Speaker 1: All right, welcome back. You are listening to another episode
Speaker 1: of the Mark Moa show where we are discussing we're
Speaker 1: bringing you up to speed and we're helping you navigate
Speaker 1: the intersection of politics, finance, and technology. Of course, we're
Speaker 1: talking about the decentralized revolution that is changing the world
Speaker 1: as we know it today. It's happening really fast. Now.
Speaker 1: I try to bring you the education you need so
Speaker 1: you can understand these complex subjects very simply and you
Speaker 1: can help to navigate them a little bit better. I
Speaker 1: also try to bring you the latest breaking news so
Speaker 1: you're up to date on what's going on. And that's
Speaker 1: exactly what we're talking about today, because man, it's changing fast.
Speaker 1: If you're not up to date on what's going on,
Speaker 1: then you you're just not You're just not keeping up
Speaker 1: with what's going on the world today, and that that
Speaker 1: could be very dangerous for you, both socially, politically and financially. UM.
Speaker 1: I like to say on iron Rand quote, if you
Speaker 1: don't know who iron Rand is, then you're missing out
Speaker 1: on that as well. You should really read more books.
Speaker 1: So you wrote the book Atlas Rugged, which is a
Speaker 1: great book. Um, it's a long book. If you haven't
Speaker 1: read it, you should put it on your list of
Speaker 1: books to read. And if you're not gonna put on
Speaker 1: your list of books to read, then at least watch them.
Speaker 1: At least watch the movie. They made a movie about it. Um, true, True.
Speaker 1: Iron Man fans of Atlas Shrugg don't like the movie.
Speaker 1: I think it's pretty good. Um And you can watch
Speaker 1: it about two hours and it's actually pretty good with
Speaker 1: some pretty good actors, and it's it's entertaining. So check
Speaker 1: that out Atlas Shrugged. But anyway, back to her quote,
Speaker 1: she says that you can choose to ignore reality, but
Speaker 1: you can't ignore the consequences of reality. And so I
Speaker 1: get it if you're not always paying attention to this stuff,
Speaker 1: but it's not going to change the fact that it's
Speaker 1: going to impact your life. So you can either be
Speaker 1: surprised and wonder what happened, or you can make things happen.
Speaker 1: I guess that's a better way to say it. On
Speaker 1: a light note, I saw today that the Senate unanimously
Speaker 1: passed a bill to make daylight savings time permanent. Wow.
Speaker 1: That's pretty interesting. It's been nice having the longer hours,
Speaker 1: the longer daylight here at the at the end of
Speaker 1: the day. Hopefully you've been enjoying that looks like it
Speaker 1: could be permanent. Still has to get through the house,
Speaker 1: I suppose, But um, shoot, that could be. That could
Speaker 1: be a real thing. Not my typical topic. I just
Speaker 1: happened to see that pop up and I thought it
Speaker 1: was interesting. But you know, UM, a lot of things
Speaker 1: are happening, you know, as this world is going through
Speaker 1: this crazy pace. UM. I've been talking about how UM
Speaker 1: and the war with Russia Ukraine and the sanctions at
Speaker 1: the US and other nations are imposing on and how
Speaker 1: it's really radically changing the system as we know it.
Speaker 1: And it seems like, man, it just seems like they
Speaker 1: just can't stop doing things that are leading to their
Speaker 1: own demiyes, like literally destroying them. Oh man, if you
Speaker 1: guys remember back UM there was the famous a game
Speaker 1: stop where UM all these traders from UM Reddit Wall
Speaker 1: Street bets went on and they put a bunch of
Speaker 1: shorts where they did a short squeeze on a game
Speaker 1: stop where a hedge fund UM I believe with Melvin
Speaker 1: Capital was super super short. They had placed a lot
Speaker 1: of short bets basically betting that the price of game
Speaker 1: Stop would go down, and they're trying to drive the
Speaker 1: price of that stock down. And a bunch of nostalgic
Speaker 1: I don't know what we'll call them, not really investors,
Speaker 1: but traders, I guess we'll call them that to be nice,
Speaker 1: or degenerate gamblers if I want to be a little
Speaker 1: bit more mean. But basically, all these nostalgic uh UM
Speaker 1: traders got on to Reddit and they kind of organized
Speaker 1: this thing to do a short squeeze, which was to
Speaker 1: buy buy it to push the price up. And what
Speaker 1: happens is when they were short that game Stop, they're
Speaker 1: basically borrowing against it, and so as the price starts
Speaker 1: moving up, they're losing money because they're shorting it. They're
Speaker 1: betting the price will go down. But as the price
Speaker 1: went up, they were losing money, and so they had
Speaker 1: to keep putting more money in to UM to keep
Speaker 1: their position going. And the these Reddit traders from Wall
Speaker 1: Street bets were able to put so much money in
Speaker 1: that it nearly bankrupt Melvin Capital and they had to
Speaker 1: get a bunch of money and few But then what
Speaker 1: happened was even worse UM than like Robin Hood halted trading,
Speaker 1: and then UM they read it, shut down the message board,
Speaker 1: and Discord shut down their servers, and they did everything
Speaker 1: they could just stop that. They made it where people
Speaker 1: couldn't sell anymore, all these things to protect Wall Street.
Speaker 1: So Wall Street didn't lose any more money. And as
Speaker 1: bad as that was, as much as that ruined the
Speaker 1: integrity of the system in my in my view, it's
Speaker 1: only continued to get worse. And so we saw this week,
Speaker 1: as as as I've been talking about a lot as
Speaker 1: you listen to me on a regular basis, as the
Speaker 1: governments around the world, all the central banks around the
Speaker 1: world continue to print an unlimited amount of fake counterfeit
Speaker 1: paper feat currency created created money from thin air. And
Speaker 1: the more that they create money from thin air, the
Speaker 1: more people are gonna want to buy real, tangible, real
Speaker 1: things that can't be artificially increased or inflated were created.
Speaker 1: So um, those are things like commodities, those things like oil,
Speaker 1: like wheat, like gold, like nickel, and yes, like bitcoin,
Speaker 1: bitcoins not tangible you can't hold in your hand, but
Speaker 1: it can't be artificially created. Um. And so we saw
Speaker 1: this week something big happened. I saw um that the
Speaker 1: l m E forced a halt to nickel trading, and
Speaker 1: it canceled deals after prices topped over a hundred thousand dollars.
Speaker 1: So this was this was unprecedented. The LEEMY is the
Speaker 1: London Metal Exchange. Now, what a lot of people don't
Speaker 1: know probably about the metal industry the gold industry is
Speaker 1: that it's it's uh probably the farthest thing from like
Speaker 1: an actual free market. Um So a free market, you know,
Speaker 1: stocks are basically trading freely every day and through the
Speaker 1: buying and selling, it finds um price discovery, right, the
Speaker 1: prices discovered. But the gold markets don't work like that.
Speaker 1: Um they're set um. The price of gold set every
Speaker 1: morning by a couple of guys on the phone call
Speaker 1: from the l b M, a Lennon Buoyon Market Exchange,
Speaker 1: and and they they basically set the price. And so
Speaker 1: we also have the London Metal Exchange the ELEEMY. They
Speaker 1: also kind of control the price. And so they were
Speaker 1: forced to halt nickel trading. And nickels a commodity. It's
Speaker 1: a mineral that's used especially for UM batteries, for ev vehicles,
Speaker 1: things like that, And they canceled trades after prices doubled
Speaker 1: on Tuesday, to more than a hundred thousand dollars per
Speaker 1: ton um, and it was blamed on short covering by
Speaker 1: one of the world's top producers, so very similar to
Speaker 1: what happened with game stop short covering. And so what
Speaker 1: happens is a lot of times these producers, because they're
Speaker 1: so long, meaning they're they have so much material in
Speaker 1: the ground, they're they're long if they own it. If
Speaker 1: you own it, you're basically uh, betting that the price
Speaker 1: goes up. That means you're long. And so a lot
Speaker 1: of times these producers, since they're already so long, they'll
Speaker 1: go ahead and put some shorts to kind of hedge
Speaker 1: that if the price drops down, they're protected a little bit.
Speaker 1: And we saw that the shot came after as Western
Speaker 1: sanctions threatened supply from major producer Russia. So all these
Speaker 1: all these sanctions on Russia has created lots of unintended consequences,
Speaker 1: and so it threatened the supply and remember supply demand.
Speaker 1: If you don't have enough supply and demand stays up,
Speaker 1: then what happens with the price that goes up? Obviously,
Speaker 1: and it says uh, it marked the biggest crisis to
Speaker 1: hit the one and forty five year old exchange in decades,
Speaker 1: and I said, it's it's unprecedented, they said. They said.
Speaker 1: The suspension of the nickel market has created a number
Speaker 1: of issues for market participants which need to be addressed.
Speaker 1: Buyers are scrambling for the medal crucial for making stainless
Speaker 1: steel electric vehicles, and traders said some positions holders have
Speaker 1: also been struggling to pay margin calls. So these people
Speaker 1: that are short it are being caught on the wrong
Speaker 1: side another' having to meet these margin calls, are having
Speaker 1: to come up with this money. But that's not the
Speaker 1: that's not the story I'm really to want to tell
Speaker 1: you here. The story I want to tell you here
Speaker 1: is that in order to save a few big investors,
Speaker 1: to save Wall Street, basically the l m E halted
Speaker 1: all trading. And not just halted trading, they canceled orders
Speaker 1: on individual investors who had made millions and millions of dollars.
Speaker 1: Said nope, you made, you made, you risked your money.
Speaker 1: You did the hard work, you did the research, you
Speaker 1: took all the risk, you made all the money. Congratulations,
Speaker 1: but we're not going to pay you. We canceled all that. Sorry.
Speaker 1: And in order to say supposedly, in order to save
Speaker 1: the system from crashing, they had to ruin the entire
Speaker 1: integrity of the system. And this is what happens at
Speaker 1: the end of these long term debt cycles. I read
Speaker 1: a quote a last segment from Vladimir Lenin when he says,
Speaker 1: at the end of this cycle, UM, basically the best
Speaker 1: way to get money would be two would be gambling
Speaker 1: and theft. And that's exactly what happened. And so we're
Speaker 1: witnessing this breakdown in real time. I mean the last time,
Speaker 1: I mean, the Leemy basically just decided to cancel four
Speaker 1: billion dollars worth of nickel trades last week just to
Speaker 1: save Wall Street. They save JP Morgan and some local brokers.
Speaker 1: It's that bad. And I mean, this is dwarfs everything,
Speaker 1: And so we're literally witnessing the system crashing. Um. I
Speaker 1: got a lot more, a big one with Saudi Arabia
Speaker 1: and what's gonna happen with the oil and the dollar,
Speaker 1: maybe the final stake in the dollar. That's the one
Speaker 1: to talk about. I want to talk about bitcoin and work,
Speaker 1: and bitcoin fixed work and fix a lot of things.
Speaker 1: I want to talk about Europe's trying to do with
Speaker 1: with cryptocurrencies that could really affect the future. UM Deloitte,
Speaker 1: one of the biggest financial institutions in the United States.
Speaker 1: What they've recently said, I got a lot more to
Speaker 1: cover when I get back. You're listening to the Mark
Speaker 1: Moa show talking about the intersection of finance, politics and technology,
Speaker 1: talking about the decentralized revolution, trying to make it all
Speaker 1: sense makes sense to you. You can see it all
Speaker 1: in context. I'm gonna be back with a lot more.
Speaker 1: Do not go away, all right, Welcome back. You are
Speaker 1: listening to the Mark mo Show, talking you through the
Speaker 1: changes that are happening in the world right now, talking
Speaker 1: you through the changes that are really being brought by
Speaker 1: three cycles converging right now. That's politics, finance, and technology
Speaker 1: all coming together. We're talking about the decentralized revolution um
Speaker 1: that we're witnessing, that we're living through right now and
Speaker 1: every day if there's something really big happening. Before the break,
Speaker 1: I was talking about how um the Ellemy the in
Speaker 1: the middles Exchange canceled over four billion dollars worth of trades.
Speaker 1: Basically just told a bunch of people, sorry, you you
Speaker 1: you don't you don't get your money. I mean, they
Speaker 1: did that to save you know, Wall Street, save JP Morgan,
Speaker 1: and they destroyed the integrity of the system to potentially
Speaker 1: save a couple of people. And this is just happening
Speaker 1: more and more and more. The United States is really
Speaker 1: trying to torpedo their own grip on the world. Of course,
Speaker 1: the US dollar is the reserve currency of the world.
Speaker 1: What does that mean? That means that UM, that it's
Speaker 1: the reserve currency. That means that nations around the world
Speaker 1: hold their wealth in dollars. If you're if you're if
Speaker 1: you're a nation, you have hundreds of billions of dollars.
Speaker 1: How do you hold that? Well, you probably hold some
Speaker 1: gold and you also typically hold US dollars in US
Speaker 1: dollar treasuries and UM. When the sanctions started in the
Speaker 1: United States, basically UM seized Russia's bank accounts, Russia being
Speaker 1: one of three global superpowers. Now there's other superpowers with nukes.
Speaker 1: Russia's one of three global superpowers with nukes. UM. The
Speaker 1: rest of countries are tier two though. UM. But if
Speaker 1: you're Russia, one of three globes prowers with nukes and
Speaker 1: your bank accounts got frozen and seized. If it can
Speaker 1: happen to the Russia. It can happen to any country
Speaker 1: in the world. And the other countries around the world said,
Speaker 1: we'll shoot, we don't really want to hold our all
Speaker 1: our savings in dollars anymore. That doesn't make any sense
Speaker 1: if they're just gonna take it from us. And so
Speaker 1: the whole world is trying to figure that out. Now,
Speaker 1: if I take you back in time a little bit,
Speaker 1: if you watch any of my content, are listening to
Speaker 1: me on a regular basis, you know that I love
Speaker 1: to talk about history. I love the historical context of this.
Speaker 1: And so if we go back in time, in the
Speaker 1: entire world's financial system was reset in what was called
Speaker 1: the Breton Woods Agreement, and basically, um, the dollar would
Speaker 1: be backed by gold. Thirty five dollars would be exchangeable
Speaker 1: for one ounce of gold, and then all the currencies
Speaker 1: of the world would be backed or would be pegged
Speaker 1: to the dollar. So the entire world was on this
Speaker 1: gold system, and it worked really well because, um, you
Speaker 1: can't just artificially create more dollars, because you've had to
Speaker 1: have the gold. Well. In nineteen seventy one, then President
Speaker 1: Richard Nixon removed the dollar from the gold standard and
Speaker 1: when the dollar was removed from the gold standard, then
Speaker 1: all the other currencies of the world were pegged to
Speaker 1: the dollar. We're also removed from the gold standard, and
Speaker 1: so then why would anybody use gold? I mean, I'm sorry,
Speaker 1: why would anybody use dollars? And so the whole system
Speaker 1: got shaken up, and a couple of years later we
Speaker 1: entered into what was called the petro dollar system. And
Speaker 1: the petro dollar system basically said that the whole world
Speaker 1: needs oil, and Saudi Arabia produces all the world's oil.
Speaker 1: And so what we'll do is the United States will
Speaker 1: make a deal with Saudi Arabia where we promise the
Speaker 1: United States promises to always take care of you. This
Speaker 1: might bring answer some questions as to why the US
Speaker 1: is always trying to take care of Saudi Arabia. You
Speaker 1: might remember after one after nine eleven UM, then President
Speaker 1: Bush was secretly flying uh Saudi people out of the
Speaker 1: country UM when no one was allowed to fly UM.
Speaker 1: And this is why UM. So the United States basically
Speaker 1: promised to always have Saudi Arabia's back, always, always protect
Speaker 1: them militarily, etcetera. If Saudi Arabia would always sell, always
Speaker 1: price oil in US dollars. Since the whole world needed
Speaker 1: Saudia's oil, the US was able to maintain the US
Speaker 1: dollar reserve status through what's called the petro dollar. But
Speaker 1: the petro dollar is dying. The petro dollar is changing,
Speaker 1: and it changed rapidly right before our very eyes this week.
Speaker 1: As a matter of fact, per Yahoo News, Saudi Arabia
Speaker 1: reportedly is considering accepting Yuan's Chinese currency instead of dollars
Speaker 1: for oil cells. And don't don't don't underestimate how big
Speaker 1: this news is. UM. A lot of times, when you
Speaker 1: see this stuff happening in real time, you just don't
Speaker 1: really get it, um. But when you look backwards in time,
Speaker 1: you can see these key points in time that were
Speaker 1: really instrumental, pivotal, and this is one of those. So
Speaker 1: it says Saudi and Chinese officials are in talks to
Speaker 1: price some of the Gulf nation's oil cells and want
Speaker 1: rather than dollars or euros um. It says that nearly
Speaker 1: eighty percent of global oil sales are priced in dollars.
Speaker 1: Since the mid nineties seventies, which is when the petrol
Speaker 1: dollar was put into place, the Saudis have exclusively used
Speaker 1: the dollar for oil trading as part of a security
Speaker 1: agreement with the US government. This is reading from a
Speaker 1: Yahoo article, UM. And so there you have it. Now,
Speaker 1: the talks are the latest in ongoing effort by Beijing
Speaker 1: both to make its currency tradeable in international oil markets
Speaker 1: and strengthen its relationship with the Saudis. Specifically, Oh, there
Speaker 1: we go. So, Um, the US had this deal and
Speaker 1: now it's all fallen apart. China's weaseled their way in there,
Speaker 1: and they're they've been aiding them with construction of ballistic
Speaker 1: missiles and consultation on nuclear power. UM. And at the
Speaker 1: same time, it says, Uh, the Saudi US relationship has
Speaker 1: been increasingly frayed in recent years. UM. There was an
Speaker 1: assassination of a journalist in two thou An eight team
Speaker 1: that caused that problem, and then President Biden, who has
Speaker 1: said the assassination should make the kingdom a quote unquote pariah.
Speaker 1: And so things have just been falling apart with Saudi Arabia.
Speaker 1: Biden's comment to them really seemed to throw them over
Speaker 1: the edge. And so we've seen this starting to fall apart.
Speaker 1: Of course, like I said, China has moved in, Um,
Speaker 1: Saudi Arabia has now started moving oil over to China,
Speaker 1: providing one point seven six million barrels of oil a
Speaker 1: day to the country last year. Um. But now, like
Speaker 1: I said, um, selling it outside of the US dollar,
Speaker 1: which I said of it is in U S dollars.
Speaker 1: This is a big, big, big deal, especially if you're
Speaker 1: in the United States. Well, it's really for the whole world.
Speaker 1: I mean, if the world's reserved status changes, the entire
Speaker 1: world changes because it's the world's reserve status. So not
Speaker 1: just as the United States person, it happens all over
Speaker 1: the world. UM, this is something big that you need
Speaker 1: to be paying attention to. So that's why I'm bringing
Speaker 1: it to your attention. Um, the world's changing. Now, what
Speaker 1: will be eat the new reserve? Can we really trust
Speaker 1: any nation? I mean nobody trusts. Nobody trust China. Is
Speaker 1: they're really going to use the Chinese on um. And
Speaker 1: this is where I think bitcoin comes into play. Of
Speaker 1: course gold is still in play there as well. But
Speaker 1: this is big news. The world that we know it
Speaker 1: is changing place and a lot of this is the catalyst.
Speaker 1: Is this war right this war that's happening right now,
Speaker 1: and it's it's it's it's the catalyst like I said, Um, first,
Speaker 1: the sanctions, we kick everybody out of the financial system.
Speaker 1: Those people that were kicked out of the financial system
Speaker 1: now have to find another way to survive. They're not
Speaker 1: just gonna go die, So how do they continue survival.
Speaker 1: We can't use the US dollar anymore. We have to
Speaker 1: find something else. And then um, then we say other nations,
Speaker 1: now you can't trade with Russia either, But the other
Speaker 1: nations are like, but shoot, we still need their supplies.
Speaker 1: We still need their food. So Russia and Ukraine make
Speaker 1: up about thirty percent of the wheat and corn for
Speaker 1: the world, so the rest of the world needs that.
Speaker 1: And it's like, well, shoot, like we kind of need that,
Speaker 1: and like your make in the sanction them and then
Speaker 1: people start, you know, it starts falling apart. Next thing,
Speaker 1: you know, the petro dollar, which has kept the dollars
Speaker 1: reserve status alive since we left the gold standard, falls apart,
Speaker 1: and the world as we know it changes right before
Speaker 1: our very eyes. Um. Interesting, interesting news. Now there's some
Speaker 1: other stuff going on. There's specifically, there's stuff in the
Speaker 1: news this week where the EU, the Europe Europe has
Speaker 1: been trying to weigh in on what they want to
Speaker 1: do with cryptocurrencies. Hint. They want to put a lot
Speaker 1: of regulations in place on them. UM, A lot of
Speaker 1: regulations that could be very dangerous by holding back to
Speaker 1: the technology. Dangerous in that way. UM. The technology is
Speaker 1: needed to make this world better. The technology is needed
Speaker 1: for our kids to use it. The technology is needed
Speaker 1: to increase the economy. Uh. And and build out new places. Um.
Speaker 1: They don't want it. They don't want to discript their
Speaker 1: disrupt their monopoly. I want to talk about a couple
Speaker 1: of things that they did. UM. One of them is
Speaker 1: just so idiotic that I just can't even believe they
Speaker 1: put this forward without thinking about it, which, of course
Speaker 1: they don't want to talk about that. Um. And then
Speaker 1: I want to talk about some actual data that shows
Speaker 1: which way the market for cryptocurrencies is going a lot
Speaker 1: of stuff. When I come back, UM, you listen to
Speaker 1: the Mark Moss Show. I've got a lot more. Don't
Speaker 1: go away, I'll be right back. Everyone. Welcome back. You're
Speaker 1: listening to the Mark Moss Show. We're talking about I'm
Speaker 1: talking you through I'm trying to bring context to the
Speaker 1: world by telling you about politics and finance and technology.
Speaker 1: If you can understand how these three things feed into
Speaker 1: each other. You can understand what's going on in the
Speaker 1: world today, you can know how to navigate it, how
Speaker 1: to prepare for it, and all these things. Now, before
Speaker 1: the break, we we talked about some of these giant
Speaker 1: catalysts that just happened that maybe don't seem that big
Speaker 1: when you're looking at him, but I can promise you
Speaker 1: in ten twenty years from now, when we're looking backwards,
Speaker 1: these dates are going to be the key pivotal points. Um.
Speaker 1: If you've missed him, I'm not gonna recap for you.
Speaker 1: Sorry about that. Make sure you don't miss him next time.
Speaker 1: Or you can check it out on the Mark Moss
Speaker 1: uh Paul podcast. Just search Mark Moss podcast or Mark
Speaker 1: Moss I Heart. You can find that and you can
Speaker 1: catch up there. Uh So, don't worry. I got your back.
Speaker 1: But like I said, these are gonna be key pivotal moments.
Speaker 1: I mean, you do not want to sleep on these things.
Speaker 1: Um and I and I just want to preface I
Speaker 1: have I have some more stories that they'g into, but
Speaker 1: I I want to preface that. I mean, I know
Speaker 1: a lot of stuff I talk about is scary, and
Speaker 1: it is change is scary. It leads the world to uncertainty.
Speaker 1: We don't know what the world holds in front of us, um,
Speaker 1: But I do believe that there's a lot of hope
Speaker 1: on the other side. So while it's scary, I'm I'm
Speaker 1: excited for the world. I think I think the world's
Speaker 1: gonna better place for my kids. I'm excited about that.
Speaker 1: But but it is uncertain and uncertain scare scary. UM.
Speaker 1: The way that we beat uncertainty is with optionality. And
Speaker 1: so the more options that we have, the more equipped
Speaker 1: we are to deal with this uncertainty that we deal with.
Speaker 1: Of course, one of the best ways to have more
Speaker 1: optionality is with money. And so if you can understand money,
Speaker 1: you can navigate money, you can keep your money through
Speaker 1: these turbulent times. You can come out on the other
Speaker 1: side of this much better. Um. And so that's why
Speaker 1: I spent a lot of time talking about it. I
Speaker 1: don't I don't like to talk about money just to
Speaker 1: pile it up in a big bank account, um. But
Speaker 1: rather it's for options for me, myself and my family
Speaker 1: and my friends. It's also so I can help other people.
Speaker 1: I love to donate to charity charities and and and
Speaker 1: do a lot of stuff that way as well. UM.
Speaker 1: But it's but it's an important piece. Not not to
Speaker 1: be greedy. I don't drive a lambo. I could buy
Speaker 1: several of them, but I don't. I don't care about that.
Speaker 1: It's options for me, my family, etcetera. And it's it's
Speaker 1: to help other people. And hopefully you think about the
Speaker 1: same thing. So that's why we're talking about money. It's important. Um.
Speaker 1: And like I said, UM, I believe there's massive hope
Speaker 1: on the other side of this. It's just we have
Speaker 1: to get ahead of this. UM. I was at a
Speaker 1: as A at a conference a week ago and one
Speaker 1: of the speakers was like, we just we just we
Speaker 1: just can't die. We just have to stay alive. He said.
Speaker 1: Our goal is to be like a cockroach. Um. And
Speaker 1: so if we can keep our money intact, we can
Speaker 1: keep our purchasing power intact. Over the next couple years,
Speaker 1: we're going to have enormous opportunities. Um. And for its
Speaker 1: one of the best. One of my favorite places to
Speaker 1: put money is in bitcoin. I also still like the
Speaker 1: whold gold as well, outside of the banking system where
Speaker 1: they could just take it a ay arbitrarily from us. UM. Now,
Speaker 1: if you'd like to learn some strategies or hear from
Speaker 1: about here, like exactly what's gonna happen over the next
Speaker 1: couple of years and more importantly, what you should be
Speaker 1: doing about it. I am having a live conference. I'd
Speaker 1: love to have you come hang out with me in Dallas. UM,
Speaker 1: you can find information for Market Disruptors live dot com.
Speaker 1: I got like fifteen speakers in the world coming to
Speaker 1: talk about what's going to happen and uh, what you
Speaker 1: could be doing to navigated. Love to see you, meet
Speaker 1: you on the other end of this Market Disruptors live
Speaker 1: dot com. But some of these rules are that they're
Speaker 1: that they're passing. There's changes that are happening super super fast. UM.
Speaker 1: The EU Parliament had to vote this week, which was
Speaker 1: so crazy. UM. And they tried to pass a rule
Speaker 1: that luckily didn't go through but just barely. And the
Speaker 1: proposed rule would have been in effect. It would have
Speaker 1: banned popular cryptocurrency Bitcoin across the European Union. The ban
Speaker 1: Bitcoin across the European Union. That's massive now, it says.
Speaker 1: The European Parliament's Economic and Monetary Affairs Committee voted on
Speaker 1: Monday to keep the provision out of a draft, so
Speaker 1: they decided not to do that. Um. But it was
Speaker 1: this comprehensive regulatory package for governing digital assets, and it
Speaker 1: sought to limit the use of cryptocurrencies powered by an
Speaker 1: energy intensive computing process known as proof of work across
Speaker 1: the EU twenty seven member states. And here's the best part.
Speaker 1: The proposal met with a heavy backlash from crypto advocates worldwide. So, um,
Speaker 1: crypto advocates me, you, we are becoming a massive voting
Speaker 1: block in the United States. We may become the biggest
Speaker 1: voting block obviously in Europe as well. And that's super bullish. Um.
Speaker 1: The proposal met with a heavy backlash. That's what they
Speaker 1: state as the reason why. But listen how absurd this was.
Speaker 1: The proposal required all cryptocurrencies to be subject to the
Speaker 1: use quote minimum environmental sustainability standards with respect to their
Speaker 1: consensus mechanism end quote. So this proposal says that all
Speaker 1: you guys that are making technologies cutting edge technology, not
Speaker 1: just technologies technological revolutions. You guys are designing this, these
Speaker 1: new technologies that are so cutting age that will literally
Speaker 1: change the face of humanity. You have to you have
Speaker 1: to build this new technology to meet our standards. And
Speaker 1: we're a bunch of old people that don't know anything
Speaker 1: about technology, and we didn't design it, and we didn't
Speaker 1: solve any problems. But you have to somehow fit your
Speaker 1: technology to fit inside of our standards. I mean, it
Speaker 1: is the most absurd thing I have ever heard in
Speaker 1: my life. The Rule proposed a phase out plan to
Speaker 1: shift their consensus mechanism from proof of work to other
Speaker 1: methods that use less energy, like proof of steak. Wow,
Speaker 1: let me let me, let me let me unpack this
Speaker 1: a little bit for you. So so what does this
Speaker 1: mean here? Well, proof of work? So um, instead of
Speaker 1: having a centralized database um like bitcoin, I'm sorry, like
Speaker 1: Facebook has. Instead of one database, you have decentralized database.
Speaker 1: You have a bunch of databases, thousands or hundreds, thousands
Speaker 1: or millions of databases, and those databases have to achieve consensus,
Speaker 1: meaning U more than have to agree that that transaction
Speaker 1: is valid. And Bitcoin uses something called proof of work.
Speaker 1: And that's where these computers um log into the network
Speaker 1: and they mine bitcoin and they help process transactions. And
Speaker 1: they say that they use too much power. Well, what's
Speaker 1: too much power? They say? Bitcoin mining consumes um more
Speaker 1: than said uh um, bitcoin mining would rank in the
Speaker 1: world of terms of electricity consumption if it was a
Speaker 1: country in itself. Okay, you know what else does to
Speaker 1: clothes dryers? Do we need clothes dryers? You know what
Speaker 1: else does? YouTube? YouTube does do? Do we need YouTube? So? Like,
Speaker 1: at what point, I mean we could say all these
Speaker 1: things like clothes dryers and YouTube do as well? Um
Speaker 1: is that important? Which one is more important? Who's to
Speaker 1: say what's more important than the next? In my opinion,
Speaker 1: bitcoin is more important than YouTube or Facebook or TikTok.
Speaker 1: It's just absurd, and they want to these politicians want
Speaker 1: to regulate what these developers can do. I mean, it's
Speaker 1: just insane. But it doesn't seem to stop bitcoin anyway.
Speaker 1: We saw this week that's an article on coin desk
Speaker 1: said that bitcoin one point two billion dollars worth of
Speaker 1: coin Base I'm sorry, one point two billion dollars worth
Speaker 1: of bitcoin left coin Base in a sign of of adoption.
Speaker 1: So basically, coin base is one of the largest bitcoin
Speaker 1: um exchanges in the world. UM. So basically you can
Speaker 1: wire your money to bit a coin base and you
Speaker 1: can buy bitcoin, and a lot of people leave their
Speaker 1: bitcoin on the exchange, but this says that the coin
Speaker 1: base shows their outflows. The amount of people pulling bitcoin
Speaker 1: off the exchange has hit a new all time high.
Speaker 1: As a matter of fact, it says a total of
Speaker 1: thirty one thousand bitcoin left coin based last week, the
Speaker 1: highest single week outflow since two thousand seventeen. It's pretty
Speaker 1: big data. This is. This is data from glass notes.
Speaker 1: A bitcoin is an open source database, so we can
Speaker 1: see all this data. So it's unlike any other asset
Speaker 1: out there. They wanted to say, quote large outflows like
Speaker 1: this one are actually part of a consistent trend in
Speaker 1: the coin based balance which has been stair stepping downwards
Speaker 1: over the last two years. And so over the last
Speaker 1: two years, more and more people are pulling their bitcoin
Speaker 1: and cryptocurrencies off the exchange as they should do, not
Speaker 1: hold it on the exchange. We saw what happened in
Speaker 1: Canada when people got their bank accounts frozen. We saw
Speaker 1: what happened in Russia when they got their bank accounts frozen.
Speaker 1: And you can get your bank accounts frozen if you
Speaker 1: have money in the bank. You can get your bitcoin
Speaker 1: frozen if you have your bitcoin on an exchange. But
Speaker 1: if you take your bitcoin and your cryptocurrency off the exchange,
Speaker 1: then of course you have it and nobody can stop that.
Speaker 1: It says that the past week's outflow has pushed the
Speaker 1: number of coins held on cooin based to a four
Speaker 1: year low. UM they still have six fifty of them
Speaker 1: still have a lot. Because the balance held across all
Speaker 1: centralized exchanges has dropped to two point five million, it's
Speaker 1: the low list number since two thousands eighteen. The decline
Speaker 1: and exchange balance means fewer coins are available for liquidations
Speaker 1: on the exchange. In other words, the cell side liquidity
Speaker 1: is drying up, suggesting scope for a sharp move on
Speaker 1: the higher level. So supplying demand if there's less bitcoin
Speaker 1: that can be sold, what happens um supply demand. If
Speaker 1: there's more demand, less supply, the price goes up. But
Speaker 1: the key piece here is that more and more people
Speaker 1: are pulling it off of the exchange, and you should too.
Speaker 1: Like I said, let Canada be a lesson to you.
Speaker 1: Don't go away. I got a lot more to go
Speaker 1: all right, welcome back. You're listening to the Markma Show.
Speaker 1: We're talking about talking about the world. We're talking about
Speaker 1: a lot. I cover a lot on the show, I
Speaker 1: like to talk about the converging cycles of politics, finance,
Speaker 1: and technology all coming together, talking about the way the
Speaker 1: world is transitioning into a decentralized revolution and what that means,
Speaker 1: and so you have to kind of look at it
Speaker 1: from a bunch of different angles. Now, before the break,
Speaker 1: I was talking about, UM, some regulations over in Europe
Speaker 1: that were just completely idiotic and they were trying to
Speaker 1: basically change. They're trying to limit the the amount of
Speaker 1: progress that new technologies having by saying, no, you can't
Speaker 1: invent these kinds of things. You can only invent these
Speaker 1: kinds of things, or you can invent new things, but
Speaker 1: it must fit within our own little box. That's just
Speaker 1: not how it works. That's not how that's not how
Speaker 1: progress works. That's not how inventions work. Um. It's just
Speaker 1: completely crazy, UM to think of it like that. Um,
Speaker 1: But that's exactly what they're doing. They were trying to
Speaker 1: limit a consensus algorithm for bitcoin called proof of work,
Speaker 1: and UM, it doesn't work like that, and the data
Speaker 1: and the numbers they have is completely wrong, which is crazy. UM,
Speaker 1: But you know it doesn't stop them anyway. They continue
Speaker 1: to go from there. They continue to be even more
Speaker 1: crazy and they went on UM. There was another one
Speaker 1: that says here the the the n c A. The
Speaker 1: chief of the n c A claimed or wants to
Speaker 1: regulate coin mixers, but crypto industry is already one step ahead.
Speaker 1: It says the chief of the n c A claimed
Speaker 1: that coin mixing services offer a layer of anonymint and
Speaker 1: protection to criminals looking to launder and wash their dirty funds.
Speaker 1: So what does this even mean? What does this mean
Speaker 1: coin mixing? Well, if you have bitcoin, because bitcoin is
Speaker 1: on an open source ledger, you can see some of
Speaker 1: the data. Now, it's it's not easy, but there's companies
Speaker 1: that specialize in this. So for example, company like chain
Speaker 1: Analysis and they make this software. The big exchanges like
Speaker 1: coin based could use UM and it can, and it can.
Speaker 1: It can. It can basically go through all the open
Speaker 1: source ledgers and it can start to harvest the data
Speaker 1: and it can start to kind of put it all
Speaker 1: back together UM and it can start to try to
Speaker 1: kind of figure out some things. And what happens what
Speaker 1: coin mixing is I can put my my coins into
Speaker 1: like a mixer and a bunch of other people put
Speaker 1: their coins in and then it mixes them all together
Speaker 1: and then it redistributes them back out until now the
Speaker 1: history is now obfuskated or it's gone, it's hidden. And
Speaker 1: they're saying at people using these coin mixing mixing services
Speaker 1: offer a layer of anonymity and protection to criminals looking
Speaker 1: to launder. Well, it does offer a layer of anonomanity
Speaker 1: and protection. Um, it does, yes, But does that mean
Speaker 1: because I want a non amenity, that I'm a criminal
Speaker 1: automatically because I want privacy? Now cash has a non amenity.
Speaker 1: I can use cash, I can spend my dollars anywhere
Speaker 1: I want. Does that automatically make me a criminal? Am
Speaker 1: I am? I am? I guilty until proven innocent? I thought,
Speaker 1: at least in the United States, I was innocent until
Speaker 1: I was proven guilty. I get it. Like, Um, I
Speaker 1: could potentially use my money and I could do something illegal.
Speaker 1: But there's crime. I mean, there's there's that's that's that's
Speaker 1: that's a crime, and that's already illegal, hence the name illegal.
Speaker 1: The money isn't illegal. I could also drive my car
Speaker 1: on the way to do something illegal. Should we also
Speaker 1: ban an outlaw cars. I might also actually eat some
Speaker 1: food on my way to do something illegal, So should
Speaker 1: we ban food as well. See, we already have laws
Speaker 1: in place for things like that. So what they're saying
Speaker 1: here is that anyone who wants to do coin mixing
Speaker 1: because of the they want to a non amenity, they
Speaker 1: must be using it to launder their dirty funds, they
Speaker 1: want to say. The United Kingdom's National Crime Agency, the
Speaker 1: n c A National Crime Agency, seeks to regulate the
Speaker 1: crypto coin mixers under the country's laws against money laundering.
Speaker 1: Coin mixing tools are popular in the decentralized world as
Speaker 1: they maintain the privacy of transactions. These tools often mix
Speaker 1: several transactions to obscure the origin of a popular of
Speaker 1: our particular transaction. Um, okay again, the cat I mean
Speaker 1: the cash does the same thing. I don't have to
Speaker 1: mix it. Cash preserves my not amenity. That's the whole
Speaker 1: point of cash. Now this is this, this is brand
Speaker 1: this is the brand new thing. For the entire history
Speaker 1: of the world, money was like commodity money. So gold
Speaker 1: was money for five thousand years before gold. We had seashells,
Speaker 1: we had rocks, we had feathers, and I would go
Speaker 1: collect those rocks, feathers, seashells or gold. I would hold
Speaker 1: it and I would transact with it, and that was
Speaker 1: all done in a decentralized fashion, and it was all
Speaker 1: done anonymously, and everything was fine. It wasn't really until
Speaker 1: about twenty years ago and when the during the nine
Speaker 1: eleven World Trade Center UM incident, that the United States
Speaker 1: passed a bill that took away more freedom than any
Speaker 1: other bill in the history of the world. And I
Speaker 1: was called the Patriot Act. And then the government wanted
Speaker 1: to see every single transaction you ever did. They wanted
Speaker 1: to limit the amount of cash because UM now to
Speaker 1: the point where they want to look at all bank
Speaker 1: accounts that do more than six hundred dollars because your
Speaker 1: six hundred dollars could potentially lead to terrorism. Never Mind
Speaker 1: that the United States just gave the Tally ban you know,
Speaker 1: more black Hawk helicopters than the UK has. Never mind
Speaker 1: that we gave them billions of dollars, never mind that, UM,
Speaker 1: your six dollars could be the cause of that, supposedly.
Speaker 1: But really this was never a problem until twenty years ago,
Speaker 1: ntill they really wanted to do this. And so UM cash,
Speaker 1: like I said, always pervert, preserves that anonymity and there's
Speaker 1: no reason why bitcoin was designed to be digital cash
Speaker 1: and anybody who thinks that we have to know what
Speaker 1: it's called k y C. Know your customer doesn't understand economics.
Speaker 1: You see, Um, if I'm going to do business with you,
Speaker 1: with your business, I have to know you. I know
Speaker 1: that your business does good business. I know your product
Speaker 1: you're good, will be will be, it'll be a good
Speaker 1: product or service. I know I can trust you to
Speaker 1: deliver the quality, et cetera. But you don't have to
Speaker 1: know me. That's why we have money. You give me money,
Speaker 1: I give you the good in service. I don't need
Speaker 1: to know. You know, in the old days, we didn't
Speaker 1: have money, and so I would keep a ledger. I
Speaker 1: had to know everybody in town, and I'd say, okay,
Speaker 1: John owes me this, and Rick owes me this, and
Speaker 1: Marty owes me this. I keep a ledger. I had
Speaker 1: to know those people. But cash removes that. We don't
Speaker 1: need to have that. Oh no, but you know, for
Speaker 1: for for for potential crimes. You could you could can
Speaker 1: make crimes. Yeah, but we have laws against that. It
Speaker 1: was law again, scrap against that. So this is a
Speaker 1: new problem. It's interesting to see what happens here. Um, again,
Speaker 1: more politicians passing more arbitrary root rules to limit them.
Speaker 1: You know, progress now. Uh. Christine Lagarde, formerly head of
Speaker 1: the i m F, now head of the ECB or
Speaker 1: i m F is International Monetary Fund, the ECB as
Speaker 1: European Central Bank, she's an actual criminal, actual like she's
Speaker 1: actually been found guilty of criminal charges actually, and she
Speaker 1: runs the European Central Bank. Um. And she said that, um,
Speaker 1: if I can quote it, let's see if I can
Speaker 1: quote it. She said that progress is a threat to
Speaker 1: our financial stability. That's what she said, progre this is
Speaker 1: a threat to our financial stability. Um, no, no, no, no, no.
Speaker 1: Progress is a threat to your financial monopoly. That's what
Speaker 1: it is. We want progress. Progress only happens when something
Speaker 1: better comes along. It's called creative destruction. Something new comes
Speaker 1: out that's so much better, a thousand times better that
Speaker 1: it kills the old way. So for example, code could
Speaker 1: been around for a hundred years. Digital cameras destroyed code. Act.
Speaker 1: I mean, film is great, allows take pictures. I I
Speaker 1: appreciate that, but you know, digital cameras are just better.
Speaker 1: Progress changes things for the better. And yes, it would
Speaker 1: change the money supply for the better and yes, it
Speaker 1: would cause you to lose your financial monopoly. So it's
Speaker 1: not the progress destroys our financial stability through it destroys
Speaker 1: their financial monopoly. Very rich to hear that coming from
Speaker 1: a literally convicted criminal who runs the European Central Bank.
Speaker 1: UH to talk about that um and how your potential
Speaker 1: UH using bitcoin anonymously could be UM because you're a criminal.
Speaker 1: Remember we're supposed to be innocent until proven guilty. Now
Speaker 1: they want to impose these k y C no your
Speaker 1: customer regulations on you so they can just track everything.
Speaker 1: So that means that you have to give them your
Speaker 1: driver's license and your passport and your home address and
Speaker 1: all these things in order to buy bitcoin. And then
Speaker 1: when you want to convert bitcoin back to Fiat, you
Speaker 1: also have to do the k y C know your
Speaker 1: customer as well. And then if you put your information
Speaker 1: and when you buy it, and you put your information
Speaker 1: when you sell it, then these softwares like chain analysis
Speaker 1: can put all your transactions together and figure out who
Speaker 1: belongs to what. Now, of course, if we if we
Speaker 1: if we get bitcoin without k y C, and I
Speaker 1: spend bitcoin without k y C, which is of course
Speaker 1: the way it's supposed to be. Then they can't ever
Speaker 1: put that data together. Um, you're listening to the markmah
Speaker 1: Show talking about the intersection of politics, finance, and technology,
Speaker 1: talking about the decentralized revolution that is happening. That's what
Speaker 1: I got for you today. Thanks for listening.