WEBVTT - Crypto Revisited (Part Three)

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<v Speaker 1>This is Red Pilled America.

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<v Speaker 2>a time.

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<v Speaker 1>Previously on Red Pilled America.

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<v Speaker 2>By late twenty eighteen, Alimed Research was already in trouble.

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<v Speaker 3>I mean, the company didn't have any lawyer, so I

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<v Speaker 3>think my utility there was pretty obvious.

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<v Speaker 1>Hundreds of unscrupulous characters began creating their own cryptocurrencies.

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<v Speaker 4>And the currency that you would use would be these munchies.

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<v Speaker 3>You know, it's so outland as that I'm tempted to

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<v Speaker 3>accuse you of just making that up.

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<v Speaker 5>We also recently launched a derivatives exchange called FTX.

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<v Speaker 1>Sam called his new cryptocurrency FTT.

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<v Speaker 2>By the end of twenty nineteen, CZ became one of

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<v Speaker 2>the first major investors in FTX.

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<v Speaker 6>They were treating this guy like it us a guru.

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<v Speaker 7>How did you do this so quickly?

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<v Speaker 2>FTX raked in an industry record nine hundred million dollars.

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<v Speaker 1>I'm Patrick Carrelci.

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<v Speaker 2>And I'm Adriana Cortez.

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<v Speaker 1>And this is Red Pilled America, a storytelling show.

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<v Speaker 2>This is not another talk show covering the day's news.

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<v Speaker 2>We are all about telling stories.

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<v Speaker 1>Stories. Hollywood doesn't want you to hear stories.

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<v Speaker 2>The media marks stories about everyday Americans at the Globalist ignore.

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<v Speaker 1>You could think of Red Pilled America as audio documentaries,

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<v Speaker 1>and we've promised only one thing, the truth. Welcome to

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<v Speaker 1>Red Pilled America. We're at the third and final part

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<v Speaker 1>of our series of episodes entitled Crypto Revisited. If you

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<v Speaker 1>haven't heard the previous episodes, you should go back and

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<v Speaker 1>listen from the beginning. We're looking for the answer to

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<v Speaker 1>the question where is cryptocurrency going? By telling the story

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<v Speaker 1>of the astonishing rise and spectacular fall of crypto entrepreneur

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<v Speaker 1>Sam Bankman Freed.

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<v Speaker 2>So to pick up where we left off at the

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<v Speaker 2>close of twenty twenty one, Sam Bankman Freed was in

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<v Speaker 2>the midst of a power move. The young crypto entrepreneur

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<v Speaker 2>had some leverage. He'd just come off an industry record

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<v Speaker 2>nine hundred million dollar fundraising tour for his cryptocurrency exchange

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<v Speaker 2>FTX and hiss Pitcoin was peaking at nearly seventy thousand

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<v Speaker 2>dollars per coin. The price of Sam's FTT token rose

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<v Speaker 2>along with it. Sam was climbing to the top of

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<v Speaker 2>the crypto world, and his political donations were beginning to

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<v Speaker 2>pay off as well.

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<v Speaker 5>Thank you Chairwater, as ranking Member mckenry, and all the

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<v Speaker 5>members of the committee for having me here today to testify.

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<v Speaker 5>It's an honor to be here.

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<v Speaker 2>He spoke at a congressional hearing on the need for

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<v Speaker 2>crypto regulations.

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<v Speaker 5>I think it is important and I think that is

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<v Speaker 5>healthy that the industry will be regulated.

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<v Speaker 2>Sam appeared to have something up his sleep, and he

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<v Speaker 2>had a trusted sidekick to help him all along the way.

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<v Speaker 3>I think we've always enjoyed working together and thinking together,

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<v Speaker 3>at least I like to think.

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<v Speaker 7>So.

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<v Speaker 2>That's Sam's father, Joe Bankman, talking about working with his son. Joe,

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<v Speaker 2>a Stanford law professor began helping his son early in

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<v Speaker 2>his crypto ventures. Joe would eventually focus on two specific areas.

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<v Speaker 2>The first was ftx's charity endeavors.

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<v Speaker 3>That's about half of what I do, and the other

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<v Speaker 3>half of what.

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<v Speaker 8>I do is regulation broadly speaking, so it's the bills

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<v Speaker 8>moving through Congress, it's whether we'll get approval from a

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<v Speaker 8>regulatory agency, things like that.

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<v Speaker 2>Joe Bankman was a lawyer, so the formulation of regulations

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<v Speaker 2>aligned well with his expertise.

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<v Speaker 3>In fact, all regulatory changes anytime you work through the government,

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<v Speaker 3>that's really legally in KENSIB.

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<v Speaker 2>Regulations also played a pivotal role in the world of finance.

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<v Speaker 2>In effect, they act as the gatekeeper of who does

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<v Speaker 2>and does not get to enter the playing field. So

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<v Speaker 2>how regulations are crafted can mean life or death for

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<v Speaker 2>a company. By the close of twenty twenty one, it

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<v Speaker 2>appeared that Sam and his father had a plan in motion.

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<v Speaker 2>It looked as if they were trying to set up

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<v Speaker 2>a regulatory framework that would benefit Sam's array of crypto

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<v Speaker 2>companies while hurting his competition.

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<v Speaker 9>They wanted to create a monopoly, there's no question about it,

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<v Speaker 9>to match finance that's been.

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<v Speaker 2>Armstrong crypto enthusiast and creator of bitboycrypto dot com.

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<v Speaker 9>So here was the plan. We'll bring in all of

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<v Speaker 9>these other companies to cover lending, to cover defive, to

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<v Speaker 9>cover exchanges, to cover deriva trading, margin trading. They wanted

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<v Speaker 9>to bring kind of one company in that did everything

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<v Speaker 9>from every niche in the crypto world, bring them up

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<v Speaker 9>under FTX. Then they were going to create the Federal

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<v Speaker 9>BIL license.

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<v Speaker 2>Basically a proposed federal license to operate in the US

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<v Speaker 2>crypto industry, and.

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<v Speaker 9>They were going to be the only show in town

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<v Speaker 9>that had the license, and all their companies would get

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<v Speaker 9>the license. Due to being under their umbrella, they did

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<v Speaker 9>have such a head start on anybody else trying to

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<v Speaker 9>apply to get the license that they would just be

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<v Speaker 9>able to win from the ground up. So that was

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<v Speaker 9>kind of the plan.

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<v Speaker 2>But in order to have real influence over the parameters

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<v Speaker 2>of that license, Sam would need to position himself as

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<v Speaker 2>the authoritative voice of the crypto world, so he launched

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<v Speaker 2>one of the most audacious branding campaigns that the world

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<v Speaker 2>of finance had ever seen. Sam had already signed Tom

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<v Speaker 2>Brady and Giselle as FTX folkspersons. He then expanded into

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<v Speaker 2>the NBA.

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<v Speaker 10>Crypto exchange FTX, spending one hundred and thirty five million

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<v Speaker 10>to rename the home of the Miami Heat.

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<v Speaker 11>This is the first time a crypto firm has won

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<v Speaker 11>naming rights to a major US sports venue.

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<v Speaker 2>FTX would eventually sign a deal with Steph Curry and

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<v Speaker 2>Shaquille O'Neal. He infiltrated Super Bowl fifty six with an

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<v Speaker 2>ad featuring comedian Larry David. Like I was saying, it's FTX,

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<v Speaker 2>it's a safe and easy way to get into crypto,

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<v Speaker 2>I don't think so. Sam carpet bombed young entrepreneurs with

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<v Speaker 2>YouTube influencer endorsements.

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<v Speaker 12>Now, before we get to part two, I have to

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<v Speaker 12>give a quick shout out for today's sponsor.

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<v Speaker 13>It's FTX US.

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<v Speaker 4>You've probably heard of them before.

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<v Speaker 6>One of the largest US regulated cryptocurrency exchanges in the world,

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<v Speaker 6>trusted by millions of users to buy, solid track and

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<v Speaker 6>trade both crypto and NFTs.

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<v Speaker 14>They've been the ones that are going out investing in

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<v Speaker 14>and buying other crypto exchanges that are struggling.

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<v Speaker 6>I'll explain just a moment. Right after I mentioned that

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<v Speaker 6>if you want to take advantage of buying the crypto

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<v Speaker 6>dipp check out our sponsor today FTX.

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<v Speaker 2>Sam also wanted to win over traditional finance who'd been

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<v Speaker 2>a bit skeptical about crypto. Investor Kevin O'Leary initially had

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<v Speaker 2>a negative impression of the crypto industry, but a long

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<v Speaker 2>came Sam bankman Fried, who lathered the Shark Tank star

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<v Speaker 2>with greenbacks, and Kevin remarkably did a one to eighty

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<v Speaker 2>on the subject for the entire finance community to see.

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<v Speaker 15>I don't know where you are in crypto.

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<v Speaker 14>You were so negative for a while, then you got

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<v Speaker 14>totally positive.

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<v Speaker 16>Do you own bitcoin now, Kevin?

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<v Speaker 17>What's your posision at crypto right now?

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<v Speaker 18>You do?

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<v Speaker 14>I have millions of dollars. Twenty percent of my portfolio

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<v Speaker 14>is now in crypto currencies and blockchain. Well, you have

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<v Speaker 14>to be diversified. I own thirty two different positions, including

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<v Speaker 14>equity and FTX, and I have to disclose I'm a

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<v Speaker 14>paid spokesperson for that company.

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<v Speaker 2>And Sam pulled in his new spokesmodel, Giselle, to reach

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<v Speaker 2>into the world of luxury.

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<v Speaker 4>Today, we're going to.

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<v Speaker 10>Be discussing Giselle and Sam's shared mission philanthropy, which is

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<v Speaker 10>the theme of our spring summer twenty twenty two luxury campaign.

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<v Speaker 2>The FTX founder joined Jizelle in a print out that

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<v Speaker 2>was published in America's most prestigious magazines, including Vogue, Dandy, Fair, GQ,

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<v Speaker 2>and The New Yorker. The two took the stage at

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<v Speaker 2>the Bahamas Cryptoconference to announce the campaign.

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<v Speaker 4>And I think it's really important to think about what

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<v Speaker 4>are we leaving behind, because either we're going to be

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<v Speaker 4>part of the solution or were going to be part

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<v Speaker 4>of the problem.

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<v Speaker 5>I think when you start thinking about the trillions of

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<v Speaker 5>people who haven't been worn yet who are going to

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<v Speaker 5>inherit this or from us, the things that we do

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<v Speaker 5>that sort of impact what it is exactly that we're

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<v Speaker 5>passing down to them are just incredibly important and magnified

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<v Speaker 5>way beyond the scope of almost anything else that we do.

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<v Speaker 2>Sam was attracting some of the most gifted virtue signalers

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<v Speaker 2>on the planet. Former President Clinton, popstar Katy Perry, and

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<v Speaker 2>former Prime Minister Tony Blair all attended his event. He

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<v Speaker 2>amped up his effective altruism message and the media sopped

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<v Speaker 2>it up.

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<v Speaker 16>Crypto billionaire Sam bankman Fred is doubling down on his

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<v Speaker 16>embrace of effective altruism This is something that he's talked

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<v Speaker 16>about so much that he's really in crypto so that

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<v Speaker 16>he can give the money away, essentially finding an avenue

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<v Speaker 16>where you can make the most money to give away

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<v Speaker 16>the most.

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<v Speaker 4>He's fully committed a giveving millions and now billions of

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<v Speaker 4>dollars to charities again.

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<v Speaker 2>Ben Armstrong of bitboycrypto dot com.

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<v Speaker 9>Alameda has the greatest propaganda arm we've seen since the USSR.

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<v Speaker 9>They use a combination of paid engagement bots, paid influencers,

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<v Speaker 9>paid spokespeople, paid media in order to control a narrative.

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<v Speaker 2>The FTX branding effort may have looked as if it

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<v Speaker 2>was intended for the general public, but that was a

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<v Speaker 2>peripheral benefit. Its ultimate target was really a very small

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<v Speaker 2>audience in Washington, DC that included the SEC chairman Gary Gensler.

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<v Speaker 1>In March twenty twenty two, Sam reportedly met with Gensler

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<v Speaker 1>to discuss regulations on crypto exchanges like FTX, and Sam

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<v Speaker 1>had an inside track with Gensler. The CEO of Alameda Research,

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<v Speaker 1>Caroline Ellison, was the daughter of Gensler's old boss when

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<v Speaker 1>he worked at MIT. Sam's plan appeared to be falling

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<v Speaker 1>into place. What the problem was that a crypto winter

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<v Speaker 1>was brewing, and Sam appeared completely oblivious to the coming storm.

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<v Speaker 6>When you've become successful and you buy your own media

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<v Speaker 6>and you surround yourself with people who only tell you

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<v Speaker 6>that what you're reading on the cover of Forbes is

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<v Speaker 6>actually a reality, you begin to believe it.

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<v Speaker 1>That's a representative from Doomberg, one of the most widely

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<v Speaker 1>read finance newsletters on subscription based platform Substack.

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<v Speaker 6>Sam Bankmyfree spent a lot of money to buy great press.

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<v Speaker 6>When you read it, it's easy to forget that you

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<v Speaker 6>paid for it and it's not real. And then anybody

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<v Speaker 6>who points out to you that, hey, maybe we have

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<v Speaker 6>these religious here and yes, I understand this is part

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<v Speaker 6>of your pr strategy, but we should consider AB and

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<v Speaker 6>C gets eliminated from your inner circle. And the only

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<v Speaker 6>people who remain in your inner circle are people who

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<v Speaker 6>are willing to lie to you about how great you are.

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<v Speaker 6>So then you come very insulated.

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<v Speaker 1>This was undoubtedly sam situation, and because of it, he

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<v Speaker 1>thought he'd built a rock of Gibraltar, but he was

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<v Speaker 1>about to figure out that he'd really erected a house

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0:12:01.520 --> 0:12:03.720
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0:12:32.520 --> 0:12:36.240
<v Speaker 1>come alive. Welcome back to red pilled America. So as

0:12:36.240 --> 0:12:39.000
<v Speaker 1>Sam Bankman Freed was soaking in the adoration of his

0:12:39.120 --> 0:12:43.520
<v Speaker 1>charm offensive, a cryptostorm was brewing. The early signs began

0:12:43.600 --> 0:12:47.040
<v Speaker 1>to surface right around the time Sam testified before Congress

0:12:47.160 --> 0:12:51.080
<v Speaker 1>in December twenty twenty one. The signal was, of course,

0:12:51.240 --> 0:12:53.640
<v Speaker 1>the original cryptocurrency.

0:12:52.960 --> 0:12:55.480
<v Speaker 13>Bitcoin is having a December to forget. Along with the

0:12:55.480 --> 0:12:56.800
<v Speaker 13>other major cryptos.

0:12:56.520 --> 0:13:00.199
<v Speaker 16>Bitcoin is hovering just below the fifty thousand dollars level

0:13:00.280 --> 0:13:03.200
<v Speaker 16>heading into the new year. That's after hitting seven eight

0:13:03.280 --> 0:13:04.520
<v Speaker 16>thousand just last month.

0:13:04.679 --> 0:13:08.199
<v Speaker 1>As the new year got underway, the decline continued.

0:13:07.800 --> 0:13:12.040
<v Speaker 16>Bitcoin now trading below that thirty seven thousand dollars handle,

0:13:12.120 --> 0:13:13.840
<v Speaker 16>hitting a one month low.

0:13:14.200 --> 0:13:16.599
<v Speaker 1>At first, people choked up the dip to just the

0:13:16.679 --> 0:13:19.959
<v Speaker 1>volatility of the crypto market, but by early May twenty

0:13:20.000 --> 0:13:23.120
<v Speaker 1>twenty two, the cracks and the dam burst open, and

0:13:23.160 --> 0:13:25.600
<v Speaker 1>many of the companies propped up by the crypto bubble

0:13:25.679 --> 0:13:26.520
<v Speaker 1>began to pop.

0:13:26.760 --> 0:13:29.679
<v Speaker 16>Crypto obviously right now getting crushed.

0:13:29.280 --> 0:13:33.320
<v Speaker 10>Tonight, a massive selloff of cryptocurrency, erasing more than two

0:13:33.400 --> 0:13:37.280
<v Speaker 10>hundred billion dollars from the entire market in a single day,

0:13:37.400 --> 0:13:40.320
<v Speaker 10>the price of bitcoin plunging to its lowest level in

0:13:40.440 --> 0:13:42.160
<v Speaker 10>sixteen months.

0:13:41.640 --> 0:13:44.920
<v Speaker 19>Gone down to its slowest point for quite a while.

0:13:45.679 --> 0:13:48.240
<v Speaker 19>And that's something that doesn't usually do. Actually going down

0:13:48.280 --> 0:13:51.200
<v Speaker 19>to a low pass the year before has only ever

0:13:51.200 --> 0:13:53.319
<v Speaker 19>happened once before. This is quite a big deal. More

0:13:53.360 --> 0:13:56.560
<v Speaker 19>than three hundred billion dollars was wiped out just in

0:13:56.600 --> 0:13:57.480
<v Speaker 19>the last week.

0:13:57.679 --> 0:13:58.560
<v Speaker 20>What has happened?

0:13:58.600 --> 0:13:59.200
<v Speaker 18>What's gone wrong?

0:13:59.240 --> 0:14:01.600
<v Speaker 16>I mean, this is the definition of a black swan event.

0:14:01.640 --> 0:14:04.040
<v Speaker 18>This is the Lehman Brothers coll of crypto.

0:14:03.800 --> 0:14:08.000
<v Speaker 10>The numbers sending some investors spiraling, fearing they could lose

0:14:08.040 --> 0:14:08.360
<v Speaker 10>it all.

0:14:08.559 --> 0:14:10.439
<v Speaker 9>One minute, it looks like the market's going to rip.

0:14:10.480 --> 0:14:12.720
<v Speaker 21>The next minute, it looks like the market's going to dip.

0:14:12.960 --> 0:14:14.720
<v Speaker 16>And I don't know what in the world's going on.

0:14:14.960 --> 0:14:16.680
<v Speaker 20>So I'm out, no moss in totally.

0:14:16.679 --> 0:14:18.880
<v Speaker 2>It seems crazy to say, but I'm then around thirty

0:14:18.920 --> 0:14:19.760
<v Speaker 2>five thousand dollars.

0:14:20.040 --> 0:14:22.040
<v Speaker 4>I actually lost over half my portfolio.

0:14:22.160 --> 0:14:24.520
<v Speaker 3>I lost one point six million on Luna and then

0:14:24.680 --> 0:14:25.680
<v Speaker 3>I put it in another too.

0:14:25.800 --> 0:14:29.480
<v Speaker 10>D can at those trading platform Coinbase now warning that

0:14:29.520 --> 0:14:32.360
<v Speaker 10>if they go belly up, customers could lose all their

0:14:32.400 --> 0:14:36.360
<v Speaker 10>crypto investments, which aren't technically subject to bankruptcy protections.

0:14:36.400 --> 0:14:39.920
<v Speaker 16>And if you're a retail investor, get you're not protected,

0:14:39.960 --> 0:14:42.160
<v Speaker 16>right or does it depend on jurisdiction, You're.

0:14:42.000 --> 0:14:44.360
<v Speaker 19>Not protected pretty much anyway, there's no protections at all.

0:14:44.960 --> 0:14:46.720
<v Speaker 19>Just like with the rest of crypts, any money you

0:14:46.720 --> 0:14:48.480
<v Speaker 19>put in is entirely at your risk.

0:14:48.600 --> 0:14:51.280
<v Speaker 21>Probably with bitcoin, there's something I underpinning. There's no government,

0:14:51.280 --> 0:14:53.200
<v Speaker 21>there's no company, there is no rent, there's something to

0:14:53.240 --> 0:14:55.800
<v Speaker 21>actually kind of prop up the value of cryptocurrency. Stories

0:14:55.800 --> 0:14:59.720
<v Speaker 21>out of New York of people losing half million dollar fortunes, cars, homes,

0:14:59.760 --> 0:15:01.840
<v Speaker 21>literally the whole lot because they punt it on this stuff.

0:15:02.080 --> 0:15:05.280
<v Speaker 21>I said, when everyone's everyone's happy. As soon as that

0:15:05.280 --> 0:15:06.360
<v Speaker 21>turns around, it can really hurt.

0:15:06.440 --> 0:15:08.200
<v Speaker 5>You may think it sound like a Ponzi scape.

0:15:08.240 --> 0:15:10.400
<v Speaker 6>What we have seen is nothing short of carnage.

0:15:10.440 --> 0:15:11.920
<v Speaker 16>It's quite horrible to watch.

0:15:12.080 --> 0:15:16.720
<v Speaker 12>This event is probably the most destructive wealth event in

0:15:16.760 --> 0:15:17.800
<v Speaker 12>the history of crypto.

0:15:18.240 --> 0:15:21.320
<v Speaker 1>By the summer of twenty twenty two, company after company

0:15:21.440 --> 0:15:24.280
<v Speaker 1>that either created their own cryptocurrency or had most of

0:15:24.320 --> 0:15:27.760
<v Speaker 1>their holdings in some new crypto tooken came crashing down.

0:15:28.200 --> 0:15:30.800
<v Speaker 1>How could this have happened? How could an industry that

0:15:30.840 --> 0:15:34.120
<v Speaker 1>had been heralded by financial media been celebrated as the

0:15:34.160 --> 0:15:42.800
<v Speaker 1>next big thing come crashing down in a matter of days. Well,

0:15:43.080 --> 0:15:44.840
<v Speaker 1>a lot of it had to do with those new

0:15:44.920 --> 0:15:49.120
<v Speaker 1>types of cryptocurrency tokens entering the market. Remember when Sam's father,

0:15:49.240 --> 0:15:52.960
<v Speaker 1>Joe Bankman, learned about initial coin offerings or icos.

0:15:53.240 --> 0:15:56.000
<v Speaker 18>Now, in my own personal opinion, the large majority of

0:15:56.000 --> 0:15:58.760
<v Speaker 18>these icos are frauds or they're going to fail.

0:15:59.280 --> 0:16:00.480
<v Speaker 13>I'll totally agree with that.

0:16:00.520 --> 0:16:02.520
<v Speaker 1>By the way, Well, it turns out that by twenty

0:16:02.560 --> 0:16:05.720
<v Speaker 1>twenty two, the industry had become littered with these fraud

0:16:05.800 --> 0:16:14.240
<v Speaker 1>coins as the crypto winter was slowly building. Sam went

0:16:14.280 --> 0:16:17.320
<v Speaker 1>on a Bloomberg podcast and used an analogy to explain

0:16:17.440 --> 0:16:20.360
<v Speaker 1>how many of these cryptotokens come into existence.

0:16:20.680 --> 0:16:21.400
<v Speaker 4>Where'd you start?

0:16:21.480 --> 0:16:24.680
<v Speaker 5>You start with a company that builds the blocks, and

0:16:25.160 --> 0:16:27.920
<v Speaker 5>in practice this box, they probably dressed it up to

0:16:27.960 --> 0:16:32.440
<v Speaker 5>look like a life changing, world altering protocol that's going

0:16:32.520 --> 0:16:35.240
<v Speaker 5>to replace all the big banks in thirty eight days

0:16:35.320 --> 0:16:38.600
<v Speaker 5>or whatever. Maybe for now, actually pretend it does literally

0:16:38.640 --> 0:16:39.880
<v Speaker 5>nothing is just a box.

0:16:40.200 --> 0:16:43.320
<v Speaker 1>Sam went on with this box analogy. He suggested that

0:16:43.400 --> 0:16:46.760
<v Speaker 1>the primary function of this imaginary box was for users

0:16:46.840 --> 0:16:49.360
<v Speaker 1>to put their currency in it, for which they'd receive

0:16:49.440 --> 0:16:52.160
<v Speaker 1>an IOU, and then later they could use that IOU

0:16:52.360 --> 0:16:55.520
<v Speaker 1>to pull their cryptocurrency out of the box. As Sam

0:16:55.560 --> 0:17:00.000
<v Speaker 1>told it, the controllers of this box then produce a cryptotoken.

0:16:59.400 --> 0:17:02.160
<v Speaker 5>We'll call it what for X token, and they're going

0:17:02.240 --> 0:17:04.640
<v Speaker 5>to give them a way for free to everyone uses

0:17:04.679 --> 0:17:07.680
<v Speaker 5>the box. So anyone who goes takes some money puts

0:17:07.720 --> 0:17:10.000
<v Speaker 5>in the box. Each day they're going to air drop

0:17:10.240 --> 0:17:13.480
<v Speaker 5>one percent of the X tokens program amongst everyone who's

0:17:13.520 --> 0:17:16.159
<v Speaker 5>put money in the box. That's for now, what X

0:17:16.200 --> 0:17:19.800
<v Speaker 5>token does. It gets given away to the box people.

0:17:20.240 --> 0:17:23.320
<v Speaker 5>And now what happens, Well, X token has some market cap,

0:17:23.600 --> 0:17:26.480
<v Speaker 5>let's say it's twenty million dollars market cap in the

0:17:26.520 --> 0:17:28.679
<v Speaker 5>world that we're in. If you do this, everyone's going

0:17:28.720 --> 0:17:31.280
<v Speaker 5>to be like, ooh, box token. Maybe it's cool. If

0:17:31.280 --> 0:17:33.440
<v Speaker 5>you buy a box token, you know that's going to

0:17:33.640 --> 0:17:36.240
<v Speaker 5>appear on Twitter and I'll have a twenty million dollar market.

0:17:35.920 --> 0:17:38.879
<v Speaker 4>Cap it shouldn't have any market cap in Siri, but

0:17:39.600 --> 0:17:40.520
<v Speaker 4>practice sale always do.

0:17:40.720 --> 0:17:44.160
<v Speaker 5>Okay, that's right, So X tokens being given out each day,

0:17:44.480 --> 0:17:47.040
<v Speaker 5>all these like cisticated firms are like, oh, that's interesting.

0:17:47.119 --> 0:17:48.840
<v Speaker 5>Like if the total amount of money in the box

0:17:48.880 --> 0:17:52.880
<v Speaker 5>is one hundred million dollars, then it's gonna yield sixteen

0:17:52.880 --> 0:17:56.360
<v Speaker 5>million dollars this year in X tokens being given out

0:17:56.400 --> 0:17:59.000
<v Speaker 5>for it. That's a sixteen percent return. That's pretty good.

0:17:59.040 --> 0:18:00.719
<v Speaker 5>We'll put a little bit more in and maybe that

0:18:00.800 --> 0:18:03.000
<v Speaker 5>happens until there are two hundred million dollars in the box.

0:18:03.600 --> 0:18:07.240
<v Speaker 5>So you know, sophisticated traders and or people on crypto

0:18:07.280 --> 0:18:09.560
<v Speaker 5>Twitter go and put two hundred million dollars in the

0:18:09.640 --> 0:18:13.400
<v Speaker 5>box collectively, and they start getting these X tokens for it, right,

0:18:13.480 --> 0:18:15.600
<v Speaker 5>and now all of a sudden, it's like wow, people

0:18:15.680 --> 0:18:18.200
<v Speaker 5>just decide to put two hundred million dollars in the box.

0:18:18.480 --> 0:18:19.560
<v Speaker 4>This is a pretty.

0:18:19.240 --> 0:18:23.040
<v Speaker 5>Cool box, right, Like this is a valuable box, as

0:18:23.080 --> 0:18:27.080
<v Speaker 5>demonstrated by all the money that people have apparently decided

0:18:27.080 --> 0:18:29.920
<v Speaker 5>should be in the box. And where we to say

0:18:29.920 --> 0:18:32.760
<v Speaker 5>that they're wrong about that? Like boxes can be great. Look,

0:18:32.760 --> 0:18:34.840
<v Speaker 5>I love box as much as the next guy, and

0:18:34.960 --> 0:18:37.320
<v Speaker 5>so then you know, X token price goes way up

0:18:37.320 --> 0:18:39.640
<v Speaker 5>and now it's at one hundred and thirty million dollars

0:18:39.680 --> 0:18:42.480
<v Speaker 5>market cap token because of you know, the bullishness of

0:18:42.920 --> 0:18:46.440
<v Speaker 5>people's usage of the box, and now all of a sudden,

0:18:46.480 --> 0:18:48.159
<v Speaker 5>of course, the smart money. It's like, go, wow, like

0:18:48.200 --> 0:18:50.320
<v Speaker 5>this thing's now yielding like sixty percent a year an

0:18:50.440 --> 0:18:53.280
<v Speaker 5>X tokens, right, so they pour another three hundred million

0:18:53.320 --> 0:18:54.960
<v Speaker 5>dollars in the box and you get a site, and

0:18:55.040 --> 0:18:59.240
<v Speaker 5>then it goes to infinity and then everyone makes money.

0:19:03.720 --> 0:19:06.560
<v Speaker 1>The two journalists were a bit stunned by his explanation.

0:19:07.080 --> 0:19:09.760
<v Speaker 13>I think of myself as like a fairly cynical person,

0:19:10.119 --> 0:19:14.480
<v Speaker 13>and yep, that was so much more cynical. Yes, I

0:19:14.480 --> 0:19:18.200
<v Speaker 13>would have described farming like you're just like, well, I'm

0:19:18.240 --> 0:19:20.520
<v Speaker 13>in the ponzi business and it's pretty good.

0:19:21.440 --> 0:19:23.800
<v Speaker 4>And did any of this require any sort of like

0:19:23.920 --> 0:19:27.040
<v Speaker 4>economic cases. Just like other people put money in the box,

0:19:27.080 --> 0:19:29.360
<v Speaker 4>and so I'm going to too, and then it's more valuables.

0:19:29.359 --> 0:19:30.919
<v Speaker 4>They're going to put more money in. And at no

0:19:31.040 --> 0:19:33.160
<v Speaker 4>point in the cycle did it seem to like describe

0:19:33.200 --> 0:19:34.960
<v Speaker 4>any sort of like economic purpose.

0:19:35.200 --> 0:19:38.600
<v Speaker 13>Can you comment on like the sustainability of that, yeah,

0:19:38.600 --> 0:19:40.000
<v Speaker 13>because like you know, on the one hand, you're like, well,

0:19:40.000 --> 0:19:41.800
<v Speaker 13>a trillion dollars in social money is going to come

0:19:41.840 --> 0:19:44.359
<v Speaker 13>into a bitground. On the other hand, you're like, basically,

0:19:44.400 --> 0:19:46.720
<v Speaker 13>there are a lot of ponzis that have done really well.

0:19:47.040 --> 0:19:49.840
<v Speaker 5>Okay, cool, I'll say, on the cynical route, think about,

0:19:49.880 --> 0:19:54.160
<v Speaker 5>like cynically, what could happen here? Well, okay, so you've

0:19:54.160 --> 0:19:56.840
<v Speaker 5>got things. Box is kind of dumb, but like, what's

0:19:56.880 --> 0:19:57.399
<v Speaker 5>the endgame?

0:19:57.480 --> 0:19:57.640
<v Speaker 12>Right?

0:19:57.720 --> 0:19:58.800
<v Speaker 5>His boxes were zero?

0:19:58.960 --> 0:20:05.440
<v Speaker 1>Obviously, Sam Bankman Freed inadvertently described the nature of much

0:20:05.480 --> 0:20:11.919
<v Speaker 1>of these cryptotokens. They're built out of nothing. Many of

0:20:11.920 --> 0:20:14.280
<v Speaker 1>the boxes or companies were worth zero.

0:20:14.760 --> 0:20:19.000
<v Speaker 6>Again, Dumberg I firmly believe these are all totally unrestared,

0:20:19.000 --> 0:20:23.200
<v Speaker 6>wildcat banking ponzi schemes with nothing but thin air backing them.

0:20:23.520 --> 0:20:26.880
<v Speaker 1>By Midsummer twenty twenty two, Sam Bankman Freed was bailing

0:20:26.880 --> 0:20:30.800
<v Speaker 1>out cryptocurrency firms left and right. The media dubbed him

0:20:30.920 --> 0:20:34.920
<v Speaker 1>the crypto world's lender of last resort, but his actions

0:20:34.960 --> 0:20:38.400
<v Speaker 1>were not benevolent. Many believed he was bailing out companies

0:20:38.440 --> 0:20:42.280
<v Speaker 1>because of fear the insolvency contagion could spread to his firm.

0:20:42.920 --> 0:20:46.399
<v Speaker 1>Sam even began hinting that there were more collapses to come.

0:20:47.000 --> 0:20:50.080
<v Speaker 1>In an interview with Forbes, Sam stated, quote, there are

0:20:50.160 --> 0:20:54.840
<v Speaker 1>some third tier exchanges that are already secretly insolvent end quote.

0:20:55.240 --> 0:20:58.040
<v Speaker 1>Little did anyone know that it was Sam that was

0:20:58.080 --> 0:21:06.560
<v Speaker 1>the one that was in trouble. Life can be pretty

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<v Speaker 2>Welcome back to Red Pilled America. So just as Sam

0:22:30.680 --> 0:22:34.240
<v Speaker 2>Bankman Freed looked like the bailout savior during the crypto winter,

0:22:34.640 --> 0:22:38.160
<v Speaker 2>what no one yet knew was Sam's companies were teetering

0:22:38.240 --> 0:22:41.880
<v Speaker 2>on the edge as well. His crypto trading firm, Alameda Research,

0:22:42.080 --> 0:22:45.720
<v Speaker 2>was nearing insolvency. He was no longer friends with cz

0:22:46.000 --> 0:22:50.080
<v Speaker 2>of rival Crypto Exchange Finance. Sam had nowhere to turn

0:22:50.160 --> 0:22:54.320
<v Speaker 2>but the mirror. But then something happened. In late September

0:22:54.359 --> 0:22:57.639
<v Speaker 2>twenty twenty two, one hundred and seventy three million FTT

0:22:57.800 --> 0:23:03.520
<v Speaker 2>cryptotokens materialized, and then they were miraculously given to Alameda Research.

0:23:03.960 --> 0:23:07.240
<v Speaker 2>At the time, the trading price for FTT tokens was

0:23:07.320 --> 0:23:11.240
<v Speaker 2>roughly twenty four dollars each. This fresh minting of FTT

0:23:11.280 --> 0:23:15.879
<v Speaker 2>tokens put four billion dollars on Alameda Research's balance sheet.

0:23:16.280 --> 0:23:19.480
<v Speaker 2>In one fell swoop, the supply of FTT tokens in

0:23:19.520 --> 0:23:23.320
<v Speaker 2>existence increased by a reported one hundred and twenty four percent.

0:23:24.040 --> 0:23:27.040
<v Speaker 2>Just like the Federal Reserves dollar printing press, these FTT

0:23:27.200 --> 0:23:35.000
<v Speaker 2>tokens were just created out of thin air. As anyone

0:23:35.040 --> 0:23:38.440
<v Speaker 2>with an elementary understanding of economics would know, the act

0:23:38.480 --> 0:23:41.760
<v Speaker 2>of just printing a currency from nothing could not immediately

0:23:41.800 --> 0:23:44.880
<v Speaker 2>add value to a company. The only institution that can

0:23:44.880 --> 0:23:47.800
<v Speaker 2>get away with that is the Federal Reserve. Where did

0:23:47.840 --> 0:23:50.680
<v Speaker 2>this value come from? How was it that these FTT

0:23:50.840 --> 0:23:53.120
<v Speaker 2>tokens were valued at twenty four dollars each?

0:23:53.680 --> 0:23:57.440
<v Speaker 20>Again, Ben Armstrong, FTT was one of the ways that

0:23:57.640 --> 0:24:02.680
<v Speaker 20>SBF would pump up the net value of Alameda and FTX.

0:24:03.040 --> 0:24:06.080
<v Speaker 9>They basically wash trade FTT back and forth between the

0:24:06.119 --> 0:24:06.879
<v Speaker 9>two companies.

0:24:07.080 --> 0:24:11.159
<v Speaker 2>In other words, they gained the system on Wall Street

0:24:11.640 --> 0:24:14.480
<v Speaker 2>wash trading is an illegal way for traders to manipulate

0:24:14.560 --> 0:24:18.040
<v Speaker 2>the market. A buyer and seller, for sometimes one investor

0:24:18.080 --> 0:24:21.080
<v Speaker 2>acting as both the buyer and seller, illegally collude to

0:24:21.080 --> 0:24:24.160
<v Speaker 2>sell a particular stock between each other to mislead other

0:24:24.240 --> 0:24:27.359
<v Speaker 2>traders into believing that the trading volumes for the stock

0:24:27.520 --> 0:24:30.719
<v Speaker 2>are higher than they actually are. Their goal through this

0:24:30.920 --> 0:24:33.720
<v Speaker 2>wash trading is to trick others into trading the same

0:24:33.800 --> 0:24:37.840
<v Speaker 2>stock and in the process illegitimately increasing its price. To

0:24:38.119 --> 0:24:40.920
<v Speaker 2>wash trade in the crypto world, you just swap out

0:24:40.960 --> 0:24:45.840
<v Speaker 2>stocks for cryptotokens like FTT. The process that Sam allegedly

0:24:45.920 --> 0:24:48.199
<v Speaker 2>used to prop up the value of his companies was

0:24:48.280 --> 0:24:51.720
<v Speaker 2>not a new process. In finance. The scheme looks something

0:24:51.840 --> 0:24:57.040
<v Speaker 2>like this. First, you create a stock, in this case,

0:24:57.119 --> 0:25:00.480
<v Speaker 2>a cryptotoken, and you retain the majority of those tokens

0:25:00.520 --> 0:25:03.480
<v Speaker 2>in your possession. Then you pump up the price of

0:25:03.480 --> 0:25:07.280
<v Speaker 2>those tokens through wash trading, or buying them with customer assets,

0:25:07.560 --> 0:25:11.080
<v Speaker 2>or through creating propaganda campaigns, whatever you need to do

0:25:11.200 --> 0:25:13.399
<v Speaker 2>to drive up the price of the token, and in

0:25:13.440 --> 0:25:17.800
<v Speaker 2>a largely unregulated industry like crypto, it wouldn't be that hard. Now,

0:25:17.800 --> 0:25:20.919
<v Speaker 2>since you've retained the majority of the tokens. Someone with

0:25:20.960 --> 0:25:23.600
<v Speaker 2>a huge batch of said tokens can't lower the price

0:25:23.640 --> 0:25:25.280
<v Speaker 2>of them by selling them on the market at a

0:25:25.359 --> 0:25:31.200
<v Speaker 2>rock bottom price. Now, with this artificially high value token

0:25:31.280 --> 0:25:34.320
<v Speaker 2>on your balance sheet, your company looks like it's worth

0:25:34.320 --> 0:25:36.760
<v Speaker 2>a ton of money. So you can go to the

0:25:36.800 --> 0:25:39.959
<v Speaker 2>banks asking for loans with the tokens as collateral, or

0:25:40.000 --> 0:25:43.040
<v Speaker 2>you can go to investors asking for investments, because hey,

0:25:43.359 --> 0:25:46.280
<v Speaker 2>look at my balance sheet, I've got millions upon millions

0:25:46.320 --> 0:25:49.520
<v Speaker 2>of dollars. The banks and investors want in because they

0:25:49.520 --> 0:25:51.040
<v Speaker 2>don't want to miss out on the chance to make

0:25:51.080 --> 0:25:55.640
<v Speaker 2>easy money. They give you real dollars, not cryptotokens, and

0:25:55.680 --> 0:25:57.480
<v Speaker 2>now you can use that money to go on a

0:25:57.520 --> 0:26:00.879
<v Speaker 2>wild spending spree, like buying the naming rights to stadiums

0:26:01.040 --> 0:26:03.919
<v Speaker 2>or locking arms with the biggest supermarket in the world.

0:26:04.560 --> 0:26:06.440
<v Speaker 2>The only thing you have to do is keep your

0:26:06.480 --> 0:26:09.320
<v Speaker 2>token price high, so the banks keep lending you money

0:26:09.400 --> 0:26:12.840
<v Speaker 2>and investors keep buying into your business. But the problem

0:26:12.920 --> 0:26:15.439
<v Speaker 2>now is the people that hold your token in the

0:26:15.480 --> 0:26:18.639
<v Speaker 2>public want to take advantage of the high prices, and

0:26:18.720 --> 0:26:22.119
<v Speaker 2>they sell your token in the market. If enough people

0:26:22.200 --> 0:26:24.800
<v Speaker 2>do that, flooding the market would supply. When there was

0:26:24.840 --> 0:26:28.000
<v Speaker 2>no real increase in demand, then the token price drops,

0:26:28.160 --> 0:26:30.919
<v Speaker 2>as does the value of your company, making it harder

0:26:30.920 --> 0:26:34.000
<v Speaker 2>for you to get loans or attract investors. So now

0:26:34.040 --> 0:26:37.240
<v Speaker 2>you have to continue the process all over again, pump

0:26:37.320 --> 0:26:39.399
<v Speaker 2>up the price of the token through wastch trading, or

0:26:39.480 --> 0:26:42.119
<v Speaker 2>using customer assets to buy the tokens at a higher price,

0:26:42.520 --> 0:26:45.520
<v Speaker 2>or any other scheme, whatever it takes to raise the

0:26:45.520 --> 0:26:49.640
<v Speaker 2>token price. Eventually you run out of money. That's when

0:26:49.640 --> 0:26:52.720
<v Speaker 2>you come up with an idea. If you control the token,

0:26:53.000 --> 0:26:55.200
<v Speaker 2>you can just print up more of them and place

0:26:55.240 --> 0:26:57.480
<v Speaker 2>them in your account to make your company look more

0:26:57.560 --> 0:27:03.439
<v Speaker 2>valuable on paper. You basically create cryptotokens out of thin airers.

0:27:03.600 --> 0:27:06.000
<v Speaker 2>That that is what Sam bankmin Freed did in this

0:27:06.160 --> 0:27:10.920
<v Speaker 2>moment of crisis at the end of September twenty twenty two.

0:27:22.240 --> 0:27:25.600
<v Speaker 20>Again Ben Armstrong, so you just have a long history

0:27:26.080 --> 0:27:29.600
<v Speaker 20>of Sam creating money out of nothing, and even there's

0:27:29.600 --> 0:27:31.320
<v Speaker 20>a video where he explains how he does it.

0:27:31.560 --> 0:27:33.680
<v Speaker 9>And when they needed more money, they would just print

0:27:33.720 --> 0:27:36.560
<v Speaker 9>more FTT and then they would be able to immediately

0:27:36.600 --> 0:27:38.280
<v Speaker 9>add value to their balance sheets.

0:27:40.359 --> 0:27:43.600
<v Speaker 2>By late October twenty twenty two, Sam must have felt

0:27:43.640 --> 0:27:46.960
<v Speaker 2>like he'd stabilize the businesses because he became a little

0:27:47.000 --> 0:27:51.679
<v Speaker 2>bit cocky. At the time, Finance ftx's primary competitor was

0:27:51.720 --> 0:27:56.800
<v Speaker 2>apparently in some legal trouble, so Sam decided to sucker

0:27:56.840 --> 0:28:01.439
<v Speaker 2>punch Finance's owner CZ. He jumped online and tagged his

0:28:01.480 --> 0:28:04.320
<v Speaker 2>old front of me in a tweet suggesting that CZ

0:28:04.640 --> 0:28:07.280
<v Speaker 2>wasn't even allowed to go to Washington, d C. Because

0:28:07.280 --> 0:28:10.800
<v Speaker 2>of his legal issues. The public potshop must have burned

0:28:10.800 --> 0:28:14.800
<v Speaker 2>CZ up. The stage was set for an epic chess move.

0:28:15.520 --> 0:28:18.920
<v Speaker 2>In a stunning coincidence, just a few days after Sam

0:28:19.000 --> 0:28:23.280
<v Speaker 2>sucker punch CZ, Alameda Research's balance sheet leaked to the press.

0:28:23.720 --> 0:28:26.800
<v Speaker 2>Crypton New's outfit Coindesk was the first to publish a

0:28:26.840 --> 0:28:30.880
<v Speaker 2>report on it, claiming that Alameda Research had fourteen point

0:28:31.000 --> 0:28:34.560
<v Speaker 2>six billion dollars in assets. But here's the kicker. That

0:28:34.640 --> 0:28:38.840
<v Speaker 2>value was almost entirely derived from FTT tokens. In other words,

0:28:38.960 --> 0:28:42.160
<v Speaker 2>it was Sam Bankman's breed's own token that was propping

0:28:42.240 --> 0:28:46.160
<v Speaker 2>up his company, not real US dollars, gold or some

0:28:46.240 --> 0:28:51.080
<v Speaker 2>other universally recognized asset, not even bitcoin. The coin desk

0:28:51.200 --> 0:28:54.080
<v Speaker 2>report got the ball rolling, but it was someone else

0:28:54.160 --> 0:28:57.680
<v Speaker 2>that Dug Deeper, an investigative journalist that goes by the

0:28:57.720 --> 0:29:01.960
<v Speaker 2>moniker Dirty Bubble Media, also received the leaked Alameda balance

0:29:01.960 --> 0:29:05.600
<v Speaker 2>sheet and he expanded on the coindesk original report.

0:29:05.720 --> 0:29:07.760
<v Speaker 12>Two days later, I published an article.

0:29:07.640 --> 0:29:10.000
<v Speaker 2>That's Dirty Bubble Media.

0:29:09.120 --> 0:29:12.400
<v Speaker 12>That basically took that information, plus the information I saw

0:29:12.440 --> 0:29:14.360
<v Speaker 12>in their balance sheet, the actual copy of it, and

0:29:14.880 --> 0:29:16.600
<v Speaker 12>basically broke it down in a way that people can

0:29:16.680 --> 0:29:19.440
<v Speaker 12>understand it to explain why it was as bad as

0:29:19.560 --> 0:29:23.280
<v Speaker 12>it was. Essentially, they were using worthless assets as collateral

0:29:23.320 --> 0:29:27.080
<v Speaker 12>for loans and that they were insolvent in very real terms.

0:29:30.440 --> 0:29:33.040
<v Speaker 2>The news of his article spread quickly within the crypto

0:29:33.080 --> 0:29:34.840
<v Speaker 2>communities on Twitter and YouTube.

0:29:35.040 --> 0:29:38.680
<v Speaker 7>Newses came out that FTS is actually insolvent, and Dirty

0:29:38.680 --> 0:29:41.320
<v Speaker 7>Bubble Media actually went ahead and did a lot of

0:29:41.360 --> 0:29:42.080
<v Speaker 7>digging up.

0:29:42.000 --> 0:29:46.080
<v Speaker 2>All The reporting sparked an idea in CZ's mind. Again,

0:29:46.240 --> 0:29:47.400
<v Speaker 2>Ben Armstrong.

0:29:47.160 --> 0:29:50.240
<v Speaker 9>So bini Itz and FTX obviously had beef with one

0:29:50.280 --> 0:29:52.320
<v Speaker 9>another at that point, but it goes back much further.

0:29:52.760 --> 0:29:55.360
<v Speaker 9>When you really look at CZ verse Sam. For about

0:29:55.400 --> 0:29:59.480
<v Speaker 9>six months, there was a deterioration of that relationship. Is

0:29:59.520 --> 0:30:01.560
<v Speaker 9>I believe CZ found out more and more about what

0:30:01.680 --> 0:30:02.680
<v Speaker 9>Sam was doing.

0:30:03.280 --> 0:30:06.040
<v Speaker 2>Caught wind that Sam was trying to monopolize the crypto

0:30:06.080 --> 0:30:10.520
<v Speaker 2>industry by influencing federal regulations. This didn't sit well with CZ.

0:30:11.120 --> 0:30:13.440
<v Speaker 2>He no doubt felt that it was a direct attack

0:30:13.480 --> 0:30:14.640
<v Speaker 2>on his company finance.

0:30:14.800 --> 0:30:16.680
<v Speaker 9>And then at some point he found something out that

0:30:16.880 --> 0:30:19.480
<v Speaker 9>was like, Okay, now I can't look back, I can't

0:30:19.480 --> 0:30:21.840
<v Speaker 9>turn away. At this point, I got to slam down

0:30:21.880 --> 0:30:24.640
<v Speaker 9>on this and do something. That's what he did. He

0:30:24.760 --> 0:30:26.840
<v Speaker 9>announced he was doing it, and he did.

0:30:26.640 --> 0:30:31.400
<v Speaker 2>It, and CZ had just the right thing to take

0:30:31.440 --> 0:30:35.160
<v Speaker 2>out Sam. Remember those FTT tokens that Sam gave CZ

0:30:35.360 --> 0:30:38.600
<v Speaker 2>when he bought out Caz's share in FTX. Well, CZ

0:30:38.880 --> 0:30:42.040
<v Speaker 2>held onto those FTT tokens and a little over a

0:30:42.120 --> 0:30:46.520
<v Speaker 2>year later those tokens transformed into digital scud missiles on

0:30:46.560 --> 0:30:54.680
<v Speaker 2>Sam's business. If CAZ decided to flood the market with them,

0:30:54.880 --> 0:30:58.640
<v Speaker 2>the price of FTT tokens would plummet, bringing Sam Bankman

0:30:58.720 --> 0:31:02.960
<v Speaker 2>Freed's entire scheme to an end. You see, Sam's company

0:31:03.320 --> 0:31:07.320
<v Speaker 2>were holding the majority of FTT tokens. The company's enormous

0:31:07.400 --> 0:31:11.280
<v Speaker 2>value was derived from them, so Sam needed the FTT

0:31:11.440 --> 0:31:14.120
<v Speaker 2>token price to stay high so that he could continue

0:31:14.120 --> 0:31:16.760
<v Speaker 2>to raise money based on their high value. If the

0:31:16.800 --> 0:31:21.040
<v Speaker 2>price fell, so would Sam's house of cards. CC must

0:31:21.120 --> 0:31:24.360
<v Speaker 2>have seen the opening and he decided to take the

0:31:24.400 --> 0:31:27.120
<v Speaker 2>shot again. Dirty Bubble Media.

0:31:27.120 --> 0:31:29.720
<v Speaker 12>The head of the Finance Exchange, which is the largest

0:31:29.720 --> 0:31:32.760
<v Speaker 12>exchange in the world and previously an investor in FTX,

0:31:33.120 --> 0:31:35.560
<v Speaker 12>announced that they were going to be selling some six

0:31:35.680 --> 0:31:39.080
<v Speaker 12>hundred million dollars worth of this token that FTX had

0:31:39.080 --> 0:31:41.680
<v Speaker 12>created out of thin air and was using a collateral.

0:31:42.000 --> 0:31:44.160
<v Speaker 12>Basically put them between a rock and a hard place.

0:31:44.240 --> 0:31:48.520
<v Speaker 12>So that, combined with the resulting panic sparked by my

0:31:48.640 --> 0:31:52.800
<v Speaker 12>reporting other reporting kind of led to withdrawal cascade.

0:31:52.960 --> 0:31:55.520
<v Speaker 2>In other words, there was a run on Sam's bank.

0:31:56.160 --> 0:31:59.920
<v Speaker 2>Fearing the FTX and Alameda Research were both insolvent, people

0:31:59.960 --> 0:32:02.000
<v Speaker 2>began withdrawing their funds from FTX.

0:32:02.320 --> 0:32:06.000
<v Speaker 7>Unfortunately, I have some bad news to report currently, a

0:32:06.080 --> 0:32:12.080
<v Speaker 7>bank run is happening on FTX. Its reserves, specifically, Etherium

0:32:12.560 --> 0:32:16.440
<v Speaker 7>is being drained off by the hundreds of millions right now.

0:32:16.800 --> 0:32:19.360
<v Speaker 2>Sam took to Twitter to try and calm the market.

0:32:19.560 --> 0:32:23.160
<v Speaker 15>Over the weekend, speculation rose about the solvency of FTX.

0:32:23.200 --> 0:32:26.720
<v Speaker 15>This came after a coined Ask report revealed Alimedd Research's

0:32:26.800 --> 0:32:31.680
<v Speaker 15>balance sheet is full of ftx's native token FTT so

0:32:31.800 --> 0:32:34.479
<v Speaker 15>FTX CEO Sam bankman Free took to Twitter this morning

0:32:34.720 --> 0:32:37.120
<v Speaker 15>to clear something up. He said that a competitor is

0:32:37.160 --> 0:32:40.840
<v Speaker 15>trying to attack the company with rumors. He then says

0:32:40.840 --> 0:32:45.040
<v Speaker 15>in the same tweet, ftx's fine assets are fine.

0:32:45.240 --> 0:32:48.880
<v Speaker 2>Alimeter Research to CEO Caroline Ellison tried to calm the

0:32:48.920 --> 0:32:52.360
<v Speaker 2>storm as well, tweeting the Alameda had assets not included

0:32:52.360 --> 0:32:55.360
<v Speaker 2>in the leaked balance sheet. To keep the FTT token

0:32:55.400 --> 0:32:58.960
<v Speaker 2>price from falling, she publicly offered to buy CZ's tokens

0:32:59.040 --> 0:33:01.640
<v Speaker 2>at the then market rate of twenty two dollars each

0:33:01.920 --> 0:33:03.680
<v Speaker 2>to keep him from putting in up for sale on

0:33:03.720 --> 0:33:07.680
<v Speaker 2>the open market. Cz turned her down. He must have

0:33:07.800 --> 0:33:19.000
<v Speaker 2>smelled blood. Cz then proceeded to flood the market with

0:33:19.080 --> 0:33:22.560
<v Speaker 2>the FTT tokens he possessed, and the price of ftx's

0:33:22.600 --> 0:33:27.240
<v Speaker 2>crypto coin plummeted. In just two days, FTT went from

0:33:27.280 --> 0:33:30.440
<v Speaker 2>twenty two dollars a token to just five dollars and

0:33:30.480 --> 0:33:33.800
<v Speaker 2>fifty cents a token. A day later, it dropped another

0:33:33.920 --> 0:33:37.959
<v Speaker 2>sixty percent. Sam desperately tried to raise over a billion

0:33:38.000 --> 0:33:42.120
<v Speaker 2>dollars from Silicon Valley, but no one bit, so Sam

0:33:42.160 --> 0:33:43.280
<v Speaker 2>took drastic action.

0:33:43.560 --> 0:33:47.600
<v Speaker 7>Breaking news. It appears that FTX has stocked with draws

0:33:47.760 --> 0:33:51.880
<v Speaker 7>for to pass basically four hours the jig was up.

0:33:51.840 --> 0:33:54.400
<v Speaker 14>And some people saying that if they log into FTX,

0:33:54.760 --> 0:33:56.600
<v Speaker 14>they have a bounce of zero.

0:33:56.760 --> 0:34:01.320
<v Speaker 12>Now FTX, the Big exchange, has filed for Chapter eleven bankruptcy.

0:34:01.680 --> 0:34:05.200
<v Speaker 12>I'm trying to understand exactly how a company, the second

0:34:05.320 --> 0:34:08.920
<v Speaker 12>largest crypto exchange in the world, has become.

0:34:08.720 --> 0:34:11.359
<v Speaker 4>Insolvent and followed for bankruptcy in the space of a week.

0:34:11.480 --> 0:34:15.279
<v Speaker 21>The company's controversial chief executive, Sam Bankman Freed, resigning a

0:34:15.400 --> 0:34:19.239
<v Speaker 21>CEO and will remain to assist in an orderly transition.

0:34:19.800 --> 0:34:23.000
<v Speaker 2>Sam Bankman Freed was eventually arrested. In addition to the

0:34:23.000 --> 0:34:26.000
<v Speaker 2>federal indictments of wirefraud and a list of other charges.

0:34:26.360 --> 0:34:29.239
<v Speaker 2>News began to surface it Sam was not necessarily the

0:34:29.280 --> 0:34:31.080
<v Speaker 2>effective altruis that he claimed to be.

0:34:31.320 --> 0:34:35.520
<v Speaker 1>The company FTX. Sam Bankmint Freed, himself and his.

0:34:35.680 --> 0:34:39.759
<v Speaker 4>Parents all owned around three hundred million dollars worth of

0:34:39.840 --> 0:34:42.000
<v Speaker 4>luxury or real estate out in the Bahamas.

0:34:42.040 --> 0:34:42.759
<v Speaker 20>Well, here's the thing.

0:34:43.040 --> 0:34:47.919
<v Speaker 18>If you're running any kind of currency operation and you're

0:34:47.960 --> 0:34:51.200
<v Speaker 18>involved in a polyamorous relationship with seven other people.

0:34:51.440 --> 0:34:54.480
<v Speaker 1>I gotta thank you whack ten ten other people totally.

0:34:54.320 --> 0:34:54.799
<v Speaker 2>What do they do?

0:34:54.840 --> 0:34:56.840
<v Speaker 20>They just were polyamorous living in a house together.

0:34:56.880 --> 0:34:59.239
<v Speaker 1>I'll live together in the same place in the Bahamas.

0:34:58.760 --> 0:35:03.280
<v Speaker 2>And then I'll just bang each other SBF, just thirty

0:35:03.280 --> 0:35:06.360
<v Speaker 2>two years old, was sentenced to twenty five years in

0:35:06.440 --> 0:35:10.560
<v Speaker 2>prison and ordered to pay eleven billion for its fraudulent schemes.

0:35:11.160 --> 0:35:14.160
<v Speaker 2>Sam Bankman freed with the darling of the crypto industry,

0:35:14.640 --> 0:35:17.839
<v Speaker 2>considered the man with the master plan for crypto, yet

0:35:17.880 --> 0:35:20.839
<v Speaker 2>his company joined the graveyard of crypto companies that fell

0:35:20.920 --> 0:35:24.160
<v Speaker 2>during the crypto winter. The turn of events started to

0:35:24.200 --> 0:35:26.960
<v Speaker 2>make people wonder where does crypto go from here.

0:35:28.719 --> 0:35:32.000
<v Speaker 1>The dilemma for the cryptocurrency industry is that after more

0:35:32.040 --> 0:35:35.279
<v Speaker 1>than a decade, no one has derived a commercial use

0:35:35.320 --> 0:35:38.640
<v Speaker 1>for crypto. It hasn't become a form of digital cash

0:35:38.680 --> 0:35:41.279
<v Speaker 1>to make purchases, and it's too volatile to be a

0:35:41.320 --> 0:35:46.239
<v Speaker 1>digital asset like gold and silver. Crypto technology, especially bitcoin

0:35:46.320 --> 0:35:49.319
<v Speaker 1>in the blockchain, was touted as being the technology that

0:35:49.320 --> 0:35:52.319
<v Speaker 1>would allow people to bypass the central bank. It was

0:35:52.360 --> 0:35:56.640
<v Speaker 1>initially promoted as internet cash used to buy and sell products,

0:35:59.320 --> 0:36:01.839
<v Speaker 1>but when experts in the field are asked when will

0:36:01.880 --> 0:36:04.840
<v Speaker 1>that happen? Has stubbornly remained the same.

0:36:05.320 --> 0:36:09.560
<v Speaker 11>Are we going to actually see more payment services carried out,

0:36:09.680 --> 0:36:15.279
<v Speaker 11>more customers, consumers using things like for example, Bitcoin re event, dogecoin,

0:36:15.320 --> 0:36:18.000
<v Speaker 11>if you're Tesla to actually make purchases. Is this the

0:36:18.080 --> 0:36:19.520
<v Speaker 11>year and where that actually happens?

0:36:19.840 --> 0:36:22.520
<v Speaker 9>Well, I think that We're going to have to just

0:36:22.560 --> 0:36:26.640
<v Speaker 9>see about And the reason I'd say that is I

0:36:26.719 --> 0:36:27.680
<v Speaker 9>think people want dollars.

0:36:28.000 --> 0:36:29.680
<v Speaker 4>I think they want to make payments and dollars.

0:36:30.080 --> 0:36:32.600
<v Speaker 9>Well, bitcoin's been around ten years, twelve.

0:36:32.440 --> 0:36:36.719
<v Speaker 1>Years, that's Peter Schiff, famed CEO and chief Global strategist

0:36:36.920 --> 0:36:41.320
<v Speaker 1>of Europacific Capital Incorporated. Peter is perhaps the world's leading

0:36:41.360 --> 0:36:44.800
<v Speaker 1>critic of bitcoin and thinks the cryptocurrency industry is the

0:36:44.800 --> 0:36:48.320
<v Speaker 1>biggest Ponzi scheme of his life. He argues that bitcoin

0:36:48.560 --> 0:36:51.760
<v Speaker 1>is no longer in its infancy and yet still hasn't

0:36:51.800 --> 0:36:53.080
<v Speaker 1>found a use case.

0:36:53.520 --> 0:36:56.799
<v Speaker 9>It's never evolved beyond a speculative token in the first

0:36:56.840 --> 0:36:59.320
<v Speaker 9>twelve years, so why shouldn't the next be any different?

0:36:59.600 --> 0:37:01.760
<v Speaker 1>Dirty Bubble media is skeptical as well.

0:37:02.000 --> 0:37:03.920
<v Speaker 12>Is there any use case for I don't know, I

0:37:03.960 --> 0:37:07.000
<v Speaker 12>haven't yet come across a project that seems to actually

0:37:07.000 --> 0:37:11.360
<v Speaker 12>be generating positive cash flow and generating something of economic value.

0:37:11.400 --> 0:37:14.600
<v Speaker 12>I haven't encountered that yet. So and the thing is,

0:37:14.600 --> 0:37:17.719
<v Speaker 12>if this technology was so useful, why isn't Google using

0:37:17.760 --> 0:37:21.080
<v Speaker 12>it right? Why isn't Amazon using it? Why isn't Facebook

0:37:21.160 --> 0:37:21.520
<v Speaker 12>using it?

0:37:21.640 --> 0:37:25.880
<v Speaker 1>There's a real split amongst cryptocurrency enthusiasts. Many believe the

0:37:25.960 --> 0:37:29.880
<v Speaker 1>other new tokens are just fraudulent, get rich quick schemes,

0:37:30.120 --> 0:37:33.560
<v Speaker 1>while Bitcoin is the real deal, the one digital currency

0:37:33.560 --> 0:37:36.480
<v Speaker 1>that can free citizens of the world from the disastrous

0:37:36.520 --> 0:37:39.600
<v Speaker 1>policies of central banks. And there is an argument that

0:37:39.600 --> 0:37:42.840
<v Speaker 1>Bitcoin is different than these other tokens. It does appear

0:37:42.880 --> 0:37:46.800
<v Speaker 1>that it launched organically, the public couldn't game that system.

0:37:46.920 --> 0:37:51.080
<v Speaker 1>It's also decentralized, no one controls it, and bitcoin is

0:37:51.080 --> 0:37:54.560
<v Speaker 1>by far the most adopted cryptocurrency of them all. Does

0:37:54.600 --> 0:37:56.879
<v Speaker 1>the fact that so many people believe in it give

0:37:56.920 --> 0:37:59.600
<v Speaker 1>it some kind of network effect? Or people use it

0:37:59.680 --> 0:38:02.680
<v Speaker 1>because so many people use it? I asked Stumberg if

0:38:02.680 --> 0:38:05.440
<v Speaker 1>there was any legitimate quality to bitcoin or was it

0:38:05.640 --> 0:38:07.360
<v Speaker 1>just a massive Ponzi scheme?

0:38:07.880 --> 0:38:08.760
<v Speaker 3>I would say both.

0:38:09.160 --> 0:38:12.520
<v Speaker 6>So to the first part of your comment, there is

0:38:12.680 --> 0:38:17.080
<v Speaker 6>undoubtedly a network effect for the creation of value, and

0:38:17.160 --> 0:38:19.759
<v Speaker 6>a quintessential example of that is gold. I mean, gold

0:38:19.920 --> 0:38:24.560
<v Speaker 6>is a inert metal that has some interesting chemical properties,

0:38:25.000 --> 0:38:29.160
<v Speaker 6>but collectively, over five thousand years, people have decided that

0:38:29.200 --> 0:38:32.359
<v Speaker 6>gold is a valuable asset worth owning. And since enough

0:38:32.400 --> 0:38:36.000
<v Speaker 6>people have decided that, and enough examples in history of

0:38:36.120 --> 0:38:40.239
<v Speaker 6>hyperinflating fiat currencies have proven that those who at the

0:38:40.360 --> 0:38:44.960
<v Speaker 6>early stages of a hyperinflationary environment were shrewd enough to

0:38:45.239 --> 0:38:46.759
<v Speaker 6>get their hands on as much gold as they could

0:38:46.800 --> 0:38:47.480
<v Speaker 6>did very well.

0:38:57.560 --> 0:39:00.400
<v Speaker 1>But in Dumberg's assessment, the jury was still out on

0:39:00.440 --> 0:39:03.440
<v Speaker 1>bitcoin reaching the status of a digital pressures medal.

0:39:03.600 --> 0:39:06.400
<v Speaker 6>The Bitcoin network the people who believe in it is

0:39:06.440 --> 0:39:08.880
<v Speaker 6>not nearly as big as gold, and it has not

0:39:09.280 --> 0:39:12.640
<v Speaker 6>had as enough validation events as a sort of store

0:39:12.640 --> 0:39:15.759
<v Speaker 6>of value as an emergent phenomenon as gold has had.

0:39:15.760 --> 0:39:17.920
<v Speaker 6>But it's possible. I could say, like, if you ask

0:39:18.040 --> 0:39:19.719
<v Speaker 6>me which of the cryptos I had to put a

0:39:19.719 --> 0:39:22.360
<v Speaker 6>certain amount of money in, I would select the Climb.

0:39:22.560 --> 0:39:25.719
<v Speaker 6>And again, mostly because of the regulatory clarity with which

0:39:26.000 --> 0:39:28.680
<v Speaker 6>a US citizen who wishes to remain within the bounds

0:39:28.680 --> 0:39:32.279
<v Speaker 6>of the laws can own transact and participate in the

0:39:32.280 --> 0:39:35.000
<v Speaker 6>bitcoin world. There is no central party that controls it

0:39:35.440 --> 0:39:37.880
<v Speaker 6>that that would be the one exception to sort of

0:39:37.920 --> 0:39:38.920
<v Speaker 6>the whole crypto universe.

0:39:39.080 --> 0:39:43.080
<v Speaker 1>Dooomberg believes that if any cryptocurrency survives the crypto crash

0:39:43.120 --> 0:39:46.399
<v Speaker 1>of twenty twenty two, it will likely be Bitcoin and

0:39:46.480 --> 0:39:48.360
<v Speaker 1>the technology built around it.

0:39:48.480 --> 0:39:50.560
<v Speaker 6>Much like when we had the dot com boom, where

0:39:50.680 --> 0:39:53.920
<v Speaker 6>basically all manner of startups rush to put dot com

0:39:53.920 --> 0:39:56.640
<v Speaker 6>and their name, and most of them are vs. And

0:39:56.680 --> 0:39:58.879
<v Speaker 6>then when the dot com bubble first, I mean, people

0:39:58.920 --> 0:40:01.000
<v Speaker 6>forget how violent that was and how many people lost

0:40:01.040 --> 0:40:03.839
<v Speaker 6>all of their life savings and their investments. And yet

0:40:03.960 --> 0:40:09.040
<v Speaker 6>from that rubble came Microsoft and Amazon, Apple and the

0:40:09.080 --> 0:40:13.360
<v Speaker 6>survivors of the catastrophe of the dot com bubble bursting.

0:40:14.719 --> 0:40:16.799
<v Speaker 6>It's seductive to imagine that we're about to see the

0:40:16.800 --> 0:40:18.719
<v Speaker 6>same thing, Like there's very interesting things going on in

0:40:18.760 --> 0:40:21.840
<v Speaker 6>the crypt universe. Not everybody tried to create a ponzi

0:40:21.880 --> 0:40:24.320
<v Speaker 6>token out of it. There will be technologies that survived

0:40:24.360 --> 0:40:27.120
<v Speaker 6>this crash. There will be entities that survived this crush,

0:40:27.160 --> 0:40:30.360
<v Speaker 6>Bitcoin among them. I mean a bigcointwor's going to keep running.

0:40:30.360 --> 0:40:34.680
<v Speaker 6>Whether a bitcoin costs you quote seventeen thousand US dollars

0:40:34.680 --> 0:40:37.160
<v Speaker 6>today or four hundred dollars a year from now. The

0:40:37.200 --> 0:40:39.040
<v Speaker 6>bitcoin network is going to keep running.

0:40:39.160 --> 0:40:42.000
<v Speaker 1>But Doomberg has a rather dark view of what will

0:40:42.000 --> 0:40:45.440
<v Speaker 1>happen with the blockchain technologies that survived this crash.

0:40:45.760 --> 0:40:51.600
<v Speaker 6>The technologies that survived this flush and are ultimately taken

0:40:51.600 --> 0:40:54.400
<v Speaker 6>over by the government to impose central bank digital currencies

0:40:54.400 --> 0:40:55.840
<v Speaker 6>on the world, which we think is a great plagu

0:40:55.920 --> 0:41:00.360
<v Speaker 6>on personal freedom. The owners of that technology will be

0:41:00.360 --> 0:41:01.400
<v Speaker 6>handsomely compensated.

0:41:01.640 --> 0:41:05.640
<v Speaker 1>Central bank digital currency are basically the government's version of bitcoin.

0:41:06.000 --> 0:41:08.879
<v Speaker 1>Think of it as a federal digital coin issued by

0:41:08.920 --> 0:41:10.200
<v Speaker 1>the Federal Reserve.

0:41:10.440 --> 0:41:13.160
<v Speaker 6>Central banking digital currencies. For those that aren't familiar, it's

0:41:13.280 --> 0:41:17.120
<v Speaker 6>essentially the elimination of physical cash and the elimination of

0:41:17.160 --> 0:41:20.759
<v Speaker 6>the Fourth Amendment. And the government can basically see and

0:41:20.880 --> 0:41:23.600
<v Speaker 6>control how you spend your money, and so they could

0:41:23.680 --> 0:41:27.480
<v Speaker 6>just decide that the only legally accepted currency the United

0:41:27.480 --> 0:41:30.399
<v Speaker 6>States is you know, FED coined, and you're not allowed

0:41:30.440 --> 0:41:32.480
<v Speaker 6>to buy guns with a FED coin, for example. Are

0:41:32.719 --> 0:41:34.960
<v Speaker 6>you're only allowed to buy so many gawns of gasoline

0:41:34.960 --> 0:41:37.000
<v Speaker 6>in a week because your carbon footprint has been exceeded,

0:41:37.320 --> 0:41:39.040
<v Speaker 6>or you can only buy so many baggs of chips

0:41:39.080 --> 0:41:42.799
<v Speaker 6>and sodas with sugar in them, because you know, buy

0:41:42.840 --> 0:41:45.400
<v Speaker 6>and large. Healthcare has become nationalized, and you're being an

0:41:45.440 --> 0:41:48.279
<v Speaker 6>undue burden to society by living in the way that

0:41:48.320 --> 0:41:50.440
<v Speaker 6>you could do. And so it's a very very small

0:41:50.440 --> 0:41:52.799
<v Speaker 6>step from a central panking digital currency to what we

0:41:52.840 --> 0:41:54.520
<v Speaker 6>have called in a piece we wrote last year called

0:41:54.560 --> 0:41:57.920
<v Speaker 6>Dystopia coin, where you cannot hide from the you know,

0:41:57.960 --> 0:42:01.200
<v Speaker 6>the eye of Soren, and the government shall see everything

0:42:01.200 --> 0:42:03.879
<v Speaker 6>that you do. There's no tipping with cash, know, giving

0:42:03.880 --> 0:42:05.640
<v Speaker 6>a few hundred dollars to a friend that you don't

0:42:05.719 --> 0:42:08.880
<v Speaker 6>report to the irs. All the way in which most

0:42:08.880 --> 0:42:13.800
<v Speaker 6>Americans express their freedom will be removed in such regard

0:42:13.880 --> 0:42:16.880
<v Speaker 6>and our fear in our base case and ultimately, you know,

0:42:16.920 --> 0:42:20.400
<v Speaker 6>our objectives to trying to analyze the situation unemotionally is

0:42:20.440 --> 0:42:22.880
<v Speaker 6>that the technologies that prove to be useful in the

0:42:22.880 --> 0:42:26.600
<v Speaker 6>crypto cycle that we've just gone through will be hijacked

0:42:26.640 --> 0:42:28.799
<v Speaker 6>and leveraged by central bankers around the world and they're

0:42:28.800 --> 0:42:31.200
<v Speaker 6>never rinning thirst for more control over the populace. And

0:42:31.520 --> 0:42:35.840
<v Speaker 6>that's coming. But the technology is developed in the cycle

0:42:35.840 --> 0:42:39.000
<v Speaker 6>agreed that we've gone through will undoubtedly be sifted through

0:42:39.000 --> 0:42:41.760
<v Speaker 6>and hijacked by the world central bankers and their desire

0:42:41.760 --> 0:42:44.840
<v Speaker 6>to eliminate cash and by extension, to eliminate privacy and

0:42:44.880 --> 0:42:48.280
<v Speaker 6>by extension, to eliminate private property ownership, which is, by extension,

0:42:48.320 --> 0:42:51.920
<v Speaker 6>the elimination of freedom, and of that we are significantly concerned.

0:42:52.160 --> 0:42:56.440
<v Speaker 1>Ben Armstrong agrees that central banking digital currencies or CBDCs

0:42:56.719 --> 0:42:57.200
<v Speaker 1>are coming.

0:42:57.320 --> 0:42:59.759
<v Speaker 9>Yeah, it's inevitable. There's no doubt about it's inevitable. It

0:42:59.760 --> 0:43:06.480
<v Speaker 9>can be stopped. Digital dollars already out, guys. It's called USDC.

0:43:07.080 --> 0:43:09.440
<v Speaker 9>Circle is behind it, Coinbase is behind it.

0:43:09.760 --> 0:43:12.200
<v Speaker 1>Jerome Palak, the chairman of the Federal Reserve.

0:43:11.960 --> 0:43:14.480
<v Speaker 9>Back in twenty twenty, said, we're open to the private

0:43:14.520 --> 0:43:18.280
<v Speaker 9>sector helping us to create the digital dollar. It's already

0:43:18.280 --> 0:43:20.880
<v Speaker 9>been created. They're already working as well with the European

0:43:20.960 --> 0:43:23.200
<v Speaker 9>Union on creating the digital euro. I believe we're three

0:43:23.200 --> 0:43:25.880
<v Speaker 9>to four years away from digital dollar coming out, and

0:43:26.320 --> 0:43:28.359
<v Speaker 9>I think there's no there's no way to find it,

0:43:28.719 --> 0:43:30.520
<v Speaker 9>to be honest with you, one thing we want to

0:43:30.520 --> 0:43:32.880
<v Speaker 9>turn our attention to very soon is we want to

0:43:32.960 --> 0:43:37.200
<v Speaker 9>outlaw the use of a social credit score in combination

0:43:37.600 --> 0:43:40.880
<v Speaker 9>with your money, in combination with a digital dollar. So

0:43:41.080 --> 0:43:43.200
<v Speaker 9>what we really need to do is figure out ways

0:43:43.640 --> 0:43:46.719
<v Speaker 9>to make that digital dollar safer and to protect ourselves

0:43:46.760 --> 0:43:50.280
<v Speaker 9>in the future from great reset from the elites, from

0:43:50.400 --> 0:43:52.440
<v Speaker 9>you know, whatever you want to call them, the overlords,

0:43:52.480 --> 0:43:54.120
<v Speaker 9>whatever you want to call them. You know, we want

0:43:54.160 --> 0:43:57.040
<v Speaker 9>to do our best to protect those through legislation and

0:43:57.160 --> 0:43:58.680
<v Speaker 9>just accept the fact that it's coming.

0:43:59.000 --> 0:44:02.600
<v Speaker 1>Doomberg agrees that the American public needs to protect itself

0:44:02.640 --> 0:44:05.240
<v Speaker 1>from the inevitable adoption of a digital dollar.

0:44:05.480 --> 0:44:08.560
<v Speaker 6>We in the West, who grew up with in cherishire

0:44:08.600 --> 0:44:12.640
<v Speaker 6>privacy in our freedom, desperately need a modernized version of

0:44:12.640 --> 0:44:14.560
<v Speaker 6>the Bill of Rights, and I would say a digital

0:44:14.600 --> 0:44:18.399
<v Speaker 6>Bill of rights. I think that there still exists within

0:44:18.440 --> 0:44:22.959
<v Speaker 6>the Western world a thread of freedom loving citizens who

0:44:23.320 --> 0:44:26.879
<v Speaker 6>have an appropriate lack of trust in centralized authority, and

0:44:27.120 --> 0:44:30.920
<v Speaker 6>pushed hard enough, will demand a new digital Bill of rights.

0:44:31.239 --> 0:44:34.160
<v Speaker 6>Donald Trump can't freeze my bank accounts without some due process,

0:44:34.560 --> 0:44:37.240
<v Speaker 6>or Joe Biden can't freeze my bank accounts without due process.

0:44:37.280 --> 0:44:39.960
<v Speaker 6>And for a politician to be able to inspect my

0:44:40.040 --> 0:44:45.279
<v Speaker 6>transactions without any suspicion of wrongdoing should be illegal, and

0:44:45.320 --> 0:44:49.520
<v Speaker 6>we should codify this. And perhaps the fear of totally

0:44:49.560 --> 0:44:52.960
<v Speaker 6>losing your rights and freedoms might provoke an appropriate political

0:44:53.000 --> 0:44:55.640
<v Speaker 6>response that leads us to a place where we can

0:44:55.760 --> 0:44:58.640
<v Speaker 6>incorporate the benefits of these technologies.

0:45:05.200 --> 0:45:12.560
<v Speaker 1>Which leads us back to the question where is crypto going?

0:45:13.280 --> 0:45:16.799
<v Speaker 1>It appears that the crypto world is developing technologies that

0:45:16.880 --> 0:45:19.400
<v Speaker 1>could one day lead to the end of the paper

0:45:19.440 --> 0:45:23.280
<v Speaker 1>dollar and the establishment of a central banking digital currency,

0:45:23.760 --> 0:45:27.360
<v Speaker 1>and this could be an extraordinary challenge to American freedom.

0:45:28.000 --> 0:45:30.600
<v Speaker 1>When we started our inquiry into the world of crypto

0:45:30.640 --> 0:45:34.360
<v Speaker 1>in twenty nineteen, we asked the question is bitcoin dangerous

0:45:34.400 --> 0:45:37.640
<v Speaker 1>to America? What sparked our interest in that subject was

0:45:37.680 --> 0:45:40.800
<v Speaker 1>a statement earlier that year by then President.

0:45:40.360 --> 0:45:43.360
<v Speaker 17>Trump, a crypto is being talked about. The President actually

0:45:43.400 --> 0:45:46.200
<v Speaker 17>weighed in and tweeted about cryptocurrencies last night. He wrote,

0:45:46.200 --> 0:45:48.680
<v Speaker 17>in part this, I'm not a fan of bitcoin and

0:45:48.760 --> 0:45:51.759
<v Speaker 17>other cryptocurrencies, which are not money and whose value is

0:45:51.840 --> 0:45:55.880
<v Speaker 17>highly volatile based on thin air. He writes, unregulated crypto

0:45:55.920 --> 0:45:59.680
<v Speaker 17>assets can facilitate unlawful behavior, including drug trade and other

0:45:59.719 --> 0:46:00.680
<v Speaker 17>illegal activity.

0:46:00.719 --> 0:46:04.200
<v Speaker 1>Rights the president to make this argument, Trump administration and

0:46:04.280 --> 0:46:08.880
<v Speaker 1>other politicians claimed that cryptocurrencies were completely anonymous and therefore

0:46:09.000 --> 0:46:13.040
<v Speaker 1>would facilitate massive illegal activity. But when we dug into

0:46:13.080 --> 0:46:16.480
<v Speaker 1>this claim, we found the argument was flawed. It was

0:46:16.600 --> 0:46:21.480
<v Speaker 1>actually the technology underpinning bitcoin, the blockchain, that allowed criminals

0:46:21.520 --> 0:46:25.080
<v Speaker 1>to be tracked down. So we concluded that bitcoin was

0:46:25.120 --> 0:46:29.000
<v Speaker 1>not necessarily something Americans should fear. But did we get

0:46:29.040 --> 0:46:31.560
<v Speaker 1>it wrong? Well, I think it's fair to say that

0:46:31.640 --> 0:46:33.239
<v Speaker 1>Donald Trump thinks he got it wrong.

0:46:33.440 --> 0:46:37.120
<v Speaker 12>The crypto collapse does not appeared to be worrying one

0:46:37.239 --> 0:46:38.680
<v Speaker 12>major celebrity.

0:46:38.200 --> 0:46:41.160
<v Speaker 14>Former US President Donald Trump, has officially entered the cryptosphere.

0:46:41.360 --> 0:46:45.759
<v Speaker 1>Trump used a cryptocurrency to launch a digital trading card. Ultimately,

0:46:46.040 --> 0:46:49.640
<v Speaker 1>technology like bitcoin is just a tool, like Twitter, or

0:46:49.680 --> 0:46:53.480
<v Speaker 1>Facebook or a gun. What makes any tool dangerous is

0:46:53.520 --> 0:46:57.320
<v Speaker 1>the user operating it. Paper cash is used by lemonade

0:46:57.360 --> 0:47:01.120
<v Speaker 1>stand operators and the Mexican cartel. If the experts are right,

0:47:01.200 --> 0:47:04.799
<v Speaker 1>an a central bank digital currency is inevitable that Americans

0:47:04.880 --> 0:47:07.920
<v Speaker 1>need to demand a digital bill of rights, one that

0:47:08.040 --> 0:47:12.240
<v Speaker 1>prohibits a tyrannical government from using a cryptocurrency to dictate

0:47:12.280 --> 0:47:15.120
<v Speaker 1>our behavior. And for those of you that think a

0:47:15.160 --> 0:47:18.640
<v Speaker 1>federal crypto dollar is a thing in the far off future.

0:47:19.040 --> 0:47:22.360
<v Speaker 1>Perhaps you should reconsider your timeline.

0:47:21.760 --> 0:47:26.440
<v Speaker 18>So you might have missed what happened Wednesday afternoon at

0:47:26.480 --> 0:47:32.640
<v Speaker 18>the FED. They started their central bank digital currency, so

0:47:32.719 --> 0:47:35.360
<v Speaker 18>they rolled it out and it's in its beta test now.

0:47:36.480 --> 0:47:39.920
<v Speaker 2>Red Pilled America is an iHeartRadio original podcast. It's owned

0:47:39.960 --> 0:47:43.200
<v Speaker 2>and produced by Patrick Carrelci and me Adriana Cortez of

0:47:43.239 --> 0:47:46.279
<v Speaker 2>Informed Ventures. Now. You can get ad free access to

0:47:46.320 --> 0:47:50.000
<v Speaker 2>our entire archive of episodes by becoming a backstage subscriber.

0:47:50.320 --> 0:47:53.799
<v Speaker 2>To subscribe, visit Redpilled America dot com and click join

0:47:53.920 --> 0:47:57.160
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0:47:57.200 --> 0:48:00.160
<v Speaker 2>click join in the topmenu. Thanks for listening.