Speaker 1: All right, welcome back. You are listening to the Mark
Speaker 1: Moa show where I talk about bitcoin, cryptocurrencies and the
Speaker 1: decentralized revolution, giving you the information that you need to
Speaker 1: take advantage of the biggest wealth transfer that we'll ever see. Now.
Speaker 1: Before the break, I was talking about UM, the Federal Reserve,
Speaker 1: I was talking about the Central Bank. I was talking
Speaker 1: about government's talking about the debt ceiling UM and how
Speaker 1: every couple years we get this song and dance about
Speaker 1: the debt ceiling, And then I was going into what
Speaker 1: more debt means, specifically in regards to your wealth, how
Speaker 1: you build wealth um, and then of course how that
Speaker 1: is a driver to bitcoin. So I was asking the question, um,
Speaker 1: our US home prices expensive or cheap right now? And
Speaker 1: I'm going to tell you the answer to that. So
Speaker 1: the answer to that is, actually, first you have to
Speaker 1: ask a different question, Our U s home price is
Speaker 1: expensive or cheap compared to what, but also more importantly
Speaker 1: priced in what now? Remember I said that before the break,
Speaker 1: I said that the value you of your home hasn't
Speaker 1: gone up. The value of the dollar went down, so
Speaker 1: it takes more dollars to buy the home today. So
Speaker 1: when I say our U S home price is cheap
Speaker 1: or expensive than I would say, priced in what well,
Speaker 1: priced in US dollars, which, of course we dominant denominate
Speaker 1: everything in US dollars. If you're in the U S
Speaker 1: and even most of the world priced in US dollars,
Speaker 1: homes have never been more expensive. Okay, that's the answer.
Speaker 1: They're more expensive. But what if we priced them in
Speaker 1: something else? Because remember, at the end of the day,
Speaker 1: everything is a trade. If I go to the store,
Speaker 1: I'm going to trade them my dollars for their product.
Speaker 1: Right now, if we're trading stocks or trading cryptocurrencies, I
Speaker 1: might trade one Ethereum token for a light coin token,
Speaker 1: or one Ethereum token for a bitcoin token, or one
Speaker 1: light coin for a bitcoin and so everything's a trade, right. Um,
Speaker 1: It's like like a barter system. Money is the piece
Speaker 1: in the middle. So if I price it in dollars,
Speaker 1: it's never been more expensive. But what if I price
Speaker 1: it in something else? So if we go back, uh,
Speaker 1: before the break I was talking about, the gold standard
Speaker 1: got severed in nineteen seventy one, so we started printing
Speaker 1: hundreds of chillions dollars after that. So if we go
Speaker 1: to nineteen seventy. The year before that happened, the median
Speaker 1: home price was worth about um, shoot, I thought I
Speaker 1: had that exact number. I think it was worth about
Speaker 1: about forty dollars um. Today the median home price is
Speaker 1: worth about three hundred and fifty thousand dollars, So in
Speaker 1: U S dollars it's way more expensive. But in nineteen seventy,
Speaker 1: the median home price was about forty dollars. But it
Speaker 1: was also six hundred and forty six ounces of gold. Well, okay, Well,
Speaker 1: if I was gonna buy it in gold would be
Speaker 1: sixty six ounces. Today it's a hundred and ninety four
Speaker 1: ounces of gold. Hm hmmm. So you're saying, if I
Speaker 1: was just storing my my wealth and gold, homes are
Speaker 1: actually cheaper. They're actually less than half the price they
Speaker 1: used to be. Yep, that's what I'm saying. Well, what
Speaker 1: about something else? Well, what if in nineteen seventy, what
Speaker 1: if I stored my wealth and oil. A lot of
Speaker 1: people buy oil, I own oil I own. Actually I'm
Speaker 1: part of an oil field, and I'm a GP in
Speaker 1: an oil field. Um, so what if I store my
Speaker 1: wealth in oil? Well, in nineteen seventy was six thousand,
Speaker 1: seven hundred of oil for the mediat home price. Today
Speaker 1: in two it's four thousand six, so it's not quite
Speaker 1: half the price, but it's still much cheaper in oil. Okay,
Speaker 1: what if I used rice? What if I'm a rice
Speaker 1: farmer and I store my wealth and rice. Well, in
Speaker 1: nineteen seventy was forty three thousand tons of rice, and
Speaker 1: today it's twenty seven thousand pounds or tons of rice,
Speaker 1: so it's actually gotten cheaper. Homes are cheaper in rice. Okay,
Speaker 1: that's stupid, mark. Nobody's going to store their wealth and
Speaker 1: oil or gold, I guess. So what about I store
Speaker 1: my wealth in the in the SMP five hundred in
Speaker 1: the stock market? Okay, Well, in nineteen seventy it would
Speaker 1: have taken two hundred and forty three shares of the
Speaker 1: SMP five hundred, and in two thousand twenty one it
Speaker 1: takes eighty shares of five So I would ask you
Speaker 1: the question again, our homes expensive or cheap? Today? Let's
Speaker 1: look at bitcoin. Now, um in bitcoin hasn't been around
Speaker 1: since nineteen seventy, but we can look at the two
Speaker 1: thousand ten price. So in two thousand ten it was
Speaker 1: seven hundred and seventy three thousand bitcoin to buy a
Speaker 1: house the median home price UM today in two one
Speaker 1: it's ten ten bitcoin. So again our homes cheaper expensive
Speaker 1: priced in what and so um. Two things that I'm
Speaker 1: hoping that you get out of this one what you
Speaker 1: store your wealth in matters, and it matters big time,
Speaker 1: as you can tell now to show you an example
Speaker 1: of that, in nineteen seventy it took fifty one thousand
Speaker 1: pounds of oranges to buy the median home price. Today
Speaker 1: it's two eighty thousand. So in dollars and oranges, homes
Speaker 1: have never been more expensive. But in gold, oil, smp F,
Speaker 1: rice and bitcoin they've never been cheaper. And if you're
Speaker 1: holding bitcoin, they have they've never been I mean, it
Speaker 1: was seven almost three quarters of a million bitcoin ten
Speaker 1: years ago and today it's ten. And so what you
Speaker 1: store your wealth and matters. And also I'm trying to
Speaker 1: show hoping to your kitchen catching on here that the
Speaker 1: more dollars the government and the central banks print, the
Speaker 1: more they raise the debt ceiling, the less your dollars
Speaker 1: can buy, the less they're worth. They're worth less, worthless, right,
Speaker 1: they continue to buy more and more and more, and
Speaker 1: so you need to start looking at things like that.
Speaker 1: Where you store your wealth matters. And so if you're
Speaker 1: unfortunately in the poorer right, you're getting poorer and poor
Speaker 1: while the rich get richer and richer. Um, you've probably
Speaker 1: seen the headlines. I mean, they're they're trying to get
Speaker 1: everybody divided against each other. So everybody's against their their
Speaker 1: their counterpart at these days, and so there's this attack
Speaker 1: on the rich, and so you know, everyone's like, well,
Speaker 1: the rich have profited since the pandemic, and um, you know,
Speaker 1: the top one percent and have gained a trillion dollars
Speaker 1: of wealth and blah blah blah. Well, if you would
Speaker 1: also own the same assets that they owned, then your
Speaker 1: wealth would have gone up by the same percentage. Now
Speaker 1: the dollar amount would be less, obviously because it's a percentage.
Speaker 1: So if i'm you know, if i'm if I'm if
Speaker 1: I don't have as much money and I have a
Speaker 1: thousand dollars invested and goes up by you know, the
Speaker 1: hunter bucks, if I have a hundred million invested at
Speaker 1: the ten per cent is a different number. But the
Speaker 1: point is is that you need to get your storage
Speaker 1: where you store your money out of dollars and you
Speaker 1: need to invest them like the rich. So that as
Speaker 1: the Fed continues to print more dollars, as they continue
Speaker 1: to put more money in, as those dollars continue to
Speaker 1: lose their purchasing power, your purchasing power will be going up.
Speaker 1: So that's that kind of rounds it out with the
Speaker 1: debt ceiling. Hopefully that that brings some clarity. By the way,
Speaker 1: you're listening to the markma Show where I talk about bitcoin,
Speaker 1: I talk about cryptocurrencies, I talk about the decentralized revolution
Speaker 1: that's going on, trying to bring you each and every
Speaker 1: week the asymmetric information that you need so you can
Speaker 1: play the biggest opportunity asymmetric oportunity will ever see in
Speaker 1: our lifetime. So, um, I was talking about the debt
Speaker 1: ceiling and how the government is uh squabbling over this.
Speaker 1: Will they raise it? Will they not? Of course I'm
Speaker 1: pretty sure they will. They always do, and so that
Speaker 1: is one of the big drivers on bitcoin. Now what's
Speaker 1: interesting about this A little side note is there was
Speaker 1: a video that came out from President Biden, and President
Speaker 1: Biden said, you don't he was there talking about the
Speaker 1: infrastructure Bild. Why are you trying to get a three
Speaker 1: point five trillion dollar infrastructure built together when we can't
Speaker 1: even pay the debt. And he said, I'll somewhat paraphrase it,
Speaker 1: and he said, let me be clear. He always likes
Speaker 1: to say that. Let me be clear. Um, the debt
Speaker 1: ceiling is not about the infrastructure spending. We need to
Speaker 1: raise the debt ceiling so we can take on more
Speaker 1: debt so we can pay off the old debt, all right.
Speaker 1: It has nothing to do with the infrastructure we need.
Speaker 1: If we don't raise the debt ceiling in the U,
Speaker 1: S could lose this credit. And so we need to
Speaker 1: raise the debt take on more debt to pay the
Speaker 1: old debt, which, if I'm not mistaken, is literally the
Speaker 1: definition of a Ponzi scheme, um, which sounds like what
Speaker 1: President Biden was explaining. As a matter of fact, the
Speaker 1: definition of a Ponzi scheme is just that it's an
Speaker 1: investment fraud that pays existing investors with funds collected from
Speaker 1: new investors. That's the definition. I'm reading it word for
Speaker 1: word from you right here. So it's a scheme that
Speaker 1: pays new investors with funds old investors, existing investors with
Speaker 1: funds collected from new investors. So when President Biden says
Speaker 1: we need to increase the debt limit, not for new spending,
Speaker 1: we need to increase it so we can pay off
Speaker 1: our existing debt. That's like you going to UH American
Speaker 1: Express or Visa and saying, I need a new credit
Speaker 1: card so I can pay my old credit cards. The
Speaker 1: chance of them giving you that credit is probably going
Speaker 1: to be pretty slim. And so that's the situation that
Speaker 1: we're that we're in, and I think more and more
Speaker 1: people are starting to wake up to at They're starting
Speaker 1: to recognize that the financial system is over indebted. Um,
Speaker 1: it's it's the Titanic. It's it's a sinking ship. Um,
Speaker 1: it's taking on water. There's no way to patch it
Speaker 1: right now, unfortunately. Um, the only option for the Titanic
Speaker 1: is the sink. And that's horrible. But you don't have
Speaker 1: to be on the Titanic as it's sinking. You can
Speaker 1: get onto a lifeboat. And that's what bitcoin provides. That's
Speaker 1: what we're talking about. I'm gonna show you some other
Speaker 1: factors that are pushing bitcoin when I get back. You're
Speaker 1: listening to the Mark Moss Show, and I'll be back
Speaker 1: with more on bitcoin. All right, you are back listening
Speaker 1: to the Mark Moa show where I talk about bitcoin.
Speaker 1: I talked about cryptocurrencies. I talk about the decentralized revolution
Speaker 1: that's happening. And I don't just talk about what they are. Um,
Speaker 1: I'm trying to tell you why. That's kind of my approach.
Speaker 1: Why why does it matter? Why do we care, why
Speaker 1: do we want to buy it? Why do we expect
Speaker 1: the price to go up in value? And all those
Speaker 1: other things. Before the break, I was talking about the
Speaker 1: debt ceiling. I was explaining how the more DA dollars
Speaker 1: that are created, the less they buy. The purchasing power
Speaker 1: goes down, and what you store your wealth in matters.
Speaker 1: That's the difference between the rich and the poor. Right.
Speaker 1: The rich store their wealth in assets, and as the
Speaker 1: Fed prints money, those assets go open value. The poor
Speaker 1: don't buy assets. They work for wages, and those wages
Speaker 1: continue to buy less and less and less because of
Speaker 1: the central banks continually printing more money. So that's a
Speaker 1: big one. As a matter of fact, really, the Federal
Speaker 1: Reserve is what's driving everything today. So we look at
Speaker 1: any of the markets and that's really what's causing it.
Speaker 1: But there's some other catalysts that happened. That's that's big,
Speaker 1: but it's a little bit smaller than that. So if
Speaker 1: I'm kind of coming down a little bit off of
Speaker 1: that um this this week we saw some big news. Now,
Speaker 1: if you've been with me since we started the show,
Speaker 1: you remember I talked about when we buy something like
Speaker 1: bitcoins and something like a new technology like this, there's
Speaker 1: really there's two indicators that we're trying to watch. Remember,
Speaker 1: the price, the short term price can be a distraction,
Speaker 1: and so what we really want to look at is
Speaker 1: two things. One are the network effects growing more people
Speaker 1: using it, because the more people use it, the more
Speaker 1: it's worth. And then we also want to look at
Speaker 1: the development that's happened on it. And so some big
Speaker 1: news came out this week that I think actually checks
Speaker 1: both of those boxes. Now, the news actually came out
Speaker 1: several months ago, but today the news is actually coming true.
Speaker 1: And so what that big news is is that the
Speaker 1: banking system, so we're talking about you know, Bank of America, Wells, Fargo, JP, Morgan, etcetera, etcetera, etcetera.
Speaker 1: They're seeing people pulling their money out of the banks
Speaker 1: and then going and buying bitcoin and cryptocurrencies with it.
Speaker 1: They're seeing people why are money from their banks over
Speaker 1: to coin base or or cracking or whatever it may be.
Speaker 1: And guess what, they don't really like that. They want
Speaker 1: to keep your money in the bank. They don't want
Speaker 1: you to send your money somewhere else. And so they're
Speaker 1: they're recognizing this. Now. The thing about a banking relationship
Speaker 1: is it's what we would call sticky. UM. That means
Speaker 1: that once you set up a bank account and you
Speaker 1: establish a andcy relationship, you typically keep it right, you stay,
Speaker 1: you stay in it. UM. I know that I've been
Speaker 1: with Bank of America. I'm sorry. I've been with Wells
Speaker 1: Fargo since I got my very first bank account. UM.
Speaker 1: I don't particularly like them. I've they've been accused, not
Speaker 1: just accused, but they've paid out the largest settlements for wrongdoing. UM.
Speaker 1: So they're probably not the best bank to be with.
Speaker 1: But you know what, for me to go close my
Speaker 1: accounts and go upen new ones, this is too much, right,
Speaker 1: it's sticky. They have me. But if I pull my
Speaker 1: money out and I start using Cracking as a bank,
Speaker 1: and I can hold bitcoin and I can send them
Speaker 1: receive payments and dollars and all those things. Then I'll
Speaker 1: probably never come back once I make the switch, I'll
Speaker 1: never come back. So the banks recognize this and they shoot, well,
Speaker 1: we got to do something, So, um, why don't we
Speaker 1: offer cryptocurrencies inside the bank, Like we already have their money?
Speaker 1: Why do we let them pull it out and send
Speaker 1: us them world? Why don't we just sell them cryptocurrencies
Speaker 1: inside of her? And so that's exactly what is happening. Um.
Speaker 1: There's a company called night digg and my d I
Speaker 1: G nightgg and they announced a few months ago. Um
Speaker 1: they run back off the services for banks, and then
Speaker 1: anouked a couple of months ago that they were going
Speaker 1: to UM work with I think it was three hundred banks,
Speaker 1: which service like three hundred million checking accounts. Is it's
Speaker 1: been a few months I report on this, but a
Speaker 1: few hundred million checking accounts would have access to buy, sell,
Speaker 1: and store cryptocurrencies right in their checking account. Now, UM,
Speaker 1: that might be bad for the coin bases and the
Speaker 1: crackings of the world. It's good for the banks because
Speaker 1: they keep their custody um or their customer. But the
Speaker 1: big winner, of course is the cryptocurrency acid itself. Right,
Speaker 1: we're talking about adoption. Remember Metcalf's law we talked about
Speaker 1: when we first opened up, and so, um, they announced
Speaker 1: that that was going to take the place, and they
Speaker 1: said that they would do that before the end of
Speaker 1: the year. Now, I talked to many of the insiders
Speaker 1: I have inside the banks, and they told me they
Speaker 1: didn't think it was going to happen. Um, They're like,
Speaker 1: do you know how slow banks move. Do you think
Speaker 1: they're literally gonna be able to do this inside of
Speaker 1: six months, like change the whole system around. And I
Speaker 1: kind of believed them, you know, It's like, well, they
Speaker 1: announced it, they said they're going to do by the
Speaker 1: end of the year. But yeah, you're right, Like banks
Speaker 1: can't even update their their their computer networks, Like, yeah,
Speaker 1: they're probably gonna do it. Well, we were both wrong
Speaker 1: in a sense because this week we saw US Bank
Speaker 1: launch their bitcoin custody service um and to and to
Speaker 1: cater to these cryptocurrencies. So US Bank is the fifth
Speaker 1: biggest retail bank in the nation, and on Tuesday they
Speaker 1: announced that their crypto cryptocurrency custody service is now available
Speaker 1: to fund managers. Now, at first, it's just available to
Speaker 1: fund managers of course, this will come as they get
Speaker 1: the bugs worked out, the kinks worked out, litrical, this
Speaker 1: down to everybody else and so UM. They announced it
Speaker 1: a few months ago, they said they'd be done by
Speaker 1: the end of the year, and here it is. We're
Speaker 1: seeing at the fifth biggest retail bank in the nation
Speaker 1: has done that. UM. And so they're offering help for
Speaker 1: investment managers to store their private keys for Bitcoin, Bitcoin Cash,
Speaker 1: and lightcoin UM. Those are the three coins that they
Speaker 1: started with right now. UM. They said that they will
Speaker 1: try to support other coins UM over time, but for
Speaker 1: right now, it's just those And like I said, for
Speaker 1: right now, it's just to cater to institutional investors UM.
Speaker 1: But again, as they get this program going, it will
Speaker 1: continue to UM to spread down to the lower level. Now,
Speaker 1: what's important about this is that there's a lot of
Speaker 1: institutional investors fund managers who have not been buying bitcoin
Speaker 1: because of the custody solution. So if you're not familiar
Speaker 1: with what I'm talking about, let me explain custody for
Speaker 1: just a minute. Now. UM. You are listening to the
Speaker 1: markma Show where I talk about bitcoin, cryptocurrencies and the
Speaker 1: decentralized revolution and UM. The The unique thing about bitcoin
Speaker 1: compared to any other asset in the world is that
Speaker 1: I can take custody of it. So um, of course,
Speaker 1: you know, if I buy gold, I can take custody
Speaker 1: of gold, and so I can put that in my bank.
Speaker 1: And so that's why gold has been good money for
Speaker 1: five thousand years. Um. When I old gold in my
Speaker 1: own safe, or I bury it in the ground, I
Speaker 1: have a map for or whatever. Um, when I hold
Speaker 1: the gold, I have it. Right. It's like a custody
Speaker 1: is nine tenths of the law or something right, So
Speaker 1: like I own it. Um. When I own a stock,
Speaker 1: for example, so I own a share of apple stock,
Speaker 1: let's just say, um, and it's in my E trade account. Well,
Speaker 1: I don't actually own apple stock. And this is this
Speaker 1: is a big deal, and it doesn't seem like a
Speaker 1: big deal at first, But what that means is that
Speaker 1: I don't actually own the apple stock. The apple stock
Speaker 1: is owed to me. So so E Trade, for example,
Speaker 1: would owe me the apple stock. So I own an
Speaker 1: I owe you, not the stock. The reason why that's
Speaker 1: important is because legally I don't actually own it. It's
Speaker 1: owed to me. And that means that if they you know,
Speaker 1: go bankrupt or something like that. They don't have to
Speaker 1: give it to me. They could default on the debt
Speaker 1: that they owe to me. Versus, if I hold gold
Speaker 1: in my safe, there's no counterparty. Nobody is that to me, right,
Speaker 1: So that's the big thing. That is what's revolution right now.
Speaker 1: The problem with stocks is that UM each trade doesn't
Speaker 1: own the stock either, it's owed the stocked by somebody else,
Speaker 1: which is stocked by somebody else. And there's about six
Speaker 1: layers in between the company Apple and myself. There's about
Speaker 1: six people that each have a liability and an asset
Speaker 1: at the same time. So if anybody in that chain
Speaker 1: were to um, you know, find become insolvent, whatever, then
Speaker 1: all of those people lose that asset UM. But bitcoin
Speaker 1: is more like gold where it allows me to take
Speaker 1: custody of that asset with no counterparty. Another reason why
Speaker 1: it's different than gold is that it's also portable. So
Speaker 1: having a lot of gold is very difficult to take
Speaker 1: a round with you. So I want to explain what
Speaker 1: US bank is doing to help customers on board with custody,
Speaker 1: and why this is coming for the rest of the
Speaker 1: banks UM, and why this is about to explode user
Speaker 1: adoption throughout the country. Now, this is a trend that
Speaker 1: you want to what we call front run. You want
Speaker 1: to get in front of it because when that herd
Speaker 1: comes in, you want to be already in position. So
Speaker 1: we'll talk about that as soon as I get back.
Speaker 1: You are listening to the Mark Moss Show where I
Speaker 1: talk about bitcoin, cryptocurrencies, the decentralized Revolution. Here with Mark Moss,
Speaker 1: and I'll be right back. All right, Welcome back. You
Speaker 1: are with Mark Moss listening to the Mark mass Show
Speaker 1: where I talk about h and every week I talk
Speaker 1: about Bitcoin, I talked about cryptocurrencies, I talk about the
Speaker 1: decentralized revolution. It is literally the biggest opportunity. It is
Speaker 1: the greatest wealth transfer that you will ever see, will
Speaker 1: ever see anyone in our lifetime, will ever see. The
Speaker 1: way to take advantage of it and not get shaken
Speaker 1: out by is to have this information that I'm gonna
Speaker 1: bring to you every week. So take a look real
Speaker 1: quick at what station you're listening to me on, put
Speaker 1: it on your calendar for this date, this time, and
Speaker 1: market downst here with me each and every week. It
Speaker 1: could literally be life changing information that I give to you.
Speaker 1: Lookay and my name is Mark Moss. Uh. If you're
Speaker 1: on Twitter, give me a follow. It's one Mark Moss.
Speaker 1: That's right, one Mark Moss on Twitter. UM at me,
Speaker 1: I mean, send me a question. I'd love to get
Speaker 1: your questions. I'll answer them on the next episode next week.
Speaker 1: Go ahead and shoot that over to me. If anything
Speaker 1: I'm saying is causing some curiosity and you have some questions,
Speaker 1: make sure to send them to me and I'll answer
Speaker 1: them next week. Now, we were talking before the break
Speaker 1: about UM this institutional adoption that's coming. And remember if
Speaker 1: if you've been with me since the beginning of the show,
Speaker 1: we talked about when you're investing into something new, when
Speaker 1: you're buying a new UM, something new like bitcoin, and
Speaker 1: I used real estate as an example, UM to ignore
Speaker 1: the short term price that's a distraction and instead look
Speaker 1: at two things. And that was one the network effects
Speaker 1: and to the development. And so what we're talking about
Speaker 1: right now is both of those things. So now banks
Speaker 1: around in the United States are now starting to offer
Speaker 1: bitcoin custody in the bank. So that's gonna both the
Speaker 1: two things. One the bank's offering that is development and
Speaker 1: then offering it to their customers. Brings on more customers,
Speaker 1: which is more network effects, so it hits both of
Speaker 1: those at the same time. Now, I was explaining how
Speaker 1: they're going to offer custody and what custody meant and
Speaker 1: how UM the revolutionary thing about bitcoin is that allows
Speaker 1: me to hold custody of it myself, so there's no
Speaker 1: counterparty risk, kind of like gold, except for gold is
Speaker 1: very hard to move around UM and bitcoin is digital
Speaker 1: and so it makes it easy to do that. UM.
Speaker 1: Now the problem the good that that's the revolutionary thing
Speaker 1: is the custody, but it can become complicated when you're
Speaker 1: dealing with businesses or hedge funds or institutions and things
Speaker 1: like that. So for me, my family, me personally, I
Speaker 1: want my keys, I want custody of my bitcoin. I
Speaker 1: don't want any counterparty risk to that. But let's say
Speaker 1: that I'm a business, Let's say that I'm a public entity.
Speaker 1: Let's say I'm a hedge fund. Who is going to
Speaker 1: hold that key? Who, like you, don't want to give
Speaker 1: it to one guy. We've seen instances where that one
Speaker 1: guy has died and uh no, no one else in
Speaker 1: the company or the fund of the exchange knows where
Speaker 1: the key is and it's just gone could be I mean,
Speaker 1: I think in one case in Canada like two years ago,
Speaker 1: was like fifty million dollars just disappeared. He died and
Speaker 1: that was it, and so that could be a big problem. Also,
Speaker 1: we don't want a way where um, a bad actor,
Speaker 1: right say, somebody that works for that that fund or
Speaker 1: whatever is malicious and then tries to steal that. And
Speaker 1: so you can see on a personal level it makes
Speaker 1: sense to kind of have that custody, but on a
Speaker 1: on a bigger corporate kind of hedge fund level, it's
Speaker 1: a problem. And so that's kind of this need that
Speaker 1: that US Bank is is jumping into right off the
Speaker 1: bat by offering to the institutional clients. And so you're
Speaker 1: this big hedge fund and you just have the bank
Speaker 1: holding right. Typically the banks store your wealth, they store
Speaker 1: your assets, and so they can store your bitcoin wealth,
Speaker 1: and so that's what they're doing. Um they think, you know,
Speaker 1: they're already safeguarding trillions of dollars of assets for money
Speaker 1: managers and things like that, and so it just kind
Speaker 1: of makes sense that they could now um in addition
Speaker 1: to the trillions of dollars are already custody holding, they
Speaker 1: can now do a cryptocurrencies as well. Now, um, as
Speaker 1: I said, I think this is just kind of the
Speaker 1: tip of the iceberg. This is kind of where it starts,
Speaker 1: and eventually this will be offered to all the individual
Speaker 1: UM bank you know bank holders as well. Now there's
Speaker 1: many bank individuals like myself that that my bank there,
Speaker 1: that may want to use the bank to actually custody
Speaker 1: my bitcoin, or I could take custody of it myself.
Speaker 1: So those are kind of to two different options. Now
Speaker 1: the benefit there, there's pros and cons to both sides,
Speaker 1: and so I think it's important to kind of understand
Speaker 1: what those pros and cons are. So um, of course
Speaker 1: it's easy to understand that any time I give an
Speaker 1: asset anything could be my phone, could be a pen,
Speaker 1: could be money. Anytime I give something to somebody else,
Speaker 1: there's a risk that I don't get it back. Now,
Speaker 1: if I give it to someone in my family, the
Speaker 1: risk of me not getting it back is very very low.
Speaker 1: If I give it to a you know, Ponzi scheme,
Speaker 1: the chance of me not getting it back is very
Speaker 1: very high, and so you kind of have to evaluate
Speaker 1: what that risk level is. So if I give it
Speaker 1: to somebody, there's risk I don't get it back. That's
Speaker 1: called counter party count to party risk, and you always
Speaker 1: want to understand what that is. If I a custody
Speaker 1: the bitcoin myself, there is no counterparty risk. I have
Speaker 1: it now, but the risk shifts now. The risk isn't
Speaker 1: in in me not getting it back. The risk is
Speaker 1: can I secure it properly? So if I let if
Speaker 1: I let us bank hold it, I would imagine that
Speaker 1: their security is top notch. I would imagine the chance
Speaker 1: of them losing my money. My bitcoin is probably salimin
Speaker 1: on the risk. The risk percentage of them losing my
Speaker 1: bitcoin is almost zero, and uh, in a lot of
Speaker 1: cases will probably have insurance if something were to happen,
Speaker 1: all right, Versus if I hold it myself, UM, I
Speaker 1: use some some form of a wallet, I could lose that,
Speaker 1: so the risk of me losing it is higher, all right,
Speaker 1: So you have to kind of consider those. But let's
Speaker 1: let's dig in a little bit deeper. Now. We've seen
Speaker 1: across the world in different jurisdictions China and recently just
Speaker 1: banned a bitcoin again. We've seen in Europe the ECB
Speaker 1: European Central Bank, UM, they've talked about increasing regulations on cryptocurrencies.
Speaker 1: In the United States, they've talked about increasing regulations on cryptocurrencies,
Speaker 1: and it's very possible that at some point in the
Speaker 1: near future, especially outside of the US, but even in
Speaker 1: the US, it's very possible that in the near future, UM,
Speaker 1: they could make it where you're not allowed to custody
Speaker 1: your own cryptocurrency anymore. And so there is a potential
Speaker 1: where I let us bank hold it for me, but
Speaker 1: then they never allowed me to withdraw it. They just
Speaker 1: take it from you. UM. We've seen this happen UM
Speaker 1: many times. So for example, UM, when Cuba was a
Speaker 1: little bit more opened up a year or two ago,
Speaker 1: there was a there's tons of stories online of people
Speaker 1: that went to Cuba and while they were in Cuba
Speaker 1: at their hotel, they logged into their coin base account.
Speaker 1: Coin based flagged that they were on a Cuban I
Speaker 1: P I P address and UH locked their account and
Speaker 1: they couldn't get back into their account. And the only
Speaker 1: way they can get access to the account again was
Speaker 1: to go through the I think Secretary of State and
Speaker 1: get some sort of affidavit, which is like impossible to get.
Speaker 1: It could take years before they ever get access to
Speaker 1: their account again. So the risk isn't them necessarily getting
Speaker 1: hacked or getting stolen from them, but the risk is
Speaker 1: that they may not give it back to you, right,
Speaker 1: and that either you went to Cuba, you know, something
Speaker 1: like that um or um you know, they get um
Speaker 1: some sort of a lawsuit, or the regulations change and
Speaker 1: they're not allowed to let you pull that out anymore.
Speaker 1: Now you may think that's ridiculous, but have you ever
Speaker 1: heard of Article six O two? Because Article two was
Speaker 1: passed in three and they took everybody's gold. So back
Speaker 1: then gold was money. Remember I said that gold the
Speaker 1: benefit of goals. I can custody it myself, but the
Speaker 1: problem is it's hard to move around. So everybody put
Speaker 1: their gold in the bank, and then the bank held
Speaker 1: the gold and they gave me something called a paper
Speaker 1: gold certificate, which is now known as like a dollar,
Speaker 1: and that paper gold certificate represented that that gold in
Speaker 1: the bank. But what happened is because the government couldn't
Speaker 1: live within their means, they printed way too many of
Speaker 1: those paper goal certificates the dollars um. They literally had
Speaker 1: to pass Article two and they shut all the banks
Speaker 1: down for a week and when they reopened the banks,
Speaker 1: it was illegal for U. S. Citizens to own gold.
Speaker 1: It was illegal, and so um, if you think it
Speaker 1: may be ridiculous that the government could say that you're
Speaker 1: not allowed to pull your money out anymore, um, then
Speaker 1: you probably haven't been studying history, because it certainly has
Speaker 1: happened before. And so you just have to figure out
Speaker 1: where do you think that risk lies. Do you think
Speaker 1: that's ridiculous, The chance of that happened is slim to none? Okay, great,
Speaker 1: then that's where you sign that on your risk scale.
Speaker 1: If you're somebody who thinks that that there's a big
Speaker 1: risk of that, then you need to give it more
Speaker 1: risk waiting. And so you have to understand the risk
Speaker 1: isn't them necessarily getting it stolen from them, but they
Speaker 1: may not give it back to you for those reasons.
Speaker 1: The flip side is that I hold it myself, and
Speaker 1: there's a whole different set of risks that are there,
Speaker 1: and I want to explain to you what those are.
Speaker 1: But of course there's also good ways to mitigate those
Speaker 1: risks that I'll explain to you as well. And this
Speaker 1: is someone who has literal really lost I hate to
Speaker 1: tell you. In today's dollars. I've lost over two million
Speaker 1: dollars in bitcoin. Now, when I lost it, it wasn't
Speaker 1: worth that much, but in today's dollars it would be
Speaker 1: because I didn't know some of these things. And I'm
Speaker 1: gonna explain to you what I did wrong. So you
Speaker 1: don't make those same mistakes, um, because it's it's easy
Speaker 1: to remedy them. You don't. You don't need to make
Speaker 1: those mistakes like I did. Um. And as bitcoin continued
Speaker 1: to go up, I mean, it's at fifty five dollars today.
Speaker 1: You know, it could be at a million dollars in
Speaker 1: in five or ten years from now. And even if
Speaker 1: you lost you know, ten or twenty dollars like I
Speaker 1: did at the time, it could turn out to be
Speaker 1: huge amounts of money. So I'm gonna explain what those
Speaker 1: risks are for you holding yourself, how you can do
Speaker 1: it safely, some tips and tricks that I can give you.
Speaker 1: By the way, you're listening to the Mark mass Show.
Speaker 1: I'm talking about bitcoin, I'm talking about cryptocurrencies. I'm giving
Speaker 1: you the information you need to succeed. I'll be right
Speaker 1: back everyone. Welcome back. You are listening to the Mark
Speaker 1: ma Show, where I bring to you each and every
Speaker 1: week the most important information that you're ever gonna hear.
Speaker 1: So what is that? What is that information? Well, I'm
Speaker 1: bringing you the most up to date, most important information
Speaker 1: on bitcoin, on cryptocurrencies, on the decentralized revolution. I am
Speaker 1: talking about the greatest wealth transfer that will ever see.
Speaker 1: And you have the benefit of being born at a
Speaker 1: time where you can participate. But only if you have
Speaker 1: the right information. A lot of people get bad information
Speaker 1: and they think it's a joke, they think it's a scam.
Speaker 1: They don't participate. But you are listening now. I'm gonna
Speaker 1: bring this information to each and every week. So right now,
Speaker 1: take a second, pull out your phone, set a calendar reminder,
Speaker 1: and join me each and every week, and of course
Speaker 1: follow me on Twitter. UM number one Mark Moss, the
Speaker 1: number one Mark Moss on Twitter. Send me a question.
Speaker 1: I'll answer it next week. Now you were just joining in.
Speaker 1: I was talking about the bank in the United States
Speaker 1: announced that they were going to start offering a bitcoin
Speaker 1: and cryptocurrency services to their customers. Um, we just got
Speaker 1: news this week that US Bank, the fifth largest bank
Speaker 1: in the United States, is now launched those services. They're
Speaker 1: available and I was talking about the differences of having
Speaker 1: a bank or somebody else custody those, um those coins
Speaker 1: for you, or you doing it yourself. And so I
Speaker 1: just went through the risks of the bank doing it.
Speaker 1: I'm not gonna go back through that. But basically, the
Speaker 1: chance of them losing them or getting stolen is probably
Speaker 1: slim to none. There's very little risk there. But there
Speaker 1: is risk that they may not give those back to
Speaker 1: you for any number of reasons. That's called counterparty risk.
Speaker 1: The other side is that I can hold them myself. Now,
Speaker 1: first off, what does that even mean? Right? What does
Speaker 1: that even mean? So you hear about these coins, right,
Speaker 1: these cryptocurrency coins? Is bitcoin kind of a thing, So
Speaker 1: what does that mean? Well, how do I custody it myself?
Speaker 1: Because it's digital? Right, So it's not like I can
Speaker 1: like hold it in my hand. And a lot of
Speaker 1: people think it's not worth anything because I can't hold
Speaker 1: it in my hand. They think that, um, like gold,
Speaker 1: if I if I can't hold it in my hand,
Speaker 1: it's not worth anything. But of course, um, unless you've
Speaker 1: been living in a rock, you understand that all types
Speaker 1: of digital things have value today. So, um, what does
Speaker 1: that mean that you hold custody of yourself. Well you
Speaker 1: don't ever like you don't download them, like you don't
Speaker 1: hold coins, you don't download them. What you what you hold?
Speaker 1: The only thing you hold is a key. So let
Speaker 1: me explain this and the best way that I can
Speaker 1: over the radio. And so think about it like, um,
Speaker 1: think about it like a locker system. So remember the
Speaker 1: old days, depending on how old you are, the old
Speaker 1: days where like bus stations and airports used to have lockers, right,
Speaker 1: or maybe at your high school or whatever, you have
Speaker 1: a locker. And so there's a there's a public address.
Speaker 1: I'd say, hey, my lockers a C nineteen, go in
Speaker 1: there and slip this envelope in there. I drop a
Speaker 1: check in there for me locker C nineteen. That's my
Speaker 1: public address. And then I have a private key that
Speaker 1: allows me to go open that locker and take stuff
Speaker 1: out of it. Right. And so think about the blockchain,
Speaker 1: think about it in the cloud and this blockchain, and
Speaker 1: think about it like this digital locker system. And so
Speaker 1: you have both a public address where anybody could have
Speaker 1: your bitcoin or your your blockchain public address, and anybody
Speaker 1: with that public address could send you money. Um. But
Speaker 1: then have a private key that allows me to open
Speaker 1: that locker and pull stuff out. And so the only
Speaker 1: thing that you ever really have is your key. Now,
Speaker 1: there's a number of ways you can hold that key. One,
Speaker 1: you can download any number of apps on your smartphone. UM,
Speaker 1: So right from your Android or iPhone, you could download
Speaker 1: any number of apps and that would hold your private key. UM.
Speaker 1: That's one way. We'd call those like a hot wallet. UM.
Speaker 1: The problem with those is that because it's on your phone,
Speaker 1: it's always connected to the Internet, and if any type
Speaker 1: of a hacker were to get ahold of that, they
Speaker 1: could extract the extract your private key, and then empty
Speaker 1: your locker. That's happened to me back in I had
Speaker 1: about forty dollars US dollar at that time at the
Speaker 1: current valuation UM disappear out of a wallet that I
Speaker 1: had on my phone. I'm not exactly sure what happened.
Speaker 1: I was in Mexico, I was at a at a
Speaker 1: rental house. I was using public WiFi every day. I
Speaker 1: was putting money into my wallet, and then one day
Speaker 1: I logged in and it was zero. UM. And so
Speaker 1: that's not my favorite option. I don't do that anymore.
Speaker 1: I learned one time I don't do that anymore. UM.
Speaker 1: I do use some apps on my phone as wallets,
Speaker 1: but I think about them like I would my wallet
Speaker 1: in my pocket. I don't walk around with the wallet
Speaker 1: in my pocket, with my credit cards in my I
Speaker 1: D I don't walk around with my life savings in that.
Speaker 1: If I were to lose my wallet, I could stop
Speaker 1: my credit cards. I could order your credit cards, and
Speaker 1: if I had fifty bucks or a hundred bucks in there,
Speaker 1: it's nothing end of the world. UM. So that's the
Speaker 1: way I look at wallets on my phone. I'll put
Speaker 1: a little bits of money in there. I'm walking around
Speaker 1: money I'm in I'm in El Salvador. I want to
Speaker 1: buy some coffee, some lunch, I'll use that. UM. The
Speaker 1: next level would be a hardware wallet, so you can
Speaker 1: find those. They're like Treasure or Ledger, and they're they're
Speaker 1: like a little USB device that you plug into the
Speaker 1: USB on your computer and so, UM, they sign the transactions.
Speaker 1: So the key is stored in that device. And so
Speaker 1: I would say, hey, send you know, this much bitcoin
Speaker 1: to this address, and then it would say, okay, we'll
Speaker 1: give us the key. So I'd plug that device in
Speaker 1: it would sign the transaction and unplug it. The benefit
Speaker 1: of that is that that key never goes onto a
Speaker 1: computer that has Internet access, so it keeps it away
Speaker 1: from any kind of hackers or malware or anything like that.
Speaker 1: So that's the second best way to do that I
Speaker 1: would use. I would use a hardware wallet. Um. Now,
Speaker 1: in my particular case, UM, I'm using multiple of them.
Speaker 1: And the reason why is that the more money you have,
Speaker 1: the more you need to protect it. Right. If I
Speaker 1: only have a hundred bucks, if I lose it something
Speaker 1: in the world. If I have a hundred million bucks
Speaker 1: and I lose it, that's a very big deal. And
Speaker 1: so the more money you have, the more you'd want
Speaker 1: to protect it. By the way, you're listening to the
Speaker 1: Mark Moa show, we're talking about bitcoin, we're talking about cryptocurrencies.
Speaker 1: We're talking about the decentralized revolution and how you can
Speaker 1: participate in the biggest opportunity you've ever seen in your lifetime.
Speaker 1: And so um, we're talking about securing your bitcoin and
Speaker 1: now in your cryptocurrencies. And like I said, you could
Speaker 1: use multiple hardware wallets and that kind of um heart
Speaker 1: mentalize it or or diversifies it. Right. So let's say
Speaker 1: that I had a hundred thousand dollars worth of of
Speaker 1: of cryptocurrency, I could put ten thousand dollars onto ten
Speaker 1: different hardware wallets and that way, if one got broken
Speaker 1: or lost or stolen or or hacked or whatever, I'm
Speaker 1: only gonna lose ten percent. That that might be one
Speaker 1: way to do it. UM and I and I do that.
Speaker 1: I think I think I run like six or seven
Speaker 1: right now. But that's kind of a pain in the butt. UM.
Speaker 1: It's a big drag on the other thing with the
Speaker 1: hardware wallet is UM. You know, there's there's several manufacturers
Speaker 1: that are out there UM, and I'm definitely not accusing
Speaker 1: any of them of doing anything wrong, But what if, theoretically,
Speaker 1: maybe potentially, what if UM one of the developers inside
Speaker 1: one of the companies was malicious, and let's say that
Speaker 1: they did build in like some back door and they're
Speaker 1: gonna wait until bitcoin hits a million dollars and then
Speaker 1: they're gonna just exit scam and just pull everybody's money out.
Speaker 1: What if that happened, Well, I may not know until
Speaker 1: we get to that point, and that would be too
Speaker 1: big of a risk for me. So another option, a
Speaker 1: better option, This is one that I'm moving too lately
Speaker 1: is something called multi signature. If you've ever watched a
Speaker 1: new movies about you know, like the nuclear codes, like
Speaker 1: the president of the admiral, they both have to put
Speaker 1: their key in at the same time, and they both
Speaker 1: have to turn at the same time. That the multi
Speaker 1: signature set up, it takes two people to do that.
Speaker 1: And so you can set up a multi signature security
Speaker 1: set up where you have two of three signatures required
Speaker 1: or three of five are required. And so what's nice
Speaker 1: about this is it would take two out of three keys,
Speaker 1: and I could have three keys made by three different manufacturers.
Speaker 1: And so now the chance of having that potentially malicious
Speaker 1: actor inside one of those companies is irrelevant because they
Speaker 1: would all three have to be at all three companies,
Speaker 1: and they'll have to three be accurate actively at the
Speaker 1: same time, which is you know, theoretically impossible. Um. And
Speaker 1: so that is a better way to do that. And
Speaker 1: it also gets rid of the need to have six
Speaker 1: or eight or ten different hardware wallets, which is a
Speaker 1: pain in the butt. And so UM, now the risk
Speaker 1: is on me. Back to the point, the risk is
Speaker 1: on me to secure the bitcoin UM as opposed to
Speaker 1: relying on a bank or a solution to custody for me.
Speaker 1: So the risk is on me now, but i've I
Speaker 1: don't have the risk of them not giving it back
Speaker 1: to me for whatever reason. In my opinion, that's the
Speaker 1: bigger risk. I'm afraid that there might be some regulation
Speaker 1: or something like that where the government banned gold um,
Speaker 1: and I would rather hold it myself. In addition, well,
Speaker 1: I'm not going to go into the addition for right now,
Speaker 1: we'll call it that. But I think since most people
Speaker 1: are used to keeping their money in the bank, I
Speaker 1: think still many people will feel comfortable keeping their bitcoin
Speaker 1: in the bank. I think there's a lot of people
Speaker 1: who still might be skeptical on cryptocurrencies because they're this
Speaker 1: magical internet money or whatever it may be. Um. But
Speaker 1: once they see that their bank offers it, like I mean,
Speaker 1: I can buy it in JP Morgan or a Bank
Speaker 1: of America. It gives it a level of legitimacy and
Speaker 1: also makes it extremely easy because now instead of having
Speaker 1: to go get a different account and wire money and
Speaker 1: figure out how to do this, I could literally click
Speaker 1: a button and buy it directly from my bank account,
Speaker 1: which I think is going to explode, and I've taught.
Speaker 1: When I say explode, I'm talking about hundreds of millions
Speaker 1: of people coming into bitcoin. And there's even more news
Speaker 1: happening that's maybe even bigger than this, and I'm gonna
Speaker 1: talk about that as soon as I come back. You're
Speaker 1: listening to The Mark Moss Show. Hang on