1 00:00:00,040 --> 00:00:02,640 Speaker 1: Hello, and welcome to another episode of The Mark Moss 2 00:00:02,720 --> 00:00:06,519 Speaker 1: Show where we're talking about bitcoin, We're talking about cryptocurrencies. 3 00:00:06,519 --> 00:00:10,520 Speaker 1: We're talking about the decentralized revolution that is happening right now. 4 00:00:10,520 --> 00:00:13,560 Speaker 1: We're living through this and we're documented each and every 5 00:00:13,560 --> 00:00:17,720 Speaker 1: step of the way. Big, big, big things are happening 6 00:00:18,200 --> 00:00:20,760 Speaker 1: right now as I'm taking taking the time to make 7 00:00:20,800 --> 00:00:23,200 Speaker 1: this recording, as we're as I'm talking to you for 8 00:00:23,280 --> 00:00:26,840 Speaker 1: the Mark Moa Show, and that is uh, the entire 9 00:00:26,880 --> 00:00:30,400 Speaker 1: cryptocurrency market cap is literally melting down. It's like a 10 00:00:30,400 --> 00:00:32,840 Speaker 1: sea of red. But it's not just the cryptocurrency market, 11 00:00:33,080 --> 00:00:38,680 Speaker 1: it's the entire market. We're talking about the NASDAC. We're 12 00:00:38,680 --> 00:00:42,560 Speaker 1: talking about this, the tex stocks, we're talking about um, 13 00:00:42,760 --> 00:00:45,280 Speaker 1: you know the tech darleans that are down. I think 14 00:00:46,040 --> 00:00:48,040 Speaker 1: exchanges down or that index is down by more than 15 00:00:48,880 --> 00:00:52,040 Speaker 1: some of the big darlens they're like Zoom and Shopify 16 00:00:52,240 --> 00:00:56,720 Speaker 1: and Peloton are down like eighty percent or more. Um. 17 00:00:56,760 --> 00:00:59,280 Speaker 1: But even other things like gold is down. I mean, 18 00:00:59,320 --> 00:01:02,560 Speaker 1: we're seeing um things getting hammered all the way across 19 00:01:02,600 --> 00:01:05,160 Speaker 1: the board, and even some of the big Darlin's like 20 00:01:05,720 --> 00:01:09,880 Speaker 1: um Tesla. Even Tesla is getting absolutely crushed right now 21 00:01:10,760 --> 00:01:13,560 Speaker 1: UM and even safe haven assets. Now today it looks 22 00:01:13,560 --> 00:01:16,080 Speaker 1: like gold is doing a little bit better than it 23 00:01:16,160 --> 00:01:21,120 Speaker 1: has been, but typically people think about gold as being 24 00:01:21,200 --> 00:01:25,679 Speaker 1: that safe haven hedge. But yeah, even even uh even 25 00:01:25,760 --> 00:01:29,680 Speaker 1: Tesla looks like it's getting absolute crushed right now, which 26 00:01:30,400 --> 00:01:33,280 Speaker 1: I wonder if that's going to affect Elon must bid 27 00:01:33,440 --> 00:01:39,479 Speaker 1: for buying Twitter M it's down about um since it's 28 00:01:39,520 --> 00:01:42,560 Speaker 1: November high. Uh so that's interesting. The whole world is 29 00:01:42,600 --> 00:01:45,520 Speaker 1: melting down, and of course the cryptocurrency markets are being 30 00:01:45,640 --> 00:01:48,720 Speaker 1: completely hammered. If you look at um coin market cap, 31 00:01:48,760 --> 00:01:51,480 Speaker 1: which is kind of a listing of all the cryptocurrencies 32 00:01:51,480 --> 00:01:55,000 Speaker 1: that are out there, you can see, um, what do 33 00:01:55,040 --> 00:01:58,640 Speaker 1: we have nineteen thousand four D cryptocurrencies listed here? And 34 00:01:58,680 --> 00:02:00,480 Speaker 1: if you scroll through, I mean, it's just a sea 35 00:02:00,720 --> 00:02:04,600 Speaker 1: of red. The only green that I see at the 36 00:02:04,640 --> 00:02:07,560 Speaker 1: time that I'm talking to you right now is uh 37 00:02:07,960 --> 00:02:12,080 Speaker 1: us D coin U s D C. I see binance 38 00:02:12,120 --> 00:02:16,680 Speaker 1: coin b U s D and I see shoot man, 39 00:02:17,160 --> 00:02:21,000 Speaker 1: uh true us D. So basically we have the stable 40 00:02:21,000 --> 00:02:23,600 Speaker 1: coins are the only things that are still in the 41 00:02:23,680 --> 00:02:26,959 Speaker 1: green here, and that is uh, that's the big story. 42 00:02:27,040 --> 00:02:30,240 Speaker 1: The big story is the stable coins themselves and So 43 00:02:30,320 --> 00:02:32,640 Speaker 1: the big, big story is the stable coins, and in 44 00:02:32,720 --> 00:02:36,840 Speaker 1: particular U s T so us T is a terror 45 00:02:36,919 --> 00:02:41,560 Speaker 1: lunas stable coin, and there's big things happening with that, 46 00:02:41,639 --> 00:02:43,680 Speaker 1: and it appears to be I don't want to say 47 00:02:43,680 --> 00:02:45,800 Speaker 1: it's the cause of all the market panic. It's certainly 48 00:02:45,800 --> 00:02:48,840 Speaker 1: not the cause, but it's definitely exaggerated. So I want 49 00:02:48,840 --> 00:02:50,880 Speaker 1: to break that down. I want to break down what 50 00:02:50,960 --> 00:02:54,200 Speaker 1: the heck the stable coins are. We're gonna talk about 51 00:02:55,760 --> 00:02:58,079 Speaker 1: the different types of different categories, how they're used, why 52 00:02:58,080 --> 00:03:00,240 Speaker 1: they're used, um, what the government wants to do about 53 00:03:00,240 --> 00:03:02,919 Speaker 1: regulating these things, um. And then we're gonna talk about 54 00:03:03,200 --> 00:03:05,640 Speaker 1: um the only two that I think are the ones 55 00:03:05,680 --> 00:03:07,240 Speaker 1: that you even want to be in. I want to 56 00:03:07,280 --> 00:03:11,720 Speaker 1: then talk about it from a historical perspective, because the 57 00:03:11,760 --> 00:03:14,639 Speaker 1: reality is is that stable coins are nothing new. It's 58 00:03:14,680 --> 00:03:16,359 Speaker 1: a matter of fact. I like talk about history of 59 00:03:16,400 --> 00:03:19,800 Speaker 1: the time. History doesn't just repeat at rhymes, uh, and 60 00:03:19,840 --> 00:03:22,359 Speaker 1: it's it's rhyming and it's repeating right now. So this 61 00:03:22,480 --> 00:03:25,600 Speaker 1: is nothing new. We've seen this before. UM. So I'm 62 00:03:25,600 --> 00:03:27,560 Speaker 1: gonna give you that a historical perspective, and then I'm 63 00:03:27,560 --> 00:03:30,480 Speaker 1: gonna give you the warnings and uh, some ways that 64 00:03:30,520 --> 00:03:33,119 Speaker 1: you can pretend potentially protect yourself. So lots of cover 65 00:03:33,360 --> 00:03:35,960 Speaker 1: today on the Markmall Show. Thanks for tuning in. If 66 00:03:35,960 --> 00:03:38,120 Speaker 1: you're not tuning in on a regular basis, then you 67 00:03:38,160 --> 00:03:42,000 Speaker 1: certainly should. You're probably missing out and so make sure 68 00:03:42,040 --> 00:03:43,400 Speaker 1: to set a re minder to be with me each 69 00:03:43,440 --> 00:03:45,960 Speaker 1: and every time at this same time, at the same channel. 70 00:03:46,440 --> 00:03:49,000 Speaker 1: So at the time of my recording, as I said, 71 00:03:49,200 --> 00:03:51,880 Speaker 1: it's an absolute blood bath. We see Bitcoin is down 72 00:03:53,200 --> 00:03:58,600 Speaker 1: on the seven day ethereums down, um finance coin x 73 00:03:58,720 --> 00:04:05,600 Speaker 1: r P, Cardano Salona fift. I mean, it's just an 74 00:04:05,640 --> 00:04:09,440 Speaker 1: absolute murder out there. And like I said, the the 75 00:04:10,480 --> 00:04:14,520 Speaker 1: markets are melting down. But the big thing that's dragging 76 00:04:14,520 --> 00:04:16,720 Speaker 1: down all the markets, including a lot of the big 77 00:04:16,720 --> 00:04:20,200 Speaker 1: hedge funds, including a lot of the blue chip stocks 78 00:04:20,240 --> 00:04:23,040 Speaker 1: like the Tesla's, and including the entire cryptocurrency market cap, 79 00:04:23,120 --> 00:04:26,599 Speaker 1: like I said, is this terror Luna situation that's going on. 80 00:04:27,400 --> 00:04:29,360 Speaker 1: And so let's talk about that real quickly. So the 81 00:04:29,400 --> 00:04:34,159 Speaker 1: first thing is we're talking about stable coins. So stable 82 00:04:34,200 --> 00:04:37,640 Speaker 1: coins are the big um darling of cryptocurrencies. Of course, 83 00:04:37,720 --> 00:04:41,960 Speaker 1: it's like this defy. DEFY stands for decentralized finance, which 84 00:04:41,960 --> 00:04:43,920 Speaker 1: a lot of people believe is one of the biggest 85 00:04:44,080 --> 00:04:49,160 Speaker 1: use cases to come out of cryptocurrencies, because supposedly everything 86 00:04:49,400 --> 00:04:54,360 Speaker 1: needs to be decentralized, right, isn't that the big isn't 87 00:04:54,360 --> 00:04:56,560 Speaker 1: that the big technological revolution that you talk about all 88 00:04:56,600 --> 00:04:59,920 Speaker 1: the time mark Um everything should be decentralized, will not. 89 00:05:00,520 --> 00:05:02,760 Speaker 1: That's not exactly right. No, I do talk about the 90 00:05:02,839 --> 00:05:05,760 Speaker 1: decentralized revolution, which is what we're witnessing, which is what 91 00:05:05,760 --> 00:05:09,600 Speaker 1: we're living through right now. Which, yes, the technological revolution 92 00:05:09,720 --> 00:05:15,159 Speaker 1: is decentralization. However, unpopular opinion is not everything needs to 93 00:05:15,240 --> 00:05:18,800 Speaker 1: be decentralized. Let me say it again for the people 94 00:05:18,800 --> 00:05:22,760 Speaker 1: in the back. Not everything needs to be decentralized. So 95 00:05:23,279 --> 00:05:28,320 Speaker 1: defy decentralized finance. Okay, really is it really decentralized? So 96 00:05:28,360 --> 00:05:30,600 Speaker 1: let's think about this. If I was going to make 97 00:05:30,640 --> 00:05:34,760 Speaker 1: a loan to somebody, I should know who that person 98 00:05:35,000 --> 00:05:38,440 Speaker 1: is and what the percentage chance or the risk that 99 00:05:38,480 --> 00:05:41,680 Speaker 1: they may or may not pay me back. I don't 100 00:05:41,720 --> 00:05:43,880 Speaker 1: think anybody listening to this would ever want to loan 101 00:05:44,600 --> 00:05:46,800 Speaker 1: money that you've worked for, your hard earned money that 102 00:05:46,839 --> 00:05:49,280 Speaker 1: you've saved up, loan that to someone who you don't know, 103 00:05:49,279 --> 00:05:51,440 Speaker 1: who they are, and you don't know what they're going 104 00:05:51,480 --> 00:05:54,000 Speaker 1: to use it for, and nor do you know what 105 00:05:54,080 --> 00:05:56,839 Speaker 1: the percentage chance the probability of them paying you back is. 106 00:05:56,920 --> 00:05:59,640 Speaker 1: That would be insane. I hope nobody here whatever think 107 00:05:59,680 --> 00:06:03,200 Speaker 1: about doing that. UM, And if you would think about 108 00:06:03,200 --> 00:06:05,480 Speaker 1: doing that, I think you should rethink that. And so 109 00:06:06,200 --> 00:06:09,799 Speaker 1: that thou think about that. In terms of decentralized finance, 110 00:06:09,839 --> 00:06:14,760 Speaker 1: what does that mean? Finance should be centralized. There should 111 00:06:14,760 --> 00:06:18,840 Speaker 1: be a central entity that's looking at the credit worthiness 112 00:06:18,880 --> 00:06:21,760 Speaker 1: of the borrower and determining if it's a good or 113 00:06:21,839 --> 00:06:25,200 Speaker 1: bad deal. They should determine that one person is less 114 00:06:25,279 --> 00:06:27,800 Speaker 1: risky and gets a better rate, someone is more risky 115 00:06:27,839 --> 00:06:32,160 Speaker 1: pays a higher rate. Somebody has to do that essential entity. 116 00:06:32,320 --> 00:06:34,960 Speaker 1: We don't need that to be decentralized. What other things 117 00:06:34,960 --> 00:06:37,720 Speaker 1: don't need to be decentralized, Well, lots of things. UM 118 00:06:37,800 --> 00:06:42,480 Speaker 1: for example, tracking UM logistics on on the supposedly on 119 00:06:42,560 --> 00:06:46,040 Speaker 1: the blockchain. Well, you could substitute the word blockchain for 120 00:06:46,360 --> 00:06:49,880 Speaker 1: database and so let's track them in a database. And 121 00:06:49,960 --> 00:06:53,200 Speaker 1: we do that now already amazing, isn't it? All? Right? 122 00:06:53,240 --> 00:06:56,120 Speaker 1: Now back to the lesson at hand. So this defied movement, 123 00:06:56,160 --> 00:06:59,960 Speaker 1: this decentralized finance movement has really been opened up. Why 124 00:07:00,000 --> 00:07:04,480 Speaker 1: I'd buy what's called yield farming. And so people are chasing, 125 00:07:05,160 --> 00:07:08,280 Speaker 1: chasing higher than average yield. So, for example, you put 126 00:07:08,320 --> 00:07:10,360 Speaker 1: your money in the bank. When you put your money 127 00:07:10,360 --> 00:07:13,560 Speaker 1: in the bank, the bank uses that money to create 128 00:07:13,680 --> 00:07:16,600 Speaker 1: more money by loaning it back out. Now, the bank 129 00:07:16,720 --> 00:07:20,200 Speaker 1: pays you interest on that money, because of course they're 130 00:07:20,280 --> 00:07:22,800 Speaker 1: using that money to make more money. Now, it used 131 00:07:22,800 --> 00:07:25,360 Speaker 1: to be that you could actually live off the amount 132 00:07:25,360 --> 00:07:27,480 Speaker 1: of interest that you get from the bank. When I 133 00:07:27,560 --> 00:07:31,200 Speaker 1: was a kid, you could make a tent on your 134 00:07:31,240 --> 00:07:32,960 Speaker 1: money sitting in the bank. You have a million bucks, 135 00:07:32,960 --> 00:07:35,000 Speaker 1: that would be a hundred thousand dollars a year hud 136 00:07:35,600 --> 00:07:39,400 Speaker 1: dollars a year of passive income coming just from putting 137 00:07:39,400 --> 00:07:41,400 Speaker 1: your money in the bank and then leaning it back out. Today, 138 00:07:41,640 --> 00:07:45,920 Speaker 1: the problem is the bank gives you zero point zero 139 00:07:46,080 --> 00:07:48,440 Speaker 1: five percent. I mean, basically, they give you nothing for 140 00:07:48,480 --> 00:07:50,000 Speaker 1: having your money in the bank. So a lot of 141 00:07:50,000 --> 00:07:53,760 Speaker 1: people are chasing this yield. How can they get away 142 00:07:53,840 --> 00:07:55,480 Speaker 1: to get this yield away, to get these better than 143 00:07:55,480 --> 00:07:58,600 Speaker 1: the average returns, And so people start going out further 144 00:07:58,800 --> 00:08:01,480 Speaker 1: and further in the risk curve. In order to do that, 145 00:08:01,960 --> 00:08:06,720 Speaker 1: they they start chasing all types of risky investments, obviously 146 00:08:06,840 --> 00:08:10,080 Speaker 1: options trading and cryptocurrency investing, anything they can do to 147 00:08:10,160 --> 00:08:13,040 Speaker 1: try to get better returns than what the market would bear. 148 00:08:13,680 --> 00:08:16,480 Speaker 1: And so um they've done that. Now this yield farming 149 00:08:16,920 --> 00:08:19,280 Speaker 1: seems like a great idea. And so we have defied 150 00:08:19,360 --> 00:08:22,440 Speaker 1: decentralized finance. We have c FI, which is centralized finance. 151 00:08:22,720 --> 00:08:25,760 Speaker 1: So the cea FI are players like Block five, um, 152 00:08:25,800 --> 00:08:31,120 Speaker 1: players like celsius, um, players like Nexo, Crypto, dot Com, etcetera. 153 00:08:31,160 --> 00:08:34,840 Speaker 1: So those are c FI centralized finance applications. And the 154 00:08:34,840 --> 00:08:37,080 Speaker 1: thing with c FI is they supposedly cut out the 155 00:08:37,080 --> 00:08:42,120 Speaker 1: middleman and they give more of those distributions back to you. Um. 156 00:08:42,160 --> 00:08:45,480 Speaker 1: Now those have their own risk and reward scenarios, as 157 00:08:45,640 --> 00:08:48,960 Speaker 1: defied does as well. Now we're finding out first and 158 00:08:49,080 --> 00:08:54,560 Speaker 1: foremost the dangers that these DeFi can pose, as millions, 159 00:08:54,640 --> 00:08:58,040 Speaker 1: hundreds of millions of dollars, billions of dollars are evaporating 160 00:08:58,240 --> 00:09:00,960 Speaker 1: from people's accounts right before of very eyes. I'm gonna 161 00:09:00,960 --> 00:09:02,679 Speaker 1: explain all that to you and more and how to 162 00:09:02,720 --> 00:09:04,720 Speaker 1: protect yourself from that in a second. By the way, 163 00:09:04,760 --> 00:09:07,560 Speaker 1: you're listening to the markma Show. We're talking about bitcoin, 164 00:09:07,640 --> 00:09:10,600 Speaker 1: We're talking about cryptocurrencies. We're talking about the decentralized revolution 165 00:09:10,640 --> 00:09:15,120 Speaker 1: that we are witnessing right now. And we're we're witnessing 166 00:09:15,320 --> 00:09:18,640 Speaker 1: a meltdown of the financial system and it's taking down 167 00:09:19,080 --> 00:09:23,000 Speaker 1: this decentralized revolution with it. However, it's not all what 168 00:09:23,120 --> 00:09:24,760 Speaker 1: it seems, so I want to explain that to you 169 00:09:24,880 --> 00:09:27,160 Speaker 1: and show you how you can navigate this. UM. I'll 170 00:09:27,200 --> 00:09:29,040 Speaker 1: be back with that and more in a minute, So 171 00:09:29,080 --> 00:09:31,240 Speaker 1: don't go away. I'll be right back. All right, Welcome back. 172 00:09:31,280 --> 00:09:33,199 Speaker 1: You are listening to the Mark Moa Show. We're talking 173 00:09:33,200 --> 00:09:37,680 Speaker 1: about bitcoin, We're talking about cryptocurrencies. We're talking about the 174 00:09:37,720 --> 00:09:41,640 Speaker 1: decentralized revolution that we are living through right now as 175 00:09:41,720 --> 00:09:44,360 Speaker 1: we speak now. Before the break, I was setting up this, uh, 176 00:09:44,520 --> 00:09:47,880 Speaker 1: this thing about cryptocurrencies and this decentralized revolution we're talking about, 177 00:09:48,320 --> 00:09:51,559 Speaker 1: UM defy decentralized finance. I was explaining the difference between 178 00:09:51,559 --> 00:09:55,440 Speaker 1: DEFY and c FI, which is centralized finance. So centralized finances, 179 00:09:55,600 --> 00:09:58,320 Speaker 1: the Celsius, the block five, the next the crypto dot com, 180 00:09:58,640 --> 00:10:02,120 Speaker 1: central entity, central come puns that are that are handling 181 00:10:02,160 --> 00:10:07,439 Speaker 1: this versus supposedly DEFY that's somewhat decentralized. Now I was 182 00:10:07,480 --> 00:10:09,520 Speaker 1: making the case that not everything needs to be decentralized, 183 00:10:10,080 --> 00:10:12,640 Speaker 1: all right, But now that you understand that, So now 184 00:10:12,679 --> 00:10:16,240 Speaker 1: we have these decentralized protocols. The one that's blowing up 185 00:10:16,360 --> 00:10:18,319 Speaker 1: right now and dragging the entire market down with us 186 00:10:18,400 --> 00:10:22,000 Speaker 1: is called Terra Luna or its symbol as u ST. 187 00:10:22,720 --> 00:10:25,559 Speaker 1: Now it's grown very very fast. It's grown very very 188 00:10:25,600 --> 00:10:30,240 Speaker 1: big because they throw out a nineteen point five percent 189 00:10:30,320 --> 00:10:34,080 Speaker 1: about a tent interest rate. So I can make zero 190 00:10:34,200 --> 00:10:38,000 Speaker 1: percent in my bank, I can make eight to twelve 191 00:10:38,080 --> 00:10:42,240 Speaker 1: percent through one of these centralized finance fis, or I 192 00:10:42,240 --> 00:10:46,360 Speaker 1: could make tent by using one of these DeFi protocols 193 00:10:46,440 --> 00:10:50,920 Speaker 1: like Tara Luna, staking it on the anchor protocol. Now, 194 00:10:52,280 --> 00:10:54,560 Speaker 1: let's just ask a question. You've probably heard the saying 195 00:10:54,559 --> 00:10:56,439 Speaker 1: there's no such thing as free lance. You've probably heard 196 00:10:56,440 --> 00:10:58,920 Speaker 1: the saying that if something is too good to be true, 197 00:10:58,960 --> 00:11:02,480 Speaker 1: then it probably is is. So ask yourself if the 198 00:11:02,520 --> 00:11:05,400 Speaker 1: banks which are pretty much risk free, I mean, your 199 00:11:05,400 --> 00:11:07,360 Speaker 1: money is f d I c ensured if they pay 200 00:11:07,360 --> 00:11:10,959 Speaker 1: you zero point zero five, someone else could pay you 201 00:11:11,000 --> 00:11:14,360 Speaker 1: ten percent, and then um Tera Luna on anchor pays you. 202 00:11:15,800 --> 00:11:18,960 Speaker 1: Why do you think they can pay Because you're taking 203 00:11:19,040 --> 00:11:22,000 Speaker 1: an enormous amount of risk, and so the first thing 204 00:11:22,040 --> 00:11:24,360 Speaker 1: is you always have to think about your risk adjusted return. 205 00:11:24,800 --> 00:11:26,560 Speaker 1: So there's a enormous amount of risk for doing this, 206 00:11:26,760 --> 00:11:29,640 Speaker 1: and we're finding out exactly how much risk we have. 207 00:11:30,520 --> 00:11:34,520 Speaker 1: So we're talking about this defy and we're talking specifically 208 00:11:34,559 --> 00:11:38,200 Speaker 1: about these stable coins. So a stable coin now means 209 00:11:38,280 --> 00:11:41,760 Speaker 1: that the token itself. So in this case, this U 210 00:11:41,920 --> 00:11:46,600 Speaker 1: S T token is equal to one dollar and UM 211 00:11:46,600 --> 00:11:50,800 Speaker 1: not the dollar superstable. We can see the prices of milk, steak, food, gas, 212 00:11:50,840 --> 00:11:53,800 Speaker 1: cars going all over the place, but it's always pegged 213 00:11:53,920 --> 00:11:57,240 Speaker 1: to a dollar. So as the dollar, that's always worth 214 00:11:57,240 --> 00:11:59,040 Speaker 1: one dollar. Whatever dollar comby you, that's what it's worth, 215 00:11:59,600 --> 00:12:02,199 Speaker 1: all right. Now, we have a couple of different versions 216 00:12:02,320 --> 00:12:04,320 Speaker 1: of these stable coins that I think are important to 217 00:12:04,320 --> 00:12:06,240 Speaker 1: dig into before we go too far into this story. 218 00:12:06,920 --> 00:12:09,520 Speaker 1: Um so stable coins have become very very popular. The 219 00:12:09,559 --> 00:12:12,640 Speaker 1: first one was tether. Tether became this first one and 220 00:12:12,679 --> 00:12:14,280 Speaker 1: basically if I put a doll, if I give them 221 00:12:14,280 --> 00:12:17,040 Speaker 1: a dollar US dollar, they'll give me back a token 222 00:12:17,640 --> 00:12:20,480 Speaker 1: that UM is equal to one dollar. It's redeemable for 223 00:12:20,600 --> 00:12:22,199 Speaker 1: one dollar. Anytime I want, I could go redeem that 224 00:12:22,240 --> 00:12:24,439 Speaker 1: token get my dollar back. Now, they were supposed to 225 00:12:24,440 --> 00:12:27,720 Speaker 1: be holding those dollars in an account, so they had 226 00:12:27,800 --> 00:12:30,280 Speaker 1: my reserves in an account. Anytime we want, we can 227 00:12:30,320 --> 00:12:32,760 Speaker 1: go exchange those That's how it's supposed to work. Now, 228 00:12:32,760 --> 00:12:34,880 Speaker 1: we've had lots of stable coins start popping up. And 229 00:12:34,880 --> 00:12:36,960 Speaker 1: the reason why they really gained a lot of popularity 230 00:12:37,240 --> 00:12:39,920 Speaker 1: is if I'm in Bitcoin or some other cryptocurrency position 231 00:12:40,200 --> 00:12:41,920 Speaker 1: and I want to I'm trading them in and out. 232 00:12:41,920 --> 00:12:43,880 Speaker 1: I'm in and out. I'm in now. Um, it's hard 233 00:12:43,960 --> 00:12:45,680 Speaker 1: to go in and out of US dollars. And so 234 00:12:45,760 --> 00:12:47,960 Speaker 1: we've created this token, and they created this token that 235 00:12:48,000 --> 00:12:50,520 Speaker 1: allows me to sell my position in this cryptocurrency and 236 00:12:50,559 --> 00:12:52,959 Speaker 1: go into the stable coin temporarily, and then I can 237 00:12:52,960 --> 00:12:54,559 Speaker 1: go back into position when I want, and so it 238 00:12:54,600 --> 00:12:58,000 Speaker 1: allows me to stay within this crypto ecosystem. Well, Tether 239 00:12:58,080 --> 00:13:00,800 Speaker 1: grew really really fast. It gained a lot of reserves, 240 00:13:00,840 --> 00:13:03,920 Speaker 1: gained a lot of notoriety, and so of course they're 241 00:13:03,920 --> 00:13:06,400 Speaker 1: stable coins popped up. Um, we have a lot of 242 00:13:06,400 --> 00:13:09,240 Speaker 1: different stable coins of Tether. We have die which is 243 00:13:09,280 --> 00:13:11,679 Speaker 1: another moment. We'll break that in the second US d coin, 244 00:13:11,800 --> 00:13:15,320 Speaker 1: true US d um d g x UH, and on 245 00:13:15,360 --> 00:13:17,000 Speaker 1: and on and on. But I don't want to go 246 00:13:17,040 --> 00:13:18,880 Speaker 1: into all the particulars of each and every coin. What 247 00:13:18,920 --> 00:13:20,280 Speaker 1: I want to do is I want to break down 248 00:13:20,800 --> 00:13:24,040 Speaker 1: um really the two different types that we have, or 249 00:13:24,040 --> 00:13:26,599 Speaker 1: really maybe the three different types that we have. Okay, 250 00:13:26,679 --> 00:13:29,240 Speaker 1: So the first one, which is what they're supposed to 251 00:13:29,240 --> 00:13:31,240 Speaker 1: be and what I think most people believe they are, 252 00:13:31,320 --> 00:13:33,040 Speaker 1: and they're find out the hard way they're not, is 253 00:13:33,080 --> 00:13:36,760 Speaker 1: that they're backed. They're backed with dollars. So I give 254 00:13:36,800 --> 00:13:39,640 Speaker 1: them a dollar, they give me a token, They hold 255 00:13:39,720 --> 00:13:43,240 Speaker 1: my dollar until I'm ready to exchange it. Now, if 256 00:13:43,280 --> 00:13:45,880 Speaker 1: they keep all those dollars in their account, that would 257 00:13:45,920 --> 00:13:48,880 Speaker 1: mean they're fully reserved, all the dollars they've accepted they're 258 00:13:48,880 --> 00:13:52,400 Speaker 1: sitting in their account. That's okay, because at any time 259 00:13:52,559 --> 00:13:54,640 Speaker 1: people can go redeem and get their dollars, no big deal. 260 00:13:55,440 --> 00:13:58,480 Speaker 1: The problem is when they start going into what's called 261 00:13:58,480 --> 00:14:02,199 Speaker 1: a fractional reserve, meaning when you give them your dollar 262 00:14:02,400 --> 00:14:04,400 Speaker 1: they only hold on to fifty cents of it, or 263 00:14:04,440 --> 00:14:06,640 Speaker 1: they only hold on to ten cents of it, and 264 00:14:06,679 --> 00:14:09,640 Speaker 1: the other fifty cents or other ninety cents they go 265 00:14:09,720 --> 00:14:12,160 Speaker 1: do something else with like put it into another asset, 266 00:14:12,640 --> 00:14:14,760 Speaker 1: or try to gamble or trade with it to try 267 00:14:14,800 --> 00:14:18,160 Speaker 1: to earn more money on that float on your money, 268 00:14:18,720 --> 00:14:23,160 Speaker 1: all right, So this is where the problem comes in again. 269 00:14:23,400 --> 00:14:25,480 Speaker 1: Full reserve, they have all the money. Everyone go get it, 270 00:14:25,560 --> 00:14:29,640 Speaker 1: no big deal. Fractional reserve is a problem. If everybody 271 00:14:29,720 --> 00:14:32,600 Speaker 1: wanted to go cash in their money, it would create 272 00:14:32,640 --> 00:14:35,440 Speaker 1: a run. They won't have enough money to pay it 273 00:14:35,480 --> 00:14:37,960 Speaker 1: all back. In addition, depend on what they're doing with 274 00:14:38,000 --> 00:14:40,920 Speaker 1: the rest of that money, they're putting it more at risk, 275 00:14:41,040 --> 00:14:43,080 Speaker 1: and if they lose it, they may not have your 276 00:14:43,120 --> 00:14:45,360 Speaker 1: money to give back to you. And that's part of 277 00:14:45,360 --> 00:14:49,160 Speaker 1: the problem. So real quickly. The only coins that I'm 278 00:14:49,200 --> 00:14:51,400 Speaker 1: aware of, and if I'm wrong, please feel free to 279 00:14:51,440 --> 00:14:53,080 Speaker 1: hit me up on social media let me know. The 280 00:14:53,120 --> 00:14:55,600 Speaker 1: only two coins that I'm aware of that are fully 281 00:14:55,880 --> 00:14:59,840 Speaker 1: regulated and fully backed by U S dollars are you 282 00:15:00,240 --> 00:15:03,600 Speaker 1: s d C, which is the Circle coin, and g 283 00:15:03,960 --> 00:15:06,960 Speaker 1: U s D, which is the Gemini coin. So US 284 00:15:07,040 --> 00:15:09,680 Speaker 1: d C and g U s D, they're both federally 285 00:15:09,720 --> 00:15:14,320 Speaker 1: regulated and backed by US dollars one to one. As 286 00:15:14,400 --> 00:15:17,160 Speaker 1: far as I'm aware, every other stable coin out there 287 00:15:17,360 --> 00:15:21,920 Speaker 1: is not fully reserved. Now why is that important? Well, 288 00:15:22,000 --> 00:15:25,320 Speaker 1: let me tell you. Uh So, One, it's important because 289 00:15:25,320 --> 00:15:28,240 Speaker 1: as we can see us, t Tera Luna coin is 290 00:15:28,400 --> 00:15:32,080 Speaker 1: getting attacked right now, and as it turns out, they 291 00:15:32,080 --> 00:15:34,040 Speaker 1: don't have the money to pay back. So instead of 292 00:15:34,080 --> 00:15:36,760 Speaker 1: having those dollars, what they did is they put those 293 00:15:36,800 --> 00:15:41,080 Speaker 1: dollars into another token they have called Terra Luna. So 294 00:15:41,320 --> 00:15:44,080 Speaker 1: if I want to redeem my dollar stable coin for 295 00:15:44,160 --> 00:15:46,320 Speaker 1: a dollar, what they do is they don't give me 296 00:15:46,360 --> 00:15:48,440 Speaker 1: my dollar back because they don't have it. What they 297 00:15:48,480 --> 00:15:51,400 Speaker 1: do is they give me a dollar's worth of this 298 00:15:51,440 --> 00:15:55,240 Speaker 1: new token. The problem is, what if that new token 299 00:15:55,480 --> 00:15:59,080 Speaker 1: isn't worth a dollar. Now, that's the problem that we've 300 00:15:59,120 --> 00:16:02,560 Speaker 1: run into, and that's the problem that we're seeing melt 301 00:16:02,640 --> 00:16:06,600 Speaker 1: down the entire ecosystem. To give you an idea of 302 00:16:06,680 --> 00:16:09,480 Speaker 1: exactly what is going on, well, before we go into that, 303 00:16:09,520 --> 00:16:11,400 Speaker 1: I wanna I'm gonna break down the mechanics of how that, 304 00:16:11,480 --> 00:16:13,720 Speaker 1: how that works, but I want to explain to you, 305 00:16:13,840 --> 00:16:17,560 Speaker 1: like I said, the difference of fully reserved or fractional reserve, 306 00:16:17,640 --> 00:16:20,080 Speaker 1: because I think that's a key piece and I dig 307 00:16:20,120 --> 00:16:22,360 Speaker 1: into history at the time, because history continues to repeat 308 00:16:22,920 --> 00:16:27,360 Speaker 1: and there's a parallel throughout history that explains us to 309 00:16:27,440 --> 00:16:31,440 Speaker 1: us this is this is nothing new. The period in 310 00:16:31,560 --> 00:16:34,840 Speaker 1: time that I'm talking about is in the United States 311 00:16:34,840 --> 00:16:37,760 Speaker 1: and really happened all around the world, and it was 312 00:16:37,800 --> 00:16:41,640 Speaker 1: called free banking. Free banking was a time before we 313 00:16:41,680 --> 00:16:43,760 Speaker 1: had central banking. So today we have central banking, which 314 00:16:43,800 --> 00:16:46,600 Speaker 1: means that we have people at the top, central planners 315 00:16:46,640 --> 00:16:50,840 Speaker 1: that are planning the entire banking system. Free banking would 316 00:16:50,840 --> 00:16:53,240 Speaker 1: be the opposite. Free banking would mean there was competition. 317 00:16:53,520 --> 00:16:56,000 Speaker 1: That means people could start different banks, and they could 318 00:16:56,000 --> 00:16:58,840 Speaker 1: have different business models, and they could compete against each other. 319 00:16:58,920 --> 00:17:01,440 Speaker 1: Now you probably you know which camp I'm in when 320 00:17:01,440 --> 00:17:04,000 Speaker 1: it comes to that. I'm a free market person. I 321 00:17:04,080 --> 00:17:07,200 Speaker 1: believe in free market um competition. I believe competition makes 322 00:17:07,200 --> 00:17:10,840 Speaker 1: better products, better service, better prices. Central planning, to my opinion, 323 00:17:10,920 --> 00:17:13,680 Speaker 1: always fails. Well it's not just my opinion. Throughout history, 324 00:17:13,680 --> 00:17:17,520 Speaker 1: central planning always fails because it lacks the competition, it 325 00:17:17,600 --> 00:17:21,639 Speaker 1: lacks the profit incentive, it lacks the information that comes 326 00:17:21,680 --> 00:17:27,080 Speaker 1: in a free market UM system. So free banking uh 327 00:17:27,119 --> 00:17:30,320 Speaker 1: per Wikipedia, it says that in the strictest versions of 328 00:17:30,359 --> 00:17:33,720 Speaker 1: free banking UM, there is no role at all for 329 00:17:33,840 --> 00:17:37,480 Speaker 1: a central bank or the supply of central bank money. 330 00:17:38,280 --> 00:17:41,320 Speaker 1: Central bank money is supposed to be permanently frozen. There 331 00:17:41,440 --> 00:17:45,920 Speaker 1: is therefore no government agency acting as a monopoly as 332 00:17:45,960 --> 00:17:50,080 Speaker 1: a lender of last resort. Sounds sounds quite different than 333 00:17:50,080 --> 00:17:52,240 Speaker 1: what we have before. And I'm gonna tell you why 334 00:17:52,440 --> 00:17:55,120 Speaker 1: I think this is preferable. I'm gonna tell you what 335 00:17:55,160 --> 00:17:57,800 Speaker 1: the history of this shows us. And then, like I said, 336 00:17:57,800 --> 00:17:59,960 Speaker 1: I want to show you how it's exactly the parallel 337 00:18:00,000 --> 00:18:03,520 Speaker 1: to what's happening today. Don't go away, all right, welcome back. 338 00:18:03,560 --> 00:18:06,320 Speaker 1: You're listening to the markma Show. We're talking about bitcoin, 339 00:18:06,359 --> 00:18:10,080 Speaker 1: We're talking about cryptocurrencies. We're talking about the decentralized revolution 340 00:18:10,119 --> 00:18:13,080 Speaker 1: of course all the time, and today specifically we are 341 00:18:13,119 --> 00:18:17,840 Speaker 1: talking about defy decentralized finance. We're talking about stable coins. 342 00:18:17,880 --> 00:18:21,280 Speaker 1: We're talking specifically about terra lunar stable coins, which are 343 00:18:21,320 --> 00:18:24,600 Speaker 1: blowing up the entire ecosystem. Now, before the Breakoup was 344 00:18:24,600 --> 00:18:27,760 Speaker 1: explaining how there's really two different types um stable coins. 345 00:18:27,760 --> 00:18:30,480 Speaker 1: We thought they were reserved, they had full reserves, meaning 346 00:18:30,520 --> 00:18:32,879 Speaker 1: they were holding our dollars and we could redeem them 347 00:18:32,880 --> 00:18:35,280 Speaker 1: for dollars whenever we want However, we found out that 348 00:18:35,359 --> 00:18:37,879 Speaker 1: most stable coins are not reserved, meaning they're not holding 349 00:18:37,920 --> 00:18:41,399 Speaker 1: our dollars, and instead they are fractally reserved and stare 350 00:18:41,440 --> 00:18:43,560 Speaker 1: holding a little bit maybe fifty percent of your dollars 351 00:18:43,640 --> 00:18:46,040 Speaker 1: or ten percent of your dollars, and the oif ninety 352 00:18:46,040 --> 00:18:48,960 Speaker 1: percent are being loaned out and are at risk in 353 00:18:49,040 --> 00:18:51,600 Speaker 1: some other assets. Now I was explaining how this is 354 00:18:51,600 --> 00:18:54,480 Speaker 1: actually nothing new, and this is actually how the banking 355 00:18:54,560 --> 00:18:57,359 Speaker 1: system works. So the banking system that we have in 356 00:18:57,400 --> 00:19:00,679 Speaker 1: the world today, central banking is built on actional reserve. 357 00:19:01,040 --> 00:19:03,240 Speaker 1: You put ten dollars in the bank, and nine of 358 00:19:03,280 --> 00:19:06,320 Speaker 1: them get lent back out. The problem is those dollars 359 00:19:06,359 --> 00:19:08,399 Speaker 1: get lent back out and going to somebody else's bank, 360 00:19:08,760 --> 00:19:12,280 Speaker 1: and then they keep ten percent and loan out, and 361 00:19:12,320 --> 00:19:14,280 Speaker 1: it happens over and over and over again, until we 362 00:19:14,280 --> 00:19:16,480 Speaker 1: have so much leverage in the system that if even 363 00:19:16,480 --> 00:19:18,480 Speaker 1: just a few percent of people, less than temperati of 364 00:19:18,560 --> 00:19:20,200 Speaker 1: the people went to the banks to get their money out, 365 00:19:20,800 --> 00:19:23,639 Speaker 1: the banking system would collapse. This is actually what happened 366 00:19:23,640 --> 00:19:26,920 Speaker 1: in Canada as they started to freeze everybody's accounts from 367 00:19:26,960 --> 00:19:30,440 Speaker 1: the from the Trucker protest that um very quickly they 368 00:19:30,440 --> 00:19:33,040 Speaker 1: decided to reverse their position because the banks were going broke. 369 00:19:33,400 --> 00:19:35,800 Speaker 1: But I wanted to liken this back to a period 370 00:19:35,840 --> 00:19:38,520 Speaker 1: of time known as free banking. So free banking was 371 00:19:38,600 --> 00:19:43,400 Speaker 1: before central banking. And it says, per Wikipedia, the strictest 372 00:19:43,480 --> 00:19:45,640 Speaker 1: versions of free banking, there's either no role at all 373 00:19:45,640 --> 00:19:47,360 Speaker 1: for the central bank or the supply of central bank 374 00:19:47,359 --> 00:19:51,560 Speaker 1: money is supposed to be permanently frozen. Um. There's no UM, 375 00:19:51,640 --> 00:19:54,200 Speaker 1: no government agency acted as a monopoly as a lender 376 00:19:54,240 --> 00:19:56,480 Speaker 1: of last resort. And so in the central banking system, 377 00:19:56,520 --> 00:19:58,280 Speaker 1: the central Bank, the Federal Reserve of the United States, 378 00:19:58,480 --> 00:20:00,960 Speaker 1: is the lender of last resort, and so if a 379 00:20:01,000 --> 00:20:03,600 Speaker 1: bank RT too bankrupt, the fire reserve can step in 380 00:20:03,880 --> 00:20:06,719 Speaker 1: and backstop them, basically print more money out of thin 381 00:20:06,800 --> 00:20:10,440 Speaker 1: air to give them money to keep them from going bankrupt. Now, 382 00:20:10,840 --> 00:20:14,360 Speaker 1: the historical reference of this is really going back into 383 00:20:14,440 --> 00:20:18,320 Speaker 1: the eighteenth and the nineteenth centuries. UM. It was defended 384 00:20:18,359 --> 00:20:22,639 Speaker 1: by most notably Adam Smith, who Adam Smith is it 385 00:20:22,760 --> 00:20:25,320 Speaker 1: was an amazing author. If you haven't read his books, 386 00:20:25,320 --> 00:20:28,359 Speaker 1: you definitely should. Um. And really, if we go back 387 00:20:28,400 --> 00:20:31,439 Speaker 1: into the United States, and we saw it through Australia, Switzerland, Scotland, 388 00:20:31,440 --> 00:20:34,000 Speaker 1: et cetera. But in the United States specifically from the 389 00:20:34,040 --> 00:20:38,640 Speaker 1: period of eighteen thirty seven to eighteen sixty four that's 390 00:20:38,680 --> 00:20:42,200 Speaker 1: referred to the era of free banking. Now, a lot 391 00:20:42,200 --> 00:20:46,520 Speaker 1: of people, specifically people that are proponents of the central 392 00:20:46,560 --> 00:20:49,160 Speaker 1: banking model and people that have been raised to think 393 00:20:49,200 --> 00:20:51,159 Speaker 1: the central banking model is good. So people that have 394 00:20:51,240 --> 00:20:54,480 Speaker 1: gotten economics degrees and so forth have been taught that 395 00:20:54,640 --> 00:20:59,600 Speaker 1: the that the free banking era was bad, that all 396 00:20:59,640 --> 00:21:02,560 Speaker 1: these different banks that were that were starting up on 397 00:21:02,600 --> 00:21:05,200 Speaker 1: their own and creating their own currencies was a big 398 00:21:05,240 --> 00:21:09,280 Speaker 1: problem because they were continually going out of business and 399 00:21:09,359 --> 00:21:13,040 Speaker 1: blowing up and people were losing their money. Now that 400 00:21:13,240 --> 00:21:17,879 Speaker 1: is true, However, maybe the reasons for why that happened 401 00:21:17,880 --> 00:21:20,919 Speaker 1: isn't necessarily true. But basically, um, you would have a 402 00:21:20,960 --> 00:21:23,120 Speaker 1: bank open up and they would create their own form 403 00:21:23,119 --> 00:21:26,840 Speaker 1: of currency. And I could choose, as a person in 404 00:21:26,880 --> 00:21:29,480 Speaker 1: a free country, which of these free banking models I 405 00:21:29,480 --> 00:21:32,160 Speaker 1: want to go with. So bank A says, hey bank, 406 00:21:32,240 --> 00:21:34,880 Speaker 1: He says, hey, Mark, We're going to hold all your 407 00:21:34,960 --> 00:21:37,600 Speaker 1: money for you, and it's gonna be always there for you, 408 00:21:37,640 --> 00:21:39,960 Speaker 1: and anytime you want you can come get it. Um 409 00:21:40,000 --> 00:21:41,520 Speaker 1: and we're just gonna hold it and we're not going 410 00:21:41,560 --> 00:21:44,680 Speaker 1: to pay you any interest on that. Okay, that's my choice. 411 00:21:44,720 --> 00:21:47,080 Speaker 1: They can hold it. I ron nothing. Um, let's say 412 00:21:47,080 --> 00:21:50,000 Speaker 1: Bank B Bank number two says, hey, Mark, we'll hold 413 00:21:50,000 --> 00:21:53,680 Speaker 1: your money. However, um, we're only gonna hold seventy five 414 00:21:53,960 --> 00:21:57,679 Speaker 1: cent of it. We're gonna go do some loans, but 415 00:21:57,680 --> 00:22:00,680 Speaker 1: they're gonna be very very safe loans, gonna be very 416 00:22:00,800 --> 00:22:04,359 Speaker 1: very careful, and we're gonna pay you, say, five percent 417 00:22:04,440 --> 00:22:07,880 Speaker 1: on your money. And then bank number three or banks see, 418 00:22:08,320 --> 00:22:12,320 Speaker 1: they say, Mark, we're only gonna hold of your money. However, 419 00:22:12,760 --> 00:22:16,520 Speaker 1: we're gonna we're gonna loan the seventy out, but we're 420 00:22:16,680 --> 00:22:19,560 Speaker 1: really good at this. Um, we're gonna be really careful, 421 00:22:19,800 --> 00:22:23,160 Speaker 1: but we're gonna pay you fifteen percent on your money. 422 00:22:23,240 --> 00:22:26,920 Speaker 1: So now those are three different competing models. Ones fully reserved, 423 00:22:27,160 --> 00:22:31,080 Speaker 1: one's barely fraction reserved, and ones massively fraction reserved. They 424 00:22:31,119 --> 00:22:34,640 Speaker 1: all one gives me no return five percent or say fiftent. 425 00:22:34,760 --> 00:22:38,119 Speaker 1: Now I get to choose which of those I want 426 00:22:39,200 --> 00:22:41,240 Speaker 1: based off of the return that I'm getting and the 427 00:22:41,320 --> 00:22:45,080 Speaker 1: risk that I'm accepting. All Right, so I think that's 428 00:22:45,080 --> 00:22:48,399 Speaker 1: a good model. I personally do UM. I can choose 429 00:22:48,400 --> 00:22:51,520 Speaker 1: my risk. They can operate. Now in a free market, 430 00:22:52,240 --> 00:22:56,520 Speaker 1: the bad banks will fell, They're gonna make bad decisions, 431 00:22:56,680 --> 00:22:58,880 Speaker 1: they're going to fail, and people will lose their money. 432 00:22:59,040 --> 00:23:01,240 Speaker 1: It's going to happen, and men's all the time. People 433 00:23:01,280 --> 00:23:03,200 Speaker 1: invest in the things all the time. They lose their money. 434 00:23:03,359 --> 00:23:06,280 Speaker 1: But it allows this competition to happen, and it creates 435 00:23:06,280 --> 00:23:09,399 Speaker 1: a market. One man's loss is another man's gain, unfortunately 436 00:23:09,880 --> 00:23:12,240 Speaker 1: UM And that's exactly what these stable coins are doing. 437 00:23:12,280 --> 00:23:14,800 Speaker 1: So they create their own token, just like the free 438 00:23:14,800 --> 00:23:17,480 Speaker 1: banks create their own dollars. They create their own token, 439 00:23:17,960 --> 00:23:21,520 Speaker 1: and they have different levels of reserve. Some are more reserved, 440 00:23:21,560 --> 00:23:24,400 Speaker 1: some are less reserved, and they have different risk models. 441 00:23:24,560 --> 00:23:26,760 Speaker 1: What are they doing with that money? And it's up 442 00:23:26,800 --> 00:23:30,159 Speaker 1: to me in a free market to decide if I 443 00:23:30,160 --> 00:23:32,640 Speaker 1: want to use one of these and if so, which 444 00:23:32,720 --> 00:23:34,560 Speaker 1: one I want to use, and how much risk I'm 445 00:23:34,560 --> 00:23:37,640 Speaker 1: able to take. Now, some of the problems of complications 446 00:23:37,640 --> 00:23:42,000 Speaker 1: come from do I really know what their business model is? 447 00:23:42,000 --> 00:23:45,080 Speaker 1: Is it opaque, is it transparent? Is it non transparent? 448 00:23:45,119 --> 00:23:47,600 Speaker 1: And that's part of the thing. You always need to 449 00:23:47,640 --> 00:23:51,120 Speaker 1: be able to quantify your risk. Now, Um, that's how 450 00:23:51,119 --> 00:23:53,720 Speaker 1: the free banking system work. Now, a lot of historians, 451 00:23:53,760 --> 00:23:56,960 Speaker 1: most economic professors, would have you believe that the free 452 00:23:56,960 --> 00:24:01,399 Speaker 1: barn banking system failed because these banks constantly blew up 453 00:24:01,440 --> 00:24:03,880 Speaker 1: and people lost their money. Again, which is true, and 454 00:24:03,960 --> 00:24:07,119 Speaker 1: that's why we need the central bank to come and 455 00:24:07,240 --> 00:24:10,160 Speaker 1: back stop all these so people don't lose their money. 456 00:24:11,080 --> 00:24:13,560 Speaker 1: It's not entirely true, all right. So let me let 457 00:24:13,600 --> 00:24:15,359 Speaker 1: me just break this down before we go into the 458 00:24:15,400 --> 00:24:17,679 Speaker 1: rest of it here. So, um, if we look at this, 459 00:24:17,760 --> 00:24:21,520 Speaker 1: what really happened is that the general banking banking laws 460 00:24:22,400 --> 00:24:26,920 Speaker 1: that the government enforced upon these banks, they made these 461 00:24:26,920 --> 00:24:31,280 Speaker 1: banks operate within this structure, and the banking laws restricted 462 00:24:31,320 --> 00:24:33,919 Speaker 1: their activities in a bunch of important ways, all right. 463 00:24:34,359 --> 00:24:38,840 Speaker 1: Most importantly, the US free banks could only have one office, 464 00:24:39,440 --> 00:24:42,760 Speaker 1: and they had to provide security for their notes by 465 00:24:42,840 --> 00:24:47,520 Speaker 1: gold reserves, but also by purchasing and surrendering to state 466 00:24:47,640 --> 00:24:52,399 Speaker 1: banking authorities certain securities the state law deemed acceptable for 467 00:24:52,480 --> 00:24:54,800 Speaker 1: the purpose. So let me think about this a second. 468 00:24:54,840 --> 00:24:58,280 Speaker 1: So one that they allow me to operate, um in 469 00:24:58,320 --> 00:25:02,199 Speaker 1: a competitive environment, I have to abide by their rules, 470 00:25:02,240 --> 00:25:07,000 Speaker 1: and their rules hold back my competitive ability. So UM, 471 00:25:07,080 --> 00:25:11,439 Speaker 1: One I have to provide reserves in gold, but also 472 00:25:12,640 --> 00:25:16,000 Speaker 1: I have to put the money into whatever the banking committee, 473 00:25:16,000 --> 00:25:18,119 Speaker 1: the banking authorities tell me I can put it into. 474 00:25:18,920 --> 00:25:21,760 Speaker 1: Here is a big, big problem. So instead of holding 475 00:25:21,800 --> 00:25:24,520 Speaker 1: all my dollars in a full reserve system, now the 476 00:25:24,680 --> 00:25:28,320 Speaker 1: actual bank authorities are forcing that bank to not hold 477 00:25:28,359 --> 00:25:31,359 Speaker 1: full reserves but instead put some of those reserves into 478 00:25:31,400 --> 00:25:34,600 Speaker 1: the assets they want them to go into, such as 479 00:25:35,080 --> 00:25:39,119 Speaker 1: the securities generally included bonds of state governments, and it 480 00:25:39,200 --> 00:25:42,960 Speaker 1: was the depreciation of these bonds that was the chief 481 00:25:43,040 --> 00:25:46,359 Speaker 1: cause of free bank failures in various episodes when many 482 00:25:46,400 --> 00:25:51,200 Speaker 1: banks in a state failed. So I gotta love the government. 483 00:25:51,640 --> 00:25:54,520 Speaker 1: They didn't allow the free banks to operate freely. They 484 00:25:54,520 --> 00:25:58,240 Speaker 1: didn't allow them to actually compete. Instead, they mandated one 485 00:25:58,560 --> 00:26:01,760 Speaker 1: you can only have one bran edge to the money 486 00:26:01,800 --> 00:26:03,800 Speaker 1: you have. You can't actually hold it. Instead, you have 487 00:26:03,920 --> 00:26:08,520 Speaker 1: to be you're forced to buy risky government debt. And 488 00:26:08,560 --> 00:26:12,000 Speaker 1: it was the risky government debt that went bad on them. 489 00:26:12,040 --> 00:26:14,359 Speaker 1: So then the collateral they were holding went bad and 490 00:26:14,359 --> 00:26:17,080 Speaker 1: they weren't able to pay their depositors back. When the 491 00:26:17,119 --> 00:26:20,000 Speaker 1: depositors saw this happening, what do you think happened. The 492 00:26:20,040 --> 00:26:22,520 Speaker 1: depositors went to get their money out of the banks. 493 00:26:22,760 --> 00:26:25,600 Speaker 1: The run on the banks caused the banks to collapse. 494 00:26:26,320 --> 00:26:28,359 Speaker 1: Whenever you have your money in a bank or in 495 00:26:28,400 --> 00:26:30,600 Speaker 1: any type of asset, if you're holding Tesla stock and 496 00:26:30,640 --> 00:26:33,640 Speaker 1: you see it down right now, you might be freaking out. 497 00:26:34,040 --> 00:26:37,560 Speaker 1: You might go, shoot, I better sell that now. I'm 498 00:26:37,560 --> 00:26:40,600 Speaker 1: happy to take sixty cents on the dollar back right now, 499 00:26:41,000 --> 00:26:44,720 Speaker 1: because I could lose even more. And that's exactly what 500 00:26:44,840 --> 00:26:49,240 Speaker 1: happens in this fractional reserve banking system. They see, oh shoot, 501 00:26:49,240 --> 00:26:51,760 Speaker 1: they loaned some of the money to this government bonds. 502 00:26:52,040 --> 00:26:53,960 Speaker 1: These bonds blew up. I'm not getting my money back. 503 00:26:54,119 --> 00:26:57,520 Speaker 1: I better go get my money back first before everybody 504 00:26:57,560 --> 00:27:00,240 Speaker 1: else shows up. UM. I'm gonna explain more about this 505 00:27:00,280 --> 00:27:03,399 Speaker 1: free banking concept, how that worked, UM, and then I 506 00:27:03,440 --> 00:27:06,840 Speaker 1: want to apply it back to what's happening with US, UM, 507 00:27:06,880 --> 00:27:10,040 Speaker 1: the US dollar stable coins, specifically Terry Luna. And then 508 00:27:10,040 --> 00:27:11,680 Speaker 1: we'll talk about some of the things that you should 509 00:27:11,680 --> 00:27:14,480 Speaker 1: be doing to protect yourself. UM. That and a lot more. 510 00:27:14,560 --> 00:27:16,040 Speaker 1: When I come back. You're listening to the Mark Moa 511 00:27:16,119 --> 00:27:20,280 Speaker 1: show talking about bitcoin, cryptocurrencies, the Decentralized Revolution, and specifically 512 00:27:20,320 --> 00:27:24,480 Speaker 1: today Defy, decentralized finance, stable coins, and what's happening with 513 00:27:24,760 --> 00:27:27,280 Speaker 1: Terror Luna and so much more in a second when 514 00:27:27,280 --> 00:27:29,360 Speaker 1: I come back, don't go away, all right, Welcome back. 515 00:27:29,359 --> 00:27:33,439 Speaker 1: You're listening to the Markma Show. We're talking about bitcoin, cryptocurrencies, 516 00:27:33,840 --> 00:27:36,960 Speaker 1: the decentralized Revolution Nation every week. Today we're talking specifically 517 00:27:37,000 --> 00:27:41,720 Speaker 1: about decentralized finance, Defy, We're talking about UM, this Terror 518 00:27:41,840 --> 00:27:44,760 Speaker 1: Luna blow up that's happening, and I was talking about 519 00:27:44,800 --> 00:27:46,960 Speaker 1: before the break, I was talking about the historical context 520 00:27:47,000 --> 00:27:50,200 Speaker 1: of this and so UM. Stable coins, whether they're fully 521 00:27:50,200 --> 00:27:52,600 Speaker 1: reserved or fractionally reserved, is nothing new. As a matter 522 00:27:52,600 --> 00:27:55,280 Speaker 1: of fact, this is an exact parallel, in my opinion, 523 00:27:55,560 --> 00:27:57,920 Speaker 1: to the free banking model the United States went through 524 00:27:57,920 --> 00:28:01,000 Speaker 1: from eighteen thirty seven to eighteen sixty four. I went 525 00:28:01,040 --> 00:28:02,959 Speaker 1: into a little bit of a tangent telling you that 526 00:28:03,040 --> 00:28:05,680 Speaker 1: everything you've learned is wrong about free banking and that 527 00:28:05,800 --> 00:28:08,840 Speaker 1: it didn't blow up because they were necessarily bad businesses. 528 00:28:09,200 --> 00:28:12,520 Speaker 1: They blew up mostly because the government mandated how they 529 00:28:12,600 --> 00:28:16,040 Speaker 1: operate and really forced them into a model that caused 530 00:28:16,080 --> 00:28:19,360 Speaker 1: them to collapse, mainly by forcing them to buy government 531 00:28:19,400 --> 00:28:23,640 Speaker 1: bonds of state governments that when they failed, the collateral 532 00:28:23,640 --> 00:28:26,840 Speaker 1: they held failed as well. Another thing that really caused 533 00:28:26,840 --> 00:28:29,080 Speaker 1: a free banking to fail to fail is that the 534 00:28:29,160 --> 00:28:33,200 Speaker 1: lack of branch banking in turn caused state issued bank 535 00:28:33,240 --> 00:28:36,199 Speaker 1: notes to be discounted at varying rates once they had 536 00:28:36,240 --> 00:28:41,000 Speaker 1: traveled any considerable distance from their sources, which was an inconvenience. 537 00:28:42,080 --> 00:28:45,040 Speaker 1: So what does that mean? So um, In addition, UM, 538 00:28:46,120 --> 00:28:48,720 Speaker 1: they were so restricted they could they could only have 539 00:28:48,960 --> 00:28:53,080 Speaker 1: one office, all right, And so what happens is then 540 00:28:53,240 --> 00:28:55,760 Speaker 1: instead of um two things, instead of having this economy 541 00:28:55,760 --> 00:28:57,760 Speaker 1: of scale where like a bank could grow and they 542 00:28:57,760 --> 00:28:59,880 Speaker 1: could have multiple offices and they could bet they could 543 00:28:59,880 --> 00:29:02,240 Speaker 1: be if I'm an econmy scale, the bigger problem is 544 00:29:02,280 --> 00:29:05,920 Speaker 1: that if I bought Mark's currency from Mark's free bank 545 00:29:06,000 --> 00:29:08,840 Speaker 1: in the city, and then I traveled to another city, 546 00:29:09,160 --> 00:29:11,240 Speaker 1: there was no Mark's bank there, and there was no 547 00:29:11,320 --> 00:29:14,720 Speaker 1: marks currency to use, and nobody wanted to accept Mark's 548 00:29:14,720 --> 00:29:16,800 Speaker 1: currency because it was a hundred miles away and it 549 00:29:16,840 --> 00:29:19,080 Speaker 1: was hard to travel back then. And so what would 550 00:29:19,080 --> 00:29:21,840 Speaker 1: happen is someone would say, um, well, I'll take that 551 00:29:21,880 --> 00:29:24,040 Speaker 1: Mark's currency, but because I'm going to have to drive 552 00:29:24,120 --> 00:29:26,920 Speaker 1: a hundred miles or they couldn't drive back then, sorry, 553 00:29:26,960 --> 00:29:28,600 Speaker 1: they had to go by horseback. Since I'm gonna have 554 00:29:28,640 --> 00:29:30,640 Speaker 1: to travel a hundred miles to redeem it, I want 555 00:29:30,680 --> 00:29:34,560 Speaker 1: a ten haircut now. Uh. Let me give you a 556 00:29:34,600 --> 00:29:38,200 Speaker 1: modern day example of this. The US dollar is the 557 00:29:38,240 --> 00:29:40,640 Speaker 1: reserve currency of the world. Um. The U S dollars 558 00:29:40,680 --> 00:29:43,560 Speaker 1: recognized everywhere around the world. For the most part. I 559 00:29:43,600 --> 00:29:46,400 Speaker 1: spend a lot of time down in Mexico. In Mexico, 560 00:29:46,520 --> 00:29:49,200 Speaker 1: they accept dollars pretty much everywhere. Um. There's a little 561 00:29:49,200 --> 00:29:51,560 Speaker 1: place that I like to go to on the Baja Peninsula. 562 00:29:51,960 --> 00:29:56,000 Speaker 1: It's about a about a fourteen hour drive from my house. 563 00:29:56,080 --> 00:30:00,000 Speaker 1: It's about because it's deep in Mexico. It's probably three 564 00:30:00,160 --> 00:30:04,920 Speaker 1: to four hours from any major town, major town where 565 00:30:04,960 --> 00:30:06,840 Speaker 1: like there might be an a t M for example, 566 00:30:06,840 --> 00:30:09,400 Speaker 1: there's no et M s there. There's no consistent power 567 00:30:09,480 --> 00:30:11,680 Speaker 1: that they don't really have any electricity. They don't have 568 00:30:11,680 --> 00:30:14,080 Speaker 1: any internet, there's no cell phones. Um. The reason why 569 00:30:14,120 --> 00:30:15,280 Speaker 1: I go to this place in the middle nowhere is 570 00:30:15,280 --> 00:30:17,000 Speaker 1: because the waves are really really good. And I'm not 571 00:30:17,000 --> 00:30:18,240 Speaker 1: gonna tell you the name of because I don't want 572 00:30:18,240 --> 00:30:20,120 Speaker 1: to let people showing up there but I spent a 573 00:30:20,160 --> 00:30:23,360 Speaker 1: lot of time there. Now, when you go there, they 574 00:30:23,360 --> 00:30:27,160 Speaker 1: want paceos. Pacos is the currency of the dollar. Everybody 575 00:30:27,240 --> 00:30:30,480 Speaker 1: uses paces there. Now in some of these places they 576 00:30:30,520 --> 00:30:33,320 Speaker 1: will accept the dollar. The problem is that they're going 577 00:30:33,360 --> 00:30:36,720 Speaker 1: to have to drive. They have cars. Now they're gonna 578 00:30:36,760 --> 00:30:39,640 Speaker 1: have to drive about two hours to the nearest town 579 00:30:40,000 --> 00:30:42,120 Speaker 1: where they could find a bank to turn those dollars 580 00:30:42,120 --> 00:30:45,640 Speaker 1: back into paceos. So, yes, they'll take the pager. Yes 581 00:30:45,640 --> 00:30:47,920 Speaker 1: they'll take the dollars, but at a massive discount. And 582 00:30:47,920 --> 00:30:50,240 Speaker 1: that's exactly what happened. It's free banking. Because they couldn't 583 00:30:50,280 --> 00:30:53,720 Speaker 1: have multiple branches. Um, it caused them to have to 584 00:30:54,000 --> 00:30:58,560 Speaker 1: discount their currencies. All right, Now, that was a big tangent. 585 00:30:58,840 --> 00:31:01,160 Speaker 1: Give you a little historical lesson to show you that 586 00:31:01,160 --> 00:31:03,920 Speaker 1: this is exactly where we're at today. So these banks 587 00:31:05,280 --> 00:31:07,280 Speaker 1: were limited in what they were able to do because 588 00:31:07,320 --> 00:31:11,680 Speaker 1: of the government regulations. And then, um, they did not 589 00:31:11,960 --> 00:31:16,080 Speaker 1: hold all of those dollars in reserve, and so that 590 00:31:16,200 --> 00:31:18,080 Speaker 1: caused these bank runs and the things to happen. And 591 00:31:18,120 --> 00:31:20,080 Speaker 1: so back to the stable coins. The stable coins are 592 00:31:20,120 --> 00:31:22,560 Speaker 1: doing the same way, the same thing. They're not holding 593 00:31:23,360 --> 00:31:27,920 Speaker 1: of those reserves and Basically, anytime you don't have something 594 00:31:28,000 --> 00:31:32,240 Speaker 1: fully reserved, you're gonna open yourself up to runs. At 595 00:31:32,320 --> 00:31:36,360 Speaker 1: some point, some attack is going to happen where they're 596 00:31:36,360 --> 00:31:38,960 Speaker 1: gonna come and say, hey, this person did something risky. 597 00:31:39,040 --> 00:31:41,960 Speaker 1: There's a chance we may not get our money back, 598 00:31:42,520 --> 00:31:44,960 Speaker 1: and people will start running for the exits, Like like 599 00:31:45,000 --> 00:31:47,640 Speaker 1: at a movie theater if somebody yelled fire, there's two exits, 600 00:31:47,760 --> 00:31:50,040 Speaker 1: and everybody's gonna start running for those exits, and everybody 601 00:31:50,040 --> 00:31:53,480 Speaker 1: will start trying to pull their money out. UM. Fractally 602 00:31:53,560 --> 00:31:59,720 Speaker 1: reserved assets are always dangerous in this regard, specifically in 603 00:31:59,760 --> 00:32:01,960 Speaker 1: this case. So, like I was saying earlier, U s 604 00:32:02,080 --> 00:32:04,880 Speaker 1: d C and g U s D as far as 605 00:32:04,920 --> 00:32:08,200 Speaker 1: I know, are the only two UM coins that are 606 00:32:09,360 --> 00:32:13,320 Speaker 1: UM backed. Now as a side note, I mean just 607 00:32:13,360 --> 00:32:15,520 Speaker 1: taking a look at the damage and destruction that's happened 608 00:32:15,520 --> 00:32:19,000 Speaker 1: here UM. So that the way this this specific Terry 609 00:32:19,080 --> 00:32:21,720 Speaker 1: Luna coin works is that I give them a dollar 610 00:32:22,200 --> 00:32:24,680 Speaker 1: and they don't hold that dollar. Instead they turn that 611 00:32:24,800 --> 00:32:29,720 Speaker 1: dollar into value on the Terror Luna token. Now that 612 00:32:29,840 --> 00:32:33,400 Speaker 1: Terry Luna token, just a couple of weeks ago, was 613 00:32:33,440 --> 00:32:38,440 Speaker 1: worth about nine two dollars seven dollars. I mean almost 614 00:32:38,480 --> 00:32:42,400 Speaker 1: a hundred dollars. Just a couple weeks ago, that token 615 00:32:42,480 --> 00:32:45,440 Speaker 1: was worth about a hundred bucks. So if I wanted 616 00:32:45,440 --> 00:32:48,440 Speaker 1: my dollar back, they would give me a dollar's worth 617 00:32:49,000 --> 00:32:51,960 Speaker 1: of that token. The problem is is that has been 618 00:32:52,080 --> 00:32:54,600 Speaker 1: absolutely plummeting. As a matter of fact, there's a couple 619 00:32:54,640 --> 00:32:56,680 Speaker 1: weeks it was worth about a hundred dollars and today, 620 00:32:56,680 --> 00:33:00,240 Speaker 1: at the time of this recording, it's worth one one 621 00:33:00,280 --> 00:33:02,880 Speaker 1: dollar and seven cents. As a matter of fact, we've 622 00:33:02,920 --> 00:33:09,200 Speaker 1: seen the market cap drop I mean almost nine. I mean, 623 00:33:09,240 --> 00:33:11,920 Speaker 1: it's just a complete blood bath on this. And so 624 00:33:12,360 --> 00:33:14,480 Speaker 1: instead of holding my dollars, they put it into this 625 00:33:14,600 --> 00:33:18,520 Speaker 1: risky asset. The problem is that risky asset became worth 626 00:33:18,760 --> 00:33:21,840 Speaker 1: next to nothing um and now that's bringing down the 627 00:33:21,840 --> 00:33:26,280 Speaker 1: rest of the market. The terror Luna stable coin had 628 00:33:26,320 --> 00:33:33,000 Speaker 1: a valuation of about um where are we here, about 629 00:33:33,040 --> 00:33:35,680 Speaker 1: eighteen billion Today it's down to about nine billion. I mean, 630 00:33:35,840 --> 00:33:40,440 Speaker 1: capital is just getting completely liquidated. Now. What's happened since then? 631 00:33:40,480 --> 00:33:42,640 Speaker 1: Now a lot of people believe this might have been 632 00:33:42,760 --> 00:33:45,160 Speaker 1: an attack, and as a matter of fact, I've been 633 00:33:45,160 --> 00:33:47,240 Speaker 1: having lots of conversations talking about this. Of course, is 634 00:33:47,280 --> 00:33:49,880 Speaker 1: all speculative at this point. But this is what Wall 635 00:33:49,920 --> 00:33:53,160 Speaker 1: Street hedge funds do. They spot a weakness or an 636 00:33:53,160 --> 00:33:56,320 Speaker 1: imbalance in the market and they go place wagers and 637 00:33:56,400 --> 00:33:58,760 Speaker 1: bets against it. They've been doing this for a long time. 638 00:33:58,760 --> 00:34:01,040 Speaker 1: They've been doing it since the eighties. Remember hearing stories 639 00:34:01,040 --> 00:34:04,160 Speaker 1: of corporate raters. You have famous people like Carl Icon 640 00:34:04,240 --> 00:34:06,160 Speaker 1: who have made their name off of, you know, doing 641 00:34:06,160 --> 00:34:08,759 Speaker 1: corporate rating. Things like that. Movies have been made, like 642 00:34:08,800 --> 00:34:11,200 Speaker 1: the movie Wall Street was made about doing that. And 643 00:34:11,239 --> 00:34:15,120 Speaker 1: they find these companies that might be overleveraged. UM, they 644 00:34:15,200 --> 00:34:17,719 Speaker 1: borrow money, they attack them, they short them, and they 645 00:34:17,760 --> 00:34:20,960 Speaker 1: crush it. I don't I don't like it. I'm not 646 00:34:21,000 --> 00:34:24,000 Speaker 1: a fan of it. Unfortunately, it hurts a lot of people. 647 00:34:24,719 --> 00:34:27,160 Speaker 1: But this is uh, this is capitalism. I guess now 648 00:34:27,400 --> 00:34:29,520 Speaker 1: some risks that you need to be aware of. I 649 00:34:29,560 --> 00:34:34,520 Speaker 1: think that all stable coins that are not reserved are 650 00:34:34,600 --> 00:34:37,000 Speaker 1: at risk. Once it happens to this one, they're going 651 00:34:37,040 --> 00:34:39,520 Speaker 1: to come after the rest, So all the other stable 652 00:34:39,520 --> 00:34:42,840 Speaker 1: coins UM, specifically tether, I would be very cautious of 653 00:34:42,880 --> 00:34:44,759 Speaker 1: holding money. If you want to hold money and stable coins, 654 00:34:44,760 --> 00:34:46,480 Speaker 1: I would take it out of those and put it 655 00:34:46,520 --> 00:34:48,640 Speaker 1: into one of the two I mentioned USDC, N g 656 00:34:49,239 --> 00:34:51,800 Speaker 1: U S d UM. The other thing I'd be careful 657 00:34:51,840 --> 00:34:53,399 Speaker 1: of is that this is going to cause a lot 658 00:34:53,440 --> 00:34:56,399 Speaker 1: of contagion. We saw Haro Luna trying to raise about 659 00:34:56,400 --> 00:34:58,520 Speaker 1: a billion and a half dollars to try to help 660 00:34:58,520 --> 00:35:01,360 Speaker 1: prop it back up. One of the companies that was 661 00:35:01,400 --> 00:35:04,120 Speaker 1: putting a lot of money in was Celsius. Now a 662 00:35:04,120 --> 00:35:06,320 Speaker 1: lot of you might know Celsius that was referencing earlier 663 00:35:06,360 --> 00:35:09,479 Speaker 1: as a centralized finance company. Why would they be willing 664 00:35:09,520 --> 00:35:12,800 Speaker 1: to put up so much money to help a competitor. Well, 665 00:35:13,280 --> 00:35:16,320 Speaker 1: probably because they invested a lot of their client's money 666 00:35:16,440 --> 00:35:19,160 Speaker 1: into that protocol itself, and so they have this interest 667 00:35:19,200 --> 00:35:21,040 Speaker 1: to try to prop it back up. So I'm afraid 668 00:35:21,320 --> 00:35:23,359 Speaker 1: that as is continue to get worse, it might start 669 00:35:23,360 --> 00:35:27,279 Speaker 1: taking down companies like Celsius, companies like block Fire, et cetera. 670 00:35:27,360 --> 00:35:30,080 Speaker 1: So I'd be very very careful with where you have 671 00:35:30,200 --> 00:35:33,440 Speaker 1: your money right now today. Now it's also been dragging 672 00:35:33,440 --> 00:35:37,480 Speaker 1: down Bitcoin, partially because everything's coming down, but also because 673 00:35:37,520 --> 00:35:40,640 Speaker 1: they had they had a big chunk of their money, 674 00:35:40,719 --> 00:35:43,319 Speaker 1: their dollars in bitcoin as well. They were forced to 675 00:35:43,440 --> 00:35:46,680 Speaker 1: liquidate that entire balance, about a billion dollars a Bitcoin 676 00:35:46,760 --> 00:35:50,680 Speaker 1: was dumped onto the market, which has also brought that down. Now, 677 00:35:50,760 --> 00:35:54,000 Speaker 1: if this continues to spread, if they go after Tether next, 678 00:35:54,280 --> 00:35:57,319 Speaker 1: if Celsius gets pulled into this, if this can happen, 679 00:35:57,440 --> 00:36:01,959 Speaker 1: it could really bring down on the entire market cap 680 00:36:02,000 --> 00:36:04,319 Speaker 1: of almost everything. This is a risk that you have 681 00:36:04,400 --> 00:36:06,879 Speaker 1: to be aware of now. It seems like right now 682 00:36:06,920 --> 00:36:09,080 Speaker 1: from conversation I've been having today, this is having a 683 00:36:09,160 --> 00:36:13,200 Speaker 1: big positive results on bitcoin. We're hearing that people institutional 684 00:36:13,200 --> 00:36:16,520 Speaker 1: buyers are lining up trying to get orders into buy bitcoin. 685 00:36:17,840 --> 00:36:21,680 Speaker 1: But there could be more short term pain before we 686 00:36:21,680 --> 00:36:23,640 Speaker 1: see a turnaround. That's just the truth. I don't want 687 00:36:23,640 --> 00:36:25,799 Speaker 1: to admit it. I don't want to believe it. I 688 00:36:25,840 --> 00:36:28,800 Speaker 1: hope it's not the case, but I think that could 689 00:36:29,120 --> 00:36:32,560 Speaker 1: very well be because the way the markets are right now, 690 00:36:32,719 --> 00:36:35,359 Speaker 1: all these big hedge funds, they're looking for some way 691 00:36:35,400 --> 00:36:37,680 Speaker 1: to find yield, and one of the easiest ways to 692 00:36:37,719 --> 00:36:40,319 Speaker 1: find yield is to go attack these companies and make 693 00:36:40,440 --> 00:36:43,040 Speaker 1: giant windfalls. It's rumored that maybe the company who did 694 00:36:43,040 --> 00:36:44,879 Speaker 1: the attack on Tera Luna could have made as much 695 00:36:44,880 --> 00:36:49,120 Speaker 1: as eight hundred million dollars. Anyway, that's a big lesson 696 00:36:49,280 --> 00:36:51,640 Speaker 1: only hold coins that are fully reserved, watch out for 697 00:36:51,680 --> 00:36:54,239 Speaker 1: everything else. You're listening to the Mark mo Show talking 698 00:36:54,239 --> 00:36:58,800 Speaker 1: about bitcoin, cryptocurrencies, UH, the decentralized Revolution, and today the 699 00:36:58,800 --> 00:37:00,360 Speaker 1: stable coins. Thanks so much for listening.