WEBVTT - Inflation Jumps - Bitcoin Dumps - Have We Found The Bottom? 0:00:00.000 --> 0:00:02.640 Hello, Welcome back to another episode of The Markmas Show, 0:00:02.640 --> 0:00:06.200 where we talk about the decentralized Revolution. Each and every 0:00:06.200 --> 0:00:09.240 week we bring you through what is happening around the world, 0:00:09.240 --> 0:00:11.480 trying to narrate it for you so it kind of 0:00:11.800 --> 0:00:13.640 makes sense of what's going on. Of course, I talked 0:00:13.640 --> 0:00:17.480 about the decentralized revolution, the way the world has been 0:00:17.960 --> 0:00:20.960 centralizing and now it's about to be decentralized that we 0:00:20.960 --> 0:00:22.760 can see it happening all over the world, and of course, 0:00:23.200 --> 0:00:27.560 UM it's being led by new technology like bitcoin and cryptocurrencies. 0:00:28.400 --> 0:00:31.200 You now in the in the bitcoin cryptocurrency space. Over 0:00:31.200 --> 0:00:34.480 the last couple of months, it's been been pretty bad 0:00:34.520 --> 0:00:37.840 for a lot of people. We've seen, UM a blow 0:00:37.920 --> 0:00:40.800 up similar to the Great Financial Crash, which I've covered 0:00:41.159 --> 0:00:44.680 UM at length. I know for a lot of people 0:00:44.720 --> 0:00:47.959 they got caught up in this crash and I and 0:00:48.000 --> 0:00:50.879 I I don't hope for anyone to lose money. It 0:00:50.920 --> 0:00:53.680 makes me sad to think of anybody that's being being 0:00:53.720 --> 0:00:56.560 hurt by this, and I've heard, unfortunately, I've heard countless 0:00:56.560 --> 0:01:00.600 stories of people that have lost everything. UM. I believe 0:01:00.600 --> 0:01:02.560 I've even heard of people taking their own lives over 0:01:02.640 --> 0:01:04.720 how much money they've lost. It's that bad. So I 0:01:04.720 --> 0:01:07.600 don't I don't wish that on anybody, UM, but I 0:01:07.640 --> 0:01:09.600 also hope that people learn their lessons from it. But 0:01:10.040 --> 0:01:13.080 for those people that might be caught up in the 0:01:13.680 --> 0:01:17.600 in the mix, there might be some good news hopefully. So, UM, 0:01:17.640 --> 0:01:19.240 I've kind of been keeping you up to date on 0:01:19.240 --> 0:01:21.560 what's going on, and we saw, um, you know, when 0:01:21.560 --> 0:01:26.000 this domino started dropping down, UM, bigger companies started getting 0:01:26.280 --> 0:01:29.000 getting caught up in this, and Celsius is one of 0:01:29.000 --> 0:01:32.080 those companies that really got up, got caught, got caught 0:01:32.200 --> 0:01:34.039 in this mess. You know. They had just way too 0:01:34.080 --> 0:01:39.000 much exposure to these risky protocols and they stopped letting 0:01:39.040 --> 0:01:42.120 withdrawals happen about a month ago. And UM, I've been 0:01:42.120 --> 0:01:43.440 trying to keep you up to date on this in 0:01:43.480 --> 0:01:46.600 case you have money that's locked up on there. And UM, 0:01:46.840 --> 0:01:49.440 while I don't want to falsely encourage you and tell 0:01:49.480 --> 0:01:52.600 you to hold your breath, I do you know there 0:01:52.720 --> 0:01:55.440 is maybe a little bit of hope. UM. In the beginning, 0:01:55.520 --> 0:01:57.920 when it first started happening with Celsius, they were in 0:01:58.000 --> 0:02:01.120 danger of getting their positions liquidated because bitcoin was falling 0:02:01.280 --> 0:02:04.160 so fast and they had wrapped up a bunch of 0:02:04.240 --> 0:02:07.440 bitcoin and locked it up on some of these defied protocols. 0:02:07.880 --> 0:02:11.600 And because it's in this defied decentralized finance protocols, um, 0:02:11.639 --> 0:02:15.280 there's transparency. So most of the people could see where 0:02:15.360 --> 0:02:19.320 that was apt and uh, you could see where their 0:02:19.400 --> 0:02:21.480 liquidation price. I think at the beginning when they first 0:02:21.520 --> 0:02:24.520 locked up withdraws, it was about eighteen thousand, so bitcoin 0:02:24.560 --> 0:02:27.840 had hit about eighteen thousand, Celsius would be liquidated. But 0:02:27.880 --> 0:02:31.880 then Celsius has been putting back more collateral, more collateral, 0:02:31.960 --> 0:02:35.840 more collateral onto the system to lower that liquidation level. 0:02:35.919 --> 0:02:37.680 Then they got it down to like fifteen, and then 0:02:37.720 --> 0:02:41.440 the thirteen, and then to like eight and then to five. 0:02:41.960 --> 0:02:45.840 And that's potentially good news if you have money locked 0:02:45.880 --> 0:02:49.240 on Celsius because they have Uh, well, it's good for everybody. 0:02:49.639 --> 0:02:52.320 Uh it's good for if you're in crypto at all. 0:02:52.760 --> 0:02:54.240 But if you have money locked up in there, it's 0:02:54.240 --> 0:02:58.560 it's potentially good because maybe if they don't get completely liquidated, 0:02:58.680 --> 0:03:01.679 maybe there's a chance you get money back again. Don't 0:03:01.680 --> 0:03:04.080 hold your breath, um, but maybe there's a little bit 0:03:04.080 --> 0:03:05.920 of hope there for you. It's also good for the 0:03:06.240 --> 0:03:10.320 bitcoin space, uh, even bigger, crypto space, even bigger, because 0:03:10.919 --> 0:03:13.640 if they got liquidated, it could instantly put a lot 0:03:13.720 --> 0:03:16.920 of bitcoin and cryptocurrencies onto the market and dump it 0:03:16.960 --> 0:03:19.160 at a time when there's very thin liquidity, and it 0:03:19.200 --> 0:03:22.040 could push the price down even lower. So we saw 0:03:22.080 --> 0:03:25.359 this week. It says Celsius pays off their last defied 0:03:25.560 --> 0:03:30.400 loan and reclaims nearly two hundred million of bitcoin from 0:03:30.760 --> 0:03:35.880 um Compound, which is a decentralized finance protocol. It says 0:03:35.880 --> 0:03:39.040 the troubled crypto lender previously paid off loans from Ave 0:03:39.280 --> 0:03:42.080 and Maker, and so basically what happens is, in order 0:03:42.080 --> 0:03:44.240 to get these loans, they had to put up they 0:03:44.240 --> 0:03:47.000 had overcollateralize them. So they had to put up, you know, 0:03:47.040 --> 0:03:49.000 about a hundred and fifty percent of the amount they 0:03:49.040 --> 0:03:51.720 wanted to borrow back. And these are on these like protocols, 0:03:51.960 --> 0:03:54.240 so there's nobody to call up and say like, hey, buddy, 0:03:54.520 --> 0:03:56.120 you know we've done business for a long time, can 0:03:56.160 --> 0:03:59.120 you hold off for a second. Um, there's no Uh, 0:03:59.320 --> 0:04:02.480 that's different. So Celsius is c FI centralized finance. These 0:04:02.520 --> 0:04:05.400 are defied decentralized finance. There's nobody to call and ask 0:04:05.480 --> 0:04:07.480 if they could give you a favor, UM, And so 0:04:08.040 --> 0:04:09.960 they paid them off from a they paid them off 0:04:09.960 --> 0:04:12.760 for maker, and now they paid them off from Compound. 0:04:13.280 --> 0:04:16.040 Now we can see that. Um. Like I said, they've 0:04:16.040 --> 0:04:20.200 been facing these liquidity problems, facing getting liquidated, but now 0:04:20.320 --> 0:04:22.839 they've been able to pay off this two million. They 0:04:22.880 --> 0:04:26.480 had paid down fifty million to Compound on Wednesday, and 0:04:26.600 --> 0:04:30.440 then that got them back ten thousand bitcoin, which was 0:04:30.520 --> 0:04:33.040 pretty pretty big number. Like I said, even if you 0:04:33.080 --> 0:04:36.200 don't have any money on these, still nice to not 0:04:36.480 --> 0:04:39.280 have to see ten thousand bitcoin get dumped into the 0:04:39.839 --> 0:04:42.440 UM into the market at one time, that'd be pretty bad. 0:04:43.839 --> 0:04:46.960 That was worth about a million current prices. So they 0:04:47.200 --> 0:04:51.160 with with fifty million paid down, they got access to 0:04:51.360 --> 0:04:55.760 about two hundred million back UM, which, like I said, 0:04:55.839 --> 0:04:59.919 maybe it is pretty good. Um. He said. The maneuver 0:05:00.000 --> 0:05:03.559 followed a similar treasury management tactic that Celsius used recently 0:05:03.600 --> 0:05:05.480 to pay out to fully pay off and closes loans 0:05:06.120 --> 0:05:09.520 from a van maker. The loans on these protocols are overcollateralized, 0:05:09.560 --> 0:05:11.599 me in the borrows to lock up. So we've already 0:05:11.640 --> 0:05:15.920 covered that now. UM. Is that a good thing or 0:05:16.000 --> 0:05:18.520 is it a bad thing, Well, there's could be potential 0:05:18.760 --> 0:05:22.240 legal problems from this, and the reason why is that, so, 0:05:22.960 --> 0:05:25.400 how are they able to pay these down? Where are 0:05:25.440 --> 0:05:28.280 they getting the money to do this? And if they 0:05:28.320 --> 0:05:31.080 have money to pay these down, why are they not 0:05:31.640 --> 0:05:34.440 giving money back to people who had money on the exchange? 0:05:34.440 --> 0:05:37.840 Why are they not paying back to positors. What happens 0:05:37.960 --> 0:05:40.160 is whenever you run into legal problems and you have 0:05:40.279 --> 0:05:42.280 to go into some sort of a restructuring or some 0:05:42.360 --> 0:05:47.240 sort of a reorganization, there's typically an order process of 0:05:47.320 --> 0:05:50.880 who gets their money back first. Now, typically creditors get 0:05:51.000 --> 0:05:56.159 money back before depositors, so UM in a traditional publicly 0:05:56.200 --> 0:06:00.360 traded company, for example, bondholders who are creditors would money 0:06:00.400 --> 0:06:05.279 back before equity holders or stockholders right um. Or for example, 0:06:05.920 --> 0:06:07.680 on a house you have like a first trustee, you 0:06:07.720 --> 0:06:09.839 could have a second trustee, the third, fourth, et cetera. 0:06:10.360 --> 0:06:12.360 And the first money would go to pay back the 0:06:12.480 --> 0:06:14.720 first trusteed, and then whatever is left we go to 0:06:14.800 --> 0:06:16.559 the second. If there's anything left goes to the third, etcetera. 0:06:16.640 --> 0:06:19.400 There's typically an order of that, and we can see 0:06:19.440 --> 0:06:22.120 that there's all types of legal questions that are being 0:06:22.200 --> 0:06:26.479 raised of who should get paid first, and there's an 0:06:26.520 --> 0:06:29.159 article that came out of Bloomberg that says the leaguered 0:06:29.160 --> 0:06:31.240 crypto lender has paid back a string of death totally 0:06:31.320 --> 0:06:35.440 more than nine hundred million, which is good except for 0:06:36.320 --> 0:06:40.680 should some of that llion gone back to the depositors. Well, 0:06:41.320 --> 0:06:42.920 it says the paydowns have raised the spectru of a 0:06:43.000 --> 0:06:47.039 legal debate on how and in what order should distress 0:06:47.120 --> 0:06:51.320 crypto companies payback creditors. Now, no matter what the typical 0:06:51.440 --> 0:06:53.480 order is, people are not going to be happy about this, 0:06:53.640 --> 0:06:55.440 and so it's definitely gonna be a legal debate and 0:06:55.520 --> 0:06:58.160 it's definitely going to bring all types of legal concerns 0:06:58.680 --> 0:07:01.599 about this, uh haiing back these platforms as we talked 0:07:01.600 --> 0:07:04.920 about Compound Maker, et cetera. So it's because the loans 0:07:04.920 --> 0:07:08.200 from defied platforms are often required to be overclatteralized. Doing 0:07:08.279 --> 0:07:10.840 so what allows Celsius to reclaim the extra coins locked 0:07:10.880 --> 0:07:13.800 on the platform, thus securing more assets on a net basis. 0:07:13.880 --> 0:07:17.720 So you know, they did pay out fifty million, but 0:07:17.760 --> 0:07:20.960 they got two hundred million back, so I guess that's 0:07:20.960 --> 0:07:25.440 a good thing. But it says like uh, like most things, 0:07:25.480 --> 0:07:28.440 crypto were an uncharted territory in terms of who shouldn't 0:07:28.480 --> 0:07:31.080 ultimately get paid back ahead of other parties, which is 0:07:31.160 --> 0:07:34.640 complicated by the smart contracts implicated and by the intertwined 0:07:34.680 --> 0:07:39.920 defined lending contractual relationships. So it says Celsius has been 0:07:39.960 --> 0:07:42.440 exploring options, including a restructure and of its liability. So 0:07:42.480 --> 0:07:44.920 they're trying to figure out how to restructure this. They 0:07:44.920 --> 0:07:47.040 can see who gets their money back. Now, from what 0:07:47.160 --> 0:07:49.280 I've been able to dig in and find out, it 0:07:49.360 --> 0:07:51.880 looks like Celsius was holding money in a couple different ways. 0:07:52.160 --> 0:07:55.640 So some people just had money deposited there, so Celsius 0:07:55.720 --> 0:07:58.200 was just holding it on their behalf. So I think 0:07:58.280 --> 0:08:00.800 if you just had money being deposited there, then that 0:08:01.040 --> 0:08:05.200 probably comes back first. Then if you were getting a loan, 0:08:05.520 --> 0:08:07.880 so you gave them collateral and they they gave you 0:08:07.960 --> 0:08:10.920 a loan back, that might be second. And if you 0:08:11.040 --> 0:08:13.400 gave them money and they were paying you yield back, 0:08:14.040 --> 0:08:16.480 that would probably be the last to get paid back. 0:08:16.560 --> 0:08:19.440 So it looks like depend on how you had money, 0:08:19.600 --> 0:08:20.880 or if you had money and how you had it 0:08:21.000 --> 0:08:23.480 on Celsius, that would be the order that you get 0:08:23.520 --> 0:08:26.760 paid back. Hopefully, maybe it depends on where you're at. 0:08:26.800 --> 0:08:29.200 There is that Celsius repaying some debt ahead of a 0:08:29.240 --> 0:08:32.960 potential bankruptcy raises the issue of so called quote unquote 0:08:33.000 --> 0:08:37.760 preference claims in a Chapter eleven bankruptcy, some creditors aren't 0:08:38.000 --> 0:08:41.880 supposed to end up better off than others. Quote. It's 0:08:41.880 --> 0:08:43.800 fair to say that any payments or exchange is made 0:08:43.960 --> 0:08:45.959 while not allowing creditors to get their money in the 0:08:46.080 --> 0:08:50.560 ordinary course of business or potentially subject to clawbacks in bankruptcy. 0:08:50.640 --> 0:08:54.880 So if Celsius gave you some money back and then 0:08:54.960 --> 0:08:57.840 through bankruptcy court they found they shouldn't have, they could 0:08:57.960 --> 0:09:00.600 come after you to get some of that money back. 0:09:00.720 --> 0:09:03.199 Something to keep in mind now, probably nobody listening to 0:09:03.240 --> 0:09:05.360 this is getting money back from Celsius. If you have, 0:09:05.440 --> 0:09:06.880 I'd love to hear from you. Hit me up on 0:09:06.920 --> 0:09:10.079 social media at one Mark Moss. That's at just the 0:09:10.160 --> 0:09:12.080 number one Mark Boss. I'm gonna come back. I got 0:09:12.120 --> 0:09:14.520 a whole lot more to cover today, talking about what's 0:09:14.559 --> 0:09:18.240 happening with cryptocurrencies, what's happened with the US Treasury, um 0:09:18.520 --> 0:09:20.920 happening in South Africa. There's been a whole lot of 0:09:20.960 --> 0:09:23.199 news this week. I got a lot to get through. Um, 0:09:23.400 --> 0:09:25.280 you're listening to the Mark Mos Show talking about the 0:09:25.320 --> 0:09:30.120 decentralized Revolution, talking about bitcoin, cryptocurrencies and macroeconomics. Be back 0:09:30.160 --> 0:09:31.840 with that and more in a minute. So don't go away, 0:09:32.240 --> 0:09:33.959 all right, welcome back. You are listening to the Mark 0:09:34.040 --> 0:09:37.280 Mass Show. We're talking about the decentralized Revolution. We're talking 0:09:37.280 --> 0:09:41.120 about bitcoin cryptocurrencies, We're talking about the macro economic picture 0:09:41.120 --> 0:09:44.040 of the world, the geopolitics picture of the world, and 0:09:44.400 --> 0:09:47.000 so much more. You know, I don't have a lot 0:09:47.040 --> 0:09:50.959 to dig into the geopolitics side today, um, but we 0:09:51.080 --> 0:09:52.480 have to look at all of that. I'm trying to 0:09:52.559 --> 0:09:55.679 really bring everything that's happening in the world today into context. 0:09:56.120 --> 0:09:59.360 And you have to understand what's happening with politics and 0:09:59.440 --> 0:10:03.240 the geopol Understand where the financial markets are moving, because 0:10:04.320 --> 0:10:07.920 unfortunately it's become very political. Um. And we can see 0:10:08.000 --> 0:10:12.240 some of that happening. UM. So, for example, we saw 0:10:12.720 --> 0:10:17.400 the US Treasury. So the United States has a central bank, 0:10:17.440 --> 0:10:19.920 the Federal Reserve, right, and then they also have the 0:10:20.040 --> 0:10:23.560 U S Treasury. Now, the Federal Reserve is a semi 0:10:23.800 --> 0:10:27.679 quasi private institution. It's kind of run by the banks. Um. 0:10:27.720 --> 0:10:30.280 There's a there's a lot to be said about that. Um, 0:10:30.400 --> 0:10:32.440 if you'd like to know more about that, you can 0:10:32.520 --> 0:10:33.839 hit me up on social media tell me you want 0:10:33.840 --> 0:10:35.960 me to talk about that more, or just check out 0:10:36.000 --> 0:10:38.719 the book The Creature from Jekyl Island. They really get 0:10:38.760 --> 0:10:40.760 into that. It's pretty good. Um. So, the FED is 0:10:40.800 --> 0:10:44.959 this kind of semi quasi private you know, institution that 0:10:45.280 --> 0:10:48.959 basically creates money from thin air, and they loan it 0:10:49.040 --> 0:10:52.120 to the banks, the commercial banks, and then the commercial 0:10:52.160 --> 0:10:54.880 banks create that money into existence. Now the government also 0:10:55.040 --> 0:10:58.040 needs money. The the US government is in debt thirty 0:10:58.160 --> 0:11:00.800 one trillion dollars. How do they get the Well, people 0:11:00.840 --> 0:11:02.640 have to loan it to them. So who loans it 0:11:02.720 --> 0:11:05.520 to them? Well, uh, if you have money and a 0:11:05.640 --> 0:11:07.920 pension fund or a four oh one K fund or 0:11:07.960 --> 0:11:09.920 something like that, there's a good chance there's a good 0:11:09.960 --> 0:11:12.400 chance you have loaned money to the US government. If 0:11:12.440 --> 0:11:14.680 you have bonds in your portfolio, there's a good chance 0:11:14.760 --> 0:11:17.319 you've loaned money to the government. Other nations loan money 0:11:17.360 --> 0:11:20.080 to the government. So Japan and China have loan money 0:11:20.080 --> 0:11:22.360 to the government by buying bonds. So when they buy 0:11:22.400 --> 0:11:25.240 the bonds, they do that. So how does the problem is? 0:11:25.320 --> 0:11:29.240 Is that the US government runs a deficit, meaning they 0:11:29.280 --> 0:11:32.760 have to live off debt, and they have less and 0:11:32.840 --> 0:11:36.680 less people wanting to loan them money. So the amount 0:11:36.679 --> 0:11:38.400 of the amount of people that want to loan money 0:11:38.400 --> 0:11:41.880 to the US government has been dropping. China doesn't want 0:11:41.880 --> 0:11:44.559 to lend money to the government anymore. Japan doesn't have 0:11:44.640 --> 0:11:47.160 any money to borrow, buy money, or lend money to 0:11:47.240 --> 0:11:50.520 the government anymore. So then who does Well, that's where 0:11:50.559 --> 0:11:52.880 the Federal Reserve comes in. So the Federal Reserve can 0:11:52.920 --> 0:11:54.319 create money from thin air and then loan it to 0:11:54.360 --> 0:11:58.160 the government. Pretty interesting, right, So that's uh, I broke 0:11:58.240 --> 0:11:59.800 I broke that down for you so you can understand. 0:11:59.800 --> 0:12:02.160 That's with the U. S. Treasury. The U. S. Treasury 0:12:02.679 --> 0:12:05.520 is the the accountant there, the CFO of the government 0:12:05.600 --> 0:12:07.480 right there, the bookkeeper whenever you want to call it. 0:12:08.679 --> 0:12:12.040 So the Treasury Department handles the money issuance. So these 0:12:12.080 --> 0:12:14.400 are the dollars, the coins that we have, and they 0:12:14.480 --> 0:12:17.600 also issue you know, the treasury there, the accounting department, 0:12:17.640 --> 0:12:20.920 so they manage who gets paid. Do we give out 0:12:21.000 --> 0:12:23.240 welfare U b I, do we give out you know, 0:12:23.320 --> 0:12:26.000 tax re rebase refunds? Right, And so they get the 0:12:26.040 --> 0:12:28.160 money out to the public. And this is why a 0:12:28.160 --> 0:12:29.800 lot of times people say that the federal Reserve isn't 0:12:29.800 --> 0:12:32.120 really inflationary because the federal Reserve can't get money to 0:12:32.280 --> 0:12:36.560 the public. The Federal Reserve can only get money, um, 0:12:36.640 --> 0:12:39.120 they can buy debt of the government and then the 0:12:39.200 --> 0:12:42.000 government can now put more money out into the public. 0:12:42.600 --> 0:12:44.120 And so that's just kind of the difference of the U. S. 0:12:44.200 --> 0:12:47.320 Treasury versus the follow Reserve. Now, the U. S. Treasury 0:12:49.040 --> 0:12:55.000 um has at times throughout history made their own currency. Um, 0:12:55.120 --> 0:12:57.960 they're talking about creating their own currency. Again. A lot 0:12:57.960 --> 0:13:01.000 of people that understand how that works think, so, wait 0:13:01.040 --> 0:13:04.920 a minute, why does the Treasury have to borrow money 0:13:04.960 --> 0:13:08.400 from the federal reserve that has no reserves. They're not 0:13:08.520 --> 0:13:11.960 federal and they have no reserves, And they basically loaned 0:13:12.080 --> 0:13:14.839 me money that they created from thin air. So why 0:13:14.920 --> 0:13:17.120 wouldn't I just create money from thin air? And if 0:13:17.120 --> 0:13:18.560 you ask that question, that would be a very good 0:13:18.640 --> 0:13:21.400 question to ask, and we'd all like to know the answer. Now, 0:13:22.160 --> 0:13:28.280 in history, there's been really one time in where the 0:13:28.320 --> 0:13:30.240 Treasury has said, you know what, we'll just make our 0:13:30.280 --> 0:13:34.559 own money. And they did. They were it was a 0:13:34.600 --> 0:13:36.360 type of money called a green back. Now a lot 0:13:36.400 --> 0:13:38.640 of people think that the green back is a slang 0:13:38.840 --> 0:13:40.480 term for the dollar, which it kind of is, but 0:13:40.559 --> 0:13:42.960 it was actually a different type of money. And that's 0:13:42.960 --> 0:13:46.000 when then President Abraham Lincoln said, we don't need to 0:13:46.240 --> 0:13:48.440 create borrow money from the FED. That creates it from 0:13:48.480 --> 0:13:50.320 thin air. Well, it wasn't the it wasn't the FED 0:13:50.360 --> 0:13:52.920 at the time. Sorry, it was the National Bank. But 0:13:53.120 --> 0:13:55.000 we'll we'll just create our our money, our green back, 0:13:55.040 --> 0:13:58.480 which they did. Of course Abraham Lincoln died. Might have 0:13:58.600 --> 0:14:02.079 a connection, maybe not. I'll leave that for you to 0:14:02.240 --> 0:14:04.600 decide and draw your own flight. Are your own lines there? 0:14:04.679 --> 0:14:09.439 But we've seen that the President Joe Biden he ordered 0:14:09.480 --> 0:14:14.600 he had an executive order in March on cryptocurrencies directed 0:14:14.679 --> 0:14:17.280 at the Treasury Department for them to take the lead 0:14:17.360 --> 0:14:21.800 among other government agencies and developing policy recommendations on cryptocurrency. 0:14:21.880 --> 0:14:23.440 So it's not up to the FED. A lot of 0:14:23.480 --> 0:14:25.760 times people would say, why would the central banks ever 0:14:25.880 --> 0:14:28.200 allow bitcoin to succeed? They don't want to give up 0:14:28.240 --> 0:14:31.280 control over the money. Well, the FED doesn't create laws. 0:14:31.960 --> 0:14:33.440 It's not up to the Fed to decide if they 0:14:33.480 --> 0:14:37.000 can let a succeed or not. The government they make 0:14:37.080 --> 0:14:40.360 the laws, and so here we have The President had 0:14:40.360 --> 0:14:43.360 an executive order in March directing the Treasury to come 0:14:43.440 --> 0:14:48.000 up with policy recommendations on bitcoin and cryptocurrencies. Now the Department, 0:14:48.040 --> 0:14:51.320 the State Department of the Treasury, has requested comments from 0:14:51.360 --> 0:14:55.360 the public on the potential opportunities and risks of digital 0:14:55.440 --> 0:15:00.400 assets and compliance with that executive order. So whenever whenever, 0:15:00.960 --> 0:15:03.640 a lot of times when the government is going to 0:15:03.880 --> 0:15:06.600 create new laws or policies and regulations, they'll put things 0:15:06.640 --> 0:15:08.720 out for a public comment so they can hear what 0:15:08.880 --> 0:15:11.600 the public has to say. It's not quite a vote, 0:15:11.680 --> 0:15:14.280 but at least they're getting information. So a lot of 0:15:14.320 --> 0:15:18.200 times you'll see you know, think tanks and you know 0:15:18.760 --> 0:15:21.760 law firms chime in on this. In the cryptocurrency space, 0:15:21.840 --> 0:15:24.680 it's been common in the past for individual users to 0:15:24.720 --> 0:15:27.480 start flooding on the comments, and that's kind of what's happening. 0:15:27.920 --> 0:15:30.160 And it says in a Tuesday announced with the Treasury 0:15:30.160 --> 0:15:32.280 said it was asking for input from the public that 0:15:32.360 --> 0:15:35.600 will quote inform its work in reporting to the President 0:15:35.640 --> 0:15:38.240 and possible implications of digital assets on the financial markets 0:15:38.320 --> 0:15:42.920 and payment infrastructures. UM so that's something that you can 0:15:43.000 --> 0:15:45.120 do if you would like your voice to be heard. 0:15:45.400 --> 0:15:47.280 It's not gonna be done at the ballot box with 0:15:47.360 --> 0:15:49.840 a vote, It's going to be done through comment like this. 0:15:50.560 --> 0:15:53.320 It says, quote. For consumers, digital assets may present potential 0:15:53.360 --> 0:15:57.480 benefits such as faster payments, as well as potential risks, 0:15:57.640 --> 0:16:03.480 including risks related to frauds and scams. There's always frauds 0:16:03.480 --> 0:16:07.440 and scams. If you need the government to protect you 0:16:07.600 --> 0:16:11.480 from being defrauded or scammed, you should probably go look 0:16:11.520 --> 0:16:15.000 in the mirror again. If you think the government can 0:16:15.040 --> 0:16:17.920 protect you from getting fraud or scammed. Uh, I have 0:16:17.960 --> 0:16:19.320 a bridge to tell you. I've been talking about that 0:16:19.320 --> 0:16:22.080 a lot to tay. Um says the Treasury is seeking 0:16:22.160 --> 0:16:24.040 to benefit from the expertise of the American people and 0:16:24.080 --> 0:16:27.160 market participants by soliciting public comment as we engage in 0:16:27.160 --> 0:16:32.600 the important work. Um, so is buying a lottery ticket 0:16:32.640 --> 0:16:34.160 like I be in a scam? I mean, what's the 0:16:34.240 --> 0:16:37.160 chance of you getting your money back? Uh? They don't 0:16:37.200 --> 0:16:40.160 stop that anyway. The public has until August eight to 0:16:40.240 --> 0:16:44.280 submit comments to the Treasury on what they believe would 0:16:44.280 --> 0:16:48.200 be the implications of this. It says that the potential 0:16:48.240 --> 0:16:51.000 impact of introducing new financial products and services. In addition, 0:16:51.320 --> 0:16:54.280 the Government Department requested Americans waigh in on potential risks, 0:16:54.360 --> 0:16:58.960 including losing private keys and the authenticity of digital assets. 0:17:00.160 --> 0:17:03.760 Think about that, um, The government requested Americans weigh in 0:17:03.800 --> 0:17:09.240 on the potential risks of losing your private keys. So 0:17:09.920 --> 0:17:14.119 the revolution. The revolution is that I can hold my 0:17:14.359 --> 0:17:18.359 assets in a way that can't be c stolen from me. 0:17:19.119 --> 0:17:22.480 And I do that by me taking personal responsibility and 0:17:22.560 --> 0:17:27.000 holding my cryptographic key. I don't have to I can 0:17:27.160 --> 0:17:28.720 I don't have to buy it, I can leave it, 0:17:29.000 --> 0:17:30.920 let someone else management key. But but I have the 0:17:30.960 --> 0:17:34.280 ability to hold my key. But if you lose your key, 0:17:34.560 --> 0:17:36.879 then you know, then you lose your key. So they 0:17:36.920 --> 0:17:38.639 want to They want Americans to weigh in on the 0:17:38.840 --> 0:17:41.720 risks of losing your private key. So if everyone says, well, 0:17:41.760 --> 0:17:43.640 it's way too risky, it's way to risk you should 0:17:43.640 --> 0:17:44.920 do something about feel that they're going to make it 0:17:44.960 --> 0:17:48.560 illegal for you to hold your own keys. Now, think 0:17:48.640 --> 0:17:51.560 long and hard about that. That's what they're talking about. 0:17:51.680 --> 0:17:54.440 That's their words, not mine. Man. You listen to the 0:17:54.480 --> 0:17:57.200 Marktmas show. We're talking about the decentralized Revolution. We're talking 0:17:57.200 --> 0:18:02.120 about bitcoin, cryptocurrencies, macroeconomics, politics as well, talking about US 0:18:02.200 --> 0:18:05.520 Treasury deciding whether you should use cryptocurrencies or if they're 0:18:05.560 --> 0:18:07.600 too risky. I got a lot more to cover in 0:18:07.680 --> 0:18:09.280 a minute when I come back, so don't go away. 0:18:09.320 --> 0:18:11.680 I'll be right back. Hello, welcome back. You are listening 0:18:11.760 --> 0:18:15.720 to the Markma Show. We're talking about the Decentralized Revolution. 0:18:15.800 --> 0:18:20.120 We're talking about bitcoin cryptocurrencies, We're talking about geopolitics, we're 0:18:20.160 --> 0:18:24.000 talking about macroeconomics. We just got done talking about the 0:18:24.440 --> 0:18:29.280 politics side, talking about the Biden administration and the Treasury um. 0:18:30.400 --> 0:18:33.080 And you know how they want to protect you from 0:18:33.200 --> 0:18:38.600 the risks that are in the bitcoin cryptocurrency space. And 0:18:38.680 --> 0:18:42.200 it's not just the US government that wants to protect 0:18:42.359 --> 0:18:46.399 you from your own self. We see in other countries 0:18:46.440 --> 0:18:50.040 as well. The thought of needing the government to protect 0:18:50.200 --> 0:18:54.360 me from myself it kind of makes me mad. I mean, 0:18:56.160 --> 0:18:59.560 the fact that anybody would need would want I should 0:18:59.600 --> 0:19:02.320 say I could see, I could see that some people 0:19:02.520 --> 0:19:07.200 may want it. But the fact that anybody thinks they 0:19:07.400 --> 0:19:11.480 need the government to protect them from theirselves, I guess 0:19:11.520 --> 0:19:13.159 it just kind of shows you where we're at in 0:19:13.200 --> 0:19:18.160 the world today where you know, with great freedom comes 0:19:18.280 --> 0:19:23.840 great responsibility, Like if I have the freedom to hurt myself, 0:19:23.960 --> 0:19:28.160 I have to be responsible enough not to hurt myself. Um. 0:19:29.119 --> 0:19:32.119 I guess the government could take away my freedom to 0:19:32.160 --> 0:19:34.200 hurt myself and they don't have to have the responsibility 0:19:34.240 --> 0:19:35.600 of being able to hurt myself. But is that the 0:19:35.680 --> 0:19:40.200 world that you want to live in? But some people 0:19:40.280 --> 0:19:45.200 do It's it's insane, So I guess the government needs 0:19:45.200 --> 0:19:47.080 to keep doing that. But it seems in saying to me, 0:19:47.119 --> 0:19:48.560 I'd love to hear your thoughts. Hit me up on 0:19:48.600 --> 0:19:50.720 social media at one Mark Moss, just at the number 0:19:50.760 --> 0:19:52.880 one Mark Moss, hit me up on Twitter or Instagram. 0:19:53.000 --> 0:19:54.399 Let me know what you think on that. But we 0:19:54.440 --> 0:19:56.879 can see it's happening in South Africa. This week we 0:19:56.920 --> 0:20:01.240 saw the same thing. Um. The South Africa's Reserve Bank 0:20:01.680 --> 0:20:06.439 will regulate cryptocurrencies as financial assets, and new laws are 0:20:06.520 --> 0:20:09.200 expected to come in over the next twelve months. Now 0:20:10.359 --> 0:20:13.399 regulating as financial assets, I suppose that's okay. That's how 0:20:13.440 --> 0:20:16.359 they're regulated the United States already as financial assets. So 0:20:16.480 --> 0:20:19.360 a lot of people get confused by this. Um. Basically, 0:20:19.560 --> 0:20:21.720 if you buy and sell bitcoin and cryptocurrencies. It's no 0:20:21.760 --> 0:20:24.920 different than buying selling stocks, buying selling gold, buy and 0:20:25.000 --> 0:20:27.359 selling real estate. It's the same thing. It's not a 0:20:27.400 --> 0:20:29.920 big deal. Your normal tax advisors fuel to help you 0:20:30.000 --> 0:20:33.240 with that. UM. It's being taxed as property financial assets. 0:20:33.280 --> 0:20:37.600 Now UM, they're they're similar to that, but they're not that, 0:20:37.800 --> 0:20:41.840 which is where the problem comes in. UM. Bitcoin and 0:20:41.920 --> 0:20:47.119 cryptocurrencies could be and and I believe they will be 0:20:47.480 --> 0:20:51.879 used as payment as currencies. They already are UM throughout 0:20:51.920 --> 0:20:54.800 the world, mostly developing markets, which they definitely are an 0:20:54.840 --> 0:20:58.680 El Salvador where it's actually legal tender UM in the 0:20:58.800 --> 0:21:02.639 Central African Republic they are UM. In Central America they 0:21:02.680 --> 0:21:06.359 are El Salvador. As they said, Panama they are UM. 0:21:06.400 --> 0:21:07.720 In the United States they are as well. A lot 0:21:07.760 --> 0:21:11.800