Speaker 1: Hello, and welcome to another episode of The Mark Moss Show,
Speaker 1: where we talk about the decentralized revolution each and every week,
Speaker 1: of course looking at through the lens of politics, finance,
Speaker 1: and technology, and the technology of course being bitcoin and
Speaker 1: cryptocurrencies that are changing the world. And boy, there's a
Speaker 1: lot going on at the intersection of that. That's where
Speaker 1: we like to focus. And we can see the intersection
Speaker 1: of that today from all the political side, the financial side,
Speaker 1: and the technology side. And specifically I'm talking about some
Speaker 1: news that came out this week from the European Central Bank,
Speaker 1: the Euro, the European Central Bank. And if you're listening
Speaker 1: to this in ther United States, you're saying, well, what
Speaker 1: the heck do I care about the Euro? Well, you
Speaker 1: care about the Euro because obviously our markets are very connected.
Speaker 1: You also care about it because what's happening over there
Speaker 1: is that kind of like a smaller test bed of
Speaker 1: what will probably be tried over here at some point.
Speaker 1: And I think it also illustrates exactly what's happening and
Speaker 1: where things are going. So um, the e c B
Speaker 1: European Central Bank, met this week the head of the
Speaker 1: European Central Bank, the ECB, Christine Lagarde, who by the way,
Speaker 1: is a convicted criminal and she's still in charge of
Speaker 1: the European Central Bank. She's previously of the i m
Speaker 1: F International Monetary FUM. They met this week to talk
Speaker 1: about the Digital Euro, a common European project. So we
Speaker 1: talked a lot about money going digital. Uh, and of
Speaker 1: course we talked about cryptocurrency. So there's the bitcoin et cetera,
Speaker 1: and then we have the governments that want to try
Speaker 1: to control it and are using something called central bank
Speaker 1: digital currencies. So the digital Euro or a central bank
Speaker 1: digital currency is what we're talking about. And I wanted
Speaker 1: to kind of highlight some of the things that they
Speaker 1: talked about in this meeting. We know that they're coming.
Speaker 1: We know that because they've told us as much. We
Speaker 1: know that China has already rolled THEIRS out, and of
Speaker 1: course why wouldn't China. A central bank digital currency is
Speaker 1: the ultimate tool, the ultimate tool for control, and we
Speaker 1: know that because they've told us that. I played the
Speaker 1: clip I believe it was last week of augustin Carston.
Speaker 1: He's the head of the b I S. The b
Speaker 1: I S is the central bank above all central banks,
Speaker 1: and he said as much in that wording. He said
Speaker 1: that it is a tool for total control. So it's
Speaker 1: not just speculation. This is what it tells. As a
Speaker 1: matter of fact, I believe if I still have that
Speaker 1: clip available, let's reet it right here. Let's just play
Speaker 1: it right here. A key difference in with the CBDC
Speaker 1: is the Central Bank will have absolute control on the
Speaker 1: roots and regulations that will determine the use of that
Speaker 1: expression of central branch liability. And also we will have
Speaker 1: the technology to enforce that. Those are those two issues
Speaker 1: are extremely important and okay, so I take them at
Speaker 1: their word total control. So let's take a look at
Speaker 1: what they said in this meeting this week of things.
Speaker 1: So one, she gave an address, Christine the Guard, head
Speaker 1: of the ECB, gave an address to the European Union
Speaker 1: to talk about this, and she says, maintaining citizens trust
Speaker 1: in money and payment services in the digital age is
Speaker 1: an important objective in itself. It's interesting. Um, it's not
Speaker 1: just un important objective. It is the most important objective
Speaker 1: because there is no such thing as intrinsic value. All
Speaker 1: value is subjective and so people have to trust. People
Speaker 1: have to assign value to that. If they don't trust it,
Speaker 1: if they don't assign value to it, then they won't
Speaker 1: use it. We see this happen all the time. We
Speaker 1: talked about in a previous segment, the tulip mania in Holland,
Speaker 1: where people thought tulips were more valuable, more viable, more valuable.
Speaker 1: They had trust, but then also nobody wanted tulips in
Speaker 1: the crash. We taught with beanie babies, and so we
Speaker 1: assigned trust to things. But in Venezuela they print so
Speaker 1: much money nobody trusts anymore. It's laying all over the streets.
Speaker 1: Nobod even bothers to pick it up. So maintain the
Speaker 1: citizens trust money and payment services and the digital ages
Speaker 1: an important objective. No, it's the most important objective. If
Speaker 1: nobody trust the money, they're not going to use it, period.
Speaker 1: It says that it's in the basis of our economies
Speaker 1: to function effectively. Yeah, you have everyone has to have
Speaker 1: a money that they all trust. If I give you
Speaker 1: a money that you know that I can just go
Speaker 1: back into your account and take back from you, you
Speaker 1: won't trust that. You're not going to accept that, right, Okay, now,
Speaker 1: she says uh. She says a model for payments is
Speaker 1: undergoing a potentially disruptive transformation led by three developments. What
Speaker 1: are the three developments? First, people are increasingly paying digitally
Speaker 1: instead of using cash. Yes, I don't want to see
Speaker 1: cash disappear. Cash is very important because cash is private.
Speaker 1: If I hand you cash, no one needs to know
Speaker 1: about that transaction. It's between you and I, and no
Speaker 1: one needs to be in the middle of that. If
Speaker 1: I pay you for something via Venmo, Venmo goes to
Speaker 1: my credit card, and my credit card goes to my bank,
Speaker 1: and my bank talks to your bank, and your bank
Speaker 1: talk to your credit card, and your credit card goes
Speaker 1: to Venmo, there's like all those steps in the middle.
Speaker 1: Every he has a say in that. Everyone takes the
Speaker 1: piece of that transaction. Everybody could censor that transaction if
Speaker 1: they want. If I hand you cash, no one needs
Speaker 1: to know. No one needs to know, And so I
Speaker 1: like cash. I don't want to go away. But we're
Speaker 1: paying things usually, so I pretty much pay for everything
Speaker 1: with my debit card on my credit card, I get
Speaker 1: paid electronically. I send wire transfers. That's just the day
Speaker 1: and age. As a matter of fact, over all payments
Speaker 1: are done digitally now, and we have the Venmos and
Speaker 1: we got the paypals, and got the cash apps, and
Speaker 1: we got the wire transfers and the debit cards, et cetera.
Speaker 1: But it says that as this continues to trend um,
Speaker 1: as cashes lose use, less and less public money being
Speaker 1: government money, could ultimately lose its role as a monetary anchor,
Speaker 1: which is true, which is not a bad thing in
Speaker 1: my opinion. We should always have innovation, we should always
Speaker 1: have competition. Second, in the absence of a public anchor.
Speaker 1: So if as more people move to digital public money,
Speaker 1: government money could lose its role, and in the absence
Speaker 1: of that public anchor, the emergence of new kinds of
Speaker 1: digital assets could harbor instability and confusion amongst citizens about
Speaker 1: what is money and what is not. So um, if
Speaker 1: we have all these new types of digital money and assets, um,
Speaker 1: it could cause confusion among people. You know, the people
Speaker 1: are just too stupid. They don't know. We have to
Speaker 1: tell them what to do, because what would they do
Speaker 1: without us the government. Uh, they'll they'll never get along.
Speaker 1: I mean, they won't even know what money is. That's
Speaker 1: what she said. I'm quoting her. Uh, confusion amongst citizens
Speaker 1: about what is money. They won't even know what money
Speaker 1: is unless we tell them. That's what she's saying. I mean,
Speaker 1: it's insanity. First of all, what is money, Well, money
Speaker 1: is a money's communication. Money communicates value. Money is used
Speaker 1: to store my value. It's used to store my energy.
Speaker 1: So I exert my energy digging a hole if I
Speaker 1: don't need to use that Uh, that money then gets
Speaker 1: paid back to me. I dug that hole, that person
Speaker 1: pays me in money, and that money sits there and
Speaker 1: allows me to And that's my energy. I expended energy
Speaker 1: to dig the hole. I save it in the money,
Speaker 1: and now I could use that money at a later
Speaker 1: date tomorrow to not have to dig the hole because
Speaker 1: I have money. Um, that's what money is. But apparently
Speaker 1: we need the government to tell us what money is.
Speaker 1: It says that. Take for example, crypto assets. She says
Speaker 1: their unbacked variants such as bitcoin and ethereum are too
Speaker 1: volatile to act as a means of a payment. So
Speaker 1: one I would agree with her on that, Yes, they
Speaker 1: are too vulnerable volatile to act as a means of
Speaker 1: payment today. Today, money is emergent. Money evolves over time.
Speaker 1: There's a path. First, it starts as a collectible. If
Speaker 1: enough people collect it like the rich buy fine art
Speaker 1: and cars and things like that. If enough people collected
Speaker 1: it could doesn't always, it could evolve into a store
Speaker 1: of values. So the rich store their wealth in fine
Speaker 1: art and collectibles. It could go from a collectible to
Speaker 1: a store value. Then maybe, if it has the right
Speaker 1: attributes of money, it could evolve to the next stage,
Speaker 1: which be a medium of exchange. She's saying, it's not
Speaker 1: that today. Sure, it's only been around for a decade,
Speaker 1: give it some time. It's getting there. It has the
Speaker 1: right things um. And then third, she says the entry
Speaker 1: of big text into payments could increase the risk of
Speaker 1: market domination and dependence on foreign payment technologies, with consequences
Speaker 1: for Europe's strategic autonomy. How dare anybody cut into our
Speaker 1: monopoly over the financial system, our ability to manipulate and
Speaker 1: inflate the monetary system. How dare anybody try to get
Speaker 1: in on that. That's our game, that's our monopoly. Then
Speaker 1: we not only have a monopoly over money, we have
Speaker 1: a monopoly over violence, and we will use that violence
Speaker 1: to make sure we don't lose our autonomy over money.
Speaker 1: That's what she's saying here. She didn't talk about the
Speaker 1: violence part. But she said that if we let big
Speaker 1: tech get in, we the government could lose our strategic autonomy, which,
Speaker 1: of course yes, that's my goal. By the way, I
Speaker 1: am on a mission to separate money and state. We
Speaker 1: want to get out of the hands of the people.
Speaker 1: If you're just tuning in, you're listening to the Markma Show.
Speaker 1: We're talking about the decentralized revolution, how the world of politics, finance,
Speaker 1: and technology are clashing and changing, and we're looking at
Speaker 1: this specifically as the European Union got together to talk
Speaker 1: about what the future of money and technology is. I
Speaker 1: got a whole lot of cover when I come back.
Speaker 1: You don't want to miss this. This is breaking news.
Speaker 1: I'm gonna cover that and some other stories I have
Speaker 1: about what happened with the SEC in the United States
Speaker 1: and the future of cryptocurrencies in the US, which has
Speaker 1: just been set. Don't miss it. I'll be right back.
Speaker 1: Don't go away, all right, welcome back. If you're just
Speaker 1: tuning in, you're listening to the Markma Show. We're talking
Speaker 1: about what's happening in the world of central bank digital
Speaker 1: currencies and the European Central Bank just met and Christine
Speaker 1: the Guard the convicted criminal that runs that bank. UM.
Speaker 1: I was given an address and she was talking about
Speaker 1: this new digital payment. UM. Talking about designing the digital
Speaker 1: public money. She said, quote, issuing a digital Euro would
Speaker 1: indeed safeguard people's confidence. M hm. So people don't have
Speaker 1: confidence in a paper euro, but if it's digital, then
Speaker 1: people would have confidence in it. What changes fundamentally Now,
Speaker 1: if I have a physical piece of paper, a Euro
Speaker 1: or a dollar or whatever, in my hand, I know
Speaker 1: I have it. There's no counterparty risk. If I put
Speaker 1: it into the bank, there's risk that bank may not
Speaker 1: give that money back to me. They may go insolvent.
Speaker 1: There's counterparty risk. If I have it in my hand,
Speaker 1: then I have confidence I have it's under my mattress, right.
Speaker 1: But if they issue a digital euro, then it would
Speaker 1: safeguard my confidence. No, it would actually take away my
Speaker 1: confidence more. Um. She said, Okay, So here's the part
Speaker 1: I really want to get to. Privacy. So she said, uh,
Speaker 1: the code legislators, the lawmakers must define the balance between
Speaker 1: competing public objectives in the policy areas that the uh
Speaker 1: So the two aspects that they want to compete are. UH.
Speaker 1: One is privacy. So let's talk about privacy first, she says,
Speaker 1: the first one is privacy in our public consultation. So, uh,
Speaker 1: the European Central Bank, just like the Federal Reserve of
Speaker 1: the United States did as well. They opened it up
Speaker 1: for public comment. Let's see what the public have to say, which,
Speaker 1: of course they say that we're in a democracy. We're not.
Speaker 1: We're in a republic. But either way, it's uh, they
Speaker 1: should listen to us. The government works for the people
Speaker 1: of the people, by the people, for the people, so
Speaker 1: of course they should care what we have to say.
Speaker 1: So they opened up for comment. What do the people say,
Speaker 1: So that's what she's saying. In our public consultation, when
Speaker 1: we asked for stuff, forty three percent of respondents, almost
Speaker 1: half ranked privacy as the most important aspect of the
Speaker 1: Digital Euro, well ahead of any other feature. So it's
Speaker 1: clear that that we want the digital Euro to be
Speaker 1: attracted if we wanted to be attractive, and needs to
Speaker 1: be designed in a way that meets people's privacy expectations.
Speaker 1: That's what she says. Almost half of the people surveyed
Speaker 1: say it's the most important thing, way above anything else.
Speaker 1: So if we wanted to be attractive, it has to
Speaker 1: have that thing. But here's the butt. There's always a butt.
Speaker 1: But I'm quoting her. But full anonymity such as offered
Speaker 1: it by cash, does not appear a viable option in
Speaker 1: my opinion. What do we care about your opinion, your
Speaker 1: chivicted criminal? Anyway, such such it doesn't appear a viable
Speaker 1: option in my opinion, it would contravene other public policy objectives.
Speaker 1: So it would contradict it. It would go against other
Speaker 1: public policy objects, not what the public wants, never mind
Speaker 1: the public one privacy, but it would go against other
Speaker 1: public objectives, meaning what we want to do to the people,
Speaker 1: that's what you say, um, such as ensuring compliance with
Speaker 1: anti money laundering rules and combating the financing of terrorism,
Speaker 1: because you know your six dollars is going to fund terrorism.
Speaker 1: Never mind the four billion dollars that we sent to
Speaker 1: terrorists nations, never mind the weapons that we left in Afghanistan,
Speaker 1: never mind all the weapons that we're sending to Ukraine
Speaker 1: and going to who knows where. Never mind that you're
Speaker 1: six d bucks though we better know where that's going by,
Speaker 1: because I mean, shoot, you could be uh, you know,
Speaker 1: laundrying money and funding terrorism with that. How dare you
Speaker 1: only we're allowed to do that. We're the monopoly on
Speaker 1: that right. So, um, listen what she's saying. Although they
Speaker 1: told us it's the most important thing by going away,
Speaker 1: this is what the big thing want. It's just it's
Speaker 1: just not really it contradicts what we want. Um. So
Speaker 1: she says, uh, it would contrabute objectives such as insuring
Speaker 1: compliance with anti money laundry rules and combining the finance
Speaker 1: and terrorism. And it would also make it virtually impossible
Speaker 1: to limit the use of digital euro as a form
Speaker 1: of investment. So it would make it virtually impossible to
Speaker 1: limit the use. Listen to what she said, Remember what
Speaker 1: Augustine Carson from the b I said. It would give
Speaker 1: us total control. So she says that if we did this,
Speaker 1: if we gave the people what they wanted with it,
Speaker 1: did dual euro the CBDC, it would make it virtually
Speaker 1: impossible to limit the use. They don't want you to
Speaker 1: use your money as you see fit. I mean, yeah,
Speaker 1: it's your money, and yeah, you you you sacrificed and
Speaker 1: gave up your life energy to get that money, but
Speaker 1: it's not really yours. It's not yours to use as
Speaker 1: we want. We have to be able to limit the use.
Speaker 1: That's what she says. Think about these words that they're saying.
Speaker 1: It would make it virtually impossible to limit the use. Yes,
Speaker 1: that's the point. My money is my money. I should
Speaker 1: be able to use it as I see fit. What else? Okay?
Speaker 1: The next part, the legal tender status part. The second
Speaker 1: aspect is the legal tender status Um although an acceptance
Speaker 1: obligation has to be weighed against principles such as contractual
Speaker 1: freedom and competition, So meaning that you know, we should
Speaker 1: have the freedom to use it as we want. We
Speaker 1: shouldn't bear in mind that it is a constitutional feature
Speaker 1: of cash essential bank money to be lead will tender. Now,
Speaker 1: why does it have to be legal tender money? Now?
Speaker 1: I can't speak about every other country, but in the
Speaker 1: United States, it's still a free country. We are the
Speaker 1: land of the free. We don't need the government to
Speaker 1: tell us what we can accept as forms of payment.
Speaker 1: If I want to come over to your house and
Speaker 1: build a fense for you in exchange for a good
Speaker 1: or service that you want to give to me, that's
Speaker 1: my labor. I can give you my labor. If I
Speaker 1: want to trade you this iPhone that I have in
Speaker 1: my hand. Um, you can accept this iPhone as your
Speaker 1: as your payment. If I want to send you bitcoin,
Speaker 1: then you can accept bitcoin as your payment. We don't
Speaker 1: need the government to tell us what we can accept
Speaker 1: as payment or in exchange. I should say for goods
Speaker 1: and services. It can be my labor, it can be
Speaker 1: another product I have. We don't need it to be
Speaker 1: legal tender. And that's a big problem that I have
Speaker 1: with all these people that say we need regulations in
Speaker 1: bitcoin and crypto graz. No, we don't. We don't need it.
Speaker 1: We don't need the government to tell us what we
Speaker 1: can do. And again I'm speaking on behalf of the
Speaker 1: United States. The government does not give us permission to
Speaker 1: do anything. Because we're a free country. The government only
Speaker 1: takes away our rights. That's important point. At the week
Speaker 1: of these midterm elections, everyone's going to vote. The first
Speaker 1: thing my dad told me when I turned eighteen is
Speaker 1: remember every law you go to vote for, whether good
Speaker 1: or bad, is less freedom. So we're a free country.
Speaker 1: We're free to do things. The government tells us what
Speaker 1: we can't do, like you can't kill somebody, you can't
Speaker 1: rob somebody. Okay, those laws restrict our freedom and they
Speaker 1: should be all right, but we don't ask for permission.
Speaker 1: We don't ask for laws that tell us what to do,
Speaker 1: so we don't need them. But she said a side
Speaker 1: effect of illegal tender status maybe that it facilitates network effects,
Speaker 1: allowing citizens to have the option to quote unquote pay
Speaker 1: anywhere and easily access the digital euro. That would be
Speaker 1: a problem. We don't want that. We want to control it.
Speaker 1: We want to make sure it's only use in our country.
Speaker 1: They said that the digital euro may have transaction limits
Speaker 1: and store of value you caps um. Exact limits are
Speaker 1: not set in stone, but Panetta mentioned a three thousand
Speaker 1: euro um store of value limit, So you can't store
Speaker 1: more than three thousand euros. That's hoarding. You can't hoard
Speaker 1: the money. You've got to spend your money. How dare
Speaker 1: you save? Let us take that they want to put
Speaker 1: a three thousand euro limit and one thousand transaction monthly limit,
Speaker 1: a one thousand transaction monthly limit, because there will be
Speaker 1: risks that people could use these possibilities to move money
Speaker 1: and we can't control that. This is what's coming. This
Speaker 1: is what central bank digital currencies are. Understand what this is.
Speaker 1: So when you when you hear it being talked about
Speaker 1: you know what's happening. Talk about these ideas with your
Speaker 1: friends and family to educate them as well. I want
Speaker 1: to talk more about what's happening in the United States
Speaker 1: and what the SEC is doing with cryptocurrencies. In Bitcoin,
Speaker 1: a big judgment happened this week that really sets the
Speaker 1: precedence of what's coming next for maybe you're an next
Speaker 1: favorite crypto token. If you're just tuning in, you're listening
Speaker 1: to the markma Show. We're talking about the decentralized Revolution,
Speaker 1: talking about the way the world is changing through this,
Speaker 1: and I got a lot more to cover when I
Speaker 1: come back. Don't go away, I'll be right back, all right,
Speaker 1: Welcome back. You are listening to the Mark Moss Show,
Speaker 1: and we are talking about the decentralized Revolution. Of course,
Speaker 1: we're talking specifically about what the government's doing in regards
Speaker 1: to cryptocurrency, and this week we saw big news coming
Speaker 1: from the SEC Securities Exchange Commission talking about regulations on cryptocurrencies. Now,
Speaker 1: I'm not a fan of trying to apply a whatever
Speaker 1: hundred year old law of the how we test um
Speaker 1: of what is a security and try to apply that
Speaker 1: to cryptocurrency. I don't think it fits. It's kind of
Speaker 1: like a square peg in a round hole. But nevertheless, UM,
Speaker 1: that's where we are. And we saw this week the
Speaker 1: SEC came out and decided went to went to court
Speaker 1: against a platform called Library lb r Y and Library
Speaker 1: is um sort of like a decentralized YouTube. UM. It's
Speaker 1: also known as Odyssey, which by the way, my YouTube
Speaker 1: videos are on Odyssey, so you should check me out
Speaker 1: there either on YouTube just search market Muscle on YouTube
Speaker 1: or on Odyssey. And YouTube is obviously a very centrally
Speaker 1: controlled and centrally planned and manipulated platform. They kick anybody
Speaker 1: off that they want. But um, Odyssey is like a
Speaker 1: decentralized Virgin. The problem that they had is that they
Speaker 1: launched their own token, LBC a token, and the SEC
Speaker 1: sued Library saying last March saying that they sold as
Speaker 1: native LBC token in violation of federal securities laws. It
Speaker 1: says here the SEC sued Library in March of two
Speaker 1: thousand twenty one a leegend that LBC tokens were securities
Speaker 1: and that the startup had violated to scurities laws by
Speaker 1: selling them without registering with the agency with the SEC. Now,
Speaker 1: Library pushed back said that the OBC tokens were not securities,
Speaker 1: and that the SEC did not give it fair notice
Speaker 1: that it's cell of LBC was subject to securities laws,
Speaker 1: thus violating the company's right to due process. But ah,
Speaker 1: I mean again, we have securities laws. A lot of
Speaker 1: people wanted to operate in this gray area, and thousands
Speaker 1: and thousands of thousands, tens of thousands of companies have
Speaker 1: gotten away with it because the SEC hasn't really formally
Speaker 1: come out and put the put the put the boot down,
Speaker 1: so to speak. Um, and they haven't really aggressively pursued
Speaker 1: and prosecuted these types of companies. It says here, though,
Speaker 1: that the federal Judge of the District Court of District
Speaker 1: of New Hampshire ruled saying that quote, no reasonable trier
Speaker 1: of fact could reject the SEC's contention that it offered
Speaker 1: a security and Library does not have a tribal defense
Speaker 1: that lacked fair notice. They basically said, no, it doesn't matter. Um.
Speaker 1: The founder of Library, Jeremy Kaufman, has maintained that the
Speaker 1: outcome of the case would have sweeping implications for the
Speaker 1: wider crypto industry, and the reason why it has sweeping
Speaker 1: into implications is because the way the legal system works
Speaker 1: is they use case law case laws, that's precedents. So
Speaker 1: whenever an attorney is arguing a case, they're gonna say, well,
Speaker 1: in this case versus this case, this is what happened.
Speaker 1: And the more that that case is being used or cited,
Speaker 1: the stronger it becomes. And so this case law could
Speaker 1: then be have sweeping implications because then other cases after
Speaker 1: it could be tried. Pointing back to this, it says
Speaker 1: that it says that it establishes a precedent that threatens
Speaker 1: the entire US cryptocurrency industry. This is from the founder Coffin.
Speaker 1: He said, under the sec versus Library standard, almost every cryptocurrency,
Speaker 1: including ethereum and those our securities. Uh. Yeah, well that's
Speaker 1: that's basically right. Um, that's basically right. It says, Uh,
Speaker 1: one significant case the Library ruling could impact is the
Speaker 1: sec suit against Ripple Labs and two of its executives,
Speaker 1: who have been charged with selling one point three billion
Speaker 1: in unregistered securities. Of course, we're talking about Ripple Labs,
Speaker 1: which is selling the x RP token, which that x
Speaker 1: RP army is strong, and they're probably mad for me
Speaker 1: even saying something like that, but again I'm just quoting him,
Speaker 1: so don't don't get the messenger. Don't don't get the
Speaker 1: messenger here. But yeah, I mean, if they're claiming that
Speaker 1: the library is a security, then it makes sense that
Speaker 1: Ripple labs XRP token is also security. Um. Ripple Labs
Speaker 1: defense is the same. It's hinged on its claim that
Speaker 1: it's native token XRP is not a security and that
Speaker 1: by failing to provide clarity on whether x RP was
Speaker 1: a security, the SEC did not provide fair notice. It's
Speaker 1: exactly what library tried to argue, and the SEC slapped
Speaker 1: him down right. As I said, the judge actually said, um,
Speaker 1: libraries not have a tribal defense, that it lacked fair notice.
Speaker 1: So if they don't, how does se how does how
Speaker 1: does x RP and Ripple Labs have that? And again
Speaker 1: that's the whole reason why the founder Kaufman is saying that, Uh,
Speaker 1: this is bad. It's bad for everybody else. Now this
Speaker 1: is just the This is the ruling so far, and
Speaker 1: it means that libraries case will not go to trial.
Speaker 1: So it's done. Uh. A status hearing to determine what
Speaker 1: the next steps aren't is slated for the end of
Speaker 1: the month November one, and we'll come back and see
Speaker 1: what it is now. Um, the library has been on Twitter,
Speaker 1: They've been all over social media talking about this. They said, look,
Speaker 1: we don't we don't know what to do. What could
Speaker 1: we have done? We didn't know. They didn't give us
Speaker 1: clear guidance. They didn't give us advanced notice. How were
Speaker 1: we to know what to do. We tried to do
Speaker 1: the best that we could, but you didn't give us
Speaker 1: fair notice. I commented on that, and I said, well,
Speaker 1: what you could have done is not launched your own token.
Speaker 1: That's the whole problem. They could have launched the platform
Speaker 1: which allows me to post my YouTube videos on there
Speaker 1: in a decentralized manner. They could have done that. Nothing
Speaker 1: wrong with what they did. It's the token. They created
Speaker 1: a token out of thin air, the l b R,
Speaker 1: the lb uh l l b R y LBC sorry
Speaker 1: LBC token. They created a token and sold it out
Speaker 1: of thin air. That's the problem. So the problem isn't
Speaker 1: the platform. Of the problem is the token, and it's
Speaker 1: the l b R y LBC token LBC token Library.
Speaker 1: And there we go. Let's take a look at the token.
Speaker 1: It's valued at one point two cents per token. If
Speaker 1: we look at the year to date valuation, the mark
Speaker 1: ket cap was as high as twenty four million, so
Speaker 1: not that big, and now it's down to seven million.
Speaker 1: The tokens were as high as three and a half
Speaker 1: cents and now they're down to one point two cents,
Speaker 1: so um, you know, not a huge impact on that.
Speaker 1: If we look at the all when they came out
Speaker 1: of the gate, though, wow, look at this UM when
Speaker 1: they came out of the gate. Here we are back
Speaker 1: in January of eighteen, they had a hundred and fifty
Speaker 1: seven million dollar valuation. In April of two one, they
Speaker 1: had a hundred and seventy two million dollar valuation, and
Speaker 1: today it's all the way down to thirteen. So be
Speaker 1: careful what you put your money into. Uh, it could
Speaker 1: crash down very hard. Especially um it's gone from fourteen
Speaker 1: million two seven millions. It's dropped in half fifty valuation
Speaker 1: dropped since this news broke. And so if this news
Speaker 1: break on Ripple Labs and x r P, if it
Speaker 1: breaks on any other cryptocurrency, you probably expect about the
Speaker 1: same thing. Expect to lose about half your money. Again,
Speaker 1: don't kill the messenger. That's just the news. What else,
Speaker 1: what else? What else? Oh um man as a as uh.
Speaker 1: As this continues to ramp up, we continue to see
Speaker 1: lots of pain across the cryptocurrency space. You know, the
Speaker 1: bear markets cause a lot of infighting. Um. The bear
Speaker 1: markets are times to invest, there the time to build,
Speaker 1: but it's also the time, you know, because money gets
Speaker 1: tight and people start going broke that you see lots
Speaker 1: of problems happen. We saw the Salona blockchain has dropped
Speaker 1: dramatically as well in the past twenty four hours, and
Speaker 1: part of it is that a thousand of their validators
Speaker 1: went offline. What the heck does that even mean? It's
Speaker 1: supposed to be a decentralized protocol, but of course it's not.
Speaker 1: They're all hosted on a cloud provider that shut them
Speaker 1: all down at the same time, and so a lot
Speaker 1: of steak holders are unable to get their money back
Speaker 1: out some decentralized protocol. That is, if you're just tuning
Speaker 1: in you're listening to the Mark Mo Show, we're talking
Speaker 1: about the cryptocurrency space right now, as we go through
Speaker 1: the decentralized revolution. I want to talk about this fifty
Speaker 1: tho bitcoins that were just seized and what does that mean?
Speaker 1: I got that and more when I come back in
Speaker 1: a minute. You don't want to miss it. Don't go away.
Speaker 1: I'm gonna be right back. All right, Welcome back. You
Speaker 1: are listening to the Mark Mo Show. We're talking about
Speaker 1: the decentralized Revolution. We're going through some of the biggest
Speaker 1: breaking news it's happening in the cryptocurrency space this week.
Speaker 1: By the way, the price of bitcoin and cryptocurrency is
Speaker 1: on sale today fire cell with the news of f
Speaker 1: t X. The f t X exchange is crashing and
Speaker 1: burning um. Looks like by Nance took them out, potentially
Speaker 1: might take them over, we don't know, but it dropped
Speaker 1: all the way down to a pretty nice discount. Waked
Speaker 1: down about now about eighteen thousand, five hundred. I'm wearing
Speaker 1: my hottle shirt in uh In in a celebration of that.
Speaker 1: You know, I typically were just a black shirt, but
Speaker 1: I'm wearing this hottle shirt. The shirt was sent to
Speaker 1: me as a gift, So shout out to r D
Speaker 1: Fine Arts. You can find them on Twitter or you
Speaker 1: can check out their website. Ron Ron D Gaspierre's check
Speaker 1: them out. One of these hottle shirts that make some
Speaker 1: really killer stuff, some cryptocurrency and bitcoin merchandise. But anyway, Uh,
Speaker 1: the hottle is to hang on for dear life. You know.
Speaker 1: Turmoil in the market, drive the price down. We look
Speaker 1: at that as an opportunity, but to scare some people
Speaker 1: out and they sell it, and that's kind of what happens.
Speaker 1: We saw big news this week um in News broke
Speaker 1: that the US seized fifty thousand bitcoins were aided the
Speaker 1: Silk Road marketplace. Now a lot of people would see
Speaker 1: that headline and go, wait a minute. I thought bitcoin
Speaker 1: was censorship resistant. I thought it was immutable, I thought
Speaker 1: it was safe. How could they seize it? How does
Speaker 1: the government seize it? So the bitcoin which was obtained
Speaker 1: in two thousand twelve UM was related to the darknet
Speaker 1: marketplace silk Road. They seized fifty thousand, six hundred seventy
Speaker 1: six bitcoins. It was the largest cryptocurrency seizure to date UM,
Speaker 1: but has since been surpassed by the seventy thousand bitcoin
Speaker 1: seized in February in relation to the hack of the
Speaker 1: bitfin x crypto exchange. So it's the second largest now.
Speaker 1: It was the largest at fifty thousand. Now there's a
Speaker 1: bigger one. In seventy thousand, the coins were found that
Speaker 1: an address in Georgia connected with James Zong. The Feds
Speaker 1: also found six D sixty one dollars in cash, as
Speaker 1: well as various precious metals. Now what happens here. Bitcoin
Speaker 1: is an't able to be hacked. They can't just steal it.
Speaker 1: The Feds can't just come in and take your bitcoin.
Speaker 1: They can't just find it and get it. Here's what happened.
Speaker 1: They went to the guy's house and they found his
Speaker 1: wallet where he had it. So think about think about
Speaker 1: bitcoin like this. You have a public address and you
Speaker 1: have a private key. The private key is basically what
Speaker 1: secures it. So if if we were like in the
Speaker 1: gold Age, for example, and I had gold, and I
Speaker 1: went and buried the gold in my backyard or out
Speaker 1: in the desert somewhere, and I made a map, so
Speaker 1: I have a treasure map so I can go back
Speaker 1: and find my gold again. And then I have I'm
Speaker 1: a house, I have that treasure map. And if the
Speaker 1: Feds come and break into my house and they find
Speaker 1: my treasure map laying on my coffee table or on
Speaker 1: my countertop or on my desk. Well, then they're like, well, Mark,
Speaker 1: we know where your gold is. We're gonna go get it,
Speaker 1: all right. But if they storm my house and they
Speaker 1: can't find my treasure map, let's say that I've hit
Speaker 1: it very well. Or let's say I don't even have
Speaker 1: a treasure map because I remember in my head where
Speaker 1: I put the gold. Then the Fed comes to my
Speaker 1: house and says, hey, Mark, give us the gold, and
Speaker 1: I'm like, no, tell us where it is. I'm like, no,
Speaker 1: I'm not going to tell you. And so bitcoin is similar,
Speaker 1: where I have a private key that enables me to
Speaker 1: move that bitcoin if I want. Now, the only way
Speaker 1: the Feds can get this fifty tho bitcoin, or any
Speaker 1: bitcoin for that matter, is if they can get ahold
Speaker 1: of the private key. Now, what happens is a lot
Speaker 1: of times is people back up the private key, which
Speaker 1: you should, by the way, if you have a private
Speaker 1: key in your wallet or wherever, you want to back
Speaker 1: that up, and the way you would do it is
Speaker 1: just go into your app and say, you know, back up,
Speaker 1: and it's going to give you twelve words. That's your
Speaker 1: seed phrase. Now the twelve words are random, you know,
Speaker 1: monkey banana, ocean, boat, rope, whatever, and you have twelve
Speaker 1: random words all right. Now, you can choose to memorize
Speaker 1: those twelve words, which is like you would memorize the
Speaker 1: treasure map so you know where the where the gold is.
Speaker 1: You could write those twelve words down, which might be better,
Speaker 1: just like making a treasure map on paper. The problem
Speaker 1: is how do you secure that treasure map so people
Speaker 1: don't get it, which is the same as how do
Speaker 1: you secure those twelve words that you write down. Now,
Speaker 1: a lot of people make the mistake and they write
Speaker 1: those twelve words down in their computer, they put them
Speaker 1: into Google Docs, they put them into ever note or
Speaker 1: something like that. Then Google or hackers could potentially find
Speaker 1: that backup phase and if they do, they can just
Speaker 1: get those twelve words. They can go download any app
Speaker 1: on their phone. They could plug those twelve wards in
Speaker 1: and instantly have access to your funds. So my advice is,
Speaker 1: if you're going to write them down, write them down
Speaker 1: on physical paper. Potentially you could put that physical paper
Speaker 1: in a safe. That way, if your house burns down
Speaker 1: or floods or someone breaks in, they can't get ahold
Speaker 1: of that paper. Now, if they get your safe that's
Speaker 1: a problem. But you want to protect that. Now, you could,
Speaker 1: like I said, not write it down and you could
Speaker 1: just memorize it. Other options I've heard people do is,
Speaker 1: for example, you could have like a book, maybe a
Speaker 1: journal that you keep, maybe a diary or something like that,
Speaker 1: and you could write out ext and like every you know,
Speaker 1: we're every every first word on the line is one
Speaker 1: of your seed phrases. So you kind of have like
Speaker 1: this like cryptographic storage of your seed phrase. I've heard
Speaker 1: of people doing it, like they do like a photo
Speaker 1: collage on their wall, and like every third photo represents
Speaker 1: the word from their seed phrase, for example. So there's
Speaker 1: ways that you can hide that seed phrase in plant site.
Speaker 1: Like I said, you could just remember it, but you know,
Speaker 1: Heaven forbid you hit your head and forget it or
Speaker 1: something like that. Another option would be that you would
Speaker 1: have like a um a multi signature storage. So what
Speaker 1: that means instead of having one private key, you have
Speaker 1: three private keys, and then um you would need to
Speaker 1: of the three in order to do a transaction, and
Speaker 1: then I could hide those in different places. So for example,
Speaker 1: I can give one to my parents, one to my attorney,
Speaker 1: and I keep one for example, or one to my
Speaker 1: girlfriend or one to my business partner or whatever it is.
Speaker 1: So you divide up those three keys. Now, the key
Speaker 1: is no pun indended is that nobody has more than
Speaker 1: one key, and with one key you can't do anything.
Speaker 1: So if I keep one, I give my parents want
Speaker 1: and I give my attorney one, and I needed to
Speaker 1: do a transaction, I'd have to get ahold of my
Speaker 1: attorney or get ahold of my parents in order to
Speaker 1: sign the other key. But neither one of them can
Speaker 1: do anything because they only have one of the keys. Now,
Speaker 1: of course you'd want to make sure that the other
Speaker 1: two places where the keys are they don't know each other.
Speaker 1: You want to make sure. I could put one key
Speaker 1: in safety deposit box at one bank and one key
Speaker 1: and a safety deposit box at another bank, you know.
Speaker 1: So there's any number of ways that you could do that.
Speaker 1: But like they said, the key is is that uh
Speaker 1: the person that you give it to you, they can't
Speaker 1: do anything without it. Now I'm protected, so I don't
Speaker 1: have to memorize it in my head. Um, if somebody
Speaker 1: were to break into my house and steal my safe,
Speaker 1: if somebody were to come in and torture me, they
Speaker 1: couldn't get access to that. So the FED they came in,
Speaker 1: how did they get it? Well, in the in the
Speaker 1: seventy thousand Big One, I believe when they came into
Speaker 1: the house, the computer was open, the computer was unlocked,
Speaker 1: and when they went on the computer they found the key.
Speaker 1: So it's all about hiding the key and how do
Speaker 1: you protect it in my In my opinion, I think
Speaker 1: the multi signature way is the single best way to
Speaker 1: do it. But it all depends on how much you have.
Speaker 1: So if you have a little bit of money, you
Speaker 1: can put it in your sock drawer. If you have
Speaker 1: more money, you want to hide it in the wall.
Speaker 1: If you have even more money, you want to bury
Speaker 1: it somewhere. You have even more money, you need a
Speaker 1: big safe. Right If you have a bunch of gold,
Speaker 1: maybe you need to build a vault in your backyard.
Speaker 1: If you have a bunch of gold, you need to
Speaker 1: build a big vault and have armed security there. So
Speaker 1: the more you have, the more you need to spend
Speaker 1: protecting it. Now, the beauty with bitcoin is that it
Speaker 1: doesn't matter if you have one dollar worth of bitcoin
Speaker 1: or a hundred billion dollars worth of bitcoin. It still
Speaker 1: cost the same amount of money to secure it, meaning
Speaker 1: you just put it behind a cryptog cryptographic cree heat. Now,
Speaker 1: the amount of time and effort you put into it
Speaker 1: might vary. Right, So obviously download an app on your
Speaker 1: Android or iPhone is super easy. Download the app, put
Speaker 1: it in super easy, but it's the least secure way. Um,
Speaker 1: doing a multi signature device doesn't really lost me any
Speaker 1: more money, but it does cost me more time. I
Speaker 1: have to figure that out. I have to figure out
Speaker 1: where to put the keys and things like that. The
Speaker 1: beauty is doesn't matter if I have a dollar a
Speaker 1: hundred billion dollars. It doesn't cost me any more money
Speaker 1: on like gold or cash, but it will take you
Speaker 1: a little bit more time, and it's up to you
Speaker 1: to figure out what you want to do to protect that.
Speaker 1: All right, you've been listening to the Mark Moa show.
Speaker 1: Of course, we talked about the decentralized revolution each and
Speaker 1: every week through the lens of politics, finance, and technology,
Speaker 1: and that technology is bitcoin and it's changing the world
Speaker 1: rapidly as we speak. We can see the financial system crumbling,
Speaker 1: and we can see the political institutions crumbling, and we
Speaker 1: can see technology or as they say software eating the world,
Speaker 1: digitized books, digitized music, digitized movies, and of course money
Speaker 1: is coming next. We covered a lot of information. We
Speaker 1: talked about the big news of finance taking out FTX.
Speaker 1: We talked about all the latest breaking news and if
Speaker 1: you've missed any of it, don't where I got your
Speaker 1: back to sc on your favorite podcast player and just
Speaker 1: search There a Moss Show. But that's what I got
Speaker 1: forre you today. Thanks for listening until next time.