Speaker 1: Welcome back to another episode of the Mark Moa Show,
Speaker 1: where we talk about the decentralized revolution that is changing
Speaker 1: the world as we know it right before our very eyes.
Speaker 1: Of course, if you know what you're looking at, and
Speaker 1: we do this by looking at through the lens of
Speaker 1: three converging things, politics, finance, and technology, and of course
Speaker 1: it's all being headed up, the catalyst being bitcoin, that's right,
Speaker 1: the decentralized technology. As we talk about that. Now, I
Speaker 1: try to bring to you some education so you can
Speaker 1: understand exactly what's going on in the marketplace today. Try
Speaker 1: to bring to you the latest breaking news so you
Speaker 1: can stay up to date on everything. I want to
Speaker 1: make sure you're prepared for all those conversations you're gonna
Speaker 1: have at those weekend cocktail parties, of course, so you
Speaker 1: look like you're really smart. Don't worry. I got your back.
Speaker 1: And then of course I bring to you some interesting guests.
Speaker 1: You don't have to listen to me talk all the time.
Speaker 1: And right now we are looking at some of the
Speaker 1: biggest pieces of news that came out over the week,
Speaker 1: so you can stay up to date with what's going on.
Speaker 1: And so man, there is there is, there is no
Speaker 1: end to the amount of changes, the amount of news
Speaker 1: that's coming out, the amount of directions that we could
Speaker 1: go by this. But of course, um, it all starts
Speaker 1: with the money. And if we start with the money,
Speaker 1: it starts with the central banks, as those are the
Speaker 1: central planners that plan how much money we have in
Speaker 1: the system. Of course, more money we have, the better
Speaker 1: things are. The less money we have the worst things are.
Speaker 1: Imagine that, right, not not hard to imagine that. And
Speaker 1: of course the central planners, the central banking the United States,
Speaker 1: the Federal Reserve Um headed up by Jerome Powell, has
Speaker 1: been under fire lately. He has been testifying before Congress
Speaker 1: this week. They want to know what the heck he's
Speaker 1: doing to one combat inflation, because inflation is just way
Speaker 1: too high. Apparently they have a target goal of two
Speaker 1: percent inflation, meaning they only want to steal two percent
Speaker 1: in your wealth per year, but they are way over that.
Speaker 1: They couldn't get over that, and now they've gone way
Speaker 1: too far in their up at about eight point six
Speaker 1: in almost nine percent. Of course that's their manipulated number.
Speaker 1: Real numbers probably about seventeen. But while the Federal Reserve
Speaker 1: is trying to bring this under control. They are destroying
Speaker 1: everything else. And so you know, the saying is, when
Speaker 1: all you have the hammer, the whole world looks like
Speaker 1: a nail. And when you're a central bank and all
Speaker 1: you have his money, then the only tool you can
Speaker 1: do to stimulate and slow markets down is money. That's
Speaker 1: that's what they got, and so they can manipulate the
Speaker 1: markets through pulling out the money. The problem is that's
Speaker 1: not a fine too. It's not a finely tuned instrument.
Speaker 1: It's not a scalpel. It's like trying to perform surgery
Speaker 1: with the chainsaw, right, You're just you're just gonna take
Speaker 1: out big chunks. And it just kind of is what
Speaker 1: it is. And so while the FED is trying to
Speaker 1: tame inflation, and again all they have is money, they
Speaker 1: have to pull the punch bowl back. Now they can't
Speaker 1: do it in little strides because they so overreacted trying
Speaker 1: to get the inflation of the inflation is so high.
Speaker 1: They have to do massive, drastic actions to get the
Speaker 1: inflation back down, which is of course they're doing, and
Speaker 1: they're destroying everything in its wake. So what do what
Speaker 1: do I mean by that? Well, if you haven't been
Speaker 1: paying attention it's kind of a complete blood bath out
Speaker 1: there in the markets right now. We have mortgage rates
Speaker 1: in the real estate market have gone up more than
Speaker 1: a hundred percent, and like the last six months, more
Speaker 1: than a hundred more, they've doubled. Interest rates doubled. That's
Speaker 1: insane in in six months. I don't know if we've
Speaker 1: ever seen that much that fast. Um so um. That's
Speaker 1: a that's a that's what's called a leading indicator. When
Speaker 1: interest rates go up, guess what happens. Mortgage applications go down.
Speaker 1: Not as many people apply for mortgages. When you don't
Speaker 1: have as many mortgage applications, guess what happens. Less homes
Speaker 1: get sold. When you have less homes being sold, or
Speaker 1: less buyers of homes, guess what happens. Prices come down. Right,
Speaker 1: So it's a leading indicator that tells us what will happen. Um.
Speaker 1: And so that's what you've got to look forward to.
Speaker 1: What else, Well, we got the markets. We have the Nasdaq,
Speaker 1: which is the index that tracks most of the stock positions.
Speaker 1: The growth the tech positions is down massively. As a
Speaker 1: matter of fact, about over half of the positions are
Speaker 1: down by more than half a lot of the big
Speaker 1: darlians are down six percent, including Shopify. Uh. Including Facebook,
Speaker 1: Facebook's getting smashed um, and so many others are getting
Speaker 1: smashed um tech stocks. Even the SMP five hundred is
Speaker 1: barely hanging on by a threat of course Facebook. As
Speaker 1: in the SMP, it's mostly being propped up by Apple
Speaker 1: that is dealing with its own problems. And most likely
Speaker 1: we'll see the SMP FI gets smashed down. I wouldn't
Speaker 1: be surprised to see that drop. I think we're down
Speaker 1: about twenty from their high right now. Maybe we see
Speaker 1: that get tot off of its high, which is massive.
Speaker 1: Is a bear market, so we're below that, And of
Speaker 1: course that brings me all the way around to where
Speaker 1: I'm trying to get to, which is the cryptocurrency markets.
Speaker 1: And of course the cryptocurrency markets have been completely smashed
Speaker 1: as well. Bitcoin is off about seventy percent from its
Speaker 1: previous all time high so UM, worse than some stocks,
Speaker 1: better than a lot of well known tech stocks UM.
Speaker 1: But either way, it's still down by quite quite a lot.
Speaker 1: And of course the cryptocurrency market overall is down even more,
Speaker 1: with many positions down eight even plus and so UM.
Speaker 1: A lot of people are losing all the money there,
Speaker 1: at least on paper, right. So one of the things
Speaker 1: that that's trying to do is they're trying to alter
Speaker 1: what they call the wealth effect. When your stocks or
Speaker 1: your home losers value even though you're not selling it,
Speaker 1: you just feel less wealthy and so um, you know,
Speaker 1: you made the wealth on paper, you lost the wealth
Speaker 1: on paper, But did you really make or lose anything.
Speaker 1: But of course, um, as these cryptocurrency positions are losing
Speaker 1: massive amounts of value, you have to look into why
Speaker 1: why are they losing value? Well, it's kind of the
Speaker 1: same thing that's happening across all of the markets, and
Speaker 1: it's typically, uh, brought on by something called leverage. That
Speaker 1: means I've used leverage to help me grow. Typically that's
Speaker 1: done through loans, So I've used loans, I've used debt
Speaker 1: to help me grow faster. The problem is, as things
Speaker 1: started going the opposite direction, that leverage helps you lose
Speaker 1: money faster as well. And so that's exactly what's been
Speaker 1: happening in the cryptocurrency space. But it's also been brought
Speaker 1: on by quite a bit of um well, a massive
Speaker 1: amount of mismanagement, and I'm guessing elite for sure, some
Speaker 1: if not quite a bit um fraud on top of that,
Speaker 1: and so um, of course when that happens, uh, you
Speaker 1: know you and I we we certainly can't deal with
Speaker 1: any risk. I mean, imagine if we had risk in
Speaker 1: our lives. So we need the government to step in
Speaker 1: and protect us. Right, hopefully the government can protect us
Speaker 1: from any risk, and that's exactly what they're trying to do.
Speaker 1: Chairman J. Powell from the Federal Reserve says that they
Speaker 1: are tracking crypto market volatility very closely. What does that mean?
Speaker 1: Or try king it very closely? Now? As I just said,
Speaker 1: many of the Wall Street darl and tech stocks shopify,
Speaker 1: peloton Um Square Um. I can't even think of all
Speaker 1: on the top of my head. But they're down way
Speaker 1: more than Bitcoin and as much as most of the
Speaker 1: cryptocurrency space. So is Jerome Powell also iron that is
Speaker 1: he also I in the vaultil in the stock market,
Speaker 1: because he probably should he if he isn't. But it
Speaker 1: says here that Jerome Powell, Chairman of the Federal Reserve,
Speaker 1: told a Senate committee Wednesday that officials at the US
Speaker 1: Central Bank are watching the crypto market closely amid a
Speaker 1: period of heightened voluntility, So of course it's vaulatile. He
Speaker 1: just pulled the punch bowl away. All the markets are crashing,
Speaker 1: including crypto, including the tech stocks and soon to be
Speaker 1: real estate as well. So, um, of course there's heightened volatility.
Speaker 1: You caused it. Thanks so much. It reminds me of
Speaker 1: that Biden sticker on the gas bumps. I caused that.
Speaker 1: Um It says that the impact recent crypto market altility
Speaker 1: on the Fed's operations, including any macroeconomic implications, the FED
Speaker 1: is watching very carefully, but added that the U s.
Speaker 1: Central Bank is quote not really seeing significant macroeconomic implications
Speaker 1: so far. So um he says, Yeah, we're watching it,
Speaker 1: We're paying attention, but look, we don't expect this to
Speaker 1: like be a big problem, right like we have, uh,
Speaker 1: you know what we're seeing the entire you know, Nasdaq
Speaker 1: exchange losing. I think total wealth lost in the globe
Speaker 1: is like twenty three trillion dollars and the crypto market
Speaker 1: makes up like one. So they don't see that as
Speaker 1: being a big risk. Um he says that we're not.
Speaker 1: We're not seeing massive implications for it to be spreading over,
Speaker 1: but we're definitely keep an eye on it as they should.
Speaker 1: The question is when will the FED come off of
Speaker 1: their um position to crash the markets that the quote is, uh,
Speaker 1: the pivot. When will the pivot come? And of course
Speaker 1: we're waiting anxiously for that. But the FED is not
Speaker 1: the only only one trying to tame the markets and
Speaker 1: with with regulation. As a matter of fact, another central
Speaker 1: banks trying to do the same thing. I'm gonna come
Speaker 1: back and talk about that and a whole lot more,
Speaker 1: digging more into the crypto space and some other stuff
Speaker 1: that's happened, including why I like to use the word
Speaker 1: bitcoin not crypto. Um, some stuff that's been going on
Speaker 1: with there that's going to really show you that highlight
Speaker 1: that for you. You're listening to the Mark Moa Show.
Speaker 1: We're talking about the decentralized revolution, talking about cryptocurrency, bitcoin
Speaker 1: and so much more. I'm gonna be back with other
Speaker 1: banks trying to regulate it and more in a minute,
Speaker 1: So don't go away, all right, Welcome back. If you
Speaker 1: are just tuning in, you're listening to the Mark Moss Show,
Speaker 1: and of course we're talking about the decentralized revolution the
Speaker 1: world is going through. We're talking about bitcoin, we're talking
Speaker 1: about cryptocurrencies. We're talking about the central banks. We're talking
Speaker 1: about the central banks. We're talking about the central planners
Speaker 1: trying to centrally plan your life. I don't know how
Speaker 1: you feel about that. I'd like to find out. Hit
Speaker 1: me up on on social media at one Mark Moss
Speaker 1: at the number one Mark Basson. Let me know. How
Speaker 1: does it feel to know that you're not in control
Speaker 1: of your own life, it's being centrally planned by some
Speaker 1: people you don't know, and to land far far away
Speaker 1: that haven't taken any of your input or votes into consideration.
Speaker 1: Because that's exactly what happening, arbitrarily increasing the money supply,
Speaker 1: decreasing the money supply. I was talking about how the
Speaker 1: Federal Reserve is trying to uh, well, they're watching the
Speaker 1: crypto markets to see what's happening. And they are not
Speaker 1: the only central planners, I mean central bankers that are
Speaker 1: doing that. Uh. And we also saw this week the
Speaker 1: e c B, of course, not to be on left,
Speaker 1: undone or outdone, I should say that's the European Central
Speaker 1: Bank and the European Central Bank head calls for separate
Speaker 1: framework to regulate crypto lending. Of course, of course, anything
Speaker 1: we can do for more power and more control. Right,
Speaker 1: So Christine Legarde introduces a Micah two idea m I
Speaker 1: c A to cover issues yet untouched by European regulators. So,
Speaker 1: heaven forbid, there's one part of the economy that the
Speaker 1: you're preen regulators don't have under control. Heaven forbid that,
Speaker 1: let's go ahead and get that under control. That's kind
Speaker 1: of what she's saying here, it says European Central Bank
Speaker 1: ECB President Christine Leguard voiced her conviction on the necessity
Speaker 1: of tighter scrutiny. We must have more control, of course,
Speaker 1: you know, for your safety, right, think about safety on
Speaker 1: a spectrum. So a lion the king of the jungle, right,
Speaker 1: the lion can is the king. It doesn't have any predators.
Speaker 1: It can kill basically whatever it wants. It's free, but
Speaker 1: it's not a it's not a it's not an easy
Speaker 1: life for the lion. Um It's still has to fight
Speaker 1: other lions to protect its space. It's still you know,
Speaker 1: it could get killed by a hunter. It maybe doesn't
Speaker 1: find any food or water, it starves to death. It's free,
Speaker 1: but it's not an easy life. We could take that
Speaker 1: king of the jungle. We could take that majestic lion
Speaker 1: and we could make it safe. We could put it
Speaker 1: in a zoo. We could lock it into a cage,
Speaker 1: never let it out of the cage, and just every
Speaker 1: day slip a little bit of food and water in
Speaker 1: the bowl. And now that lion is safe, but it's
Speaker 1: not free. And so that's the spectrum that we're on.
Speaker 1: And so now they want Christine Lagarde, the ECB president
Speaker 1: wants her. She voiced her conviction on the necessity of
Speaker 1: tighter scrutiny for your protection. Leguard expressed her thoughts not
Speaker 1: only about the looming inflation in Europe and around the
Speaker 1: globe that she caused, but also about the increases it
Speaker 1: didn't say that I had did that, but also about
Speaker 1: the increasing activities of crypto asset staking and lending. In
Speaker 1: Leguard's opinion, she said that they need a major they
Speaker 1: need a major regulatory package known as the Crypto Assets
Speaker 1: m I c A. Now I will bring it to
Speaker 1: your attention in case you aren't aware. Um the guard
Speaker 1: expressed her thoughts not only about the looming inflation. So
Speaker 1: you did that, you printed all the money, you caused
Speaker 1: all the inflation. Thanks for that, and now we have
Speaker 1: to deal with your mistakes, and now you want to
Speaker 1: control us even harder. Now, I do want to point
Speaker 1: out that Christine Legarde, who's here voicing her strong conviction UM,
Speaker 1: who runs the ECB, the European Central Bank, formerly of
Speaker 1: the i m F International Entary Fund, is a convicted criminal.
Speaker 1: She is a convicted criminal, UM, and she's running the
Speaker 1: momentary supply that affects my life, in your life. I
Speaker 1: didn't vote for her. I don't know why she's not
Speaker 1: in prison. I'd like to know that answer. But here
Speaker 1: she is, UM, you know, saying that there's a small
Speaker 1: little part of the market that's not being regulated and
Speaker 1: we should step up, and we we need in her words, uh,
Speaker 1: necessity of tighter scrutiny. We need tighter scrutiny. Of course
Speaker 1: for your protection. Of course, she says, quote innovations and
Speaker 1: these unexplored and uncharted territories put consumers at risk. So UM,
Speaker 1: imagine uh in the United States, you know, moving from
Speaker 1: the East coast to the west coast, moving out west,
Speaker 1: the wild, wild West, and explorers had to set out
Speaker 1: into what did she say, unexplored uncharted territories put consumers
Speaker 1: at risk. Yes, when you venture out into unexplored and
Speaker 1: uncharted territories, yes, you're at risk. Where the sailors leaving
Speaker 1: Spain to find the New World charting unregulated or unexplored
Speaker 1: uncharted territories, were they at risk? Yes? Where the people
Speaker 1: going into space to explore uncharted territories were they at risk? Yes?
Speaker 1: Of course, of course when you go into uncharted and
Speaker 1: explored territories, you're at risk. So what is her solution
Speaker 1: these it's these innovations that cause this. Well, she's on
Speaker 1: record saying, quote, innovation is a threat to our financial stability.
Speaker 1: That's what you said. That's her words. Innovation is a threat.
Speaker 1: Here she says it again, innovations in these unexplored, uncharted
Speaker 1: territories put consumers at risk. So what should we do
Speaker 1: if I mean, heaven forbid, we can't allow people to
Speaker 1: take risk? Were it's our job to protect them? Right? Well?
Speaker 1: No where does it say that, UM is their job
Speaker 1: to protect private property rights, but not to protect us
Speaker 1: from risk. And so um, if they want to put
Speaker 1: us at risk and the risk is coming from exploring
Speaker 1: uncharted territories, which come from innovation, then does that mean
Speaker 1: we have to get rid of the innovation, because that's
Speaker 1: what her other quote said, innovation is a threat. She
Speaker 1: she went on to say here quote where the lack
Speaker 1: of regulation is often covering fraud, completely illegitimate claims about
Speaker 1: valuations and very often, you know, speculation, oh as well
Speaker 1: as criminal dealings end quote, So covering fraud as well
Speaker 1: as criminal dealings. Um, she's the one that's a convicted felon. Well,
Speaker 1: I don't think she's a felon. She's a convicted criminal.
Speaker 1: That's different over in Europe. She's a She's the one
Speaker 1: that's a convicted criminal. Not me. Shouldn't she be the
Speaker 1: one that's regulated. She wants to regulate me. She wants
Speaker 1: to regulate you from being involved in innovations because those
Speaker 1: innovations allow you go to unexplored, uncharted territories, which could
Speaker 1: put you at risk. Heaven forbid, because those those new,
Speaker 1: brand new things could be potentially covering up fraud and
Speaker 1: um and criminal dealions like she participates in. Not me,
Speaker 1: don't put that on me, don't put that on you,
Speaker 1: And she says it's also often, very very often speculation.
Speaker 1: So speculation is most people think of of of investing,
Speaker 1: but most investing is really speculation. It's buying an asset
Speaker 1: thinking that it's gonna go up in value. UM So
Speaker 1: it's gambling. But we're being driven into speculation because they've
Speaker 1: printed so much money. They pushed yields to zero. I
Speaker 1: can't make money on my money anymore. My money is
Speaker 1: losing value so fast. I have to speculate in order
Speaker 1: just to stay even, because if I don't, I lose
Speaker 1: all my wealth. She created that system by running the
Speaker 1: I m F and run the ECB, and now she's
Speaker 1: saying that innovations and exported territories put consumers at risk
Speaker 1: where they're trying to speculate. We're trying to speculate because
Speaker 1: you put us in a situation where we have to speculate.
Speaker 1: It's the only way. It's insane. The the official made
Speaker 1: a separate mention of decentralized finance DeFi, which from her
Speaker 1: point of view, also poses a real risk to financial stability. Yeah,
Speaker 1: because if we create a brand new way for people
Speaker 1: to do loans and get money, then they may not
Speaker 1: need this old, corrupt, incompetent system anymore. Imagine that. UM,
Speaker 1: I am one that believes that good ideas win because
Speaker 1: they're better. That's what competition allows. You want to keep
Speaker 1: the old way great, I'm gonna go try this new way.
Speaker 1: I might found out this new way sucks, and I
Speaker 1: may never go back to this new way. I may
Speaker 1: say that this old, tried, true way is the best way,
Speaker 1: but how do we know that unless we're trying new things.
Speaker 1: But of course they don't want that because it poses
Speaker 1: a real risk to financial stability, she says, convicted criminal. Anyway,
Speaker 1: that's my opinions. Love to here, what do you think
Speaker 1: I'm I got. I got so much more to cover
Speaker 1: that you are going to be blown away. We're gonna
Speaker 1: talk more about cryptocurrency and what some of the biggest
Speaker 1: investors in the space are saying about it, where it's going,
Speaker 1: and some big, big wholes that were explored this week
Speaker 1: that you need to know about that and more. When
Speaker 1: I'm back, you're listening to the Mark Moa show talking
Speaker 1: about this decentralized revolution, talking about bitcoin, talking about cryptocurrencies,
Speaker 1: and covering the biggest news of the week, so you
Speaker 1: know what is going on. I got a whole lot
Speaker 1: to cover when I'm back, So don't go away, all right,
Speaker 1: Welcome back. You are listening to the Mark ma Show
Speaker 1: where we talk about the world that is going through
Speaker 1: this decentralized revolution. Of course we're looking at the lens
Speaker 1: of politics, finance, and technology. Is the pendulum swings from
Speaker 1: centralization to decentralization and is being led by bitcoin technological
Speaker 1: revolution that brings us decentralization. And it's never a dull
Speaker 1: moment in the space. It's a it's a it's a
Speaker 1: new space. It's over a decade old, it's a dozen
Speaker 1: years old, but yet it's still moving so fast. Of course,
Speaker 1: one of the ways that you look at new technology
Speaker 1: is not at the price. You look at it through
Speaker 1: the growth of the network and the development on the network,
Speaker 1: and it's happening very very fast, and so it gives
Speaker 1: us plenty to talk about. But if we're looking at
Speaker 1: the price, unfortunately, um well fortunately fortunately unfortunately. But what's
Speaker 1: how your own Uh, if you hold a lot of
Speaker 1: bitcoin and you're very long, it's unfortunate because the price
Speaker 1: is down currently right now. If you're looking to add
Speaker 1: to your bitcoin position, maybe it's a good thing because
Speaker 1: it's at historical, um, amazing buying opportunities right now. So
Speaker 1: it depends on which way you look at it. But unfortunately,
Speaker 1: one of the keys with investing, I don't care if
Speaker 1: it's real estate or stocks or crypto or whatever. One
Speaker 1: of the keys is never be a forced seller because
Speaker 1: you don't want to sell the oldest, the oldest added
Speaker 1: in in uh in investing. If you can, just if
Speaker 1: you can, just remember this one tip, you're always gonna
Speaker 1: be okay, all right, this is the secret. The secret
Speaker 1: to investing is simple. If you can get this one
Speaker 1: thing right. Okay, do you have a pen? Right this
Speaker 1: down by low and sell high? So simple, right, so simple.
Speaker 1: The problem is you don't know when it's low, and
Speaker 1: you don't know when it's high. You only know when
Speaker 1: the bottom is in when you're looking backwards on it,
Speaker 1: and you only know when it's the top when are
Speaker 1: looking backwards. Otherwise you don't know. So we we know
Speaker 1: when things are cheap or expensive, we don't know when
Speaker 1: they're at the bottom or the top. But you never
Speaker 1: want to be a forced seller because you could be
Speaker 1: forced to sell at the bottom. But remember you're supposed
Speaker 1: to buy at the bottom and then sell it up,
Speaker 1: not not to sell at the bottom. But what happens
Speaker 1: is things go down, you use leverage. Um, you could
Speaker 1: be a forced seller and forced to sell at the bottom.
Speaker 1: You don't want to do that, And that is exactly
Speaker 1: what's been happening with some bitcoin miners. Bitcoin miners had
Speaker 1: to sell their entire May harvest reports say so miners,
Speaker 1: of course, Um. Part of the reason why bitcoin mining
Speaker 1: works so amazingly well is like gold mining, there's a
Speaker 1: true cost of capital. They have to put out real
Speaker 1: money in order to mine that, they have to buy
Speaker 1: the equipment, they have to spend the money in electricity, etcetera. Right,
Speaker 1: and so there's a real cost. And as the price
Speaker 1: of bitcoin has come down, some of the miners aren't
Speaker 1: making as much money as they were making before. Now
Speaker 1: when they're making a lot of money, say they're producing
Speaker 1: bitcoin for you know, a third seen fifteen thousand dollars,
Speaker 1: but bitcoins forty thou Well, they can sell thirty percent
Speaker 1: of their bitcoin and they could break even. But when
Speaker 1: the price of bitcoin is down at they maybe have
Speaker 1: to sell all their bitcoin to break even. And so
Speaker 1: that is what is causing this to happen. And so
Speaker 1: we said says that bitcoin miners are um having to
Speaker 1: dump their bitcoin in order to fund their operations. And
Speaker 1: miners are having to liquidate their bitcoin holdings. New data
Speaker 1: from Arcane Research shout out to Arcane UH shows that
Speaker 1: public bitcoin mining firms sold one percent of their production
Speaker 1: in May compared to the usual So typically, like I said,
Speaker 1: they sell that covers their expenses, but they were forced
Speaker 1: to sell a percent Now, um supply and demand. When
Speaker 1: we have more people selling than we have buying, that
Speaker 1: pushes the prices down. So in an environment like we
Speaker 1: have right now where the crypto markets down, all the
Speaker 1: markets are down, the crypto markets down. UM, it's trading
Speaker 1: very liquid, there's not a lot of people buying and selling. UM.
Speaker 1: And then you dump an enormate amount of bitcoin on
Speaker 1: the market when there's not a lot of buyers, what's
Speaker 1: going to happen to the price? Obviously it goes down,
Speaker 1: UM says. In the first four months of two public
Speaker 1: bitcoin mining firms sold thirty of their mind production, which
Speaker 1: increased three times in May and is expected to rise
Speaker 1: even further in June. Now it is it is UH.
Speaker 1: You do need a note here that public bitcoin miners
Speaker 1: only make up about the total network hash rate and
Speaker 1: so UM, but their behavior reflects the sentiments of private miners.
Speaker 1: As well. So, um, this is for public miners only
Speaker 1: about the network, we can't we don't know what everybody
Speaker 1: is doing, or there's no way to know. But of
Speaker 1: course publicly traded companies are forced to disclose what they're doing,
Speaker 1: and so we can see what's happening there, and says
Speaker 1: the decline in the price of bitcoin has also made
Speaker 1: many mining machines unprofitable, forcing miners to leave the cryptocurrency market. Now,
Speaker 1: the way that bitcoin mining works, though, is that unlike gold.
Speaker 1: So it with gold mining. Let's say that the price
Speaker 1: of gold that's at eight announces right now, let's say
Speaker 1: it jumped to twenty announced. Well, all of a sudden,
Speaker 1: more people would go out to mine gold. And when
Speaker 1: more people go to mind gold, there would be more
Speaker 1: gold would come into the world, right come into existence.
Speaker 1: But bitcoin mining is different. Let's say that the price
Speaker 1: of bitcoin jumped to a hundred thousand or whatever a million,
Speaker 1: and everybody wants to go mind it, they want to
Speaker 1: jump in and start mining bitcoin. Will no more bitcoin
Speaker 1: comes into the world. The same amount of bitcoin comes
Speaker 1: out every single day. The more people there are to
Speaker 1: mind it. You just have to split the same amount
Speaker 1: of bitcoin with more people, less people mind it than
Speaker 1: it goes between less people. So what happens is when
Speaker 1: you're mining the bitcoin, your single biggest expense is the electricity.
Speaker 1: Right you buy the machine, everyone has to pay about
Speaker 1: the same for the machine, and then I need electricity
Speaker 1: to run it. That's your single biggest expense. Now, if
Speaker 1: you want to make more money, you cut your expenses obviously, right.
Speaker 1: So in California, where I'm at in the summer, the
Speaker 1: top tier of the electric electric system, our payment are
Speaker 1: our pricing is forty cents per kill of water hour,
Speaker 1: which is insane. In Texas it could be eight cents,
Speaker 1: So forty cents in California, eight cents in Texas. So
Speaker 1: in Texas I could be profitable running at eight cents.
Speaker 1: So some people are running in at eight cents, some
Speaker 1: people run at five cents, some people run at four cents,
Speaker 1: three cents, two cents. So the people that mind it
Speaker 1: two or three cents make way more money than the
Speaker 1: people minding an eight cents or ten cents or twelve cents.
Speaker 1: That makes sense. So what happens is when the price
Speaker 1: starts going and I think it was at about fifteen cents,
Speaker 1: I didn't look it up today. I probably should have,
Speaker 1: but I think it was that you needed about fifteen
Speaker 1: cents per killer water to break even, So now I
Speaker 1: don't know where it's at. Now, Let's say that it
Speaker 1: dropped down to ten cents to break even. So now
Speaker 1: everybody is paying more than ten cents, and that's the
Speaker 1: hypothetical number. I didn't look it up, but anybody paying
Speaker 1: more than ten cents today would have to shut their
Speaker 1: equipment off or they could run it out a lot us.
Speaker 1: The beauty is um that everyone who stays on gets
Speaker 1: more bitcoin than they were getting before, so they're getting
Speaker 1: a bigger chunk. But let's say that it keeps dropping,
Speaker 1: so then it goes down to eight cents. Well, now
Speaker 1: the people at ten cents have to shut off or
Speaker 1: mind it a loss, so they shut off. Now everybody's
Speaker 1: staying every everybody remaining gets more than they were getting before.
Speaker 1: And so basically, whoever gets the power for the cheapest
Speaker 1: or has the biggest pockets to mine in the negative
Speaker 1: can run the longest, and whoever runs the longest gets
Speaker 1: in a bigger share of the amount of bitcoin released.
Speaker 1: So if you're paying the lowest amount, you can ride
Speaker 1: this out. Longer, or like I said, if you're you know,
Speaker 1: publicly traded company or something, and you have big war
Speaker 1: chest of money, you can you can also go into
Speaker 1: the red if you want to force nobody, no business
Speaker 1: wants to run in the red in the negative, and
Speaker 1: you shouldn't have to. And so the whole key here
Speaker 1: is two things for bitcoin mining, and one what is
Speaker 1: the price of power that you're paining? And two what's
Speaker 1: eyes of war chest do you have in order to
Speaker 1: back it up? To mind in the red? Now, as
Speaker 1: I said in California, forty cents of what I can't mind.
Speaker 1: There's no way, Like I'm not even close. I'm not.
Speaker 1: I'm never profitable from day one. But if I'm in
Speaker 1: Texas and I'm paying eight cents, maybe I can be.
Speaker 1: You're listening to the Mark Moa Show. We're talking about
Speaker 1: the decentralized Revolution. We're talking about bitcoin, We're talking about
Speaker 1: the cryptocurrency space. We're looking at the at the world
Speaker 1: through the lens of politics, finance, and technology, trying to
Speaker 1: make sense out of what is going on in a
Speaker 1: world without of control central bankers who are hell bent
Speaker 1: on creating booms and creating bus never mind who's getting
Speaker 1: caught in their wake. I got a whole lot more
Speaker 1: to cover when I get back, So don't go away,
Speaker 1: all right, Welcome back. You are listening to the Mark
Speaker 1: Mos Show. We're talking about the decentralized revolution that the
Speaker 1: world is going through right now. Of course, we're looking
Speaker 1: at it through the lens of politics, technology, and finance,
Speaker 1: which to me intersects right at bit coin. Of course,
Speaker 1: we're looking at bitcoin. We're looking at the cryptocurrency. We've
Speaker 1: been talking a lot about the FED, you know, the
Speaker 1: central bankers, the Central Bank of Europe, the ECB, Central
Speaker 1: Bank of the United States, the Fed. Of course, anybody
Speaker 1: that's ever heard of bitcoin or cryptocurrencies would probably stay
Speaker 1: right off the bat like, well, there's no way the
Speaker 1: central bankers would ever allow that to happen because they
Speaker 1: don't want to give up control over the money. But
Speaker 1: that's the very reason why it has to succeed. We
Speaker 1: don't want, we don't need, we can't take any more
Speaker 1: central control over the money supply for them to increase
Speaker 1: it and decrease it at will. And so we look
Speaker 1: at the way that bitcoin is growing, both in the
Speaker 1: network and the development that's happening on the network. And
Speaker 1: we look at bitcoin differently than cryptocurrency because bitcoin is decentralized.
Speaker 1: That's the real revolution here. Every fifty years, approximately forty
Speaker 1: to sixty years, there is a technological revolution. That's something
Speaker 1: that that changes the course of humanity and it drives
Speaker 1: financial markets. Not new technologies, but technological revolutions. And that's
Speaker 1: what bitcoin is. It's a centralized revolution that's changing the world. Uh.
Speaker 1: Contrast that to cryptocurrencies that are neither crypto nor are
Speaker 1: they decentralized, like Salona, for example. Now Salona, hang on,
Speaker 1: before you hate me, let's just take a look at
Speaker 1: what Salona is. So, Um, A lot of people made
Speaker 1: a lot of money in Salona. They bought it for
Speaker 1: when it was really cheap, and they wrote it all
Speaker 1: the way back up and they made a lot of money.
Speaker 1: And so they might hear me saying something like this
Speaker 1: and go, what what are you saying? Like, I've done
Speaker 1: so well with Salona. Look how much money I made
Speaker 1: with Salana. And I'm not saying it wasn't a good
Speaker 1: way to increase your U S dollars. So I'm certainly
Speaker 1: not saying that. Um, But we've seen Salona peak at
Speaker 1: where was it two hundred and fifty eight dollars per
Speaker 1: s o L and today it's sitting at thirty four.
Speaker 1: It's a pretty big drop from two fifty eight to
Speaker 1: thirty four. As a matter of fact, if I pull
Speaker 1: that up, I don't know. I didn't calculate that I
Speaker 1: had a time. What type of a drop that is.
Speaker 1: Let's see here if I can do that on the
Speaker 1: fly while you're hanging out with me, s O L.
Speaker 1: Here we go, USD boom, there we go. Well, this
Speaker 1: doesn't look good. It's measured out, so we go at
Speaker 1: the top right here. That was in November. By the way,
Speaker 1: here we are UM nine point one down from its peak.
Speaker 1: But it's not about how much you made or lost.
Speaker 1: It's more about this cryptocurrency and is it really decentralized
Speaker 1: so UM. The big differentiator between bitcoin and crypto is
Speaker 1: the consensus mechanism. So Bitcoin uses something known as proof
Speaker 1: of work, where you have to buy these miners, you
Speaker 1: have to put them in the network, and you have
Speaker 1: to buy electricity to put in work. You have an
Speaker 1: economic incentive to be a good actor in the network. UM.
Speaker 1: Unlike most cryptocurrency, including Solana, it uses something called proof
Speaker 1: of Steak or pos which is another accor him which
Speaker 1: you know what I mean, And I'm not gonna say
Speaker 1: it now, UM Salana doesn't really Most people think it's decentralized,
Speaker 1: it's it's cryptocurrency, it's blockchain, and they don't really think
Speaker 1: about this. It's not decentralized. It's being centrally controlled. Now
Speaker 1: you can just do a Google search because you probably
Speaker 1: don't believe me, UM, and just look at how many
Speaker 1: times Salona has been shut down. Probably in the last
Speaker 1: twelve months. I think they've shut it down two or
Speaker 1: three times. Who who Who shut it down? Who decided
Speaker 1: it should be shut down? How do you shut something
Speaker 1: down that's decentralized. Nobody can shut bit going down. Nobody
Speaker 1: ever has. It's never been shut down. So who did it,
Speaker 1: who decided and how did they do that? And that's
Speaker 1: just the tip of the iceberg. This week we saw
Speaker 1: Salona defied platform votes to control a well account in
Speaker 1: bid to avoid liquidation chaos. So I've been talking about
Speaker 1: the last couple of weeks all these liquidations that are
Speaker 1: happening UM with UM started with terror Luna, and then
Speaker 1: it's been spread into Celsius and now it's going into
Speaker 1: you know, all these other platforms UM and through the
Speaker 1: DeFi space, we're seeing massive liquidations happen. And with so Lana,
Speaker 1: somebody was using a defy which is decentralized finance. Remember,
Speaker 1: nobody's supposed to be able to control. The revolution is decentralization,
Speaker 1: which means nobody can control it. Right. I don't want
Speaker 1: Jerome pal and a couple of guys deciding what to
Speaker 1: do with the dollar. I don't want anyone. I don't
Speaker 1: want to take it from him and give it to
Speaker 1: someone else. I want nobody to have any control over it,
Speaker 1: so it's always the same instead of being manipulated. Right,
Speaker 1: And so that's that's that's the revolution decentralization. SLANA isn't decentralized.
Speaker 1: So what is it, Well, it's this defied platform. What's
Speaker 1: defied decentralized finance. So the goal is is that what
Speaker 1: we have this decentralized finance that nobody can control. Right, So, um,
Speaker 1: there's no permission. I can use it as I see fit, right,
Speaker 1: But unfortunately it's not really decentralized. It's not much finance
Speaker 1: either for that matter. And so what happens is all
Speaker 1: these people are using these decentralized finance protocols to earn
Speaker 1: guield their steaking, and they're taking out and they're wrapping
Speaker 1: it and they're restaking it and all these different things.
Speaker 1: But what we're finding out over the last couple of
Speaker 1: weeks is none of these they're decentralized, and these companies
Speaker 1: are stay are pulling their steakes and and and liquidated him.
Speaker 1: Now in this case with Salana, Salana uses back to
Speaker 1: what I was saying, a proof of steak, not proof
Speaker 1: of work. Now, what proof of work means has already
Speaker 1: explained that. But I can have way more bitcoin than you,
Speaker 1: but I have no more say in the network than
Speaker 1: you do, because nobody has anything in the network because
Speaker 1: the network doesn't change, which is what you want you
Speaker 1: with with your money proof of steak. What that means
Speaker 1: is whoever, what it means you take your tokens and
Speaker 1: you stake them, you lock them up in like a contract,
Speaker 1: and whoever has the most token steaked gets the most vote,
Speaker 1: the votes for what, well, the votes for whatever they want. Now,
Speaker 1: I don't like that. I want to be in a
Speaker 1: system that doesn't change. So let me explain to what
Speaker 1: happened here. So in this the users of Salona based
Speaker 1: borrowing and lending services. So Land voted Sunday to force
Speaker 1: a takeover of the protocol's largest account. Should I repeat that,
Speaker 1: users of Salana voted sunday to take over one of
Speaker 1: the protocol users account, the largest account. That's democracy. This
Speaker 1: is gonna come uh controversial. I want to throw one
Speaker 1: right by past you. You You may not like it, but
Speaker 1: I was just gonna throw it out there, and if
Speaker 1: you don't like it, you can send any right back.
Speaker 1: It's a line from Anchorman. But anyway, look, democracy is
Speaker 1: rule of the minority of the majority. So, um, there's
Speaker 1: ten of us sitting around, and nine of us get
Speaker 1: together and say we think that you should just give
Speaker 1: us all your money. You know what, you make too much,
Speaker 1: you don't really need that. The nine of us have
Speaker 1: have all agreed that you should just give us everything.
Speaker 1: That's democracy, and that's what proof of steak is. And
Speaker 1: so the users of Salona got together and voted I'm
Speaker 1: gonna read it again, to force a takeover of the
Speaker 1: protocol's largest account. So they voted collectively that this large
Speaker 1: account that had about twenty million dollars should be taken
Speaker 1: over and liquidated. Kind of sounds like the system that
Speaker 1: we have today, sort of like the Federal Reserve where
Speaker 1: they just changed the rules arbitrarily and they could just
Speaker 1: take over anybody's account. They could freeze accounts, so they
Speaker 1: could seeze accounts. That will sort of sounds like that.
Speaker 1: Where's the revolution in that the revolution is having a
Speaker 1: fixed set of rules that can't be changed, can't be manipulated,
Speaker 1: and I don't have to worry about the majority voting
Speaker 1: and against me to steal all my money, which is
Speaker 1: exactly what happened. It says the unprecedented governance vote Solon's
Speaker 1: first will grant Solon Labs quote emergency powers like everything else,
Speaker 1: to liquidate the Wells assets about twenty million in twenty
Speaker 1: million dollars worth of soul Solon governance token holders who
Speaker 1: participated voted yes with the ninety seven point five percent
Speaker 1: of the vote. Who is an agreement that so and
Speaker 1: so should give us all their money? Yeah, we're all
Speaker 1: for it. Who's going to vote to take less money? Right,
Speaker 1: We're always going to vote to get more money. But
Speaker 1: that's the very problem. There's no revolution. That's a system
Speaker 1: that we have today. Now. Look, if you made a
Speaker 1: bunch of money in Salona. Great. I'm glad for you happy.
Speaker 1: It was a great investment, and there's lots of penny
Speaker 1: stocks you can make a lot of money in as well.
Speaker 1: But it's a it's a difference between the revolution that's
Speaker 1: happening with true decentralization and what I call the decentralized revolution.
Speaker 1: Bitcoin is decentralized. There's no one to vote to steal
Speaker 1: my money. So I'd like to money there. But what
Speaker 1: do you think? Let me know you listen to the
Speaker 1: Mark Moas Show talking about the decentralized Revolution, Bitcoin, cryptocurrencies
Speaker 1: and more. That's what I got for you today. Thanks
Speaker 1: so much for listening. I'll see you next time.