14:05,920 Speaker 1: to protect us. And notably UM, Sam Bankman Freed was 261 00:14:05,960 --> 00:14:09,720 Speaker 1: there UM talking Sam Bankman Freed. You might recognize that name. 262 00:14:09,760 --> 00:14:13,839 Speaker 1: He is the UM. I think he's under thirty. I 263 00:14:13,880 --> 00:14:15,839 Speaker 1: want to say he's like one of the richest men 264 00:14:15,960 --> 00:14:20,560 Speaker 1: under thirty. He's the founder of ft X Exchange so 265 00:14:20,960 --> 00:14:25,080 Speaker 1: ft X Exchange I believe they sponsored is at the 266 00:14:25,120 --> 00:14:29,600 Speaker 1: Miami heat Stadium possibly UM huge crypto exchange. He's a billionaire. 267 00:14:30,600 --> 00:14:34,200 Speaker 1: He's there speaking about regulations, and here he isn't another 268 00:14:34,320 --> 00:14:39,440 Speaker 1: article talking about the scams that he sales. M hm. 269 00:14:39,960 --> 00:14:42,440 Speaker 1: So he's there with the SEC and the CFTC talking 270 00:14:42,440 --> 00:14:45,440 Speaker 1: about regulations and protecting people. But just a few weeks 271 00:14:45,480 --> 00:14:48,040 Speaker 1: ago he was talking about how the scams he perpetuates. 272 00:14:48,120 --> 00:14:49,520 Speaker 1: So let me let me break this down. There's this 273 00:14:49,520 --> 00:14:53,520 Speaker 1: Bloomberg article. You can find it just search. Sam Bankman 274 00:14:53,560 --> 00:14:56,200 Speaker 1: Freed described yield farming. If you just look at that, 275 00:14:57,560 --> 00:15:02,920 Speaker 1: so he says, uh so uh, he says, uh. Anyway, 276 00:15:02,920 --> 00:15:04,440 Speaker 1: this article is like, what do you find some of 277 00:15:04,440 --> 00:15:06,520 Speaker 1: the most creative money making seems to take place in 278 00:15:06,720 --> 00:15:09,840 Speaker 1: yield farming. You might be asking yourself right now, what 279 00:15:09,880 --> 00:15:11,960 Speaker 1: the heck is yield farming? Well, a lot of people 280 00:15:12,000 --> 00:15:16,200 Speaker 1: are so. In this article, um ft X chief executive 281 00:15:16,240 --> 00:15:19,560 Speaker 1: officer and crypto billionaire Stan Bankman Freed with Bloomberg opinion 282 00:15:19,600 --> 00:15:23,600 Speaker 1: columnist Matt Levine sat down and Matt asked Sam exactly 283 00:15:23,600 --> 00:15:26,840 Speaker 1: what filled yield farming actually is. And here's what he said. 284 00:15:28,120 --> 00:15:30,280 Speaker 1: You're gonna love this. Matt Levin says, can you give 285 00:15:30,280 --> 00:15:33,280 Speaker 1: me an intuitive understanding of farming? I mean, like, to me, 286 00:15:33,400 --> 00:15:35,480 Speaker 1: farming is like you sell some structured puts or whatever. 287 00:15:35,840 --> 00:15:39,400 Speaker 1: So Sam Frank Sam Bankman Freed what's called SPF for short. 288 00:15:39,800 --> 00:15:42,440 Speaker 1: Remember he's the billionaire that runs f t X who 289 00:15:42,520 --> 00:15:46,160 Speaker 1: was with the SEC talking about regulating. He says, um, 290 00:15:46,240 --> 00:15:48,200 Speaker 1: let me give you sort of like a really toy 291 00:15:48,280 --> 00:15:50,720 Speaker 1: model of it, which I actually think has a surprising 292 00:15:50,720 --> 00:15:53,440 Speaker 1: amount of legitimacy for what farming could mean. You know, 293 00:15:53,440 --> 00:15:55,600 Speaker 1: where do you start? He says, you start with a 294 00:15:55,600 --> 00:15:58,320 Speaker 1: company that builds a box and then practice this box. 295 00:15:58,640 --> 00:16:00,320 Speaker 1: They probably dress it up to look like a life 296 00:16:00,400 --> 00:16:02,920 Speaker 1: changing you know, kind of like world altering protocol that's 297 00:16:02,960 --> 00:16:04,680 Speaker 1: kind of replace all the big banks in thirty eight 298 00:16:04,720 --> 00:16:08,240 Speaker 1: days or whatever. Um, maybe for now, actually ignore what 299 00:16:08,280 --> 00:16:11,080 Speaker 1: it does or pretend it does literally nothing. It's just 300 00:16:11,160 --> 00:16:15,240 Speaker 1: a box that does that make sense? So right now, 301 00:16:15,480 --> 00:16:17,880 Speaker 1: he says, it's sort of like a box that they 302 00:16:17,960 --> 00:16:19,920 Speaker 1: promise is going to change the whole world in thirty 303 00:16:19,920 --> 00:16:24,480 Speaker 1: eight days, but it literally does nothing. It's just a box, 304 00:16:25,080 --> 00:16:28,080 Speaker 1: that's his words. So you start with nothing and they 305 00:16:28,120 --> 00:16:30,320 Speaker 1: pretend it's going to be something, but in his own words, 306 00:16:30,360 --> 00:16:33,040 Speaker 1: it actually does nothing. He says, so what this protocol is, 307 00:16:33,080 --> 00:16:35,320 Speaker 1: It's called Protocol xits the box and you're a token. 308 00:16:35,960 --> 00:16:38,080 Speaker 1: You can take ethereum or whatever and you put it 309 00:16:38,080 --> 00:16:39,680 Speaker 1: in the box and you take it out of the box. 310 00:16:39,800 --> 00:16:41,400 Speaker 1: All right, So you can put tokens in and you 311 00:16:41,400 --> 00:16:43,280 Speaker 1: can take boat tokens out. So you put in the 312 00:16:43,320 --> 00:16:45,520 Speaker 1: box and you get like, you know, an IOU for 313 00:16:45,600 --> 00:16:48,320 Speaker 1: having put it in the box, and then later you 314 00:16:48,360 --> 00:16:51,120 Speaker 1: can redeem that i o U back to get the 315 00:16:51,160 --> 00:16:53,200 Speaker 1: token back. That makes sense here with me. So far, 316 00:16:53,320 --> 00:16:55,760 Speaker 1: you have this worth lipp worthless box. You can put 317 00:16:55,760 --> 00:16:57,360 Speaker 1: it token in, they'll give an IOU for it, and 318 00:16:57,440 --> 00:17:00,640 Speaker 1: later you can redeem that for the token. He says, 319 00:17:00,680 --> 00:17:03,600 Speaker 1: so far, this is Sam Bakeman freesteal, what we've described 320 00:17:03,640 --> 00:17:06,679 Speaker 1: as the world's dumbest e t F. It doesn't do anything, 321 00:17:07,119 --> 00:17:09,080 Speaker 1: but it lets you puts things in if you choose. 322 00:17:09,400 --> 00:17:11,960 Speaker 1: And then this protocol issues a token, we'll call it 323 00:17:12,000 --> 00:17:15,320 Speaker 1: whatever ex token, and x X token promises that anything 324 00:17:15,320 --> 00:17:17,439 Speaker 1: cool that happens because of this box is going to 325 00:17:17,600 --> 00:17:21,320 Speaker 1: ultimately be usable by you know, governance votes of holders 326 00:17:21,359 --> 00:17:24,399 Speaker 1: of the X token. So basically it's a bunch of 327 00:17:24,400 --> 00:17:27,719 Speaker 1: smoke and mirrors. They created box that literally does nothing 328 00:17:27,920 --> 00:17:30,520 Speaker 1: that you can put tokens into with a with an 329 00:17:30,640 --> 00:17:33,280 Speaker 1: I O U, and they promise you that whatever this 330 00:17:33,400 --> 00:17:35,560 Speaker 1: box ends up doing, you'll be able to have a 331 00:17:35,640 --> 00:17:37,840 Speaker 1: claim on whatever that box ends up doing because you 332 00:17:37,840 --> 00:17:40,040 Speaker 1: have that IOU. However, he already told you that the 333 00:17:40,080 --> 00:17:44,320 Speaker 1: box does nothing. Sounds sort of like a fraud or 334 00:17:44,320 --> 00:17:46,919 Speaker 1: a scam, doesn't it. I want to explain what he 335 00:17:46,960 --> 00:17:48,439 Speaker 1: says here and more in some of the questions that 336 00:17:48,440 --> 00:17:50,560 Speaker 1: were asked back of him, so you can understand, what's more, 337 00:17:51,160 --> 00:17:53,159 Speaker 1: what they're talking about here are You're listening to the 338 00:17:53,200 --> 00:17:55,800 Speaker 1: Mark Moa Show talking about bitcoin and cryptocurrencies and a 339 00:17:55,840 --> 00:17:58,359 Speaker 1: whole lot more. I'm gonna come back with this story 340 00:17:58,359 --> 00:18:00,320 Speaker 1: and more in a second. Don't go away, all right, 341 00:18:00,359 --> 00:18:02,440 Speaker 1: welcome back. You are listening to the markmas Show. We're 342 00:18:02,440 --> 00:18:05,720 Speaker 1: talking about bitcoin, We're talking about cryptocurrency. We're talking about 343 00:18:05,720 --> 00:18:09,280 Speaker 1: the decentralized revolution. I was talking about right before the break, 344 00:18:09,320 --> 00:18:11,960 Speaker 1: I was talking about this Defy protocol thing. I was 345 00:18:11,960 --> 00:18:14,280 Speaker 1: talking about how it's blown up, it's blowing up the markets, 346 00:18:14,640 --> 00:18:17,920 Speaker 1: how the SEC, the CFTC, they're having this meeting to 347 00:18:18,000 --> 00:18:19,840 Speaker 1: figure out how they're going to regulate things and how 348 00:18:19,840 --> 00:18:23,160 Speaker 1: they're going to protect us from investing into a bunch 349 00:18:23,200 --> 00:18:26,320 Speaker 1: of scams and frauds, and at the event was Sam 350 00:18:26,359 --> 00:18:29,639 Speaker 1: Bankman Freed. He's the billionaire founder of f t x, 351 00:18:29,680 --> 00:18:33,679 Speaker 1: one of the largest cryptocurrency trading platforms, and he was 352 00:18:33,720 --> 00:18:36,280 Speaker 1: in an article just a few weeks ago on Bloomberg 353 00:18:36,560 --> 00:18:39,520 Speaker 1: and he was interviewed by Matt Levine asking him what 354 00:18:39,600 --> 00:18:43,359 Speaker 1: the heck is this defy yield farming about anyway? The 355 00:18:43,400 --> 00:18:47,600 Speaker 1: yield farming, Uh, defy that's like blowing up the entire 356 00:18:48,000 --> 00:18:50,399 Speaker 1: financial markets right now. Yeah, So we asked him about it, 357 00:18:50,520 --> 00:18:52,639 Speaker 1: and Sam Bankman Freed said, it's basically like a box. 358 00:18:52,960 --> 00:18:55,600 Speaker 1: The box does nothing, it's worth nothing, but you can 359 00:18:55,600 --> 00:18:56,840 Speaker 1: put a token in it, and then you get an 360 00:18:56,880 --> 00:19:00,480 Speaker 1: IOU for that token, and then, um, you know, they 361 00:19:00,480 --> 00:19:01,919 Speaker 1: make you think that this box is going to do 362 00:19:01,920 --> 00:19:03,560 Speaker 1: something cool and if it does, then your token then 363 00:19:03,560 --> 00:19:06,760 Speaker 1: your claim on that token allows you to participate. Um. 364 00:19:06,800 --> 00:19:08,359 Speaker 1: He went on to say, of course, so far we 365 00:19:08,400 --> 00:19:11,440 Speaker 1: haven't exactly given a compelling reason for why there ever 366 00:19:11,480 --> 00:19:14,480 Speaker 1: would be any proceeds from this box, but I don't know, 367 00:19:14,800 --> 00:19:17,200 Speaker 1: you know, maybe there will be. So sort of where 368 00:19:17,320 --> 00:19:20,720 Speaker 1: you start and then you say, all right, well you've 369 00:19:20,760 --> 00:19:23,080 Speaker 1: got this box and you've got a token, and the 370 00:19:23,119 --> 00:19:28,560 Speaker 1: box declares or votes on governance. UM. And what we're 371 00:19:28,560 --> 00:19:30,879 Speaker 1: gonna do is gonna take half of all the tokens, 372 00:19:32,160 --> 00:19:34,719 Speaker 1: maybe two thirds, and we're gonna offer those tokens. We're 373 00:19:34,720 --> 00:19:37,560 Speaker 1: gonna give him away for free whoever uses the box. 374 00:19:37,960 --> 00:19:41,000 Speaker 1: So anyone who goes and takes some money and puts 375 00:19:41,000 --> 00:19:43,000 Speaker 1: it in this box, remember the box that he said 376 00:19:43,040 --> 00:19:45,320 Speaker 1: is worthless and does nothing. Whoever takes money and puts 377 00:19:45,359 --> 00:19:49,119 Speaker 1: it in this box each day, they're gonna get back, 378 00:19:49,160 --> 00:19:53,440 Speaker 1: you know, one percent of this new box token UM 379 00:19:53,560 --> 00:19:56,200 Speaker 1: for everyone who put money in the box. Now for now, 380 00:19:56,480 --> 00:19:59,320 Speaker 1: what EX token does? It gets given away to box people. 381 00:20:01,160 --> 00:20:03,960 Speaker 1: So this box that does absolutely nothing creates its own token. 382 00:20:04,720 --> 00:20:07,399 Speaker 1: And if I put real money in there, they're going 383 00:20:07,440 --> 00:20:11,160 Speaker 1: to give me back this box token. But what's the box? 384 00:20:11,240 --> 00:20:16,560 Speaker 1: The box does nothing and box token does nothing. UM. 385 00:20:16,680 --> 00:20:18,760 Speaker 1: For now, he says, in his own words, what X 386 00:20:18,800 --> 00:20:21,240 Speaker 1: token does? It gets given away to the box people. 387 00:20:21,960 --> 00:20:25,719 Speaker 1: And now what happens, Well, the token has some market cap, right, 388 00:20:25,720 --> 00:20:28,080 Speaker 1: it's probably not zero, let's say it's you know, it's 389 00:20:28,080 --> 00:20:31,800 Speaker 1: a twenty million market So this box token that does 390 00:20:31,840 --> 00:20:34,600 Speaker 1: nothing and gets given away to people who put their 391 00:20:34,880 --> 00:20:38,440 Speaker 1: money in the box gets given away and it's worth 392 00:20:38,440 --> 00:20:41,840 Speaker 1: twenty million. And so the interviewee Matt Levine says, wait, wait, wait, wait, wait, 393 00:20:42,000 --> 00:20:45,719 Speaker 1: from like first principles, it should be zero. And Sam's 394 00:20:45,760 --> 00:20:49,320 Speaker 1: answer is, uh, sure, okay, yeah, it's completely reasonable, should 395 00:20:49,320 --> 00:20:54,440 Speaker 1: be zero. So so Matt says, wait, but like, when 396 00:20:54,480 --> 00:20:56,680 Speaker 1: you describe it in this totalical, cynical way, it sounds 397 00:20:56,720 --> 00:20:59,239 Speaker 1: like it should be zero, but go ahead and go on. 398 00:20:59,280 --> 00:21:01,720 Speaker 1: So Sam says, okay, describe it this way. You might think, 399 00:21:01,720 --> 00:21:04,040 Speaker 1: for instance, that in like five minutes with an Internet connection, 400 00:21:04,240 --> 00:21:07,159 Speaker 1: you could create a box and such a token and 401 00:21:07,160 --> 00:21:08,720 Speaker 1: that it should reflect like, you know, it should be 402 00:21:08,760 --> 00:21:11,199 Speaker 1: worth like a highty bucks or something market cap for 403 00:21:11,240 --> 00:21:13,720 Speaker 1: that um because of the amount of time and effort 404 00:21:13,760 --> 00:21:17,199 Speaker 1: that it went um. And he says that in the 405 00:21:17,240 --> 00:21:20,040 Speaker 1: world that we're in, though, in this world today that 406 00:21:20,080 --> 00:21:23,920 Speaker 1: he operates in, if you do this, everyone's gonna be like, oh, 407 00:21:24,080 --> 00:21:27,000 Speaker 1: box token, maybe it's cool if you buy in box token. 408 00:21:27,040 --> 00:21:29,280 Speaker 1: You know, that's gonna appear on Twitter and it's gonna 409 00:21:29,320 --> 00:21:32,199 Speaker 1: have a twenty million market cap. Of course, one thing 410 00:21:32,240 --> 00:21:35,000 Speaker 1: that you could do is you could like maybe make 411 00:21:35,040 --> 00:21:37,000 Speaker 1: the float very low and whatever and you know, there 412 00:21:37,000 --> 00:21:39,399 Speaker 1: wouldn't there. There haven't been twenty million dollars that have 413 00:21:39,440 --> 00:21:41,359 Speaker 1: been flowed in yet, so that's sort of like it. 414 00:21:41,480 --> 00:21:44,080 Speaker 1: So what they do, what does you mean by that? So, um, 415 00:21:44,160 --> 00:21:47,639 Speaker 1: let's say that I have a million tokens in this box, 416 00:21:47,640 --> 00:21:49,679 Speaker 1: so I create this worthless box, and I create a 417 00:21:49,680 --> 00:21:53,240 Speaker 1: million box tokens, and people put token their real money 418 00:21:53,240 --> 00:21:55,440 Speaker 1: in the box, and I gave him this worthless box 419 00:21:55,520 --> 00:21:59,320 Speaker 1: token back. I know, it sounds insane, this is what's happening. 420 00:22:00,440 --> 00:22:01,800 Speaker 1: What they do is then they say, well, we have 421 00:22:01,840 --> 00:22:04,919 Speaker 1: these million tokens, but that's how many are total total supply. 422 00:22:05,160 --> 00:22:08,119 Speaker 1: We're only going to put a hundred thousand into the market. 423 00:22:08,160 --> 00:22:11,320 Speaker 1: That's the float. That's what he's talking about. Why would 424 00:22:11,320 --> 00:22:15,000 Speaker 1: they do that, Well, supply and demand. If they make 425 00:22:15,080 --> 00:22:19,600 Speaker 1: the tokens seem more scarce, then people want it more. 426 00:22:19,680 --> 00:22:22,200 Speaker 1: And so you take the entire market cap of the token, 427 00:22:22,680 --> 00:22:25,240 Speaker 1: and then you reduced the amount of tokens by what's 428 00:22:25,240 --> 00:22:28,520 Speaker 1: available in the market to float, and you artificially increase it. 429 00:22:29,240 --> 00:22:33,360 Speaker 1: So so the interviewer goes on to say, it shouldn't 430 00:22:33,400 --> 00:22:36,640 Speaker 1: have any market cap in theory, but in practice they 431 00:22:36,640 --> 00:22:40,600 Speaker 1: always do Okay, so it should be worth nothing that saying, 432 00:22:40,600 --> 00:22:43,199 Speaker 1: and so Sam baby Free says, that's right. So and 433 00:22:43,240 --> 00:22:46,720 Speaker 1: obviously already we sort of hiding some of the magic impact, right, 434 00:22:48,400 --> 00:22:50,320 Speaker 1: So like some of the magic is like how do 435 00:22:50,440 --> 00:22:53,399 Speaker 1: you get that market cap to start with? But you know, 436 00:22:53,440 --> 00:22:55,959 Speaker 1: whatever we're gonna move on from for that second. You know, 437 00:22:56,359 --> 00:23:00,080 Speaker 1: we have ex tokens being given out to all the 438 00:23:00,160 --> 00:23:03,200 Speaker 1: sophisticated firms. So all these Wall Street firms and here's 439 00:23:03,200 --> 00:23:05,920 Speaker 1: where the real scam comes in. So all these Wall 440 00:23:05,960 --> 00:23:09,080 Speaker 1: Street firms are in on this. So you take this 441 00:23:09,200 --> 00:23:13,080 Speaker 1: worthless box and these worthless box toke box tokens, but 442 00:23:13,200 --> 00:23:17,480 Speaker 1: you give them out to these sophisticated firms. Like, if 443 00:23:17,480 --> 00:23:19,040 Speaker 1: the total amount of money in the box is a 444 00:23:19,119 --> 00:23:22,520 Speaker 1: hundred million dollars, then it's going to yield sixteen million 445 00:23:22,600 --> 00:23:26,200 Speaker 1: this year in box tokens that are being given out 446 00:23:26,240 --> 00:23:30,640 Speaker 1: for it. That's a sixtent return. That's pretty good. We'll 447 00:23:30,680 --> 00:23:32,879 Speaker 1: put a little bit more in, right, and maybe that 448 00:23:32,920 --> 00:23:35,320 Speaker 1: happens until there's two hundred million dollars in the box. 449 00:23:35,720 --> 00:23:38,560 Speaker 1: So you know, sophisticated traders or people on crypto Twitter 450 00:23:38,680 --> 00:23:40,400 Speaker 1: or other sort of similar parties go and put two 451 00:23:40,520 --> 00:23:43,320 Speaker 1: hundred million in the box collectively, they start getting these 452 00:23:43,359 --> 00:23:47,760 Speaker 1: ex tokens for it. So what he's saying, you create 453 00:23:47,800 --> 00:23:51,879 Speaker 1: a completely worthless box and a completely worthless token or 454 00:23:51,920 --> 00:23:56,800 Speaker 1: box token. People then put real money or other tokens, bitcoin, 455 00:23:56,840 --> 00:24:00,240 Speaker 1: etherorum into this box and they get this worthless box 456 00:24:00,320 --> 00:24:05,240 Speaker 1: token back. They manipulate the markets to seem like there's 457 00:24:05,359 --> 00:24:09,920 Speaker 1: value and I'm getting fifteen percent back on my tokens 458 00:24:10,000 --> 00:24:12,720 Speaker 1: or my money in this box token, and then I 459 00:24:12,720 --> 00:24:15,040 Speaker 1: can take this box token and I can go exchange 460 00:24:15,040 --> 00:24:18,240 Speaker 1: it back for a U. S dollar stable coin or 461 00:24:18,280 --> 00:24:21,240 Speaker 1: a bitcoin or a theoryum or whatever. Are you falling 462 00:24:21,240 --> 00:24:26,000 Speaker 1: along here? Does it sound ridiculous, It's because it is. 463 00:24:26,720 --> 00:24:32,160 Speaker 1: That's exactly what's happened with us Tara Luna. So they've 464 00:24:32,160 --> 00:24:35,120 Speaker 1: created this box Tera Luna, and if I give them 465 00:24:35,119 --> 00:24:40,160 Speaker 1: a dollar, they go and create Tara Luna coin, which 466 00:24:40,240 --> 00:24:43,760 Speaker 1: is a worthless coin for a worthless box. They use 467 00:24:43,800 --> 00:24:46,960 Speaker 1: their market makers and their Wall Street sophisticated traders to 468 00:24:47,240 --> 00:24:50,479 Speaker 1: look like it has value, pump it up on Twitter 469 00:24:51,359 --> 00:24:56,280 Speaker 1: and pay back artificially fift Now. Remember if you on 470 00:24:56,440 --> 00:24:59,879 Speaker 1: Terra Luna, they offer you tw so a lot of 471 00:25:00,000 --> 00:25:01,879 Speaker 1: pop are gonna take that. How do they pay you back? 472 00:25:03,320 --> 00:25:06,080 Speaker 1: They pay you back with a worthless box token. Look, 473 00:25:06,200 --> 00:25:08,280 Speaker 1: this is what Sam Bankman Freed is saying. All right, 474 00:25:08,600 --> 00:25:10,720 Speaker 1: this isn't my words, this is his. Now, who's Sam 475 00:25:10,760 --> 00:25:14,720 Speaker 1: Bankman Freed. He is the founder of the ft Exchange, 476 00:25:14,760 --> 00:25:19,640 Speaker 1: was the largest cryptocurrency exchange. He's the same person at 477 00:25:19,680 --> 00:25:22,880 Speaker 1: the meeting with the SEC and the CFTC that's trying 478 00:25:22,920 --> 00:25:27,639 Speaker 1: to protect you from this exact scam. He's not trying 479 00:25:27,640 --> 00:25:31,760 Speaker 1: to hide it. He's not trying to say like, um, 480 00:25:31,880 --> 00:25:34,560 Speaker 1: um no, this really has value. He's not saying that. 481 00:25:35,040 --> 00:25:39,720 Speaker 1: He's saying it's a scam. Um he said. The interviewer says, uh, 482 00:25:39,800 --> 00:25:41,800 Speaker 1: I think of myself like a fairly cynical person. And 483 00:25:41,840 --> 00:25:43,880 Speaker 1: that was so much more cynical than how I would 484 00:25:43,880 --> 00:25:47,080 Speaker 1: have described it. You're just like, well, uh, I'm in 485 00:25:47,119 --> 00:25:50,399 Speaker 1: the ponzi business and it's pretty good. That's the interview 486 00:25:50,440 --> 00:25:54,480 Speaker 1: asked him. Uh. And and they said, at no point 487 00:25:54,480 --> 00:25:56,720 Speaker 1: did any of this require any sort of like economic case. 488 00:25:56,760 --> 00:25:58,879 Speaker 1: It's just like other people putting money in the box, 489 00:25:59,240 --> 00:26:01,399 Speaker 1: and so I'm going to you too, and then and 490 00:26:01,440 --> 00:26:04,280 Speaker 1: then it's more valuable. So they're gonna put more money in, 491 00:26:04,400 --> 00:26:06,560 Speaker 1: and at no point in the cycle did seem to 492 00:26:06,640 --> 00:26:13,200 Speaker 1: like describe any sort of like economic purpose. Uh yeah, 493 00:26:13,240 --> 00:26:17,560 Speaker 1: so you're getting the point that's exactly what this DeFi is. Um. 494 00:26:17,600 --> 00:26:19,560 Speaker 1: I know a lot of you may not like to 495 00:26:19,640 --> 00:26:22,240 Speaker 1: hear this, and I apologize because it's maybe the first 496 00:26:22,240 --> 00:26:25,119 Speaker 1: time you're hearing something like this. But you've created a 497 00:26:25,119 --> 00:26:29,520 Speaker 1: worthless box, and you've created a broken economic incentive system 498 00:26:29,560 --> 00:26:32,680 Speaker 1: to get more people to put their real valuable tokens 499 00:26:32,760 --> 00:26:37,000 Speaker 1: or money in a worthless box. And then they're creating 500 00:26:37,000 --> 00:26:40,120 Speaker 1: a worthless box token to pay you back a percentage 501 00:26:40,640 --> 00:26:44,640 Speaker 1: of your real money in Personambankment Freed in his own words, 502 00:26:44,640 --> 00:26:48,879 Speaker 1: I read it for your word by word. It's a scam. 503 00:26:48,920 --> 00:26:51,119 Speaker 1: Anything backed or packed as a scam. I'm gonna come 504 00:26:51,119 --> 00:26:52,520 Speaker 1: back and I'm explain this a little bit more, and 505 00:26:52,520 --> 00:26:55,040 Speaker 1: I wanna explain ways we can look at other tokens 506 00:26:55,119 --> 00:26:57,520 Speaker 1: that and more. You're listening to the Markma Show. We're 507 00:26:57,520 --> 00:27:00,480 Speaker 1: talking about bitcoin, We're talking about cryptocurrencies. We're talking about 508 00:27:00,520 --> 00:27:06,040 Speaker 1: the decentralized revolution. We're talking about this defy decentralized finance 509 00:27:06,080 --> 00:27:09,040 Speaker 1: that is blowing up right now and taking the entire 510 00:27:09,040 --> 00:27:14,160 Speaker 1: cryptocurrency space with it, and the larger financial markets with it. Now, 511 00:27:14,880 --> 00:27:17,960 Speaker 1: Christine the Guard and Yelling have warned us this could 512 00:27:18,000 --> 00:27:21,480 Speaker 1: create financial instability and their right, and we're seeing it firsthand. 513 00:27:22,240 --> 00:27:24,359 Speaker 1: But it's not what it appears. So I'm gonna explain 514 00:27:24,359 --> 00:27:26,320 Speaker 1: that anymore when I come back. All right, welcome back. 515 00:27:26,320 --> 00:27:29,000 Speaker 1: You were listening to the Markmas Show. We're talking about bitcoin, 516 00:27:29,040 --> 00:27:32,240 Speaker 1: We're talking about cryptocurrencies, We're talking about the decentralized revolution, 517 00:27:32,960 --> 00:27:36,399 Speaker 1: and before the break, well, we've been talking about defy, 518 00:27:36,560 --> 00:27:38,960 Speaker 1: decentralized finance. We're talking about stable coins. We're talking about 519 00:27:39,240 --> 00:27:42,199 Speaker 1: the world blowing up, the crypto, the defied world, the 520 00:27:42,240 --> 00:27:46,639 Speaker 1: cryptocurrency world, and even traditional financial markets melting down because 521 00:27:46,640 --> 00:27:49,680 Speaker 1: of what's happening with this Terra Luna token. I was 522 00:27:49,680 --> 00:27:52,280 Speaker 1: talking about how the regulators getting together to regulate do 523 00:27:52,320 --> 00:27:54,720 Speaker 1: what they do, the SEC, the CFTC, and how Sam 524 00:27:54,760 --> 00:27:57,600 Speaker 1: bankman Fried was there as well, and then I read 525 00:27:57,800 --> 00:27:59,720 Speaker 1: an interview with him from a few weeks ago on 526 00:27:59,720 --> 00:28:03,439 Speaker 1: blue Berg where he basically said all of DeFi is 527 00:28:03,480 --> 00:28:06,840 Speaker 1: a big Ponzi scheme. He admitted that if you missed 528 00:28:06,880 --> 00:28:08,600 Speaker 1: out on that, you can go back and listen to it. 529 00:28:08,640 --> 00:28:11,600 Speaker 1: Check out Mark moss Um podcast or Mark mosson hired 530 00:28:11,640 --> 00:28:14,879 Speaker 1: podcast app. Now, Um, going on from that, what I 531 00:28:14,920 --> 00:28:17,679 Speaker 1: was saying is that, Um, that's basically the way this is. 532 00:28:18,040 --> 00:28:21,639 Speaker 1: They create a worthless box, a worthless token, and people 533 00:28:21,680 --> 00:28:26,200 Speaker 1: buy it. Anytime you hear something being backed, what does 534 00:28:26,240 --> 00:28:30,520 Speaker 1: that mean? So what is bitcoin backed by? What is 535 00:28:30,560 --> 00:28:33,960 Speaker 1: the dollar backed by? What is gold backed by? And 536 00:28:34,040 --> 00:28:36,240 Speaker 1: what does backed even mean? So let's think about this 537 00:28:36,280 --> 00:28:41,600 Speaker 1: for a minute. So for five thousand years, gold was money. 538 00:28:42,400 --> 00:28:48,840 Speaker 1: Gold fits most of the attributes of money portable, divisible, durable, recognizable, salable, um, fungible, 539 00:28:48,840 --> 00:28:52,320 Speaker 1: et cetera. But it's not very portable, so it lacks 540 00:28:52,360 --> 00:28:54,719 Speaker 1: that it's it's not very good there. And so we 541 00:28:54,760 --> 00:28:57,440 Speaker 1: put gold in the banks because it's too big and 542 00:28:57,440 --> 00:29:00,080 Speaker 1: heavy and clunky to move over for far space. We 543 00:29:00,120 --> 00:29:01,840 Speaker 1: put in the banks and they gave us layer to 544 00:29:02,360 --> 00:29:05,480 Speaker 1: a paper gold certificate. Paper certificates are easier to transport. 545 00:29:05,840 --> 00:29:08,760 Speaker 1: It speeds up the velocity of money. But it's not money. 546 00:29:08,840 --> 00:29:12,000 Speaker 1: It's a claim on the money. So what it is 547 00:29:12,000 --> 00:29:14,040 Speaker 1: is an I owe you. If I were to give 548 00:29:14,080 --> 00:29:15,920 Speaker 1: you that paper claim, that means you can go to 549 00:29:15,920 --> 00:29:18,920 Speaker 1: the bank and claim that gold. So that gold back 550 00:29:19,000 --> 00:29:24,040 Speaker 1: certificate was backed by the gold in the bank. That 551 00:29:24,080 --> 00:29:27,280 Speaker 1: makes sense, it was backed by the Golden bank, But 552 00:29:27,320 --> 00:29:31,360 Speaker 1: what was gold backed by golds backed by nothing? Gold 553 00:29:31,440 --> 00:29:35,000 Speaker 1: just is gold is money. Gold has value because everybody 554 00:29:35,040 --> 00:29:38,400 Speaker 1: says it does. But I need to be backed by anything. 555 00:29:38,920 --> 00:29:41,080 Speaker 1: So then the dollar was backed by gold, and then 556 00:29:41,080 --> 00:29:44,160 Speaker 1: eventually the dollar became backed by nothing. It kind of 557 00:29:44,160 --> 00:29:46,720 Speaker 1: went to the petro dollars, so goal so dollars were 558 00:29:46,760 --> 00:29:50,240 Speaker 1: kind of backed by oil. At least oil helped keep 559 00:29:50,280 --> 00:29:53,000 Speaker 1: the price of the dollar propped up. They say today 560 00:29:53,000 --> 00:29:55,960 Speaker 1: that the dollars backed by the full faith and credit 561 00:29:56,000 --> 00:29:58,760 Speaker 1: of the government, whatever that means. Um, So, really the 562 00:29:58,800 --> 00:30:00,840 Speaker 1: dollars not backed by any think just this kind of 563 00:30:00,880 --> 00:30:04,880 Speaker 1: collective illusion or trust that somebody else will accept it 564 00:30:05,000 --> 00:30:09,120 Speaker 1: later for goods and services. And so the reason why 565 00:30:09,360 --> 00:30:12,040 Speaker 1: I bring that up is because the very fact that 566 00:30:12,120 --> 00:30:16,280 Speaker 1: something has to be backed by something else tells you 567 00:30:16,320 --> 00:30:18,840 Speaker 1: there's a problem, tells you what you have is not 568 00:30:18,960 --> 00:30:22,280 Speaker 1: the real thing, but rather a claim to it. Anytime 569 00:30:22,320 --> 00:30:24,440 Speaker 1: you don't have the real thing, but rather a claim 570 00:30:24,520 --> 00:30:27,720 Speaker 1: to it, It introduces risk, It introduces counterparty risks. So 571 00:30:29,040 --> 00:30:31,080 Speaker 1: if I have the gold. I have the gold. If 572 00:30:31,120 --> 00:30:32,360 Speaker 1: I give you the goldie of the gold. If I 573 00:30:32,360 --> 00:30:33,760 Speaker 1: put the gold in the bank and I give you 574 00:30:33,800 --> 00:30:37,480 Speaker 1: a paper gold certificate, there's a chance that you may 575 00:30:37,520 --> 00:30:40,200 Speaker 1: not actually get the gold. Remember the days of getting checks. 576 00:30:40,520 --> 00:30:42,560 Speaker 1: You probably do if you're old enough, you'd get a 577 00:30:42,640 --> 00:30:45,280 Speaker 1: check and sometimes you'd wonder, like, well this check actually 578 00:30:45,320 --> 00:30:47,640 Speaker 1: be good if I cash it? And typically it would 579 00:30:47,640 --> 00:30:51,480 Speaker 1: always be good. Um, but you know, people would bounce checks. 580 00:30:51,640 --> 00:30:54,840 Speaker 1: I remember bouncing plenty of checks in my day learning 581 00:30:54,880 --> 00:30:58,160 Speaker 1: how to manage a checkbook. And so sometimes that check 582 00:30:58,200 --> 00:31:01,360 Speaker 1: would not be worth it. Sometimes claim that IOU would 583 00:31:01,400 --> 00:31:04,120 Speaker 1: not be worth it, and so wouldn't you rather have 584 00:31:04,200 --> 00:31:07,600 Speaker 1: the gold? And so whenever you hear this about these 585 00:31:07,680 --> 00:31:11,400 Speaker 1: um de fi protocols, um, there it's a box. It's 586 00:31:11,440 --> 00:31:13,920 Speaker 1: a worthless box at sam Bank, Benfried says. And then 587 00:31:13,960 --> 00:31:15,840 Speaker 1: you put these tokens in it, you put this money 588 00:31:15,840 --> 00:31:19,280 Speaker 1: in it, and they give you back an iou. They're 589 00:31:19,360 --> 00:31:23,720 Speaker 1: backing that IOU with the assets in that box. But 590 00:31:23,840 --> 00:31:26,800 Speaker 1: what if those assets in the box aren't any good 591 00:31:26,880 --> 00:31:29,280 Speaker 1: or you don't get them back, then that that that 592 00:31:29,360 --> 00:31:33,960 Speaker 1: IOU that you have, that claim is worthless. And then 593 00:31:33,960 --> 00:31:36,840 Speaker 1: it starts just cascading from there, and that's exactly what 594 00:31:36,880 --> 00:31:40,880 Speaker 1: we're starting to see happen throughout the entire DeFi decentralized 595 00:31:40,880 --> 00:31:42,880 Speaker 1: finance market. And I think there's a lot of a 596 00:31:42,880 --> 00:31:46,080 Speaker 1: contagion there and it's it's starting to pull down other 597 00:31:46,120 --> 00:31:50,520 Speaker 1: assets like bitcoin. So, for example, Tera Luna um didn't 598 00:31:50,560 --> 00:31:53,840 Speaker 1: hold those dollars. Instead, they created this box token. They're 599 00:31:53,880 --> 00:31:56,120 Speaker 1: Tera Luna token. They also took some of those tokens 600 00:31:56,160 --> 00:31:58,560 Speaker 1: they bought over a billion dollars of bitcoin with it, 601 00:32:00,040 --> 00:32:04,040 Speaker 1: thought oh, we'll also back our token with bitcoin. The 602 00:32:04,080 --> 00:32:05,920 Speaker 1: problem is, as more and more people started coming to 603 00:32:05,920 --> 00:32:09,240 Speaker 1: redeem that, they were forced to liquidate their box token, 604 00:32:09,480 --> 00:32:12,240 Speaker 1: and their box token went from a twenty five billion 605 00:32:12,760 --> 00:32:16,720 Speaker 1: dollar valuation hold wait for it, wait for it, from 606 00:32:16,760 --> 00:32:22,200 Speaker 1: a billion dollar valuation to a one billion dollar valuation. 607 00:32:22,400 --> 00:32:25,280 Speaker 1: We lost four billion dollars off the valuation, just like 608 00:32:25,320 --> 00:32:28,120 Speaker 1: that um and because it was backed by something else 609 00:32:28,160 --> 00:32:30,040 Speaker 1: and then what it was backed by this bitcoin, they 610 00:32:30,040 --> 00:32:32,920 Speaker 1: were forced to liquidate the bitcoin and it pushed all 611 00:32:33,120 --> 00:32:36,440 Speaker 1: this downwards selling pressure on the market. And the problem 612 00:32:36,520 --> 00:32:39,040 Speaker 1: is that we have so much leverage in the system. 613 00:32:39,080 --> 00:32:44,600 Speaker 1: I'm afraid it could get worse. So, for example, UM, 614 00:32:44,640 --> 00:32:47,000 Speaker 1: this contagion spread into all types of hedge funds, Wall 615 00:32:47,040 --> 00:32:51,400 Speaker 1: Street chaders. UM. Potentially you know, I've talked quite a 616 00:32:51,440 --> 00:32:54,440 Speaker 1: bit a lot about Michael Sailor micro Strategy UM. They've 617 00:32:54,560 --> 00:32:58,440 Speaker 1: used leverage, They've used debt debt is leverage UM to 618 00:32:58,640 --> 00:33:02,360 Speaker 1: buy an enorm this amount of bitcoin. And some people 619 00:33:02,400 --> 00:33:05,680 Speaker 1: are speculating that these large Wall Street firms, these Wall 620 00:33:05,680 --> 00:33:09,760 Speaker 1: Street traders could potentially be trying to break that leverage. 621 00:33:10,040 --> 00:33:12,440 Speaker 1: And so what happens is, I think he has about 622 00:33:12,480 --> 00:33:15,200 Speaker 1: four billion dollars worth of bitcoin. You look at some 623 00:33:15,280 --> 00:33:19,120 Speaker 1: of these giant hedge funds. They got four billion dollars 624 00:33:19,160 --> 00:33:21,840 Speaker 1: in their back pocket. They could easily to take that 625 00:33:21,880 --> 00:33:24,480 Speaker 1: four billion dollars bet against him, start sprinkling a little 626 00:33:24,480 --> 00:33:27,080 Speaker 1: bit of bad news, and bring that price down low 627 00:33:27,160 --> 00:33:29,960 Speaker 1: enough to a point that it forces an liquidation event, 628 00:33:30,720 --> 00:33:32,680 Speaker 1: which means he'd be forced to sell to cover the 629 00:33:32,720 --> 00:33:37,040 Speaker 1: debt or post up more collateral. UM. I'm not saying 630 00:33:37,080 --> 00:33:40,000 Speaker 1: that's going to happen. I certainly hope it does not happen. 631 00:33:40,680 --> 00:33:42,760 Speaker 1: But this is the problem that we get into from 632 00:33:42,760 --> 00:33:45,120 Speaker 1: two reasons. We get into this problem from one reason 633 00:33:45,240 --> 00:33:49,040 Speaker 1: is that this leverage in the system massive amounts of debt. 634 00:33:49,480 --> 00:33:52,800 Speaker 1: So debt unfortunately had a very adverse effect on me 635 00:33:52,840 --> 00:33:54,520 Speaker 1: in two thousand and eight. I've told my story many 636 00:33:54,560 --> 00:33:57,360 Speaker 1: times about that when the entire real estate market collapsed, 637 00:33:58,200 --> 00:34:00,120 Speaker 1: I had too much leverage and I couldn't manage my 638 00:34:00,160 --> 00:34:04,360 Speaker 1: portfolio properly. Um. I like to think of leverage as 639 00:34:04,400 --> 00:34:08,319 Speaker 1: like fire. Fire can cook my food and keep my 640 00:34:08,360 --> 00:34:11,120 Speaker 1: house warm, but it could also burn my house down. 641 00:34:11,200 --> 00:34:13,520 Speaker 1: It works that way, and so leverage would allow me 642 00:34:13,560 --> 00:34:16,279 Speaker 1: to scale my business really quickly. I go get a 643 00:34:16,280 --> 00:34:19,240 Speaker 1: bunch of new accounts, I go buy ten new service trucks, 644 00:34:19,480 --> 00:34:21,239 Speaker 1: I hire a bunch of new people. I scale my 645 00:34:21,239 --> 00:34:23,919 Speaker 1: business really quickly. But now if something were to happen 646 00:34:23,960 --> 00:34:26,680 Speaker 1: I lose some of those accounts, business drops now all 647 00:34:26,719 --> 00:34:29,359 Speaker 1: of a sudden. That leverage works in reverse, because now 648 00:34:29,400 --> 00:34:31,400 Speaker 1: I have ten new trucks I have to pay for. 649 00:34:31,719 --> 00:34:33,640 Speaker 1: I have all those employees have to pay for, And 650 00:34:33,680 --> 00:34:36,680 Speaker 1: so leverage allows me to scale up really fast. But 651 00:34:36,760 --> 00:34:39,120 Speaker 1: then if I don't handle it properly and I don't 652 00:34:39,120 --> 00:34:42,160 Speaker 1: know everything that could happen, it would also cause an 653 00:34:42,239 --> 00:34:44,880 Speaker 1: unwind that I may not be able to handle, and 654 00:34:44,920 --> 00:34:46,720 Speaker 1: that's what we're starting to see. We can see coin 655 00:34:46,760 --> 00:34:50,280 Speaker 1: Base Global, the public trade company. Their founder, Brian Armstrong, 656 00:34:50,320 --> 00:34:55,080 Speaker 1: had a personal fortune of thirteen point seven billion as 657 00:34:55,120 --> 00:34:58,480 Speaker 1: recently as a few months ago, and now that's just 658 00:34:58,600 --> 00:35:02,600 Speaker 1: two point two billion. Now, don't feel too bad for him. 659 00:35:02,600 --> 00:35:05,000 Speaker 1: He's he's just only worth two point two billion, but 660 00:35:05,000 --> 00:35:08,320 Speaker 1: down from thirteen point eight to two point two that quickly. 661 00:35:08,400 --> 00:35:11,000 Speaker 1: Now that still sounds like a lot. But you don't 662 00:35:11,040 --> 00:35:14,080 Speaker 1: know how much leverage he may have on those assets. 663 00:35:14,560 --> 00:35:17,360 Speaker 1: So he had thirteen billion, let's say that he levered 664 00:35:17,400 --> 00:35:19,840 Speaker 1: him by seven billion, which seemed like maybe a pretty 665 00:35:19,880 --> 00:35:22,520 Speaker 1: reasonable number. But now he's down to two point two. 666 00:35:22,680 --> 00:35:25,160 Speaker 1: If he can't cover the leverage on the seven billion 667 00:35:25,280 --> 00:35:28,040 Speaker 1: or the five billion, let's let's let's use it a 668 00:35:28,080 --> 00:35:30,440 Speaker 1: smaller number. I mean, let's say that he levered it 669 00:35:30,480 --> 00:35:33,560 Speaker 1: by you know, three billion, um a three out of 670 00:35:33,640 --> 00:35:36,360 Speaker 1: four almost fourteen billion. That's a small number. That seems 671 00:35:36,360 --> 00:35:38,200 Speaker 1: pretty reasonable. I think he should be able to handle that. 672 00:35:38,480 --> 00:35:40,520 Speaker 1: But then it shrinks down to only two point two 673 00:35:40,760 --> 00:35:42,440 Speaker 1: How can he handle that? Now? I'm not saying that 674 00:35:42,440 --> 00:35:44,920 Speaker 1: that Brian Armstrong from coin Base has leverage. I'm not 675 00:35:45,000 --> 00:35:46,719 Speaker 1: saying that at all, because I don't know him, nor 676 00:35:46,719 --> 00:35:48,640 Speaker 1: do I know if that's true. But you can see 677 00:35:48,680 --> 00:35:52,760 Speaker 1: how quickly UM, you can get yourself into trouble as 678 00:35:52,800 --> 00:35:55,360 Speaker 1: that leverage and wines Mike now Novograts, the CEO of 679 00:35:55,560 --> 00:35:58,120 Speaker 1: Galaxy Digital m had a fortune of eight and a 680 00:35:58,160 --> 00:36:00,359 Speaker 1: half billion in early November. Let's say that he levered 681 00:36:00,400 --> 00:36:02,600 Speaker 1: it by three billion dollars to go into Terra Luna, 682 00:36:02,640 --> 00:36:05,000 Speaker 1: which he got the tattoo of UM and now it's 683 00:36:05,000 --> 00:36:09,000 Speaker 1: worth two billions as as today. So again that's how 684 00:36:09,080 --> 00:36:14,120 Speaker 1: quickly you can get yourself into trouble, particularly in these markets, 685 00:36:14,239 --> 00:36:16,600 Speaker 1: like these these crypto markets. But like I said, there's 686 00:36:16,640 --> 00:36:19,760 Speaker 1: all this contagion that then it starts to pull down 687 00:36:19,920 --> 00:36:23,680 Speaker 1: other markets as well. I learned the hard way, and 688 00:36:23,719 --> 00:36:27,000 Speaker 1: hopefully you're learning from these lessons that I'm sharing with you. 689 00:36:27,680 --> 00:36:29,279 Speaker 1: It makes sense, But let me know. Hit me up 690 00:36:29,320 --> 00:36:31,279 Speaker 1: on social media. You can find me at number one 691 00:36:31,280 --> 00:36:34,000 Speaker 1: Mark Moss on Instagram and on Twitter. I'd love to 692 00:36:34,040 --> 00:36:36,480 Speaker 1: hear from you that you're listening to the show. UM, 693 00:36:36,719 --> 00:36:38,719 Speaker 1: send me a question. I try to answer every single 694 00:36:38,760 --> 00:36:40,640 Speaker 1: message I get on social media, So let me know 695 00:36:40,719 --> 00:36:42,919 Speaker 1: on there if you're just tuning in and you're listening 696 00:36:42,920 --> 00:36:44,719 Speaker 1: to the Market Mo Show. We're talking about bitcoin, we're 697 00:36:44,719 --> 00:36:48,279 Speaker 1: talking about cryptocurrencies, we're talking about the decentralized revolution. We're 698 00:36:48,280 --> 00:36:51,919 Speaker 1: talking about the intersection of politics, finance, and technology. Don't 699 00:36:51,920 --> 00:36:53,000 Speaker 1: go away, I'll be right back.