1 00:00:00,760 --> 00:00:03,920 Speaker 1: Hello, and welcome to another episode of the Markmas Show 2 00:00:03,920 --> 00:00:07,240 Speaker 1: where we talk about this decentralized revolution that the world 3 00:00:07,320 --> 00:00:10,080 Speaker 1: is going through. Of course we are talking about bitcoin 4 00:00:10,160 --> 00:00:14,200 Speaker 1: that is leading this decentralized revolution, cryptocurrencies, and we do 5 00:00:14,240 --> 00:00:19,440 Speaker 1: it through looking through the lens of politics, technology and finance. 6 00:00:19,480 --> 00:00:23,360 Speaker 1: It's where those three converge is where all the change 7 00:00:23,440 --> 00:00:25,439 Speaker 1: on the edges, as we say, and so each and 8 00:00:25,480 --> 00:00:28,840 Speaker 1: every week and bringing to you the latest breaking news 9 00:00:28,880 --> 00:00:31,280 Speaker 1: to keep you informed. I'm bringing you some educations you 10 00:00:31,280 --> 00:00:33,800 Speaker 1: can really understand exactly what's going on. And of course 11 00:00:33,800 --> 00:00:35,240 Speaker 1: I try to bring to you some of the best 12 00:00:35,240 --> 00:00:37,720 Speaker 1: and brightest guests in the space so you don't just 13 00:00:37,720 --> 00:00:40,240 Speaker 1: have to hear me all the time. And right now 14 00:00:40,320 --> 00:00:43,240 Speaker 1: we are going to dig into some big topics because 15 00:00:43,600 --> 00:00:47,600 Speaker 1: there is a lot going on in the macro financial 16 00:00:47,640 --> 00:00:52,120 Speaker 1: space and then specifically inside the cryptocurrency space. Stuff is 17 00:00:52,240 --> 00:00:55,000 Speaker 1: blowing up left and right. It's what we might call 18 00:00:55,120 --> 00:00:59,000 Speaker 1: a crypto currency blood bath. And I know that sounds bad, 19 00:00:59,600 --> 00:01:03,040 Speaker 1: but that's basically what we're looking at. A blood bath. 20 00:01:03,080 --> 00:01:06,840 Speaker 1: Now what do I mean by that? Well, one, it's uh, 21 00:01:06,880 --> 00:01:10,880 Speaker 1: people are dying, not not literally, um well, unfortunately, some 22 00:01:11,120 --> 00:01:14,240 Speaker 1: literally uh. Most and we'll talk about that in a second. 23 00:01:14,280 --> 00:01:16,040 Speaker 1: But it's a sea of red right when you look 24 00:01:16,080 --> 00:01:17,960 Speaker 1: at the charts, it's all red. As a matter of fact, 25 00:01:18,000 --> 00:01:20,800 Speaker 1: the SMP five hundred this week was one day was 26 00:01:20,959 --> 00:01:23,520 Speaker 1: completely right. It means every single position in the SMP 27 00:01:23,520 --> 00:01:26,319 Speaker 1: five hundre it was down. That's bad news. But inside 28 00:01:26,360 --> 00:01:28,720 Speaker 1: the cryptocurrency space it's been bad. I talked about a 29 00:01:28,760 --> 00:01:32,000 Speaker 1: couple of weeks ago talking about this terror Luna us 30 00:01:32,040 --> 00:01:36,120 Speaker 1: stable coin terror Luna backed uh. It's an algorithmically pegged 31 00:01:36,400 --> 00:01:39,160 Speaker 1: to try to stay at a dollar which didn't work. Um, 32 00:01:39,200 --> 00:01:41,800 Speaker 1: and it was backed by their own token called Tera. 33 00:01:41,880 --> 00:01:44,840 Speaker 1: I went deep into that. If you miss that, I'm 34 00:01:44,840 --> 00:01:47,280 Speaker 1: not gonna go through all that again because people didn't 35 00:01:47,280 --> 00:01:48,720 Speaker 1: miss it and they don't want to hear it again. However, 36 00:01:48,720 --> 00:01:51,320 Speaker 1: if you did, don't worry. I got your back. You 37 00:01:51,320 --> 00:01:54,840 Speaker 1: can check it out on the podcast network. Just search 38 00:01:54,920 --> 00:01:58,240 Speaker 1: Mark Moss podcast on the Heart Radio network, iTunes wherever 39 00:01:58,280 --> 00:02:01,040 Speaker 1: you get your podcast you can find just search markets 40 00:02:01,080 --> 00:02:04,720 Speaker 1: podcast now. UM, if you did miss it, don't miss 41 00:02:04,720 --> 00:02:07,000 Speaker 1: it again. If you're not driving, pull your phone out 42 00:02:07,080 --> 00:02:09,480 Speaker 1: right now. Put a calendar reminder to be with me 43 00:02:09,560 --> 00:02:11,800 Speaker 1: on this channel on this time, right now, each and 44 00:02:11,840 --> 00:02:15,800 Speaker 1: every week, so you don't miss it. But as I 45 00:02:15,840 --> 00:02:18,200 Speaker 1: warned a couple of weeks ago, with that Terry Luna 46 00:02:18,480 --> 00:02:22,760 Speaker 1: um crash, I warned there would be more problems. I 47 00:02:22,800 --> 00:02:25,720 Speaker 1: warned that these Wall Street traders would be coming for 48 00:02:25,960 --> 00:02:29,600 Speaker 1: more of these pegs. I said that all pegs are 49 00:02:29,600 --> 00:02:32,200 Speaker 1: meant to be broken. I had. I had a conference. 50 00:02:32,200 --> 00:02:34,840 Speaker 1: I hold my own conferences. Is called Market Disruptors Live. 51 00:02:35,440 --> 00:02:37,639 Speaker 1: Market Disruptors live dot com if you want to check 52 00:02:37,639 --> 00:02:40,359 Speaker 1: it out. We just had one in May in Dallas, Texas. 53 00:02:41,000 --> 00:02:43,880 Speaker 1: And at the event, I was stopped by somebody they're attending, 54 00:02:45,000 --> 00:02:47,919 Speaker 1: and they asked me, what's your take on the Terror 55 00:02:48,000 --> 00:02:50,320 Speaker 1: Luna stable coin, because you could take it, you could 56 00:02:50,320 --> 00:02:52,400 Speaker 1: stake it on this thing called Anchor Protocol and earn 57 00:02:52,440 --> 00:02:58,120 Speaker 1: about nine point six And I told him that all 58 00:02:58,240 --> 00:03:01,760 Speaker 1: pegs are meant to be broken, not necessarily meant to be. 59 00:03:01,760 --> 00:03:03,240 Speaker 1: They didn't, they didn't design them to meant to be. 60 00:03:03,320 --> 00:03:06,919 Speaker 1: But the traders are going to target them and try 61 00:03:06,919 --> 00:03:09,400 Speaker 1: to break them and get really wealthy off of that. 62 00:03:09,400 --> 00:03:11,639 Speaker 1: Well maybe not always wealthy, but increase their stack if 63 00:03:11,639 --> 00:03:16,400 Speaker 1: you will. However, George Soros became famously wealthy by breaking 64 00:03:16,440 --> 00:03:18,720 Speaker 1: the peg, breaking the Bank of England in a single day, 65 00:03:18,720 --> 00:03:22,560 Speaker 1: making a billion dollars. And so that's what they do. 66 00:03:22,680 --> 00:03:24,880 Speaker 1: They play that they're gonna target it, they're gonna try 67 00:03:24,880 --> 00:03:27,079 Speaker 1: to break it. They're gonna try and make money. We've 68 00:03:27,080 --> 00:03:29,360 Speaker 1: seen this, you know, in the eighties through these corporate raiders. 69 00:03:29,639 --> 00:03:31,960 Speaker 1: There's a movie Wall Street made about it. They made 70 00:03:31,960 --> 00:03:34,320 Speaker 1: a remake of that, or an extension of that movie 71 00:03:34,360 --> 00:03:36,800 Speaker 1: called Money Never Sleeps. It's a great movie, kind of 72 00:03:36,840 --> 00:03:40,240 Speaker 1: covers what happened, um in the two Great Financial Crash. 73 00:03:40,280 --> 00:03:42,360 Speaker 1: If you haven't watched it, you should. Um. And we 74 00:03:42,440 --> 00:03:44,800 Speaker 1: thought in game stop and you know now here it 75 00:03:44,960 --> 00:03:50,120 Speaker 1: is targeting. There's Tara Luna and it's a shame. You know, 76 00:03:50,360 --> 00:03:53,000 Speaker 1: I'm gonna explain what's going on. We're gonna look at 77 00:03:53,160 --> 00:03:55,880 Speaker 1: the contagion that's happened. But you know, in regards to this, 78 00:03:55,920 --> 00:03:58,440 Speaker 1: it's a shame. Um. You know, you have these these 79 00:03:58,480 --> 00:04:01,760 Speaker 1: wealthy head fund guys, you know, maybe billionaires, and they're 80 00:04:01,800 --> 00:04:04,120 Speaker 1: hoping to make an extra half a billion dollars when 81 00:04:04,120 --> 00:04:07,200 Speaker 1: they already got billions and uh, you know whatever, good 82 00:04:07,200 --> 00:04:13,120 Speaker 1: for them. However, they're ruining the lives of thousands and 83 00:04:13,480 --> 00:04:16,080 Speaker 1: hundreds of thousands of people. And when I say it's 84 00:04:16,080 --> 00:04:18,440 Speaker 1: actually blood bath, like people died in that terror learned thing, 85 00:04:18,440 --> 00:04:21,159 Speaker 1: I heard over a dozen people had taken their life, 86 00:04:21,640 --> 00:04:23,400 Speaker 1: which is a real shame. I was in. I was 87 00:04:23,440 --> 00:04:25,880 Speaker 1: in Austin, Texas last weekend for one of the biggest 88 00:04:25,880 --> 00:04:29,320 Speaker 1: cryptocurrency conferences in the world called Consensus, and I was 89 00:04:29,360 --> 00:04:32,560 Speaker 1: at one of their official after parties and somebody stopped 90 00:04:32,600 --> 00:04:34,000 Speaker 1: me and they said, hey, you know I'm a I'm 91 00:04:34,000 --> 00:04:36,839 Speaker 1: a big fan, and um, I'm here at this conference. 92 00:04:36,839 --> 00:04:38,200 Speaker 1: I booked this ticket a while ago. I put the 93 00:04:38,240 --> 00:04:39,920 Speaker 1: highest level ticket I could get so I could get 94 00:04:39,920 --> 00:04:42,279 Speaker 1: the networking. And I was really hoping to launch this 95 00:04:42,320 --> 00:04:46,080 Speaker 1: new business inside this cryptocurrency space. And um, you know, 96 00:04:46,200 --> 00:04:50,480 Speaker 1: I'm He was about fifty years old, and uh, if 97 00:04:50,480 --> 00:04:52,640 Speaker 1: you're listening, I'm not going to call you about by name, 98 00:04:52,680 --> 00:04:55,840 Speaker 1: but um, you know I'm talking about you. But anyway, 99 00:04:55,880 --> 00:04:58,160 Speaker 1: he said, you know, I've I've had this marketing business 100 00:04:58,160 --> 00:04:59,960 Speaker 1: for a long time and I did really really good 101 00:05:00,120 --> 00:05:04,080 Speaker 1: for myself and I just sold it and uh, you know, 102 00:05:04,240 --> 00:05:05,400 Speaker 1: have a good amount of money. I think it was 103 00:05:05,520 --> 00:05:07,040 Speaker 1: enough money to retire off of it didn't give me 104 00:05:07,080 --> 00:05:09,840 Speaker 1: the exact amount. He kind of hinted to it, Um, 105 00:05:09,839 --> 00:05:12,400 Speaker 1: it's enough to retire off of. And he put it 106 00:05:12,440 --> 00:05:15,440 Speaker 1: all into stable coin, so real quick. For those that 107 00:05:15,480 --> 00:05:17,920 Speaker 1: are not up to speed, a stable coin basically means 108 00:05:17,920 --> 00:05:19,520 Speaker 1: I give you a dollar, you give me a token 109 00:05:19,600 --> 00:05:22,760 Speaker 1: back that's redeemable for a dollar. And they call it 110 00:05:22,800 --> 00:05:25,120 Speaker 1: stable because it doesn't have the volatility that bitcoin or 111 00:05:25,160 --> 00:05:29,480 Speaker 1: the cryptocurrencies would have. Instead, it's always worth one dollar 112 00:05:30,240 --> 00:05:31,560 Speaker 1: and so let that. So he's like, oh, you know 113 00:05:31,560 --> 00:05:33,320 Speaker 1: stable coins at stable, I don't have to worry about it. 114 00:05:33,320 --> 00:05:35,000 Speaker 1: And he took his eye off the ball, and he 115 00:05:35,000 --> 00:05:37,160 Speaker 1: didn't measure the risk that was involved. And we're gonna 116 00:05:37,160 --> 00:05:39,240 Speaker 1: talk about the risk here in a minute. He didn't 117 00:05:39,279 --> 00:05:41,800 Speaker 1: look at the risk. He took his eye off the ball. Uh, 118 00:05:42,000 --> 00:05:45,360 Speaker 1: he saw that the peg was breaking. But then, um, 119 00:05:45,400 --> 00:05:47,680 Speaker 1: what happened is you know all of these people are like, no, no, no, 120 00:05:47,720 --> 00:05:50,239 Speaker 1: don't sell, don't sell, don't sell. It's gonna come back. 121 00:05:50,440 --> 00:05:52,960 Speaker 1: This happened before you know, it loses the peg, but 122 00:05:52,960 --> 00:05:54,799 Speaker 1: then it comes back. If you lose, now you're gonna 123 00:05:55,240 --> 00:05:57,080 Speaker 1: you're gonna take the losses, right, That's what they said. 124 00:05:57,160 --> 00:05:59,520 Speaker 1: You only you only lose if you sell hold hold, hold, 125 00:05:59,560 --> 00:06:03,200 Speaker 1: hold whole. Within three days, it was gone. He lost everything. 126 00:06:04,320 --> 00:06:07,560 Speaker 1: Decades he worked building up this company, he put it 127 00:06:07,720 --> 00:06:11,320 Speaker 1: all in, he let it all ride, and he lost 128 00:06:11,360 --> 00:06:13,719 Speaker 1: it all. And now here he isn't in, uh, you know, 129 00:06:13,800 --> 00:06:17,120 Speaker 1: fifty years old and basically has to start all over. 130 00:06:17,279 --> 00:06:19,239 Speaker 1: And I really sympathize with that. You've heard my story. 131 00:06:19,480 --> 00:06:21,640 Speaker 1: When I was thirty years old, I had to start 132 00:06:21,720 --> 00:06:24,040 Speaker 1: all over. Now thirty and fifties a little bit different, 133 00:06:24,040 --> 00:06:26,040 Speaker 1: but you know, I sympathized for him. He can, he can, 134 00:06:26,040 --> 00:06:27,320 Speaker 1: he can make it back. I know he can. I 135 00:06:27,480 --> 00:06:29,640 Speaker 1: I did. I know he can as well. He still 136 00:06:29,640 --> 00:06:32,159 Speaker 1: has those skills. However, the point that I had to 137 00:06:32,240 --> 00:06:34,200 Speaker 1: learn the hard way, the point that he just had 138 00:06:34,240 --> 00:06:35,520 Speaker 1: to learn the hard way, in the point I'm hoping 139 00:06:35,560 --> 00:06:37,920 Speaker 1: you don't have to learn the hard ways. Never go 140 00:06:38,200 --> 00:06:42,000 Speaker 1: all in, ever, don't do it. Don't do it. It's 141 00:06:42,040 --> 00:06:45,160 Speaker 1: not worth it. The the the reward of being right 142 00:06:45,760 --> 00:06:50,360 Speaker 1: is not worth the risk of being wrong. And I said, hey, 143 00:06:50,360 --> 00:06:52,240 Speaker 1: once they started taking these out, they're gonna start going 144 00:06:52,279 --> 00:06:56,360 Speaker 1: after all these other pigs. So um, all these leveraged 145 00:06:56,440 --> 00:06:58,839 Speaker 1: positions like the game stop I referenced right, it was 146 00:06:58,880 --> 00:07:02,120 Speaker 1: a short squeeze. All the people had leveraged shorts against 147 00:07:02,200 --> 00:07:04,400 Speaker 1: game Stop, and so they tried to push it back 148 00:07:04,480 --> 00:07:08,000 Speaker 1: up and squeeze that short because they were using leverage. 149 00:07:08,080 --> 00:07:10,200 Speaker 1: Keyword being leverage here, and so you need to be 150 00:07:10,320 --> 00:07:14,000 Speaker 1: very very careful about these leverage positions, including taking your 151 00:07:14,000 --> 00:07:17,600 Speaker 1: Bitcoin or other cryptocurrencies and leveraging against them using debt. 152 00:07:17,760 --> 00:07:20,080 Speaker 1: That's that's what leverage is, using debt. I like to 153 00:07:20,120 --> 00:07:24,920 Speaker 1: say that leverage is sort of like fire. Leverages. Like fire, 154 00:07:26,560 --> 00:07:29,720 Speaker 1: it can warm your house or it can burn your 155 00:07:29,800 --> 00:07:32,119 Speaker 1: house down, and that means it can work both ways. 156 00:07:32,160 --> 00:07:35,040 Speaker 1: If you use it properly, it can be very useful tool. However, 157 00:07:35,440 --> 00:07:37,960 Speaker 1: if you don't use it properly, it can wipe you out. 158 00:07:37,960 --> 00:07:39,760 Speaker 1: It can be disastrous, and so you've gotta be very 159 00:07:39,800 --> 00:07:43,440 Speaker 1: careful with that. Now, if all you're doing is holding 160 00:07:43,520 --> 00:07:47,840 Speaker 1: bitcoin only and you're not putting it on these exchanges 161 00:07:47,880 --> 00:07:51,960 Speaker 1: like Terro Luna or into something like Celsius, which we're 162 00:07:51,960 --> 00:07:53,560 Speaker 1: going to talk about here in a minute. And that's 163 00:07:53,600 --> 00:07:56,720 Speaker 1: the next one blowing up. And now there's two or 164 00:07:56,800 --> 00:08:00,400 Speaker 1: three more dominoes about the fall next because of happening 165 00:08:00,400 --> 00:08:02,920 Speaker 1: in Celsius. We're gonna talk about that. But if you 166 00:08:02,920 --> 00:08:05,160 Speaker 1: just hold your bitcoin, and you just hold it in 167 00:08:05,240 --> 00:08:08,640 Speaker 1: your possession, in your custody, and you don't really have 168 00:08:08,680 --> 00:08:11,760 Speaker 1: a lot to worry about. Yeah, sure it's volatile, but 169 00:08:11,880 --> 00:08:13,760 Speaker 1: over the long period of time, it's always continue to 170 00:08:13,800 --> 00:08:16,760 Speaker 1: go up. The lowest point of bitcoin every single year 171 00:08:16,800 --> 00:08:20,880 Speaker 1: has always been higher. So that's been pretty good. You know, 172 00:08:20,960 --> 00:08:22,880 Speaker 1: when you look at where is it from the top, 173 00:08:23,160 --> 00:08:24,840 Speaker 1: it says a different story. But if you look at 174 00:08:24,840 --> 00:08:27,480 Speaker 1: from the bottom that it's been higher every single year, 175 00:08:28,160 --> 00:08:30,680 Speaker 1: then it looks pretty good. Now, if you have a 176 00:08:30,800 --> 00:08:33,319 Speaker 1: you know, three year time frame at least, then you're 177 00:08:33,320 --> 00:08:34,960 Speaker 1: looking pretty good. If you're looking at bitcoin on a 178 00:08:34,960 --> 00:08:36,839 Speaker 1: monthly basis or weekly basis, it could tell you a 179 00:08:36,880 --> 00:08:39,360 Speaker 1: different story, which is why you should never look at 180 00:08:39,360 --> 00:08:42,079 Speaker 1: any of your investments that in that short time unless 181 00:08:42,040 --> 00:08:44,720 Speaker 1: you're unless you're a day trader, which you shouldn't because 182 00:08:44,720 --> 00:08:46,520 Speaker 1: I don't make a lot of money. Now, I'm gonna 183 00:08:46,559 --> 00:08:49,280 Speaker 1: talk about three more bombs that are sitting in the 184 00:08:49,280 --> 00:08:51,000 Speaker 1: crypto space that you need to be aware of, and 185 00:08:51,040 --> 00:08:52,680 Speaker 1: even if you're not involved in them, it could be 186 00:08:52,679 --> 00:08:54,480 Speaker 1: disastrous for you. So I'll be right back with more. 187 00:08:55,040 --> 00:08:57,480 Speaker 1: All Right, welcome back. You are listening to the markma Show, 188 00:08:57,520 --> 00:09:00,320 Speaker 1: and we're talking about the decentralized revolution and that the 189 00:09:00,360 --> 00:09:03,400 Speaker 1: world is going through. That's why it's so crazy. So 190 00:09:03,440 --> 00:09:05,560 Speaker 1: why the world seems like it's breaking up, because it 191 00:09:05,640 --> 00:09:07,800 Speaker 1: literally is. For the last two or fifty years, the 192 00:09:07,840 --> 00:09:10,880 Speaker 1: world has been working towards centralization and now that's breaking 193 00:09:10,880 --> 00:09:14,800 Speaker 1: apart and we're going to decentralization. Of course it's being led. Um, 194 00:09:15,200 --> 00:09:18,040 Speaker 1: I don't know about being led, but it's it's being 195 00:09:18,080 --> 00:09:22,480 Speaker 1: helped along by decentralized technology, which of course we're talking 196 00:09:22,520 --> 00:09:26,360 Speaker 1: about bitcoin, thinking about this cryptocurrency space, and specifically we're 197 00:09:26,400 --> 00:09:28,920 Speaker 1: talking about these blow ups that are happening in this 198 00:09:29,000 --> 00:09:32,480 Speaker 1: blood bath that's been happening. And so we talked about 199 00:09:32,520 --> 00:09:34,040 Speaker 1: Tera Luna. I'm not gonna go back through that again. 200 00:09:34,120 --> 00:09:36,880 Speaker 1: And now the next domino, as I warned a few 201 00:09:36,920 --> 00:09:40,439 Speaker 1: weeks ago, is starting to collapse, and that is Celsius. 202 00:09:40,480 --> 00:09:45,080 Speaker 1: Now Celsius is they halted withdraws and that's not a 203 00:09:45,080 --> 00:09:48,240 Speaker 1: good sign. Now if you have money with Celsius. This 204 00:09:48,320 --> 00:09:52,080 Speaker 1: is what I know so far. Um, Basically, they halted withdraws. 205 00:09:52,080 --> 00:09:55,360 Speaker 1: The reason why is because again back to the Tera Luna, 206 00:09:55,440 --> 00:09:58,760 Speaker 1: these Wall Street raiders are targeting these these funds that 207 00:09:58,800 --> 00:10:00,880 Speaker 1: have leverage and they're trying to take them out in 208 00:10:00,960 --> 00:10:03,600 Speaker 1: order to enrich themselves a little bit, all right, And 209 00:10:03,640 --> 00:10:07,719 Speaker 1: we knew that Celsius could be liquidated if Bitcoin got 210 00:10:07,720 --> 00:10:10,120 Speaker 1: below I think it was like twenty three and so 211 00:10:10,280 --> 00:10:12,480 Speaker 1: I guess what they're gonna do. They're gonna try to 212 00:10:12,559 --> 00:10:15,840 Speaker 1: push bitcoin down by shorting it below twenty three thousand 213 00:10:15,880 --> 00:10:20,000 Speaker 1: to liquidate Celsius, and the Celsius was trying to prevent 214 00:10:20,040 --> 00:10:23,280 Speaker 1: that from happening, and so what they did supposedly is 215 00:10:23,320 --> 00:10:25,719 Speaker 1: they locked all customer with draws because what happened is 216 00:10:25,760 --> 00:10:27,640 Speaker 1: as soon as customers started hearing about this, they wanted 217 00:10:27,640 --> 00:10:30,080 Speaker 1: to get their money off as fast as possible. But 218 00:10:30,160 --> 00:10:33,080 Speaker 1: the more money that was pulled off of Celsius a 219 00:10:33,120 --> 00:10:35,520 Speaker 1: bank run and that's what it's called um, then the 220 00:10:35,640 --> 00:10:39,320 Speaker 1: less collateral they had to try to bring this hedged 221 00:10:39,360 --> 00:10:43,840 Speaker 1: position down. So they locked customer with draws and then 222 00:10:43,920 --> 00:10:48,760 Speaker 1: they started adding more collateral and they brought their liquidation 223 00:10:48,800 --> 00:10:51,640 Speaker 1: point from twenty three thousand down to eighteen thousand and 224 00:10:51,880 --> 00:10:54,160 Speaker 1: fifteen thousand, and I think it sits somewhere in the 225 00:10:54,200 --> 00:10:59,760 Speaker 1: twelve to thirteen thousand range right now, which is pretty good. Um, 226 00:11:00,000 --> 00:11:02,800 Speaker 1: if you have money locked up on Celsius, h you're 227 00:11:02,840 --> 00:11:05,960 Speaker 1: not alone. There's lots of people that do. And it 228 00:11:06,120 --> 00:11:09,719 Speaker 1: all hope isn't gone. Now. I'm gonna be real with you. 229 00:11:10,200 --> 00:11:13,559 Speaker 1: It doesn't look super good, um, but there's a chance. 230 00:11:14,160 --> 00:11:17,680 Speaker 1: So they brought in some They brought in some restructuring 231 00:11:17,720 --> 00:11:19,880 Speaker 1: specialists who are trying to help them restructure this. You 232 00:11:19,920 --> 00:11:24,319 Speaker 1: don't think bankruptcy. And there's there's talk of a potential takeover, 233 00:11:24,400 --> 00:11:26,440 Speaker 1: maybe a buy out, A big fund would would buy 234 00:11:26,440 --> 00:11:29,679 Speaker 1: them out. Maybe if they can unwind this, they can 235 00:11:29,720 --> 00:11:32,280 Speaker 1: prevent the liquidation event first of all, and then maybe 236 00:11:32,400 --> 00:11:34,640 Speaker 1: something they get some investment to buy out and then 237 00:11:34,679 --> 00:11:38,080 Speaker 1: some restructuring. Maybe there's a chance you get some of 238 00:11:38,120 --> 00:11:40,560 Speaker 1: your money back. I don't know what that percentage will be. 239 00:11:40,600 --> 00:11:44,400 Speaker 1: We'll have to see, but uh, there's a chance. However, 240 00:11:44,440 --> 00:11:47,840 Speaker 1: I wouldn't hold your breath, so maybe just consider it 241 00:11:47,840 --> 00:11:50,480 Speaker 1: a rite off and if you get anything back, maybe 242 00:11:50,480 --> 00:11:53,240 Speaker 1: consider yourself lucky. But that's where the situation is right now. 243 00:11:53,280 --> 00:11:55,240 Speaker 1: But what went wrong? I think that's what we have. 244 00:11:55,600 --> 00:11:59,120 Speaker 1: We want to learn that. Um. The old saying is um, 245 00:11:59,280 --> 00:12:01,480 Speaker 1: fool me once, aim on you, fool me twice, shame 246 00:12:01,520 --> 00:12:03,360 Speaker 1: on me. My father has told me over and over 247 00:12:03,440 --> 00:12:06,080 Speaker 1: once as an accident, twice as stupid, which means, hey, 248 00:12:06,160 --> 00:12:07,800 Speaker 1: we all mit mistakes, but don't let it happen again, 249 00:12:07,880 --> 00:12:10,160 Speaker 1: or you're stupid. And so basically, what the heck happened here? 250 00:12:10,200 --> 00:12:12,600 Speaker 1: What can we learn? So even if you had money 251 00:12:12,600 --> 00:12:14,400 Speaker 1: in or didn't, you still need to learn from this. 252 00:12:14,520 --> 00:12:16,320 Speaker 1: This is a learning experience. They say, I never I 253 00:12:16,360 --> 00:12:21,040 Speaker 1: never lose because I either win or I learned. So 254 00:12:21,080 --> 00:12:22,679 Speaker 1: let's learn from this. Even if you didn't lose, let's 255 00:12:22,760 --> 00:12:24,600 Speaker 1: learn something for this. So what do we see? Celsius 256 00:12:24,600 --> 00:12:27,680 Speaker 1: calls itself a network or a lender, but in reality 257 00:12:27,720 --> 00:12:31,000 Speaker 1: it wasn't. It was like a highly leveraged lead hedge fund. 258 00:12:31,000 --> 00:12:33,600 Speaker 1: Now they said that supposed it was Celsius, And and 259 00:12:33,600 --> 00:12:36,120 Speaker 1: there's block fine, there's Nexto, and there's crypto dot com, 260 00:12:36,160 --> 00:12:39,480 Speaker 1: and there's there's other ones. Supposedly you give them money 261 00:12:39,760 --> 00:12:41,760 Speaker 1: and they give you yield back. I give you my 262 00:12:41,760 --> 00:12:44,880 Speaker 1: bitcoin or my cryptocurrency, you pay me four percent or 263 00:12:44,920 --> 00:12:48,120 Speaker 1: five percent interest on it. Sounds pretty good and then 264 00:12:48,160 --> 00:12:51,120 Speaker 1: they were supposedly giving able to pay me that because 265 00:12:51,160 --> 00:12:54,400 Speaker 1: they would loan that bitcoin or other cryptocurrencies out, and 266 00:12:54,440 --> 00:12:57,400 Speaker 1: they would only loan it to people that were overcollateralized 267 00:12:57,400 --> 00:13:00,920 Speaker 1: a collateralized that way, if they um to pay back, 268 00:13:00,960 --> 00:13:03,400 Speaker 1: then they could liquidate their capital and I would get 269 00:13:03,520 --> 00:13:06,199 Speaker 1: my money back. That's the story that I've been told. 270 00:13:06,240 --> 00:13:09,160 Speaker 1: Now that's apparently not how it was working. And so 271 00:13:09,240 --> 00:13:11,800 Speaker 1: let's see exactly what happened now. First of all, if 272 00:13:11,800 --> 00:13:13,720 Speaker 1: you're giving your money to somebody, first of all, that 273 00:13:13,760 --> 00:13:17,520 Speaker 1: introduces something called counterparty risk. Um. Anytime you give something 274 00:13:17,559 --> 00:13:20,319 Speaker 1: to someone else, there's a chance you don't get it back, period, 275 00:13:20,640 --> 00:13:23,720 Speaker 1: and it's up to you. Please do me a favorite. 276 00:13:24,360 --> 00:13:28,599 Speaker 1: Never give an asset, your money, a stock or or 277 00:13:28,600 --> 00:13:33,240 Speaker 1: bigcoin of cryptocurrency to somebody without knowing if they'll be 278 00:13:33,240 --> 00:13:35,280 Speaker 1: able to pay you back. What that risk is. You 279 00:13:35,320 --> 00:13:37,720 Speaker 1: need to quantify what that risk is of not getting 280 00:13:37,720 --> 00:13:41,440 Speaker 1: that back. That step number one, which is why I'm sorry, 281 00:13:41,880 --> 00:13:43,839 Speaker 1: I'm ready for the hate mail. But that's why defy 282 00:13:43,880 --> 00:13:46,800 Speaker 1: as a scam, Defy standing for decentralized finance, which is 283 00:13:46,840 --> 00:13:49,839 Speaker 1: what this was doing. All right, You should never loan 284 00:13:49,920 --> 00:13:51,760 Speaker 1: your money to somebody you don't know, and I would 285 00:13:51,760 --> 00:13:54,280 Speaker 1: never expect somebody. I wouldn't even want someone I don't 286 00:13:54,320 --> 00:13:56,520 Speaker 1: know to lend me money. Um, if I'm going to 287 00:13:56,559 --> 00:13:59,200 Speaker 1: buy a car or house, I want the bank to 288 00:13:59,320 --> 00:14:01,640 Speaker 1: determine my credit worthiness and give me a different rate 289 00:14:01,679 --> 00:14:03,360 Speaker 1: than you may get based off of how good my 290 00:14:03,440 --> 00:14:05,120 Speaker 1: credit is. And and if I'm gonna loan money to 291 00:14:05,160 --> 00:14:07,080 Speaker 1: someone else, I'm gonna do the same thing. It should 292 00:14:07,120 --> 00:14:09,920 Speaker 1: be done by a centralized entity, not a decentralized entity. 293 00:14:10,000 --> 00:14:12,520 Speaker 1: We have to overcollateralized loan. All that's good for is 294 00:14:12,600 --> 00:14:15,439 Speaker 1: d gen gamblers, which is exactly what this was. That's 295 00:14:15,480 --> 00:14:18,920 Speaker 1: first number thing. But so basically they're trying to um 296 00:14:19,000 --> 00:14:21,880 Speaker 1: somehow get me you know, five, six, seven, eight percent 297 00:14:22,000 --> 00:14:25,680 Speaker 1: interest in a world with no yield, so the bonds 298 00:14:25,720 --> 00:14:29,440 Speaker 1: pay zero pretty much. How are they able to pay six? Well, 299 00:14:29,840 --> 00:14:32,840 Speaker 1: they do that by going way out on the risk curve. 300 00:14:33,480 --> 00:14:35,960 Speaker 1: The more they're able to pay you, the more risk 301 00:14:36,040 --> 00:14:38,600 Speaker 1: they must be taking on. You know, the old saying, 302 00:14:38,720 --> 00:14:40,200 Speaker 1: if it's if, if, if it's too good to be 303 00:14:40,200 --> 00:14:42,040 Speaker 1: true sort of a thing. It's not necessarily the case. 304 00:14:42,200 --> 00:14:43,520 Speaker 1: But if they're able to pay that, how the heck 305 00:14:43,520 --> 00:14:45,000 Speaker 1: are they getting it? Are they going way out on 306 00:14:45,040 --> 00:14:48,440 Speaker 1: that risk curve? So, um, if they're doing that, do 307 00:14:48,520 --> 00:14:51,160 Speaker 1: they have a good risk management plan and have they 308 00:14:51,200 --> 00:14:54,040 Speaker 1: conveyed that to you? When I was in bitcoin Miami, 309 00:14:54,360 --> 00:14:56,880 Speaker 1: I met with one of the top people at Celsius, 310 00:14:56,880 --> 00:14:59,360 Speaker 1: I think it was the number two person, and I 311 00:14:59,440 --> 00:15:01,320 Speaker 1: explained to him and I said, look, I could never 312 00:15:01,600 --> 00:15:03,720 Speaker 1: I could never give you, um, you know, my bitcoin 313 00:15:03,760 --> 00:15:06,320 Speaker 1: and cryptos currency for yield because I don't know what 314 00:15:06,440 --> 00:15:09,600 Speaker 1: the risk tolerance is with you. And I think that 315 00:15:09,640 --> 00:15:12,240 Speaker 1: if you guys were much more transparent about it, and 316 00:15:12,280 --> 00:15:14,520 Speaker 1: you would explain to people what you were doing and 317 00:15:14,520 --> 00:15:17,800 Speaker 1: show some transparency, then I could. Then you would give 318 00:15:17,800 --> 00:15:20,240 Speaker 1: me your risk maent plent, I could quantify that and 319 00:15:20,280 --> 00:15:22,120 Speaker 1: then I can decide intelligently if I want to give 320 00:15:22,120 --> 00:15:24,520 Speaker 1: you money or not, and what my risk profile is, 321 00:15:24,560 --> 00:15:27,200 Speaker 1: so I know how much of my portfolio I would 322 00:15:27,200 --> 00:15:29,760 Speaker 1: want to give to you. Um. So far they didn't 323 00:15:29,760 --> 00:15:32,360 Speaker 1: take me up on that, but that's what I told them. 324 00:15:32,480 --> 00:15:35,040 Speaker 1: And what we can see is that they were making 325 00:15:35,160 --> 00:15:37,840 Speaker 1: very risky bets and so we saw that in last 326 00:15:37,840 --> 00:15:40,880 Speaker 1: December they admitted losses related to a hundred million dollar 327 00:15:41,000 --> 00:15:44,800 Speaker 1: hundred twenty million dollar badger Dow hack. Now you may 328 00:15:44,840 --> 00:15:47,000 Speaker 1: be asking, what the heck is a badger Dow hack, 329 00:15:47,160 --> 00:15:51,000 Speaker 1: and I would say, exactly, I know what it is. 330 00:15:51,200 --> 00:15:53,440 Speaker 1: It's a it's it's a it's a dow that they 331 00:15:53,560 --> 00:15:55,920 Speaker 1: someone tried to create a called the badger dow um. 332 00:15:55,960 --> 00:15:58,920 Speaker 1: A dow is a decentralized autonomous organization which is a 333 00:15:58,920 --> 00:16:01,520 Speaker 1: bunch of mambo jumbo um and it's badged out. It 334 00:16:01,560 --> 00:16:04,080 Speaker 1: was it was, it was brand new, it was super tiny, 335 00:16:04,160 --> 00:16:08,160 Speaker 1: super risky. What the heck were they doing investing into 336 00:16:08,200 --> 00:16:11,320 Speaker 1: those types of projects with other people's with users funds, 337 00:16:11,760 --> 00:16:15,040 Speaker 1: especially without disclosing that type of risk. Now, the converse 338 00:16:15,040 --> 00:16:17,960 Speaker 1: would also be true if you've loaned money to Celsius, 339 00:16:18,480 --> 00:16:20,760 Speaker 1: wouldn't you want to be paying attention to what the 340 00:16:20,760 --> 00:16:23,920 Speaker 1: heck they're doing with the money. You should be, And 341 00:16:23,960 --> 00:16:25,440 Speaker 1: so you should have seen that and go and shoot, 342 00:16:25,480 --> 00:16:27,720 Speaker 1: they're doing some really risky things. I wonder if I 343 00:16:27,720 --> 00:16:29,880 Speaker 1: can trust that. And then last month with this Tara 344 00:16:30,120 --> 00:16:35,080 Speaker 1: Tara fiasco, um Celsius pulled off at least half a 345 00:16:35,200 --> 00:16:39,440 Speaker 1: billion dollars out of this Terra Luna the Inchor protocol 346 00:16:40,040 --> 00:16:43,640 Speaker 1: right before it crashed. So was that good risk management 347 00:16:43,680 --> 00:16:46,680 Speaker 1: or were they just lucky? Either way, what that tells 348 00:16:46,680 --> 00:16:49,360 Speaker 1: me and you is that, shoot, they're taking a lot 349 00:16:49,400 --> 00:16:51,840 Speaker 1: of risk and we barely got out with our skin 350 00:16:52,040 --> 00:16:54,680 Speaker 1: on our skin, of our teeth, and so we should 351 00:16:54,680 --> 00:16:55,920 Speaker 1: have seen that. All right, So this is what's going 352 00:16:55,960 --> 00:16:57,960 Speaker 1: on now. I want to finish explaining what's going on 353 00:16:58,000 --> 00:17:00,200 Speaker 1: with Celsius so we can learn from this, and then 354 00:17:00,200 --> 00:17:02,840 Speaker 1: I'm gonna tell you about the other two or three 355 00:17:02,960 --> 00:17:05,040 Speaker 1: big bombs that are about to crash, and whether you 356 00:17:05,160 --> 00:17:08,239 Speaker 1: have money in these or not, it's affecting you. This 357 00:17:08,320 --> 00:17:12,120 Speaker 1: is why cryptocurrencies are crashing, and I want to warn 358 00:17:12,160 --> 00:17:14,080 Speaker 1: you before it's too late, like I tried to warn 359 00:17:14,119 --> 00:17:16,720 Speaker 1: you before these things went down, and like I said, 360 00:17:16,760 --> 00:17:18,360 Speaker 1: it's a good learning moment. I'll be back with that 361 00:17:18,680 --> 00:17:20,000 Speaker 1: and more in a minute. By the way, you're listening 362 00:17:20,040 --> 00:17:22,880 Speaker 1: to the Mark Moa show. We're talking about the decentralized Revolution, 363 00:17:22,880 --> 00:17:26,480 Speaker 1: talking about bitcoin, cryptocurrencies, looking at through the lens of politics, finance, 364 00:17:26,520 --> 00:17:30,440 Speaker 1: and technology, and right now we're having a teaching moment, 365 00:17:30,480 --> 00:17:32,840 Speaker 1: a learning moment. Hopefully you can learn from this, and 366 00:17:32,840 --> 00:17:34,439 Speaker 1: I'm gonna warn you on what's coming up next. So 367 00:17:34,520 --> 00:17:37,760 Speaker 1: don't go away. I'm gonna be right back, all right, 368 00:17:37,760 --> 00:17:39,800 Speaker 1: Welcome back here, listening to the Mark Moa Show. And 369 00:17:39,840 --> 00:17:43,400 Speaker 1: we're talking about the decentralized revolution each and every week, 370 00:17:44,160 --> 00:17:47,439 Speaker 1: talking about bitcoin, talking about cryptocurrencies and looking at it 371 00:17:47,440 --> 00:17:49,840 Speaker 1: through the lens, the macro lens of what's going on 372 00:17:49,840 --> 00:17:52,239 Speaker 1: in the world. Now, we've been talking about what's going 373 00:17:52,320 --> 00:17:55,000 Speaker 1: on in the crypto space right now that's dragging Bitcoin, 374 00:17:55,040 --> 00:17:59,240 Speaker 1: ethereum and all the other cryptocurrencies down. And it's like 375 00:17:59,280 --> 00:18:00,960 Speaker 1: a domino ef act right now. I talked to you 376 00:18:00,960 --> 00:18:02,600 Speaker 1: a couple of weeks ago about this terroa Luna thing, 377 00:18:02,680 --> 00:18:05,359 Speaker 1: and I warned you that that the next Almano would drop, 378 00:18:05,359 --> 00:18:07,280 Speaker 1: and here we are at it right now, and there's 379 00:18:07,320 --> 00:18:09,560 Speaker 1: more coming. So I was just before they break talking 380 00:18:09,600 --> 00:18:13,399 Speaker 1: about Celsias specifically, they locked withdrawals this week. There's a 381 00:18:13,520 --> 00:18:15,280 Speaker 1: chance you might get some of your money out, but 382 00:18:15,320 --> 00:18:17,240 Speaker 1: I wouldn't I wouldn't count on. I wouldn't be holding 383 00:18:17,280 --> 00:18:20,600 Speaker 1: your breath. But we'll see. Let's let's let's remain hopeful 384 00:18:20,640 --> 00:18:21,960 Speaker 1: if you've got money in there. But we're trying to 385 00:18:22,080 --> 00:18:23,840 Speaker 1: learn from this, and what we can see is that 386 00:18:23,880 --> 00:18:26,280 Speaker 1: Celsius was doing some very very risky things. And if 387 00:18:26,280 --> 00:18:27,919 Speaker 1: you had money there, you should have known about that. 388 00:18:28,000 --> 00:18:29,880 Speaker 1: And if you didn't know about that, you weren't paying attention. 389 00:18:30,280 --> 00:18:33,480 Speaker 1: And so hey, look, don't get down on yourself. Don't 390 00:18:33,640 --> 00:18:36,080 Speaker 1: let it happen again, all right, So let's keep going 391 00:18:36,080 --> 00:18:39,920 Speaker 1: down this road. UM and so UM. Basically we saw 392 00:18:39,920 --> 00:18:41,800 Speaker 1: they were doing these risky things. They barely got out 393 00:18:41,800 --> 00:18:43,600 Speaker 1: of the Terra Luna by the skin of their teeth. 394 00:18:43,840 --> 00:18:46,520 Speaker 1: But now they've also been in Um putting their money 395 00:18:46,520 --> 00:18:49,560 Speaker 1: into something to their money, they've been putting their customer 396 00:18:49,640 --> 00:18:53,080 Speaker 1: funds into something called staked Eath or it's known as 397 00:18:53,359 --> 00:18:58,240 Speaker 1: STAT and it's another synthetic coin that's supposed to be 398 00:18:58,320 --> 00:19:02,200 Speaker 1: pegged the original e Um, which means, you know, more 399 00:19:02,320 --> 00:19:06,720 Speaker 1: risk um. And it's also very ill liquid, which means 400 00:19:06,800 --> 00:19:09,000 Speaker 1: their money is locked up and they can't get their 401 00:19:09,000 --> 00:19:12,040 Speaker 1: money out of it. Now. Apparently Celsius holds another half 402 00:19:12,800 --> 00:19:18,320 Speaker 1: billion dollars worth of this, And it's especially concerning because 403 00:19:18,480 --> 00:19:21,040 Speaker 1: Ethereum is supposed to have this merge going on, and 404 00:19:21,080 --> 00:19:24,159 Speaker 1: it just keeps getting delayed and delayed and delayed, and 405 00:19:24,240 --> 00:19:27,560 Speaker 1: so depend on what happened with that. We could see 406 00:19:27,680 --> 00:19:31,640 Speaker 1: this continuing this peg continue to break, potentially becoming unpegged 407 00:19:31,640 --> 00:19:34,480 Speaker 1: like we saw with with Tera Luna, which means Celsius 408 00:19:34,520 --> 00:19:37,679 Speaker 1: could lose another half a billion dollars. Celsius also had 409 00:19:37,680 --> 00:19:41,120 Speaker 1: their own token called to Sell Token, which also crashed. 410 00:19:42,000 --> 00:19:45,119 Speaker 1: We saw it go from uh you know, basically just 411 00:19:45,160 --> 00:19:48,800 Speaker 1: become worthless overnight. And so once these things start going, 412 00:19:48,920 --> 00:19:54,480 Speaker 1: they start going really fast. Everything works until it doesn't. 413 00:19:55,280 --> 00:19:57,720 Speaker 1: That's what I always say, It works until it doesn't. 414 00:19:58,000 --> 00:20:00,080 Speaker 1: And that's basically what we're looking at all. Right, So 415 00:20:00,720 --> 00:20:06,520 Speaker 1: what comes next? So Celsius had massive exposure to um Luna. 416 00:20:06,600 --> 00:20:09,880 Speaker 1: Who else had a massive exposure to Luna and who 417 00:20:09,920 --> 00:20:13,359 Speaker 1: has exposure to Celsius. Like I said right off the bat, 418 00:20:14,240 --> 00:20:17,000 Speaker 1: Celsius is causing the whole market to draw down because 419 00:20:17,040 --> 00:20:20,840 Speaker 1: they're liquidating as much as they can, trying to um 420 00:20:21,000 --> 00:20:23,280 Speaker 1: post more collateral. And this is what happens in the 421 00:20:23,320 --> 00:20:25,760 Speaker 1: liquidation event, not different than the stock market. When the 422 00:20:25,800 --> 00:20:28,920 Speaker 1: stock market crashes, it continues to crash even faster because 423 00:20:29,080 --> 00:20:31,720 Speaker 1: people are trying to cover their margins and then leverage 424 00:20:31,720 --> 00:20:35,040 Speaker 1: on their stocks. That is why stocks fall really fast. Um. 425 00:20:35,440 --> 00:20:37,720 Speaker 1: And then you'll also see, you know, when the stock 426 00:20:37,720 --> 00:20:40,800 Speaker 1: market crashes like say two eight the stock market crash, 427 00:20:40,880 --> 00:20:45,800 Speaker 1: the SMP dropped about and gold drop, Now why would 428 00:20:45,800 --> 00:20:47,960 Speaker 1: gold drop? Shouldn't gold be going up during that time? 429 00:20:48,000 --> 00:20:50,280 Speaker 1: And the reason why it's because of a liquidity event. 430 00:20:50,720 --> 00:20:55,000 Speaker 1: When they start crashing. Everybody's selling anything they can to 431 00:20:55,080 --> 00:20:59,360 Speaker 1: get money to cover that leverage position, which is exactly, um, 432 00:20:59,359 --> 00:21:01,680 Speaker 1: what happened back in the stock market. That's exactly what's 433 00:21:01,680 --> 00:21:03,280 Speaker 1: happened now. So it brings the whole thing down. So 434 00:21:03,359 --> 00:21:06,320 Speaker 1: whether you you only hold bitcoin and it's in your 435 00:21:06,359 --> 00:21:09,000 Speaker 1: cold storage, or whether you're playing with all these things, 436 00:21:09,040 --> 00:21:12,080 Speaker 1: we're all being affected by this, which I'm not super 437 00:21:12,119 --> 00:21:16,640 Speaker 1: happy on. Now, somebody might just say, well, shoot, shouldn't 438 00:21:16,640 --> 00:21:20,199 Speaker 1: we pass some laws that prohibit this from happening? Um, 439 00:21:20,240 --> 00:21:22,879 Speaker 1: shouldn't we pass a law that says, uh, you know, 440 00:21:22,920 --> 00:21:25,000 Speaker 1: these Wall Street raiders aren't allowed to short the heck 441 00:21:25,000 --> 00:21:27,119 Speaker 1: out of these things. Shouldn't we pass a law that 442 00:21:27,240 --> 00:21:30,000 Speaker 1: prevents you know whatever? And And my answer is no. 443 00:21:30,520 --> 00:21:32,840 Speaker 1: My answer is no. Now I'm affected just like a 444 00:21:32,880 --> 00:21:34,919 Speaker 1: lot of other people, but I would still say no. 445 00:21:35,040 --> 00:21:38,040 Speaker 1: And the reason why is I believe in free markets. 446 00:21:38,720 --> 00:21:40,840 Speaker 1: And if somebody wants to post a risky trade, then 447 00:21:40,880 --> 00:21:42,679 Speaker 1: somebody has to take the other side of it. That's 448 00:21:42,680 --> 00:21:45,320 Speaker 1: how trade works. The trade doesn't happen unless there's two 449 00:21:45,440 --> 00:21:50,600 Speaker 1: willing people involved. Otherwise it's a trade. And so in 450 00:21:50,680 --> 00:21:53,639 Speaker 1: a in a free market, both people believe they're getting 451 00:21:53,640 --> 00:21:56,040 Speaker 1: the better end of the deal. Otherwise there would be 452 00:21:56,040 --> 00:21:59,159 Speaker 1: no deal. And so somebody is willing to take that 453 00:21:59,320 --> 00:22:02,680 Speaker 1: risk for the potential reward, and this person is willing 454 00:22:02,680 --> 00:22:05,480 Speaker 1: to pay a potential reward for that person taking the risk. 455 00:22:06,560 --> 00:22:09,280 Speaker 1: Now other people get involved and they start betting on 456 00:22:09,359 --> 00:22:12,640 Speaker 1: those two players, and then they're taking risk, and everybody's 457 00:22:12,680 --> 00:22:16,119 Speaker 1: taking risk. And in a free market, that's just what happens. 458 00:22:16,640 --> 00:22:18,399 Speaker 1: Um it's up to it's up to everybody to be 459 00:22:18,480 --> 00:22:21,680 Speaker 1: educated on their own. The bigger problem, though, is we're 460 00:22:21,760 --> 00:22:24,159 Speaker 1: in an environment that allows us to happen in the 461 00:22:24,160 --> 00:22:26,320 Speaker 1: first place, not because it's allowed legally or from a 462 00:22:26,359 --> 00:22:30,800 Speaker 1: regulatory standpoint, because of the fake Fiat monetary system that 463 00:22:30,960 --> 00:22:35,080 Speaker 1: just pumped eight trillion dollars into the ecosystem over the 464 00:22:35,119 --> 00:22:38,280 Speaker 1: last twenty four months and basically and something called that 465 00:22:38,440 --> 00:22:41,040 Speaker 1: cantel On effect. Go ahead and google that if you want, 466 00:22:41,240 --> 00:22:43,359 Speaker 1: and it says that the people that are closest to 467 00:22:43,400 --> 00:22:47,080 Speaker 1: the money supply have the first advantage because they get 468 00:22:47,119 --> 00:22:48,719 Speaker 1: the money first for the cheapest price, and then they 469 00:22:48,760 --> 00:22:50,919 Speaker 1: start pushing it up as it goes down. So the 470 00:22:50,960 --> 00:22:53,800 Speaker 1: hedge funds, the banks, they get the money first for 471 00:22:53,920 --> 00:22:57,640 Speaker 1: basically free. You and I, we don't get any money, 472 00:22:57,640 --> 00:22:59,399 Speaker 1: and we certainly don't get it for free if we 473 00:22:59,480 --> 00:23:02,600 Speaker 1: do get it, and so they're getting they're getting billions 474 00:23:02,640 --> 00:23:06,040 Speaker 1: of dollars for basically free, and then they're using that 475 00:23:06,320 --> 00:23:09,119 Speaker 1: to manipulate markets, like, for example, buying up all the 476 00:23:09,119 --> 00:23:11,840 Speaker 1: single family homes in the United States. Now they're paying 477 00:23:11,960 --> 00:23:16,359 Speaker 1: thirty over asking price. You and I can't do that 478 00:23:16,440 --> 00:23:19,360 Speaker 1: because we have to pay well now interest rates six. 479 00:23:20,600 --> 00:23:22,720 Speaker 1: But they got the money for free, so they can 480 00:23:22,720 --> 00:23:24,199 Speaker 1: afford to pay more for the house because they're not 481 00:23:24,200 --> 00:23:27,240 Speaker 1: paying for the money. And they're also using that money 482 00:23:27,320 --> 00:23:30,480 Speaker 1: to take out these crypto positions and so forth. And 483 00:23:30,520 --> 00:23:33,919 Speaker 1: so the problem is that we need to take away 484 00:23:33,960 --> 00:23:37,040 Speaker 1: the money printer that prints all this money, that gives 485 00:23:37,040 --> 00:23:39,359 Speaker 1: it to them to then weaponize it against us. We 486 00:23:39,400 --> 00:23:42,160 Speaker 1: don't need to pass laws to prohibit people doing stuff 487 00:23:42,160 --> 00:23:44,080 Speaker 1: with their money. We need to pass a law, or 488 00:23:44,160 --> 00:23:46,240 Speaker 1: not even pass a law, but just take away the 489 00:23:46,280 --> 00:23:49,240 Speaker 1: ability to print this money and gift everybody. All Right, 490 00:23:49,760 --> 00:23:55,800 Speaker 1: So what's the next bomb that's about to drop? Well, 491 00:23:55,880 --> 00:24:01,359 Speaker 1: let's see what do we got. We have the st H. 492 00:24:01,520 --> 00:24:04,359 Speaker 1: That's a big problem. Like I said, this is this, uh, 493 00:24:04,560 --> 00:24:09,760 Speaker 1: this is this new synthetic pegged version to ethereum and 494 00:24:09,920 --> 00:24:12,800 Speaker 1: uh it's something that we can learn about ill liquidity. 495 00:24:12,880 --> 00:24:16,040 Speaker 1: Right obviously you know it involves Celsius. Like I said, 496 00:24:16,080 --> 00:24:19,800 Speaker 1: they have about half a billion dollars in there um 497 00:24:19,800 --> 00:24:22,680 Speaker 1: and a lot of it is in this this st 498 00:24:23,359 --> 00:24:26,640 Speaker 1: H right now. Um, Celsius is, like I said, caught 499 00:24:26,720 --> 00:24:29,000 Speaker 1: with us because it's a liquid and they've been paying 500 00:24:29,040 --> 00:24:31,600 Speaker 1: down this debt which has been helping. It's pretty good. 501 00:24:32,800 --> 00:24:35,240 Speaker 1: But a lot of it is caught in that. And 502 00:24:35,280 --> 00:24:38,439 Speaker 1: when that blows up, who else is holding that? And 503 00:24:38,520 --> 00:24:43,640 Speaker 1: that's something that we have to figure out. Um. And 504 00:24:44,040 --> 00:24:47,520 Speaker 1: it looks like that next player, that next one to 505 00:24:47,720 --> 00:24:51,359 Speaker 1: drop could be something called three a C if you 506 00:24:51,440 --> 00:24:54,160 Speaker 1: ever heard of That stands for three Arrows Capital. Now, 507 00:24:54,160 --> 00:24:57,360 Speaker 1: three Arrows Capital wasn't really a crypto firm as far 508 00:24:57,400 --> 00:24:59,600 Speaker 1: as I As far as I know, I believe there 509 00:24:59,640 --> 00:25:01,600 Speaker 1: are more of like an FX trading, which is like 510 00:25:01,600 --> 00:25:05,879 Speaker 1: a foreign currency reserved trader um, and they've been trading 511 00:25:05,880 --> 00:25:08,080 Speaker 1: in that and they figured, hey, we'll take our you know, 512 00:25:08,240 --> 00:25:10,200 Speaker 1: we'll take our chances in the crypto market as well, 513 00:25:10,359 --> 00:25:12,880 Speaker 1: and they have and and apparently done really well. Now. 514 00:25:13,359 --> 00:25:15,400 Speaker 1: Warren Buffett, famous who said I believe it was warm. 515 00:25:15,440 --> 00:25:20,680 Speaker 1: Bufett says that all a rising tide rises all boats. 516 00:25:21,280 --> 00:25:23,400 Speaker 1: But when the tide goes out, we see who's been 517 00:25:23,440 --> 00:25:27,439 Speaker 1: swimming naked, and so that's exactly what's going on here, 518 00:25:27,600 --> 00:25:31,560 Speaker 1: rising tide rising all boats. Now, Um, since we've been 519 00:25:31,560 --> 00:25:34,960 Speaker 1: in this long bowl market with trillions of dollars slashing around, 520 00:25:35,240 --> 00:25:37,920 Speaker 1: everything's going up. Everybody looks like a genius. And Three 521 00:25:38,000 --> 00:25:40,920 Speaker 1: Arrows Capital has done really, really, really well. The problem 522 00:25:41,000 --> 00:25:43,560 Speaker 1: is with all these leverage positions that allow them to 523 00:25:43,560 --> 00:25:46,399 Speaker 1: grow really fast, when it works against you, the leverage 524 00:25:46,440 --> 00:25:48,960 Speaker 1: also tears you down really fast, and that is part 525 00:25:49,000 --> 00:25:52,160 Speaker 1: of the problem that we have. Now Three Arrows Capital 526 00:25:52,880 --> 00:25:56,919 Speaker 1: UM looks like they're going down. Now. It hasn't been 527 00:25:56,960 --> 00:25:59,439 Speaker 1: a formal announcement, but per the chatter I see on 528 00:25:59,440 --> 00:26:03,080 Speaker 1: the street, UM, they have basically been ghosting everybody. They're 529 00:26:03,080 --> 00:26:05,760 Speaker 1: not putting out any releases. UM traders that they work 530 00:26:05,800 --> 00:26:08,120 Speaker 1: with are reporting their credit lines being shut down, their 531 00:26:08,119 --> 00:26:12,520 Speaker 1: funds being taken, and this is monumental. If they collapse, 532 00:26:12,640 --> 00:26:16,800 Speaker 1: this will be monumental because they borrow from every single 533 00:26:17,040 --> 00:26:23,880 Speaker 1: major lender. So the other ones I already mentioned Block five, NEXTO, Celsius, Genesis, etcetera. 534 00:26:23,920 --> 00:26:25,560 Speaker 1: So as I said, right, I was supposed to give 535 00:26:25,560 --> 00:26:28,240 Speaker 1: my money to block find, next, Um, whatever, Celsius, and 536 00:26:28,280 --> 00:26:30,680 Speaker 1: they were supposed to loan it back out again to 537 00:26:30,920 --> 00:26:36,080 Speaker 1: traders who are overcollateralized traders like Three Arrows Capital, and 538 00:26:36,119 --> 00:26:38,159 Speaker 1: so they've been borrowing from all these people. So if 539 00:26:38,200 --> 00:26:41,880 Speaker 1: they're going down, if they're a liquid, then who has exposure? 540 00:26:42,359 --> 00:26:44,439 Speaker 1: I want to tell you who has exposure. I want 541 00:26:44,480 --> 00:26:46,640 Speaker 1: to tell you the dollar amounts and you will be 542 00:26:46,680 --> 00:26:50,600 Speaker 1: blown away. And then when I come back, um UM 543 00:26:50,640 --> 00:26:53,919 Speaker 1: show you UM some perspective to maybe make this not 544 00:26:54,040 --> 00:26:56,200 Speaker 1: look so bad. You listen to the Markma Show. We're 545 00:26:56,200 --> 00:26:59,800 Speaker 1: talking about the cryptocurrency market crash. We're talking about the 546 00:26:59,880 --> 00:27:04,080 Speaker 1: the centralized revolution of course bitcoin, UM and more. UM 547 00:27:04,160 --> 00:27:06,760 Speaker 1: I'm gonna talk about the bombs that are about to drop, 548 00:27:07,440 --> 00:27:09,520 Speaker 1: So don't go away. I'll be right back, all right, 549 00:27:09,560 --> 00:27:11,840 Speaker 1: welcome back. You are listening to the Markma Show. We're 550 00:27:11,840 --> 00:27:15,680 Speaker 1: talking about the decentralized Revolution. We are talking about bitcoin. 551 00:27:15,960 --> 00:27:18,840 Speaker 1: We're talking about the cryptocurrency blood bath that's been a 552 00:27:18,880 --> 00:27:21,800 Speaker 1: domino effect. As I talked to warned you about a 553 00:27:21,840 --> 00:27:24,920 Speaker 1: couple of weeks ago, starting with Terror Luna and now 554 00:27:25,000 --> 00:27:28,160 Speaker 1: the contagion. We call that the contagion is spreading and 555 00:27:28,200 --> 00:27:33,000 Speaker 1: we see it spreading into another one called Celsius, who 556 00:27:33,080 --> 00:27:37,439 Speaker 1: has now suspended all withdraws. UM. I said, there's some hope, 557 00:27:37,480 --> 00:27:39,800 Speaker 1: it's there's there's hope, there's maybe some money coming back. 558 00:27:39,840 --> 00:27:42,800 Speaker 1: We don't know. Don't hold your breath, but potentially, um. 559 00:27:42,840 --> 00:27:45,320 Speaker 1: But now it's spreading. And I was talking about Three 560 00:27:45,520 --> 00:27:48,720 Speaker 1: Arrows Capital. Now three hours Capital was borrowing money from 561 00:27:48,720 --> 00:27:50,280 Speaker 1: a lot of people. Know, we don't know exactly. So 562 00:27:50,480 --> 00:27:52,200 Speaker 1: some of this is speculation. I'm not trying to spread 563 00:27:52,240 --> 00:27:54,679 Speaker 1: any fud. But there's some things we do know for 564 00:27:54,720 --> 00:27:57,679 Speaker 1: sure and something that we don't. So for example, the 565 00:27:57,800 --> 00:28:02,240 Speaker 1: last public number for three Air Capital assets was about 566 00:28:02,280 --> 00:28:06,320 Speaker 1: twenty billion dollars. Okay, so we do know that. UM. 567 00:28:06,440 --> 00:28:09,760 Speaker 1: Now we don't know what they're real nav net net 568 00:28:09,800 --> 00:28:13,840 Speaker 1: assets value. We don't know what that is. UM Rumors 569 00:28:13,840 --> 00:28:16,720 Speaker 1: are that they might have been losing some but we 570 00:28:16,760 --> 00:28:20,000 Speaker 1: know the last time it was it was about eighteen billions. 571 00:28:20,080 --> 00:28:22,240 Speaker 1: We know that, we know they were borrowing from most 572 00:28:22,280 --> 00:28:24,960 Speaker 1: of these major lenders. We don't know exactly who, We 573 00:28:25,000 --> 00:28:27,920 Speaker 1: don't know exact amounts, but the major lenders are um 574 00:28:28,119 --> 00:28:31,280 Speaker 1: Celsius who were talking about Nexo UM Block five and 575 00:28:31,400 --> 00:28:35,080 Speaker 1: Genesis which is a backslow these as well. All right, 576 00:28:35,160 --> 00:28:37,840 Speaker 1: so that's some of it. Now, if we look at 577 00:28:37,880 --> 00:28:42,200 Speaker 1: this eighteen billion UM, it's a big number, it's a 578 00:28:42,240 --> 00:28:47,840 Speaker 1: real big number. And if they go down, then it 579 00:28:47,880 --> 00:28:51,840 Speaker 1: continues to spread. So now UM again not trying to 580 00:28:51,840 --> 00:28:54,360 Speaker 1: spread food on these companies. Fund means fear in certainly 581 00:28:54,360 --> 00:28:58,400 Speaker 1: in doubt. But if they are if they've loaned money 582 00:28:58,440 --> 00:29:00,520 Speaker 1: to three arras capital and they show that on their 583 00:29:00,520 --> 00:29:02,720 Speaker 1: balance sheet like oh we have you know, five billion 584 00:29:02,760 --> 00:29:06,320 Speaker 1: dollars on our balance sheet, then their balance sheet looks strong, 585 00:29:06,360 --> 00:29:09,920 Speaker 1: which allows them to back their leverage positions that they 586 00:29:09,960 --> 00:29:13,200 Speaker 1: have collateral to back their positions. But if three years 587 00:29:13,200 --> 00:29:17,160 Speaker 1: capital goes down, that potentially what let's call it hypothetically 588 00:29:17,200 --> 00:29:20,600 Speaker 1: five billion is gone and now all of a sudden, 589 00:29:20,640 --> 00:29:23,840 Speaker 1: without that five billion. They don't have the backing to 590 00:29:24,080 --> 00:29:28,720 Speaker 1: back um the leverage that they have in the system. 591 00:29:28,760 --> 00:29:33,440 Speaker 1: That's how this works, all right, So um, these lenders 592 00:29:33,440 --> 00:29:35,840 Speaker 1: aren't prepared for this, and then the next one goes down, 593 00:29:35,920 --> 00:29:38,320 Speaker 1: which then drags the next one down, now twenty billion dollars. 594 00:29:38,320 --> 00:29:40,200 Speaker 1: It's also rumored that a lot of Wall Street hedge 595 00:29:40,240 --> 00:29:44,719 Speaker 1: funds also have money in this as well, which UM 596 00:29:45,080 --> 00:29:47,680 Speaker 1: I wouldn't doubt. So then it starts spreading to Wall Street. 597 00:29:47,760 --> 00:29:50,640 Speaker 1: Now Wall Street at least has you know, the FED 598 00:29:51,040 --> 00:29:52,920 Speaker 1: that has their back. The FED is the lender of 599 00:29:53,000 --> 00:29:55,600 Speaker 1: last resort. They're there to make sure banks are backstopped, 600 00:29:55,600 --> 00:29:57,760 Speaker 1: meaning don't go bankrupt, which we saw, you know in 601 00:29:57,760 --> 00:29:59,920 Speaker 1: two the too Big to fail. But Krypto has no 602 00:30:00,040 --> 00:30:02,360 Speaker 1: of that. Crypto has none of that. It's going to 603 00:30:02,480 --> 00:30:06,080 Speaker 1: go down and no one's gonna come to save it. Now. 604 00:30:08,760 --> 00:30:11,480 Speaker 1: Part of this is uh. Part of this is uh. 605 00:30:11,520 --> 00:30:13,480 Speaker 1: You know, it's part of the financial markets that we're 606 00:30:13,480 --> 00:30:15,840 Speaker 1: going through. Like I said, we're shifting from this long 607 00:30:15,960 --> 00:30:17,840 Speaker 1: term bowl market of prices going up and now we're 608 00:30:17,840 --> 00:30:20,760 Speaker 1: potentially shifted into a long term secular bear market, meaning 609 00:30:20,760 --> 00:30:22,520 Speaker 1: we could see prices going down for a long time. 610 00:30:23,000 --> 00:30:25,120 Speaker 1: That's the way I'm leaning right now. I'm not trying 611 00:30:25,120 --> 00:30:27,040 Speaker 1: to make a long term prediction, but that's way I'm leaning. 612 00:30:27,040 --> 00:30:29,000 Speaker 1: But at the same time, as we're seeing the financial 613 00:30:29,000 --> 00:30:31,600 Speaker 1: markets rotate, we're also seeing the birth of a new 614 00:30:31,640 --> 00:30:34,760 Speaker 1: technology in a new industry. Um. There is an article 615 00:30:34,800 --> 00:30:37,440 Speaker 1: that came out this week on market Watches says, uh, 616 00:30:37,560 --> 00:30:40,520 Speaker 1: why is cryptocrashing? Mark Cuban says that crypto was going 617 00:30:40,560 --> 00:30:43,880 Speaker 1: through the lull that the Internet went through. So Mark 618 00:30:43,920 --> 00:30:48,560 Speaker 1: Cuban Shark Tank, owner of the Mavericks, outspoken investor, et cetera. 619 00:30:49,000 --> 00:30:51,880 Speaker 1: Of course he got rich in the early days of 620 00:30:51,960 --> 00:30:54,040 Speaker 1: the Internet. He started Internet company, sold it off for 621 00:30:54,120 --> 00:30:57,160 Speaker 1: whatever billion, a couple of billion dollars, and so he 622 00:30:57,200 --> 00:31:00,520 Speaker 1: knows about these market cycles and he says it's it's 623 00:31:00,560 --> 00:31:04,600 Speaker 1: it's like the lull in the Internet. So I think, uh, 624 00:31:04,800 --> 00:31:08,480 Speaker 1: two thousand, so from the first first public company went 625 00:31:08,520 --> 00:31:11,520 Speaker 1: public and then uh it brought all the money in, 626 00:31:11,720 --> 00:31:13,880 Speaker 1: and then the vcs pumped it up through I p 627 00:31:13,960 --> 00:31:17,880 Speaker 1: O s from sight and by the year two thousand, 628 00:31:17,960 --> 00:31:20,080 Speaker 1: anything with the dot com on its name was going 629 00:31:20,160 --> 00:31:23,640 Speaker 1: for lots of money. Like Mark Cuban made Amazon, pumped 630 00:31:23,680 --> 00:31:26,680 Speaker 1: from five dollars to eighty dollars. It was insane. But 631 00:31:26,720 --> 00:31:29,840 Speaker 1: then the crash, the dot com crash two thousand, Amazon 632 00:31:29,920 --> 00:31:32,200 Speaker 1: dropped from five, went from five to eighty and all 633 00:31:32,280 --> 00:31:36,520 Speaker 1: the way back down to five. But it came back. 634 00:31:36,600 --> 00:31:39,080 Speaker 1: That's the lull that he's talking about. It came back. 635 00:31:39,120 --> 00:31:41,120 Speaker 1: And he thinks that cryptocurrency is in the same downtrend 636 00:31:41,400 --> 00:31:44,440 Speaker 1: the Internet and Tech company saw in their early two thousands. 637 00:31:44,560 --> 00:31:49,440 Speaker 1: Um and uh. He said that crypto was going through 638 00:31:49,440 --> 00:31:52,160 Speaker 1: the lull that the Internet went through, and and he 639 00:31:52,200 --> 00:31:54,600 Speaker 1: compares it, which I think is is a good bet. 640 00:31:54,640 --> 00:31:56,840 Speaker 1: But I think if you look at that, you'll realize 641 00:31:56,840 --> 00:31:59,520 Speaker 1: that in two thousand, when that Internet lull that he 642 00:31:59,560 --> 00:32:02,680 Speaker 1: calls it happened, most of the most of the dot 643 00:32:02,720 --> 00:32:05,320 Speaker 1: com companies never made it past that. As a matter 644 00:32:05,360 --> 00:32:11,040 Speaker 1: of fact, most of the big Internet companies today Facebook, Um, Twitter, Instagram, 645 00:32:11,440 --> 00:32:14,160 Speaker 1: they didn't come around and tell the mid to mid 646 00:32:14,200 --> 00:32:16,920 Speaker 1: to late two thousand's, and so if you were trying 647 00:32:17,000 --> 00:32:20,920 Speaker 1: to pick the winners in the new Internet age thousand, 648 00:32:21,640 --> 00:32:24,320 Speaker 1: they weren't around. Amazon made it, sure, but most of 649 00:32:24,320 --> 00:32:28,160 Speaker 1: them didn't A O L, Netscape, etcetera. They didn't make it. 650 00:32:28,160 --> 00:32:30,280 Speaker 1: It was not until the late two thousand's that we 651 00:32:30,320 --> 00:32:34,320 Speaker 1: got the facebooks and the Instagrams and the twitters, etcetera. Okay, 652 00:32:34,920 --> 00:32:37,480 Speaker 1: but I think I think he's right. But are you 653 00:32:37,600 --> 00:32:40,320 Speaker 1: in Are you in the netscapes? Are you in the Amazon? 654 00:32:41,240 --> 00:32:45,800 Speaker 1: That is the question. Now again, it's not just um, 655 00:32:45,840 --> 00:32:50,880 Speaker 1: it's not just the Internet age that was like that. 656 00:32:50,920 --> 00:32:52,720 Speaker 1: As a matter of fact, anytime we have a new technology, 657 00:32:53,040 --> 00:32:55,360 Speaker 1: it's the same thing. We can go back to uh 658 00:32:55,600 --> 00:32:59,520 Speaker 1: eighteen seventeen, in the city of my Mannheim, Germany, there 659 00:32:59,600 --> 00:33:01,480 Speaker 1: was a low Will inventor by the name of Carl 660 00:33:01,600 --> 00:33:05,480 Speaker 1: von Dreys and the unveiled a brand new futuristic vision 661 00:33:05,560 --> 00:33:07,520 Speaker 1: that no one had ever seen before. He just enveiled 662 00:33:07,560 --> 00:33:11,040 Speaker 1: and developed it. It was called the luft machine or 663 00:33:11,160 --> 00:33:13,320 Speaker 1: a running machine in German. And I'm sorry if you 664 00:33:13,360 --> 00:33:15,840 Speaker 1: speak German, I probably butchered that really bad. But it 665 00:33:15,920 --> 00:33:19,160 Speaker 1: was basically what he invented was the world's first bicycle. 666 00:33:19,280 --> 00:33:20,680 Speaker 1: There were no pedals, there was no seats, there was 667 00:33:20,680 --> 00:33:22,560 Speaker 1: no chain to connect the wheels. The writer had to 668 00:33:22,600 --> 00:33:25,040 Speaker 1: basically had to propel it with his feet and then 669 00:33:25,080 --> 00:33:28,040 Speaker 1: balance on it with momentum, sort of like a scooter. Right. 670 00:33:28,920 --> 00:33:30,560 Speaker 1: It was It was super crude as you could imagine. 671 00:33:30,600 --> 00:33:34,520 Speaker 1: But it worked. But the but the reaction was instantly divisive. Right, 672 00:33:34,760 --> 00:33:36,840 Speaker 1: some people thought it was this it was significant. Oh 673 00:33:36,880 --> 00:33:39,200 Speaker 1: my gosh, look how how nice this is. Now he 674 00:33:39,240 --> 00:33:44,400 Speaker 1: can glide around. Right, But then several governments, including the 675 00:33:44,680 --> 00:33:47,520 Speaker 1: United Kingdom, the US and even Germany banned its use 676 00:33:47,960 --> 00:33:52,720 Speaker 1: for posing too much risk to pedestrians. Sound familiar. Nevertheless, 677 00:33:52,720 --> 00:33:55,160 Speaker 1: development of the bicycle persisted over the next several decades 678 00:33:55,440 --> 00:33:58,120 Speaker 1: and public interest grew. By the eighties cycling they'd become 679 00:33:58,160 --> 00:34:01,440 Speaker 1: incredibly popular. Even the Queen of England owned a bicycle, 680 00:34:01,520 --> 00:34:05,760 Speaker 1: making it fashionable among Britain's elite. So you see, anytime 681 00:34:05,800 --> 00:34:08,560 Speaker 1: there's a new technology, um, it goes through these cycles 682 00:34:08,600 --> 00:34:10,680 Speaker 1: and people want to pooh pooh it and shut it down. 683 00:34:11,320 --> 00:34:14,319 Speaker 1: But you can't stop a good idea whose time has come. Now. 684 00:34:14,320 --> 00:34:17,360 Speaker 1: The rapidly growing populated bicycles prompted inventors and engineers across 685 00:34:17,360 --> 00:34:20,480 Speaker 1: Europe to work feverishly on new designs, safer designs, innovations. 686 00:34:21,040 --> 00:34:23,200 Speaker 1: There was so much brain power divided cycling that by 687 00:34:23,239 --> 00:34:26,760 Speaker 1: eighteen and six, a full fifteen percent of British British 688 00:34:26,760 --> 00:34:31,720 Speaker 1: patents were issued for bicycle designs. The industry exploded, bicycle factories, 689 00:34:31,760 --> 00:34:35,319 Speaker 1: tire factors, repair shops, sales everywhere you get the point, 690 00:34:35,440 --> 00:34:38,080 Speaker 1: sort of like the Internet boom, sort of like the 691 00:34:38,120 --> 00:34:41,800 Speaker 1: crypto boom. Bicycle mania was in full swing, so naturally 692 00:34:41,800 --> 00:34:43,719 Speaker 1: it didn't take long for the bankers. Now, once the 693 00:34:43,760 --> 00:34:47,280 Speaker 1: bankers got involved, then it went bonkers. Seventy bicycle related 694 00:34:47,280 --> 00:34:50,440 Speaker 1: companies went public on stock exchanges in the United Kingdom 695 00:34:50,680 --> 00:34:54,040 Speaker 1: um in in eight the number swelled to three sixty three, 696 00:34:54,360 --> 00:34:56,279 Speaker 1: and just in the first six months of eighteen and seven, 697 00:34:56,280 --> 00:34:59,000 Speaker 1: another two hundred and thirty eight were listed, sort of 698 00:34:59,000 --> 00:35:01,839 Speaker 1: like the dot com boom, sort of like the crypto boom. Now, 699 00:35:01,840 --> 00:35:05,200 Speaker 1: most of these companies were nothing. They're hollow, there's no management, 700 00:35:05,200 --> 00:35:07,839 Speaker 1: there's no hope of them ever making a profit. They 701 00:35:07,880 --> 00:35:10,600 Speaker 1: just went to the market and said, I'm a cryptocurrency company. 702 00:35:10,800 --> 00:35:13,200 Speaker 1: Now they said I'm I'm a bicycle business for real. 703 00:35:13,280 --> 00:35:15,319 Speaker 1: That's what they said, and their prices stored just like 704 00:35:15,360 --> 00:35:16,839 Speaker 1: in the dot com boom if they put dot Com 705 00:35:16,880 --> 00:35:19,160 Speaker 1: on there. The bikes were so popular real, so quickly. 706 00:35:19,160 --> 00:35:21,400 Speaker 1: The Financial Times devote a section of its daily newspaper 707 00:35:21,400 --> 00:35:26,280 Speaker 1: to the industry Cycling magazine, and it kept growing, growing, growing. 708 00:35:27,560 --> 00:35:30,080 Speaker 1: Roughly half of the bicycle companies that had gone public 709 00:35:30,320 --> 00:35:35,479 Speaker 1: were no longer in business. Why the the index fell 710 00:35:35,640 --> 00:35:40,160 Speaker 1: sevent from its peak. Well, why because there was no 711 00:35:40,280 --> 00:35:44,600 Speaker 1: market it got it got too exuberant. Now did the 712 00:35:44,640 --> 00:35:47,759 Speaker 1: bicycle die, No, not at all. As a matter of fact, Um, 713 00:35:47,880 --> 00:35:50,560 Speaker 1: mountain bikes and road bikes now routinely sell for over 714 00:35:50,600 --> 00:35:54,040 Speaker 1: ten thousand dollars. Biking is huge, mountain biking, it's all huge. 715 00:35:54,400 --> 00:35:57,480 Speaker 1: But it got to um feverish, just like the dot 716 00:35:57,520 --> 00:36:00,759 Speaker 1: com boom, just like the cryptocurrency whom this is the 717 00:36:00,800 --> 00:36:04,359 Speaker 1: way new technologies work. Automobiles were no different. Um, the 718 00:36:04,480 --> 00:36:07,480 Speaker 1: same thing happened, and that's where we're at with cryptocurrencies today. 719 00:36:07,520 --> 00:36:09,399 Speaker 1: Sort of like the low the Internet went through, sort 720 00:36:09,400 --> 00:36:11,200 Speaker 1: of like the low the cars went through. Sort of 721 00:36:11,239 --> 00:36:14,319 Speaker 1: like the lol that bicycles went through. But it doesn't 722 00:36:14,320 --> 00:36:17,600 Speaker 1: mean it's over. However, most of them won't make it. 723 00:36:18,080 --> 00:36:21,920 Speaker 1: Bitcoin will Bitcoin will buy it. Put it in your 724 00:36:21,920 --> 00:36:24,840 Speaker 1: cold storage, forget about it for three to five years, 725 00:36:25,560 --> 00:36:27,759 Speaker 1: forget about everything else. Get rid of that stress in 726 00:36:27,800 --> 00:36:31,200 Speaker 1: your life, and you're gonna be okay, Because the future 727 00:36:31,440 --> 00:36:34,200 Speaker 1: is decentralized. You listen to the markma Show talking about 728 00:36:34,280 --> 00:36:38,480 Speaker 1: the decentralized revolution, Bitcoin, cryptocurrencies, and more. That's what I 729 00:36:38,520 --> 00:36:39,920 Speaker 1: got for you. Hopefully enjoyed that