WEBVTT - Jamie Dimon's Crypto Flip Flop 0:00:00.120 --> 0:00:02.880 All right, welcome back. You are listening to another episode 0:00:02.880 --> 0:00:05.120 of the Markmas Show where we talk about bitcoin, we 0:00:05.160 --> 0:00:09.039 talk about the decentralized revolution, and we talk about politics, 0:00:09.200 --> 0:00:12.600 technology and finance in the context of those. So just 0:00:12.600 --> 0:00:14.880 as we can have a better understanding of what is 0:00:14.920 --> 0:00:18.560 going on in the world, how it's changing, and more importantly, 0:00:18.600 --> 0:00:21.279 how we can personally navigate that, so we can survive 0:00:21.360 --> 0:00:24.479 and thrive as this is changing. Now, one thing about 0:00:24.520 --> 0:00:26.119 bitcoin that's very difficult for a lot of people to 0:00:26.200 --> 0:00:29.400 understand is that it's a lot of things. It's a 0:00:29.400 --> 0:00:31.320 lot of things, and it's going to be more things 0:00:31.320 --> 0:00:33.360 than what we know it is. It's a new technology, 0:00:33.360 --> 0:00:36.040 and so as humans we try to understand it by 0:00:36.080 --> 0:00:38.279 comparing to something else that we know. It's sort of 0:00:38.320 --> 0:00:41.879 like this, sort of like when electricity came out. The 0:00:41.960 --> 0:00:45.559 first application of electricity was the light bulb. So then 0:00:45.600 --> 0:00:47.720 you would say, well, what is this electricity thing? And 0:00:47.760 --> 0:00:51.000 you would say, well, it's sort of like a digital candle. 0:00:52.280 --> 0:00:54.040 But what do we need that for. Candles have been 0:00:54.120 --> 0:00:56.279 light for five thousand years and they work pretty good. 0:00:56.320 --> 0:00:58.160 And look, it's portable. I don't need all this these 0:00:58.160 --> 0:01:01.040 wires and all this stuff. Right, So, um, bitcoin is 0:01:01.080 --> 0:01:04.160 like digital cash. Yes, it's like that, it's like digital gold. Sure, 0:01:04.200 --> 0:01:06.080 it's like that, but it's gonna be so many more 0:01:06.080 --> 0:01:08.760 things and so it's hard to understand that, and so 0:01:09.040 --> 0:01:10.840 I like to look at that. But really, um, it's 0:01:10.840 --> 0:01:13.560 fixing a lot of things. And when you're looking at 0:01:13.640 --> 0:01:15.760 something new, like a new technology like this, one of 0:01:15.760 --> 0:01:18.440 the least important things to look at is the price 0:01:19.160 --> 0:01:24.919 of it. What's more important is the problems that it's solving. 0:01:24.959 --> 0:01:26.560 You're trying to predict where it's going to go in 0:01:26.560 --> 0:01:29.080 the future, and looking at the daily price of the 0:01:29.120 --> 0:01:32.120 weeklier monthly price is just a distraction in my opinion. Now, 0:01:32.520 --> 0:01:34.600 I do like to say that the price is like 0:01:34.680 --> 0:01:38.240 the ultimate bait and switch. It sucks people in for 0:01:38.360 --> 0:01:40.840 the money, for the number go up technology, and then 0:01:41.000 --> 0:01:45.800 it switches them into freedom mindset, long term mindset. But 0:01:45.880 --> 0:01:47.240 you know, like I said, it is it is the 0:01:47.240 --> 0:01:49.400 bait and switch, and so people are coming into it 0:01:49.440 --> 0:01:52.560 for the money. And when you look at it from 0:01:52.560 --> 0:01:55.040 the money standpoint, you think about the the adoption of it, 0:01:55.120 --> 0:01:57.400 and you look at Wall Street coming into it, the 0:01:57.440 --> 0:02:00.559 hedge funds coming into it, etcetera. And one of well, 0:02:00.960 --> 0:02:03.760 the biggest bank in the United States, JP Morgan Chase 0:02:04.240 --> 0:02:07.360 head up by Jamie Diamond. Um, you know you would 0:02:07.360 --> 0:02:09.520 think that being one of the biggest banks, and Jamie 0:02:09.560 --> 0:02:12.440 Diamond arguably being one of the most powerful and influential 0:02:12.440 --> 0:02:14.240 people in the United States and in the world because 0:02:14.240 --> 0:02:20.040 of running the bank, he's been a giant opponent of bitcoin. 0:02:20.400 --> 0:02:22.720 I think it was seen he fight famously kind of 0:02:22.720 --> 0:02:24.480 came out and said that you know, it's a fraud, 0:02:24.480 --> 0:02:27.800 it's a scam. He said, if anybody at JP Morgan 0:02:28.120 --> 0:02:31.440 even traded, if they would be fired. Um, he's been 0:02:31.520 --> 0:02:34.600 very vocal against it. And and of course it makes sense, right, 0:02:34.639 --> 0:02:37.079 I mean, running the biggest bank, you don't want something 0:02:37.120 --> 0:02:39.640 to come compete for you. However, you know the old saying, 0:02:39.680 --> 0:02:41.800 if you can't beat them, join them, so to speak. 0:02:41.840 --> 0:02:44.280 And of course we've seen all the big banks, including 0:02:44.360 --> 0:02:47.520 JP Morgan, getting in on the bitcoin action. And this 0:02:47.560 --> 0:02:49.880 week we saw an article come out from the research 0:02:49.880 --> 0:02:53.200 team that was pretty amazing. Banking giant JP Morgan said 0:02:53.200 --> 0:02:56.519 in a note Wednesday that bitcoin and cryptocurrencies are now 0:02:56.600 --> 0:03:02.880 among its preferred quote alternative investments. So wow, what a difference, right, 0:03:02.919 --> 0:03:06.120 went from Jamie Diamond saying if anybody even traded it, 0:03:06.160 --> 0:03:10.800 they'd be fired. To now the banks saying it's in 0:03:10.880 --> 0:03:15.120 their preferred alternative investments. So what does that mean. Well, 0:03:15.200 --> 0:03:17.360 let's let's break this down a little bit. So it 0:03:17.360 --> 0:03:20.560 says that bitcoin's steep sell off. So what does that mean? 0:03:20.600 --> 0:03:22.919 The the bitcoins steep sell off? So the price of 0:03:22.960 --> 0:03:26.240 bitcoin is down? Okay, let's down. I don't think that's 0:03:26.240 --> 0:03:29.000 a big surprise to anybody. It had reached a previous 0:03:29.560 --> 0:03:33.600 UM high of about sixty in November one, and since 0:03:33.639 --> 0:03:37.000 then it's been sliding down. I'm gonna talk about how 0:03:37.040 --> 0:03:40.120 far it's down, especially in relation to some of the 0:03:40.120 --> 0:03:43.320 other tech darlins. But in bitcoin, steep sell off as 0:03:43.320 --> 0:03:46.320 well as that of other cryptocurrencies has been profound, and 0:03:46.360 --> 0:03:49.680 there's been more profound than other alternative investments such as 0:03:49.840 --> 0:03:53.760 private equity, private debt, and real estate. A couple of 0:03:53.760 --> 0:03:56.720 things I'd say about that private equity. Private equity, that's 0:03:56.760 --> 0:03:59.160 not a liquid market, it's not marked to market. What 0:03:59.200 --> 0:04:01.200 does that mean? It's not really we don't know the 0:04:01.240 --> 0:04:04.200 price of that every day. UM. A lot of private equity, 0:04:04.480 --> 0:04:06.400 especially when it comes to like venture type deals. You 0:04:06.440 --> 0:04:08.440 may not know how that shapes out for seven to 0:04:08.560 --> 0:04:12.080 ten years. UM. Private debt, again, that's not marked to market, 0:04:12.080 --> 0:04:14.120 there's no liquid event. Real estate it's not marked to 0:04:14.160 --> 0:04:17.760 market either, and so um, of course it's much more volatile, 0:04:17.760 --> 0:04:20.960 it's much more profound. In their words, but it said therefore, 0:04:21.000 --> 0:04:24.880 the Bank envisions more room for a rebound in the 0:04:24.880 --> 0:04:28.200 digital assets class than in other alternative classes. So what 0:04:28.240 --> 0:04:31.360 they're saying is that because bitcoin has sold off more 0:04:31.640 --> 0:04:34.800 than equity, private debt, and real estate, they expect there 0:04:34.800 --> 0:04:38.400 to be more of a rebound. So notice they didn't 0:04:38.440 --> 0:04:40.360 say they think it's going to zero and it's going 0:04:40.400 --> 0:04:43.200 to crash. What they're saying is, no, it's going to rebound, 0:04:43.200 --> 0:04:46.000 and it's going to rebound even faster than those other 0:04:46.120 --> 0:04:51.479 alternative classes. Quote here it says we quote we thus 0:04:51.640 --> 0:04:57.240 replace real estate with digital assets as are preferred alternative 0:04:57.279 --> 0:05:01.159 asset class along with hedge funds. That's what they wrote 0:05:01.200 --> 0:05:04.279 for the Strategist. So now they're saying that we think 0:05:04.320 --> 0:05:07.719 that bitcoin is better than real estate. That's what they're saying. 0:05:08.520 --> 0:05:10.760 I guess what they're saying is they think that over 0:05:10.800 --> 0:05:14.760 the next you know, near term, that bitcoin will rebound 0:05:14.839 --> 0:05:18.480 faster and higher than real estate, and it's their preferral 0:05:18.480 --> 0:05:24.280 turn of asset class. JP Morgan strategists reportedly said um 0:05:24.360 --> 0:05:27.120 that they're sticking with their view that thirty eight thousand 0:05:27.160 --> 0:05:31.360 dollars was a fair price for bitcoin. It's about twenty 0:05:31.400 --> 0:05:35.160 seven point five percent higher than its current price of 0:05:35.200 --> 0:05:39.280 about twenty nine thirty thousand dollars right now. So a 0:05:39.320 --> 0:05:40.800 lot of times people want to know, is it a 0:05:40.800 --> 0:05:42.560 good price? Is it dog? Should I buy? Should I? 0:05:42.560 --> 0:05:44.359 Should I not buy? They say that they think the 0:05:44.400 --> 0:05:48.720 fair market prices thirty eight thousand, which is higher than 0:05:48.760 --> 0:05:52.560 where it is today. So what does that mean? Does 0:05:52.600 --> 0:05:55.880 that mean that it's going straight up to thirty No, 0:05:55.960 --> 0:05:58.279 it definitely doesn't mean. That doesn't mean that it can't 0:05:58.400 --> 0:06:00.760 drop lower than here. No, it doesn't mean that either. 0:06:01.560 --> 0:06:03.960 But what it does mean is that they're they're they're 0:06:04.000 --> 0:06:07.200 projecting what they think to be a fair market valuation 0:06:07.320 --> 0:06:13.440 today of about thirty thousand dollars now. As an investor, 0:06:14.040 --> 0:06:16.800 the goal is to buy low and sell high. Right, 0:06:17.080 --> 0:06:20.520 That's easy, Well, it's easier said than done anyway. Uh, 0:06:21.279 --> 0:06:22.640 it's so easy to buy low, But how do you 0:06:22.680 --> 0:06:23.680 know when it's low? And how do you know if 0:06:23.720 --> 0:06:25.640 it's gonna go high. Well, you're trying to figure out 0:06:25.720 --> 0:06:29.760 what these fair market valuations are, and so I think, Um, 0:06:29.800 --> 0:06:31.479 what they're saying is that they think the fair market 0:06:31.480 --> 0:06:33.919 bios thirty eight thousand. So anytime you can buy below 0:06:34.000 --> 0:06:38.240 that value, that would be considered a bargain. Now, that 0:06:38.279 --> 0:06:40.480 doesn't mean that fair market value won't continue to go up, 0:06:40.520 --> 0:06:42.960 which of course it will. JP Morgan and City Bank 0:06:43.000 --> 0:06:45.080 have also put out guidance. They think that bitcoin will 0:06:45.160 --> 0:06:50.000 overtake gold Well Gold about a twelve trillion dollar asset, 0:06:50.360 --> 0:06:53.599 which gives us about a twenty x upside from here 0:06:53.839 --> 0:06:56.880 just from that alone. You know, when you're looking at 0:06:57.000 --> 0:07:00.720 venture type deals, well, you're trying typically trying to do 0:07:00.720 --> 0:07:02.920 is trying to invest into a company that's going to 0:07:02.960 --> 0:07:05.680 create a new category. So for example, Uber of us 0:07:05.720 --> 0:07:08.279 an example before. But with Uber, let's say that you know, 0:07:08.360 --> 0:07:10.920 you're in Silicon Valley getting pitched Uber and they're like, hey, 0:07:10.960 --> 0:07:13.320 I have this app and it's gonna help you ride 0:07:13.360 --> 0:07:15.480 chairs and people can be able to call cars from 0:07:15.520 --> 0:07:17.320 their phone. And you're like, well that's stupid. I've never 0:07:17.320 --> 0:07:19.560 heard of that before. Um, how much do you think 0:07:19.600 --> 0:07:20.920 it's worth and they're like, oh, it's worth a hundred 0:07:20.920 --> 0:07:23.840 million dollars, Like, well, I never even heard of this before. 0:07:23.880 --> 0:07:25.400 How that did come up with a hundred million dollars. 0:07:25.400 --> 0:07:28.200 That's that's a ridiculous evaluation. Well, um, you know, the 0:07:28.240 --> 0:07:30.280 taxi industry is this big, and the limon industry is 0:07:30.280 --> 0:07:32.800 this big, and the van chair rideshare industry is this big, 0:07:32.840 --> 0:07:34.280 and if we can get five percent of each of those, 0:07:34.640 --> 0:07:36.080 then we can get to a hundred million. Right, So 0:07:36.120 --> 0:07:38.200 something like that. And you would also look at the 0:07:38.240 --> 0:07:40.880 same with bitcoin, if it can overtake gold per City 0:07:40.880 --> 0:07:45.120 Bank and JP Morgan's guidance, Well, that's a like I said, 0:07:45.160 --> 0:07:47.640 t X right there. Okay, what else, Well, it's kind 0:07:47.640 --> 0:07:50.080 of like having a Swiss bank account in your pocket. 0:07:50.640 --> 0:07:52.720 Swiss bank accounts have always been the best place to 0:07:52.880 --> 0:07:56.120 park money offshore, but not so much anymore now these 0:07:56.160 --> 0:07:58.760 rush ridges and oligarcs are getting their accounts frozen. However, 0:07:58.800 --> 0:08:01.560 the rich still put their money into offshore bank accounts 0:08:02.000 --> 0:08:05.280 to protect it. And there's about forty trillion sitting in 0:08:05.320 --> 0:08:07.080 offshore bank accounts. Could to get ten percent of that, well, 0:08:07.120 --> 0:08:10.880 there's another four trillion there. There's twenty trillion dollars in 0:08:11.440 --> 0:08:15.120 negative yielding bonds could have take five or tempercent of that. Okay, 0:08:15.120 --> 0:08:17.400 there's another two two to four trillion dollars and very 0:08:17.440 --> 0:08:20.440 quickly you can see how fast that can start adding up. 0:08:20.520 --> 0:08:22.760 So while they say that they think the fair market 0:08:22.840 --> 0:08:25.400 value today is thirty, doesn't mean that's where the cap is. 0:08:26.040 --> 0:08:27.680 That doesn't mean where it's going to go. And it 0:08:27.720 --> 0:08:30.400 depends on obviously what time frame you're looking at. I 0:08:30.520 --> 0:08:32.280 like to think if you're gonna hold bitcoin for at 0:08:32.360 --> 0:08:34.920 least three years, you don't really need to worry about it. 0:08:34.920 --> 0:08:37.720 And I say three years because there's never been a 0:08:37.880 --> 0:08:41.319 point that you could have bought and been underwater three 0:08:41.400 --> 0:08:43.480 years later. If you would have bought at the peak 0:08:43.520 --> 0:08:47.720 in twenty dollars took about three years to get back 0:08:47.720 --> 0:08:51.400 to a new new all time high. Um. But it's 0:08:51.440 --> 0:08:53.439 not just that there's a new report here that I 0:08:53.520 --> 0:08:55.920 want to talk about says that bitcoin is better than 0:08:55.960 --> 0:08:59.559 the NASDAK. Now NASDAC is all the tech heavy stocks, 0:08:59.600 --> 0:09:03.600 the fay, Facebook, Apple, Netflix, Google, et cetera. And I 0:09:03.640 --> 0:09:05.280 want to show you that you know, bitcoin is too 0:09:05.320 --> 0:09:09.080 volatile supposedly, but is it Is it doing better than 0:09:09.080 --> 0:09:11.600 the fan stocks. I want to talk about that and more. 0:09:11.960 --> 0:09:13.640 I got I got some numbers in front of me 0:09:13.640 --> 0:09:16.040 and it is going to shock. You're gonna be blown 0:09:16.040 --> 0:09:18.640 away here, um, and I got some stuff coming out 0:09:18.679 --> 0:09:20.640 of the bankers and you'll be surprised what they said. 0:09:20.800 --> 0:09:24.040 You're listening to the markma Show. We're talking about bitcoin, cryptocurrencies, 0:09:24.080 --> 0:09:28.200 the decentralized Revolution, breaking it down for you play by 0:09:28.240 --> 0:09:30.400 play so you can navigate this correctly and more. I'm 0:09:30.400 --> 0:09:31.920 gonna be back with all that in a second, so 0:09:32.000 --> 0:09:34.400 don't go away, all right, Welcome back. You are listening 0:09:34.400 --> 0:09:37.120 to the Mark Moa Show. We're talking about bitcoin, We're 0:09:37.160 --> 0:09:41.520 talking about the decentralized Revolution, and we are narrating it. 0:09:41.559 --> 0:09:44.400 We're navigating it for you so you can take advantage 0:09:44.400 --> 0:09:46.160 of it, not be left behind. Now, before the break, 0:09:46.160 --> 0:09:50.400 I was talking about JP Morgan changing their story. You know, 0:09:50.400 --> 0:09:51.880 if you can't beat them, join them kind of thing. 0:09:52.000 --> 0:09:54.280 Or maybe it's the Gandhi quote which is first they 0:09:54.360 --> 0:09:57.320 laugh at you, then they fight you, and then they 0:09:57.400 --> 0:09:59.439 join you kind of a thing. But Jimmy Diamond JP 0:09:59.520 --> 0:10:03.320 Morgan has been way outspoken against bitcoin, saying they would 0:10:03.320 --> 0:10:06.360 fire anybody who even traded it. And here they are 0:10:06.440 --> 0:10:09.160 now saying that they think it's gonna overtake gold, and 0:10:09.520 --> 0:10:13.560 they think that there's a upside on bitcoin right now 0:10:13.600 --> 0:10:17.200 today based off what they consider the fair market valuation, 0:10:17.280 --> 0:10:20.800 which is pretty amazing. Um. Now that's their guidance. I 0:10:20.840 --> 0:10:23.160 don't know if that's not necessarily my opinion. Um. Another 0:10:23.200 --> 0:10:26.240 analyst that I follow a good friend, Nick Bottia. He's 0:10:26.240 --> 0:10:29.160 been on the show before. UM. He put out some 0:10:29.160 --> 0:10:32.400 some reports this week showing based off of about five 0:10:32.440 --> 0:10:34.560 different metrics that he put out that he thinks maybe 0:10:34.640 --> 0:10:37.960 it's more around Um, the bottom, I should say is 0:10:38.000 --> 0:10:41.760 around twenty to twenty, about twenty two thousand and so 0:10:41.800 --> 0:10:43.720 what do I mean by that? The bottom meaning he 0:10:43.760 --> 0:10:46.440 thinks that if if, if it did, if it could 0:10:46.480 --> 0:10:48.800 get pushed down that far. And I'm not saying it 0:10:48.840 --> 0:10:51.080 will and probably not JP morgansond is gonna go up. 0:10:52.240 --> 0:10:53.920 But even if it did, if some if some of 0:10:53.960 --> 0:10:57.560 these hedge funds attacked it, you know, um, you know, whatever, 0:10:57.640 --> 0:11:01.360 the markets crashed and people rush for liquidity. He thinks 0:11:01.360 --> 0:11:02.880 that even if it got down there, that would be 0:11:02.880 --> 0:11:05.400 the absolute bottom and people would buy it back up 0:11:05.440 --> 0:11:07.520 from there. UM. And so you know, we'll have to 0:11:07.520 --> 0:11:09.880 wait and see. So if the bottom is somewhere around 0:11:09.880 --> 0:11:13.680 twenty and then the current fair market values UM forty, 0:11:13.880 --> 0:11:17.400 that means you're risk to reward ratio is pretty good. 0:11:19.080 --> 0:11:21.400 I think, I said, if it just overtakes gold, I 0:11:21.440 --> 0:11:22.959 mean that's a twenty x upside. So I have a 0:11:23.120 --> 0:11:27.760 twenty x upside with a you know, zero point two 0:11:27.760 --> 0:11:31.120 percent downside. Like I like those odds. Those are pretty 0:11:31.120 --> 0:11:35.240 good odds and you should too. Now, the the stock 0:11:35.400 --> 0:11:37.960 market and really the economy United States has been driven 0:11:38.080 --> 0:11:41.600 by the tech stocks over the last twenty years, of course, 0:11:41.600 --> 0:11:44.040 and over the last decades specifically, it's been driven by 0:11:44.120 --> 0:11:49.480 internet stocks. We talked about the fangs. The fangs are Facebook, Apple, Netflix, Google, Right, 0:11:49.520 --> 0:11:51.480 those kind of lead lead it, and all the tech 0:11:51.480 --> 0:11:53.320 stocks are are Most of these tech stocks are in 0:11:53.520 --> 0:11:57.320 the Nasdaq INDEXI, of the SMP five, of the nasdacum 0:11:57.360 --> 0:11:59.520 et cetera. And so the NASDAC has been the place 0:11:59.559 --> 0:12:02.120 to be in So financial advisors they like to talk 0:12:02.160 --> 0:12:06.880 about how, um, how bitcoin is, uh, you know, it's 0:12:06.920 --> 0:12:08.760 a new asset. It's maybe it's like a tech stock. 0:12:08.800 --> 0:12:11.600 It's been kind of trading along with the NASTAC sort 0:12:11.640 --> 0:12:13.880 of like it's been treated like that, and because it's 0:12:13.920 --> 0:12:16.000 trading along with that, it's it's got a lot of 0:12:16.320 --> 0:12:20.160 high correlation, so meaning they're correlated moving together up and down, 0:12:20.160 --> 0:12:22.560 which they are. And I think what that demonstrates really 0:12:22.920 --> 0:12:26.400 mostly is just that a lot of these tech investors 0:12:26.600 --> 0:12:28.760 are also invested in the bitcoin right now, and so 0:12:28.800 --> 0:12:31.440 they just treat it like everything else in their portfolio. Now, 0:12:31.480 --> 0:12:34.480 everything is correlated until it's not, and so it doesn't 0:12:34.480 --> 0:12:37.000 mean it always will be that way. But I think 0:12:37.040 --> 0:12:40.200 that if we if we look at this, if we 0:12:40.400 --> 0:12:41.719 if we looked at you know, a lot of a 0:12:41.760 --> 0:12:44.320 lot of these tech investors look at bitcoin as another 0:12:44.480 --> 0:12:48.320 tech play. So could bitcoin be like the next Amazon, 0:12:48.559 --> 0:12:50.680 Not in a sense of what it does or the 0:12:50.800 --> 0:12:53.440 use case of it, but just in how um the 0:12:53.520 --> 0:12:56.160 valuation could grow? Things like that, Um could it be 0:12:56.200 --> 0:12:59.680 the next Bitcoin? Could it be like the next Apple, Facebook, etcetera. 0:13:00.200 --> 0:13:02.520 But I think that, um, if you look at it 0:13:02.600 --> 0:13:07.320 that way, it's way too small, it's way too limiting. 0:13:07.920 --> 0:13:11.439 I think a much better analogy would be to look 0:13:11.480 --> 0:13:16.520 at um bitcoin as the nasdack. Not one of the 0:13:16.520 --> 0:13:19.600 companies in the NASTACK, but as the NASTACK because what 0:13:19.640 --> 0:13:22.440 we're seeing is we're seeing all of these companies now 0:13:22.520 --> 0:13:27.040 being built on bitcoin, just like all these other companies 0:13:27.080 --> 0:13:30.000 are on the NASDAC listed on the NASDAC. Now all 0:13:30.040 --> 0:13:32.400 these other companies are being built on bitcoin. We're gonna 0:13:32.400 --> 0:13:34.680 talk about some of this new technology that's being built 0:13:34.679 --> 0:13:37.240 on bitcoin in a minute. But if we look at 0:13:37.280 --> 0:13:40.199 this like I said, these, you know, most of the 0:13:40.240 --> 0:13:42.760 tech investors, most of the stock investors, really most of 0:13:42.800 --> 0:13:44.880 the wealth that's been created in the stock market has 0:13:44.960 --> 0:13:48.480 come from this tech sector. The top seven companies in 0:13:48.559 --> 0:13:54.880 the index are Apple, Microsoft, Google, alphabet Um, Amazon, Tesla 0:13:55.120 --> 0:13:58.520 and Video and Facebook or Meta as it's called, which 0:13:58.800 --> 0:14:03.680 have generated in trillion dollars worth of wealth in the 0:14:03.760 --> 0:14:07.480 last decade alone, which is pretty big. But they're not 0:14:07.559 --> 0:14:10.160 quite the darlings that they have always been. And so 0:14:10.240 --> 0:14:13.040 what we've seen for a couple of things. One well 0:14:13.080 --> 0:14:15.800 we really saw through the election process in is that 0:14:15.840 --> 0:14:19.640 there's a lot of regulatory risk that's been coming to 0:14:19.960 --> 0:14:22.920 these tech stocks. So um, everyone talks about we'll just 0:14:22.960 --> 0:14:26.600 wait until they regulate bitcoin, which I would respond with, well, 0:14:26.680 --> 0:14:29.880 bitcoin is already regulated. As a matter of fact, is 0:14:29.920 --> 0:14:34.920 probably the most regulated asset in the world. Every financial 0:14:35.040 --> 0:14:38.400 or every regulation is in entity in the United States 0:14:38.480 --> 0:14:41.840 already regulates it, with the I r S, the SEC, 0:14:42.440 --> 0:14:45.840 the c f TC, we got FNS in I mean, 0:14:45.880 --> 0:14:49.480 you name it. Everybody has put regulations on top of bitcoin, 0:14:49.520 --> 0:14:51.600 and they don't all chime in on other types of assets, 0:14:51.800 --> 0:14:53.440 and so it's already there. But what we're seeing is 0:14:53.480 --> 0:14:57.920 increased regulations against these um text stocks and so um. 0:14:57.960 --> 0:15:00.200 You know with President Trump, you saw you get off 0:15:00.200 --> 0:15:02.200 of Twitter, but before he got kicked off of Twitter, 0:15:02.240 --> 0:15:05.640 they were talking about I'm repealing this protection this section 0:15:05.760 --> 0:15:07.800 two oh three um that they have. I'm not going 0:15:07.880 --> 0:15:10.960 to get deep into that right now, but you know, 0:15:11.240 --> 0:15:18.080 there's allegations of monopolies being built, of manipulation alex and Tampa, Tampa, tampering, 0:15:18.560 --> 0:15:22.200 of you know, censoring, things like that, and I think 0:15:22.520 --> 0:15:24.480 more and more people are starting to wake up and 0:15:24.520 --> 0:15:28.040 see this. The regulators are, the politicians are starting to 0:15:28.040 --> 0:15:30.600 see this as well, and there's there's a lot of 0:15:30.640 --> 0:15:34.640 regulatory risk there and I think the future of tech 0:15:34.680 --> 0:15:37.080 stocks is greatly diminished because of that. I think we've 0:15:37.120 --> 0:15:40.320 seen all this growth, but in this environment that we're 0:15:40.360 --> 0:15:42.920 in all the money in the markets is rotating from 0:15:43.200 --> 0:15:47.040 tech and growth and moving into value commodities, things like 0:15:47.080 --> 0:15:51.120 that UM with less liquidity, without the ability to borrow 0:15:51.120 --> 0:15:53.080 a bunch of money, it's gonna make it harder for 0:15:53.160 --> 0:15:55.480 them to grow. And I don't see them repeating the 0:15:55.480 --> 0:15:59.400 tech X return over the next decade. That's where bitcoin 0:15:59.520 --> 0:16:01.560 comes in. I think bitcoin can outperform that. Now. A 0:16:01.640 --> 0:16:03.840 lot of people say that bitcoin is two volatile. It's 0:16:03.880 --> 0:16:06.960 two volatil. Right, let's take a look at that. So 0:16:07.120 --> 0:16:10.960 year to date from January one to today, Bitcoin is 0:16:11.000 --> 0:16:13.880 down thirty seven it's a big drop. I'm not gonna 0:16:13.960 --> 0:16:16.200 lie seven percent. But you know else is down thirty 0:16:16.240 --> 0:16:19.440 percent year to date. Tesla. Tesla's down thirty seven percent 0:16:19.520 --> 0:16:22.400 year to date. Amazon It's down thirty four percent year 0:16:22.400 --> 0:16:26.400 to date, about the same. Netflix is down sixty eight 0:16:26.600 --> 0:16:31.240 percent year to date, almost double whipitcoins down. Shopify is 0:16:31.280 --> 0:16:36.880 down seventy five percent year to date. Meta Facebook is 0:16:36.920 --> 0:16:40.360 down forty four percent. So when you look at the 0:16:40.400 --> 0:16:47.800 tech stocks Tesla, Amazon, Netflix, Shopify, Facebook, Bitcoin is doing better. So, yes, 0:16:47.800 --> 0:16:49.960 it's down, I'm not gonna say it's not. I'm not 0:16:50.000 --> 0:16:52.520 gonna lie to you it's down, but not as much 0:16:52.520 --> 0:16:58.240 as Tesla, Amazon, Netflix, Shopify, Meta, Googles down. So not 0:16:58.320 --> 0:17:01.560 quite as bad and so big. As I said, bitcoin 0:17:01.640 --> 0:17:03.800 is is being looked at as like a tech stock. 0:17:03.840 --> 0:17:06.760 It's trading along with the NASDAC. There's a high correlation 0:17:06.800 --> 0:17:09.800 there now. Doesn't mean there will always be there, but 0:17:09.840 --> 0:17:12.719 it is there now. But it seems to be holding 0:17:12.800 --> 0:17:17.159 up better than Tesla, Amazon, Netflix, Shopify, and Facebook Meta. 0:17:17.440 --> 0:17:20.800 So is it too volatile? Well, if you think that's 0:17:20.800 --> 0:17:22.919 too volatile, then you also have to think all of 0:17:22.960 --> 0:17:27.680 those are too volatile as well. Now, volatility is also 0:17:27.720 --> 0:17:29.720 a good thing, right. Volatility works both ways. It goes 0:17:29.800 --> 0:17:32.040 up and down. How does an asset like bitcoin go 0:17:32.119 --> 0:17:36.600 from zero to being worth thirty thousand dollars today without volatility? 0:17:37.280 --> 0:17:39.600 The answer is it doesn't. If it wasn't volatile at 0:17:39.640 --> 0:17:42.800 alogyy stuck at zero forever. And so you want volatility, 0:17:43.560 --> 0:17:46.480 you want prices to go up and down, and that's 0:17:46.480 --> 0:17:49.080 what's happening. Now you're listening to the Markmas show. We're 0:17:49.080 --> 0:17:52.200 talking about, of course bitcoin, we're talking about um this 0:17:52.400 --> 0:17:54.720 decentralized revolution that the world is going through, and we 0:17:54.760 --> 0:17:57.320 do that by looking at finance which we're doing right now. 0:17:57.359 --> 0:17:59.880 Of course we do that through looking at politics, which 0:18:00.000 --> 0:18:03.840 affects the finance, and of course how technology reshapes the world. 0:18:04.440 --> 0:18:05.879 I have a lot more to cover. I want to 0:18:05.920 --> 0:18:08.720 talk about what some of these people at World That 0:18:08.880 --> 0:18:11.080 Comic Forms said about Swift. I want to talk about 0:18:11.119 --> 0:18:13.439 the FED chair, talking about cb d c S, I 0:18:13.440 --> 0:18:15.760 want to talk about what's happening with the central bankers, 0:18:15.920 --> 0:18:18.600 and so much more. Don't go away, all right, welcome back. 0:18:18.600 --> 0:18:20.639 You are listening to the Mark Moa show where we 0:18:20.680 --> 0:18:23.280 talk about bitcoin. We talked about cryptocurrencies, and we talk 0:18:23.359 --> 0:18:27.640 about the decentralized revolution, and I was talking about before 0:18:27.640 --> 0:18:30.760 the break, how we're seeing this massive shift going on 0:18:30.840 --> 0:18:33.000 right before our very eyes. Of course in more ways 0:18:33.040 --> 0:18:35.400 than we can count, one of which is a capitulation 0:18:35.480 --> 0:18:38.160 by some of these Wall Street banker types. I'm talking 0:18:38.160 --> 0:18:39.960 about Jamie Diamond, head of the biggest bank in the 0:18:40.000 --> 0:18:43.959 United States, maybe the world. JP Morgan, and how he 0:18:44.000 --> 0:18:48.000 went from Bitcoin's the biggest fraud scam thing in the 0:18:48.040 --> 0:18:50.679 world to um and if anybody at JP Morgan ever 0:18:50.680 --> 0:18:54.040 traded it on fire, him too. Now JP Morgan putting 0:18:54.040 --> 0:18:56.720 out guidance saying it's gonna overtake bitcoin and how they 0:18:56.720 --> 0:19:00.840 think it's um has upside today from where they consider 0:19:00.840 --> 0:19:05.760 its fair market value. Pretty amazing, pretty big about face 0:19:05.880 --> 0:19:09.120 if you will, UM. And we're seeing it all over 0:19:09.119 --> 0:19:11.239 the place. I mean it, it is, it's all over 0:19:11.280 --> 0:19:14.399 the place. We saw this week that at the Federal 0:19:14.440 --> 0:19:19.480 Reserve UM the FED Vice chair Lele Brainerd. She was 0:19:19.760 --> 0:19:24.280 being questioned by the House Committee on Financial Services asking 0:19:24.320 --> 0:19:28.280 about um C b d C s UM, which stands 0:19:28.280 --> 0:19:31.880 for central bank digital Currencies, and being asked specifically if 0:19:31.920 --> 0:19:36.480 a cb d C could coexist with stable coins? So 0:19:36.600 --> 0:19:38.119 what does that mean? And what does that have to 0:19:38.160 --> 0:19:39.840 do with bitcoin? What does that do with the financial system? 0:19:39.840 --> 0:19:42.240 Well a lot, so, the US Federal Reserved Vice Chair 0:19:42.280 --> 0:19:44.520 Litle Brainard said that a central bank digital currency s 0:19:44.520 --> 0:19:49.000 CBDC could, in fact, it could exist alongside stable coins 0:19:49.080 --> 0:19:53.080 and provide a measure of safety. Why would it exist 0:19:53.440 --> 0:19:57.600 provide a measure of safety? Well, let's talk about that. So, 0:19:57.880 --> 0:20:01.479 she says, CBDCs could coexist with be complementary to stable 0:20:01.520 --> 0:20:05.840 coins and commercial bank money by providing a safe central 0:20:05.880 --> 0:20:10.320 bank liability in the digital financial ecosystem, much like cash 0:20:10.600 --> 0:20:15.639 currently coexists with commercial bank money. So currently we have 0:20:15.640 --> 0:20:17.320 stable coins. If you're not aware of what they are, 0:20:17.640 --> 0:20:21.200 a stable coin is basically a token that represents a dollar. 0:20:21.320 --> 0:20:23.280 So if I give you a dollar, if I give 0:20:23.320 --> 0:20:25.880 a company a dollar, they give me back a token 0:20:26.440 --> 0:20:30.160 that represents that dollar, and it's stable. It's a stable coin. 0:20:30.200 --> 0:20:33.520 It's stable with a dollar. That token is always supposed 0:20:33.520 --> 0:20:36.920 to be worth a dollar. And and it really got 0:20:37.040 --> 0:20:40.040