WEBVTT - The Mark Moss Show Oct 27, 2021 0:00:00.160 --> 0:00:03.120 Hey, welcome everybody. You are listening to the Mark Moss Show, 0:00:03.160 --> 0:00:06.680 where we are talking about bitcoin and cryptocurrencies and the 0:00:06.760 --> 0:00:11.760 decentralized revolution. I'm talking about the biggest opportunity we'll see 0:00:11.760 --> 0:00:15.040 in our lifetime, we'll see in multiple lifetimes. It is 0:00:15.080 --> 0:00:18.560 that big. Now I like to say that, Um well, 0:00:18.880 --> 0:00:22.599 I say over and over that real investors, professional investors, 0:00:22.640 --> 0:00:24.600 the ones that actually make money and don't lose money, 0:00:24.760 --> 0:00:27.280 they're always looking for something called an asymmetric return. That 0:00:27.320 --> 0:00:29.080 means they want to have more upside than downside. And 0:00:29.120 --> 0:00:32.839 so in order to get that asymmetric return, you have 0:00:32.960 --> 0:00:37.840 to have a symmetric information. You have to know information 0:00:37.880 --> 0:00:40.200 that the majority of people don't have. That's the only way. 0:00:40.400 --> 0:00:43.839 If everybody knows it, there's no there's no alpha, there, 0:00:43.880 --> 0:00:45.839 there's no edge. You don't have an edge, all right. 0:00:46.159 --> 0:00:47.400 You have to have an edge. You have to know 0:00:47.479 --> 0:00:50.400 something that most people don't know. And so that's why 0:00:50.440 --> 0:00:52.800 you need to tune into me each end every week. 0:00:52.840 --> 0:00:54.920 So pull out your phone, put a calendar reminder this 0:00:54.960 --> 0:00:57.520 time this channel. Do not miss this. It will be 0:00:57.560 --> 0:01:01.680 the most profitable hour of week. Also, if you have 0:01:01.720 --> 0:01:02.959 your phone in your hand, go ahead and pull out. 0:01:03.080 --> 0:01:05.120 Open up your Twitter or Instagram and find me. It's 0:01:05.200 --> 0:01:07.920 one Mark Moss on both the platform. Send me a message, 0:01:07.920 --> 0:01:09.080 tell me you heard me on the radio, and ask 0:01:09.120 --> 0:01:10.679 me a question. I'll make sure to answer it for 0:01:10.720 --> 0:01:13.800 you next week when we go live. Now we're talking 0:01:13.840 --> 0:01:17.720 about um bitcoins price. It broke. It's broke its previous 0:01:17.720 --> 0:01:19.560 all time high that was set back in April of 0:01:19.560 --> 0:01:23.680 this year, and there's really no resistance above head at 0:01:23.680 --> 0:01:26.080 this point. I mean, we're in this kind of no 0:01:26.160 --> 0:01:28.600 man's land, there's no resistance. We're in this true price 0:01:28.680 --> 0:01:31.080 discovery place at this point. And a lot of that 0:01:31.200 --> 0:01:34.000 was driven by, you know, some regulations that happened in China, 0:01:34.040 --> 0:01:37.520 but also in the United States. UM, in the United States, 0:01:37.880 --> 0:01:40.480 you know, we've continued to reach this level of entrenchment 0:01:40.520 --> 0:01:42.360 that I think is just impossible. There's just no way 0:01:42.360 --> 0:01:45.199 the government would ever um kill it at this point. 0:01:45.200 --> 0:01:46.760 And they can't kill it, but they could, you know, 0:01:46.760 --> 0:01:48.400 try to make it illegal. I don't think that would 0:01:48.400 --> 0:01:51.040 ever happen. And I think what over the last couple weeks, 0:01:51.040 --> 0:01:53.400 we heard the head of the SEC, Gary Gensler, and 0:01:53.440 --> 0:01:55.360 we heard the federal chair of Jrome pow both say 0:01:55.400 --> 0:01:57.480 that they will not make it illegal. They told us 0:01:57.520 --> 0:02:00.120 that verbatim um. And then we saw this week and 0:02:00.160 --> 0:02:01.720 this is the real big news were talking about this 0:02:01.720 --> 0:02:04.720 week is that this bitcoin e t F went into effect, 0:02:05.360 --> 0:02:08.600 and that was really big news, got got everybody excited. Now, 0:02:08.720 --> 0:02:10.840 I want to explain something about this e t F 0:02:10.960 --> 0:02:14.160 because there's there's there's probably a lot of miscommunication, a 0:02:14.200 --> 0:02:16.040 lot of misunderstanding going on with this et F, and 0:02:16.040 --> 0:02:18.280 I think it's very important for you to understand because 0:02:18.880 --> 0:02:20.920 it can be dangerous, all right, it can be dangerous. Now, 0:02:20.919 --> 0:02:22.840 the first thing I want you to understand is that 0:02:23.680 --> 0:02:26.320 there's two different types of ets I mean, there's there's 0:02:26.360 --> 0:02:27.640 more than that, but I want to break them down 0:02:27.639 --> 0:02:30.840 into kind of two main categories. And so you have 0:02:30.880 --> 0:02:33.680 a Future's e t F and you have a spot 0:02:33.919 --> 0:02:35.639 e t F. All right, let me explain to you 0:02:35.720 --> 0:02:38.800 what those two are. So a future's et F is 0:02:38.840 --> 0:02:44.080 basically a way to just bet, to gamble. You're basically 0:02:44.120 --> 0:02:47.160 betting on what the price of bitcoin will be in 0:02:47.200 --> 0:02:50.239 the future. I bet I gamble, you know, I bet 0:02:50.280 --> 0:02:51.840 you that it's going to be higher in the future, 0:02:52.120 --> 0:02:53.880 or I bet you it's going to be lower in 0:02:53.880 --> 0:02:56.960 the future. All right. That's the first way. The second 0:02:57.000 --> 0:02:59.919 way is a spot et f and that means you're 0:03:00.040 --> 0:03:03.320 actually buying the bitcoin, right, you actually own it, You 0:03:03.320 --> 0:03:05.320 have a at least you have a claim to it, 0:03:05.800 --> 0:03:08.680 all right, So it's a big difference. Now, the futures 0:03:08.800 --> 0:03:11.320 came out for a couple of reasons, and of course, 0:03:11.600 --> 0:03:13.880 like like everything, they kind of get distorted and changed 0:03:13.919 --> 0:03:15.400 over time. But in the beginning, you know, they were 0:03:15.440 --> 0:03:19.480 really used for commodities, which bitcoin is classified as a commodity, 0:03:19.560 --> 0:03:21.919 so that's why they have it um. But commodities typically 0:03:21.960 --> 0:03:25.360 would be like um, food, right, so grain, wheat, things 0:03:25.400 --> 0:03:28.639 like that. And if I was a farmer and I 0:03:28.680 --> 0:03:32.040 was growing wheat or whatever crop that may be. And 0:03:32.120 --> 0:03:34.080 let's say that I was afraid that I was going 0:03:34.120 --> 0:03:36.720 to have a bad year or that it was gonna 0:03:36.720 --> 0:03:38.360 be a good Year's we too much wheat and it's 0:03:38.360 --> 0:03:40.920 going to push the price down, or something's going to 0:03:41.000 --> 0:03:42.640 happen to the price. Right, So what I could do 0:03:42.720 --> 0:03:45.360 is I could sell a futures contract. I could get 0:03:45.360 --> 0:03:48.680 someone to agree to buy my wheat or corn or 0:03:48.680 --> 0:03:50.880 whatever it is at a fixed price in the future, 0:03:51.360 --> 0:03:53.040 and that way it takes some of the risk off. 0:03:53.840 --> 0:03:56.200 I'm guaranteed a price, and now they are the ones 0:03:56.240 --> 0:03:58.480 that have the risk. Now I could end up selling 0:03:58.520 --> 0:04:00.200 it short to not make as much money, but it's 0:04:00.200 --> 0:04:03.080 okay because I'm guaranteed to get that price. And that's 0:04:03.120 --> 0:04:05.120 kind of what's happening with the Bitcoin et F. It's 0:04:05.120 --> 0:04:08.360 a futures based contract. So I don't own the bitcoin, 0:04:08.640 --> 0:04:10.880 I don't have a claim to actually get any bitcoin. 0:04:11.200 --> 0:04:13.240 I'm just betting on where I think the price is 0:04:13.240 --> 0:04:16.800 going to be now. Um part. Another reason why the 0:04:17.880 --> 0:04:22.080 futures also work good for commodities is because typically commodities, 0:04:22.200 --> 0:04:25.000 when I'm talking about corn, you know, wheat grain, or 0:04:25.080 --> 0:04:27.760 I'm talking about oil, you know, commodities like that, they're 0:04:28.560 --> 0:04:32.520 they're very difficult, if not completely impossible, to take delivery of, right. 0:04:32.920 --> 0:04:35.760 I mean, imagine if a bunch of contracts, a bunch 0:04:35.800 --> 0:04:38.320 of tons of grain, you know, corn showed up at 0:04:38.360 --> 0:04:39.800 your house or oil, like, what are you gonna do 0:04:39.880 --> 0:04:42.080 with that? And so it was a way for a 0:04:42.120 --> 0:04:44.279 way for an investor to buy into that commodity, to 0:04:44.279 --> 0:04:45.840 put some money into that commodity, but without having to 0:04:45.839 --> 0:04:47.560 take delivery of it. Right. So that would be more 0:04:47.600 --> 0:04:49.640 of the spot side of things. So that's kind of 0:04:49.680 --> 0:04:51.560 what they were intended for. Of course, today they're just 0:04:51.560 --> 0:04:54.480 turned into this giant gambling casino that's going on over 0:04:54.520 --> 0:04:56.760 in Wall Street, and they're you know, betting on everything. 0:04:56.800 --> 0:04:59.320 I mean, today there's betting markets for everything. I think 0:04:59.360 --> 0:05:01.080 it probably probably a lot of people were surprised to 0:05:01.080 --> 0:05:03.320 see that there was like betting markets on the election, 0:05:03.440 --> 0:05:05.600 you know, for last year, and anything that can be 0:05:05.600 --> 0:05:07.000 bet on they're betting on. And they're betting on the 0:05:07.040 --> 0:05:10.159 price of bitcoin. Now. Um, the first thing I would 0:05:10.200 --> 0:05:14.440 say that I don't like about the futures um et 0:05:14.600 --> 0:05:19.000 F is that price is all driven by supply and demand, 0:05:19.440 --> 0:05:23.160 all right, So if there's more demand, more people want 0:05:23.160 --> 0:05:25.200 to buy, then there is supply than people that want 0:05:25.200 --> 0:05:27.599 to sell, and the price and actually goes up. And 0:05:27.680 --> 0:05:30.239 so as more and more people wanted to get into bitcoin, 0:05:30.480 --> 0:05:33.920 as corporations, as institutions, as hedge funds, as they es 0:05:33.960 --> 0:05:36.920 central banks, as they want to get access to bitcoin, 0:05:36.960 --> 0:05:39.320 they had to buy it. And when they bought it, 0:05:39.320 --> 0:05:41.240 it took supply off the market, which then push the 0:05:41.240 --> 0:05:44.640 price up higher. Right, And so the one one of 0:05:44.680 --> 0:05:47.240 the many revolutionary things about bitcoin is that it has 0:05:47.279 --> 0:05:50.640 a fixed supply cap right never be more than twenty 0:05:50.680 --> 0:05:54.360 one million gold. We talked about earlier if you caught 0:05:54.360 --> 0:05:56.839 the previous show, we talked about how gold has a 0:05:56.839 --> 0:05:58.840 stock to flow model. You have the stock the existing 0:05:58.880 --> 0:06:00.560 supply with the flow of the new and coming supply, 0:06:00.920 --> 0:06:03.840 and so there's an inflation rate. How much gold goes up. Now, 0:06:03.960 --> 0:06:05.560 if the price of gold went you know, right now 0:06:05.600 --> 0:06:07.520 it's on eight hundred bucks anounce, let's say it went 0:06:07.560 --> 0:06:09.919 to ten thousand announces, you'd have way more people go 0:06:09.960 --> 0:06:12.240 to mind gold, and you have way more gold coming 0:06:12.279 --> 0:06:15.800 into the into the world. With bitcoin, they can't increase that. 0:06:15.920 --> 0:06:17.359 You could you get the price of bitcoin to go 0:06:17.400 --> 0:06:19.760 up by ten x and you'd have ten x the 0:06:19.760 --> 0:06:21.880 amount of people going to mind bitcoin, but it wouldn't 0:06:21.920 --> 0:06:25.320 increase the supply of bitcoin at all. And so um, 0:06:25.360 --> 0:06:28.320 there's a supply demand thing and so um, since they 0:06:28.360 --> 0:06:31.080 can't create more than twenty one million, what they can 0:06:31.240 --> 0:06:34.240 do is with this future's e t F. Remember they're 0:06:34.240 --> 0:06:37.200 not actually buying bitcoin, they're buying they're just betting on it. 0:06:37.480 --> 0:06:41.000 So now money that typically if that hedge fund, that institution, 0:06:41.040 --> 0:06:43.440 that government wanted access to the price of bitcoin, they 0:06:43.440 --> 0:06:46.680 would have no choice book to buy it. Today, they 0:06:46.839 --> 0:06:50.920 instead of putting their million dollars of buying bitcoin, they 0:06:50.960 --> 0:06:53.760 just take that same million dollars and they bet on 0:06:53.880 --> 0:06:57.960 bitcoin instead. And so the million dollars is still getting 0:06:58.080 --> 0:07:02.040 access to the price of bitcoin, but it's not changing 0:07:02.200 --> 0:07:06.400 the demand and supply metrics. So I think that's a 0:07:06.440 --> 0:07:09.520 bad thing. Now we've seen this become very very bad, 0:07:09.560 --> 0:07:12.320 like in the gold industry for example. So in the 0:07:12.360 --> 0:07:16.560 gold industry, um, this is really big. And so you know, 0:07:16.680 --> 0:07:18.520 gold is a little bit hard to take advantage of 0:07:18.520 --> 0:07:20.560 two or I should say, take custody of right, So 0:07:20.680 --> 0:07:22.360 like if you have a lot of gold, I mean, 0:07:22.400 --> 0:07:24.040 what are you gonna do with it? Like you probably 0:07:24.040 --> 0:07:26.400 can't store it in your house, It's very expensive to 0:07:26.480 --> 0:07:29.360 ship and things like that, and so, um, a lot 0:07:29.360 --> 0:07:34.160 of people I buy the gold ETFs that don't actually 0:07:34.240 --> 0:07:38.200 own the gold. And studies have shown there's not a 0:07:38.200 --> 0:07:41.040 lot of transparency here. But some estimates show that there's 0:07:41.080 --> 0:07:47.440 approximately five hundred paper ounces of gold for everyone real 0:07:47.960 --> 0:07:50.680 ounce of gold. So what that means is there's at 0:07:50.760 --> 0:07:54.440 five people four nine of them think they own gold, 0:07:54.480 --> 0:07:57.840 but they don't really. Now, imagine if all of those 0:07:57.840 --> 0:08:00.800 four people that thought they own gold actually did if 0:08:00.840 --> 0:08:03.920 they took that money and actually bought physical gold based 0:08:03.920 --> 0:08:06.040 off supplying Man, what do you think would happen to 0:08:06.040 --> 0:08:08.920 the price of gold. It would shoot way higher, right, 0:08:09.040 --> 0:08:12.760 I mean five times higher. Um. But they've created this 0:08:12.840 --> 0:08:15.640 fake paper market, and I'm afraid that could happen to bitcoin, 0:08:15.720 --> 0:08:18.800 where you create this fake paper market which then creates 0:08:18.800 --> 0:08:22.240 an unlimited supply, and then it kind of suppresses the 0:08:22.240 --> 0:08:25.000 price down in a way because um, it's not you know, 0:08:25.160 --> 0:08:28.240 activating that supply and demand. So that's one thing that 0:08:28.280 --> 0:08:30.480 I don't like the futures without much rather see a 0:08:30.520 --> 0:08:34.079 spot et F. Of course, the the SEC won't approve 0:08:34.200 --> 0:08:37.160 a spot E t F right now. They say it's 0:08:37.200 --> 0:08:40.480 too dangerous. Um. In my opinion, what's dangerous is this 0:08:40.760 --> 0:08:44.440 fake futures betting. In my opinion, that's way more dangerous. 0:08:44.600 --> 0:08:47.200 If I bought bitcoin spot and it went down in value, 0:08:47.200 --> 0:08:49.720 at least I still own the bitcoin. If I just 0:08:49.840 --> 0:08:52.000 make a bet against it and I lose the bet, 0:08:52.520 --> 0:08:55.160 I lose everything. I own nothing, And so that seems 0:08:55.160 --> 0:08:57.160 to me more dangerous. But I want to get in 0:08:57.200 --> 0:09:00.200 a little bit more into how this spot or I'm right, 0:09:00.200 --> 0:09:03.319 how this future is actually works, because if you're considering 0:09:03.400 --> 0:09:06.440 buying it, there's actually some things that you need to know. Um, 0:09:06.480 --> 0:09:08.760 it is easy to get access to it, but there's 0:09:08.800 --> 0:09:11.400 some real dangers and it actually might be way more 0:09:11.640 --> 0:09:14.839 expensive and way more dangerous than you think. And so 0:09:15.120 --> 0:09:17.000 if you're thinking about buying this futures, you know it's 0:09:17.040 --> 0:09:20.000 easy to get from your brokerage account whatever it may be. UM, 0:09:20.080 --> 0:09:22.880 then you need to know this information. There's something known 0:09:23.000 --> 0:09:25.280 as the bleed. You need to know about the bleed. 0:09:25.360 --> 0:09:27.000 You need to know what the cash and carry is. 0:09:27.120 --> 0:09:29.839 You need to know something a negative role yield is called. 0:09:30.120 --> 0:09:32.160 You listen to the Mark Moa Show. We're talking about 0:09:32.360 --> 0:09:35.520 bitcoin futures. So the information that you need need you 0:09:35.559 --> 0:09:39.040 need to know about bitcoin so you can survive and 0:09:39.120 --> 0:09:42.240 thrive as this revolution plays out. I'll be right back. 0:09:42.880 --> 0:09:45.320 Hey everyone, welcome back. You are listening to the markma 0:09:45.360 --> 0:09:48.680 Show where I talk about bitcoin and cryptocurrencies and the 0:09:48.840 --> 0:09:52.920 decentralized revolution each and every week, bringing you the information 0:09:53.000 --> 0:09:54.760 you need. I mean, look, I say it over and 0:09:54.800 --> 0:09:57.320 over every each and every week. This is the biggest 0:09:57.320 --> 0:10:00.160 opportunity you'll ever have in your lifetime, and you need 0:10:00.200 --> 0:10:04.880 to have this information. Unfortunately, most people have wrong information. 0:10:04.880 --> 0:10:07.559 Wherever they're getting information from. I can pretty much tell 0:10:07.600 --> 0:10:10.360 you it's wrong. And if you have the wrong information, 0:10:10.400 --> 0:10:12.839 you're either not going to take advantage of this opportunity 0:10:13.040 --> 0:10:16.200 or you won't take advantage of it properly. And so 0:10:16.240 --> 0:10:17.640 you need to have that. So join me each and 0:10:17.640 --> 0:10:19.840 every week polot your phone intead of reminder. Also, by 0:10:19.840 --> 0:10:22.560 the way, tweet at me or hit me on Instagram. 0:10:22.600 --> 0:10:24.720 One Mark Moss, just the number one. Mark Moss asked 0:10:24.720 --> 0:10:27.280 me a question. I'll answer it next week. Now I'm 0:10:27.280 --> 0:10:29.920 talking about these futures, these bitcoin futures e t s 0:10:30.040 --> 0:10:32.400 that came out this week and the big, big, big news, 0:10:32.440 --> 0:10:34.679 of course, the price of bitcoin shot higher, new all 0:10:34.720 --> 0:10:37.560 time highs, and I was explaining, now there's two different 0:10:37.600 --> 0:10:40.640 types of bitcoin e T f s, and there's there's more, 0:10:40.679 --> 0:10:42.200 but I'm just breaking them in two buckets. And so 0:10:42.200 --> 0:10:45.680 basically you have the futures, which is basically you're not 0:10:45.760 --> 0:10:49.000 buying bitcoin, you're just betting on the future price, hence 0:10:49.040 --> 0:10:52.000 the name of futures. And then there's another one called spot, 0:10:52.080 --> 0:10:54.480 which is means you're actually buying it. You're actually buying 0:10:54.520 --> 0:10:56.400 the bitcoin. And uh, in an e t F, you 0:10:56.400 --> 0:10:58.440 would actually take delivery of it, but you would have 0:10:58.480 --> 0:11:01.120 a claim to it. And so what we got is 0:11:01.200 --> 0:11:03.720 the futures et F. We did not get the spot 0:11:03.800 --> 0:11:06.040 et F. And and there's some things with this, with 0:11:06.120 --> 0:11:08.080 this futures et F that you need to be aware of. 0:11:08.520 --> 0:11:11.480 Um overall, I would just say I don't recommend it 0:11:11.520 --> 0:11:13.120 for the average person. I don't think you should buy it. 0:11:13.240 --> 0:11:15.680 I would I would highly recommend that you stay away 0:11:15.679 --> 0:11:18.199 from it. For the average person. You should just buy 0:11:18.240 --> 0:11:21.040 bitcoin and you should store it yourself. It's so easy. 0:11:21.200 --> 0:11:25.240 One of the very, very, very many revolutionary things about 0:11:25.280 --> 0:11:28.560 bitcoin is it allows you to take custody of your 0:11:28.559 --> 0:11:32.400 own assets. Um Man, I can go down through so 0:11:32.440 --> 0:11:34.240 many tangents. I hate to go through the tangents, but 0:11:34.280 --> 0:11:35.760 it's hard for me not to explain this stuff to you. 0:11:35.760 --> 0:11:38.720 But think about this just real quick. Probably the oldest 0:11:38.800 --> 0:11:42.560 problem that man that humans have had, the oldest problem 0:11:42.600 --> 0:11:44.640 in the entire world of all the humanity, the biggest 0:11:44.640 --> 0:11:47.720 problem that man has had humans have had is how 0:11:47.800 --> 0:11:50.560 do you store your wealth? How do you store your 0:11:50.600 --> 0:11:54.640 property without it being taken. So, um, the early man, 0:11:54.760 --> 0:11:57.640 I'm afraid you're gonna come steal my chickens. So me 0:11:57.679 --> 0:12:00.000 and the neighbor get together and band together, and someone's 0:12:00.000 --> 0:12:01.880 gonna come take our chickens and our goats. So then 0:12:01.920 --> 0:12:04.320 we make a village to protect our property. And then 0:12:04.320 --> 0:12:06.720 we make a kingdom, and then we make a country. 0:12:06.760 --> 0:12:08.960 As a matter of fact, the role of the United 0:12:08.960 --> 0:12:13.600 States government is only to protect private property. That's it. 0:12:14.559 --> 0:12:16.560 But what's the revolution about bitcoin is that you know, 0:12:16.640 --> 0:12:18.920 let's say that I'm I'm holding my wealth, my value 0:12:18.920 --> 0:12:21.240 in gold, and I have a lot of gold. Well, 0:12:21.280 --> 0:12:22.800 that's gonna take up a lot of room. It's gonna 0:12:22.800 --> 0:12:24.200 be very heavy. I'm gonna have to spend a lot 0:12:24.200 --> 0:12:27.120 of money to build a safe and some walls, and 0:12:27.120 --> 0:12:29.800 I'm gonna have to hire some guards. So it's very expensive. 0:12:29.840 --> 0:12:31.520 And then I can't take it anywhere. It's very hard 0:12:31.520 --> 0:12:34.440 to move it. Um. And so those are types of problems, right. 0:12:34.520 --> 0:12:37.360 But if I can hold my wealth in bitcoin that 0:12:37.360 --> 0:12:41.720 can be cryptographically secured and it costs me zero dollars 0:12:41.840 --> 0:12:46.480 or effort to secure it, and it's portable, how does 0:12:46.520 --> 0:12:49.679 that change the world. I mean, it literally takes care 0:12:49.800 --> 0:12:53.120 of the oldest problem of humanity, and so that's a 0:12:53.160 --> 0:12:55.400 revolutionary thing, and so we should all take advantage of that. 0:12:55.559 --> 0:12:58.400 So don't buy bitcoin through an e t F, take 0:12:58.480 --> 0:13:01.400 custody of it, holding yourself. That's its revolutionary. But now 0:13:01.440 --> 0:13:03.599 back to the futures ETF. So there's a couple of 0:13:03.600 --> 0:13:05.840 things you need to be aware of, um And the 0:13:05.880 --> 0:13:07.840 first thing I want to talk about is something what's 0:13:07.880 --> 0:13:11.959 called the bleed. Alright, the bleed, they're gonna bleed you dry. 0:13:12.360 --> 0:13:16.880 The bleed is a negative contribution to your performance. Because 0:13:16.920 --> 0:13:18.679 this is kind of the way these things work. So 0:13:19.080 --> 0:13:23.120 most commodity futures et F s deal with a negative 0:13:23.440 --> 0:13:25.400 role yield. And so what does that mean? In this 0:13:25.480 --> 0:13:29.119 negative roll yield, so each month they're basically they're forced 0:13:29.120 --> 0:13:32.720 by a more expensive contract than the one that's about 0:13:32.800 --> 0:13:35.959 to expire. So we could look at a contract, so 0:13:36.080 --> 0:13:38.439 they have like an October contract, in November contract of 0:13:38.480 --> 0:13:41.800 December contract, etcetera. So let's say, for example, that the 0:13:41.840 --> 0:13:47.439 November contract is three fifteen dollars more expensive than October, 0:13:48.559 --> 0:13:53.760 and then December more expensive than November. So what happens 0:13:53.840 --> 0:13:57.360 is the futures et F passes that that expense what's 0:13:57.360 --> 0:14:00.640 called the bleed. They pass it directly to the holders. 0:14:01.160 --> 0:14:05.280 Right now, this type of positively sloping futures curve when 0:14:05.280 --> 0:14:08.800 it's going up in value, it's called contango. You may 0:14:08.840 --> 0:14:11.800 have heard that term before. It's contango. Now contango is 0:14:11.880 --> 0:14:15.480 not your friend, well not if you're a commodity futures 0:14:15.520 --> 0:14:18.400 investor et F investor. It is not your friend because 0:14:18.480 --> 0:14:21.800 basically what's happening is it's bleeding you dry. It's bleeding 0:14:21.880 --> 0:14:24.520 your profits. Each month you have to keep paying those 0:14:24.560 --> 0:14:28.600 fees as they roll that over that contango. Um. And 0:14:28.640 --> 0:14:31.720 so it's not your friend. Um. And so that's why 0:14:31.720 --> 0:14:34.600 it's important to understand which way you invest into bitcoin, 0:14:35.080 --> 0:14:37.960 and you understand what type of bleed you might experience 0:14:38.040 --> 0:14:40.880 in a bitcoin futures et F. Now, on a bitcoin 0:14:41.080 --> 0:14:44.720 spot et F, there is no bleed, right, there's no 0:14:44.760 --> 0:14:47.640 bleed because they're not rolling over a contract. You're just 0:14:47.640 --> 0:14:50.240 just buying and holding. Now a bit a spot et F, 0:14:50.280 --> 0:14:52.240 which we don't have yet, hopefully we'll get one soon. 0:14:52.360 --> 0:14:54.440 Well I would prefer we had no et F at all, 0:14:54.440 --> 0:14:56.120 but if we're gonna get one, on the prefers spot 0:14:56.680 --> 0:14:59.200 But They also still come with costs and fees, of course, 0:14:59.680 --> 0:15:01.360 you know the cost to run the fund and for 0:15:01.400 --> 0:15:03.680 their attorneys and you know all that other stuff. UM, 0:15:03.720 --> 0:15:07.400 But there's no negative roll yield. They're not trying to 0:15:07.520 --> 0:15:10.400 roll those fees onto every single month. So that's a 0:15:10.440 --> 0:15:13.400 really big thing. UM. One reason why I really am 0:15:13.440 --> 0:15:16.400 not a fan of this at all. UM. I think 0:15:16.400 --> 0:15:19.200 there's some controversy because the SEC is only approving a 0:15:19.280 --> 0:15:22.040 product with the bleed uh and and not one with 0:15:22.120 --> 0:15:25.400 physical storage, right. I don't know why they would do that. 0:15:25.480 --> 0:15:28.200 They say it's for your protection, of course, I just 0:15:28.280 --> 0:15:32.160 don't see how that's possible. But a couple of things 0:15:32.160 --> 0:15:34.280 to know about the e t F. I mean, it's 0:15:34.360 --> 0:15:36.480 it's it's a huge market. So first of all, I 0:15:36.600 --> 0:15:39.880 said earlier that um, the big win e t F 0:15:40.040 --> 0:15:43.640 was the UM second largest e t F launch in 0:15:43.760 --> 0:15:45.960 history really kind of the first biggest, but we'll call 0:15:45.960 --> 0:15:48.200 it the second biggest. UM. And And the e t 0:15:48.320 --> 0:15:50.480 F market is huge. The global et F market is 0:15:50.520 --> 0:15:54.160 currently about eight trillion dollars and it's growing at over 0:15:54.280 --> 0:16:00.960 twenty six percent per year, which is massive obviously, UM. 0:16:00.960 --> 0:16:03.880 And uh, you know this this new investment vehicle. It 0:16:03.960 --> 0:16:06.360 does make it super easy for people to buy it. 0:16:06.440 --> 0:16:08.560 So a lot of people, for example, they can just 0:16:08.600 --> 0:16:11.200 now buy it right from their brokerage account, right from 0:16:11.200 --> 0:16:14.080 their E Trade or Fidelity Charles Schwab account or something 0:16:14.120 --> 0:16:17.760 like that. So that is nice. It democratizes the investing, 0:16:17.840 --> 0:16:20.800 you know, in a big way. Um, And so I 0:16:20.880 --> 0:16:24.360 think this just slide right into this eight trillion dollar 0:16:24.400 --> 0:16:27.200 market cap and then grab a pretty large portion of Remember, 0:16:27.240 --> 0:16:30.400 as I said, it's growing by twenty six percent a 0:16:30.520 --> 0:16:33.720 year now. Year to date, bitcoins prices up over triple 0:16:33.800 --> 0:16:38.160 digits up. And um, you know, if the futures e 0:16:38.360 --> 0:16:42.600 t F provides a negative twelve precent roll yield, remember 0:16:42.720 --> 0:16:45.240 rolling those fees in every single month, and e t 0:16:45.400 --> 0:16:48.320 F would still have doubled in price, which is pretty 0:16:48.360 --> 0:16:50.480 amazing because there's no other ETLs out there. They are 0:16:50.560 --> 0:16:52.880 doubling in the brice And so I think there's going 0:16:52.920 --> 0:16:57.040 to be a lot of demand for this type of 0:16:57.040 --> 0:16:59.880 an ETF. I think we'll see investment managers tripping over 0:17:00.040 --> 0:17:03.720 themselves to finally have something where they can get access 0:17:04.320 --> 0:17:07.520 exposure to the price of the bitcoin without having to 0:17:07.600 --> 0:17:09.480 deal with it, you know, as a commodity, So I 0:17:09.520 --> 0:17:12.000 think it's gonna be really big, really big. Now there's 0:17:12.000 --> 0:17:13.720 something else that you need to call a no and 0:17:13.720 --> 0:17:17.240 as a term called cash and carry all right now, 0:17:17.280 --> 0:17:20.160 cash and carry UM is one of the oldest tricks 0:17:20.200 --> 0:17:23.280 in the book. It's the arbitrage and UM. I think 0:17:23.320 --> 0:17:25.800 it's important to understand what this is because there's also 0:17:25.960 --> 0:17:28.480 some risk that could be there as well. But if 0:17:28.480 --> 0:17:30.480 you understand how to play this right, it could actually 0:17:30.520 --> 0:17:32.680 be a pretty big benefit for you. So I want 0:17:32.680 --> 0:17:35.240 to talk about the cash and carry and then I 0:17:35.280 --> 0:17:38.840 also want to talk about UM. One of the best 0:17:38.880 --> 0:17:41.440 known investors in the world today probably is a billionaire 0:17:41.560 --> 0:17:45.640 venture capitalists invested in all top technology. He says that 0:17:45.720 --> 0:17:49.720 he is under invested UM and he has some very 0:17:49.760 --> 0:17:51.720 important things to say. I think that will provide a 0:17:51.720 --> 0:17:53.159 lot of perspectives. I want to talk about that when 0:17:53.160 --> 0:17:56.920 we get back as well, UM, and we're gonna talk 0:17:56.920 --> 0:17:59.159 about some countries that are continuing to grow into this 0:17:59.160 --> 0:18:01.280 Bitcoin as well. Again, is the information that you need 0:18:01.320 --> 0:18:04.400 to participate to to take advantage of. I should say 0:18:04.440 --> 0:18:09.600 of the bitcoin, uh decentralized revolution, the cryptocurrency revolution that's 0:18:09.640 --> 0:18:12.560 happening right now. I have some big news. I want 0:18:12.560 --> 0:18:14.560 to bring it to you. Um, you're listening to the 0:18:14.560 --> 0:18:18.200 Mark Mo Show. We'll be right back, all right, Welcome back. 0:18:18.200 --> 0:18:20.080 You are listening to the Mark Mo Show where I 0:18:20.119 --> 0:18:23.080 bring to you the latest in information on bitcoin and 0:18:23.119 --> 0:18:28.000 cryptocurrencies and this decentralized revolution that's happening or right before 0:18:28.040 --> 0:18:31.159 our very eyes. You know, it's interesting when you're living 0:18:31.200 --> 0:18:34.480 through history, you probably don't see it, you don't recognize it. 0:18:34.920 --> 0:18:37.320 But I can tell you for sure that history books 0:18:37.320 --> 0:18:40.560 will be written about this very point in time. We're 0:18:40.600 --> 0:18:44.320 living through one of the most volatile times, um, in 0:18:44.400 --> 0:18:48.120 modern history. And you know, I think most people can 0:18:48.160 --> 0:18:51.000 realize how much, how much is how much is changing 0:18:51.000 --> 0:18:53.240 in this world. But what a lot of people don't 0:18:53.240 --> 0:18:55.440 probably realize is that there's this huge opportunity sitting in 0:18:55.480 --> 0:18:56.560 front of us. And so that's what I'm trying to 0:18:56.600 --> 0:18:59.040 bring to you each and every week. Now, before the break, 0:18:59.040 --> 0:19:01.359 we were talking about this Bitcoin e t F that 0:19:01.359 --> 0:19:03.439 went through this week. It was the biggest news that 0:19:03.560 --> 0:19:05.919 kind of rocked the world. It shot the price of 0:19:05.920 --> 0:19:09.680 bitcoin and most of the cryptocurrencies up higher this week. UM, 0:19:09.720 --> 0:19:11.480 And I think you know, for a couple of reasons. 0:19:11.520 --> 0:19:13.760