WEBVTT - The Mark Moss Show Jan 31, 2022 0:00:00.080 --> 0:00:03.080 Hey, welcome back to another episode of The Mark Mo 0:00:03.279 --> 0:00:06.760 Show where we are talking about bitcoin. We're talking about 0:00:06.800 --> 0:00:10.840 cryptocurrencies and really this decentralized revolution that's happening each and 0:00:11.080 --> 0:00:14.160 every week, bringing you the most up to date news, 0:00:14.200 --> 0:00:17.600 the education so you understand what's going on, and some 0:00:17.680 --> 0:00:19.920 of the best, some of the brightest people in the 0:00:20.000 --> 0:00:23.560 space to give you that perspective and a little bit 0:00:23.560 --> 0:00:26.800 of a nuance and hopefully some entertainment along with all that. 0:00:27.160 --> 0:00:30.000 So I, as I say, each and every week, this 0:00:30.080 --> 0:00:32.879 is the biggest opportunity you will ever have in your lifetime. 0:00:33.520 --> 0:00:35.440 You don't want to miss it. The problem is is 0:00:35.479 --> 0:00:39.120 that where are you getting your information. Wherever you're getting 0:00:39.120 --> 0:00:41.920 it from, it's most likely wrong and that is going 0:00:42.000 --> 0:00:46.080 to cause you to have problems. So pull out your 0:00:46.080 --> 0:00:48.920 phone if you're not driving, put a calendar reminder on 0:00:49.120 --> 0:00:51.479 right now, and join me each and every week on 0:00:51.479 --> 0:00:53.560 this channel at this time where I'll make it the 0:00:53.600 --> 0:00:58.360 most profitable part of each and every week. Now jumping 0:00:58.360 --> 0:01:01.280 into bitcoin, um, there's so many angles. As I talked 0:01:01.280 --> 0:01:03.080 about each in every week, there's so many angles to 0:01:03.080 --> 0:01:04.600 come out it from. But what is so it's very 0:01:04.600 --> 0:01:08.080 difficult to understand um, you have to understand philosophy and 0:01:08.120 --> 0:01:11.760 game theory and technology and monetary systems, and on and 0:01:11.800 --> 0:01:14.280 on and on and on and on. One of the 0:01:14.400 --> 0:01:17.080 big things about bitcoin, though, that I like to focus 0:01:17.120 --> 0:01:20.959 on is why why do we even need bitcoin? That's 0:01:20.959 --> 0:01:23.120 a big piece of it. Um. Of course we come 0:01:23.160 --> 0:01:25.640 with that from different angles all the time. And then 0:01:26.440 --> 0:01:30.240 why does bitcoin move up and down? And why is 0:01:30.280 --> 0:01:33.080 it needed? Right? So, I know that to most people 0:01:33.120 --> 0:01:35.240 are focusing on the price, and of course right now 0:01:35.560 --> 0:01:39.360 the price the US dollar value of bitcoin is down, 0:01:39.600 --> 0:01:45.080 so we're down off of our all time highs November one, 0:01:45.200 --> 0:01:48.040 we had a high about sixty nine dollars and now 0:01:48.320 --> 0:01:50.440 at the time of this we're somewhere in the high 0:01:50.520 --> 0:01:53.040 thirties I don't know, thirty eight ish range, something like that. 0:01:53.560 --> 0:01:55.360 And I know a lot of people are wishing that 0:01:55.440 --> 0:01:57.400 I would tell you is now the best time to 0:01:57.440 --> 0:02:01.360 buy or is now the time to sell? But I'm 0:02:01.360 --> 0:02:04.480 gonna come out from a different angle, and really we're 0:02:04.480 --> 0:02:07.600 gonna look at it from what are the factors that 0:02:07.680 --> 0:02:10.600 drive it? So, for example, you may have decided that 0:02:10.639 --> 0:02:12.680 to buy bitcoinner people have told you to buy bitcoin, 0:02:12.800 --> 0:02:15.639 you're thinking about buying bitcoin because you think it will 0:02:15.680 --> 0:02:19.880 be worth more in the future, But why why would 0:02:19.880 --> 0:02:23.360 it be more worth more in the future, and more importantly, 0:02:23.639 --> 0:02:27.200 how much could it be worth in the future. Do 0:02:27.200 --> 0:02:29.360 you want to look at those types of things now? 0:02:29.880 --> 0:02:33.200 One of the reasons why is that? Uh? And why 0:02:33.280 --> 0:02:35.040 is it down? Why is the price down? And why 0:02:35.080 --> 0:02:37.079 would it be worth more in the future. And one 0:02:37.080 --> 0:02:39.280 of the things that we have to look at is 0:02:39.639 --> 0:02:43.480 what in the world is going on right now in 0:02:43.520 --> 0:02:46.680 the Federal Reserve of the United States, the Central Bank 0:02:46.720 --> 0:02:50.239 of the United States. If you're not, if you haven't 0:02:50.280 --> 0:02:53.880 been even paying attention to what's going on, then good 0:02:53.919 --> 0:02:56.880 luck trying to understand bitcoin. I know a lot of 0:02:56.919 --> 0:02:59.399 people sometimes say, Mark, Mark, stay in your lane, don't 0:02:59.400 --> 0:03:02.800 don't talk about politics, or don't talk about you know, finance, 0:03:02.840 --> 0:03:04.640 and don't talk about the FED. And it's like, you 0:03:04.760 --> 0:03:08.400 can't understand these things unless you dig into that. And 0:03:08.480 --> 0:03:11.480 so all eyes have been on Jerome Powell is the 0:03:11.520 --> 0:03:13.440 head of the Federal Reserve, the Central Bank of the 0:03:13.520 --> 0:03:18.080 United States, and they had a meeting, They had a 0:03:18.120 --> 0:03:21.400 meeting the f m o C, and they decided to 0:03:21.440 --> 0:03:25.040 get together and decide what comes next, What is the 0:03:25.080 --> 0:03:29.480 fate of the world hanging in the balance based off 0:03:29.560 --> 0:03:34.080 of what they decide, what's in their head. I I 0:03:34.120 --> 0:03:36.320 posted this on Twitter. By the way, if you're not 0:03:36.320 --> 0:03:39.280 following me on Twitter, then you should. It's the number 0:03:39.320 --> 0:03:41.640 one mark boss. I'm pretty active on there, and probably 0:03:41.680 --> 0:03:44.440 more active than I should be. I'd love to hear 0:03:44.440 --> 0:03:46.440 from you, so reach out and say you heard me 0:03:46.480 --> 0:03:50.560 on the radio. Um. But I posted something on on 0:03:50.560 --> 0:03:52.960 on Twitter saying that you know how strange it is 0:03:52.960 --> 0:03:56.920 that the whole world is waiting to see what they say. 0:03:56.960 --> 0:03:59.880 Because what happens with the financial markets, what happens with 0:04:00.080 --> 0:04:03.600 or stock accounts, what happens with the price of your home, 0:04:04.320 --> 0:04:06.920 what happens with maybe the price of your food and 0:04:06.960 --> 0:04:11.080 your gasoline, what happens with the price of bitcoin, all 0:04:11.640 --> 0:04:16.240 boils down to what they do, what they decide. Um. 0:04:16.240 --> 0:04:19.080 So they met all day on Thursday, and then on 0:04:19.120 --> 0:04:21.760 Thursday night there was a Twitter spaces that I jumped 0:04:21.760 --> 0:04:25.280 into with some very very smart people. We had Preston 0:04:25.320 --> 0:04:28.560 Pitch was kind of leading it and talking about the 0:04:28.560 --> 0:04:32.600 FED meeting all day and UH, for like two hours 0:04:32.800 --> 0:04:35.960 we discussed, um, will they raise rates, will they not 0:04:36.040 --> 0:04:38.400 raise rates, will they continue to do stimulus, will they 0:04:38.440 --> 0:04:42.080 really taper? Will they cut back quee um? And and 0:04:42.160 --> 0:04:45.080 if they did any of these things or combinations of them, 0:04:45.200 --> 0:04:48.200 hundreds of combinations of these things, then what would happen? 0:04:49.040 --> 0:04:52.880 And so we're all on there speculating. But really what 0:04:52.920 --> 0:04:56.240 we're doing is we're trying to read a mind. And uh, 0:04:56.800 --> 0:04:58.240 I don't know about you, but I'm not very good 0:04:58.240 --> 0:05:00.359 at reading minds. I don't know if you've ever tried it, 0:05:00.360 --> 0:05:03.520 but it's not very easy. So we're all there trying 0:05:03.520 --> 0:05:06.120 to read what's in the mind. Will they do this, 0:05:06.240 --> 0:05:08.680 or will they do that? Or how long till they 0:05:08.720 --> 0:05:14.880 reverse course? And on and on and on. Right, one, Uh, 0:05:14.960 --> 0:05:20.200 that's a fool's errand right, you can't be guessing with 0:05:20.279 --> 0:05:24.000 your financial future. You can't just be guessing about that. 0:05:24.040 --> 0:05:27.000 You can't be leaving it up to reading minds. And 0:05:27.000 --> 0:05:30.839 and I bring that up to highlight the insanity that 0:05:30.880 --> 0:05:34.680 our entire world is hanging in the balance of what 0:05:34.760 --> 0:05:39.440 they do. And the whole point here is that nobody, 0:05:39.560 --> 0:05:43.640 not no one person, nor one group should ever have 0:05:43.760 --> 0:05:46.640 that power. That's the insanity. We're We're going to dig 0:05:46.640 --> 0:05:49.640 into more about what they're doing and what that ultimately 0:05:50.000 --> 0:05:51.320 is going to do to the best of the the markets 0:05:51.320 --> 0:05:53.200 and of course bitcoin. By the way, if you're just 0:05:53.240 --> 0:05:55.920 tuning and you're listening to the Markmas Show where we're 0:05:55.920 --> 0:05:59.240 talking about bitcoin, we're talking about this decentralized revolution, and 0:05:59.360 --> 0:06:01.840 right now we're talking about what the Federal Reserve is doing, 0:06:01.880 --> 0:06:03.680 so you can have a better understanding of all this. 0:06:04.400 --> 0:06:06.920 But so, how insane is it that one person or 0:06:06.960 --> 0:06:10.840 one group of people can literally have that power over 0:06:11.480 --> 0:06:15.640 everything to change the price. So I I tweeted that 0:06:15.680 --> 0:06:18.280 out and I said, but you know, bitcoin fixes this, 0:06:18.800 --> 0:06:21.400 and I got it. It was It went pretty viral. 0:06:21.440 --> 0:06:22.720 I mean, a lot of people liked it, a lot 0:06:22.720 --> 0:06:26.039 of people commented, hundreds of people commented on that, and 0:06:26.120 --> 0:06:28.839 a lot of the comments were saying, yeah, but how 0:06:28.920 --> 0:06:31.360 does bitcoin fix that? Because when the Fed makes their decision, 0:06:31.360 --> 0:06:35.599 the price the bitcoin goes up and down too. Yeah, 0:06:35.760 --> 0:06:38.279 but that's not the point. That's not the point that 0:06:38.279 --> 0:06:41.520 I'm trying to make here. Yes, the price of bitcoin 0:06:41.880 --> 0:06:44.440 is subject to the whims of fellows sort of just 0:06:44.520 --> 0:06:46.560 like the price of your gasoline, just like the price 0:06:46.600 --> 0:06:48.960 of your steak, just like the value of your home 0:06:49.360 --> 0:06:52.920 and your retirement basket of stocks as well. But that's 0:06:52.920 --> 0:06:56.800 the insanity. So yes, unfortunately, the price the US dollar 0:06:56.839 --> 0:06:59.800 of bitcoin will be whipsode back and forth based off 0:06:59.839 --> 0:07:03.040 of whatever they're doing. But that's not the point I'm 0:07:03.040 --> 0:07:04.520 trying to make. The point I'm trying to make is 0:07:04.560 --> 0:07:07.160 that because no one or no one group should ever 0:07:07.240 --> 0:07:10.600 have that power, the goal is to take that power 0:07:10.760 --> 0:07:16.200 away from them, take away anyone's persons or group's ability 0:07:16.320 --> 0:07:21.320 to move the entire world's prices by creating more money 0:07:21.400 --> 0:07:25.160 and changing interest rates. So let me kind of break 0:07:25.240 --> 0:07:27.720 that down for you, all right, So um, you might 0:07:27.800 --> 0:07:30.560 hear if if if you, like I said, if you're 0:07:30.560 --> 0:07:34.680 not paying attention, then you should be because this affects everything. 0:07:34.760 --> 0:07:37.320 This affects your job, whether you might end up having 0:07:37.360 --> 0:07:40.120 a new job or having a job at all. This effects, 0:07:40.160 --> 0:07:41.520 like I said, the value of your home, or if 0:07:41.520 --> 0:07:42.840 you're going to buy a new home, how much that's 0:07:42.840 --> 0:07:45.000 gonna cost you. This affects how much is gonna cost 0:07:45.040 --> 0:07:48.520 you to commute back and forth to work. So if 0:07:48.520 --> 0:07:51.720 you think this doesn't affect you, then again you're sadly mistaken. 0:07:52.520 --> 0:07:55.200 Henry Ford said over a hundred years ago, Henry Ford, 0:07:55.240 --> 0:07:57.120 the the godfather of the automobile. He said that the 0:07:57.680 --> 0:08:00.880 if the American people knew how the banking system work, 0:08:00.920 --> 0:08:05.440 there would be a revolution before the morning. Before the morning. 0:08:05.880 --> 0:08:09.000 That means, that means that people would be so outraged 0:08:09.320 --> 0:08:11.760 that they wouldn't even wait. They would be out there 0:08:11.800 --> 0:08:14.560 storming the streets, storming the banks. That was a hundred 0:08:14.600 --> 0:08:18.640 years ago. Imagine how much worse the worst things are 0:08:18.760 --> 0:08:21.200 today a hundred years later. And of course it's uh 0:08:21.400 --> 0:08:23.600 no surprise that this is why they don't teach you 0:08:23.640 --> 0:08:25.920 any of this in school. Not only they not only 0:08:25.960 --> 0:08:27.880 teach it to you, they purposely withhold it from you. 0:08:28.280 --> 0:08:31.480 And so I get it if you're not paying attention. 0:08:31.520 --> 0:08:34.439 I get it if you don't understand how this impacts 0:08:34.440 --> 0:08:37.720 your life. But as I like to say, an ostrich 0:08:37.760 --> 0:08:39.720 can bury its head in the sand, but it won't 0:08:39.960 --> 0:08:43.720 stop it from being eaten. You can choose ignore reality, 0:08:43.760 --> 0:08:45.360 in the words of Iron Rand, you can choose the 0:08:45.360 --> 0:08:48.840 ignore reality, but you cannot ignore the consequences of reality. 0:08:48.840 --> 0:08:50.280 And so you've got to know what the heck the 0:08:50.280 --> 0:08:51.960 FED is doing. You gotta know what the heck they're doing. 0:08:52.440 --> 0:08:55.640 What they said in this meeting this week, um what 0:08:55.760 --> 0:08:59.160 their plans are doing, and more importantly, what is that 0:08:59.200 --> 0:09:02.360 going to do to your entire life and the price 0:09:02.400 --> 0:09:05.880 of bitcoin, and of course how bitcoin fixes this. So 0:09:05.920 --> 0:09:08.280 I'm gonna break that down a little bit. Um. Like 0:09:08.280 --> 0:09:11.600 I said, you should be paying attention, so do not 0:09:11.840 --> 0:09:13.640 go away. By the way, you're listening to the Mark 0:09:13.720 --> 0:09:17.280 Moa Show. Of course, we're talking about bitcoin, the decentralized 0:09:17.320 --> 0:09:21.600 revolution that's happening right now. We're talking about why why 0:09:21.720 --> 0:09:24.680 is bitcoin needed and it's being highlighted right now by 0:09:24.760 --> 0:09:27.880 the Federal Reserve moving the markets in the world. I'm 0:09:27.880 --> 0:09:29.480 gonna explain that to you and show you what we 0:09:29.480 --> 0:09:31.000 should be doing about that. So don't go away. I'll 0:09:31.000 --> 0:09:33.040 be right back. Hey, welcome back. You're listening to the 0:09:33.040 --> 0:09:35.920 Mark ma Show and we're talking about bitcoin. Thanks for 0:09:35.960 --> 0:09:39.080 tuning in. We're talking about bitcoin, we're talking about cryptocurrencies, 0:09:39.120 --> 0:09:42.480 and we're talking about the decentralized revolution that's happening, and 0:09:42.640 --> 0:09:46.800 uh really we're digging into why, why does the decentralized 0:09:46.840 --> 0:09:51.320 revolution need to happen, why is it happening, and some 0:09:51.360 --> 0:09:52.720 of the things you can fix. And so we're talking 0:09:52.760 --> 0:09:55.079 about the Federal Reserve, the central banks of the Central 0:09:55.120 --> 0:09:58.920 Bank of the United States, and uh, this week they 0:09:59.000 --> 0:10:01.720 had a big meeting and everybody was waiting to hear 0:10:01.760 --> 0:10:04.160 what they said, and would they come out hawkish, meaning 0:10:04.160 --> 0:10:07.320 would they be strong against it, would they be really 0:10:07.400 --> 0:10:10.120 working hard to tamp down this inflation that we're having, 0:10:10.160 --> 0:10:12.760 or would they be devish, which would be like I, 0:10:12.760 --> 0:10:14.160 we'll just kind of let it go. They'll be weak 0:10:14.200 --> 0:10:17.520 and soft. Right, And so they had this meeting that 0:10:17.520 --> 0:10:22.480 everybody was waiting for, and they were pretty hawkish, meaning 0:10:22.559 --> 0:10:24.640 that they are pretty aggressive on what they want to do. 0:10:24.679 --> 0:10:28.160 And of course the markets have reacted. Right. We're seeing 0:10:28.160 --> 0:10:30.720 the price of all the stocks turning down, We're seeing 0:10:30.760 --> 0:10:33.079 high credit turning down. That's a really bad sign. We're 0:10:33.080 --> 0:10:36.600 seeing the breath of the market's break apart. That's really bad. 0:10:37.520 --> 0:10:39.120 And of course, as I was saying, bitcoin and all 0:10:39.160 --> 0:10:43.120 cryptocurrencies are all down as well. UM. So basically what 0:10:43.160 --> 0:10:45.640 the Fed is saying that um, they are going to 0:10:46.080 --> 0:10:50.720 end quantitative easing by March of which is about two 0:10:50.720 --> 0:10:54.480 months away. UM end it. So what is quantitative easing? 0:10:54.840 --> 0:10:57.840 So quantities and easing is basically the central banks creating 0:10:57.880 --> 0:11:01.640 money and putting them out reserves at the banks, and 0:11:01.679 --> 0:11:04.400 then when the banks get reserves, they create money into 0:11:04.440 --> 0:11:07.400 existence by generating loans. So when you go to the 0:11:07.400 --> 0:11:10.160 bank to get a loan for your house, about a car, 0:11:10.400 --> 0:11:14.520 whatever in RV, that money is created into existence. The 0:11:14.559 --> 0:11:18.040 central banks they don't create money. They put reserves onto 0:11:18.040 --> 0:11:20.280 the banks, and then the banks can create money from 0:11:20.360 --> 0:11:23.680 those reserves. And so quei is a is a roundabout 0:11:23.679 --> 0:11:26.960 way of creating money. And UM, I'm not gonna get 0:11:27.000 --> 0:11:29.840 super detailed into that. There's a little bit more, but 0:11:30.240 --> 0:11:33.640 they've been basically pumping the markets full of this liquidity 0:11:33.920 --> 0:11:36.840 since two thousand eight, since the two thousand eight financial crisis, 0:11:36.880 --> 0:11:41.040 the g f C, the Great Financial Crash, and they've 0:11:41.080 --> 0:11:43.600 never stopped since two thous eight. They said, oh, they 0:11:43.920 --> 0:11:46.000 saved the world, they save the world financial system. Well 0:11:46.000 --> 0:11:48.480 then how come they were never able to let the 0:11:48.480 --> 0:11:50.679 financial system run on its own again. So they've been 0:11:50.679 --> 0:11:53.880 pumping the markets full. Um. Now, um, some historical context 0:11:53.960 --> 0:11:55.640 I think it's important for you to understand about this 0:11:55.720 --> 0:11:59.760 is that in two thousand eighteen, just after the now 0:12:00.080 --> 0:12:03.040 current FED chair Jerome Pale, took office, he came in 0:12:03.320 --> 0:12:05.559 ready to change the world. He was gonna fix things 0:12:06.320 --> 0:12:09.160 and he said, I'm gonna taper. I'm gonna end quewie. 0:12:09.200 --> 0:12:10.920 We're gonna get the markets to stand up on their own. 0:12:10.920 --> 0:12:13.360 We're gonna stop pumping them full of money. And so 0:12:13.440 --> 0:12:18.120 he tried, and he did, and he um started tape 0:12:18.120 --> 0:12:23.640 bring and very quickly the markets crashed, very fast, draw 0:12:23.720 --> 0:12:28.360 down and stocks boom right away. And uh, he very 0:12:28.440 --> 0:12:34.640 quickly found out that you can't taper a ponzi. So 0:12:34.920 --> 0:12:36.640 um he quickly had a reverse course and they had 0:12:36.679 --> 0:12:39.120 to continue pumping the markets full of money. And we've 0:12:39.160 --> 0:12:43.320 continued on from and then you know, March came, which 0:12:43.320 --> 0:12:46.520 was the big crash in the stock market. The pandemic, 0:12:46.760 --> 0:12:48.960 you know, locked the whole country down, locked the lock 0:12:49.040 --> 0:12:52.600 everything down. The markets crashed again, and they brought even 0:12:52.600 --> 0:12:55.280 more firepower. They brought, you know, this time eight trillion 0:12:55.280 --> 0:12:58.800 dollars to pump the markets back up. And so every 0:12:58.800 --> 0:13:01.560 time they've tried, well really only one time they tried 0:13:01.600 --> 0:13:05.280 to stop pumping the markets full of money. The markets crashed. 0:13:05.880 --> 0:13:08.160 And now he's saying they're finally going to do it. 0:13:08.679 --> 0:13:10.520 They couldn't do it last time, but this time they're 0:13:10.520 --> 0:13:14.600 going to do it. Uh. Really, at a time when 0:13:14.600 --> 0:13:18.760 supply chains are breaking down at a time when lockdowns 0:13:18.760 --> 0:13:22.440 are still happening, a time when the economy is seen 0:13:22.480 --> 0:13:25.600 it was very very fragile, at a time when asset 0:13:25.600 --> 0:13:28.600 prices are sky high because of all their monetary uh stimulus, 0:13:28.880 --> 0:13:32.520 and they're gonna stop. Okay, well we can speculate on that, 0:13:32.679 --> 0:13:34.480 but he said, that's what we're gonna do on top 0:13:34.520 --> 0:13:36.280 of that, what they're gonna do, um, is they're gonna 0:13:36.280 --> 0:13:40.520 start raking up the rate, increasing the interest rates. And 0:13:40.559 --> 0:13:43.160 so that means that as interest rates go up, that 0:13:43.200 --> 0:13:46.000 means you'll be paying more for debt to take on debt, 0:13:46.280 --> 0:13:48.880 which means that a lot less people will take on debt. 0:13:49.320 --> 0:13:52.040 When a lot less people take on debt, guess what happens? 0:13:52.800 --> 0:13:55.680 Things slow down. You don't buy new cars, you don't 0:13:55.679 --> 0:13:59.400 buy new houses. Um, When you don't buy new cars, 0:13:59.400 --> 0:14:01.880 a new house is guess what happens? The price of 0:14:01.880 --> 0:14:04.880 those houses come down. When the price of your house 0:14:04.920 --> 0:14:08.800 comes down, guess what happens. You feel poor, You feel 0:14:08.880 --> 0:14:11.240 less rich. Guess what happens when you feel less rich? 0:14:11.720 --> 0:14:14.240 You buy less things. Do you see how they starts 0:14:14.240 --> 0:14:18.560 spiraling very very very very quickly, the way that the 0:14:18.600 --> 0:14:22.840 way that this leverage works is that if someone would 0:14:22.880 --> 0:14:25.360 loan me unlimited amount of money for free, I might 0:14:25.400 --> 0:14:27.040 go get a bunch of that free money, and I 0:14:27.120 --> 0:14:29.440 might go buy a bunch of houses all over the country, 0:14:29.480 --> 0:14:31.200 all over the world. It might go buy yachts and 0:14:31.280 --> 0:14:34.280 planes and and all that, and all of that free 0:14:34.280 --> 0:14:36.760 money that I was given creates all this stimulus. Right, 0:14:36.800 --> 0:14:38.760 So now people are making more houses, and people are 0:14:38.800 --> 0:14:41.680 making more planes and making more boats, and so things start. 0:14:41.720 --> 0:14:43.760 And then all those people that make the boats now 0:14:43.800 --> 0:14:45.320 they all have more money, and then they go buy 0:14:45.320 --> 0:14:47.400 more things and more equipment, and they buy bigger buildings, 0:14:47.400 --> 0:14:49.480 and then you know, on and on and on. So 0:14:49.520 --> 0:14:53.320 it levels up really fast. But it also unwinds just 0:14:53.440 --> 0:14:57.880 as fast. So if rates go up and less people 0:14:57.880 --> 0:15:00.160 buy homes, well, then there's less people in the home 0:15:00.200 --> 0:15:04.400 building niche, there's less people selling supplies for those homes, 0:15:04.480 --> 0:15:06.520 and the people that buy the that sell those supplies 0:15:06.560 --> 0:15:08.640 have less money to go buy other goods and services, 0:15:09.120 --> 0:15:11.560 and the whole thing starts to unwind very very quickly. 0:15:11.560 --> 0:15:15.480 So anyway, they're gonna stop stimulating, apparently by mar and 0:15:15.480 --> 0:15:18.760 then they're gonna start increasing interest rates rate hikes and 0:15:18.840 --> 0:15:23.320 then maybe he said, maybe they might even actually start 0:15:23.600 --> 0:15:28.400 um quantitative tightening, which means not just in the tapering um, 0:15:28.440 --> 0:15:34.240 but actually start pulling money back out. Now. Um, that's 0:15:34.280 --> 0:15:36.760 what he's saying. And the markets are not liking that, 0:15:36.840 --> 0:15:39.600 and so it is dragging the price of all assets, 0:15:39.600 --> 0:15:45.240 including your retirement portfolio down. Stocks are breaking down. What 0:15:45.280 --> 0:15:47.120 people are wondering if we're going to a bear market, 0:15:47.720 --> 0:15:50.000 and like I said, bitcoin is going down as well. 0:15:51.320 --> 0:15:53.280 But what does that mean for the future of bitcoin? 0:15:53.520 --> 0:15:56.680 As I said, bitcoin fixes this. But um, to the 0:15:56.760 --> 0:16:00.440 hundreds of comments I got on that Twitter post, Uh, 0:16:00.840 --> 0:16:04.240 it's not. Um, it's not immune. So a lot of 0:16:04.240 --> 0:16:08.320 people say, well, Mark, you know bitcoin is still correlated 0:16:08.360 --> 0:16:10.480 to the stock market. It's too correlated. I'm not interested 0:16:10.480 --> 0:16:13.240 in bitcoin because it's so correlated. And I would say 0:16:13.320 --> 0:16:18.080 every single asset is correlated right now because of the FED, 0:16:18.200 --> 0:16:20.840 because of the Federal Reserve. It shouldn't be like this, 0:16:21.000 --> 0:16:23.920 but it is because as they're pumping in trillions of 0:16:23.960 --> 0:16:27.720 dollars of liquidity, it drives everything. Warren Buffett uh famously 0:16:27.720 --> 0:16:33.120 said that a rising tide raises all boats, but when 0:16:33.120 --> 0:16:37.240 the tide goes out, you see who's swimming naked and 0:16:37.280 --> 0:16:40.680 so Um, the eight trillion dollars has lifted all the 0:16:40.720 --> 0:16:43.320 boats up at the same time. And when you pull 0:16:43.400 --> 0:16:45.720 the water out, all the boats also go down at 0:16:45.760 --> 0:16:49.760 the same time. UM. Out here in California, I had 0:16:49.800 --> 0:16:51.440 a house out in the river out in the river 0:16:51.480 --> 0:16:56.440 area of Nevada and Arizona for for shoot, almost twenty years, 0:16:56.680 --> 0:16:59.880 over a decade. And on the river it's the Colorado River. 0:16:59.920 --> 0:17:03.040 The comes from Colorado, goes through Las Vegas, Lake Mead, 0:17:03.160 --> 0:17:06.280 goes through Arizona and then eventually dips into the into 0:17:06.359 --> 0:17:08.639 the Gulf of Mexico. Our not Gulf of Mexico, the 0:17:08.680 --> 0:17:12.440 Gulf of Bajam. But on that river at night, UM, 0:17:12.480 --> 0:17:14.719 when the tide comes up, you park your boat up 0:17:14.720 --> 0:17:16.399 on the shore and you drop your anchor, and then 0:17:16.400 --> 0:17:18.160 you wake up in the morning and it's like five 0:17:18.200 --> 0:17:21.679 ft from the water because the water that they release 0:17:21.760 --> 0:17:23.600 water from the dam, and all the boats come up, 0:17:23.960 --> 0:17:27.080 and then when they shut the dam and then it 0:17:27.160 --> 0:17:29.160 all drops down. And that's kind of what the Federal 0:17:29.200 --> 0:17:32.560 Reserve does. Just like the dam releases more water in 0:17:32.600 --> 0:17:34.520 the river and then they take water out. The same 0:17:34.560 --> 0:17:36.800 thing happens with the foul reserve. They put money in 0:17:37.240 --> 0:17:39.800 and everybody feels rich, and then they pull money out 0:17:41.000 --> 0:17:43.960 and it all starts falling apart. And so bitcoin is 0:17:44.000 --> 0:17:46.720 a part of that um, just like gold, just like 0:17:46.760 --> 0:17:50.840 every other asset. But that's only one piece of the story. 0:17:50.880 --> 0:17:52.640 And if that's what you're seeing in the news headlines, 0:17:52.680 --> 0:17:54.440 you are going to be faked out of the market. 0:17:54.480 --> 0:17:56.480 So I want to tell you the real way that 0:17:56.520 --> 0:17:58.280 you need to look at this and where we are 0:17:58.320 --> 0:18:02.080 in this market cycle of cryptocurrencies. Um. Is it over 0:18:02.640 --> 0:18:04.800 or is it just about to begin. I'm gonna come 0:18:04.840 --> 0:18:06.160 back with more than that. I listen to the Mark 0:18:06.240 --> 0:18:09.600 mo Show talking about bitcoin and cryptocurrencies. Don't go away, 0:18:09.920 --> 0:18:12.200 all right, welcome back. You are listening to the Mark 0:18:12.240 --> 0:18:15.280 ma Show, and we're talking about bitcoin and cryptocurrencies and 0:18:15.359 --> 0:18:19.680 the decentralized revolution. Each and every week, I'm here with you. 0:18:19.680 --> 0:18:22.160 You can find me on Twitter at one Mark Moss. 0:18:22.200 --> 0:18:24.840 That's just the number one. I tweet about this stuff 0:18:24.880 --> 0:18:27.800 all the time, and so uh follow me there, give 0:18:27.800 --> 0:18:30.280 me a shout out at me, hell me heard me 0:18:30.320 --> 0:18:31.720 on the radio. Ask me a question, I'll make sure 0:18:31.720 --> 0:18:33.919 to answer it for you. Now we're talking about the 0:18:33.920 --> 0:18:36.119 Federal Reserve, because all eyes are on the fellow reserves. 0:18:36.160 --> 0:18:38.280 They're driving the markets. I was using the illustration of 0:18:38.640 --> 0:18:40.439 this this place on the river where I used to go, 0:18:41.040 --> 0:18:43.159 and they had opened the dam and there'd be a 0:18:43.200 --> 0:18:45.159 lot of water and people would park their boats up 0:18:45.320 --> 0:18:47.520 and then overnight they'd let the they'd close the dam 0:18:47.760 --> 0:18:49.400 and the water would run out, and then boats beyond 0:18:49.440 --> 0:18:51.000 dry land. And that's kind of what the Federal Reserve 0:18:51.040 --> 0:18:54.000 is doing with their money. I explained to you what 0:18:54.080 --> 0:18:55.959 they said in this meeting this week of what they 0:18:56.000 --> 0:18:58.240 planned to do and what's going to happen about that. 0:18:58.320 --> 0:19:00.480 But UM, I want to tell you a couple things. 0:19:00.480 --> 0:19:01.800 So when we're gonna look at what does this really 0:19:01.800 --> 0:19:05.359 mean for bitcoin and cryptocurrencies, Um, before I do that, 0:19:05.400 --> 0:19:06.760 I want to give you a little bit of historical 0:19:06.800 --> 0:19:11.200 context here. So just for a little bit of historical context, 0:19:11.960 --> 0:19:15.600 just because they're doing this doesn't necessarily mean the markets 0:19:15.640 --> 0:19:19.720 are going to crash. So for historical narrative, as I 0:19:19.800 --> 0:19:22.000 was talking about earlier, this quantitative easy and where the 0:19:22.000 --> 0:19:24.280 FED injects money into the system really kind of got 0:19:24.320 --> 0:19:27.240 started in two thousand and eight after the Great Financial Crash, 0:19:27.400 --> 0:19:30.960 and about two years after that, in two thousand, the 0:19:31.000 --> 0:19:35.840 economy was still very weak. Everybody was still very very scared, 0:19:35.960 --> 0:19:39.879 very gun shy because it's just got wiped out in 0:19:40.560 --> 0:19:43.080 two thousand and eight, two years before. So two thousand, 0:19:43.240 --> 0:19:46.760 two years later, the economy's week. People are still gun shy. UM, 0:19:46.880 --> 0:19:51.520 and the FED tried to end um Q and UM. 0:19:51.600 --> 0:19:56.200 The markets crashed. Yeah, same thing. Stocks dropped, But here's 0:19:56.200 --> 0:19:59.199 the key piece. Stocks dropped a little bit, and then 0:19:59.240 --> 0:20:02.200 they just basically chopped sideways for about three months. When 0:20:02.240 --> 0:20:04.199 I say chopped side sideways, what I mean is they 0:20:04.240 --> 0:20:05.880 just went up and down, up and down, up and down, 0:20:05.880 --> 0:20:09.120 with stayed in like a very a range for about 0:20:09.200 --> 0:20:14.159 three months, and then they blasted off even higher. If 0:20:14.200 --> 0:20:17.680 I had to give UM, if I had to consult 0:20:17.720 --> 0:20:20.320 my crystal ball, if I had one, which I don't 0:20:20.600 --> 0:20:22.359 but I wish I did, it would make these things easier. 0:20:22.359 --> 0:20:23.840 But if I had to consult the crystal ball, what 0:20:23.840 --> 0:20:26.320 I would probably expect it to tell me is we 0:20:26.400 --> 0:20:29.960 might see something similar to that. So maybe the Fed 0:20:30.040 --> 0:20:33.280 signals that they're going to be hawkish. Um, you know, 0:20:33.320 --> 0:20:37.160 they're gonna be really strong on inflation. But then they're 0:20:37.160 --> 0:20:40.679