1 00:00:00,480 --> 00:00:02,880 Speaker 1: Hello, and welcome to another episode of The Mark Moss Show, 2 00:00:03,240 --> 00:00:06,680 Speaker 1: where we talk about the decentralized revolution that is changing 3 00:00:06,720 --> 00:00:08,960 Speaker 1: the world as we know today. Of course we talk 4 00:00:09,039 --> 00:00:13,920 Speaker 1: about it as bitcoin, cryptocurrencies. Technology is changing the world 5 00:00:14,280 --> 00:00:16,360 Speaker 1: as we see it, and so I'd like to bring 6 00:00:16,400 --> 00:00:19,840 Speaker 1: you some education to kind of help you see this. 7 00:00:19,920 --> 00:00:22,880 Speaker 1: It's hard to see, UM, a new system when you're 8 00:00:22,960 --> 00:00:26,239 Speaker 1: stuck in an existing system. UM. A lot of times 9 00:00:26,239 --> 00:00:28,720 Speaker 1: we get what is it missed the forest for the 10 00:00:28,760 --> 00:00:31,520 Speaker 1: trees sort of a thing where we're so inside of 11 00:00:31,520 --> 00:00:33,960 Speaker 1: one system, where we're so zoomed in that it's hard 12 00:00:34,000 --> 00:00:36,000 Speaker 1: to see the perspective of what's going on. And so 13 00:00:36,280 --> 00:00:38,000 Speaker 1: i'd like to bring you some education to help you 14 00:00:38,040 --> 00:00:39,479 Speaker 1: think about that. Of course, I like to bring you 15 00:00:39,520 --> 00:00:42,840 Speaker 1: the latest breaking news and information so you can stay 16 00:00:42,880 --> 00:00:44,199 Speaker 1: up to date each and every week, and then of 17 00:00:44,200 --> 00:00:46,919 Speaker 1: course we talk about or I'd like to bring on 18 00:00:46,960 --> 00:00:50,159 Speaker 1: some new guests so you can hear some different perspectives UM, 19 00:00:50,200 --> 00:00:53,720 Speaker 1: so you can get a well rounded view of things 20 00:00:53,840 --> 00:00:59,040 Speaker 1: in better context of what's happening today. And boy, each 21 00:00:59,040 --> 00:01:01,160 Speaker 1: and every week I love joining because there is so 22 00:01:01,240 --> 00:01:03,920 Speaker 1: much to talk about. UM. It's a good problem to 23 00:01:03,960 --> 00:01:06,840 Speaker 1: have a consultant I used to work with said, these 24 00:01:06,840 --> 00:01:09,360 Speaker 1: are high class problems. And so I've had problems in 25 00:01:09,360 --> 00:01:12,559 Speaker 1: the past where there was not enough information to talk about. 26 00:01:12,560 --> 00:01:17,120 Speaker 1: I remember doing content through and things were really boring 27 00:01:17,240 --> 00:01:20,160 Speaker 1: back then. Um, now the problem is too much to 28 00:01:20,160 --> 00:01:23,880 Speaker 1: talk about and trying to choose which stories to talk about. 29 00:01:23,920 --> 00:01:26,320 Speaker 1: And so, like I said, it's a high class problem, 30 00:01:26,360 --> 00:01:28,280 Speaker 1: and that's all good, But you know, I want to 31 00:01:28,360 --> 00:01:31,399 Speaker 1: kind of put things into perspective of what's going on, 32 00:01:31,480 --> 00:01:33,720 Speaker 1: and a lot of what we've been talking about over 33 00:01:33,760 --> 00:01:36,080 Speaker 1: the last month or two is really a kind of 34 00:01:36,080 --> 00:01:38,800 Speaker 1: a continuation of what's going on, and I'm kind of 35 00:01:38,840 --> 00:01:42,240 Speaker 1: giving you the play by play of how things are unwinding. 36 00:01:42,280 --> 00:01:46,280 Speaker 1: And so I've been talking about something called the crypto unwind, 37 00:01:46,360 --> 00:01:49,520 Speaker 1: or that I was calling a great unwind, And what 38 00:01:49,600 --> 00:01:54,520 Speaker 1: I'm talking about is an unwind of leverage or de leveraging, 39 00:01:54,560 --> 00:01:57,800 Speaker 1: if you will. Now, Um, we see that there's leverage 40 00:01:57,880 --> 00:02:02,240 Speaker 1: all over the system, and typically leverages built up through credit. Now, 41 00:02:02,400 --> 00:02:06,080 Speaker 1: in our existing monetary system that we have in the 42 00:02:06,120 --> 00:02:09,360 Speaker 1: world today, it's a debt based monetary system, and so 43 00:02:09,440 --> 00:02:14,160 Speaker 1: that means that all money that's created is debt. So Um, 44 00:02:14,200 --> 00:02:17,040 Speaker 1: we talked about the Federalserve just printing buttons, pushing a 45 00:02:17,080 --> 00:02:19,320 Speaker 1: button and printing money. That's not really the way it works. 46 00:02:19,560 --> 00:02:22,720 Speaker 1: Money is created through debt issue. And so when you 47 00:02:22,720 --> 00:02:25,720 Speaker 1: go get a loan for a car, boat, house, boat, whatever, 48 00:02:26,160 --> 00:02:30,000 Speaker 1: that money is created into existence and it creates massive 49 00:02:30,040 --> 00:02:33,399 Speaker 1: amounts of leverage because it's all debt. So think about 50 00:02:33,440 --> 00:02:36,600 Speaker 1: it for your own self, like your own personal household. Um, 51 00:02:36,639 --> 00:02:41,760 Speaker 1: let's say that you were um using leverage to build assets. 52 00:02:41,840 --> 00:02:44,280 Speaker 1: Let's say we're back to two tho a matter of fact, 53 00:02:44,360 --> 00:02:46,239 Speaker 1: is a good parallel to what we're gonna talk about today. 54 00:02:46,400 --> 00:02:48,799 Speaker 1: So back in two thousand eight, people were able to 55 00:02:48,840 --> 00:02:52,360 Speaker 1: buy multiple houses, multiple houses at the same time, and 56 00:02:52,400 --> 00:02:54,480 Speaker 1: so people would go to these like new housing developments 57 00:02:54,480 --> 00:02:58,640 Speaker 1: in California or Arizona or Nevada, Florida, those kind of 58 00:02:58,680 --> 00:03:01,720 Speaker 1: hot spots of the country, and these home prices were 59 00:03:01,760 --> 00:03:04,400 Speaker 1: exploding so fast, they were going up so fast that 60 00:03:04,480 --> 00:03:06,639 Speaker 1: people could just go to a brand new housing development, 61 00:03:06,639 --> 00:03:08,720 Speaker 1: put their name down to a a deposit down on a house, 62 00:03:09,040 --> 00:03:11,800 Speaker 1: sometimes a thousand dollars, five thousand dollars down on a house, 63 00:03:12,400 --> 00:03:15,480 Speaker 1: and then once those houses were built, they could just 64 00:03:15,520 --> 00:03:20,359 Speaker 1: sell them and make dollars per house times five or 65 00:03:20,400 --> 00:03:22,680 Speaker 1: ten however many they bought. So they're putting a thousand 66 00:03:22,800 --> 00:03:26,040 Speaker 1: or five thousand dollars down and then they're making dollars 67 00:03:26,040 --> 00:03:28,280 Speaker 1: down the house. They're using leverage. It was that credit 68 00:03:28,320 --> 00:03:30,560 Speaker 1: that there was being extended to them, and that works great. 69 00:03:30,720 --> 00:03:34,600 Speaker 1: You can grow really really fast with that leverage. Another 70 00:03:34,600 --> 00:03:36,520 Speaker 1: way you can use leverages. Let's say that your business 71 00:03:36,600 --> 00:03:39,280 Speaker 1: is expanding. Let's say that you were in the construction business, 72 00:03:39,280 --> 00:03:42,040 Speaker 1: and so obviously construction business was booming, and so we 73 00:03:42,080 --> 00:03:44,560 Speaker 1: need contractors to go out there and frame the walls 74 00:03:44,560 --> 00:03:46,400 Speaker 1: and hang the dry wall, put the roofs on, build 75 00:03:46,440 --> 00:03:50,000 Speaker 1: the fences, thro the landscaping, et cetera. And so I 76 00:03:50,120 --> 00:03:52,240 Speaker 1: might have or other people might have gone about five 77 00:03:52,360 --> 00:03:54,080 Speaker 1: or ten homes at a time. A lot of people 78 00:03:54,080 --> 00:03:55,560 Speaker 1: were doing this, and so there's a lot of demand 79 00:03:55,600 --> 00:03:58,560 Speaker 1: for houses. And so now these these contractors that deliver 80 00:03:58,640 --> 00:04:01,600 Speaker 1: these services also used leverage, and so they would go 81 00:04:01,640 --> 00:04:04,840 Speaker 1: out and take loans to then buy more trucks and 82 00:04:04,880 --> 00:04:08,280 Speaker 1: buy more equipment and hire more crews. And that leverage, 83 00:04:08,360 --> 00:04:11,440 Speaker 1: that that credit that was extent them allowed them to 84 00:04:11,880 --> 00:04:14,320 Speaker 1: build much faster to scale their business to take advantage 85 00:04:14,320 --> 00:04:19,440 Speaker 1: of all that incoming business. And so leverage works really well. Debt, debt, leverage, 86 00:04:19,600 --> 00:04:22,560 Speaker 1: that credit, whatever you want to call it, um that credit, 87 00:04:22,880 --> 00:04:25,039 Speaker 1: that debt, that leverage allows us to grow really fast. 88 00:04:25,320 --> 00:04:27,520 Speaker 1: And if you were in playing this real estate game, 89 00:04:27,839 --> 00:04:30,599 Speaker 1: you were UM leveraging that credit and you were getting 90 00:04:30,640 --> 00:04:34,200 Speaker 1: five homes and they everyone really fast, or you're building 91 00:04:34,200 --> 00:04:36,760 Speaker 1: your business really really fast, that was great. The problem 92 00:04:36,839 --> 00:04:39,760 Speaker 1: is when um, we get to the end of that 93 00:04:39,800 --> 00:04:44,120 Speaker 1: credit cycle. So throughout this long term credit cycle, we're 94 00:04:44,240 --> 00:04:47,119 Speaker 1: using more debt, using more debt, credit, credit, credit leverage, 95 00:04:47,160 --> 00:04:50,080 Speaker 1: leverage everywhere, growing, growing, growing, not just you, not just 96 00:04:50,120 --> 00:04:54,279 Speaker 1: the roof of the framer, the the window guy, the landscape, etcetera, 97 00:04:54,360 --> 00:04:58,240 Speaker 1: but the homeowners buying the homes, um, but the whole system, 98 00:04:58,279 --> 00:05:01,000 Speaker 1: the entire monetary system is basically doing that. So we 99 00:05:01,040 --> 00:05:04,080 Speaker 1: have these long term credit cycles and all this credit 100 00:05:04,120 --> 00:05:06,160 Speaker 1: debt leverage builds up in the system and we grow 101 00:05:06,720 --> 00:05:11,680 Speaker 1: massive growth. Gross domestic product is exploding, The economy is 102 00:05:11,720 --> 00:05:14,560 Speaker 1: doing good, there's more money. People are going and spending 103 00:05:14,600 --> 00:05:17,680 Speaker 1: more on clothes and at restaurants, and then those restaurants 104 00:05:17,720 --> 00:05:20,479 Speaker 1: and are expanding, etcetera. So you can see how this 105 00:05:20,960 --> 00:05:25,440 Speaker 1: winds up. The problem is when it unwinds down, and 106 00:05:25,480 --> 00:05:28,640 Speaker 1: so just as fast as it grows on the upside, 107 00:05:29,240 --> 00:05:33,760 Speaker 1: it actually unwinds and d leverages way faster. You can 108 00:05:33,800 --> 00:05:37,080 Speaker 1: think about this easy. Um. You know, it takes a 109 00:05:37,080 --> 00:05:40,039 Speaker 1: while to take on debt um to continue to build 110 00:05:40,080 --> 00:05:44,120 Speaker 1: your portfolio using debt, but you can just default on 111 00:05:44,200 --> 00:05:46,839 Speaker 1: that debt instantly and all that can just disappear. And 112 00:05:46,839 --> 00:05:49,680 Speaker 1: that's exactly what happens when things turn. And so back 113 00:05:49,680 --> 00:05:51,560 Speaker 1: to two thousand and eight, all those people that had 114 00:05:52,000 --> 00:05:54,680 Speaker 1: used debt credit leverage to build up those portfolio of 115 00:05:54,720 --> 00:05:57,479 Speaker 1: all those homes, all those contractors who had scaled their 116 00:05:57,520 --> 00:06:00,680 Speaker 1: businesses and bought all new equipment and new trucks, et cetera. 117 00:06:01,040 --> 00:06:04,039 Speaker 1: And then as soon as the market started to crash, 118 00:06:04,200 --> 00:06:06,560 Speaker 1: it just started to unwind really really fast, and of 119 00:06:06,600 --> 00:06:10,120 Speaker 1: course it led to the Great UH Financial Crash two 120 00:06:10,160 --> 00:06:13,560 Speaker 1: thousand and eight. The entire banking system had built up 121 00:06:13,600 --> 00:06:16,560 Speaker 1: so much leverage because then people were buying homes, and 122 00:06:16,560 --> 00:06:20,279 Speaker 1: then those homes, those loans were being sold off, and 123 00:06:20,279 --> 00:06:23,239 Speaker 1: then companies were buying giant package of these home loans 124 00:06:23,400 --> 00:06:26,240 Speaker 1: and they were bundling them together, packing together, selling them 125 00:06:26,240 --> 00:06:29,120 Speaker 1: off in trenches. Then Wall Street was taking these packages, 126 00:06:29,160 --> 00:06:31,560 Speaker 1: they were repackaging, bundling them, and they would take some 127 00:06:32,400 --> 00:06:34,800 Speaker 1: high risk one, some low risk ones. They put them 128 00:06:34,800 --> 00:06:37,560 Speaker 1: all together to try to get this blended risk model, 129 00:06:37,760 --> 00:06:39,720 Speaker 1: and they'd packed them together and they'd sell them off, 130 00:06:39,720 --> 00:06:43,200 Speaker 1: these mortgage backed securities they were called. And so leverage 131 00:06:43,200 --> 00:06:46,280 Speaker 1: built up from the individual homeowner through the contractors put 132 00:06:46,279 --> 00:06:47,920 Speaker 1: it built up all the way through the financial system, 133 00:06:47,920 --> 00:06:51,000 Speaker 1: all the way through Wall Street and into the global 134 00:06:51,040 --> 00:06:53,560 Speaker 1: financial system where all the banks of the world were 135 00:06:53,560 --> 00:06:56,919 Speaker 1: now trading these mortgage backed securities, and it became a 136 00:06:56,920 --> 00:06:59,160 Speaker 1: big mess. So when the financial system crashed, there was 137 00:06:59,240 --> 00:07:02,200 Speaker 1: exposure or to all of this, and this great unwind 138 00:07:02,360 --> 00:07:07,479 Speaker 1: just dragged everything down. Now, I've told you that a 139 00:07:07,600 --> 00:07:09,880 Speaker 1: story just so you can get an understanding of something 140 00:07:09,920 --> 00:07:12,880 Speaker 1: that you understand, something that you know, so you can 141 00:07:12,960 --> 00:07:17,760 Speaker 1: understand how this crypto market crash is also part of 142 00:07:17,760 --> 00:07:21,680 Speaker 1: the great unwind, and how it's interesting that we saw 143 00:07:21,800 --> 00:07:26,320 Speaker 1: Bitcoin was created out of the great financial crash. As 144 00:07:26,320 --> 00:07:30,560 Speaker 1: a matter of fact, it was who was developed by 145 00:07:30,600 --> 00:07:35,280 Speaker 1: Sotoshi Nakamoto famously put a line of text in the 146 00:07:35,440 --> 00:07:38,000 Speaker 1: very first block that was mined on the Bitcoin network 147 00:07:38,400 --> 00:07:41,560 Speaker 1: saying that the chancellors on the brink of another another bailout, 148 00:07:41,840 --> 00:07:44,800 Speaker 1: so basically showing that this was because of the bailouts 149 00:07:44,800 --> 00:07:47,120 Speaker 1: that was happening with the banking system, and so we 150 00:07:47,120 --> 00:07:49,360 Speaker 1: wanted to create something in a response to that so 151 00:07:49,400 --> 00:07:52,200 Speaker 1: that we could get rid of those problems. We would 152 00:07:52,240 --> 00:07:56,880 Speaker 1: be subject to those problems happening again. You know, a 153 00:07:56,880 --> 00:08:00,160 Speaker 1: lot of times it's hard to see where decisions are. 154 00:08:00,200 --> 00:08:04,160 Speaker 1: Things will take us um and so mistakes are made. Right, 155 00:08:04,440 --> 00:08:06,200 Speaker 1: A lot of times people think that we should, you know, 156 00:08:06,280 --> 00:08:09,960 Speaker 1: move fast and and take chances and break things. But 157 00:08:09,960 --> 00:08:11,960 Speaker 1: but you're trying to learn from those mistakes, so you 158 00:08:12,000 --> 00:08:15,480 Speaker 1: don't make those same mistakes again. My dad told me 159 00:08:15,800 --> 00:08:17,640 Speaker 1: over and over and over as I was growing up. 160 00:08:17,680 --> 00:08:20,480 Speaker 1: You pounded into my head always that once it's an accident, 161 00:08:20,520 --> 00:08:23,280 Speaker 1: and twice as stupid. So that means that, hey, look, 162 00:08:23,280 --> 00:08:25,360 Speaker 1: we all make accidents, right, Let's just keep trying, try 163 00:08:25,360 --> 00:08:26,960 Speaker 1: and try, and we will make accidents, but just don't 164 00:08:27,040 --> 00:08:32,679 Speaker 1: make the same mistakes again. But unfortunately we make same 165 00:08:32,679 --> 00:08:35,760 Speaker 1: mistakes again. Is unfortunately U two things I think. One 166 00:08:35,800 --> 00:08:39,000 Speaker 1: they say that history doesn't repeat it rhymes well, it 167 00:08:39,040 --> 00:08:41,080 Speaker 1: does repeat, and and it does rhyme. So we see 168 00:08:41,120 --> 00:08:42,960 Speaker 1: that happen again, and so they say, those who don't 169 00:08:42,960 --> 00:08:45,520 Speaker 1: know history are bound to repeat it um. But then 170 00:08:45,559 --> 00:08:48,520 Speaker 1: also we have human emotions like greed that get the 171 00:08:48,520 --> 00:08:50,199 Speaker 1: best of us, and this time will be different, and 172 00:08:50,240 --> 00:08:52,120 Speaker 1: we're gonna go ahead and bed at all. And so 173 00:08:52,160 --> 00:08:54,400 Speaker 1: I like to say that that this leverage is like fire. 174 00:08:54,760 --> 00:08:56,559 Speaker 1: It can be used to warm up your house or 175 00:08:56,600 --> 00:08:58,600 Speaker 1: cook your food. Those are good things, or it could 176 00:08:58,600 --> 00:09:00,920 Speaker 1: burn your house down. So I want to explain to 177 00:09:00,920 --> 00:09:04,520 Speaker 1: you how the great unwinding the crypto market is very 178 00:09:04,559 --> 00:09:07,079 Speaker 1: similar to the two thous financial crash. What we can 179 00:09:07,200 --> 00:09:10,320 Speaker 1: learn from this, more importantly, what we can see, how 180 00:09:10,360 --> 00:09:11,760 Speaker 1: we come out of this, how we can navigate it. 181 00:09:11,760 --> 00:09:13,160 Speaker 1: I got a whole lot to cover when I come 182 00:09:13,160 --> 00:09:15,280 Speaker 1: back in a minute. You're listening to the Mark Moss 183 00:09:15,320 --> 00:09:19,760 Speaker 1: Show talking about the decentralized Revolution, talking about bitcoin, cryptocurrencies 184 00:09:19,880 --> 00:09:23,040 Speaker 1: and the greater financial system, trying to help you understand 185 00:09:23,040 --> 00:09:26,040 Speaker 1: what's going on and hopefully prevent you from making the 186 00:09:26,080 --> 00:09:28,160 Speaker 1: same mistakes again twice. So I got a lot to 187 00:09:28,160 --> 00:09:30,000 Speaker 1: cover when I come back. We'll be back in a minute, 188 00:09:30,720 --> 00:09:32,760 Speaker 1: all right, Welcome back, you are listening to the Mark 189 00:09:32,880 --> 00:09:36,000 Speaker 1: Moss Show, and uh, you know, each and every week 190 00:09:36,000 --> 00:09:37,719 Speaker 1: I'm trying to give you the play by play, give 191 00:09:37,720 --> 00:09:39,160 Speaker 1: you the context of what's going on in the world 192 00:09:39,160 --> 00:09:43,720 Speaker 1: today and what I called the decentralized Revolution. Last week 193 00:09:43,960 --> 00:09:48,160 Speaker 1: I went through, uh an entire show explaining to you 194 00:09:48,240 --> 00:09:51,440 Speaker 1: what the decentralized revolution is, because I talked about it 195 00:09:51,480 --> 00:09:53,160 Speaker 1: every week and maybe a lot of you are like, 196 00:09:53,160 --> 00:09:55,080 Speaker 1: what the heck is he talking about? So if you 197 00:09:55,160 --> 00:09:57,440 Speaker 1: didn't catch that episode, I would encourage you to go 198 00:09:57,559 --> 00:10:00,040 Speaker 1: back and check it out. UM. You can find it 199 00:10:00,120 --> 00:10:03,000 Speaker 1: on the I Heart Radio network or the I Heart 200 00:10:03,080 --> 00:10:05,920 Speaker 1: app or any podcast app that you use, iTunes, whatever, 201 00:10:06,200 --> 00:10:09,840 Speaker 1: Just search Mark Moss Podcast, Mark Moss Show and look 202 00:10:09,880 --> 00:10:14,840 Speaker 1: back to the previous week. Um, early July. Sorry, um, 203 00:10:14,880 --> 00:10:17,520 Speaker 1: and I had to show breaking down the decentralized revolution 204 00:10:17,520 --> 00:10:19,760 Speaker 1: if you want to know what that means. Um, all right. 205 00:10:19,880 --> 00:10:24,600 Speaker 1: So I was talking about how Bitcoin, which is the 206 00:10:24,640 --> 00:10:29,680 Speaker 1: technology leading this decentralized revolution, was designed after the two 207 00:10:30,080 --> 00:10:33,600 Speaker 1: Great Financial Crash to prevent a lot of the problems 208 00:10:33,920 --> 00:10:37,040 Speaker 1: that we saw from that crash, but unfortunately we sort 209 00:10:37,080 --> 00:10:41,080 Speaker 1: of ended back in the same place. And what I'm 210 00:10:41,080 --> 00:10:45,199 Speaker 1: calling the great unwind, and I'm talking about an unwind 211 00:10:45,240 --> 00:10:47,680 Speaker 1: of all this leverage, all this credit, all this depth 212 00:10:47,679 --> 00:10:50,199 Speaker 1: that's been built up in the system, and so I 213 00:10:50,240 --> 00:10:51,640 Speaker 1: want to kind of break that down so you can 214 00:10:51,679 --> 00:10:55,360 Speaker 1: see what happened, um, but also how we can navigate 215 00:10:55,360 --> 00:10:58,000 Speaker 1: this correctly and how we can maybe learn from these 216 00:10:58,080 --> 00:11:00,840 Speaker 1: mistakes so we don't get caught up. Been this again. Now, 217 00:11:01,800 --> 00:11:05,200 Speaker 1: some people were caught really, really bad. And I've heard, 218 00:11:05,280 --> 00:11:10,040 Speaker 1: unfortunately countless stories of people who have lost everything. And 219 00:11:10,080 --> 00:11:12,840 Speaker 1: some people, um, were caught up a little bit, just 220 00:11:12,920 --> 00:11:18,160 Speaker 1: they maybe their paper gains went down on paper. Now, 221 00:11:18,200 --> 00:11:21,600 Speaker 1: if your paper gains went down a little bit, whatever, 222 00:11:22,120 --> 00:11:24,800 Speaker 1: those paper gains were just paper and they'll come back eventually. 223 00:11:25,040 --> 00:11:29,280 Speaker 1: But some people lost real money as a matter of fact. Um. 224 00:11:29,320 --> 00:11:33,040 Speaker 1: I was in Austin m at Consensus as the largest 225 00:11:33,040 --> 00:11:35,800 Speaker 1: like cryptocurrency conference. It was about a month ago, and 226 00:11:35,920 --> 00:11:39,120 Speaker 1: I was at it an after event and I saw 227 00:11:39,160 --> 00:11:40,679 Speaker 1: I was Some guy came up to me and said, hey, Mark, 228 00:11:40,679 --> 00:11:42,200 Speaker 1: I'm a big fan of your show. I've been watching 229 00:11:42,200 --> 00:11:44,160 Speaker 1: your stuff, and that was cool. Wes talked for a 230 00:11:44,200 --> 00:11:46,400 Speaker 1: little bit and he said, you know, I've been I've 231 00:11:46,400 --> 00:11:48,880 Speaker 1: been in marketing my whole career and I and I 232 00:11:48,920 --> 00:11:53,160 Speaker 1: built up this company. We specifically UM did marketing for 233 00:11:53,480 --> 00:11:57,960 Speaker 1: medicare and you know, government sponsored healthcare stuff. And it 234 00:11:58,040 --> 00:12:00,319 Speaker 1: was a great business, did really well for me, and 235 00:12:00,800 --> 00:12:02,800 Speaker 1: I made a lot of money and I just sold 236 00:12:02,840 --> 00:12:05,079 Speaker 1: the company. We had a big exit, and I'm ready 237 00:12:05,080 --> 00:12:06,760 Speaker 1: to move on to the next stage of my life. 238 00:12:06,760 --> 00:12:09,559 Speaker 1: He's over fifty years old. I'm not exactly sure old 239 00:12:09,559 --> 00:12:11,840 Speaker 1: he was, but over fifty. And he said, I'm ready 240 00:12:11,880 --> 00:12:13,480 Speaker 1: to move on to this next stage of my life. 241 00:12:13,960 --> 00:12:16,559 Speaker 1: And I came to this event. I booked this event 242 00:12:16,800 --> 00:12:19,000 Speaker 1: UM and I bought the whale pass. I bought the 243 00:12:19,000 --> 00:12:20,880 Speaker 1: most expensive pass I get so I can come network 244 00:12:20,880 --> 00:12:23,320 Speaker 1: and try to find my next opportunity. He said. But 245 00:12:25,160 --> 00:12:27,960 Speaker 1: I had taken all that money from the cell of 246 00:12:28,000 --> 00:12:30,559 Speaker 1: my business, and I had put it into this terror 247 00:12:30,640 --> 00:12:34,320 Speaker 1: Luna stable coin because it's supposed to be stable and 248 00:12:34,360 --> 00:12:40,480 Speaker 1: it offers me this awesome yield, and unfortunately I lost 249 00:12:40,520 --> 00:12:46,200 Speaker 1: it all all his money. He had built this business 250 00:12:46,920 --> 00:12:49,680 Speaker 1: for most of his press professional career, had a nice exit, 251 00:12:50,120 --> 00:12:52,160 Speaker 1: was looking forward to taking that money and moving on 252 00:12:52,240 --> 00:12:54,120 Speaker 1: the next stage of his life. He put it all 253 00:12:54,200 --> 00:12:57,679 Speaker 1: in and he got caught in the great unwind and 254 00:12:57,760 --> 00:13:02,080 Speaker 1: lost it all. Now he's not alone. There's probably millions 255 00:13:02,080 --> 00:13:04,800 Speaker 1: of people that got caught up in the same situation. 256 00:13:04,840 --> 00:13:06,520 Speaker 1: It's devastating. So I want to make sure that you 257 00:13:06,559 --> 00:13:09,560 Speaker 1: don't get caught up in that same situation. And like 258 00:13:09,600 --> 00:13:10,839 Speaker 1: I said, even if you're on the perp field. So 259 00:13:10,880 --> 00:13:13,600 Speaker 1: let's take a look at this. So, as I said before, right, 260 00:13:13,960 --> 00:13:17,679 Speaker 1: bitcoin was created about thirteen years ago, UM, coming out 261 00:13:17,679 --> 00:13:22,400 Speaker 1: of the two Great financial crash, UM trying to prevent it. 262 00:13:22,480 --> 00:13:24,959 Speaker 1: And so one of the big problems, as I already explained, 263 00:13:25,000 --> 00:13:28,120 Speaker 1: is that the banks had built up all this leverage 264 00:13:28,120 --> 00:13:30,760 Speaker 1: and then the banks basically caused this crash. Now, a 265 00:13:30,800 --> 00:13:32,080 Speaker 1: lot of times people want to tell you that it 266 00:13:32,120 --> 00:13:34,080 Speaker 1: was the homeowners were way too greedy, they bought too 267 00:13:34,120 --> 00:13:36,520 Speaker 1: many houses and they were the reason why the markets crashed. 268 00:13:37,200 --> 00:13:41,040 Speaker 1: That's not true. Yes, homeowners did get too greedy, sure, 269 00:13:41,760 --> 00:13:44,680 Speaker 1: but they were being given loans by Wall Street because 270 00:13:44,720 --> 00:13:47,360 Speaker 1: Wall Street was too greedy, and Wall Street packaged these 271 00:13:47,360 --> 00:13:50,760 Speaker 1: things up into these zombie sausages and sold them and 272 00:13:50,840 --> 00:13:54,240 Speaker 1: had got way too over leverage. That's what caused the crash. 273 00:13:54,520 --> 00:13:58,240 Speaker 1: And of course, um all markets are cyclical and go 274 00:13:58,360 --> 00:14:00,960 Speaker 1: up and down. So first of all, let me just 275 00:14:01,000 --> 00:14:04,959 Speaker 1: say that the Federal Reserve, who backstops the banks, um 276 00:14:05,080 --> 00:14:08,240 Speaker 1: is supposedly they're telling you. They're telling you and I 277 00:14:08,720 --> 00:14:11,440 Speaker 1: that they print all this money per this what's known 278 00:14:11,480 --> 00:14:16,040 Speaker 1: as Kinsean economics, in order to prevent booms and bus 279 00:14:16,120 --> 00:14:19,760 Speaker 1: because nobody wants to go through a bust. Nobody wants 280 00:14:19,800 --> 00:14:22,680 Speaker 1: to lose money, right, and so if they could just 281 00:14:23,080 --> 00:14:27,160 Speaker 1: pump in more credit, more debt when those bus cycles come, 282 00:14:27,560 --> 00:14:30,560 Speaker 1: they could smooth that out. That's the story they tell us. Now, 283 00:14:30,880 --> 00:14:33,040 Speaker 1: if you believe that I might have a bridge that 284 00:14:33,080 --> 00:14:35,520 Speaker 1: I want to sell you as well, anybody with a 285 00:14:35,560 --> 00:14:38,480 Speaker 1: few minutes online could look at charts and see that's 286 00:14:38,520 --> 00:14:41,600 Speaker 1: just absolutely false. As a matter of fact, we have 287 00:14:41,680 --> 00:14:44,840 Speaker 1: boom and bust cycles going back hundreds of years, and 288 00:14:45,120 --> 00:14:48,440 Speaker 1: right when the Federal Reserve was created nineteen, the boom 289 00:14:48,440 --> 00:14:51,320 Speaker 1: and bus cycles have gotten bigger and bigger and bigger 290 00:14:51,520 --> 00:14:55,200 Speaker 1: and bigger every single time, and so they're not smoothing 291 00:14:55,240 --> 00:14:58,440 Speaker 1: anything out. Now. Boom and bust cycles are normal because 292 00:14:58,480 --> 00:15:03,840 Speaker 1: we're humans and things change, styles change, what we want 293 00:15:03,880 --> 00:15:08,160 Speaker 1: and need change. Uh, greed happens, and people go you 294 00:15:08,200 --> 00:15:09,680 Speaker 1: know too far one way and then they have to 295 00:15:09,680 --> 00:15:11,920 Speaker 1: swing back the way. There's all types of reasons. Why 296 00:15:12,360 --> 00:15:15,640 Speaker 1: you know, I was a manufacturer selling, um, what were 297 00:15:15,680 --> 00:15:18,120 Speaker 1: those last things? So those fidget spinners, for example, right, 298 00:15:18,120 --> 00:15:20,440 Speaker 1: that was a huge boom. Everybody wanted them. You're you're 299 00:15:20,480 --> 00:15:22,240 Speaker 1: ordering tons and tons and tons. You can't keep up 300 00:15:22,240 --> 00:15:24,040 Speaker 1: with the demand. And then all of a sudden that 301 00:15:24,240 --> 00:15:27,800 Speaker 1: nobody wants them anymore. And anybody who jumped into that business, 302 00:15:27,800 --> 00:15:29,640 Speaker 1: it was manufacturing those things, and in order a bunch 303 00:15:29,640 --> 00:15:33,160 Speaker 1: of inventories, they had a bust. It just happens, right, 304 00:15:33,400 --> 00:15:35,560 Speaker 1: people got over too overleveraged in that probably, and so 305 00:15:35,600 --> 00:15:39,320 Speaker 1: that happens, and so um. Unfortunately, that's just a natural process. 306 00:15:39,360 --> 00:15:43,120 Speaker 1: Just like the world. We have seasons, right, spring, summer, 307 00:15:43,120 --> 00:15:45,600 Speaker 1: winter fall, and so the spring everything grows, and the 308 00:15:45,640 --> 00:15:47,480 Speaker 1: winter everything dies and it keeps going, or like a 309 00:15:47,480 --> 00:15:51,080 Speaker 1: forest fire. Anyway, back to two tho eight, so the 310 00:15:51,120 --> 00:15:54,080 Speaker 1: banks created this problem. We had Bitcoin I was created 311 00:15:54,360 --> 00:15:57,120 Speaker 1: and Stosi Nakamoto put a quote in two thousand nine 312 00:15:57,320 --> 00:16:00,240 Speaker 1: and they said, quote, banks must be trusted to hold 313 00:16:00,280 --> 00:16:05,040 Speaker 1: our money and transferred electronically for us, but they lend 314 00:16:05,120 --> 00:16:08,320 Speaker 1: it out in waves of credit bubbles. With barely a 315 00:16:08,400 --> 00:16:12,560 Speaker 1: fraction in reserve, and they don't even have any reserves today. 316 00:16:12,640 --> 00:16:16,200 Speaker 1: So basically they're just they're sending out this money, creating 317 00:16:16,400 --> 00:16:19,040 Speaker 1: credit bubbles. That's what he talked about. So we give 318 00:16:19,040 --> 00:16:21,400 Speaker 1: our money to the banks, they loan the money out, 319 00:16:21,560 --> 00:16:25,880 Speaker 1: and they create these credit bubbles that inevitably crash and 320 00:16:25,920 --> 00:16:28,960 Speaker 1: cause of all. Um, there's a great movie that talks 321 00:16:29,000 --> 00:16:31,200 Speaker 1: about this, two thousand and eight, The Big Short. If 322 00:16:31,200 --> 00:16:32,600 Speaker 1: you haven't watched it or read the book, or the 323 00:16:32,640 --> 00:16:35,800 Speaker 1: book is amazing, or you could watch the movie. Um, 324 00:16:35,800 --> 00:16:38,280 Speaker 1: it's got some great actors in it. And Uh, there's 325 00:16:38,320 --> 00:16:43,480 Speaker 1: a quote that says they mistook leverage for genius. So 326 00:16:43,520 --> 00:16:45,640 Speaker 1: this kind of goes back to warm buffets quote that 327 00:16:45,960 --> 00:16:48,800 Speaker 1: a rising tide raises all boats, and so when the 328 00:16:48,800 --> 00:16:51,520 Speaker 1: markets are going up, everybody looks like a genius. You 329 00:16:51,520 --> 00:16:53,400 Speaker 1: can just close your eyes by anything and you can 330 00:16:53,440 --> 00:16:55,920 Speaker 1: make money, and then you use leverage and then you 331 00:16:56,000 --> 00:16:58,480 Speaker 1: look really smart because you made more money than everybody else. 332 00:16:58,720 --> 00:17:02,359 Speaker 1: So he says the quote, they mistook leverage for genius, 333 00:17:02,920 --> 00:17:05,400 Speaker 1: and so that's exactly what happened. Now, over the last 334 00:17:05,440 --> 00:17:07,440 Speaker 1: couple of months, we've been seeing the effects of this 335 00:17:07,560 --> 00:17:11,720 Speaker 1: in the cryptocurrency market, and we've been seeing basically all 336 00:17:11,800 --> 00:17:17,479 Speaker 1: these cryptocurrency industry giants have been melting down, and uh, 337 00:17:18,080 --> 00:17:21,800 Speaker 1: they've been basically toppling each other like a set of dominoes, 338 00:17:22,040 --> 00:17:24,440 Speaker 1: the smaller ones leading to the medium sized ones leading 339 00:17:24,440 --> 00:17:27,359 Speaker 1: to the bigger ones. And now we're pretty much wiped 340 00:17:27,400 --> 00:17:29,600 Speaker 1: out of that. We're still dealing with that, but most 341 00:17:29,640 --> 00:17:31,800 Speaker 1: of the leverage has been wiped out. But it was 342 00:17:31,840 --> 00:17:34,639 Speaker 1: basically like a bunch of nukes in the balance sheet 343 00:17:35,160 --> 00:17:38,240 Speaker 1: um of these crypto lenders that were supposed to be 344 00:17:38,280 --> 00:17:41,359 Speaker 1: holding money, but they were really just turning themselves into 345 00:17:41,680 --> 00:17:45,360 Speaker 1: over leverage, risky hedge funds. So I want to talk 346 00:17:45,359 --> 00:17:48,040 Speaker 1: about how this unwinds, where we're at with this, and 347 00:17:48,080 --> 00:17:50,320 Speaker 1: how we move forward with this. In a minute, but 348 00:17:50,440 --> 00:17:52,919 Speaker 1: you're listening to the markma Show. We're talking about the 349 00:17:53,000 --> 00:17:57,280 Speaker 1: decentralized revolution, We're talking about bitcoin, cryptocurrencies, the financial system overall. 350 00:17:57,359 --> 00:18:00,440 Speaker 1: Given you context of what's going on today, Uh, we're 351 00:18:00,440 --> 00:18:02,800 Speaker 1: gonna finish talking about what I'm calling the great unwind 352 00:18:02,800 --> 00:18:04,760 Speaker 1: and how you can stay out of trouble as this 353 00:18:04,840 --> 00:18:08,800 Speaker 1: continues and don't make the same mistake twice. I'll be 354 00:18:08,840 --> 00:18:11,000 Speaker 1: back with that and more in a minute, So don't 355 00:18:11,000 --> 00:18:13,480 Speaker 1: go away. I'm gonna be right back, all right, Welcome back, 356 00:18:13,680 --> 00:18:15,720 Speaker 1: and you are listening to the Markma Show. We're talking 357 00:18:15,720 --> 00:18:19,639 Speaker 1: about the decentralized revolution, talking about bitcoin, cryptocurrencies, the greater 358 00:18:19,680 --> 00:18:22,760 Speaker 1: financial system overall, and I'm explaining to you, if you're 359 00:18:22,760 --> 00:18:26,159 Speaker 1: just tuning in, how what we're seeing happen in the 360 00:18:26,240 --> 00:18:29,760 Speaker 1: great in the crypto economy, the great unwind, as I've 361 00:18:29,760 --> 00:18:31,359 Speaker 1: been calling with the last couple weeks, is very similar 362 00:18:31,359 --> 00:18:33,760 Speaker 1: to what happened in two thousand and eight. And bitcoin 363 00:18:33,800 --> 00:18:36,199 Speaker 1: and cryptocurrencies were designed to fix the problems in the 364 00:18:36,200 --> 00:18:39,360 Speaker 1: financial system, but found themselves doing the exact same thing. 365 00:18:39,960 --> 00:18:43,280 Speaker 1: And so we've seen, like I said, these crypto lenders 366 00:18:43,320 --> 00:18:44,960 Speaker 1: that were supposed to be like banks. They're supposed to 367 00:18:45,000 --> 00:18:48,880 Speaker 1: receive your deposits and then um be very careful with them. 368 00:18:48,880 --> 00:18:52,760 Speaker 1: Instead they turned into very risky, over leveraged like hedge funds, 369 00:18:53,320 --> 00:18:56,040 Speaker 1: and one blew up and then it had exposure to 370 00:18:56,040 --> 00:18:58,359 Speaker 1: the next, the next next, and we saw hundreds of 371 00:18:58,400 --> 00:19:04,040 Speaker 1: billions of dollars worth of notional value just collapse, just gone. 372 00:19:04,920 --> 00:19:08,440 Speaker 1: Hundreds of billions of dollars of value gone like that, 373 00:19:08,560 --> 00:19:10,560 Speaker 1: and that's real money. I mean it was on paper, 374 00:19:10,640 --> 00:19:12,639 Speaker 1: but a lot of people were expecting to have that 375 00:19:12,720 --> 00:19:16,560 Speaker 1: money and now they don't have it. Um. Now we've 376 00:19:16,600 --> 00:19:18,840 Speaker 1: I've been reporting over the last couple of weeks. I 377 00:19:18,880 --> 00:19:21,000 Speaker 1: think it's pretty much done as a matter of fact. 378 00:19:21,560 --> 00:19:24,240 Speaker 1: And the founder of f t X, A CEO Sam Bankman, 379 00:19:24,280 --> 00:19:28,200 Speaker 1: freed he's coming in backstop the last couple of exchanges 380 00:19:28,240 --> 00:19:30,400 Speaker 1: that look like they're at risk of blowing up, and 381 00:19:30,480 --> 00:19:33,960 Speaker 1: he has said that he thinks it's over. UM. I 382 00:19:34,000 --> 00:19:37,440 Speaker 1: obviously at mcgreen with him now, as I said, this 383 00:19:37,520 --> 00:19:39,560 Speaker 1: is really happening because of the leverage and the debt 384 00:19:39,600 --> 00:19:42,040 Speaker 1: that was built up, and it builds up really fast 385 00:19:42,080 --> 00:19:44,919 Speaker 1: when markets are going up. As I've explained, when they 386 00:19:44,960 --> 00:19:48,280 Speaker 1: wind up, it's the undwind that's the problem. Just like 387 00:19:48,320 --> 00:19:53,200 Speaker 1: in two now, Bitcoin was, like I said, supposed to 388 00:19:53,240 --> 00:19:56,560 Speaker 1: help us with this because now for the first time 389 00:19:56,600 --> 00:19:59,680 Speaker 1: we could custody our own money without having to give 390 00:19:59,680 --> 00:20:02,600 Speaker 1: it to bank. See the problem. So it's toshiy Knakamoto said, 391 00:20:02,600 --> 00:20:04,600 Speaker 1: if I go back to the original quote, banks must 392 00:20:04,640 --> 00:20:07,080 Speaker 1: be trusted to hold our money and transferred, but they 393 00:20:07,240 --> 00:20:10,119 Speaker 1: lend it out in waves of credit bubbles and so um, 394 00:20:10,240 --> 00:20:12,879 Speaker 1: rather than give them our money and trusting them, we 395 00:20:12,920 --> 00:20:14,520 Speaker 1: could just hold our money on our own and we 396 00:20:14,560 --> 00:20:16,560 Speaker 1: don't have to give it to them, and we don't 397 00:20:16,640 --> 00:20:19,880 Speaker 1: have to um have them put at risk because what's 398 00:20:19,880 --> 00:20:22,840 Speaker 1: known as counterparty risk getting somebody else involved. We don't 399 00:20:22,840 --> 00:20:26,359 Speaker 1: have to have that at risk. The problem is it 400 00:20:26,480 --> 00:20:29,080 Speaker 1: didn't fix it. We still ended up in the great 401 00:20:29,200 --> 00:20:33,160 Speaker 1: unwind um, which is where we're at today. Now, why 402 00:20:33,400 --> 00:20:37,600 Speaker 1: is that, Well, there's a couple of reasons why I think, um, 403 00:20:37,640 --> 00:20:40,400 Speaker 1: and we're gonna take a look at those. One is that, 404 00:20:42,200 --> 00:20:45,040 Speaker 1: you know, as humans, we have something that we suffer 405 00:20:45,119 --> 00:20:48,520 Speaker 1: from called recency bias. So whatever has been happening in 406 00:20:48,600 --> 00:20:51,080 Speaker 1: recent we just assume that's the way it is, or 407 00:20:51,200 --> 00:20:53,919 Speaker 1: normalcy bias. Whatever has been going on is normal, and 408 00:20:53,960 --> 00:20:56,400 Speaker 1: we'll get back to normal, right. And so people are 409 00:20:56,440 --> 00:20:59,199 Speaker 1: just used to putting their money in the bank, and 410 00:21:00,080 --> 00:21:01,840 Speaker 1: they used to be used to getting a little bit 411 00:21:01,880 --> 00:21:03,520 Speaker 1: of yield or a a little bit of return from the bank. 412 00:21:03,520 --> 00:21:05,640 Speaker 1: Of course, for the last decade or so, we get 413 00:21:05,640 --> 00:21:08,320 Speaker 1: basically nothing from the bank, and so we're giving them 414 00:21:08,320 --> 00:21:11,440 Speaker 1: our money and we used to be compensated, and now 415 00:21:11,600 --> 00:21:15,560 Speaker 1: we get no compensation. So these these crypto banks, if 416 00:21:15,680 --> 00:21:18,920 Speaker 1: if we'll call them that loosely, UM, they're typically called 417 00:21:19,000 --> 00:21:23,920 Speaker 1: c FI or defy, which is decentralized finance or centralized finance. 418 00:21:24,280 --> 00:21:27,199 Speaker 1: The block fives, the Celsius is the next, those are 419 00:21:27,240 --> 00:21:31,760 Speaker 1: centralized finance, and then the compound the makers that um 420 00:21:31,880 --> 00:21:36,199 Speaker 1: i've those are like defied decentralized finance. But basically, I 421 00:21:36,240 --> 00:21:39,240 Speaker 1: think that people are so used to they're so uh, 422 00:21:39,280 --> 00:21:41,520 Speaker 1: it's so normal to just put our money into the 423 00:21:41,520 --> 00:21:46,080 Speaker 1: bank that even though bitcoin is a revolution that makes 424 00:21:46,119 --> 00:21:48,920 Speaker 1: it so we don't have to do that, people still 425 00:21:48,960 --> 00:21:52,560 Speaker 1: want to. So there's that normalcy, normal reacency bias. But 426 00:21:52,600 --> 00:21:55,200 Speaker 1: then there's also the creed. So then it's like, well, 427 00:21:55,200 --> 00:21:58,119 Speaker 1: why should I hold my bitcoin or my cryptocurrency and 428 00:21:58,160 --> 00:22:01,080 Speaker 1: it just sits there doing nothing for me When I 429 00:22:01,080 --> 00:22:04,560 Speaker 1: could give it to this platform and earned five, six, seven, 430 00:22:04,600 --> 00:22:07,720 Speaker 1: eight percent, or I could do this and I could 431 00:22:07,800 --> 00:22:10,040 Speaker 1: yield farm it and I could make ten or twenty 432 00:22:10,119 --> 00:22:14,720 Speaker 1: or fifty or sixty. That's a good question. It's the 433 00:22:14,800 --> 00:22:18,840 Speaker 1: question you should be asking yourself. You might ask yourself 434 00:22:19,560 --> 00:22:22,880 Speaker 1: why someone would pay me twenty or fifty or sixty 435 00:22:22,960 --> 00:22:27,199 Speaker 1: or eighty percent when the banks pay me none, you 436 00:22:27,280 --> 00:22:30,399 Speaker 1: might wonder if it's too good to be true. Sometimes 437 00:22:30,400 --> 00:22:33,880 Speaker 1: it is. You might wonder that, um, there's some risk involved, 438 00:22:33,920 --> 00:22:36,280 Speaker 1: and maybe the lower amount of return that you would 439 00:22:36,320 --> 00:22:38,600 Speaker 1: get on that bitcoin of crypto in the bank and 440 00:22:38,680 --> 00:22:42,000 Speaker 1: in Block by Celsius et cetera, UM might be less 441 00:22:42,080 --> 00:22:44,960 Speaker 1: risky than some of those higher risk You might ask 442 00:22:44,960 --> 00:22:46,840 Speaker 1: yourself that, And if you haven't asked yourself that you 443 00:22:46,920 --> 00:22:50,840 Speaker 1: certainly should. But that's exactly what happened, and we saw, 444 00:22:51,000 --> 00:22:54,160 Speaker 1: just like in two thousand eight, all these banks had 445 00:22:54,440 --> 00:22:58,600 Speaker 1: intertwined obligations and exposure to each other that brought down 446 00:22:58,680 --> 00:23:02,320 Speaker 1: Lehman Brothers and AI et cetera. We see now thirteen 447 00:23:02,400 --> 00:23:04,919 Speaker 1: years later the same thing happened where people took their 448 00:23:04,960 --> 00:23:07,280 Speaker 1: bitcoin cryptocurrencies, which they should cuss the on their own, 449 00:23:07,640 --> 00:23:10,280 Speaker 1: but instead they put them into banks. The banks started 450 00:23:10,320 --> 00:23:14,040 Speaker 1: doing all these risky loans, started getting this cross contamination 451 00:23:14,080 --> 00:23:18,720 Speaker 1: to each other, and then it all went south. Now, 452 00:23:18,800 --> 00:23:21,760 Speaker 1: some of these um, some of these troubled entities, like 453 00:23:21,800 --> 00:23:24,639 Speaker 1: Block five for example, was able to get a bailout. 454 00:23:25,160 --> 00:23:28,320 Speaker 1: So back to the two financial crash. Some of them 455 00:23:28,560 --> 00:23:31,560 Speaker 1: got bailouts like A I, D. Some of them didn't, 456 00:23:31,720 --> 00:23:34,360 Speaker 1: and so Block five was able to get I'm a bailout. Now, 457 00:23:34,400 --> 00:23:36,960 Speaker 1: the one difference that I have that I think is 458 00:23:37,000 --> 00:23:40,040 Speaker 1: a very important difference to understand is that in two 459 00:23:40,080 --> 00:23:42,120 Speaker 1: thousand eight, if some of you guys are old enough 460 00:23:42,119 --> 00:23:45,920 Speaker 1: to remember this, in two thousand eight, supposedly the belt 461 00:23:45,960 --> 00:23:47,359 Speaker 1: the banks we're gonna melt down, and the a t 462 00:23:47,520 --> 00:23:49,240 Speaker 1: MS we're going to run dry, is what they told us, 463 00:23:49,440 --> 00:23:52,639 Speaker 1: And so the government had to step in and issue 464 00:23:52,680 --> 00:23:55,720 Speaker 1: emergency credit of seven hundred billion dollars. At the time, 465 00:23:55,760 --> 00:23:58,280 Speaker 1: that was an amazing amount of money. It was like, no, 466 00:23:58,440 --> 00:24:04,240 Speaker 1: you can't do that, it's gonna and everything. Uh. But 467 00:24:04,400 --> 00:24:07,560 Speaker 1: what's important to understand is that came from the government, 468 00:24:07,560 --> 00:24:10,639 Speaker 1: from the FED. They came from your tax dollars, meaning 469 00:24:11,200 --> 00:24:14,840 Speaker 1: you socialize those losses to the banks had private gains. 470 00:24:15,160 --> 00:24:18,640 Speaker 1: All that money they made that was made privately, they 471 00:24:18,680 --> 00:24:21,879 Speaker 1: got to keep it. But when they lost, they didn't 472 00:24:21,880 --> 00:24:26,080 Speaker 1: suffer the losses that those losses were socialized through your 473 00:24:26,080 --> 00:24:28,280 Speaker 1: in I taxes. Now, what's a little bit different in 474 00:24:28,280 --> 00:24:31,359 Speaker 1: this crypto space is that no government or FED stepped 475 00:24:31,359 --> 00:24:34,040 Speaker 1: in to save any of them. Uh, some of them 476 00:24:34,080 --> 00:24:37,119 Speaker 1: saved each other so for example, f t X jumped 477 00:24:37,119 --> 00:24:40,679 Speaker 1: in and bailed out block five. Um, but it wasn't 478 00:24:41,320 --> 00:24:43,399 Speaker 1: it wasn't coming from the taxpayers. And this is a 479 00:24:43,440 --> 00:24:46,400 Speaker 1: big thing. So bitcoin did sort of fix this because 480 00:24:46,440 --> 00:24:48,879 Speaker 1: what happens is we live in a world today with 481 00:24:48,960 --> 00:24:53,960 Speaker 1: no personal responsibility. So um, you know, I'm I'm free 482 00:24:54,000 --> 00:24:56,200 Speaker 1: to make whatever bad decisions I want and someone's gonna 483 00:24:56,200 --> 00:24:58,560 Speaker 1: come bail me out. Or of course, these banks they 484 00:24:58,560 --> 00:25:00,399 Speaker 1: can do as be as risky as they want, and 485 00:25:00,440 --> 00:25:03,199 Speaker 1: they can get a bail out. And so what we 486 00:25:03,240 --> 00:25:06,359 Speaker 1: should see is these banks, when they make risky loans 487 00:25:06,600 --> 00:25:09,600 Speaker 1: and they lose their money, they should go out of business. 488 00:25:10,000 --> 00:25:13,080 Speaker 1: When the airlines um, instead of saving their money or 489 00:25:13,080 --> 00:25:16,439 Speaker 1: reinvesting it, they just bought a bunch of stock by backs. 490 00:25:16,520 --> 00:25:19,080 Speaker 1: And then when the markets turn south in twenty they 491 00:25:19,080 --> 00:25:22,600 Speaker 1: didn't have any money. They should have gone bankrupt like 492 00:25:22,760 --> 00:25:26,800 Speaker 1: they should have had uh, some sort of consequence. Otherwise 493 00:25:26,840 --> 00:25:29,800 Speaker 1: it creates what's known as moral hazard. And again that 494 00:25:29,880 --> 00:25:32,920 Speaker 1: was something that came out of that crash, at least 495 00:25:32,920 --> 00:25:36,520 Speaker 1: for me, a moral hazard, which is basically, um, there's 496 00:25:36,920 --> 00:25:40,920 Speaker 1: they have no reason, no moral reason to be concerned 497 00:25:41,040 --> 00:25:43,520 Speaker 1: because they know that no matter how much dangers they 498 00:25:43,520 --> 00:25:46,080 Speaker 1: get themselves into. There's a bailoutcoming, and so we need 499 00:25:46,080 --> 00:25:48,399 Speaker 1: to we need to see consequence. And that's exactly what 500 00:25:48,520 --> 00:25:52,880 Speaker 1: did happen with bitcoin and cryptocurrency where these um most 501 00:25:52,880 --> 00:25:56,480 Speaker 1: of these agencies that the Three arrows, Capital, the Terror, Luna, 502 00:25:56,520 --> 00:25:59,280 Speaker 1: et cetera. They took way too much risk. The people 503 00:25:59,320 --> 00:26:01,160 Speaker 1: got involved with them and took way too much risk, 504 00:26:01,800 --> 00:26:04,160 Speaker 1: and they all lost it all. And I don't wish 505 00:26:04,200 --> 00:26:08,600 Speaker 1: that on anybody, but it it represented responsibility and those 506 00:26:08,640 --> 00:26:11,480 Speaker 1: people hopefully won't make that same mistake twice. Like touching 507 00:26:11,520 --> 00:26:13,240 Speaker 1: your hand on a hot stove, you don't want to 508 00:26:13,240 --> 00:26:16,000 Speaker 1: do that again. But the problem is the moral hazard. 509 00:26:16,040 --> 00:26:18,600 Speaker 1: What we have in the traditional banking system is that 510 00:26:18,720 --> 00:26:21,360 Speaker 1: these banks make bad decisions and they get billed out, 511 00:26:21,680 --> 00:26:24,120 Speaker 1: which means they don't learn any lesson. As a matter 512 00:26:24,119 --> 00:26:26,040 Speaker 1: of fact, the lesson they learned is that they should 513 00:26:26,040 --> 00:26:28,359 Speaker 1: take even more risk next time, because they could make 514 00:26:28,400 --> 00:26:31,679 Speaker 1: even more money on that risk, and if they lose it, 515 00:26:31,720 --> 00:26:34,600 Speaker 1: who cares because they're going to get bailed out. But 516 00:26:34,640 --> 00:26:37,800 Speaker 1: that's not what happened Celsius is it didn't get bailed 517 00:26:37,800 --> 00:26:40,320 Speaker 1: out three years. Capital didn't get bailed out Voyager Digital, 518 00:26:40,359 --> 00:26:43,800 Speaker 1: how to declare bankruptcy UM, And like I said, it's 519 00:26:43,840 --> 00:26:49,280 Speaker 1: unfortunately they took a lot of depositor money with them. Now, UM, 520 00:26:49,320 --> 00:26:51,920 Speaker 1: it cascaded from Luna and then it went all the 521 00:26:51,960 --> 00:26:56,320 Speaker 1: way down into what I'm calling the three horsemen of 522 00:26:56,440 --> 00:26:59,760 Speaker 1: the crypto apocalypse. So I explain to you what these 523 00:26:59,760 --> 00:27:03,520 Speaker 1: three uh, the three horsemen of the crypto apocalypse are. UM. 524 00:27:03,600 --> 00:27:07,240 Speaker 1: We'll talk about how we're coming out of this, UM, 525 00:27:07,320 --> 00:27:10,359 Speaker 1: what you need to know to survive this, and so 526 00:27:10,440 --> 00:27:12,320 Speaker 1: much more. In a minute. You're listening to the Marketma show. 527 00:27:12,359 --> 00:27:16,320 Speaker 1: We're talking about the decentralized revolution, We're talking about bitcoin, cryptocurrencies. 528 00:27:16,800 --> 00:27:20,359 Speaker 1: We're talking about UM, the problem that bitcoin was created 529 00:27:20,400 --> 00:27:24,520 Speaker 1: to solve, and how we kind of found ourselves right 530 00:27:24,520 --> 00:27:28,119 Speaker 1: back in the very same place. But this time it 531 00:27:28,520 --> 00:27:32,360 Speaker 1: didn't rhyme. I'm sorry it didn't repeat it rhymed. It's 532 00:27:32,359 --> 00:27:34,600 Speaker 1: a little bit different, and I want you understand that. 533 00:27:34,600 --> 00:27:36,719 Speaker 1: Most importantly, I want you to understand the problems so 534 00:27:36,880 --> 00:27:38,760 Speaker 1: you don't make the same mistakes again. I'll be back 535 00:27:38,800 --> 00:27:41,520 Speaker 1: with all that and more in a minute. Don't go away, 536 00:27:41,720 --> 00:27:44,280 Speaker 1: I'm gonna be right back, all right. Welcome back. You're 537 00:27:44,280 --> 00:27:48,640 Speaker 1: listening to the MARKETMA show. We're talking about the decentralized revolution. 538 00:27:48,680 --> 00:27:52,560 Speaker 1: Of course, we talked about bitcoin, cryptocurrencies, the greater macro 539 00:27:52,720 --> 00:27:56,280 Speaker 1: economic financial system that we're moving through, that's that's literally 540 00:27:56,359 --> 00:27:58,879 Speaker 1: changing right before our very eyes. And we're talking about 541 00:27:59,119 --> 00:28:02,320 Speaker 1: continuing to talk about the Great Unwind as I've been 542 00:28:02,359 --> 00:28:06,479 Speaker 1: calling it, how the Great Crypto Unwind is a rhyme, 543 00:28:06,720 --> 00:28:09,399 Speaker 1: a very similar instance of what happened in the two 544 00:28:09,720 --> 00:28:13,960 Speaker 1: eight great financial crash as well, and basically a shakeout 545 00:28:14,080 --> 00:28:17,720 Speaker 1: of the leverage that got built into there. Now it 546 00:28:18,560 --> 00:28:20,520 Speaker 1: As I said, people are just used to putting their 547 00:28:20,520 --> 00:28:22,480 Speaker 1: money in the banks, and so they just thought they 548 00:28:22,520 --> 00:28:25,639 Speaker 1: should put their bitcoin and cryptocurrency into these exchanges and 549 00:28:25,640 --> 00:28:28,359 Speaker 1: into these yield farming things. Um, and a lot of 550 00:28:28,400 --> 00:28:31,239 Speaker 1: people didn't think about the amount of risk that they 551 00:28:31,240 --> 00:28:35,480 Speaker 1: were taking. And while I hate to see people lose money, 552 00:28:35,480 --> 00:28:38,440 Speaker 1: like I said, we were at the age I tweeted 553 00:28:38,440 --> 00:28:40,640 Speaker 1: this out a while ago, that we're about to see 554 00:28:40,680 --> 00:28:45,280 Speaker 1: the age of personal responsibility to snap back. Um, look, man, 555 00:28:45,360 --> 00:28:48,840 Speaker 1: you're responsible for your health. Don't listen to some doctor 556 00:28:48,880 --> 00:28:51,040 Speaker 1: on TV. He doesn't know you, he doesn't know your 557 00:28:51,040 --> 00:28:54,560 Speaker 1: own personal situation. He doesn't know your your own risk profile, 558 00:28:55,200 --> 00:28:57,320 Speaker 1: and so don't listen to him. It's up to you 559 00:28:57,360 --> 00:28:59,360 Speaker 1: to take that responsibility. Now. I know the media is 560 00:28:59,400 --> 00:29:01,680 Speaker 1: trying to tell you don't do your own research, but 561 00:29:01,800 --> 00:29:04,080 Speaker 1: do it. No one's coming to save you, No one's 562 00:29:04,120 --> 00:29:07,280 Speaker 1: looking out for your best interests because nobody knows you personally. 563 00:29:07,520 --> 00:29:11,120 Speaker 1: So some some doctor on TV Dr Fauci, he doesn't 564 00:29:11,160 --> 00:29:13,960 Speaker 1: know what you need, doesn't know your risk profile. So 565 00:29:14,000 --> 00:29:17,520 Speaker 1: look out for your own health. Um, they're not looking 566 00:29:17,520 --> 00:29:20,520 Speaker 1: out for your financial health. It's up to you. They're 567 00:29:20,560 --> 00:29:22,640 Speaker 1: not They don't know what food you need to eat. 568 00:29:22,720 --> 00:29:25,880 Speaker 1: It's up to you. So, you know, while I feel 569 00:29:25,920 --> 00:29:27,480 Speaker 1: bad for a lot of people that have made the 570 00:29:27,480 --> 00:29:30,560 Speaker 1: wrong medical decisions and it's now affecting them the wrong way, 571 00:29:31,040 --> 00:29:32,560 Speaker 1: while I make why, I feel bad for a lot 572 00:29:32,560 --> 00:29:34,840 Speaker 1: of people that have made the wrong financial decisions and 573 00:29:34,880 --> 00:29:39,120 Speaker 1: now it's unfortunately been disasters for them. Hopefully they'll learn 574 00:29:39,160 --> 00:29:41,200 Speaker 1: their lesson and hopefully even better, you and I can 575 00:29:41,320 --> 00:29:44,239 Speaker 1: learn from their lessons without having to go through that. 576 00:29:44,600 --> 00:29:47,520 Speaker 1: But but Tera Luna went down, then it started to 577 00:29:47,760 --> 00:29:50,880 Speaker 1: unwind the three hours capital we've talked about. UM, that 578 00:29:50,960 --> 00:29:56,760 Speaker 1: brought down eighteen billion dollars in assets right from there. UM. 579 00:29:56,960 --> 00:30:02,200 Speaker 1: We've yet to see how how big or or what 580 00:30:02,320 --> 00:30:06,360 Speaker 1: type of legal consequences this will bring UM, but we're 581 00:30:06,960 --> 00:30:09,240 Speaker 1: we're expecting it to be pretty severe for some of 582 00:30:09,280 --> 00:30:11,360 Speaker 1: the people at least. We're starting to see that kind 583 00:30:11,360 --> 00:30:16,080 Speaker 1: of shake out. But then this has led into the 584 00:30:16,240 --> 00:30:19,520 Speaker 1: gray scale Bitcoin trust. We talked about that UM and 585 00:30:19,560 --> 00:30:22,520 Speaker 1: so the gray scale Bitcoin trust has this massive discount, 586 00:30:22,840 --> 00:30:25,000 Speaker 1: and as that discount has been going down, it's put 587 00:30:25,040 --> 00:30:27,760 Speaker 1: a lot more pressure onto these companies that were holding 588 00:30:27,800 --> 00:30:32,720 Speaker 1: on UM. And so we've seen that. But you know, 589 00:30:32,920 --> 00:30:35,160 Speaker 1: one one thing is that, like I said, this was 590 00:30:35,200 --> 00:30:40,360 Speaker 1: supposed to bank the unbanked. So think about that for 591 00:30:40,440 --> 00:30:44,120 Speaker 1: a minute. So right now today, per the UN there's 592 00:30:44,160 --> 00:30:48,480 Speaker 1: about about half the adults in the world today have 593 00:30:48,720 --> 00:30:52,120 Speaker 1: no access to banks for a number of reasons. Mostly 594 00:30:52,160 --> 00:30:55,400 Speaker 1: they're not allowed they don't have permission to join banks. 595 00:30:55,800 --> 00:30:59,960 Speaker 1: So the US financial system, and it's uh, the swift 596 00:31:00,120 --> 00:31:03,520 Speaker 1: banking system around the world basically has requirements called k 597 00:31:03,720 --> 00:31:05,640 Speaker 1: y C Know your Customer and so you have to 598 00:31:05,680 --> 00:31:08,720 Speaker 1: have you have to have all this information and get 599 00:31:08,800 --> 00:31:11,840 Speaker 1: permission to join the financial system. Now, if you're a 600 00:31:11,920 --> 00:31:14,800 Speaker 1: kid growing up in a sanctioned country. You're a you're 601 00:31:14,840 --> 00:31:18,320 Speaker 1: an Iran, for example, Um, you don't get to join 602 00:31:18,400 --> 00:31:22,000 Speaker 1: the financial system. You're you're not allowed. In many other nations, 603 00:31:22,080 --> 00:31:24,240 Speaker 1: they just don't have the right documents. They just don't 604 00:31:24,280 --> 00:31:27,040 Speaker 1: have them. You know, you live out in the sub Sahara, 605 00:31:27,080 --> 00:31:29,600 Speaker 1: Africa or something like that, or sent deep in the 606 00:31:29,680 --> 00:31:32,640 Speaker 1: jungle of south of Central America, you just don't have 607 00:31:32,800 --> 00:31:36,200 Speaker 1: the legal documents to get a bank account, so you're 608 00:31:36,240 --> 00:31:38,680 Speaker 1: not you don't you don't have permission to join your 609 00:31:38,760 --> 00:31:42,280 Speaker 1: unbanked or in some places, even like hel Salvado, for example, 610 00:31:42,280 --> 00:31:45,000 Speaker 1: it's just too expensive to create a bank account, and 611 00:31:45,040 --> 00:31:48,840 Speaker 1: so there they don't have bank accounts. Now, I've talked 612 00:31:48,960 --> 00:31:51,120 Speaker 1: a lot about this, you know, I believe that this 613 00:31:51,120 --> 00:31:54,000 Speaker 1: this this iPhone thing that we have, these smartphone things 614 00:31:54,000 --> 00:31:57,160 Speaker 1: that we have are are like the great equalizer because 615 00:31:57,200 --> 00:31:59,920 Speaker 1: with the phone you can learn anything, and meet anyone 616 00:32:00,040 --> 00:32:03,440 Speaker 1: on and do anything. And we've seen many instances of kids, 617 00:32:04,360 --> 00:32:07,680 Speaker 1: not even teenagers, barely teenagers, creating a YouTube channel or 618 00:32:07,680 --> 00:32:09,880 Speaker 1: an Instagram account and making you know, a hundred thousand 619 00:32:09,920 --> 00:32:12,200 Speaker 1: dollars or more. So pretty much anywhere in the world. 620 00:32:12,200 --> 00:32:14,840 Speaker 1: If you have an access to a smartphone, you can 621 00:32:15,200 --> 00:32:17,760 Speaker 1: learn anything, to meet anyone, to anyone, But if you 622 00:32:17,800 --> 00:32:21,480 Speaker 1: don't have access to the financial system, then you can't. 623 00:32:23,000 --> 00:32:25,080 Speaker 1: You need access to the financial system. So we have 624 00:32:25,240 --> 00:32:27,480 Speaker 1: about half the half the world. Half the adults in 625 00:32:27,520 --> 00:32:29,960 Speaker 1: the world today are unbanked, don't have access to banking, 626 00:32:29,960 --> 00:32:32,040 Speaker 1: and so the bitcoin is supposed to solve that. So 627 00:32:32,120 --> 00:32:35,680 Speaker 1: in al sov it All, for example, anyone can download 628 00:32:35,760 --> 00:32:40,120 Speaker 1: a bitcoin wallet, no permission needed, downloaded, and they could 629 00:32:40,160 --> 00:32:43,200 Speaker 1: instantly start receiving and sending digital payments. There in the 630 00:32:43,240 --> 00:32:48,520 Speaker 1: global financial system. It's the great equalizer, and we're supposed 631 00:32:48,560 --> 00:32:51,400 Speaker 1: to be able to reach the unbanked. So all these 632 00:32:51,400 --> 00:32:53,160 Speaker 1: adults that don't have acts to the finance system can 633 00:32:53,200 --> 00:32:57,760 Speaker 1: now join the financial system, and um, those of us 634 00:32:57,800 --> 00:33:01,560 Speaker 1: that are banked, we could un bank ourselves instead of 635 00:33:01,600 --> 00:33:05,640 Speaker 1: trying or trusting the counterparty risk of one of these 636 00:33:05,640 --> 00:33:09,240 Speaker 1: financial institutions that have proven time and time again that 637 00:33:09,240 --> 00:33:11,959 Speaker 1: that they can't be trusted, instead of being banked with 638 00:33:12,000 --> 00:33:15,240 Speaker 1: one of them, we could unbank ourselves and we could 639 00:33:15,240 --> 00:33:19,360 Speaker 1: move on to a bitcoin or crypto currency thing. And 640 00:33:19,360 --> 00:33:21,840 Speaker 1: that's how it's supposed to be. We're supposed to be unbanked. 641 00:33:22,160 --> 00:33:27,280 Speaker 1: But unfortunately, like I said, even though the greatest technological 642 00:33:27,280 --> 00:33:30,520 Speaker 1: revolution we've seen to date me being able to hold 643 00:33:30,520 --> 00:33:32,200 Speaker 1: my own assets. Now, what do I mean by that 644 00:33:32,200 --> 00:33:35,920 Speaker 1: claim the greatest technological revolution? Well, the oldest problem that 645 00:33:35,960 --> 00:33:38,440 Speaker 1: mankind has had since the beginning is how do I 646 00:33:38,480 --> 00:33:40,400 Speaker 1: hold my hold my assets in a way that can't 647 00:33:40,520 --> 00:33:47,120 Speaker 1: be stolen. So we've made villages, and we've made kingdoms 648 00:33:47,120 --> 00:33:50,480 Speaker 1: and cities and countries, et cetera. But bitcoin solve that. 649 00:33:51,200 --> 00:33:53,760 Speaker 1: We don't need to trust somebody else. We can hold 650 00:33:53,800 --> 00:33:57,200 Speaker 1: it ourselves. But most people still aren't in that. They 651 00:33:57,280 --> 00:34:00,240 Speaker 1: still want to give my money to somebody, A still 652 00:34:00,280 --> 00:34:03,160 Speaker 1: holds it for me. Please just just hold it. Celsius 653 00:34:03,160 --> 00:34:06,960 Speaker 1: block Fire. Even Alex mcsinski from Celsius went around telling 654 00:34:07,000 --> 00:34:10,040 Speaker 1: people people don't want to hold their own cryptocurrency. It's 655 00:34:10,040 --> 00:34:12,680 Speaker 1: too it's too complicated, it's too hard, it's too much, 656 00:34:12,680 --> 00:34:15,000 Speaker 1: it's too risky. Just give it to us, we'll hold 657 00:34:15,040 --> 00:34:20,200 Speaker 1: it for you. Well look what happened. So you know 658 00:34:20,600 --> 00:34:23,040 Speaker 1: if I hold it myself. Back to this age of 659 00:34:23,080 --> 00:34:26,319 Speaker 1: personal responsibility, if I hold it myself, I need to 660 00:34:26,320 --> 00:34:29,240 Speaker 1: be personally responsible for it so it doesn't get stolen. 661 00:34:30,520 --> 00:34:32,919 Speaker 1: But it's not that hard to do. Now, if I'm 662 00:34:32,920 --> 00:34:34,880 Speaker 1: trying to hold my gold, how do I hold my 663 00:34:34,920 --> 00:34:37,799 Speaker 1: gold in a way that it doesn't get stolen? Uh? 664 00:34:37,800 --> 00:34:39,279 Speaker 1: You know in old days, I might go bury it 665 00:34:39,280 --> 00:34:41,640 Speaker 1: and make a treasure map for it, um. And then 666 00:34:41,640 --> 00:34:43,600 Speaker 1: but then I have to secure the map. What happens 667 00:34:43,640 --> 00:34:47,000 Speaker 1: if I don't scare the map properly? If I have 668 00:34:47,680 --> 00:34:49,160 Speaker 1: a lot of gold, I might have to build a 669 00:34:49,160 --> 00:34:50,840 Speaker 1: big vault and a safe. I might have to have 670 00:34:50,880 --> 00:34:53,759 Speaker 1: security they're guarding it to be very expensive, to be 671 00:34:53,840 --> 00:34:56,799 Speaker 1: very difficult for me to secure my wealth in gold. Um. 672 00:34:56,800 --> 00:34:58,920 Speaker 1: I could leave it under my pillow or under my mattress. 673 00:34:58,960 --> 00:35:00,840 Speaker 1: But then if I'm gone, so we can come steal it, 674 00:35:00,960 --> 00:35:04,439 Speaker 1: right um. Or you know, we could put the gold 675 00:35:04,440 --> 00:35:06,080 Speaker 1: into a bank and the bank could give us an 676 00:35:06,080 --> 00:35:09,200 Speaker 1: iou um that we can come get that goal whenever 677 00:35:09,200 --> 00:35:11,560 Speaker 1: we want. But then in nineteen thirty three, the U. S. 678 00:35:11,600 --> 00:35:14,479 Speaker 1: Government seized everybody's gold that was sit in the bank. 679 00:35:14,800 --> 00:35:17,240 Speaker 1: And so you have option one. I store it myself, 680 00:35:17,280 --> 00:35:19,239 Speaker 1: but I have to take responsibility, have to take to 681 00:35:19,280 --> 00:35:22,120 Speaker 1: take the risk of that. Option two is I give 682 00:35:22,160 --> 00:35:23,360 Speaker 1: it to somebody else but not have to deal with 683 00:35:23,400 --> 00:35:25,840 Speaker 1: that risk, and that's what happened with crypto. Now hopefully 684 00:35:25,840 --> 00:35:28,800 Speaker 1: you're learning from this. So uh, the learning lesson to 685 00:35:28,880 --> 00:35:33,200 Speaker 1: have here is that those that use these risky ways 686 00:35:33,239 --> 00:35:37,440 Speaker 1: to earn yield, these defy yield farming it was called. Um. 687 00:35:37,520 --> 00:35:40,719 Speaker 1: Unfortunately a lot of them lost everything. Now, I don't 688 00:35:40,760 --> 00:35:43,239 Speaker 1: want to risk a hundred percent of my investment for 689 00:35:43,360 --> 00:35:45,920 Speaker 1: a five, six ten percent yield. That doesn't work. I 690 00:35:45,960 --> 00:35:48,759 Speaker 1: want to invest tend to make a hundred now, Um, 691 00:35:48,840 --> 00:35:52,560 Speaker 1: what about those who weren't involved in this? So this 692 00:35:52,640 --> 00:35:55,720 Speaker 1: has brought the price of bitcoin from forty or fifty 693 00:35:55,719 --> 00:35:59,799 Speaker 1: thousand down to twenty So even me not involved in 694 00:35:59,840 --> 00:36:03,799 Speaker 1: the these risky things, I've seen my paper value of 695 00:36:03,880 --> 00:36:08,360 Speaker 1: my bitcoin or cryptocurrency drop. So I got affected even 696 00:36:08,360 --> 00:36:10,600 Speaker 1: though I wasn't involved in this. My hope is that 697 00:36:11,440 --> 00:36:14,920 Speaker 1: because there was no bail out, most of these people 698 00:36:15,040 --> 00:36:18,360 Speaker 1: learn their lesson. Um. What I hope is that we 699 00:36:18,400 --> 00:36:21,200 Speaker 1: don't repeat this again. I believe the paper value is 700 00:36:21,239 --> 00:36:23,280 Speaker 1: going to come back. Like I'm gonna hold my bitcoin, 701 00:36:23,360 --> 00:36:27,560 Speaker 1: I'm gonna hold my cryptocurrency. It's gonna come back in value. Um, 702 00:36:27,680 --> 00:36:29,520 Speaker 1: So I lost it on paper, I'll get it back 703 00:36:29,520 --> 00:36:32,600 Speaker 1: on paper. But I hope that we'll see these things 704 00:36:32,640 --> 00:36:34,400 Speaker 1: be used less and less and less in the future, 705 00:36:34,800 --> 00:36:38,759 Speaker 1: because at least this is different than two. There was 706 00:36:38,840 --> 00:36:42,400 Speaker 1: no lesson learned, there's no accountability, but in the cryptocraph 707 00:36:42,560 --> 00:36:45,520 Speaker 1: there was. I believe people will go to jail. I 708 00:36:45,560 --> 00:36:48,520 Speaker 1: believe people who lost money won't do this again. And 709 00:36:48,560 --> 00:36:51,080 Speaker 1: I believe that we'll learn our lesson this time, and 710 00:36:51,080 --> 00:36:53,759 Speaker 1: the paper games come back and we're all better off. 711 00:36:53,800 --> 00:36:56,120 Speaker 1: But what do you think. I'd love to hear your comment. 712 00:36:56,120 --> 00:36:57,279 Speaker 1: You can shoot me a message on any of the 713 00:36:57,280 --> 00:37:00,200 Speaker 1: social media platforms at one Mark Moss. That's right at 714 00:37:00,200 --> 00:37:03,359 Speaker 1: one Mark Moss. Check out my website at one Mark 715 00:37:03,440 --> 00:37:06,360 Speaker 1: moss dot com for more resources. And that's what I 716 00:37:06,440 --> 00:37:11,080 Speaker 1: got to talk about today. Um we repeated, or we rhymed, 717 00:37:11,120 --> 00:37:14,080 Speaker 1: we didn't repeat. Thanks for listening until next time.