Speaker 1: Welcome to another episode of the Mark Mos Show where
Speaker 1: we talk about the decentralized revolution, talking about how the
Speaker 1: world is changing. Bitcoin cryptocurrencies are changing the world, and
Speaker 1: we've discussed it through politics, finance, and technology to help
Speaker 1: you understand what's going on. I mean, the world seems crazy,
Speaker 1: but if you understand these things, it becomes a lot
Speaker 1: more clear. And it's changing rapidly, of course, like I said,
Speaker 1: led by bitcoin cryptocurrencies, because the decentralization and those technologies
Speaker 1: is breaking apart the centralization that we have so much.
Speaker 1: And of course bitcoin is the asset to own, the
Speaker 1: asset to watch. And when you're understanding a new technology
Speaker 1: like bitcoin, it's important to understand how to look at it.
Speaker 1: And so a lot of people are stuck looking at
Speaker 1: the price, which has been pretty boring. I talked pretty
Speaker 1: regularly about it being the the least least interesting thing
Speaker 1: to think about is just the price, and um, it's
Speaker 1: kind of been like a like a stable coin. We're
Speaker 1: sitting at about thirty thousand, it's been there for about
Speaker 1: a month. But again the price is the wrong to
Speaker 1: look at. We want to look at two things. One,
Speaker 1: we want to look at the growth of the network,
Speaker 1: So we have met Cass's law network effects, um. And
Speaker 1: the more people use the network, the more valuable that
Speaker 1: network becomes. If I had one phone, it's not worth
Speaker 1: a whole lot. When you have a lot of phones,
Speaker 1: it's worth a lot. As a matter of fact, I
Speaker 1: remember when I got my first cell phone, and I'm
Speaker 1: pretty old, so there weren't a lot of people that
Speaker 1: had cell phones at the time, and I was doing construction,
Speaker 1: so I was driving all over the place, and I
Speaker 1: thought should I should probably get the cell phone so
Speaker 1: when I'm out on the job side or whatever, I could, uh,
Speaker 1: I could use it. And had this big, old long
Speaker 1: whip antenna. And it was at the time phones weren't
Speaker 1: even Alpha Newmerica, they were only newmeric So at the time,
Speaker 1: the display just had numbers. That was it. So like
Speaker 1: if you want to store phone numbers or names, and
Speaker 1: they're like they had no way to like punch in
Speaker 1: the name. Um. And I remember when I first got
Speaker 1: that phone, I didn't even carry it with me. A
Speaker 1: lot of times I just would leave it at the
Speaker 1: house because like, who was I going to call? I
Speaker 1: didn't know anyone else that had a phone. But then
Speaker 1: as now, today when everybody has a phone, you can't
Speaker 1: get by without it. And so that's the way the
Speaker 1: network effects work. And so we want to look at
Speaker 1: the network effects of bitcoin. How many people are using it?
Speaker 1: Is the growth rate growing? And then we want to
Speaker 1: look at the development on the network. Is the development?
Speaker 1: Are there being upgrades and changes in the development, And
Speaker 1: so I like to talk about those things as I
Speaker 1: look at those things. Um, there's been massive, massive developments.
Speaker 1: I've been talking about that since I got back from
Speaker 1: the Bitcoin conference. UM, one of which is this new
Speaker 1: Taro upgrade. I'm not gonna go deep into that, but UM,
Speaker 1: it allows basically, with the development that's happened on Bitcoin,
Speaker 1: between the Lightning network and now the new uh tap
Speaker 1: root upgrade and now the new Taro upgrade. UM, pretty
Speaker 1: much anything that any of these other cryptocurrencies all coins
Speaker 1: think they can do, it can all be done on
Speaker 1: top of Bitcoin. It's pretty amazing. Bitcoin allows you to
Speaker 1: send bitcoin faster, cheaper, and more private than any other cryptocurrency.
Speaker 1: So anything that's faster, cheaper, and more private, Okay, get
Speaker 1: all that out the window. Um, and then you have
Speaker 1: things like uh, you know whatever, I don't know, smart contracts.
Speaker 1: I suppose um and all that stuff and creating new
Speaker 1: tokens for like token assets like stocks, etcetera. If all
Speaker 1: that now that all that could be done on bitcoin
Speaker 1: as well. So that's the development side. But on the
Speaker 1: adoption side, on the networking side, we're also having massive growth.
Speaker 1: And I talked about this on a regular basis. Um
Speaker 1: this week, Big News one of my favorite places to eat.
Speaker 1: I eat there at least once a week, Um, except bitcoin.
Speaker 1: Now I haven't. I haven't gone there to pay with
Speaker 1: bitcoin yet. Uh, And I'll talk about why. But Um, Chippotle,
Speaker 1: Chippotle Mexican grill now excepts bitcoin as payment. The popular
Speaker 1: Mexican style fast food restaurant chain now excepts bitcoin and
Speaker 1: other cryptocurrencies through flexa, a digital payments platform. So it's
Speaker 1: a new technology or a new application built on top
Speaker 1: of Bitcoin that allows this network growth to happen. He says.
Speaker 1: Flexus supports as many as ninety eight cryptocurrencies, including Bitcoin
Speaker 1: and ethereum, and customers can use an app to pay
Speaker 1: for food items in any of the nearly three thousand
Speaker 1: Chipotle restaurants across the United States. You have to download
Speaker 1: the Gemini or spend an app both are which are
Speaker 1: story or digital assets, and then you can use that
Speaker 1: app and tap it in store to make a payment.
Speaker 1: Supportly joins a long list of restaurants that currently accept
Speaker 1: cryptocurrencies of payments, including Subway, Um and Starbucks. Sp u
Speaker 1: x allows reward members to hold cryptocurrencies in lieu of
Speaker 1: cash in its app. So um my favorite place to
Speaker 1: eat now except bitcoin. Now, the problem that we have
Speaker 1: is that in the United States, bitcoin is treated as property,
Speaker 1: and so you have to understand that from a taxable standpoint.
Speaker 1: So um, if you hold, if you buy and sell
Speaker 1: stocks or gold or real estate, if you make a profit,
Speaker 1: that's a taxable event. And so if I buy bitcoin
Speaker 1: and then I go spend it at Chipotle, I gotta
Speaker 1: figure out when did I buy it? When did I
Speaker 1: sell it? Was their profit? I bought a burrito at
Speaker 1: six Bucks. I bought this bitcoin at this date? What's
Speaker 1: my problem? I have to I have to file that
Speaker 1: on my taxes and potentially pay tax on the capital
Speaker 1: gains I made. And that's a massive problem for adoption
Speaker 1: in the United States, specifically because it makes it a
Speaker 1: pain in the butt. I don't want to spend it.
Speaker 1: I'll save my bitcoin, I'll spend my feat. But I
Speaker 1: have talked about before on the show how Panama recently
Speaker 1: UM moved to take away capital gains from bitcoin, so
Speaker 1: that solves that problem in Panama. Of course El Salvador
Speaker 1: solved that problem by making bitcoin legal tenders, so they
Speaker 1: don't have that problem. And now Germany, Germany is the
Speaker 1: economic engine for the EU. Germany is probably the most
Speaker 1: important country in the entire European um Union because like
Speaker 1: I said, they're the engine. They set that policy. And
Speaker 1: now Germany came out this week and said that no
Speaker 1: taxes for selling bitcoin or ethereum if they're held for
Speaker 1: over one year. Germany's finance ministry said private individuals won't
Speaker 1: pay any taxes when selling bitcoin or ethereum if they
Speaker 1: have held the assets for more than a year, which
Speaker 1: is pretty amazing. So now they're solving that problem now.
Speaker 1: Previously digital assets using such activities had to be held
Speaker 1: for ten years to be exempt from taxation, but now
Speaker 1: it's only one year. They vowed to keep dealing with
Speaker 1: the digital asset taxation policy and eliminate any arising issues.
Speaker 1: This is only going to speed up adoption. We're seeing
Speaker 1: in Panama we're seeing a nel Salvador. We're seeing in Africa,
Speaker 1: now we're seeing it in Germany. Germany, according to a
Speaker 1: CONCUPT study, is the European Unions most crypto friendly nation
Speaker 1: in the world for Q one two. So what's happening
Speaker 1: and uh, it's really going to speed up adoption. Speaking
Speaker 1: of adoption, one big thing that happened in the network
Speaker 1: in was China, that had over six of the bitcoin
Speaker 1: mining in the world, banned all their bitcoin mining. So
Speaker 1: bitcoin mining, you buy high power computer, you plug it in,
Speaker 1: help secure the network, process transactions, you earned rewards. And
Speaker 1: China had this massive advantage where they had over sixty
Speaker 1: of the mining or almost six of the mining in
Speaker 1: the world, was concentrated in mind in China, but boom,
Speaker 1: they flipped off a switch last year and just shut
Speaker 1: it down. Now the United States was the big beneficiary
Speaker 1: of that, and um now the United States is the
Speaker 1: largest has more mining capacity United States and anywhere else
Speaker 1: in the world, Texas being the big beneficiary of that.
Speaker 1: But what's interesting is last week Cambridge University's Cambridge Center
Speaker 1: for Alternative Finance released an update and said that it
Speaker 1: looks like things have actually changed as a matter of fact,
Speaker 1: the previous Cambridge update showed that China's share of the
Speaker 1: mining went from thirty four point three pc in June
Speaker 1: to zero percent in July. So from Junior July it
Speaker 1: went to zero following the crypto mining band that they
Speaker 1: had um But last week the update showed that china
Speaker 1: As share of mining went from zero percent in August
Speaker 1: to twenty two three in September, so it went from
Speaker 1: zero back up to So there's something going on there.
Speaker 1: What's going on? Well, they banned it right, we saw it.
Speaker 1: We could see it in the data that there was
Speaker 1: no miners, there's no what we call hash power. The
Speaker 1: hash power is is the power of all the collectively
Speaker 1: computers that are on the network, and so so we
Speaker 1: can see it went to zero, but then we can
Speaker 1: see it started coming back online and it looks like
Speaker 1: it's only continued to grow since then. As a matter
Speaker 1: of fact, the hash power has continued to grow to
Speaker 1: a point that China starting to be a big player again.
Speaker 1: They haven't been able to get back to where they
Speaker 1: were before, but it looks like they've now firmly put
Speaker 1: themselves into number two, number two. So it says the
Speaker 1: highlight that hash rate. The computational power of the bitcoin
Speaker 1: network has grown forty percent since the China ban, So
Speaker 1: they've grown by putting themselves back into number two in
Speaker 1: in the world, which is pretty amazing because they've banned it.
Speaker 1: It's illegal, but China just can't stop it. The desire,
Speaker 1: the need, um, the the benefits of mining bitcoin, the
Speaker 1: money making potential of mining bitcoin is so powerful that
Speaker 1: they will risk whatever, you know, problems they may have
Speaker 1: in China to mine it. And so it's went from
Speaker 1: zero when they cracked down back up to be number
Speaker 1: two in the world. If you're listening to the Mark
Speaker 1: Moa Show, we're talking about bitcoin and the decentralized Revolution.
Speaker 1: I'll be right back. Don't go away, all right, Welcome back.
Speaker 1: You are listening to the Mark Moa Show talking about
Speaker 1: the decentralized Revolution, walking you step by step how the
Speaker 1: world is changing, talking about bitcoin, cryptocurrencies, politics, technology, finance,
Speaker 1: all your favorite subjects we're talking to about. Over the
Speaker 1: last couple weeks, we've been talking about this stable coin
Speaker 1: called Terra Luna ust Us stable coin Terra Luna, and
Speaker 1: then at the Tera Luna Toka I went deep into
Speaker 1: it and talked about how it blew up. How about
Speaker 1: fifty year and I was about sixty billion dollars just
Speaker 1: went up and smoke and I kind of broke it
Speaker 1: all down. I'm not gonna dive super deep into that,
Speaker 1: but talked about how it was it was doomed to
Speaker 1: fail from day one. UM, peg coins they don't work.
Speaker 1: George Soros got famously rich a billion dollars in a
Speaker 1: day by breaking the peg of the Bank of England.
Speaker 1: Pegs are meant to be broken, and that's exactly what happened.
Speaker 1: I'm not gonna go to super super deep into that,
Speaker 1: but what I do want to talk about is sixty
Speaker 1: billion dollars got eviscerated, basically. And uh, the founder of
Speaker 1: this project ust his name is Do Kwon. Here's a
Speaker 1: thirty year old South Korean and he was the founder
Speaker 1: of this stable coin project. And uh, he's he's kind
Speaker 1: of a shady character. And when I say that, UM,
Speaker 1: part of the reason why I would say that is
Speaker 1: because he already set up a stable coin project before
Speaker 1: that failed, and he did it under a fake alias
Speaker 1: name and coin Desk did a bunch of research on
Speaker 1: this and found all this out. But he was already
Speaker 1: part of another project that failed, and he made a
Speaker 1: bunch of money on that, and then he then he
Speaker 1: launched this other one. So he's got he's like this
Speaker 1: serial offender, if you will, and he operates in this
Speaker 1: gray part of the law where he probably caused more
Speaker 1: pain and damage than Bernie made off who's doing like
Speaker 1: life life in prison. And yet here he is looks
Speaker 1: like he's unlikely, it says, unlikely to face prison time
Speaker 1: for sixty billion dollar wipe out butt finds in lawsuits
Speaker 1: or more likely. And so we're starting to see that.
Speaker 1: We're starting to see, um, some lawsuits pile up. However,
Speaker 1: because there's no what's what I'm gonna talk more about
Speaker 1: that in a second. But because there's no I guess
Speaker 1: jail time or prison time that's going be likely for
Speaker 1: him just making billions of dollars while everyone lost their
Speaker 1: life savings. And we've I've heard stories of I've heard
Speaker 1: I've heard stories of people committing suicide over this. I mean,
Speaker 1: it's a big, big deal. People lost their life savings,
Speaker 1: but not for him, right, No no prison time. So
Speaker 1: I mean I didn't have a problem the first time.
Speaker 1: I didn't have a problem with this one. Why not
Speaker 1: do it again? I mean, sure, why not? Right? So
Speaker 1: guess what he just did and they just launched Tera
Speaker 1: Luna two point oh. So, um, we have an idea.
Speaker 1: Let's just uh, let's just you know, we'll take the
Speaker 1: original Tera Luna token. We'll call that Tera Luna Classic
Speaker 1: or original or whatever they called it, and let's just
Speaker 1: make a new one. How about that. And then what
Speaker 1: we'll do is we're going to air drop a bunch
Speaker 1: of tokens to everybody who had who had the Luna token.
Speaker 1: Air Dropping means basically they create a bunch of new
Speaker 1: tokens out of thin air, and then they just send
Speaker 1: it out to everybody that has an address. Just air
Speaker 1: drop it. Just it just shows up in your wallet.
Speaker 1: And so they did on on May. They name they
Speaker 1: created this new token, they air dropped it. The new
Speaker 1: one they named the old ones Tarra Classic, and they
Speaker 1: traded they created this new coin. UM. Now, uh, these
Speaker 1: exchanges Binance, coup Coin, and okay x, they're complicit in this.
Speaker 1: If this was a crime, which it would be if
Speaker 1: it wasn't in this gray area where they don't quite
Speaker 1: have names and laws for this um, they would probably
Speaker 1: accessories to this crime. But binance coo Cooin and okay
Speaker 1: Coin okay x cryptocurrency exchanges decided to list this new
Speaker 1: Lunar two point oh token and they did, and when
Speaker 1: the token came out, he started trading it about seventeen dollars.
Speaker 1: It then went up to twenty dollars. I don't know
Speaker 1: who was buying this. I mean they got everyone got
Speaker 1: this token for free. It already felt spectacularly. Now they
Speaker 1: got this new token. Now in order to sell the token,
Speaker 1: someone has to buy the token, right, We're not exactly
Speaker 1: sure on who was buying it or what they thought
Speaker 1: they were getting out of it. Somehow, maybe they thought
Speaker 1: that it would go back to reclaim the previous high
Speaker 1: that the original Luna had UM. However it didn't it.
Speaker 1: As a matter of fact, um the old Luno token
Speaker 1: was trading at zero point zero zero zero two zero
Speaker 1: zero zero two point zero zero two UM, and so
Speaker 1: this new one um was air dropped out. It started
Speaker 1: trading and it went as high as thirty dollars on
Speaker 1: by bit and now it's crashed all the way down.
Speaker 1: It's lost eight percent of its value in just a
Speaker 1: couple of hours. And now it's somewhere in the seven
Speaker 1: dollar range. So you create a scam, it fails, You
Speaker 1: create another scam. People lose your life stating sixty billion
Speaker 1: dollars gets lost. You create another scam. I don't know
Speaker 1: why these exchanges are listening it, but look, no one's
Speaker 1: coming to save you here. You should not be participating
Speaker 1: in these scams. I get it. You're like, well, if
Speaker 1: I could have bought here, and it could have got
Speaker 1: out right right there there the company I would have made.
Speaker 1: The reality is you're not on the inside. You don't
Speaker 1: have the information. You don't know when when that pump
Speaker 1: and dump is happening, and so you turn into liquidity.
Speaker 1: You're the one that gets dumped on. And so I
Speaker 1: know when you look at the chart and you hear
Speaker 1: the stories of but this guy made all this money,
Speaker 1: if I could do that too, Yeah, yeah, you hear
Speaker 1: all the stories of people win the lottery too. How
Speaker 1: much money you're going to put in the lottery? Right?
Speaker 1: There's always stories of that. I mean, you hear a
Speaker 1: about guys getting you know, uh, million dollar contracts to
Speaker 1: play basketball or football or baseball, But are you doing
Speaker 1: that right? So there's always stories, don't get me wrong.
Speaker 1: There's always stories And are are there people that made
Speaker 1: that money? Yes, there are, but most likely their insiders
Speaker 1: that had innate knowledge of this pump and dump timing
Speaker 1: and scam. And uh, you don't, you're not, You're not
Speaker 1: connected enough to have that happened. I'm sorry to tell
Speaker 1: you that. I mean, maybe you are. Maybe you're one
Speaker 1: of the few people that are on the inside that
Speaker 1: organize these scams, most likely or not, and most likely
Speaker 1: you'll end up losing everything. Um, and it's unfortun it
Speaker 1: And uh, you know, I'm not here regular I'm not
Speaker 1: here advocating for regulations. Um. What I actually like is
Speaker 1: that as big of a hole as this was for
Speaker 1: the cryptocurrency market overall, like I said, sixty billion dollars
Speaker 1: up in smoke, the entire cryptocurrency market just shrugged it off,
Speaker 1: like we kind of heard. I mean, the price of
Speaker 1: bitcoin dropped, um, but for the most part, it absorbed
Speaker 1: the losses and it's just continued on. Unlike the centrally
Speaker 1: planned markets, like what's happening in the energy markets, like Russia,
Speaker 1: which controls less than ten percent of the oil in
Speaker 1: the world, supposedly is responsible for everyone pay more for energy,
Speaker 1: Like we can't shrug that off, or the food you know,
Speaker 1: all these markets that the government's the central planners control,
Speaker 1: they can't. They're so fragile. They can't even handle a
Speaker 1: small single digit disruption. But here we have the crypto
Speaker 1: market that's some someone unregulated, maybe the closest form of
Speaker 1: an actual free market that we have had a sixty
Speaker 1: billion dollar lost and just the market has absorbed it,
Speaker 1: just keept on moving forward. So um, I'm not a
Speaker 1: fan of it. Um, you know, I suppose there could
Speaker 1: be something done. I'm not a fan of regulation. I'm
Speaker 1: a fan of self regulation. I think that you know,
Speaker 1: a lot of these people that lost money, it's unfortunate,
Speaker 1: but hopefully they won't make that same mistake again. Of
Speaker 1: course I'd like to think that. But then I see
Speaker 1: what happened. They just launched Luna Tude point Oh, and
Speaker 1: here they are right back on board with it, and
Speaker 1: uh no, one's coming to savior. Here we can see
Speaker 1: that lawsuits are piling up in crypto cases. I want
Speaker 1: to talk about these lawsuits, and I'm gonna talking about
Speaker 1: a lawsuit that I was actually personally involved in as well.
Speaker 1: I'll tell you what the outcome of that was and
Speaker 1: what you can expect if you find yourself in a
Speaker 1: similar situation and in a lawsuit. Moving back with that
Speaker 1: and more in a minute. You're listening to the Mark
Speaker 1: Moa Show talking about the decentralized Revolution, talking about the
Speaker 1: intersection Paul Tex, finance and technology as they converge and
Speaker 1: it changes the world. Of course, that's being led by bitcoin,
Speaker 1: being led by cryptocurrencies, and if you can navigate it correctly,
Speaker 1: it could be the greatest opportunity of your life. However,
Speaker 1: if you get caught up in these scams like these guys,
Speaker 1: it could be disastrous for you. Don't want that to happen,
Speaker 1: so don't go away. I'll be back with more. All right,
Speaker 1: welcome back. You are listening to the markmas Show, and
Speaker 1: we are talking about the decentralized Revolution. We're talking about bitcoin,
Speaker 1: We're talking about cryptocurrencies. We're talking about politics, finance, technology
Speaker 1: and how the world has changed before of our eyes.
Speaker 1: We were just talking about, uh, we were talking about
Speaker 1: this Luna Luna crash and how it sucks sixty billion
Speaker 1: dollars out of the crypto markets and how they basically
Speaker 1: just shrugged it off and just kept moving because their
Speaker 1: free markets, unlike the essentially planned markets that are so
Speaker 1: fragile they can't handle even a single point reduction. But
Speaker 1: that's where we are now in these scams, like I said,
Speaker 1: there's not uh they're they're operating in this gray area
Speaker 1: and so it's unfortunate that they can get away with
Speaker 1: repeated offenses. And Do Kuan, who founded Luna now has
Speaker 1: just launched Terra two point o, which is is now
Speaker 1: third attempt he gets, he gets fabulously rich. Most people
Speaker 1: lose everything, and a lot of people jump in hoping
Speaker 1: they're gonna get super rich as well. It doesn't always
Speaker 1: work out so well for him. And so what we've
Speaker 1: seen is these lawsuits. Crypto industry has seen this surge
Speaker 1: and lawsuits, lawsuits as investors losses pile up, and it
Speaker 1: says suits target issuers of digital coins and tokens. Now,
Speaker 1: I'm gonna talk about this for a minute. Let me
Speaker 1: let me, let me read this article and then I'll
Speaker 1: explain a little bit. Even before the recent plunge in
Speaker 1: crypto prices, the industry was already seen an upticking lawsuits.
Speaker 1: The lawsuits are nothing new. Um Um an attorney that
Speaker 1: I that I've used and I'm friends with David Silver.
Speaker 1: He is probably one of the top attorneys in the space.
Speaker 1: I mean, he's been working for years on this so
Speaker 1: some swap attacks and exchange attacks and frauds. I mean,
Speaker 1: he deals with all this, and it's a growing place.
Speaker 1: If you're a attorney, maybe you should be looking at
Speaker 1: working in this crypto space because it's it's a growing industry.
Speaker 1: But it says even before the recent crypto plunge, the
Speaker 1: prices plunge, the industry has already seen an uptip uptick
Speaker 1: in lawsuits. Many of the cases have been fueled by
Speaker 1: investors who allege some digital coins were hyped and then
Speaker 1: sold under false pretenses. So, as I was explaining to you, um,
Speaker 1: it's easy to look at these coins and go, shoot, man,
Speaker 1: if I would have just bought here and I would
Speaker 1: have sold here, look how much I made and so
Speaker 1: and so my friends, friends, cousins, roommates, girlfriends, um an uncles,
Speaker 1: whatever made all this money. I can't too well, not really,
Speaker 1: because as I said, you're not on the inside. And
Speaker 1: so what it says right here, Many of the cases
Speaker 1: have been fueled by investors who allege some digital coins
Speaker 1: were hyped and then sold under false pretenses. So they
Speaker 1: work under these pump and dump schemes. You're not connected enough,
Speaker 1: neither am I um It says some proposed class action
Speaker 1: suits alleged pump and dump schemes involving celebrity promoters. So
Speaker 1: just because your favorite celebrity like Matt Damon from in
Speaker 1: crypto dot com on the super Bowl, just because your
Speaker 1: favorite celebrity promoter is promoting it does not mean it's safe,
Speaker 1: does not mean it's good, and does not mean you
Speaker 1: should be blindly following that. We like to say D
Speaker 1: Y O R, do your own research always. So it
Speaker 1: says here these pump and dump schemes are involved celebrity promoters.
Speaker 1: We've seen Paris Hilton, We've seen Kanye West, We've seen
Speaker 1: Floyd Mayweather, I mean new name it. They're on their
Speaker 1: other alleged that some digital tokens are unregistered securities, or
Speaker 1: that cryptocurrency issuers were deceitful in their marketing. So a
Speaker 1: couple of things. One, I believe in personal responsibility. Freedom
Speaker 1: comes with responsibility. I should be free what I want
Speaker 1: to do, but then if it doesn't work out the
Speaker 1: way that I want, then I should be responsible enough
Speaker 1: to deal with those consequences, right, UM, I grew up
Speaker 1: doing action sports, and like you know, we want to
Speaker 1: go write dirt bikes on the empty lot over here,
Speaker 1: but then we can't because they're afraid that if someone
Speaker 1: gets hurt on that land and there will be lawsuits.
Speaker 1: So I want to be free to go ride my
Speaker 1: dirtbike there, but if I get hurt, that I should
Speaker 1: be responsible for what happens to me. But what most
Speaker 1: people want these days is I want the freedom let
Speaker 1: me go ride dirt bikes there, but if I get hurt,
Speaker 1: then I want someone else take the blame for that.
Speaker 1: And that's exactly what's happening here in the space. Is
Speaker 1: I should be free to invest my money. Well, I
Speaker 1: shouldn't even use the word invest. We'll call it gamble.
Speaker 1: I should be free to gamble my own money, but
Speaker 1: then if I lose money, I want someone else to
Speaker 1: be responsible for that. Now, it's kind of ridiculous. If
Speaker 1: I go to UM, if I go buy a bunch
Speaker 1: of lottery tickets and I don't make any money, UM,
Speaker 1: I'm responsible for those losses. If I go to Vegas
Speaker 1: or online sports betting or a bet on a football game, whatever,
Speaker 1: and I lose that money, I'm responsible for that. But
Speaker 1: somehow these people are jumping in saying I invested into
Speaker 1: this cryptocurrency, I lost money. Now someone else should be responsible.
Speaker 1: Now I get it they had a so called celebrity
Speaker 1: promoting it, but I mean celebrity endorse all kinds of things. Um.
Speaker 1: Now in this case where it says they used they
Speaker 1: were deceitful in their marketing, Now that's fraud, and we
Speaker 1: already have laws against fraud. So there's something there. Right.
Speaker 1: If if you promise me something but you deliver me
Speaker 1: something else, that's fraud. I don't like to use the
Speaker 1: word scam and fraud, uh liberally, they should be used
Speaker 1: right when it's when it's intentional. So if you promised
Speaker 1: me one thing but you give me something else, that's
Speaker 1: a scam. That's fraud, and we have laws for that. Um.
Speaker 1: If it's just deceitful, I mean I don't know. I
Speaker 1: don't know where that falls in. But the one thing
Speaker 1: and why you hear a lot of times bitcoin people,
Speaker 1: I don't say it as much, but we would say
Speaker 1: that most of these all coins are scams and not
Speaker 1: saying that, uh liberally as a scambut but literally as
Speaker 1: a scam. And the reason why is because any cryptocurrency
Speaker 1: that tells you they're quote unquote decentralized, but then they
Speaker 1: sell you a token that's not decentralized, that would be
Speaker 1: a scam or a fraud. So, um, really only bitcoin
Speaker 1: is the true de centralized coin out there. The other
Speaker 1: ones could be, well, we're sort of kind of one
Speaker 1: day maybe we'll be decentralized, but that's not decentralized, and
Speaker 1: so we talked about that being a scam a whole
Speaker 1: another subject. But basically, um, if they're unregised security, so
Speaker 1: they're saying, well, you sold it to me, but it
Speaker 1: was technically a security so you shouldn't have been able
Speaker 1: to sell it to me. Okay, but why did you
Speaker 1: buy it then? Right? So that goes back onto you
Speaker 1: with personal responsibility. But we're seeing this over and over
Speaker 1: and over. Like it said, it's really really growing up
Speaker 1: gaining attention. Here. We can see here among recent lawsuits
Speaker 1: as a case filed in a California federal court over
Speaker 1: losses in the stable coin Gwen g y e N.
Speaker 1: The pseud accuses gmo z dot Com Trust company. The
Speaker 1: issue of Gwen and crypto exchange coin Base, So it
Speaker 1: was on coin base. So you say, but wait a minute.
Speaker 1: Coin Base is a is a well known company. They're
Speaker 1: publicly traded, So if I bought it there, um, then
Speaker 1: shouldn't it be protected and shouldn't somebody be responsible? Apparently
Speaker 1: that's what this guy thinks. So the lawsuit filed against Gwen.
Speaker 1: Um it was on the exchange coin Base advertising the
Speaker 1: stable coin as being pegged to the Japanese yen. Now
Speaker 1: what I tell you about Luna. Pegs are meant to
Speaker 1: be broken. Anything that says they're peg, don't trust it.
Speaker 1: They said they're pegged to the Japanese yen, which I
Speaker 1: don't know why anybody would want to buy something pegged
Speaker 1: to the Japanese yen. Japan's currency is blowing up. That's
Speaker 1: a whole another subject. But when Gwen began trading on
Speaker 1: coin base in November, it immediately became untethered from yen.
Speaker 1: Oh you mean the peg broke. Remember pegs are meant
Speaker 1: to be broken, So the peg broke. Um. When that happened,
Speaker 1: it led to the coin to spike in value. Oh
Speaker 1: we made money. Now, Remember stable coins are supposed to
Speaker 1: be stable they're not supposed to go up or down,
Speaker 1: but it's the spiked value and then it dropped in
Speaker 1: one day at least. That's the lawsuit of edges Um
Speaker 1: and So. Kenneth Donovan, twenty seven years old, is a
Speaker 1: plaintiff who began investing in cryptocurrency in so from two
Speaker 1: it was all tides or great rising tide rises all boats.
Speaker 1: He made a bunch of money. He said he bought
Speaker 1: three thirty five thousand dollars worth of win last year
Speaker 1: after reading its white paper and learning about it um
Speaker 1: that the New York Department of Financial Services had authorized
Speaker 1: this to issue this company to issue stable coins. But
Speaker 1: in a matter of hours, he said, his investment plummeted
Speaker 1: to three thousand dollars, so from three thousand to three
Speaker 1: thousand dollars, wiping out his entire life savings. Before the loss,
Speaker 1: he his wife and their young daughter lived comfortably off
Speaker 1: his investments and gig work for Uber and door Dash,
Speaker 1: But now he lives paycheck to paycheck. Now, look, I'm
Speaker 1: not trying to make fun of him here. I feel
Speaker 1: bad for him, Um, I I do. I was wiped
Speaker 1: out in two thousand eight when I was just married
Speaker 1: and had my first kid, so I feel his pain.
Speaker 1: I was there. Um My, I was ripped off by
Speaker 1: a scam. To the scam was the Federal Reserve um
Speaker 1: and the and Wall Street crap, the entire global financial system.
Speaker 1: So I got caught up in a scam as well.
Speaker 1: It was out of my control. This is out of
Speaker 1: his control. However, don't buy these cryptocurrencies that are alleging
Speaker 1: to provide some sort of innovation, that have some sort
Speaker 1: of a stable coin algorithm that tethers it to some
Speaker 1: other currency. It doesn't work. There's no reason for you
Speaker 1: to buy it. And if you want to and you
Speaker 1: want to speculate it, why would you put your life
Speaker 1: savings into it? Why would you put your life savings
Speaker 1: into it? But that's what he's done, and that's why
Speaker 1: people like this, dozens and dozens, hundreds of cases, thousands
Speaker 1: of cases like this, and that's why lawsuits are picking
Speaker 1: up rapidly. But again, no one is coming to save you.
Speaker 1: Only you can save yourself. Don't buy into these, and
Speaker 1: if you do want to, then only put a little
Speaker 1: bit in. Not your life savings. Are you're listening to
Speaker 1: the Mark Moa show. We're talking about the decentralized Revolution,
Speaker 1: bitcoin cryptocurrencies and the way the world is changing. I
Speaker 1: have a lot more to go when I come back
Speaker 1: in a second, so don't go away, all right, Welcome back.
Speaker 1: You are listening to the markma Show talking about the
Speaker 1: decentralized Revolution, talking about the way of the world is
Speaker 1: changing with bitcoin, cryptocurrencies, and discussing it through the lens
Speaker 1: of politics, finance, and technology so we can understand what
Speaker 1: is happening. And it is happening fast and furious. There
Speaker 1: is so much going on. We're talking about how the
Speaker 1: markets are changing. Um, the laws aren't able to keep up,
Speaker 1: and people are getting hurt and no one is coming
Speaker 1: to save you, and so you need to learn to
Speaker 1: protect yourself. I was talking about this um the stable coin,
Speaker 1: and this guy lost all his money and he thought
Speaker 1: it was safe because it was sold on coin base.
Speaker 1: But just because it's on coin based doesn't mean you're
Speaker 1: protected and doesn't mean they're going to save you. As
Speaker 1: a matter of fact, Um, there's an article that came
Speaker 1: out this week that says coin based doesn't offer a
Speaker 1: liability protection. But that's no reason to panic. So they're
Speaker 1: saying we don't offer liability protection um and they had
Speaker 1: an announcement last month as they were going through this
Speaker 1: regulatory process that really set people off and put people
Speaker 1: in the wrong way. So, oh, of course, as things
Speaker 1: go good, there's never problems. It's only when things go bad, right,
Speaker 1: And so that's why Warren Puffett says, a rising tide
Speaker 1: rises all boats. But when the tide goes out, you
Speaker 1: see who was swimming naked. So when we're in these
Speaker 1: bull runs and everybody's making money, it's all good. Everyone's happy.
Speaker 1: Tera Luna token it's growing, growing, growing. We're in a
Speaker 1: bull run, and this Ponzi scheme lever's up really really quick.
Speaker 1: You put a dollar in, it creates a token, it
Speaker 1: creates another token, It burns the terror Luna token, creates scarcity,
Speaker 1: it pushes the value up. Everything is great. But as
Speaker 1: soon as the market turns and starts going down, the
Speaker 1: Ponzi unwinds itself and it falls apart really fast. People
Speaker 1: get mad. And so that's kind of where we're at.
Speaker 1: And so right now, with with all of the financial
Speaker 1: markets down. As a matter of fact, like I said,
Speaker 1: most of the fang stocks, the Facebook, Apple, Netflix, Google
Speaker 1: are down fifty s A lot of the big real
Speaker 1: big tech, Darleans, Pelotons, the shopifies, um, things like that
Speaker 1: they're down seventy eight percent. Um. Crypto markets don't actually
Speaker 1: looks so bad, um now a lot of them. Most
Speaker 1: of the cryptocurrency markets are down really really heavy a
Speaker 1: matter of factive. Look at like the top twenty coins,
Speaker 1: most of them are down sixty bitcoins holding on in
Speaker 1: about just year to date, doing pretty good. But as
Speaker 1: that goes down, people are losing money, people are unhappy. Um.
Speaker 1: And also coin Base their revenues are going down in
Speaker 1: a in a really big way. As a matter of fact,
Speaker 1: they went as an I p O. So they're a
Speaker 1: publicly traded company and their stock is down over eighty
Speaker 1: percent as well. Coin Base the symbols c O, I,
Speaker 1: N or coin and so as they're doing this, Uh,
Speaker 1: there's a lot of talk about their business model and uh,
Speaker 1: at what point will they run into trouble? Like could
Speaker 1: they go bankrupt? And if they go bankrupt, what happens?
Speaker 1: And this is a key piece I've talked about before
Speaker 1: and this article is talking about here. They don't offer
Speaker 1: liability protection. So, um, if I have money in the
Speaker 1: bank and the bank goes busts, I have f d
Speaker 1: i C insurance and they will give me my money back. Right,
Speaker 1: the FDC will make me whole. And what happens is,
Speaker 1: you know, we've just been so accustomed to working with
Speaker 1: banks that we view lots of people view um, these uh,
Speaker 1: these cryptocurrency exchanges like coin base as a bank. So
Speaker 1: I can buy my bitcoin there or my x y
Speaker 1: z crypto there, and then I could just leave it
Speaker 1: there and they have a vault they can put it
Speaker 1: in and then at some point if I want, I
Speaker 1: can withdraw it. And so they look at it as
Speaker 1: a bank. Now back to I was talking earlier about
Speaker 1: freedom and responsibility. So bitcoin has solved the oldest problem
Speaker 1: in the world. The oldest problem in the world is
Speaker 1: how do I secure my property in a way that
Speaker 1: can't be stolen. And so bitcoin allows me to custody it,
Speaker 1: to hold my own bitcoin in a cryptographically a way
Speaker 1: that nobody can seal it from me. So that's great freedom.
Speaker 1: I can now have the freedom to hold my wealth
Speaker 1: in a way they can't be stolen. However, it takes responsibility,
Speaker 1: so now I have to learn the right way to
Speaker 1: store and provide custody and to keep it in a
Speaker 1: way that it can't be stolen, I don't lose it, etcetera.
Speaker 1: So I have the freedom, but I also need the responsibility.
Speaker 1: What a lot of people want is they don't they
Speaker 1: don't want the freedom and they don't want to take
Speaker 1: the responsibility. Well, they don't want to take responsibility, so
Speaker 1: they don't have the freedom. So I'll just let coin
Speaker 1: base hold onto it for me. So coin Base can
Speaker 1: hold it, and UM, I'll give them the responsibility to
Speaker 1: safeguard my bitcoin. But what happens if something goes wrong? So,
Speaker 1: for example, thousands of stories of people visiting and say
Speaker 1: Cuba and then log it into their coin Base account
Speaker 1: and then it flags their I p s from Cuba,
Speaker 1: Their account gets locked, They're locked out the account, and
Speaker 1: I have to go to the US State Department to
Speaker 1: even get access to their account again. UM, let's say
Speaker 1: that the US government for some reason tells coin Base
Speaker 1: that they can't allow you to withdraw your funds anymore
Speaker 1: for whatever reason, I don't know, You're implicated on some
Speaker 1: charge is or they changed the loss as you can't
Speaker 1: custody your bitcoin anymore, or what happens if their business
Speaker 1: model fails and they go bankrupt? Now with their price
Speaker 1: of their stock sliding over eight, that's a pretty big question.
Speaker 1: In this article says quote the crypto assets we hold
Speaker 1: in custody on behalf of our customers could be subject
Speaker 1: to bankruptcy proceedings end quote. This has put out by
Speaker 1: coin based in its first quarter earnings UM and so
Speaker 1: they're saying, if we go bankrupt, our customer deposits that
Speaker 1: were holding on behalf of them could be subject to
Speaker 1: our bankruptcy proceedings, meaning that the bankruptcy judge could say,
Speaker 1: wait a minute, no, these aren't the customers funds. These
Speaker 1: are your funds. You owe them the funds. But since
Speaker 1: you owe them, we have to take into conduct and
Speaker 1: into account everything you own and then we have to
Speaker 1: figure out the best way to do that. And this
Speaker 1: announcement was really a reminder to the entire ecosystem and
Speaker 1: it should be a wake up call to you. The
Speaker 1: brokerage is not like a bank. Um. There is no protection.
Speaker 1: There is no fd I C insurance. If something were
Speaker 1: to happen with them bankruptcy, etcetera, then you may not
Speaker 1: contracoins back. Now I'm not saying that they are going
Speaker 1: to go bankrupt, but with their stock sliding over. It
Speaker 1: leads a lot of people to thinking about that. But
Speaker 1: like I said, it doesn't even have to be a bankruptcy.
Speaker 1: What if there's just something, like I said, they pass
Speaker 1: a law in the United States that you can't withdraw
Speaker 1: your tokens anymore, So you definitely want to have them
Speaker 1: off before that happens. UM. Like I said that, there
Speaker 1: could be any number of reasons why there's a potentially
Speaker 1: um an incident that all that you know prohibits you
Speaker 1: from withdrawing your coins off of them, and so you
Speaker 1: need to be careful of that, especially in today's uncertain world.
Speaker 1: Right there, there's lots of talk about regulating bitcoin, which
Speaker 1: of course is funny. A lot of people say, but
Speaker 1: what if they regulate bitcoin? I say, well, bitcoins already
Speaker 1: the most regulated asset. So typically an asset would be
Speaker 1: regulated by one entity that that covers that asseid, but
Speaker 1: bitcoins regulated by all of them, so the I r S,
Speaker 1: the SEC, the CFTC FINS and etcetera. But they could
Speaker 1: regulate it more, they could crack on it more, especially
Speaker 1: when it comes to this uh um self custody UM.
Speaker 1: And you know you have to be careful about this
Speaker 1: because these these types of problems only continue to get
Speaker 1: worse and worse and worse. UM. At the same time
Speaker 1: we're seeing we're seeing the demand grow, but we're also
Speaker 1: seeing the scams and problems abound at the same time.
Speaker 1: So it's almost like we're seeing it both, which of
Speaker 1: course makes sense. Right. As the demand grows, more people
Speaker 1: use it, more cryptocurrencies appear, more people use it, more
Speaker 1: problems are found. So so it goes without saying, UM,
Speaker 1: we can see that Fidelity, who has been a big
Speaker 1: player in the bitcoin space for a long time. UM,
Speaker 1: they've they've jumped in bitcoin early and now they said
Speaker 1: they're adding a hundred and ten new workers by the
Speaker 1: end of the year as it continues to branch out
Speaker 1: UM into this space. So that's pretty rapidly for Fidelity,
Speaker 1: which is one of the largest asset managers in the
Speaker 1: United States. UM. There, they've set up a way now
Speaker 1: to allow people planning for retirement holding it for oh
Speaker 1: one k to now take that four oh one k
Speaker 1: and put that into bitcoin, which is pretty big, and
Speaker 1: so a lot of growth, a lot more people coming
Speaker 1: into the space, UM, and it's growing. Remember the two
Speaker 1: things that we look at our growth of the network
Speaker 1: and development on the network. And so we've seen lots
Speaker 1: of development on the network. I'm talking about that, but
Speaker 1: this is the growth on the network. UM as this
Speaker 1: continues to grow UM with Fidelity jumping in, that's massive opportunity.
Speaker 1: But you need to be aware with companies like coin
Speaker 1: base potentially having financial problems if they're holding onto your bitcoin,
Speaker 1: if you're giving them the responsibility to custody that asset
Speaker 1: for you, that's the problem and you should be taking
Speaker 1: moves to pull that off as fast as possible. You
Speaker 1: listen to the Mark mo Show talking about the decentralized Revolution,
Speaker 1: explaining how the world is changing as technology is that
Speaker 1: driver that changes the world. Of course we're talking about bitcoin, cryptocurrencies,
Speaker 1: and we're looking at through the lens of politics, finance,
Speaker 1: and technology as these converge, as these change, so you
Speaker 1: can be better equipped and prepared to handle this change.
Speaker 1: That's what I got for you today. Thanks for listening.