1 00:00:00,000 --> 00:00:02,560 Speaker 1: All right, welcome back. You are listening to another episode 2 00:00:02,560 --> 00:00:04,160 Speaker 1: of the Mark Moa Show where we talk about the 3 00:00:04,160 --> 00:00:07,880 Speaker 1: decentralized revolution. We talk about bitcoin, We talked about cryptocurrencies 4 00:00:07,880 --> 00:00:11,119 Speaker 1: and how it is changing the world right before our 5 00:00:11,200 --> 00:00:13,119 Speaker 1: very eyes. Of course, we look at it through the 6 00:00:13,200 --> 00:00:18,000 Speaker 1: lens of politics, finance, and technology, and uh man, it 7 00:00:18,120 --> 00:00:20,800 Speaker 1: is a fast changing world. We can see the world 8 00:00:20,840 --> 00:00:23,440 Speaker 1: literally changing right before our very eyes. And so it's 9 00:00:23,480 --> 00:00:26,680 Speaker 1: important to keep your eye on the ball if you 10 00:00:26,680 --> 00:00:28,920 Speaker 1: want to understand where things are going, if you want 11 00:00:28,960 --> 00:00:31,920 Speaker 1: to anticipate where things go next, so we can navigate 12 00:00:31,960 --> 00:00:35,200 Speaker 1: these the right way. And one of the big things 13 00:00:35,240 --> 00:00:37,720 Speaker 1: about bitcoin and cryptocurrencies that we hear all the time 14 00:00:37,800 --> 00:00:41,760 Speaker 1: is oh, just wait until the government's regulated. Right here. 15 00:00:41,840 --> 00:00:45,840 Speaker 1: That all the time, and everybody's just waiting until it's regulated. 16 00:00:45,840 --> 00:00:49,240 Speaker 1: And I'm like, well, did you realize it's already like 17 00:00:49,520 --> 00:00:53,640 Speaker 1: the most regulated asset that's out there. Most people have 18 00:00:53,680 --> 00:00:55,680 Speaker 1: no idea and they think, oh, just wait, they're going 19 00:00:55,720 --> 00:00:58,800 Speaker 1: to regulate. It's like, it's already, it's already regulated. It's 20 00:00:58,800 --> 00:01:01,120 Speaker 1: already the most regulated asset. So what do I mean 21 00:01:01,120 --> 00:01:05,759 Speaker 1: by that? Well, bitcoin is regulated by the I R S. Right, 22 00:01:06,000 --> 00:01:09,360 Speaker 1: so they have guidance over it. It's regulated by the SEC, 23 00:01:09,920 --> 00:01:16,200 Speaker 1: by the CFTC, Commodities Futures Exchange, it's regulated by fen SEND, 24 00:01:16,440 --> 00:01:20,679 Speaker 1: the Financial Crimes Enforcement Unit UM and so all of 25 00:01:20,680 --> 00:01:24,440 Speaker 1: these federal agencies, all these bodies already regulated bitcoin. You 26 00:01:24,480 --> 00:01:27,800 Speaker 1: don't see that with other assets. So for example, equities 27 00:01:27,840 --> 00:01:29,920 Speaker 1: like a stock for example, is regularly by the SEC, 28 00:01:30,319 --> 00:01:32,680 Speaker 1: but it's not regulated by fence and it's not regulated 29 00:01:32,720 --> 00:01:37,520 Speaker 1: by the CFTC, only by the SEC. But yeah, bitcoin, 30 00:01:37,600 --> 00:01:40,880 Speaker 1: we have every single body, every single regulator, regulatory agency 31 00:01:40,920 --> 00:01:45,759 Speaker 1: has already UM exerted their power over it. And we're 32 00:01:45,800 --> 00:01:48,120 Speaker 1: seeing this more and more, and we're starting to see 33 00:01:48,160 --> 00:01:52,400 Speaker 1: like this power struggle of well, who ultimately is going 34 00:01:52,480 --> 00:01:56,400 Speaker 1: to regulate bitcoin and cryptocurrencies. And so we've started to 35 00:01:56,440 --> 00:02:01,040 Speaker 1: see recently quite a bit, the SEC, Secure, the Exchange Commission, 36 00:02:01,120 --> 00:02:03,680 Speaker 1: headed by Gary Ginsler I started to become much more 37 00:02:03,760 --> 00:02:08,000 Speaker 1: vocal about it. But they're doing it from a place 38 00:02:08,080 --> 00:02:11,480 Speaker 1: of really kind of working behind the eight ball, So 39 00:02:11,560 --> 00:02:14,440 Speaker 1: instead of driving it, they're kind of trying to catch up, 40 00:02:16,000 --> 00:02:18,600 Speaker 1: and by doing that, it's kind of leaving this ambiguous 41 00:02:18,760 --> 00:02:22,760 Speaker 1: tone over it and almost making it so vague that 42 00:02:22,800 --> 00:02:27,320 Speaker 1: it looks like their powers could almost extend to the 43 00:02:27,639 --> 00:02:33,040 Speaker 1: entire space, but the other regulatory agencies maybe aren't okay 44 00:02:33,080 --> 00:02:35,400 Speaker 1: with that, and I think it's time to try to 45 00:02:35,400 --> 00:02:37,799 Speaker 1: get some clarity as to what's going on. And that's 46 00:02:37,840 --> 00:02:40,320 Speaker 1: exactly what we've been seeing. As a matter of fact, 47 00:02:40,440 --> 00:02:44,799 Speaker 1: we see there's a US Senate bill. So the Senate 48 00:02:44,840 --> 00:02:48,000 Speaker 1: has put a bill together that will give the CFTC. 49 00:02:48,200 --> 00:02:51,760 Speaker 1: Remember that's the commodities the futures exchange give the CFTC 50 00:02:52,160 --> 00:02:55,880 Speaker 1: crypto market oversight, but it doesn't say how much. So 51 00:02:55,919 --> 00:02:57,720 Speaker 1: the Senate is trying to come forward and say, hang on, 52 00:02:57,800 --> 00:02:59,440 Speaker 1: hang on, hang on, like you guys are making this 53 00:02:59,440 --> 00:03:01,160 Speaker 1: way too mess way too difficult. We need to get 54 00:03:01,160 --> 00:03:03,640 Speaker 1: this cleaned up, clarified so we can move forward. So 55 00:03:03,680 --> 00:03:05,560 Speaker 1: he said that this, the Senate bill they're trying to 56 00:03:05,560 --> 00:03:08,800 Speaker 1: put through, would give it to the CFTC. That's what 57 00:03:08,840 --> 00:03:11,840 Speaker 1: they're saying. The measure would make the Commodity Futures Trading 58 00:03:11,880 --> 00:03:16,320 Speaker 1: Commission the watchdog for most that's a keyword most of 59 00:03:16,360 --> 00:03:19,320 Speaker 1: the market. But it doesn't define whether tokens are securities 60 00:03:19,440 --> 00:03:22,880 Speaker 1: or commodities, and so that is the crux of the argument. 61 00:03:23,840 --> 00:03:29,640 Speaker 1: Are token securities or are they commodities? So um, Gary Gains, 62 00:03:29,639 --> 00:03:34,120 Speaker 1: the sec has been pretty clear. Um, it's been and 63 00:03:34,200 --> 00:03:36,840 Speaker 1: before him, his predecessors, UM, it's been pretty clear clear 64 00:03:36,880 --> 00:03:39,600 Speaker 1: that bitcoin is a commodity. Bitcoin is not a security. 65 00:03:39,600 --> 00:03:42,720 Speaker 1: He doesn't meet a neither criteria of commodity. UM doesn't 66 00:03:42,720 --> 00:03:45,400 Speaker 1: mean to how he tests, which is the test they 67 00:03:45,400 --> 00:03:50,040 Speaker 1: would define test testacy whether it is a commodity or security. 68 00:03:51,720 --> 00:03:56,800 Speaker 1: They thought ethereum, they said that Ethereum probably was a security, 69 00:03:56,840 --> 00:04:00,280 Speaker 1: but then could have evolved into a commodity. But now 70 00:04:00,360 --> 00:04:02,200 Speaker 1: Gary Gains are starting to say that maybe I don't know, 71 00:04:02,280 --> 00:04:04,920 Speaker 1: bigoin could still be a security. And then he said 72 00:04:04,960 --> 00:04:08,120 Speaker 1: pretty much every other token is a security. Now they 73 00:04:08,160 --> 00:04:10,680 Speaker 1: haven't actually put out formal guidance on this. Of course, 74 00:04:10,680 --> 00:04:13,120 Speaker 1: we're starting to see some problems that coin bases going 75 00:04:13,200 --> 00:04:14,760 Speaker 1: to deal with, so we're gonna see how this shakes out. 76 00:04:14,840 --> 00:04:17,880 Speaker 1: But that's the crux of the argument. If it's a commodity, 77 00:04:18,080 --> 00:04:20,760 Speaker 1: then it goes to c f TC. If it's a security, 78 00:04:20,880 --> 00:04:24,360 Speaker 1: then it goes to Security and Exchange Commission. It says, 79 00:04:24,360 --> 00:04:28,120 Speaker 1: you're the latest US legislative effort to steer most crypto 80 00:04:28,200 --> 00:04:32,200 Speaker 1: oversight to the CFTC has a bipartisan support that means 81 00:04:32,240 --> 00:04:35,040 Speaker 1: both sides of the aisle support that, but does little 82 00:04:35,080 --> 00:04:38,080 Speaker 1: to answer the crypto industry's top question, which is what's 83 00:04:38,080 --> 00:04:41,839 Speaker 1: the top question? What makes a token a security or 84 00:04:41,880 --> 00:04:45,479 Speaker 1: a commodity. Now, again, we have pretty clear guidance on 85 00:04:45,480 --> 00:04:47,080 Speaker 1: what a security is. We have the how he test. 86 00:04:47,279 --> 00:04:50,480 Speaker 1: The problem is we have a hundred year old rule 87 00:04:51,360 --> 00:04:56,320 Speaker 1: trying to fit a brand new technology that's a lot 88 00:04:56,360 --> 00:04:58,000 Speaker 1: of things that we don't even know what it is yet. 89 00:04:58,040 --> 00:04:59,960 Speaker 1: And so the problem is that you're using this old, 90 00:05:00,080 --> 00:05:02,960 Speaker 1: outdated scale to try to measure something that doesn't neatly 91 00:05:03,040 --> 00:05:07,280 Speaker 1: fit into that um and it says the legislation from 92 00:05:07,279 --> 00:05:10,400 Speaker 1: the leaders of the Senates Um Committee would require crypto 93 00:05:10,440 --> 00:05:13,640 Speaker 1: firms involved in the trading of assets like bitcoin and 94 00:05:13,640 --> 00:05:17,280 Speaker 1: ethereum to register with the CFTC as their primary regulator, 95 00:05:17,760 --> 00:05:20,599 Speaker 1: something industry leaders such as FTX co founder Sam bankman 96 00:05:20,680 --> 00:05:22,920 Speaker 1: Fried are cheering from the sidelines because they all want 97 00:05:23,000 --> 00:05:25,840 Speaker 1: some sort of clarity. Look, we can't be hearing from 98 00:05:25,839 --> 00:05:27,640 Speaker 1: both of you. It's like a like a child having 99 00:05:27,640 --> 00:05:29,560 Speaker 1: to two parents, and one parents says yes you can 100 00:05:29,640 --> 00:05:31,159 Speaker 1: do this, and the other parents says, no, you can't, 101 00:05:31,680 --> 00:05:34,279 Speaker 1: like we need we need we need clarity, we need uniformity, 102 00:05:34,320 --> 00:05:36,640 Speaker 1: we need to know what the deal is. It says, 103 00:05:36,680 --> 00:05:40,600 Speaker 1: the bill would grant expanded authority to the CFTC to 104 00:05:40,760 --> 00:05:43,960 Speaker 1: oversee crypto spot markets. It relies on the courts and 105 00:05:44,000 --> 00:05:47,440 Speaker 1: the Securities Exchange Commission to set the boundaries for which 106 00:05:47,440 --> 00:05:50,480 Speaker 1: tokens may be considered a commodity. So the problem is 107 00:05:50,480 --> 00:05:54,359 Speaker 1: is that we're trying to get this bitcoin um spot market. 108 00:05:54,720 --> 00:05:56,800 Speaker 1: We want to be able to have these new e 109 00:05:56,920 --> 00:05:59,480 Speaker 1: t f and they keep betting shot down, shotdown, shot down, 110 00:05:59,760 --> 00:06:03,800 Speaker 1: but want to grant this to the CFTC as opposed 111 00:06:03,839 --> 00:06:06,599 Speaker 1: to the SEC. I said, right now, there's really a 112 00:06:06,600 --> 00:06:09,880 Speaker 1: patchwork of state regulators and no federal agency to conduct 113 00:06:10,000 --> 00:06:14,480 Speaker 1: oversight over the cryptocurrencies, and we know that needs to change. 114 00:06:14,520 --> 00:06:22,159 Speaker 1: And so that's exactly what they're trying to change. Um Now, 115 00:06:22,360 --> 00:06:24,520 Speaker 1: it's not just in the United States, they're trying to 116 00:06:24,560 --> 00:06:27,000 Speaker 1: do this. As a matter of fact, we see this 117 00:06:27,080 --> 00:06:30,679 Speaker 1: happening overseas as well, of course, in the in Europe 118 00:06:30,720 --> 00:06:33,080 Speaker 1: and the European Union as well as the UK. They've 119 00:06:33,080 --> 00:06:35,600 Speaker 1: been really trying to figure out what they want to 120 00:06:35,640 --> 00:06:38,839 Speaker 1: do with cryptocurrencies as a as a category, trying to 121 00:06:38,839 --> 00:06:40,800 Speaker 1: pass all types of new laws on the way as 122 00:06:40,839 --> 00:06:43,320 Speaker 1: you can take custody of it and so many other things. 123 00:06:43,920 --> 00:06:45,560 Speaker 1: But there's a new piece of news that came out 124 00:06:45,560 --> 00:06:47,800 Speaker 1: this week as well which says Law Commission of England 125 00:06:47,960 --> 00:06:52,080 Speaker 1: from the UK proposes new form of property for bitcoin. 126 00:06:52,120 --> 00:06:55,120 Speaker 1: The proposal from England's Law Commission outlines a new form 127 00:06:55,160 --> 00:06:59,080 Speaker 1: of property for digital assets um and a framework for 128 00:06:59,240 --> 00:07:02,920 Speaker 1: legal seedings. And so what they're looking to do is 129 00:07:02,920 --> 00:07:06,280 Speaker 1: is something similar. They want to have a new category 130 00:07:06,320 --> 00:07:09,920 Speaker 1: of property, which remember property would be a commodity, not 131 00:07:10,000 --> 00:07:14,240 Speaker 1: a security for that encompasses digital assets as it's such 132 00:07:14,240 --> 00:07:16,880 Speaker 1: as bitcoin, and it could change the way United Kingdom 133 00:07:16,960 --> 00:07:21,000 Speaker 1: interacts with and recognizes bitcoin, all right, And so they're 134 00:07:21,040 --> 00:07:23,880 Speaker 1: trying to reform this legal structure. So again we have 135 00:07:23,960 --> 00:07:27,560 Speaker 1: these old, outdated laws a hundred years old, and it's 136 00:07:27,600 --> 00:07:31,480 Speaker 1: trying to somehow come up with guidance or regulations on 137 00:07:31,560 --> 00:07:36,640 Speaker 1: brand new technology. That's neither of those things. Sure, it's 138 00:07:36,680 --> 00:07:39,080 Speaker 1: it's kind of like this, yes, but it's also kind 139 00:07:39,080 --> 00:07:40,800 Speaker 1: of like this, And it's also kind of like this, 140 00:07:40,880 --> 00:07:42,040 Speaker 1: And I guess you could look at that way, but 141 00:07:42,080 --> 00:07:44,200 Speaker 1: you can also look at this way. So it doesn't 142 00:07:44,440 --> 00:07:48,560 Speaker 1: neatly fit into any one of these packages. And in 143 00:07:48,600 --> 00:07:53,560 Speaker 1: my opinion, it's a massive mistake to try to regulate 144 00:07:53,600 --> 00:07:56,560 Speaker 1: it with a hundred year old thinking, because again, we 145 00:07:56,560 --> 00:07:58,840 Speaker 1: didn't even have the Internet back then. We didn't have 146 00:07:58,840 --> 00:08:01,120 Speaker 1: any type of communication back in really right, and so 147 00:08:01,360 --> 00:08:04,800 Speaker 1: we didn't have the Internet. We certainly didn't have, you know, 148 00:08:04,960 --> 00:08:07,560 Speaker 1: new forms of communication that we have with the internet. 149 00:08:07,560 --> 00:08:11,080 Speaker 1: We didn't have new forms of money, new forms of value, 150 00:08:12,160 --> 00:08:15,320 Speaker 1: and we do today. The other problem that I have 151 00:08:15,560 --> 00:08:17,920 Speaker 1: is trying to take those old regulations and try to 152 00:08:17,960 --> 00:08:21,160 Speaker 1: apply them to brand new technologies. Is it boxes them 153 00:08:21,200 --> 00:08:24,960 Speaker 1: in so new technologies like when when when the when 154 00:08:24,960 --> 00:08:28,360 Speaker 1: the electricity first came out, the first application of electricity 155 00:08:28,400 --> 00:08:31,800 Speaker 1: was a light bulb, So okay, so electricity can only 156 00:08:31,920 --> 00:08:35,240 Speaker 1: be a light bulb, then well can it also power 157 00:08:35,320 --> 00:08:38,440 Speaker 1: my house? And could it also charged my vehicle? Like, no, 158 00:08:38,600 --> 00:08:40,240 Speaker 1: it's only for a light bulb, that's all it is. 159 00:08:40,280 --> 00:08:41,480 Speaker 1: And so that's kind of what they're trying to do. 160 00:08:41,520 --> 00:08:44,800 Speaker 1: They're trying to take this old, outdated thinking model years 161 00:08:44,800 --> 00:08:47,520 Speaker 1: ago and then apply it to a brand of technology 162 00:08:47,559 --> 00:08:50,680 Speaker 1: that would then box it in and limit its potential. 163 00:08:51,240 --> 00:08:53,959 Speaker 1: We don't know the full potential of what bitcoin and 164 00:08:53,960 --> 00:08:57,880 Speaker 1: cryptocurrencies can do at this point, and we'd certainly like 165 00:08:57,960 --> 00:08:59,600 Speaker 1: to find out. Now. They may not want to find 166 00:08:59,600 --> 00:09:02,320 Speaker 1: out because as they're afraid. We've seen Christine Leguard come 167 00:09:02,320 --> 00:09:05,640 Speaker 1: out and say that it's a innovation is a threat. 168 00:09:05,920 --> 00:09:09,760 Speaker 1: She said, innovation is a threat to our financial stability. 169 00:09:09,800 --> 00:09:12,000 Speaker 1: But we can see here in the United States US 170 00:09:12,040 --> 00:09:14,960 Speaker 1: Senate bill is trying to redefine it, give it some clarity. 171 00:09:15,320 --> 00:09:18,319 Speaker 1: The UK is doing the same thing, trying to um, 172 00:09:18,360 --> 00:09:21,959 Speaker 1: as they say, clarify a new form of property for bitcoin. 173 00:09:22,080 --> 00:09:25,280 Speaker 1: So UM, I would love to see the government just 174 00:09:25,320 --> 00:09:27,840 Speaker 1: stay out of it, but that's not the case, UM, 175 00:09:27,880 --> 00:09:29,760 Speaker 1: But maybe this will. You're listening to the Mark Ma 176 00:09:29,840 --> 00:09:32,600 Speaker 1: Show talking about the decentralized revolution. I'll be back with 177 00:09:32,600 --> 00:09:34,760 Speaker 1: more in a minute. Don't go away, all right, Welcome back. 178 00:09:34,760 --> 00:09:36,760 Speaker 1: You are listening to the Mark Ma Show. We're talking 179 00:09:36,800 --> 00:09:39,280 Speaker 1: about the decentralized revolution that the world is going through 180 00:09:39,360 --> 00:09:41,720 Speaker 1: right now. Of course, we can see it everywhere we look. 181 00:09:42,200 --> 00:09:46,080 Speaker 1: Central planning, it's causing lots of problems, has started to 182 00:09:46,080 --> 00:09:47,760 Speaker 1: fail right before our very eyes, and at that very 183 00:09:47,880 --> 00:09:50,360 Speaker 1: same time, we have a new technology that's given us 184 00:09:50,360 --> 00:09:53,079 Speaker 1: what we need, the ability to decentralize everything. Of course 185 00:09:53,120 --> 00:09:56,240 Speaker 1: we're talking about bitcoin and today, uh, you know, we're 186 00:09:56,280 --> 00:09:58,040 Speaker 1: going through some of the biggest news stories that have 187 00:09:58,080 --> 00:10:01,960 Speaker 1: come out this week, and there has been plenty of them, 188 00:10:02,200 --> 00:10:04,720 Speaker 1: but I like this one article that came out I 189 00:10:04,760 --> 00:10:07,240 Speaker 1: saw here is written by Jamison Lop He's the co 190 00:10:07,280 --> 00:10:10,280 Speaker 1: founder and chief technology officer of a bitcoin security company 191 00:10:10,280 --> 00:10:13,680 Speaker 1: called casa UM, and he is someone who's been around 192 00:10:13,679 --> 00:10:15,960 Speaker 1: the bitcoin space for a really long time. He previously 193 00:10:15,960 --> 00:10:19,960 Speaker 1: served as a software engineer at bitco and he's been 194 00:10:20,080 --> 00:10:22,600 Speaker 1: in the space for a long time writing about bitcoin 195 00:10:22,800 --> 00:10:26,280 Speaker 1: and cipher punks and and so forth. And he put 196 00:10:26,320 --> 00:10:27,920 Speaker 1: on an article this week I thought was pretty good, 197 00:10:28,920 --> 00:10:32,760 Speaker 1: and it's titled what is Crypto's Downfall? And he says 198 00:10:32,800 --> 00:10:38,160 Speaker 1: it's the complexity. So the complexity is the downfall of 199 00:10:38,280 --> 00:10:40,880 Speaker 1: crypto right now. Now, I've been talking a lot about 200 00:10:41,120 --> 00:10:44,480 Speaker 1: this evolutionary process that happens, and so just because something 201 00:10:44,600 --> 00:10:46,640 Speaker 1: is difficult in the beginning doesn't mean it will always 202 00:10:46,640 --> 00:10:49,160 Speaker 1: be difficult. In the very beginning, in the early nineties, 203 00:10:49,200 --> 00:10:51,439 Speaker 1: it was very difficult to get your computer to go online. 204 00:10:51,520 --> 00:10:53,920 Speaker 1: It's very difficult to go online. Of course today it's easy, 205 00:10:54,080 --> 00:10:55,760 Speaker 1: right all phones are just connected to hit a button 206 00:10:55,800 --> 00:10:57,679 Speaker 1: in your on your online, but it's very difficult in 207 00:10:57,720 --> 00:10:59,719 Speaker 1: the beginning. It doesn't mean it will always be that way. 208 00:10:59,720 --> 00:11:03,199 Speaker 1: But he saying that the complexity could be the downfall. 209 00:11:04,480 --> 00:11:06,880 Speaker 1: And he's saying, how, um, you know, in in a 210 00:11:06,880 --> 00:11:10,240 Speaker 1: lot of financial markets, we've seen a lot of values 211 00:11:10,320 --> 00:11:13,280 Speaker 1: plunged this year. In the bitcoin and cryptocurrency space, we 212 00:11:13,320 --> 00:11:16,000 Speaker 1: saw that happen big time. I've talked about that extensively 213 00:11:16,040 --> 00:11:19,240 Speaker 1: on this channel. Uh. Starting with Terror Luna and the 214 00:11:19,320 --> 00:11:21,480 Speaker 1: terror Luna stable coin blew up and then everything kind 215 00:11:21,480 --> 00:11:26,640 Speaker 1: of dominoed from there. Um. But as these things happen, um, 216 00:11:26,679 --> 00:11:28,280 Speaker 1: it caused a lot of problems and a lot of 217 00:11:28,400 --> 00:11:31,559 Speaker 1: new people that jump into the space get as we 218 00:11:31,640 --> 00:11:34,280 Speaker 1: would say, wrecked. They didn't know what they were doing. 219 00:11:34,480 --> 00:11:37,120 Speaker 1: They got brought in by greed, they didn't spend the 220 00:11:37,120 --> 00:11:39,560 Speaker 1: time to understand what the differences are, what they're what 221 00:11:39,559 --> 00:11:42,520 Speaker 1: they're putting their money into, and they got wrecked. Um. 222 00:11:42,559 --> 00:11:46,480 Speaker 1: I'll be the first to tell you don't ever buy anything, uh, 223 00:11:46,600 --> 00:11:50,080 Speaker 1: don't ever invest into something that you don't understand. You've 224 00:11:50,080 --> 00:11:52,360 Speaker 1: worked very hard for your money, you should work equally 225 00:11:52,440 --> 00:11:53,959 Speaker 1: hard before you figure out where you want to put 226 00:11:54,000 --> 00:11:56,640 Speaker 1: that money. And he says that the warning signs um 227 00:11:56,840 --> 00:11:59,000 Speaker 1: were there for those of us who have been around 228 00:11:59,040 --> 00:12:01,840 Speaker 1: for more than one market cycle. So what we can 229 00:12:01,840 --> 00:12:05,120 Speaker 1: see is that the price of bitcoin and cryptocurrencies goes 230 00:12:05,200 --> 00:12:06,800 Speaker 1: up and then it comes back down, and we have 231 00:12:06,880 --> 00:12:10,040 Speaker 1: these long bear markets, or these cold winters as we 232 00:12:10,080 --> 00:12:12,920 Speaker 1: call them. So, for example, we saw bitcoin run up 233 00:12:12,920 --> 00:12:15,200 Speaker 1: from a thousand dollars in the beginning of twenty seventeen 234 00:12:15,240 --> 00:12:17,600 Speaker 1: to almost twenty thousand dollars by the end of twenty seventeen, 235 00:12:18,200 --> 00:12:22,040 Speaker 1: and then two thousand eighteen, two thousand nineteen, and into 236 00:12:22,040 --> 00:12:24,800 Speaker 1: two thousand twenty, it just did nothing. And as a 237 00:12:24,800 --> 00:12:27,240 Speaker 1: matter of fact, it went lower, lower, lower, from twenty thousand, 238 00:12:27,559 --> 00:12:30,360 Speaker 1: dropping as low as almost about four thousands, just below 239 00:12:30,400 --> 00:12:33,920 Speaker 1: four thousand dollars. So those of us who have been 240 00:12:33,920 --> 00:12:38,320 Speaker 1: around for more than one market cycle, like me, were 241 00:12:38,440 --> 00:12:40,720 Speaker 1: we're we're kind of used to this. We've seen this happen. 242 00:12:40,720 --> 00:12:42,920 Speaker 1: It doesn't make it easier, but for people that have 243 00:12:43,040 --> 00:12:45,080 Speaker 1: just jumped in, they don't understand that. And he says 244 00:12:45,120 --> 00:12:47,360 Speaker 1: that the reality is that each project is its own 245 00:12:47,480 --> 00:12:50,360 Speaker 1: unique animal. Not all of them are built to withstand 246 00:12:50,400 --> 00:12:54,640 Speaker 1: the myrid threats that lie ahead. So each of these 247 00:12:54,640 --> 00:12:59,000 Speaker 1: projects has their own attack vectors. They're all projects, and 248 00:12:59,040 --> 00:13:01,920 Speaker 1: they're all experience mental, and there's lots of problems that happened, 249 00:13:02,920 --> 00:13:07,120 Speaker 1: and he says that um. He says that what's the 250 00:13:07,120 --> 00:13:11,560 Speaker 1: difference of experiments, pipe dreams and scams. Says when Bitcoin 251 00:13:11,600 --> 00:13:13,280 Speaker 1: started in two thousand nine, it was a legal all 252 00:13:13,320 --> 00:13:16,160 Speaker 1: on its own UM. Since then it's emerges the store 253 00:13:16,240 --> 00:13:19,920 Speaker 1: value since their resistant network UM. The market cap got 254 00:13:19,960 --> 00:13:24,000 Speaker 1: up to a trillion dollars even with the crash. Bitcoin's 255 00:13:24,000 --> 00:13:28,679 Speaker 1: potential seems really bright. But he says the problem is 256 00:13:28,720 --> 00:13:30,760 Speaker 1: all these projects that have followed, there's more than twenty 257 00:13:30,800 --> 00:13:35,520 Speaker 1: thou cryptocurrencies, digital assis, tokens, projects, etcetera, all promised to 258 00:13:35,559 --> 00:13:39,840 Speaker 1: be the future of finance, and each takes some elements 259 00:13:40,000 --> 00:13:46,000 Speaker 1: from Bitcoin's design, you know, blockchain, decentralization, economics, mining, cryptography, 260 00:13:46,040 --> 00:13:49,160 Speaker 1: but then they all alter them in some way. So 261 00:13:49,200 --> 00:13:50,880 Speaker 1: we have something that we know that works, and now 262 00:13:50,920 --> 00:13:53,480 Speaker 1: everything else is an experimentation off of that. So we're 263 00:13:53,520 --> 00:13:56,000 Speaker 1: gonna try something different, which is going to give us 264 00:13:56,280 --> 00:13:58,719 Speaker 1: trade offs. It's gonna give us more of one thing, 265 00:13:58,720 --> 00:14:01,760 Speaker 1: but it's gonna give us less of another. Um. As 266 00:14:01,760 --> 00:14:04,240 Speaker 1: a technologist, he says, I appreciate the experimentation that takes 267 00:14:04,240 --> 00:14:08,080 Speaker 1: place in crypto. I'm less interested in the hype. He 268 00:14:08,120 --> 00:14:11,079 Speaker 1: says that new projects are always risky, regardless if the 269 00:14:11,120 --> 00:14:14,160 Speaker 1: people behind them are well intentioned or not. There's a 270 00:14:14,160 --> 00:14:17,800 Speaker 1: website called dead coins dot com and attracts projects that 271 00:14:17,800 --> 00:14:21,239 Speaker 1: have folded up and currently lists over almost two thousand 272 00:14:21,560 --> 00:14:24,200 Speaker 1: coins that have just folded up and are gone. A 273 00:14:24,200 --> 00:14:26,240 Speaker 1: lot of them are also gone, they just don't actually 274 00:14:26,800 --> 00:14:30,160 Speaker 1: report that they are, which isn't surprising because we know 275 00:14:30,200 --> 00:14:32,840 Speaker 1: what nine out of ten businesses failed, right, um. But 276 00:14:32,840 --> 00:14:37,040 Speaker 1: it says that most projects will be unrealistically optimistic. But 277 00:14:37,080 --> 00:14:38,720 Speaker 1: the only way to test if an idea works is 278 00:14:38,760 --> 00:14:41,360 Speaker 1: to try to build it and see what happens. And 279 00:14:41,400 --> 00:14:44,440 Speaker 1: that's kind of what's happening. So all of these projects launch, 280 00:14:44,720 --> 00:14:47,080 Speaker 1: they raise a bunch of money, they get everybody hyped, 281 00:14:47,240 --> 00:14:49,360 Speaker 1: he says, he's less interested in the hype, hyped up, 282 00:14:49,400 --> 00:14:53,080 Speaker 1: and then they see if it works, and unfortunately, in 283 00:14:53,160 --> 00:14:56,000 Speaker 1: most cases, it just doesn't. He says, when people get 284 00:14:56,000 --> 00:14:59,880 Speaker 1: interested in quote cryptocurrency. They often feel compelled like they 285 00:15:00,120 --> 00:15:03,800 Speaker 1: missed the boat on bitcoin, and so they're trying to 286 00:15:03,840 --> 00:15:07,200 Speaker 1: find quote the next bitcoin whatever that means. I've made 287 00:15:07,240 --> 00:15:10,600 Speaker 1: a video. You could search Mark Moss, Mark Moss. Uh, 288 00:15:10,880 --> 00:15:13,720 Speaker 1: the next bitcoin is on my YouTube channel, and I 289 00:15:13,720 --> 00:15:17,120 Speaker 1: answered that question. The next bitcoin is bitcoin. But everyone's 290 00:15:17,160 --> 00:15:19,600 Speaker 1: trying to find that they missed the boat. And it 291 00:15:19,640 --> 00:15:21,880 Speaker 1: says entrepreneurs quickly wised up to the fact that that 292 00:15:22,040 --> 00:15:26,920 Speaker 1: if they issued new coins UM, then they could try 293 00:15:26,960 --> 00:15:29,720 Speaker 1: to capture on that sentiment of these people that want 294 00:15:29,760 --> 00:15:33,320 Speaker 1: to get that UM next bitcoin. What does that mean? 295 00:15:33,360 --> 00:15:35,920 Speaker 1: It's too late. I mean, I don't know that I've 296 00:15:35,920 --> 00:15:38,360 Speaker 1: missed the boat. I don't know what that means. Bitcoin 297 00:15:38,440 --> 00:15:40,320 Speaker 1: still has so much potential. As a matter of fact, 298 00:15:40,360 --> 00:15:42,640 Speaker 1: I believe it's a better risk adjusted return today than 299 00:15:42,680 --> 00:15:48,120 Speaker 1: it was when I got in UM the sirens song 300 00:15:48,320 --> 00:15:51,000 Speaker 1: of centralization. So he says, if you've been the victim 301 00:15:51,000 --> 00:15:53,280 Speaker 1: of one of these schemes, I suggest you're using I 302 00:15:53,320 --> 00:15:56,120 Speaker 1: suggest using this bear market as a time to reflect 303 00:15:56,520 --> 00:16:00,680 Speaker 1: and learn about the underlying technologies and start with bitcoin, 304 00:16:00,840 --> 00:16:04,640 Speaker 1: because bitcoin has the proven track record. All right, So 305 00:16:05,120 --> 00:16:06,840 Speaker 1: while we're in this bear market. Like I said, we 306 00:16:06,840 --> 00:16:12,480 Speaker 1: saw in most is take good time to learn, invest 307 00:16:12,520 --> 00:16:16,440 Speaker 1: into your own education. Research this start with bitcoin. Bitcoin 308 00:16:16,520 --> 00:16:22,320 Speaker 1: has the proven track record, UM and uh. But the 309 00:16:22,720 --> 00:16:24,760 Speaker 1: real thing, and this is what I say, I'm not 310 00:16:24,880 --> 00:16:28,680 Speaker 1: not quite enough the article. The real innovation here, the 311 00:16:28,760 --> 00:16:33,160 Speaker 1: real technological revolution that's happening is decentralization. Which is why 312 00:16:33,160 --> 00:16:36,800 Speaker 1: I talk about the decentralized revolution. Every day is decentralization 313 00:16:36,960 --> 00:16:40,680 Speaker 1: versus centralization. So what happened with the Internet is the 314 00:16:40,680 --> 00:16:45,640 Speaker 1: Internet UM allowed us to have all these decentralized voices. 315 00:16:46,000 --> 00:16:49,200 Speaker 1: So now anybody can create content, anybody could post stuff, 316 00:16:49,200 --> 00:16:51,400 Speaker 1: we can communicate with those different people. But at the 317 00:16:51,440 --> 00:16:54,560 Speaker 1: same time, it also centralized everything because in the beginning, 318 00:16:54,600 --> 00:16:57,000 Speaker 1: as I said, it was very difficult. So to go 319 00:16:57,040 --> 00:16:59,880 Speaker 1: online was very difficult. To build a website was very difficult. 320 00:16:59,880 --> 00:17:04,960 Speaker 1: To a matter of fact, UM I had a buddy 321 00:17:05,280 --> 00:17:07,639 Speaker 1: who had this great idea to build this new internet business, 322 00:17:07,640 --> 00:17:09,840 Speaker 1: a dot com business. At the time, it was going 323 00:17:09,920 --> 00:17:12,320 Speaker 1: to be a website that allowed you to UM go 324 00:17:12,480 --> 00:17:16,600 Speaker 1: shopping and then get a percentage of all your purchases 325 00:17:16,960 --> 00:17:19,040 Speaker 1: and they would be donated to a charity of your choice. 326 00:17:19,600 --> 00:17:22,320 Speaker 1: Now that doesn't seem like a unique idea today in 327 00:17:22,359 --> 00:17:26,240 Speaker 1: two thousand two, but I can assure you it was. 328 00:17:26,280 --> 00:17:28,080 Speaker 1: I don't think there was anybody doing it at that time. 329 00:17:28,720 --> 00:17:30,800 Speaker 1: And so man, we we just knew. We put this 330 00:17:30,880 --> 00:17:32,639 Speaker 1: dot com on this business and we launched this. We're 331 00:17:32,640 --> 00:17:34,359 Speaker 1: going to raise so much money. We're gonna get rich. 332 00:17:35,240 --> 00:17:36,760 Speaker 1: But the point of the story is that it was 333 00:17:36,800 --> 00:17:40,560 Speaker 1: not easy to build a website back then. There was 334 00:17:40,680 --> 00:17:43,679 Speaker 1: no Amazon Web Services, there was no cloud hosting, there 335 00:17:43,720 --> 00:17:46,000 Speaker 1: was no host cater there's no none of that. So 336 00:17:46,040 --> 00:17:48,400 Speaker 1: if you wanted to if you wanted to have a website, 337 00:17:48,680 --> 00:17:50,720 Speaker 1: you had to host it yourself, and we had to 338 00:17:50,760 --> 00:17:54,520 Speaker 1: build our own servers in my office. I'm gonna explain 339 00:17:54,560 --> 00:17:56,760 Speaker 1: more to you about that and talk about this decentralization. 340 00:17:57,560 --> 00:17:59,120 Speaker 1: Um in a minute when I get back. You're listening 341 00:17:59,200 --> 00:18:03,120 Speaker 1: to the Mark Moa show talking about Yes, the decentralized 342 00:18:03,119 --> 00:18:05,479 Speaker 1: revolution explained to us. You can understand what's going on 343 00:18:05,560 --> 00:18:09,400 Speaker 1: play by play. Um, we're talking about this article that's 344 00:18:09,400 --> 00:18:12,520 Speaker 1: written by Jamison Lop talking about what what crypto's downfall 345 00:18:12,560 --> 00:18:15,440 Speaker 1: being its complexity. I'll be back with that and more 346 00:18:15,440 --> 00:18:17,760 Speaker 1: in a minute. Don't go away. I'll be back all right, 347 00:18:17,760 --> 00:18:19,520 Speaker 1: welcome back. You are listening to the Mark Moa show. 348 00:18:19,520 --> 00:18:21,840 Speaker 1: We're talking about the decentralized revolution, talking about the way 349 00:18:21,880 --> 00:18:25,880 Speaker 1: the world is changing right before our very eyes. Of course, 350 00:18:25,960 --> 00:18:29,200 Speaker 1: the world is naturally on this pendulum swinging from centralization 351 00:18:29,240 --> 00:18:32,600 Speaker 1: to decentralization. And now right when the world is when 352 00:18:32,600 --> 00:18:36,120 Speaker 1: that pendulum is swinging back, we've been given a technological 353 00:18:36,160 --> 00:18:38,440 Speaker 1: revolution on a fifty year time frame that give us 354 00:18:39,000 --> 00:18:42,720 Speaker 1: the decentralized technology. So before the break, was in the 355 00:18:42,720 --> 00:18:44,520 Speaker 1: middle of the story and I was talking about how 356 00:18:44,680 --> 00:18:46,879 Speaker 1: um in nine nine we started this business and it 357 00:18:47,000 --> 00:18:49,520 Speaker 1: was this this web business, and there was no cloud hosting, 358 00:18:49,560 --> 00:18:51,679 Speaker 1: so we had to set up in my office our 359 00:18:51,760 --> 00:18:55,320 Speaker 1: own web servers. And so I had this rack and 360 00:18:55,359 --> 00:18:57,280 Speaker 1: it was sitting in the corner of my office and 361 00:18:57,520 --> 00:18:59,199 Speaker 1: we had these two servers in there, and they had 362 00:18:59,240 --> 00:19:02,440 Speaker 1: these hard drives are called RAID five. They're hot swappable. 363 00:19:02,880 --> 00:19:04,600 Speaker 1: You could just pull lever, pull the hard drive out, 364 00:19:04,640 --> 00:19:06,160 Speaker 1: swap another one. And you had to do that because 365 00:19:06,200 --> 00:19:07,959 Speaker 1: the server had to be up all the time and 366 00:19:08,000 --> 00:19:09,679 Speaker 1: if anything happened, you need be able to just swap 367 00:19:09,680 --> 00:19:12,040 Speaker 1: it out real quickly. There was all redundant et cetera. 368 00:19:12,480 --> 00:19:15,159 Speaker 1: So it's very difficult to get a website going at 369 00:19:15,160 --> 00:19:17,320 Speaker 1: that time. Today super easy, right, you go on Wix 370 00:19:17,320 --> 00:19:20,480 Speaker 1: and just click a button, have a website. Simple. Um, 371 00:19:20,520 --> 00:19:22,520 Speaker 1: So it got easier every time. But also what happened 372 00:19:22,520 --> 00:19:24,920 Speaker 1: is because it was so hard to run the servers, um, 373 00:19:25,080 --> 00:19:27,879 Speaker 1: Google stepped in and said, we'll be your server for everything. 374 00:19:27,920 --> 00:19:30,399 Speaker 1: We'll run your email and we'll we'll run your docks, 375 00:19:30,440 --> 00:19:34,399 Speaker 1: and we'll run your spreadsheets and we'll run your everything. 376 00:19:34,520 --> 00:19:37,560 Speaker 1: Right and Facebook and now Facebook comes in and we'll 377 00:19:37,560 --> 00:19:39,880 Speaker 1: host your videos and we'll host your pictures. And now 378 00:19:40,280 --> 00:19:42,480 Speaker 1: Google and Facebook bill stepped up to be your I D. 379 00:19:42,880 --> 00:19:44,679 Speaker 1: So now when I log into websites, I can signing 380 00:19:44,680 --> 00:19:46,480 Speaker 1: with my Google I D or signing with my Facebook 381 00:19:46,520 --> 00:19:51,159 Speaker 1: I D. And so the Internet became very centralized. It 382 00:19:51,280 --> 00:19:55,199 Speaker 1: all got centralized because of the trade offs. Right, I 383 00:19:55,240 --> 00:19:58,680 Speaker 1: want convenience, I want speed, I want security. So rather 384 00:19:58,720 --> 00:20:00,439 Speaker 1: than me try to set all the US up on 385 00:20:00,480 --> 00:20:03,560 Speaker 1: my own, I'll just let Google do it for me 386 00:20:03,760 --> 00:20:06,800 Speaker 1: or Facebook do it for me. All right, But just 387 00:20:06,840 --> 00:20:08,560 Speaker 1: because it was difficult than it doesn't mean it was 388 00:20:08,640 --> 00:20:10,840 Speaker 1: It's always gonna be difficult. So now it's much easier 389 00:20:10,880 --> 00:20:14,440 Speaker 1: to run my own um website if I want, et cetera. 390 00:20:14,720 --> 00:20:17,280 Speaker 1: And so we're starting to see this pendulum swing back. 391 00:20:19,200 --> 00:20:23,720 Speaker 1: But what's changing now is back to the centralization. So 392 00:20:23,800 --> 00:20:26,240 Speaker 1: that's the real revolution here. So instead of having one 393 00:20:26,359 --> 00:20:30,280 Speaker 1: database like a Facebook database, now we have many databases. 394 00:20:30,560 --> 00:20:37,640 Speaker 1: That is the difference here. So the real revolution is decentralization. Now, 395 00:20:37,640 --> 00:20:41,560 Speaker 1: in order for something to be decentralized, you can't just 396 00:20:41,600 --> 00:20:43,680 Speaker 1: have one database, you have to have many databases. In 397 00:20:43,840 --> 00:20:47,359 Speaker 1: order for to be really decentralized, everybody should be able 398 00:20:47,400 --> 00:20:51,720 Speaker 1: to run one and that there, to me, is the 399 00:20:51,760 --> 00:20:54,560 Speaker 1: big difference. You need to be able to run a 400 00:20:54,680 --> 00:20:58,840 Speaker 1: node to participate in the network, and that's where the 401 00:20:58,880 --> 00:21:02,520 Speaker 1: problem is. Big has a very small database. Anybody with 402 00:21:02,640 --> 00:21:05,360 Speaker 1: a five year old laptop can download the entire database 403 00:21:05,440 --> 00:21:10,040 Speaker 1: and run a node, but the other cryptocurrencies can't do that. 404 00:21:10,480 --> 00:21:12,920 Speaker 1: So what happens is there's tradeoff. So over the years, 405 00:21:12,920 --> 00:21:15,439 Speaker 1: many parties have sought to improve upon the Bitcoin design 406 00:21:15,720 --> 00:21:20,000 Speaker 1: in various ways. Some try to increase the number of transactions, 407 00:21:20,720 --> 00:21:25,280 Speaker 1: others went to get faster transactions. A number of projects 408 00:21:25,280 --> 00:21:27,679 Speaker 1: have tried to plug other data from the world world 409 00:21:27,760 --> 00:21:32,800 Speaker 1: into a blockchain to create sophisticated markets like derivatives. These 410 00:21:32,840 --> 00:21:35,320 Speaker 1: efforts have struggled to overtake bitcoin is the dominant store 411 00:21:35,320 --> 00:21:39,960 Speaker 1: of value because they usually introduce some form of centralization. 412 00:21:40,680 --> 00:21:43,560 Speaker 1: Why why does it do that well? Because centralization is 413 00:21:43,680 --> 00:21:48,080 Speaker 1: highly efficient, but it undermines your efforts if your goal 414 00:21:48,200 --> 00:21:52,080 Speaker 1: is to democratize finance and empower individuals. So the real 415 00:21:52,119 --> 00:21:55,480 Speaker 1: revolution is decentralization. But the problem is that every time 416 00:21:55,520 --> 00:21:57,879 Speaker 1: one of one of these people tries to make it faster, 417 00:21:58,240 --> 00:22:00,919 Speaker 1: make it cheaper, make put a bunch of stuff on 418 00:22:01,000 --> 00:22:04,800 Speaker 1: top of it, um, derivatives, etcetera, it starts to centralize it, 419 00:22:04,840 --> 00:22:07,360 Speaker 1: which is exactly what we're trying to get away from. 420 00:22:07,720 --> 00:22:11,560 Speaker 1: Centralization hurts projects because it tends to corrupt incentives for 421 00:22:11,720 --> 00:22:15,400 Speaker 1: their respective communities. For instance, an alt coin project might 422 00:22:15,480 --> 00:22:17,840 Speaker 1: make it hard for everyday users to run a node 423 00:22:18,200 --> 00:22:23,000 Speaker 1: and participate in the network. Mm hmm, exactly, so anyone 424 00:22:23,000 --> 00:22:25,280 Speaker 1: with an old laptop can run that. But can you 425 00:22:25,400 --> 00:22:28,840 Speaker 1: run a node and participate in the network for um, 426 00:22:28,880 --> 00:22:33,400 Speaker 1: ethereum or cardano or x y z fill in the blank, Salana. 427 00:22:33,760 --> 00:22:36,800 Speaker 1: The answer is no. They make it almost impossible to 428 00:22:36,880 --> 00:22:39,960 Speaker 1: run a node and participate in the network, or you 429 00:22:39,960 --> 00:22:44,040 Speaker 1: can create an inner circle of validators as gatekeepers of transactions. 430 00:22:44,080 --> 00:22:47,199 Speaker 1: So um, now they use things called governance, and so 431 00:22:47,280 --> 00:22:50,359 Speaker 1: now they're staking and so now people get to vote, 432 00:22:50,400 --> 00:22:53,960 Speaker 1: and so they can easily create this circle of known 433 00:22:54,040 --> 00:22:58,080 Speaker 1: validators or gatekeepers that can feed into the blockchain, and 434 00:22:58,119 --> 00:23:00,200 Speaker 1: that creates a single point of failure that could upen 435 00:23:00,240 --> 00:23:05,120 Speaker 1: through bribery, collusion, outright attacks, etcetera. So bitcoin success has 436 00:23:05,160 --> 00:23:08,560 Speaker 1: been predicated on its de centralization because you just can 437 00:23:08,560 --> 00:23:10,639 Speaker 1: participate in the network without having to trust one another. 438 00:23:10,720 --> 00:23:15,159 Speaker 1: So bitcoin is open. Anyone can just see that the code. 439 00:23:15,400 --> 00:23:18,679 Speaker 1: It's permission list. You don't need permission to join. Anyone 440 00:23:18,720 --> 00:23:20,720 Speaker 1: can just grab a computer and jump onto the network. 441 00:23:21,520 --> 00:23:25,840 Speaker 1: You don't have to trust anybody. It's trust lists. And 442 00:23:25,880 --> 00:23:28,359 Speaker 1: so because of that, um you don't have to trust 443 00:23:28,440 --> 00:23:32,680 Speaker 1: anybody has to trust um anybody else. You don't have 444 00:23:32,720 --> 00:23:36,439 Speaker 1: to worry about people colluding or you know, collusion on voting. 445 00:23:36,640 --> 00:23:40,040 Speaker 1: Instead you have to trust the network protocol rules, and 446 00:23:40,080 --> 00:23:43,960 Speaker 1: that's it. The decentralization is why bitcoin has grown as 447 00:23:44,000 --> 00:23:47,840 Speaker 1: a form of money. The problem is now getting back 448 00:23:47,880 --> 00:23:51,919 Speaker 1: to the complexity. So the complexity, the complexity is the 449 00:23:51,960 --> 00:23:54,359 Speaker 1: problem that seems to hold people off. But again, it's 450 00:23:54,400 --> 00:23:58,440 Speaker 1: not something that just uh starts instantly from day one 451 00:23:58,480 --> 00:24:00,840 Speaker 1: being the easiest. As a matter of fact, it's an 452 00:24:00,880 --> 00:24:04,000 Speaker 1: evolutionary process. We try different things. These things work, things 453 00:24:04,040 --> 00:24:06,840 Speaker 1: things didn't. Let's try something else, we get feedback, etcetera. 454 00:24:08,640 --> 00:24:12,159 Speaker 1: So we want to have something that's simple. The problem 455 00:24:12,240 --> 00:24:17,760 Speaker 1: is the complexity increases the risks that are involved. Complexity 456 00:24:17,760 --> 00:24:20,879 Speaker 1: increases risk for users. So what we're seeing over and 457 00:24:20,920 --> 00:24:25,840 Speaker 1: over and over, for example, is we're seeing um just 458 00:24:25,840 --> 00:24:28,520 Speaker 1: just this week, we saw a massive hacks happening on 459 00:24:28,560 --> 00:24:32,679 Speaker 1: the Salona blockchain. Again for who knows how many times 460 00:24:32,720 --> 00:24:37,840 Speaker 1: that's happened because of these complexities. So all these different wallets, 461 00:24:38,200 --> 00:24:41,639 Speaker 1: all these different yield farms that are setting set up, etcetera, 462 00:24:41,760 --> 00:24:46,600 Speaker 1: create all these these uh, these data points that could 463 00:24:46,600 --> 00:24:51,240 Speaker 1: be hacked or what we call attack vectors. Now, the 464 00:24:51,280 --> 00:24:54,280 Speaker 1: way that you would want to solve that is by 465 00:24:54,359 --> 00:24:57,200 Speaker 1: taking custody of it yourself and holding it on your own. Now, 466 00:24:57,480 --> 00:25:00,240 Speaker 1: one of the oldest problems that mankind has had is 467 00:25:00,280 --> 00:25:02,680 Speaker 1: how do I store my wealth? How do I store 468 00:25:02,720 --> 00:25:05,439 Speaker 1: my value in a way that can't be stolen from me? 469 00:25:05,880 --> 00:25:08,000 Speaker 1: And that's one of the things that bitcoin has solved. 470 00:25:08,240 --> 00:25:11,120 Speaker 1: So now bitcoin, I can easily withdraw it from an exchange, 471 00:25:11,119 --> 00:25:13,480 Speaker 1: I can custody it myself, and then I don't have 472 00:25:13,480 --> 00:25:16,280 Speaker 1: to worry about anybody stealing it from me. Another article 473 00:25:16,320 --> 00:25:18,639 Speaker 1: came out this week. They said, but self custody isn't 474 00:25:18,680 --> 00:25:22,600 Speaker 1: for everyone. Um, this, this dream of being your own bank, 475 00:25:22,760 --> 00:25:25,840 Speaker 1: maybe isn't for everybody, it says. A self custody puts 476 00:25:25,840 --> 00:25:28,000 Speaker 1: a lot of responsibility on a user. Many find it 477 00:25:28,119 --> 00:25:34,320 Speaker 1: way too uncomfortable or too hard to handle. Well, again, 478 00:25:34,560 --> 00:25:36,680 Speaker 1: just because it's hard before, it doesn't mean it always 479 00:25:36,720 --> 00:25:38,639 Speaker 1: be hard, it says. Some experts believe that self custody 480 00:25:38,680 --> 00:25:41,199 Speaker 1: is one of the genuine purposes of crypto. The way 481 00:25:41,240 --> 00:25:43,840 Speaker 1: of storing coins is not really suitable for everyone, according 482 00:25:43,880 --> 00:25:46,320 Speaker 1: to an executive from wisdom Tree, and I would I 483 00:25:46,359 --> 00:25:50,159 Speaker 1: would push back on that. Um. So there's a spectrum 484 00:25:50,240 --> 00:25:53,000 Speaker 1: of security. How secure do you want to be? I 485 00:25:53,040 --> 00:25:55,359 Speaker 1: can hold my gold at my house and I can 486 00:25:55,359 --> 00:25:57,880 Speaker 1: put it under my mattress, and you know, most people 487 00:25:57,920 --> 00:25:59,920 Speaker 1: are never going to see it. Most people don't break 488 00:26:00,040 --> 00:26:02,720 Speaker 1: to my house. It's pretty good. If I want to 489 00:26:02,720 --> 00:26:05,000 Speaker 1: get better, I can put it into a safe. If 490 00:26:05,000 --> 00:26:06,440 Speaker 1: I want to get better, I can get a really 491 00:26:06,480 --> 00:26:08,040 Speaker 1: big safe. I want to get even better, I can 492 00:26:08,040 --> 00:26:10,280 Speaker 1: get that safe and I can drill it into the 493 00:26:10,320 --> 00:26:13,400 Speaker 1: foundation of my house. If I want to get even better, 494 00:26:13,480 --> 00:26:15,240 Speaker 1: I could build a dedicated vault. If I want to 495 00:26:15,240 --> 00:26:17,160 Speaker 1: get even better, I could get a dedicated vault with 496 00:26:17,160 --> 00:26:21,040 Speaker 1: with armed guards outside. UM. And you see, so there's 497 00:26:21,119 --> 00:26:23,560 Speaker 1: so it's a spectrum of how you want to secure that. UM. 498 00:26:23,600 --> 00:26:26,080 Speaker 1: You can easily pull your bit coma off on exchange 499 00:26:26,160 --> 00:26:29,280 Speaker 1: and trust it yourself. UM, as easy as you could 500 00:26:29,359 --> 00:26:31,720 Speaker 1: use venmo. If you know how to use venmo, you 501 00:26:31,720 --> 00:26:34,239 Speaker 1: can do it yourself. Now, that might be good for 502 00:26:34,280 --> 00:26:36,600 Speaker 1: a little bit of bitcoin, like it might be good 503 00:26:36,640 --> 00:26:38,680 Speaker 1: for a little bit of golden your mattress. The more 504 00:26:38,760 --> 00:26:42,840 Speaker 1: bitcoin you have, the more you would want to invest 505 00:26:42,920 --> 00:26:44,840 Speaker 1: into your security, just like the more gold you'd have, 506 00:26:44,880 --> 00:26:47,120 Speaker 1: the more you want to invest into security. Uh sort 507 00:26:47,119 --> 00:26:50,760 Speaker 1: of Like I said, UM, but you can start small, 508 00:26:50,920 --> 00:26:53,040 Speaker 1: you can start easy, and you can work your way up. 509 00:26:53,440 --> 00:26:55,040 Speaker 1: And like I said, if you know how to use venmo, 510 00:26:55,119 --> 00:26:56,320 Speaker 1: you can do it. You can go onto the app 511 00:26:56,320 --> 00:26:58,280 Speaker 1: store of your phone and you can download any number 512 00:26:58,280 --> 00:27:01,040 Speaker 1: of wallets for Bitcoin. I like the Moon wallet, like 513 00:27:01,240 --> 00:27:03,600 Speaker 1: Blue wallet. Those are two that I like, but I 514 00:27:03,600 --> 00:27:05,440 Speaker 1: wouldn't hold any more on that than I would carry 515 00:27:05,480 --> 00:27:08,800 Speaker 1: in my wallet, my billfold, does I walk around town? Um? 516 00:27:08,840 --> 00:27:11,960 Speaker 1: The rest you want to put into deeper forms, better 517 00:27:12,000 --> 00:27:14,640 Speaker 1: forms of security, and then I would think of hardware 518 00:27:14,640 --> 00:27:17,919 Speaker 1: wallet's like Treasure or cold card. And then if I 519 00:27:17,960 --> 00:27:19,640 Speaker 1: want to go even bigger than I would think about 520 00:27:19,720 --> 00:27:22,960 Speaker 1: multi signature setups that you could find with cosa that 521 00:27:23,119 --> 00:27:26,240 Speaker 1: like I said, wrote this article, or with unchained capital. 522 00:27:26,680 --> 00:27:29,720 Speaker 1: So those are some things that I would think through. Um, 523 00:27:29,920 --> 00:27:32,120 Speaker 1: hopefully that helps out. You're listening to the Mark Moa Show. 524 00:27:32,119 --> 00:27:36,040 Speaker 1: We're talking about the decentralized Revolution, talking about today this 525 00:27:36,160 --> 00:27:40,720 Speaker 1: evolutionary process of how things go from complex to easy, 526 00:27:40,880 --> 00:27:42,880 Speaker 1: and hopefully that makes sense for you. Like I said, 527 00:27:42,880 --> 00:27:45,000 Speaker 1: if you have this imagination, you can take advantage of 528 00:27:45,000 --> 00:27:46,840 Speaker 1: this today. I got a lot more to cover when 529 00:27:46,840 --> 00:27:48,800 Speaker 1: I get back. It was a busy week, so don't 530 00:27:48,840 --> 00:27:50,920 Speaker 1: go away. I'll be right back, all right, Welcome back. 531 00:27:50,960 --> 00:27:53,159 Speaker 1: You are listening to the markma Show. We are talking 532 00:27:53,200 --> 00:27:56,680 Speaker 1: about the decentralized Revolution, talking about the way the world 533 00:27:56,720 --> 00:27:59,440 Speaker 1: is changing through the lens of politics, finance, and technology. 534 00:27:59,440 --> 00:28:02,520 Speaker 1: Of course we're talking about bitcoin, We're talking about cryptocurrencies 535 00:28:02,520 --> 00:28:05,520 Speaker 1: and what is going on in the world today. And uh, 536 00:28:05,680 --> 00:28:08,080 Speaker 1: we're going through some of the top headlines of this week. 537 00:28:08,119 --> 00:28:10,320 Speaker 1: And it was a busy week. It's been. It's busy 538 00:28:10,359 --> 00:28:12,400 Speaker 1: every week, which is a good thing for me because 539 00:28:12,400 --> 00:28:13,600 Speaker 1: I gotta I got a lot of time to talk 540 00:28:13,600 --> 00:28:17,320 Speaker 1: about this stuff. But man, big news happened this week 541 00:28:17,760 --> 00:28:22,840 Speaker 1: as we saw, um, the two titans, the two big 542 00:28:22,840 --> 00:28:29,439 Speaker 1: heavyweights in their restrictive respective spaces joining together. Now, is 543 00:28:29,440 --> 00:28:31,440 Speaker 1: this a good thing or is it a bad thing? Well, 544 00:28:31,480 --> 00:28:33,920 Speaker 1: I guess it depends on which way that you look 545 00:28:33,920 --> 00:28:37,320 Speaker 1: at this. But the announcement I saw it on every 546 00:28:37,359 --> 00:28:40,240 Speaker 1: new source out there, um on Bloomberg and says that 547 00:28:40,320 --> 00:28:46,720 Speaker 1: black Rock everybody's favorite asset manager nine point five trillion 548 00:28:46,840 --> 00:28:53,840 Speaker 1: dollars in assets. Um, let's see. Yeah, black Rock teams 549 00:28:53,880 --> 00:28:58,200 Speaker 1: up with coin base in the crypto market expansion. This 550 00:28:58,280 --> 00:29:03,360 Speaker 1: partnership will help clients oversee their bitcoin exposure. Um. But 551 00:29:03,720 --> 00:29:05,880 Speaker 1: I said, at the same time, coin basis facing SEC 552 00:29:06,000 --> 00:29:08,480 Speaker 1: probe over tradeing digital tokens. That's that's all. Another story 553 00:29:08,840 --> 00:29:11,440 Speaker 1: of a black Rock Inc. Is partnering with coin based 554 00:29:11,480 --> 00:29:15,600 Speaker 1: Global Ink to make it easier for institutional investors to 555 00:29:15,760 --> 00:29:21,280 Speaker 1: manage and trade bitcoin, taking the world's largest asset manager, 556 00:29:21,600 --> 00:29:27,360 Speaker 1: which is black Rock, into the bitcoin market UM by 557 00:29:27,520 --> 00:29:31,400 Speaker 1: partnering up with coin Base. On that news, coin bases stock. 558 00:29:31,400 --> 00:29:34,640 Speaker 1: Coin bas Is a publicly traded company, and their stock 559 00:29:34,680 --> 00:29:38,600 Speaker 1: has been completely hammered, which I mean it's not just 560 00:29:38,680 --> 00:29:43,080 Speaker 1: coin Basis fault. Um. All of the tech stocks have 561 00:29:43,200 --> 00:29:46,000 Speaker 1: been hammered about the same way. I'm actually I was 562 00:29:46,000 --> 00:29:47,400 Speaker 1: going to try and pull up a chart and then 563 00:29:47,520 --> 00:29:50,720 Speaker 1: have it up and in front of me, so let's 564 00:29:50,720 --> 00:29:52,200 Speaker 1: see if I can get that open while I'm talking 565 00:29:52,200 --> 00:29:55,920 Speaker 1: to you. But on that news, we saw that coin 566 00:29:55,960 --> 00:30:00,600 Speaker 1: Basis stock jumped fifteenth. That's a pretty big MOVI, pretty 567 00:30:00,640 --> 00:30:04,080 Speaker 1: big move. Um. The partnership with the black Rock provides 568 00:30:04,080 --> 00:30:07,320 Speaker 1: some relief for the biggest US crypto trading platform, whose 569 00:30:07,360 --> 00:30:09,560 Speaker 1: stock had lost more than two thirds of its value 570 00:30:09,640 --> 00:30:13,440 Speaker 1: this year through Wednesday. So coin Base went public um 571 00:30:13,440 --> 00:30:15,440 Speaker 1: and it's being traded like a nastac stock, like a 572 00:30:15,520 --> 00:30:19,280 Speaker 1: tech stock, like cryptocurrencies. It was down, um by two thirds. 573 00:30:19,360 --> 00:30:22,760 Speaker 1: I think it was down more than eight percent. I 574 00:30:22,800 --> 00:30:24,400 Speaker 1: think at one point I don't have the chart up 575 00:30:24,400 --> 00:30:28,000 Speaker 1: in front of me. Unfortunately, um so it got hit, 576 00:30:28,240 --> 00:30:31,160 Speaker 1: but now it pumped fift on the news. It says 577 00:30:31,200 --> 00:30:34,800 Speaker 1: that top black Rock clients will be able to use 578 00:30:34,880 --> 00:30:39,400 Speaker 1: its a Latin investment management system to oversee their exposure 579 00:30:39,440 --> 00:30:43,040 Speaker 1: to bitcoin along with other portfolio assets such as stocks 580 00:30:43,160 --> 00:30:47,680 Speaker 1: and bonds, and to facilitate financing and trading on coin 581 00:30:47,720 --> 00:30:52,280 Speaker 1: basis exchange. According to a statement on Thursday, so top 582 00:30:52,320 --> 00:30:57,760 Speaker 1: black Rock clients, so institutional clients of black Rock use 583 00:30:57,840 --> 00:31:00,640 Speaker 1: black Rocks as black Rock system to manage their stocks 584 00:31:00,640 --> 00:31:03,000 Speaker 1: and their bonds. Of course that's their traditional investments. And 585 00:31:03,080 --> 00:31:06,120 Speaker 1: now they're gonna be able to also manage their bitcoin 586 00:31:06,440 --> 00:31:11,560 Speaker 1: right inside of their Why is that a big deal? Well, 587 00:31:11,800 --> 00:31:14,800 Speaker 1: these traditional asset managers, we've been talking about this for 588 00:31:14,800 --> 00:31:17,760 Speaker 1: for i mean since two thousand seventeen. It's like the 589 00:31:17,800 --> 00:31:20,120 Speaker 1: institutions are coming, and the institutions are coming in. The 590 00:31:20,160 --> 00:31:23,640 Speaker 1: institutions are coming, um and everyone's been waiting for it, 591 00:31:23,880 --> 00:31:26,040 Speaker 1: and it seems like, oh, you're always saying they're coming, 592 00:31:26,040 --> 00:31:29,120 Speaker 1: they're coming. Well, it takes a long time. You know. 593 00:31:29,400 --> 00:31:33,240 Speaker 1: When we saw music and movies and books get digitized, 594 00:31:33,240 --> 00:31:35,800 Speaker 1: it happened really quick, and you know, the record labels 595 00:31:35,800 --> 00:31:38,320 Speaker 1: and the and the movie companies. They fought against that. 596 00:31:38,320 --> 00:31:40,360 Speaker 1: They didn't want them to get digitized, but they weren't 597 00:31:40,400 --> 00:31:43,760 Speaker 1: able to stop it at the end, because digitizing is better. 598 00:31:44,280 --> 00:31:46,160 Speaker 1: You can't stop a good idea. The time has come. 599 00:31:46,280 --> 00:31:49,600 Speaker 1: But when it comes to securities, when it comes to investing, 600 00:31:50,040 --> 00:31:53,760 Speaker 1: there's laws around that, and the laws are the problem. 601 00:31:53,840 --> 00:31:56,640 Speaker 1: So a lot of these big institutions, they're not able 602 00:31:56,720 --> 00:32:00,280 Speaker 1: to buy bitcoin for a number of reasons. Uh, they're funds, 603 00:32:00,320 --> 00:32:04,360 Speaker 1: mandate doesn't allow them to um. There's not clear regulatory 604 00:32:04,360 --> 00:32:08,000 Speaker 1: guidance around that. There's not good systems to take custody 605 00:32:08,000 --> 00:32:09,520 Speaker 1: the ether. They're not allowed to custody their assets on 606 00:32:09,520 --> 00:32:12,280 Speaker 1: their own, so when the institutional grade custody support and 607 00:32:12,320 --> 00:32:14,800 Speaker 1: things like that. So there's any number of reasons why 608 00:32:14,840 --> 00:32:18,160 Speaker 1: they can't do it, even though they want to. And 609 00:32:18,200 --> 00:32:20,320 Speaker 1: so I know it seems like it's taken a long time, 610 00:32:21,160 --> 00:32:23,960 Speaker 1: but that's how long it takes to change these regulations, 611 00:32:24,040 --> 00:32:26,760 Speaker 1: these laws. I mean, it takes a long time, but 612 00:32:27,360 --> 00:32:29,680 Speaker 1: these are big, big steps. Now does this mean that 613 00:32:29,720 --> 00:32:31,800 Speaker 1: instantly today it's going to jump not necessarily, I mean 614 00:32:32,080 --> 00:32:36,240 Speaker 1: coin based, but this is a big deal because as 615 00:32:36,280 --> 00:32:39,480 Speaker 1: I said, block Rock is the largest asset manager in 616 00:32:39,520 --> 00:32:43,280 Speaker 1: the world, and now all of these big accounts that 617 00:32:43,440 --> 00:32:46,320 Speaker 1: use their back end will now be able to manage 618 00:32:46,360 --> 00:32:49,720 Speaker 1: their bitcoin right alongside their stocks and bonds, it says. 619 00:32:50,680 --> 00:32:57,400 Speaker 1: It says uh that initially will be only bitcoin. Oh 620 00:32:57,440 --> 00:33:01,440 Speaker 1: and it says also tap into their um financing. So 621 00:33:01,480 --> 00:33:03,840 Speaker 1: now not only that they can tap into the financing 622 00:33:04,000 --> 00:33:06,400 Speaker 1: which takes loans against bitcoin, I'm guessing is what they're 623 00:33:06,400 --> 00:33:09,640 Speaker 1: talking about. So, um, if you don't know, people think that, 624 00:33:09,760 --> 00:33:12,080 Speaker 1: think that's very weird or strange or why would the 625 00:33:12,080 --> 00:33:14,480 Speaker 1: government allow people to take a loan against their bitcoin. Well, 626 00:33:14,640 --> 00:33:17,200 Speaker 1: you can take a loan against anything. So you can 627 00:33:17,240 --> 00:33:19,000 Speaker 1: take your car and go down the street and get 628 00:33:19,040 --> 00:33:21,320 Speaker 1: a title loan against it. You can get a equity 629 00:33:21,360 --> 00:33:23,840 Speaker 1: line against your house. And if you have like an 630 00:33:23,880 --> 00:33:26,600 Speaker 1: interactive brokers stock trading account or even wealth far Ago 631 00:33:26,920 --> 00:33:29,440 Speaker 1: will give you loans on your stocks, on your equities, 632 00:33:29,640 --> 00:33:31,320 Speaker 1: and so of course you can get loans against your 633 00:33:31,320 --> 00:33:35,000 Speaker 1: bitcoin as well. It's just another type of collateral, it says. 634 00:33:35,160 --> 00:33:38,520 Speaker 1: Black Rocks move deepens the involvement of Wall streets, traditional 635 00:33:38,600 --> 00:33:42,480 Speaker 1: financial players, and crypto and related technologies. Even after these 636 00:33:42,600 --> 00:33:50,040 Speaker 1: years melt down in such assets. Um, so you know 637 00:33:52,520 --> 00:33:54,640 Speaker 1: when you see big moves like this, especially when it 638 00:33:54,640 --> 00:33:58,000 Speaker 1: comes to Wall Street and investment funds and hedge funds, etcetera, 639 00:33:58,480 --> 00:34:00,840 Speaker 1: is that they're all trying to one up each other, 640 00:34:01,720 --> 00:34:04,160 Speaker 1: and so it can sort of become like the self 641 00:34:04,160 --> 00:34:06,360 Speaker 1: fulfilling prophecy where if one of them gets a little 642 00:34:06,360 --> 00:34:10,759 Speaker 1: bit of exposure to bitcoin and then outperforms, then all 643 00:34:10,800 --> 00:34:14,040 Speaker 1: the other ones will be forced to then take action. 644 00:34:14,680 --> 00:34:16,920 Speaker 1: Then what happens is it becomes a self filling prophecy. 645 00:34:16,960 --> 00:34:18,879 Speaker 1: So now more people jump in, which pushes the price 646 00:34:18,920 --> 00:34:20,799 Speaker 1: up even more, which thenforces more people to jump in, 647 00:34:20,840 --> 00:34:23,600 Speaker 1: which is the price up even more. But in the 648 00:34:23,640 --> 00:34:26,200 Speaker 1: beginning to try to get some a little bit of 649 00:34:26,239 --> 00:34:30,239 Speaker 1: momentum going, it's hard for somebody to stick their neck 650 00:34:30,280 --> 00:34:31,920 Speaker 1: out there first. So it's kind of like if you've 651 00:34:31,920 --> 00:34:34,160 Speaker 1: ever watched that video of like how something goes viral, 652 00:34:34,520 --> 00:34:36,480 Speaker 1: there's like this video like at a concert, like on 653 00:34:36,520 --> 00:34:39,280 Speaker 1: a lawn, and one person gets up and starts dancing, 654 00:34:39,320 --> 00:34:41,319 Speaker 1: and everybody's looking at them like there's some wacko and 655 00:34:41,320 --> 00:34:44,719 Speaker 1: they're pointing and laughing, etcetera. It's very difficult for that 656 00:34:44,800 --> 00:34:47,200 Speaker 1: first person to get up and just start dancing. But 657 00:34:47,239 --> 00:34:51,640 Speaker 1: then eventually, like one more person starts dancing, and then 658 00:34:51,680 --> 00:34:54,920 Speaker 1: eventually like one more and then before you know, everybody's 659 00:34:54,960 --> 00:34:56,759 Speaker 1: up dancing, and so nobody wants to be that first 660 00:34:56,840 --> 00:34:59,319 Speaker 1: or even the second or third. Is very difficult. But 661 00:34:59,400 --> 00:35:02,520 Speaker 1: when you see somebody like black Rock, who's not just 662 00:35:02,640 --> 00:35:05,839 Speaker 1: a well respected No, we're talking about the largest, not 663 00:35:05,920 --> 00:35:09,040 Speaker 1: just the largest. I believe they're larger than the next 664 00:35:09,080 --> 00:35:15,160 Speaker 1: five combined. They're that big when they come in, when 665 00:35:15,200 --> 00:35:17,920 Speaker 1: the leader is in, then it's opened up for everybody. 666 00:35:18,080 --> 00:35:20,160 Speaker 1: And so that's why you have to understand how big 667 00:35:20,160 --> 00:35:21,880 Speaker 1: of a deal this is and say it deepens the 668 00:35:21,920 --> 00:35:24,520 Speaker 1: involvement of Wall Street. I think that's an understatement. Like 669 00:35:24,560 --> 00:35:27,040 Speaker 1: I said, they are not just the biggest there. I 670 00:35:27,080 --> 00:35:31,839 Speaker 1: believe they're bigger than the next five combined. So when 671 00:35:31,840 --> 00:35:34,160 Speaker 1: they come in, everybody comes in. But what also says 672 00:35:34,400 --> 00:35:37,879 Speaker 1: is um, well, a lot of people go, oh, Mark, 673 00:35:37,920 --> 00:35:40,520 Speaker 1: Bitcoin's a joke, bitcoins a scam. Bitcoin will never work, 674 00:35:41,040 --> 00:35:45,800 Speaker 1: look how much it fell. Well, the largest asset manager 675 00:35:45,840 --> 00:35:50,120 Speaker 1: in the world doesn't agree with that statement. And I know, 676 00:35:50,320 --> 00:35:54,279 Speaker 1: I know we all think we're pretty smart, right, check 677 00:35:54,320 --> 00:35:57,200 Speaker 1: yourself with that though, right, because like, are you smarter 678 00:35:57,360 --> 00:36:01,000 Speaker 1: than the largest asset manager in the world. Do you 679 00:36:01,040 --> 00:36:04,879 Speaker 1: have as many assets under management as they do? Uh? 680 00:36:04,920 --> 00:36:07,279 Speaker 1: The answer is no. Obviously no, they have more than 681 00:36:07,280 --> 00:36:11,560 Speaker 1: the next five combined. Uh. And so I'm certainly not 682 00:36:11,600 --> 00:36:15,480 Speaker 1: saying I'm smarter than anybody. I'm certainly not smarter than them. Um. 683 00:36:15,520 --> 00:36:17,360 Speaker 1: I do choose to do different things because I'm a 684 00:36:17,360 --> 00:36:20,720 Speaker 1: different person. I'm an individual. I have different once and theeds, desires, interests, 685 00:36:20,719 --> 00:36:24,160 Speaker 1: et cetera. But when some people think that bitcoin will 686 00:36:24,200 --> 00:36:26,319 Speaker 1: never succeed because look how far it's fallen down from 687 00:36:26,320 --> 00:36:29,280 Speaker 1: its high, but then you see the largest asset manager 688 00:36:30,000 --> 00:36:33,960 Speaker 1: in the world jumping in, then uh, that's a pretty 689 00:36:34,000 --> 00:36:37,440 Speaker 1: big deal. That says. The partnership is a quote, a 690 00:36:37,560 --> 00:36:41,920 Speaker 1: validation of the future of bitcoin and a validation of 691 00:36:41,960 --> 00:36:47,799 Speaker 1: coin bass reputation. Um. The announcement shows sophisticated investors are 692 00:36:47,840 --> 00:36:52,359 Speaker 1: growing more comfortable with the bitcoin market. There you go, 693 00:36:52,880 --> 00:36:56,920 Speaker 1: the market demanded it. Black Rock jumped in. Institutional investors 694 00:36:56,960 --> 00:36:59,920 Speaker 1: account for about three quarters or three billion of trading 695 00:37:00,040 --> 00:37:03,440 Speaker 1: volume in on coin base. It's about to get a 696 00:37:03,480 --> 00:37:07,000 Speaker 1: whole lot bigger. Maybe not tonight or tomorrow, but it's coming. 697 00:37:07,440 --> 00:37:08,920 Speaker 1: These are things you have to watch out for. You're 698 00:37:08,920 --> 00:37:10,440 Speaker 1: listening to the Mark ma Show. We're talking about some 699 00:37:10,440 --> 00:37:12,520 Speaker 1: of the biggest headlines in the space. Um. As we 700 00:37:12,560 --> 00:37:15,319 Speaker 1: talked about the decentralized Revolution, I got some more big 701 00:37:15,360 --> 00:37:17,480 Speaker 1: ones that happened this week that I want to tell 702 00:37:17,480 --> 00:37:19,960 Speaker 1: you about. I'll be back in a second. Don't go away, 703 00:37:20,000 --> 00:37:22,279 Speaker 1: all right, I'll be right back. All right, Welcome back. 704 00:37:22,280 --> 00:37:24,080 Speaker 1: You are listening to the Mark mak Show. We talk 705 00:37:24,120 --> 00:37:27,040 Speaker 1: about the decentralized Revolution, talking about the way the world 706 00:37:27,080 --> 00:37:30,000 Speaker 1: is changing, and it is changing rapidly. One thing that 707 00:37:30,080 --> 00:37:33,560 Speaker 1: we can see happening again as this pendulum swings from centralization, 708 00:37:33,600 --> 00:37:36,000 Speaker 1: we're peeking out there and we're swinging back to decentralization 709 00:37:36,440 --> 00:37:40,359 Speaker 1: is these centralized currencies of the world are failing left 710 00:37:40,400 --> 00:37:44,880 Speaker 1: and right. Fiat currencies they're they're uh, they're they're dropping 711 00:37:44,960 --> 00:37:47,239 Speaker 1: leg flies and it's only starting to speed up. What 712 00:37:47,239 --> 00:37:50,480 Speaker 1: do I mean by that, Well, we're seeing entire countries 713 00:37:50,920 --> 00:37:57,120 Speaker 1: currencies collapse, and the nation's basically uh collapse. Right. So 714 00:37:57,600 --> 00:38:00,640 Speaker 1: we've seen Lebanon, We've seen Argentine, you know, he's in 715 00:38:00,719 --> 00:38:05,280 Speaker 1: Venezuela's in Peru. We've seen Ecuador the latest, Sri Lanka 716 00:38:05,840 --> 00:38:08,600 Speaker 1: and uh, their currency collapse. They have no money, they 717 00:38:08,600 --> 00:38:11,160 Speaker 1: can't pay their bonds, they can't import food, and so 718 00:38:11,200 --> 00:38:16,160 Speaker 1: we're seeing these currencies collapse everywhere. As a matter of fact. Uh, shoot, 719 00:38:16,320 --> 00:38:20,440 Speaker 1: I think it was I forget Now, let's see if 720 00:38:20,440 --> 00:38:24,840 Speaker 1: I can look this up real quick. Here, um inflation dashboard. 721 00:38:24,880 --> 00:38:29,320 Speaker 1: Here we go. Mm hmm, that's the old one. Mm hmmm. 722 00:38:29,520 --> 00:38:30,759 Speaker 1: I should have looked at up at the time. I 723 00:38:30,800 --> 00:38:35,760 Speaker 1: don't know, um, but we have I think thirty countries 724 00:38:35,800 --> 00:38:40,359 Speaker 1: that have double digit inflation something like that, where these 725 00:38:40,400 --> 00:38:42,799 Speaker 1: currencies are losing value so fast people literally have to 726 00:38:42,800 --> 00:38:46,640 Speaker 1: get paid uh daily right before they're losing money too fast. 727 00:38:46,960 --> 00:38:49,960 Speaker 1: And so you know, in some nations like Lebanon for example, 728 00:38:50,000 --> 00:38:54,120 Speaker 1: or Sri Lanka, right, Uh, they've seen inflation. And when 729 00:38:54,120 --> 00:38:56,560 Speaker 1: you're in an environment like that, if you're if you're 730 00:38:56,600 --> 00:38:59,960 Speaker 1: sitting there holding currency and you know that it's losing 731 00:39:00,280 --> 00:39:02,600 Speaker 1: eighty percent of its purchase in power, what would you 732 00:39:02,640 --> 00:39:04,600 Speaker 1: want to do? Well, you'd want to get out of 733 00:39:04,600 --> 00:39:07,560 Speaker 1: that currency as fast as possible, of course, right. The 734 00:39:07,640 --> 00:39:10,120 Speaker 1: problem is is as those currencies are falling, more and 735 00:39:10,120 --> 00:39:12,960 Speaker 1: more people get out, which only makes them fall even faster. 736 00:39:13,680 --> 00:39:16,719 Speaker 1: And so what happens is then nations will um put 737 00:39:16,719 --> 00:39:19,800 Speaker 1: something in place called capital controls, and so they're basically 738 00:39:19,800 --> 00:39:22,239 Speaker 1: trying to control the capital so it doesn't escape, so 739 00:39:22,280 --> 00:39:25,480 Speaker 1: it doesn't get out of the system, and so they 740 00:39:25,480 --> 00:39:27,799 Speaker 1: make it very difficult to buy dollars, which is what 741 00:39:27,840 --> 00:39:30,279 Speaker 1: most people would want to go to. And and so 742 00:39:30,360 --> 00:39:33,560 Speaker 1: obviously bitcoin is a solution for that. But the problem is, 743 00:39:33,640 --> 00:39:35,759 Speaker 1: and you know again I'm the first to tell you, 744 00:39:36,120 --> 00:39:38,800 Speaker 1: is that bitcoin is in an evolutionary process. So bitcoin 745 00:39:38,920 --> 00:39:43,839 Speaker 1: is not the most stable currency. The valuation fluctuates, and 746 00:39:43,960 --> 00:39:46,680 Speaker 1: I don't recommend anyone to put money into bitcoin that 747 00:39:46,719 --> 00:39:49,600 Speaker 1: you need next month to buy goods and services. If 748 00:39:49,600 --> 00:39:51,799 Speaker 1: you need money for your rent or your food, you 749 00:39:51,800 --> 00:39:53,879 Speaker 1: probably shouldn't put that into bitcoin for the next month. 750 00:39:54,320 --> 00:39:56,000 Speaker 1: I would say, put money into bitcoin that you don't 751 00:39:56,040 --> 00:39:58,279 Speaker 1: need for the next three years. That's kind of time 752 00:39:58,280 --> 00:40:01,239 Speaker 1: frame I look at it, um And so in these countries, 753 00:40:01,520 --> 00:40:03,960 Speaker 1: they don't they're not thinking three years out, they're just thinking, 754 00:40:04,040 --> 00:40:07,279 Speaker 1: you know, next week. UM. Bitcoin can help that over 755 00:40:07,320 --> 00:40:08,880 Speaker 1: the long run, but it doesn't really help it right 756 00:40:08,920 --> 00:40:10,960 Speaker 1: now today. And so what we're seeing is this rise 757 00:40:11,000 --> 00:40:13,879 Speaker 1: of these stable coins. So these dollar stable coins, which 758 00:40:13,880 --> 00:40:17,800 Speaker 1: is basically the same as a dollar, but it moves 759 00:40:17,800 --> 00:40:20,920 Speaker 1: like a cryptocurrency. UM. We've talked about this extensively. We're 760 00:40:20,920 --> 00:40:22,880 Speaker 1: not gonna super deep into what a stable coin is, 761 00:40:23,120 --> 00:40:25,440 Speaker 1: but what we what we're seeing is that UM in 762 00:40:25,640 --> 00:40:30,640 Speaker 1: Latin America, they're growing really, really, really fast, especially in Chile. 763 00:40:31,320 --> 00:40:34,160 Speaker 1: In Chile, we can see that it's been one of 764 00:40:34,200 --> 00:40:37,520 Speaker 1: the most stable economies in Latin America, but now the 765 00:40:37,560 --> 00:40:40,000 Speaker 1: resident of Chili are turning to stable coins to protect 766 00:40:40,080 --> 00:40:46,080 Speaker 1: their assets from recent record inflation and the increasing devaluation 767 00:40:46,280 --> 00:40:49,319 Speaker 1: of the pace. So so yeah, so when you're in 768 00:40:49,320 --> 00:40:51,520 Speaker 1: a currency that's losing value, trying to get out wherever 769 00:40:51,560 --> 00:40:54,279 Speaker 1: you can, and so in Chile they're turning to these 770 00:40:54,280 --> 00:40:56,160 Speaker 1: stable coins. As a matter of fact, we can see 771 00:40:56,520 --> 00:40:59,840 Speaker 1: that local crypto exchanges have seen a fifty percent increase 772 00:41:00,320 --> 00:41:03,919 Speaker 1: in stable coin transactions in just the last three months. 773 00:41:03,920 --> 00:41:06,319 Speaker 1: As a matter of fact, it says that um Per 774 00:41:06,360 --> 00:41:08,960 Speaker 1: Crypto Market, which is a Chili based exchange, saw two 775 00:41:09,080 --> 00:41:13,840 Speaker 1: hundred thousand users in the country, which is a fifty 776 00:41:14,280 --> 00:41:17,399 Speaker 1: increase in purchases of the two most commonly use stable coins, 777 00:41:17,440 --> 00:41:21,279 Speaker 1: which are tether us d T in us d coin, 778 00:41:21,360 --> 00:41:24,560 Speaker 1: which is us d C, and so they're getting a 779 00:41:24,600 --> 00:41:29,360 Speaker 1: massive amount of adoption there. It says today stable coins 780 00:41:29,400 --> 00:41:34,280 Speaker 1: represent thirty percent of users total purchases, and they mostly 781 00:41:34,360 --> 00:41:36,520 Speaker 1: choose to buy if it is their first time using 782 00:41:36,520 --> 00:41:40,760 Speaker 1: the platform, So that's that's pretty amazing statistic. Thirty percent 783 00:41:41,680 --> 00:41:45,360 Speaker 1: of users total purchases are being done with stable coins. 784 00:41:47,200 --> 00:41:50,919 Speaker 1: It says that Buddha dot Com, which was the first 785 00:41:50,960 --> 00:41:54,840 Speaker 1: crypto exchange to launch in Chili, I've seen a massive 786 00:41:54,840 --> 00:41:57,239 Speaker 1: increase in stable coins. Stable Coin market share on the 787 00:41:57,239 --> 00:42:02,719 Speaker 1: platform rose from eleven percent in June in July, so 788 00:42:02,760 --> 00:42:07,320 Speaker 1: it's almost increase in just one month, which is pretty massive. 789 00:42:07,960 --> 00:42:09,839 Speaker 1: We see a huge We see this as a huge 790 00:42:09,840 --> 00:42:12,400 Speaker 1: trend and something users are taking as an opportunity to 791 00:42:12,400 --> 00:42:15,799 Speaker 1: buy US dollars easily without having to go to a 792 00:42:15,840 --> 00:42:19,399 Speaker 1: bank or exchange house. So that's exactly what they're trying 793 00:42:19,400 --> 00:42:23,960 Speaker 1: to do. Stable Coins increasing uses tied to Chili's faltering 794 00:42:24,360 --> 00:42:27,960 Speaker 1: macroeconomic situation. In June, the country's year to year inflation 795 00:42:28,080 --> 00:42:31,000 Speaker 1: rows to twelve and a half percent, the highest record 796 00:42:31,120 --> 00:42:34,680 Speaker 1: in twenty eight years. One month later, it's pastel currency 797 00:42:34,719 --> 00:42:36,880 Speaker 1: hit a record low of one thousand per U s 798 00:42:36,920 --> 00:42:43,640 Speaker 1: dollar dropping three in one day. Not good. So I'm 799 00:42:43,680 --> 00:42:45,520 Speaker 1: not gonna getting all the reasons behind Chili. That's not 800 00:42:45,600 --> 00:42:47,399 Speaker 1: the point of this, uh that I wanted to talk 801 00:42:47,600 --> 00:42:50,719 Speaker 1: talk about today, but just talking about the rise of 802 00:42:51,880 --> 00:42:55,160 Speaker 1: well one, the collapse of FIA currencies. All FIA currencies 803 00:42:55,160 --> 00:43:00,000 Speaker 1: will eventually collapse. They're they're dropping like flies and where 804 00:43:00,000 --> 00:43:02,640 Speaker 1: and seen it in real time happening today. Uh. The 805 00:43:02,719 --> 00:43:05,920 Speaker 1: dollar will probably be the last one standing, but eventually 806 00:43:07,160 --> 00:43:08,880 Speaker 1: it's value will continue to plumb it as well. So 807 00:43:08,920 --> 00:43:10,959 Speaker 1: I'm not going to go deep into that, but rather 808 00:43:11,400 --> 00:43:13,920 Speaker 1: um the rise of these new type of currencies, these 809 00:43:13,960 --> 00:43:18,359 Speaker 1: stable coins. Specifically in El Salvador, they announced a new 810 00:43:18,360 --> 00:43:22,120 Speaker 1: one and they have a new UM backed synthetic dollar 811 00:43:22,280 --> 00:43:24,440 Speaker 1: stable coin. And this is a little bit different. This 812 00:43:24,480 --> 00:43:27,840 Speaker 1: one's pretty interesting because typically a stable coin is where 813 00:43:28,280 --> 00:43:30,520 Speaker 1: I give you a dollar and you give me back 814 00:43:30,520 --> 00:43:33,960 Speaker 1: a token that's redeemable for a dollar, and that token 815 00:43:34,160 --> 00:43:36,720 Speaker 1: that that that token that you've given me is always 816 00:43:36,719 --> 00:43:39,480 Speaker 1: worth the dollar that I gave you. That's why they're stable. 817 00:43:39,480 --> 00:43:41,920 Speaker 1: It's always stable to that dollar. Now that what the 818 00:43:41,960 --> 00:43:45,640 Speaker 1: dollar buys me fluctuate, sure, but it's always worth one dollar. 819 00:43:46,640 --> 00:43:50,120 Speaker 1: But what El Salvador is doing is a little bit different, 820 00:43:50,239 --> 00:43:52,160 Speaker 1: and it's not where I give you a dollar, give 821 00:43:52,160 --> 00:43:54,359 Speaker 1: me a token back um. And it's being headed up 822 00:43:54,360 --> 00:43:59,280 Speaker 1: by gloy Um. Gloy is behind the El Salvadors Bitcoin 823 00:43:59,400 --> 00:44:02,120 Speaker 1: beach wall. It it's an open source platform. It's a 824 00:44:02,120 --> 00:44:04,840 Speaker 1: financial platform. And elsavad Or and they launched a synthetic 825 00:44:04,880 --> 00:44:09,000 Speaker 1: dollar backed by bitcoin and it's called stable SATs pretty cool. 826 00:44:09,360 --> 00:44:12,160 Speaker 1: Stable stats aims to provide a different stable coin network 827 00:44:12,520 --> 00:44:16,400 Speaker 1: and a regular way bank integration. It uses derivatives contracts 828 00:44:16,400 --> 00:44:19,440 Speaker 1: to create a synthetic dollar backed by bitcoin and then 829 00:44:19,480 --> 00:44:23,799 Speaker 1: tied to the US dollar, so it's totally different. It's 830 00:44:23,800 --> 00:44:27,040 Speaker 1: a synthetic dollar that's backed by bitcoin and tied to 831 00:44:27,080 --> 00:44:32,080 Speaker 1: the US dollar. They're hoping that, uh, then enabling dollars 832 00:44:32,080 --> 00:44:34,880 Speaker 1: to flow through bitcoin would help remove short term volatility 833 00:44:34,880 --> 00:44:37,640 Speaker 1: price risk, and which is now one of the most 834 00:44:37,640 --> 00:44:41,320 Speaker 1: significant barriers to bitcoins expansion as a means of casual payments, 835 00:44:41,360 --> 00:44:42,960 Speaker 1: because of course you don't want to put all your 836 00:44:42,960 --> 00:44:45,440 Speaker 1: money to bitcoin and have that price fluctuates so much. 837 00:44:45,960 --> 00:44:49,279 Speaker 1: So stable stats uses a financial technique that bit mix use, 838 00:44:49,360 --> 00:44:51,440 Speaker 1: so bit mix was the number one derivatives trade and 839 00:44:51,480 --> 00:44:55,359 Speaker 1: exchange for bitcoin, so it's what what bit mix used 840 00:44:55,840 --> 00:45:00,960 Speaker 1: UM called perpetual inverse swaps, so using perpetual futures contracts 841 00:45:01,000 --> 00:45:05,000 Speaker 1: to produce the synthetic usd Futures contracts are agreements to 842 00:45:05,160 --> 00:45:09,440 Speaker 1: buy or sell a specified assets such as bitcoin, at 843 00:45:09,480 --> 00:45:16,040 Speaker 1: a specified future date and price. But because they're perpetual UM. 844 00:45:16,120 --> 00:45:19,360 Speaker 1: Because the perpetual then they don't expire, there's no future 845 00:45:19,440 --> 00:45:22,520 Speaker 1: date when they expire. So UM it's a little bit 846 00:45:22,560 --> 00:45:24,759 Speaker 1: hard to understand exactly how they work. But if you 847 00:45:24,920 --> 00:45:27,319 Speaker 1: if you've ever used bit max or any exchange like that, 848 00:45:27,360 --> 00:45:29,879 Speaker 1: then you're probably familiar with how that works. And so 849 00:45:30,080 --> 00:45:33,479 Speaker 1: you're basically betting um. Someone takes the high, someone takes 850 00:45:33,520 --> 00:45:35,800 Speaker 1: the load of what that is, and they always cancel 851 00:45:35,880 --> 00:45:39,240 Speaker 1: each other out, and it caused it to be UM stable. 852 00:45:39,800 --> 00:45:42,879 Speaker 1: The reason why they think that is a better way 853 00:45:42,880 --> 00:45:45,719 Speaker 1: to do it there is because now you don't actually 854 00:45:45,800 --> 00:45:49,520 Speaker 1: have to work with US dollars when you're using fat currency, 855 00:45:49,560 --> 00:45:52,799 Speaker 1: they control the on and off ramps, and so if 856 00:45:52,800 --> 00:45:54,759 Speaker 1: they can do it without that, and they think it's 857 00:45:54,800 --> 00:45:57,560 Speaker 1: going to be much easier for individual users to be 858 00:45:57,600 --> 00:46:01,000 Speaker 1: able to jump in to this existing system that there 859 00:46:01,320 --> 00:46:03,560 Speaker 1: and of course um they're doing an in l Salvador, 860 00:46:03,640 --> 00:46:07,080 Speaker 1: which is the first nation to adopt bitcoin as a 861 00:46:07,160 --> 00:46:10,440 Speaker 1: legal tender. However, bitcoin is not the best money to 862 00:46:10,440 --> 00:46:12,560 Speaker 1: be used as legal tender because it's a volatile and 863 00:46:12,600 --> 00:46:15,240 Speaker 1: so I think joining the bitcoin with the stable SATs 864 00:46:15,280 --> 00:46:17,759 Speaker 1: could be the perfect combination. And I'm excited to see 865 00:46:17,800 --> 00:46:20,680 Speaker 1: what happens. That's what I got for you today. On 866 00:46:20,760 --> 00:46:23,040 Speaker 1: those the headlines of the week. You're listening to the 867 00:46:23,040 --> 00:46:26,560 Speaker 1: Mark Mars Show, I'm talking about the decentralized revolution. That's 868 00:46:26,600 --> 00:46:29,480 Speaker 1: what I got. I hope, I hope, hope you enjoyed it. 869 00:46:29,480 --> 00:46:30,120 Speaker 1: Thanks for listening.