WEBVTT - The Mark Moss Show Oct 13, 2021 0:00:00.040 --> 0:00:02.040 All right, welcome back. You are listening to the Mark 0:00:02.160 --> 0:00:04.840 Moa show where I talk about bitcoin, cryptocurrencies and the 0:00:04.920 --> 0:00:08.479 decentralized revolution, giving you the information that you need to 0:00:08.520 --> 0:00:13.280 take advantage of the biggest wealth transfer that we'll ever see. Now. 0:00:13.680 --> 0:00:16.680 Before the break, I was talking about UM, the Federal Reserve, 0:00:16.720 --> 0:00:17.960 I was talking about the Central Bank. I was talking 0:00:17.960 --> 0:00:20.320 about government's talking about the debt ceiling UM and how 0:00:20.480 --> 0:00:22.239 every couple years we get this song and dance about 0:00:22.239 --> 0:00:24.840 the debt ceiling, And then I was going into what 0:00:25.160 --> 0:00:29.200 more debt means, specifically in regards to your wealth, how 0:00:29.240 --> 0:00:31.920 you build wealth um, and then of course how that 0:00:32.080 --> 0:00:35.559 is a driver to bitcoin. So I was asking the question, um, 0:00:36.000 --> 0:00:41.440 our US home prices expensive or cheap right now? And 0:00:41.479 --> 0:00:43.040 I'm going to tell you the answer to that. So 0:00:43.320 --> 0:00:46.280 the answer to that is, actually, first you have to 0:00:46.360 --> 0:00:49.680 ask a different question, Our U s home price is 0:00:49.720 --> 0:00:54.320 expensive or cheap compared to what, but also more importantly 0:00:54.920 --> 0:00:58.560 priced in what now? Remember I said that before the break, 0:00:58.600 --> 0:01:00.960 I said that the value you of your home hasn't 0:01:01.040 --> 0:01:04.560 gone up. The value of the dollar went down, so 0:01:04.680 --> 0:01:06.440 it takes more dollars to buy the home today. So 0:01:07.200 --> 0:01:09.560 when I say our U S home price is cheap 0:01:09.640 --> 0:01:12.480 or expensive than I would say, priced in what well, 0:01:13.040 --> 0:01:16.240 priced in US dollars, which, of course we dominant denominate 0:01:16.240 --> 0:01:17.760 everything in US dollars. If you're in the U S 0:01:18.160 --> 0:01:20.720 and even most of the world priced in US dollars, 0:01:20.800 --> 0:01:23.520 homes have never been more expensive. Okay, that's the answer. 0:01:23.640 --> 0:01:27.040 They're more expensive. But what if we priced them in 0:01:27.240 --> 0:01:30.000 something else? Because remember, at the end of the day, 0:01:30.040 --> 0:01:32.400 everything is a trade. If I go to the store, 0:01:32.640 --> 0:01:35.560 I'm going to trade them my dollars for their product. 0:01:35.959 --> 0:01:39.880 Right now, if we're trading stocks or trading cryptocurrencies, I 0:01:40.000 --> 0:01:42.919 might trade one Ethereum token for a light coin token, 0:01:43.520 --> 0:01:46.120 or one Ethereum token for a bitcoin token, or one 0:01:46.240 --> 0:01:49.160 light coin for a bitcoin and so everything's a trade, right. Um, 0:01:49.200 --> 0:01:52.040 It's like like a barter system. Money is the piece 0:01:52.080 --> 0:01:54.840 in the middle. So if I price it in dollars, 0:01:54.960 --> 0:01:57.440 it's never been more expensive. But what if I price 0:01:57.520 --> 0:02:00.320 it in something else? So if we go back, uh, 0:02:01.640 --> 0:02:04.080 before the break I was talking about, the gold standard 0:02:04.160 --> 0:02:06.440 got severed in nineteen seventy one, so we started printing 0:02:07.240 --> 0:02:09.160 hundreds of chillions dollars after that. So if we go 0:02:09.240 --> 0:02:11.720 to nineteen seventy. The year before that happened, the median 0:02:11.840 --> 0:02:17.239 home price was worth about um, shoot, I thought I 0:02:17.280 --> 0:02:19.240 had that exact number. I think it was worth about 0:02:20.480 --> 0:02:24.120 about forty dollars um. Today the median home price is 0:02:24.160 --> 0:02:27.040 worth about three hundred and fifty thousand dollars, So in 0:02:27.240 --> 0:02:31.480 U S dollars it's way more expensive. But in nineteen seventy, 0:02:31.840 --> 0:02:35.239 the median home price was about forty dollars. But it 0:02:35.360 --> 0:02:40.480 was also six hundred and forty six ounces of gold. Well, okay, Well, 0:02:40.560 --> 0:02:41.840 if I was gonna buy it in gold would be 0:02:41.840 --> 0:02:45.680 sixty six ounces. Today it's a hundred and ninety four 0:02:45.680 --> 0:02:48.760 ounces of gold. Hm hmmm. So you're saying, if I 0:02:48.880 --> 0:02:51.440 was just storing my my wealth and gold, homes are 0:02:51.480 --> 0:02:53.760 actually cheaper. They're actually less than half the price they 0:02:53.840 --> 0:02:56.160 used to be. Yep, that's what I'm saying. Well, what 0:02:56.240 --> 0:02:59.160 about something else? Well, what if in nineteen seventy, what 0:02:59.280 --> 0:03:01.000 if I stored my wealth and oil. A lot of 0:03:01.040 --> 0:03:03.280 people buy oil, I own oil I own. Actually I'm 0:03:03.320 --> 0:03:04.840 part of an oil field, and I'm a GP in 0:03:04.880 --> 0:03:06.880 an oil field. Um, so what if I store my 0:03:06.960 --> 0:03:09.640 wealth in oil? Well, in nineteen seventy was six thousand, 0:03:09.760 --> 0:03:12.440 seven hundred of oil for the mediat home price. Today 0:03:12.520 --> 0:03:16.519 in two it's four thousand six, so it's not quite 0:03:16.560 --> 0:03:19.359 half the price, but it's still much cheaper in oil. Okay, 0:03:19.840 --> 0:03:22.120 what if I used rice? What if I'm a rice 0:03:22.200 --> 0:03:24.239 farmer and I store my wealth and rice. Well, in 0:03:24.360 --> 0:03:29.880 nineteen seventy was forty three thousand tons of rice, and 0:03:29.960 --> 0:03:33.079 today it's twenty seven thousand pounds or tons of rice, 0:03:33.880 --> 0:03:37.960 so it's actually gotten cheaper. Homes are cheaper in rice. Okay, 0:03:38.480 --> 0:03:40.440 that's stupid, mark. Nobody's going to store their wealth and 0:03:40.480 --> 0:03:43.400 oil or gold, I guess. So what about I store 0:03:43.480 --> 0:03:45.440 my wealth in the in the SMP five hundred in 0:03:45.440 --> 0:03:49.400 the stock market? Okay, Well, in nineteen seventy it would 0:03:49.400 --> 0:03:51.880 have taken two hundred and forty three shares of the 0:03:52.000 --> 0:03:54.760 SMP five hundred, and in two thousand twenty one it 0:03:54.880 --> 0:03:59.280 takes eighty shares of five So I would ask you 0:03:59.360 --> 0:04:03.320 the question again, our homes expensive or cheap? Today? Let's 0:04:03.360 --> 0:04:06.520 look at bitcoin. Now, um in bitcoin hasn't been around 0:04:06.560 --> 0:04:09.120 since nineteen seventy, but we can look at the two 0:04:09.200 --> 0:04:12.920 thousand ten price. So in two thousand ten it was 0:04:13.240 --> 0:04:16.920 seven hundred and seventy three thousand bitcoin to buy a 0:04:16.960 --> 0:04:21.120 house the median home price UM today in two one 0:04:21.200 --> 0:04:25.200 it's ten ten bitcoin. So again our homes cheaper expensive 0:04:26.279 --> 0:04:29.560 priced in what and so um. Two things that I'm 0:04:29.600 --> 0:04:32.320 hoping that you get out of this one what you 0:04:32.560 --> 0:04:36.800 store your wealth in matters, and it matters big time, 0:04:37.080 --> 0:04:39.599 as you can tell now to show you an example 0:04:39.640 --> 0:04:43.600 of that, in nineteen seventy it took fifty one thousand 0:04:43.760 --> 0:04:49.400 pounds of oranges to buy the median home price. Today 0:04:49.440 --> 0:04:55.080 it's two eighty thousand. So in dollars and oranges, homes 0:04:55.200 --> 0:04:59.880 have never been more expensive. But in gold, oil, smp F, 0:05:00.920 --> 0:05:04.800 rice and bitcoin they've never been cheaper. And if you're 0:05:04.880 --> 0:05:08.160 holding bitcoin, they have they've never been I mean, it 0:05:08.279 --> 0:05:11.560 was seven almost three quarters of a million bitcoin ten 0:05:11.640 --> 0:05:14.240 years ago and today it's ten. And so what you 0:05:14.320 --> 0:05:16.880 store your wealth and matters. And also I'm trying to 0:05:16.960 --> 0:05:20.320 show hoping to your kitchen catching on here that the 0:05:20.480 --> 0:05:24.120 more dollars the government and the central banks print, the 0:05:24.279 --> 0:05:27.800 more they raise the debt ceiling, the less your dollars 0:05:27.920 --> 0:05:32.360 can buy, the less they're worth. They're worth less, worthless, right, 0:05:32.680 --> 0:05:34.200 they continue to buy more and more and more, and 0:05:34.279 --> 0:05:37.440 so you need to start looking at things like that. 0:05:37.640 --> 0:05:40.120 Where you store your wealth matters. And so if you're 0:05:40.560 --> 0:05:43.000 unfortunately in the poorer right, you're getting poorer and poor 0:05:43.040 --> 0:05:45.200 while the rich get richer and richer. Um, you've probably 0:05:45.200 --> 0:05:47.000 seen the headlines. I mean, they're they're trying to get 0:05:47.040 --> 0:05:51.400 everybody divided against each other. So everybody's against their their 0:05:51.480 --> 0:05:53.679 their counterpart at these days, and so there's this attack 0:05:53.760 --> 0:05:55.680 on the rich, and so you know, everyone's like, well, 0:05:55.680 --> 0:05:58.720 the rich have profited since the pandemic, and um, you know, 0:05:58.839 --> 0:06:01.400 the top one percent and have gained a trillion dollars 0:06:01.440 --> 0:06:04.480 of wealth and blah blah blah. Well, if you would 0:06:04.520 --> 0:06:07.360 also own the same assets that they owned, then your 0:06:07.440 --> 0:06:10.240 wealth would have gone up by the same percentage. Now 0:06:10.640 --> 0:06:13.360 the dollar amount would be less, obviously because it's a percentage. 0:06:13.400 --> 0:06:15.600 So if i'm you know, if i'm if I'm if 0:06:15.600 --> 0:06:17.160 I don't have as much money and I have a 0:06:17.240 --> 0:06:20.320 thousand dollars invested and goes up by you know, the 0:06:20.360 --> 0:06:23.479 hunter bucks, if I have a hundred million invested at 0:06:23.520 --> 0:06:25.160 the ten per cent is a different number. But the 0:06:25.200 --> 0:06:29.040 point is is that you need to get your storage 0:06:29.279 --> 0:06:31.200 where you store your money out of dollars and you 0:06:31.320 --> 0:06:33.520 need to invest them like the rich. So that as 0:06:33.640 --> 0:06:36.440 the Fed continues to print more dollars, as they continue 0:06:36.440 --> 0:06:38.560 to put more money in, as those dollars continue to 0:06:38.680 --> 0:06:42.760 lose their purchasing power, your purchasing power will be going up. 0:06:43.120 --> 0:06:45.040 So that's that kind of rounds it out with the 0:06:45.080 --> 0:06:47.000 debt ceiling. Hopefully that that brings some clarity. By the way, 0:06:47.040 --> 0:06:49.200 you're listening to the markma Show where I talk about bitcoin, 0:06:49.279 --> 0:06:52.279 I talk about cryptocurrencies, I talk about the decentralized revolution 0:06:52.360 --> 0:06:54.480 that's going on, trying to bring you each and every 0:06:54.520 --> 0:06:57.680 week the asymmetric information that you need so you can 0:06:57.760 --> 0:07:01.240 play the biggest opportunity asymmetric oportunity will ever see in 0:07:01.279 --> 0:07:03.600 our lifetime. So, um, I was talking about the debt 0:07:03.640 --> 0:07:07.040 ceiling and how the government is uh squabbling over this. 0:07:07.160 --> 0:07:09.840 Will they raise it? Will they not? Of course I'm 0:07:10.120 --> 0:07:13.000 pretty sure they will. They always do, and so that 0:07:13.240 --> 0:07:14.880 is one of the big drivers on bitcoin. Now what's 0:07:14.920 --> 0:07:17.160 interesting about this A little side note is there was 0:07:17.200 --> 0:07:20.720 a video that came out from President Biden, and President 0:07:20.760 --> 0:07:24.600 Biden said, you don't he was there talking about the 0:07:24.600 --> 0:07:26.400 infrastructure Bild. Why are you trying to get a three 0:07:26.480 --> 0:07:30.520 point five trillion dollar infrastructure built together when we can't 0:07:30.520 --> 0:07:35.120 even pay the debt. And he said, I'll somewhat paraphrase it, 0:07:35.240 --> 0:07:38.920 and he said, let me be clear. He always likes 0:07:39.000 --> 0:07:42.680 to say that. Let me be clear. Um, the debt 0:07:42.800 --> 0:07:46.240 ceiling is not about the infrastructure spending. We need to 0:07:46.360 --> 0:07:48.480 raise the debt ceiling so we can take on more 0:07:48.600 --> 0:07:52.160 debt so we can pay off the old debt, all right. 0:07:52.240 --> 0:07:54.360 It has nothing to do with the infrastructure we need. 0:07:54.480 --> 0:07:56.040 If we don't raise the debt ceiling in the U, 0:07:56.120 --> 0:07:57.800 S could lose this credit. And so we need to 0:07:57.920 --> 0:08:00.920 raise the debt take on more debt to pay the 0:08:01.040 --> 0:08:05.960 old debt, which, if I'm not mistaken, is literally the 0:08:06.120 --> 0:08:10.560 definition of a Ponzi scheme, um, which sounds like what 0:08:10.720 --> 0:08:13.600 President Biden was explaining. As a matter of fact, the 0:08:13.800 --> 0:08:17.160 definition of a Ponzi scheme is just that it's an 0:08:17.200 --> 0:08:21.680 investment fraud that pays existing investors with funds collected from 0:08:22.120 --> 0:08:25.280 new investors. That's the definition. I'm reading it word for 0:08:25.360 --> 0:08:28.080 word from you right here. So it's a scheme that 0:08:28.200 --> 0:08:32.040 pays new investors with funds old investors, existing investors with 0:08:32.120 --> 0:08:34.680 funds collected from new investors. So when President Biden says 0:08:34.840 --> 0:08:38.360 we need to increase the debt limit, not for new spending, 0:08:38.440 --> 0:08:40.160 we need to increase it so we can pay off 0:08:40.880 --> 0:08:45.080 our existing debt. That's like you going to UH American 0:08:45.160 --> 0:08:47.720 Express or Visa and saying, I need a new credit 0:08:47.800 --> 0:08:50.920 card so I can pay my old credit cards. The 0:08:51.080 --> 0:08:53.720 chance of them giving you that credit is probably going 0:08:53.760 --> 0:08:56.120 to be pretty slim. And so that's the situation that 0:08:56.200 --> 0:08:58.679 we're that we're in, and I think more and more 0:08:58.760 --> 0:09:00.560 people are starting to wake up to at They're starting 0:09:00.559 --> 0:09:04.319 to recognize that the financial system is over indebted. Um, 0:09:04.400 --> 0:09:07.320 it's it's the Titanic. It's it's a sinking ship. Um, 0:09:07.720 --> 0:09:09.760 it's taking on water. There's no way to patch it 0:09:09.920 --> 0:09:13.880 right now, unfortunately. Um, the only option for the Titanic 0:09:14.000 --> 0:09:17.120 is the sink. And that's horrible. But you don't have 0:09:17.360 --> 0:09:19.600 to be on the Titanic as it's sinking. You can 0:09:19.679 --> 0:09:23.520 get onto a lifeboat. And that's what bitcoin provides. That's 0:09:23.559 --> 0:09:25.400 what we're talking about. I'm gonna show you some other 0:09:25.440 --> 0:09:27.559 factors that are pushing bitcoin when I get back. You're 0:09:27.559 --> 0:09:30.200 listening to the Mark Moss Show, and I'll be back 0:09:30.240 --> 0:09:33.760 with more on bitcoin. All right, you are back listening 0:09:33.800 --> 0:09:35.880 to the Mark Moa show where I talk about bitcoin. 0:09:35.960 --> 0:09:40.320 I talked about cryptocurrencies. I talk about the decentralized revolution 0:09:40.400 --> 0:09:44.120 that's happening. And I don't just talk about what they are. Um, 0:09:44.400 --> 0:09:47.240 I'm trying to tell you why. That's kind of my approach. 0:09:47.440 --> 0:09:50.600 Why why does it matter? Why do we care, why 0:09:50.679 --> 0:09:52.680 do we want to buy it? Why do we expect 0:09:52.720 --> 0:09:54.400 the price to go up in value? And all those 0:09:54.440 --> 0:09:57.240 other things. Before the break, I was talking about the 0:09:57.280 --> 0:10:00.280 debt ceiling. I was explaining how the more DA dollars 0:10:00.320 --> 0:10:03.440 that are created, the less they buy. The purchasing power 0:10:03.520 --> 0:10:07.040 goes down, and what you store your wealth in matters. 0:10:07.200 --> 0:10:08.960 That's the difference between the rich and the poor. Right. 0:10:09.040 --> 0:10:12.240 The rich store their wealth in assets, and as the 0:10:12.280 --> 0:10:15.240 Fed prints money, those assets go open value. The poor 0:10:15.480 --> 0:10:18.920 don't buy assets. They work for wages, and those wages 0:10:19.000 --> 0:10:21.520 continue to buy less and less and less because of 0:10:21.600 --> 0:10:25.160 the central banks continually printing more money. So that's a 0:10:25.240 --> 0:10:27.960 big one. As a matter of fact, really, the Federal 0:10:28.000 --> 0:10:31.320 Reserve is what's driving everything today. So we look at 0:10:31.360 --> 0:10:33.480 any of the markets and that's really what's causing it. 0:10:33.720 --> 0:10:36.560 But there's some other catalysts that happened. That's that's big, 0:10:36.679 --> 0:10:38.120 but it's a little bit smaller than that. So if 0:10:38.160 --> 0:10:40.439 I'm kind of coming down a little bit off of 0:10:40.520 --> 0:10:43.640 that um this this week we saw some big news. Now, 0:10:43.880 --> 0:10:45.600 if you've been with me since we started the show, 0:10:45.960 --> 0:10:48.120 you remember I talked about when we buy something like 0:10:48.200 --> 0:10:51.120 bitcoins and something like a new technology like this, there's 0:10:51.160 --> 0:10:53.360 really there's two indicators that we're trying to watch. Remember, 0:10:53.400 --> 0:10:55.160 the price, the short term price can be a distraction, 0:10:55.640 --> 0:10:57.160 and so what we really want to look at is 0:10:57.200 --> 0:11:00.520 two things. One are the network effects growing more people 0:11:00.640 --> 0:11:03.240 using it, because the more people use it, the more 0:11:03.400 --> 0:11:05.000 it's worth. And then we also want to look at 0:11:05.000 --> 0:11:07.160 the development that's happened on it. And so some big 0:11:07.200 --> 0:11:09.280 news came out this week that I think actually checks 0:11:09.480 --> 0:11:13.400 both of those boxes. Now, the news actually came out 0:11:13.480 --> 0:11:17.040 several months ago, but today the news is actually coming true. 0:11:17.120 --> 0:11:20.240 And so what that big news is is that the 0:11:20.360 --> 0:11:26.640 banking system, so we're talking about you know, Bank of America, Wells, Fargo, JP, Morgan, etcetera, etcetera, etcetera. 0:11:27.240 --> 0:11:31.079 They're seeing people pulling their money out of the banks 0:11:31.240 --> 0:11:34.439 and then going and buying bitcoin and cryptocurrencies with it. 0:11:35.120 --> 0:11:37.920 They're seeing people why are money from their banks over 0:11:38.000 --> 0:11:40.760 to coin base or or cracking or whatever it may be. 0:11:41.760 --> 0:11:45.600 And guess what, they don't really like that. They want 0:11:45.640 --> 0:11:48.240 to keep your money in the bank. They don't want 0:11:48.280 --> 0:11:50.840 you to send your money somewhere else. And so they're 0:11:50.880 --> 0:11:53.520 they're recognizing this. Now. The thing about a banking relationship 0:11:53.640 --> 0:11:56.480 is it's what we would call sticky. UM. That means 0:11:56.600 --> 0:11:59.400 that once you set up a bank account and you 0:11:59.480 --> 0:12:02.840 establish a andcy relationship, you typically keep it right, you stay, 0:12:02.920 --> 0:12:05.959 you stay in it. UM. I know that I've been 0:12:06.080 --> 0:12:08.439 with Bank of America. I'm sorry. I've been with Wells 0:12:08.440 --> 0:12:11.439 Fargo since I got my very first bank account. UM. 0:12:11.840 --> 0:12:15.160 I don't particularly like them. I've they've been accused, not 0:12:15.280 --> 0:12:18.959 just accused, but they've paid out the largest settlements for wrongdoing. UM. 0:12:19.360 --> 0:12:20.719 So they're probably not the best bank to be with. 0:12:20.880 --> 0:12:22.599 But you know what, for me to go close my 0:12:22.640 --> 0:12:24.520 accounts and go upen new ones, this is too much, right, 0:12:24.640 --> 0:12:28.679 it's sticky. They have me. But if I pull my 0:12:28.760 --> 0:12:31.480 money out and I start using Cracking as a bank, 0:12:31.559 --> 0:12:33.080 and I can hold bitcoin and I can send them 0:12:33.080 --> 0:12:35.280 receive payments and dollars and all those things. Then I'll 0:12:35.320 --> 0:12:37.600 probably never come back once I make the switch, I'll 0:12:37.600 --> 0:12:40.560 never come back. So the banks recognize this and they shoot, well, 0:12:40.600 --> 0:12:43.800 we got to do something, So, um, why don't we 0:12:44.520 --> 0:12:48.880 offer cryptocurrencies inside the bank, Like we already have their money? 0:12:49.280 --> 0:12:50.880 Why do we let them pull it out and send 0:12:50.920 --> 0:12:52.800 us them world? Why don't we just sell them cryptocurrencies 0:12:52.840 --> 0:12:56.120 inside of her? And so that's exactly what is happening. Um. 0:12:57.040 --> 0:12:58.959 There's a company called night digg and my d I 0:12:59.120 --> 0:13:01.760 G nightgg and they announced a few months ago. Um 0:13:02.040 --> 0:13:04.680 they run back off the services for banks, and then 0:13:04.720 --> 0:13:06.240 anouked a couple of months ago that they were going 0:13:06.360 --> 0:13:11.720 to UM work with I think it was three hundred banks, 0:13:11.760 --> 0:13:15.720 which service like three hundred million checking accounts. Is it's 0:13:15.760 --> 0:13:18.079 been a few months I report on this, but a 0:13:18.120 --> 0:13:22.480 few hundred million checking accounts would have access to buy, sell, 0:13:22.960 --> 0:13:27.199 and store cryptocurrencies right in their checking account. Now, UM, 0:13:27.720 --> 0:13:29.360 that might be bad for the coin bases and the 0:13:29.400 --> 0:13:31.240 crackings of the world. It's good for the banks because 0:13:31.240 --> 0:13:34.880 they keep their custody um or their customer. But the 0:13:34.960 --> 0:13:38.800 big winner, of course is the cryptocurrency acid itself. Right, 0:13:38.840 --> 0:13:41.360 we're talking about adoption. Remember Metcalf's law we talked about 0:13:41.400 --> 0:13:44.679 when we first opened up, and so, um, they announced 0:13:44.679 --> 0:13:45.720 that that was going to take the place, and they 0:13:45.760 --> 0:13:47.800 said that they would do that before the end of 0:13:47.880 --> 0:13:50.800 the year. Now, I talked to many of the insiders 0:13:50.840 --> 0:13:52.880 I have inside the banks, and they told me they 0:13:52.920 --> 0:13:55.120 didn't think it was going to happen. Um, They're like, 0:13:55.679 --> 0:13:57.280 do you know how slow banks move. Do you think 0:13:57.320 --> 0:13:58.920 they're literally gonna be able to do this inside of 0:13:58.960 --> 0:14:01.400 six months, like change the whole system around. And I 0:14:01.480 --> 0:14:03.200 kind of believed them, you know, It's like, well, they 0:14:03.240 --> 0:14:04.719 announced it, they said they're going to do by the 0:14:04.760 --> 0:14:07.600 end of the year. But yeah, you're right, Like banks 0:14:07.640 --> 0:14:10.760 can't even update their their their computer networks, Like, yeah, 0:14:10.760 --> 0:14:13.520 they're probably gonna do it. Well, we were both wrong 0:14:13.720 --> 0:14:17.040 in a sense because this week we saw US Bank 0:14:17.640 --> 0:14:22.360 launch their bitcoin custody service um and to and to 0:14:22.480 --> 0:14:25.360 cater to these cryptocurrencies. So US Bank is the fifth 0:14:25.600 --> 0:14:29.240 biggest retail bank in the nation, and on Tuesday they 0:14:29.280 --> 0:14:33.600 announced that their crypto cryptocurrency custody service is now available 0:14:33.760 --> 0:14:36.960 to fund managers. Now, at first, it's just available to 0:14:37.000 --> 0:14:40.040 fund managers of course, this will come as they get 0:14:40.080 --> 0:14:42.320 the bugs worked out, the kinks worked out, litrical, this 0:14:42.400 --> 0:14:44.960 down to everybody else and so UM. They announced it 0:14:44.960 --> 0:14:46.440 a few months ago, they said they'd be done by 0:14:46.440 --> 0:14:47.960 the end of the year, and here it is. We're 0:14:47.960 --> 0:14:50.640 seeing at the fifth biggest retail bank in the nation 0:14:51.040 --> 0:14:53.800 has done that. UM. And so they're offering help for 0:14:53.880 --> 0:14:58.280 investment managers to store their private keys for Bitcoin, Bitcoin Cash, 0:14:58.600 --> 0:15:01.520 and lightcoin UM. Those are the three coins that they 0:15:01.560 --> 0:15:04.320 started with right now. UM. They said that they will 0:15:04.720 --> 0:15:08.120 try to support other coins UM over time, but for 0:15:08.320 --> 0:15:10.160 right now, it's just those And like I said, for 0:15:10.360 --> 0:15:14.400 right now, it's just to cater to institutional investors UM. 0:15:14.640 --> 0:15:18.240 But again, as they get this program going, it will 0:15:18.280 --> 0:15:21.200 continue to UM to spread down to the lower level. Now, 0:15:21.240 --> 0:15:23.440 what's important about this is that there's a lot of 0:15:23.600 --> 0:15:28.480 institutional investors fund managers who have not been buying bitcoin 0:15:28.600 --> 0:15:31.720 because of the custody solution. So if you're not familiar 0:15:31.720 --> 0:15:34.520 with what I'm talking about, let me explain custody for 0:15:34.600 --> 0:15:36.640 just a minute. Now. UM. You are listening to the 0:15:36.680 --> 0:15:39.680 markma Show where I talk about bitcoin, cryptocurrencies and the 0:15:39.720 --> 0:15:44.240 decentralized revolution and UM. The The unique thing about bitcoin 0:15:44.320 --> 0:15:47.440 compared to any other asset in the world is that 0:15:47.680 --> 0:15:51.080 I can take custody of it. So um, of course, 0:15:51.440 --> 0:15:53.240 you know, if I buy gold, I can take custody 0:15:53.280 --> 0:15:55.080 of gold, and so I can put that in my bank. 0:15:55.160 --> 0:15:57.080 And so that's why gold has been good money for 0:15:57.200 --> 0:16:01.520 five thousand years. Um. When I old gold in my 0:16:01.680 --> 0:16:03.920 own safe, or I bury it in the ground, I 0:16:03.960 --> 0:16:06.320 have a map for or whatever. Um, when I hold 0:16:06.360 --> 0:16:09.440 the gold, I have it. Right. It's like a custody 0:16:09.520 --> 0:16:11.000 is nine tenths of the law or something right, So 0:16:11.120 --> 0:16:13.800 like I own it. Um. When I own a stock, 0:16:13.920 --> 0:16:16.240 for example, so I own a share of apple stock, 0:16:16.360 --> 0:16:19.480 let's just say, um, and it's in my E trade account. Well, 0:16:20.080 --> 0:16:24.000 I don't actually own apple stock. And this is this 0:16:24.120 --> 0:16:25.560 is a big deal, and it doesn't seem like a 0:16:25.600 --> 0:16:28.040 big deal at first, But what that means is that 0:16:28.360 --> 0:16:31.440 I don't actually own the apple stock. The apple stock 0:16:31.600 --> 0:16:35.000 is owed to me. So so E Trade, for example, 0:16:35.040 --> 0:16:38.840 would owe me the apple stock. So I own an 0:16:38.880 --> 0:16:42.160 I owe you, not the stock. The reason why that's 0:16:42.200 --> 0:16:45.720 important is because legally I don't actually own it. It's 0:16:45.760 --> 0:16:48.840 owed to me. And that means that if they you know, 0:16:49.080 --> 0:16:51.760 go bankrupt or something like that. They don't have to 0:16:51.800 --> 0:16:53.720 give it to me. They could default on the debt 0:16:53.800 --> 0:16:56.560 that they owe to me. Versus, if I hold gold 0:16:56.640 --> 0:17:00.840 in my safe, there's no counterparty. Nobody is that to me, right, 0:17:00.880 --> 0:17:03.640 So that's the big thing. That is what's revolution right now. 0:17:03.800 --> 0:17:06.720 The problem with stocks is that UM each trade doesn't 0:17:06.720 --> 0:17:09.120 own the stock either, it's owed the stocked by somebody else, 0:17:09.160 --> 0:17:11.359 which is stocked by somebody else. And there's about six 0:17:11.680 --> 0:17:15.359 layers in between the company Apple and myself. There's about 0:17:15.359 --> 0:17:18.840 six people that each have a liability and an asset 0:17:18.920 --> 0:17:21.600 at the same time. So if anybody in that chain 0:17:21.800 --> 0:17:25.359 were to um, you know, find become insolvent, whatever, then 0:17:25.640 --> 0:17:28.800 all of those people lose that asset UM. But bitcoin 0:17:28.920 --> 0:17:30.760 is more like gold where it allows me to take 0:17:30.840 --> 0:17:33.479 custody of that asset with no counterparty. Another reason why 0:17:33.600 --> 0:17:36.440 it's different than gold is that it's also portable. So 0:17:36.600 --> 0:17:38.680 having a lot of gold is very difficult to take 0:17:38.760 --> 0:17:40.960 a round with you. So I want to explain what 0:17:41.280 --> 0:17:45.760 US bank is doing to help customers on board with custody, 0:17:45.920 --> 0:17:47.240 and why this is coming for the rest of the 0:17:47.280 --> 0:17:51.240 banks UM, and why this is about to explode user 0:17:51.280 --> 0:17:54.399 adoption throughout the country. Now, this is a trend that 0:17:54.440 --> 0:17:56.480 you want to what we call front run. You want 0:17:56.520 --> 0:17:59.119 to get in front of it because when that herd 0:17:59.240 --> 0:18:02.399 comes in, you want to be already in position. So 0:18:02.480 --> 0:18:04.200 we'll talk about that as soon as I get back. 0:18:04.600 --> 0:18:07.040 You are listening to the Mark Moss Show where I 0:18:07.119 --> 0:18:12.560 talk about bitcoin, cryptocurrencies, the decentralized Revolution. Here with Mark Moss, 0:18:12.600 --> 0:18:14.840 and I'll be right back. All right, Welcome back. You 0:18:14.920 --> 0:18:17.400 are with Mark Moss listening to the Mark mass Show 0:18:17.600 --> 0:18:19.960 where I talk about h and every week I talk 0:18:20.000 --> 0:18:23.119 about Bitcoin, I talked about cryptocurrencies, I talk about the 0:18:23.200 --> 0:18:27.639 decentralized revolution. It is literally the biggest opportunity. It is 0:18:27.840 --> 0:18:31.120 the greatest wealth transfer that you will ever see, will 0:18:31.200 --> 0:18:34.680 ever see anyone in our lifetime, will ever see. The 0:18:34.720 --> 0:18:36.600 way to take advantage of it and not get shaken 0:18:36.640 --> 0:18:39.240 out by is to have this information that I'm gonna 0:18:39.240 --> 0:18:40.880 bring to you every week. So take a look real 0:18:40.960 --> 0:18:43.040 quick at what station you're listening to me on, put 0:18:43.080 --> 0:18:45.720 it on your calendar for this date, this time, and 0:18:45.800 --> 0:18:48.080 market downst here with me each and every week. It 0:18:48.119 --> 0:18:51.119 could literally be life changing information that I give to you. 0:18:52.080 --> 0:18:54.440 Lookay and my name is Mark Moss. Uh. If you're 0:18:54.480 --> 0:18:57.160 on Twitter, give me a follow. It's one Mark Moss. 0:18:57.280 --> 0:19:00.119 That's right, one Mark Moss on Twitter. UM at me, 0:19:00.840 --> 0:19:02.639 I mean, send me a question. I'd love to get 0:19:02.640 --> 0:19:05.640 your questions. I'll answer them on the next episode next week. 0:19:06.119 --> 0:19:08.639 Go ahead and shoot that over to me. If anything 0:19:08.720 --> 0:19:12.119 I'm saying is causing some curiosity and you have some questions, 0:19:12.160 --> 0:19:13.360 make sure to send them to me and I'll answer 0:19:13.359 --> 0:19:15.920 them next week. Now, we were talking before the break 0:19:16.000 --> 0:19:20.159 about UM this institutional adoption that's coming. And remember if 0:19:20.240 --> 0:19:21.920 if you've been with me since the beginning of the show, 0:19:22.200 --> 0:19:24.360 we talked about when you're investing into something new, when 0:19:24.359 --> 0:19:26.879 you're buying a new UM, something new like bitcoin, and 0:19:26.920 --> 0:19:30.320 I used real estate as an example, UM to ignore 0:19:30.359 --> 0:19:32.919 the short term price that's a distraction and instead look 0:19:32.960 --> 0:19:34.960 at two things. And that was one the network effects 0:19:35.840 --> 0:19:37.920 and to the development. And so what we're talking about 0:19:37.960 --> 0:19:40.760 right now is both of those things. So now banks 0:19:41.119 --> 0:19:43.680 around in the United States are now starting to offer 0:19:44.240 --> 0:19:47.280 bitcoin custody in the bank. So that's gonna both the 0:19:47.359 --> 0:19:50.240 two things. One the bank's offering that is development and 0:19:50.320 --> 0:19:52.840 then offering it to their customers. Brings on more customers, 0:19:52.880 --> 0:19:54.560 which is more network effects, so it hits both of 0:19:54.600 --> 0:19:56.840 those at the same time. Now, I was explaining how 0:19:57.040 --> 0:19:59.680 they're going to offer custody and what custody meant and 0:19:59.760 --> 0:20:03.200 how UM the revolutionary thing about bitcoin is that allows 0:20:03.240 --> 0:20:05.280 me to hold custody of it myself, so there's no 0:20:05.400 --> 0:20:09.600 counterparty risk, kind of like gold, except for gold is 0:20:09.720 --> 0:20:12.560