All Pegs Were Meant To Be Broken

to keep you informed. I'm bringing you some educations you can really understand exactly what's going on. And of course I try to bring to you some of the best and brightest guests in the space so you don't just have to hear me all the time. And right now we are going to dig into some big topics because there is a lot going on in the macro financial space and then specifically inside the cryptocurrency space. Stuff is blowing up left and right. It's what we might call

a crypto currency blood bath. And I know that sounds bad, but that's basically what we're looking at. A blood bath. Now what do I mean by that? Well, one, it's uh, people are dying, not not literally, um well, unfortunately, some literally uh. Most and we'll talk about that in a second. But it's a sea of red right when you look at the charts, it's all red. As a matter of fact, the SMP five hundred this week was one day was completely right. It means every single position in the SMP

five hundre it was down. That's bad news. But inside the cryptocurrency space it's been bad. I talked about a couple of weeks ago talking about this terror Luna us stable coin terror Luna backed uh. It's an algorithmically pegged to try to stay at a dollar which didn't work. Um, and it was backed by their own token called Tera. I went deep into that. If you miss that, I'm not gonna go through all that again because people didn't miss it and they don't want to hear it again. However,

if you did, don't worry. I got your back. You can check it out on the podcast network. Just search Mark Moss podcast on the Heart Radio network, iTunes wherever you get your podcast you can find just search markets podcast now. UM, if you did miss it, don't miss it again. If you're not driving, pull your phone out right now. Put a calendar reminder to be with me on this channel on this time, right now, each and

every week, so you don't miss it. But as I warned a couple of weeks ago, with that Terry Luna um crash, I warned there would be more problems. I warned that these Wall Street traders would be coming for more of these pegs. I said that all pegs are meant to be broken. I had. I had a conference. I hold my own conferences. Is called Market Disruptors Live. Market Disruptors live dot com if you want to check it out. We just had one in May in Dallas, Texas.

And at the event, I was stopped by somebody they're attending, and they asked me, what's your take on the Terror Luna stable coin, because you could take it, you could stake it on this thing called Anchor Protocol and earn about nine point six And I told him that all pegs are meant to be broken, not necessarily meant to be. They didn't, they didn't design them to meant to be. But the traders are going to target them and try to break them and get really wealthy off of that.

Well maybe not always wealthy, but increase their stack if you will. However, George Soros became famously wealthy by breaking the peg, breaking the Bank of England in a single day, making a billion dollars. And so that's what they do. They play that they're gonna target it, they're gonna try to break it. They're gonna try and make money. We've seen this, you know, in the eighties through these corporate raiders.

There's a movie Wall Street made about it. They made a remake of that, or an extension of that movie called Money Never Sleeps. It's a great movie, kind of covers what happened, um in the two Great Financial Crash. If you haven't watched it, you should. Um. And we thought in game stop and you know now here it is targeting. There's Tara Luna and it's a shame. You know, I'm gonna explain what's going on. We're gonna look at the contagion that's happened. But you know, in regards to this,

it's a shame. Um. You know, you have these these wealthy head fund guys, you know, maybe billionaires, and they're hoping to make an extra half a billion dollars when they already got billions and uh, you know whatever, good for them. However, they're ruining the lives of thousands and hundreds of thousands of people. And when I say it's actually blood bath, like people died in that terror learned thing, I heard over a dozen people had taken their life,

which is a real shame. I was in. I was in Austin, Texas last weekend for one of the biggest cryptocurrency conferences in the world called Consensus, and I was at one of their official after parties and somebody stopped me and they said, hey, you know I'm a I'm a big fan, and um, I'm here at this conference. I booked this ticket a while ago. I put the highest level ticket I could get so I could get the networking. And I was really hoping to launch this

new business inside this cryptocurrency space. And um, you know, I'm He was about fifty years old, and uh, if you're listening, I'm not going to call you about by name, but um, you know I'm talking about you. But anyway, he said, you know, I've I've had this marketing business for a long time and I did really really good for myself and I just sold it and uh, you know, have a good amount of money. I think it was enough money to retire off of it didn't give me

the exact amount. He kind of hinted to it, Um, it's enough to retire off of. And he put it all into stable coin, so real quick. For those that are not up to speed, a stable coin basically means I give you a dollar, you give me a token back that's redeemable for a dollar. And they call it stable because it doesn't have the volatility that bitcoin or the cryptocurrencies would have. Instead, it's always worth one dollar

and so let that. So he's like, oh, you know stable coins at stable, I don't have to worry about it. And he took his eye off the ball, and he didn't measure the risk that was involved. And we're gonna talk about the risk here in a minute. He didn't look at the risk. He took his eye off the ball. Uh, he saw that the peg was breaking. But then, um, what happened is you know all of these people are like, no, no, no, don't sell, don't sell, don't sell. It's gonna come back.

This happened before you know, it loses the peg, but then it comes back. If you lose, now you're gonna you're gonna take the losses, right, That's what they said. You only you only lose if you sell hold hold, hold, hold whole. Within three days, it was gone. He lost everything. Decades he worked building up this company, he put it all in, he let it all ride, and he lost it all. And now here he isn't in, uh, you know, fifty years old and basically has to start all over.

And I really sympathize with that. You've heard my story. When I was thirty years old, I had to start all over. Now thirty and fifties a little bit different, but you know, I sympathized for him. He can, he can, he can make it back. I know he can. I I did. I know he can as well. He still has those skills. However, the point that I had to learn the hard way, the point that he just had to learn the hard way, in the point I'm hoping you don't have to learn the hard ways. Never go

all in, ever, don't do it. Don't do it. It's not worth it. The the the reward of being right is not worth the risk of being wrong. And I said, hey, once they started taking these out, they're gonna start going after all these other pigs. So um, all these leveraged positions like the game stop I referenced right, it was a short squeeze. All the people had leveraged shorts against game Stop, and so they tried to push it back up and squeeze that short because they were using leverage.

Keyword being leverage here, and so you need to be very very careful about these leverage positions, including taking your Bitcoin or other cryptocurrencies and leveraging against them using debt. That's that's what leverage is, using debt. I like to say that leverage is sort of like fire. Leverages. Like fire, it can warm your house or it can burn your house down, and that means it can work both ways.

If you use it properly, it can be very useful tool. However, if you don't use it properly, it can wipe you out. It can be disastrous, and so you've gotta be very careful with that. Now, if all you're doing is holding bitcoin only and you're not putting it on these exchanges like Terro Luna or into something like Celsius, which we're going to talk about here in a minute. And that's the next one blowing up. And now there's two or three more dominoes about the fall next because of happening

in Celsius. We're gonna talk about that. But if you just hold your bitcoin, and you just hold it in your possession, in your custody, and you don't really have a lot to worry about. Yeah, sure it's volatile, but over the long period of time, it's always continue to go up. The lowest point of bitcoin every single year has always been higher. So that's been pretty good. You know, when you look at where is it from the top,

it says a different story. But if you look at from the bottom that it's been higher every single year, then it looks pretty good. Now, if you have a you know, three year time frame at least, then you're looking pretty good. If you're looking at bitcoin on a monthly basis or weekly basis, it could tell you a different story, which is why you should never look at any of your investments that in that short time unless you're unless you're a day trader, which you shouldn't because

I don't make a lot of money. Now, I'm gonna talk about three more bombs that are sitting in the crypto space that you need to be aware of, and even if you're not involved in them, it could be disastrous for you. So I'll be right back with more. All Right, welcome back. You are listening to the markma Show, and we're talking about the decentralized revolution and that the world is going through. That's why it's so crazy. So why the world seems like it's breaking up, because it

literally is. For the last two or fifty years, the world has been working towards centralization and now that's breaking apart and we're going to decentralization. Of course it's being led. Um, I don't know about being led, but it's it's being helped along by decentralized technology, which of course we're talking about bitcoin, thinking about this cryptocurrency space, and specifically we're talking about these blow ups that are happening in this

blood bath that's been happening. And so we talked about Tera Luna. I'm not gonna go back through that again. And now the next domino, as I warned a few weeks ago, is starting to collapse, and that is Celsius. Now Celsius is they halted withdraws and that's not a good sign. Now if you have money with Celsius. This is what I know so far. Um, Basically, they halted withdraws.

The reason why is because again back to the Tera Luna, these Wall Street raiders are targeting these these funds that have leverage and they're trying to take them out in order to enrich themselves a little bit, all right, And we knew that Celsius could be liquidated if Bitcoin got below I think it was like twenty three and so

I guess what they're gonna do. They're gonna try to push bitcoin down by shorting it below twenty three thousand to liquidate Celsius, and the Celsius was trying to prevent that from happening, and so what they did supposedly is they locked all customer with draws because what happened is as soon as customers started hearing about this, they wanted

to get their money off as fast as possible. But the more money that was pulled off of Celsius a bank run and that's what it's called um, then the less collateral they had to try to bring this hedged position down. So they locked customer with draws and then they started adding more collateral and they brought their liquidation point from twenty three thousand down to eighteen thousand and fifteen thousand, and I think it sits somewhere in the

twelve to thirteen thousand range right now, which is pretty good. Um, if you have money locked up on Celsius, h you're not alone. There's lots of people that do. And it all hope isn't gone. Now. I'm gonna be real with you. It doesn't look super good, um, but there's a chance. So they brought in some They brought in some restructuring specialists who are trying to help them restructure this. You

don't think bankruptcy. And there's there's talk of a potential takeover, maybe a buy out, A big fund would would buy them out. Maybe if they can unwind this, they can prevent the liquidation event first of all, and then maybe something they get some investment to buy out and then some restructuring. Maybe there's a chance you get some of your money back. I don't know what that percentage will be.

We'll have to see, but uh, there's a chance. However, I wouldn't hold your breath, so maybe just consider it a rite off and if you get anything back, maybe consider yourself lucky. But that's where the situation is right now. But what went wrong? I think that's what we have. We want to learn that. Um. The old saying is um, fool me once, aim on you, fool me twice, shame

on me. My father has told me over and over once as an accident, twice as stupid, which means, hey, we all mit mistakes, but don't let it happen again, or you're stupid. And so basically, what the heck happened here? What can we learn? So even if you had money in or didn't, you still need to learn from this. This is a learning experience. They say, I never I never lose because I either win or I learned. So let's learn from this. Even if you didn't lose, let's

learn something for this. So what do we see? Celsius calls itself a network or a lender, but in reality it wasn't. It was like a highly leveraged lead hedge fund. Now they said that supposed it was Celsius, And and there's block fine, there's Nexto, and there's crypto dot com, and there's there's other ones. Supposedly you give them money and they give you yield back. I give you my bitcoin or my cryptocurrency, you pay me four percent or

five percent interest on it. Sounds pretty good and then they were supposedly giving able to pay me that because they would loan that bitcoin or other cryptocurrencies out, and they would only loan it to people that were overcollateralized a collateralized that way, if they um to pay back, then they could liquidate their capital and I would get my money back. That's the story that I've been told. Now that's apparently not how it was working. And so

let's see exactly what happened now. First of all, if you're giving your money to somebody, first of all, that introduces something called counterparty risk. Um. Anytime you give something to someone else, there's a chance you don't get it back, period, and it's up to you. Please do me a favorite. Never give an asset, your money, a stock or or bigcoin of cryptocurrency to somebody without knowing if they'll be

able to pay you back. What that risk is. You need to quantify what that risk is of not getting that back. That step number one, which is why I'm sorry, I'm ready for the hate mail. But that's why defy as a scam, Defy standing for decentralized finance, which is what this was doing. All right, You should never loan your money to somebody you don't know, and I would never expect somebody. I wouldn't even want someone I don't

know to lend me money. Um, if I'm going to buy a car or house, I want the bank to determine my credit worthiness and give me a different rate than you may get based off of how good my credit is. And and if I'm gonna loan money to someone else, I'm gonna do the same thing. It should be done by a centralized entity, not a decentralized entity. We have to overcollateralized loan. All that's good for is d gen gamblers, which is exactly what this was. That's

first number thing. But so basically they're trying to um somehow get me you know, five, six, seven, eight percent interest in a world with no yield, so the bonds pay zero pretty much. How are they able to pay six? Well, they do that by going way out on the risk curve. The more they're able to pay you, the more risk they must be taking on. You know, the old saying, if it's if, if, if it's too good to be true sort of a thing. It's not necessarily the case.

But if they're able to pay that, how the heck are they getting it? Are they going way out on that risk curve? So, um, if they're doing that, do they have a good risk management plan and have they conveyed that to you? When I was in bitcoin Miami, I met with one of the top people at Celsius, I think it was the number two person, and I explained to him and I said, look, I could never I could never give you, um, you know, my bitcoin and cryptos currency for yield because I don't know what

the risk tolerance is with you. And I think that if you guys were much more transparent about it, and you would explain to people what you were doing and show some transparency, then I could. Then you would give me your risk maent plent, I could quantify that and then I can decide intelligently if I want to give you money or not, and what my risk profile is, so I know how much of my portfolio I would want to give to you. Um. So far they didn't take me up on that, but that's what I told them.

And what we can see is that they were making very risky bets and so we saw that in last December they admitted losses related to a hundred million dollar hundred twenty million dollar badger Dow hack. Now you may be asking, what the heck is a badger Dow hack, and I would say, exactly, I know what it is. It's a it's it's a it's a dow that they someone tried to create a called the badger dow um. A dow is a decentralized autonomous organization which is a

bunch of mambo jumbo um and it's badged out. It was it was, it was brand new, it was super tiny, super risky. What the heck were they doing investing into those types of projects with other people's with users funds, especially without disclosing that type of risk. Now, the converse would also be true if you've loaned money to Celsius, wouldn't you want to be paying attention to what the heck they're doing with the money. You should be, And so you should have seen that and go and shoot,

they're doing some really risky things. I wonder if I can trust that. And then last month with this Tara Tara fiasco, um Celsius pulled off at least half a billion dollars out of this Terra Luna the Inchor protocol right before it crashed. So was that good risk management or were they just lucky? Either way, what that tells me and you is that, shoot, they're taking a lot of risk and we barely got out with our skin on our skin, of our teeth, and so we should

have seen that. All right, So this is what's going on now. I want to finish explaining what's going on with Celsius so we can learn from this, and then I'm gonna tell you about the other two or three big bombs that are about to crash, and whether you have money in these or not, it's affecting you. This is why cryptocurrencies are crashing, and I want to warn you before it's too late, like I tried to warn you before these things went down, and like I said,

it's a good learning moment. I'll be back with that and more in a minute. By the way, you're listening to the Mark Moa show. We're talking about the decentralized Revolution, talking about bitcoin, cryptocurrencies, looking at through the lens of politics, finance, and technology, and right now we're having a teaching moment, a learning moment. Hopefully you can learn from this, and I'm gonna warn you on what's coming up next. So don't go away. I'm gonna be right back, all right,

Welcome back here, listening to the Mark Moa Show. And we're talking about the decentralized revolution each and every week, talking about bitcoin, talking about cryptocurrencies and looking at it through the lens, the macro lens of what's going on in the world. Now, we've been talking about what's going on in the crypto space right now that's dragging Bitcoin, ethereum and all the other cryptocurrencies down. And it's like

a domino ef act right now. I talked to you a couple of weeks ago about this terroa Luna thing, and I warned you that that the next Almano would drop, and here we are at it right now, and there's more coming. So I was just before they break talking about Celsias specifically, they locked withdrawals this week. There's a chance you might get some of your money out, but I wouldn't I wouldn't count on. I wouldn't be holding your breath. But we'll see. Let's let's let's remain hopeful

if you've got money in there. But we're trying to learn from this, and what we can see is that Celsius was doing some very very risky things. And if you had money there, you should have known about that. And if you didn't know about that, you weren't paying attention. And so hey, look, don't get down on yourself. Don't let it happen again, all right, So let's keep going down this road. UM and so UM. Basically we saw

they were doing these risky things. They barely got out of the Terra Luna by the skin of their teeth. But now they've also been in Um putting their money into something to their money, they've been putting their customer funds into something called staked Eath or it's known as STAT and it's another synthetic coin that's supposed to be pegged the original e Um, which means, you know, more risk um. And it's also very ill liquid, which means their money is locked up and they can't get their

money out of it. Now. Apparently Celsius holds another half billion dollars worth of this, And it's especially concerning because Ethereum is supposed to have this merge going on, and it just keeps getting delayed and delayed and delayed, and so depend on what happened with that. We could see this continuing this peg continue to break, potentially becoming unpegged like we saw with with Tera Luna, which means Celsius

could lose another half a billion dollars. Celsius also had their own token called to Sell Token, which also crashed. We saw it go from uh you know, basically just become worthless overnight. And so once these things start going, they start going really fast. Everything works until it doesn't. That's what I always say, It works until it doesn't. And that's basically what we're looking at all. Right, So what comes next? So Celsius had massive exposure to um Luna.

Who else had a massive exposure to Luna and who has exposure to Celsius. Like I said right off the bat, Celsius is causing the whole market to draw down because they're liquidating as much as they can, trying to um post more collateral. And this is what happens in the liquidation event, not different than the stock market. When the stock market crashes, it continues to crash even faster because people are trying to cover their margins and then leverage

on their stocks. That is why stocks fall really fast. Um. And then you'll also see, you know, when the stock market crashes like say two eight the stock market crash, the SMP dropped about and gold drop, Now why would gold drop? Shouldn't gold be going up during that time? And the reason why it's because of a liquidity event. When they start crashing. Everybody's selling anything they can to get money to cover that leverage position, which is exactly, um,

what happened back in the stock market. That's exactly what's happened now. So it brings the whole thing down. So whether you you only hold bitcoin and it's in your cold storage, or whether you're playing with all these things, we're all being affected by this, which I'm not super happy on. Now, somebody might just say, well, shoot, shouldn't

we pass some laws that prohibit this from happening? Um, shouldn't we pass a law that says, uh, you know, these Wall Street raiders aren't allowed to short the heck out of these things. Shouldn't we pass a law that prevents you know whatever? And And my answer is no. My answer is no. Now I'm affected just like a lot of other people, but I would still say no. And the reason why is I believe in free markets. And if somebody wants to post a risky trade, then

somebody has to take the other side of it. That's how trade works. The trade doesn't happen unless there's two willing people involved. Otherwise it's a trade. And so in a in a free market, both people believe they're getting the better end of the deal. Otherwise there would be no deal. And so somebody is willing to take that risk for the potential reward, and this person is willing to pay a potential reward for that person taking the risk.

Now other people get involved and they start betting on those two players, and then they're taking risk, and everybody's taking risk. And in a free market, that's just what happens. Um it's up to it's up to everybody to be

educated on their own. The bigger problem, though, is we're in an environment that allows us to happen in the first place, not because it's allowed legally or from a regulatory standpoint, because of the fake Fiat monetary system that just pumped eight trillion dollars into the ecosystem over the last twenty four months and basically and something called that

cantel On effect. Go ahead and google that if you want, and it says that the people that are closest to the money supply have the first advantage because they get the money first for the cheapest price, and then they start pushing it up as it goes down. So the hedge funds, the banks, they get the money first for

basically free. You and I, we don't get any money, and we certainly don't get it for free if we do get it, and so they're getting they're getting billions of dollars for basically free, and then they're using that to manipulate markets, like, for example, buying up all the single family homes in the United States. Now they're paying thirty over asking price. You and I can't do that because we have to pay well now interest rates six.

But they got the money for free, so they can afford to pay more for the house because they're not paying for the money. And they're also using that money to take out these crypto positions and so forth. And so the problem is that we need to take away the money printer that prints all this money, that gives it to them to then weaponize it against us. We don't need to pass laws to prohibit people doing stuff with their money. We need to pass a law, or not even pass a law, but just take away the

ability to print this money and gift everybody. All Right, So what's the next bomb that's about to drop? Well, let's see what do we got. We have the st H. That's a big problem. Like I said, this is this, uh, this is this new synthetic pegged version to ethereum and uh it's something that we can learn about ill liquidity. Right obviously you know it involves Celsius. Like I said, they have about half a billion dollars in there um and a lot of it is in this this st

H right now. Um, Celsius is, like I said, caught with us because it's a liquid and they've been paying down this debt which has been helping. It's pretty good. But a lot of it is caught in that. And when that blows up, who else is holding that? And that's something that we have to figure out. Um. And it looks like that next player, that next one to drop could be something called three a C if you

ever heard of That stands for three Arrows Capital. Now, three Arrows Capital wasn't really a crypto firm as far as I As far as I know, I believe there are more of like an FX trading, which is like a foreign currency reserved trader um, and they've been trading in that and they figured, hey, we'll take our you know, we'll take our chances in the crypto market as well, and they have and and apparently done really well. Now. Warren Buffett, famous who said I believe it was warm.

Bufett says that all a rising tide rises all boats. But when the tide goes out, we see who's been swimming naked, and so that's exactly what's going on here, rising tide rising all boats. Now, Um, since we've been in this long bowl market with trillions of dollars slashing around, everything's going up. Everybody looks like a genius. And Three

Arrows Capital has done really, really, really well. The problem is with all these leverage positions that allow them to grow really fast, when it works against you, the leverage also tears you down really fast, and that is part of the problem that we have. Now Three Arrows Capital UM looks like they're going down. Now. It hasn't been a formal announcement, but per the chatter I see on the street, UM, they have basically been ghosting everybody. They're

not putting out any releases. UM traders that they work with are reporting their credit lines being shut down, their funds being taken, and this is monumental. If they collapse, this will be monumental because they borrow from every single major lender. So the other ones I already mentioned Block five, NEXTO, Celsius, Genesis, etcetera.

So as I said, right, I was supposed to give my money to block find, next, Um, whatever, Celsius, and they were supposed to loan it back out again to traders who are overcollateralized traders like Three Arrows Capital, and so they've been borrowing from all these people. So if they're going down, if they're a liquid, then who has exposure? I want to tell you who has exposure. I want to tell you the dollar amounts and you will be

blown away. And then when I come back, um UM show you UM some perspective to maybe make this not look so bad. You listen to the Markma Show. We're talking about the cryptocurrency market crash. We're talking about the the centralized revolution of course bitcoin, UM and more. UM I'm gonna talk about the bombs that are about to drop, So don't go away. I'll be right back, all right, welcome back. You are listening to the Markma Show. We're

talking about the decentralized Revolution. We are talking about bitcoin. We're talking about the cryptocurrency blood bath that's been a domino effect. As I talked to warned you about a couple of weeks ago, starting with Terror Luna and now the contagion. We call that the contagion is spreading and we see it spreading into another one called Celsius, who has now suspended all withdraws. UM. I said, there's some hope, it's there's there's hope, there's maybe some money coming back.

We don't know. Don't hold your breath, but potentially, um. But now it's spreading. And I was talking about Three Arrows Capital. Now three hours Capital was borrowing money from a lot of people. Know, we don't know exactly. So some of this is speculation. I'm not trying to spread any fud. But there's some things we do know for sure and something that we don't. So for example, the last public number for three Air Capital assets was about

twenty billion dollars. Okay, so we do know that. UM. Now we don't know what they're real nav net net assets value. We don't know what that is. UM Rumors are that they might have been losing some but we know the last time it was it was about eighteen billions. We know that, we know they were borrowing from most of these major lenders. We don't know exactly who, We don't know exact amounts, but the major lenders are um Celsius who were talking about Nexo UM Block five and

Genesis which is a backslow these as well. All right, so that's some of it. Now, if we look at this eighteen billion UM, it's a big number, it's a real big number. And if they go down, then it continues to spread. So now UM again not trying to spread food on these companies. Fund means fear in certainly

in doubt. But if they are if they've loaned money to three arras capital and they show that on their balance sheet like oh we have you know, five billion dollars on our balance sheet, then their balance sheet looks strong, which allows them to back their leverage positions that they have collateral to back their positions. But if three years capital goes down, that potentially what let's call it hypothetically five billion is gone and now all of a sudden,

without that five billion. They don't have the backing to back um the leverage that they have in the system. That's how this works, all right, So um, these lenders aren't prepared for this, and then the next one goes down, which then drags the next one down, now twenty billion dollars. It's also rumored that a lot of Wall Street hedge funds also have money in this as well, which UM I wouldn't doubt. So then it starts spreading to Wall Street. Now Wall Street at least has you know, the FED

that has their back. The FED is the lender of last resort. They're there to make sure banks are backstopped, meaning don't go bankrupt, which we saw, you know in two the too Big to fail. But Krypto has no of that. Crypto has none of that. It's going to go down and no one's gonna come to save it. Now. Part of this is uh. Part of this is uh. You know, it's part of the financial markets that we're

going through. Like I said, we're shifting from this long term bowl market of prices going up and now we're potentially shifted into a long term secular bear market, meaning we could see prices going down for a long time. That's the way I'm leaning right now. I'm not trying to make a long term prediction, but that's way I'm leaning. But at the same time, as we're seeing the financial markets rotate, we're also seeing the birth of a new

technology in a new industry. Um. There is an article that came out this week on market Watches says, uh, why is cryptocrashing? Mark Cuban says that crypto was going through the lull that the Internet went through. So Mark Cuban Shark Tank, owner of the Mavericks, outspoken investor, et cetera. Of course he got rich in the early days of

the Internet. He started Internet company, sold it off for whatever billion, a couple of billion dollars, and so he knows about these market cycles and he says it's it's it's like the lull in the Internet. So I think, uh, two thousand, so from the first first public company went public and then uh it brought all the money in, and then the vcs pumped it up through I p O s from sight and by the year two thousand, anything with the dot com on its name was going

for lots of money. Like Mark Cuban made Amazon, pumped from five dollars to eighty dollars. It was insane. But then the crash, the dot com crash two thousand, Amazon dropped from five, went from five to eighty and all the way back down to five. But it came back. That's the lull that he's talking about. It came back. And he thinks that cryptocurrency is in the same downtrend the Internet and Tech company saw in their early two thousands.

Um and uh. He said that crypto was going through the lull that the Internet went through, and and he compares it, which I think is is a good bet. But I think if you look at that, you'll realize that in two thousand, when that Internet lull that he calls it happened, most of the most of the dot

com companies never made it past that. As a matter of fact, most of the big Internet companies today Facebook, Um, Twitter, Instagram, they didn't come around and tell the mid to mid to late two thousand's, and so if you were trying to pick the winners in the new Internet age thousand, they weren't around. Amazon made it, sure, but most of them didn't A O L, Netscape, etcetera. They didn't make it. It was not until the late two thousand's that we

got the facebooks and the Instagrams and the twitters, etcetera. Okay, but I think I think he's right. But are you in Are you in the netscapes? Are you in the Amazon? That is the question. Now again, it's not just um, it's not just the Internet age that was like that. As a matter of fact, anytime we have a new technology,

it's the same thing. We can go back to uh eighteen seventeen, in the city of my Mannheim, Germany, there was a low Will inventor by the name of Carl von Dreys and the unveiled a brand new futuristic vision that no one had ever seen before. He just enveiled and developed it. It was called the luft machine or a running machine in German. And I'm sorry if you speak German, I probably butchered that really bad. But it was basically what he invented was the world's first bicycle.

There were no pedals, there was no seats, there was no chain to connect the wheels. The writer had to basically had to propel it with his feet and then balance on it with momentum, sort of like a scooter. Right. It was It was super crude as you could imagine. But it worked. But the but the reaction was instantly divisive. Right, some people thought it was this it was significant. Oh my gosh, look how how nice this is. Now he

can glide around. Right, But then several governments, including the United Kingdom, the US and even Germany banned its use for posing too much risk to pedestrians. Sound familiar. Nevertheless, development of the bicycle persisted over the next several decades and public interest grew. By the eighties cycling they'd become incredibly popular. Even the Queen of England owned a bicycle,

making it fashionable among Britain's elite. So you see, anytime there's a new technology, um, it goes through these cycles and people want to pooh pooh it and shut it down. But you can't stop a good idea whose time has come. Now. The rapidly growing populated bicycles prompted inventors and engineers across Europe to work feverishly on new designs, safer designs, innovations. There was so much brain power divided cycling that by eighteen and six, a full fifteen percent of British British

patents were issued for bicycle designs. The industry exploded, bicycle factories, tire factors, repair shops, sales everywhere you get the point, sort of like the Internet boom, sort of like the crypto boom. Bicycle mania was in full swing, so naturally it didn't take long for the bankers. Now, once the

bankers got involved, then it went bonkers. Seventy bicycle related companies went public on stock exchanges in the United Kingdom um in in eight the number swelled to three sixty three, and just in the first six months of eighteen and seven, another two hundred and thirty eight were listed, sort of like the dot com boom, sort of like the crypto boom. Now, most of these companies were nothing. They're hollow, there's no management,

there's no hope of them ever making a profit. They just went to the market and said, I'm a cryptocurrency company. Now they said I'm I'm a bicycle business for real. That's what they said, and their prices stored just like in the dot com boom if they put dot Com on there. The bikes were so popular real, so quickly. The Financial Times devote a section of its daily newspaper to the industry Cycling magazine, and it kept growing, growing, growing.

Roughly half of the bicycle companies that had gone public were no longer in business. Why the the index fell sevent from its peak. Well, why because there was no market it got it got too exuberant. Now did the bicycle die, No, not at all. As a matter of fact, Um, mountain bikes and road bikes now routinely sell for over ten thousand dollars. Biking is huge, mountain biking, it's all huge. But it got to um feverish, just like the dot com boom, just like the cryptocurrency whom this is the

way new technologies work. Automobiles were no different. Um, the same thing happened, and that's where we're at with cryptocurrencies today. Sort of like the low the Internet went through, sort of like the low the cars went through. Sort of like the lol that bicycles went through. But it doesn't mean it's over. However, most of them won't make it. Bitcoin will Bitcoin will buy it. Put it in your cold storage, forget about it for three to five years,

forget about everything else. Get rid of that stress in your life, and you're gonna be okay, Because the future is decentralized. You listen to the markma Show talking about the decentralized revolution, Bitcoin, cryptocurrencies, and more. That's what I got for you. Hopefully enjoyed that