Bitcoin v Crypto v Securities

so important. That's why we talk about all three. But we're witnessing the first sovereign debt crisis in about a hundred years, and so this super inflated you know, debt bubble is collapsing. Of course, the Federal Reserve is restricting

the monetary supply by raising rates. Um. They came off of their easing their monetary easy program to do monetary tightening, and it's causing problems all over the world in every area, from uh yeah, from politics, like where now people can't afford their debt and so we want, you know, the president one to forgive student loans, and now we need to raise taxes and then we have to offset people's

expensive energy bills. Um. So yeah, politics, and of course finance, where we have the stock markets crashing, the cryptocurrency markets are crashing, and then of course we have technology which is trying to kind of offset and change all this and it is a wild world if you just tune it in. Thank you, make sure to tune in with me each and every week at the same time, at the same channel. You can put a reminder in your phone so you don't miss out, and of course always

feel free to catch me on the podcast. If you miss me, just search Mark Moss on your favorite podcast player. All right, so, uh, we have been talking about for a good part of this year. I mean, we talk a lot about all three of those topics. But of course the financial markets have been in turmoil, and specifically the cryptocurrency markets have burning turmoil going back until about May of this year. Mayo where we saw, you know, really things start to aching a turn for the worst.

Of course, November one was kind of the high water mark for cryptocurrencies. That's where bitcoin, ethereum, etcetera. Had their their their all time highs. And of course that is when the Federal Reserve said that they were going to start raising rates. Now, the Federal Reserve is not trying to sneak up on anybody. A lot of times people are a lot of people, I should say, are spending a lot of time trying to figure out what the feed is gonna do next, what they're gonna what, what

they're really saying. They're trying to read between the lines, so to speak, trying to guess what they're doing. The Central Banks, the Federal Reserve is not trying to trick you. They're not trying to sneak up on you. As a matter of fact, they're trying to tell us well in advance what they're doing so we can all be prepared for this. And so all you gotta do is watch watch their news press releases, you know, watch their meetings, look at the notes, the minutes that come out after that,

and they're helling you. All right. So they told us back in November that they were going to start raising

rates and going into quantitative tightening. Now, if you haven't been following along, if we just rewind the clock a little bit more, you remember in two thousand twenty, specifically March of two thousand twenty, the entire world stopped, or more specifically, the governments of the world shut the world down, uh specifically shutting down businesses, closing businesses, firing workers, and

so much more over this whole pandemic situation. Um. And so when that happened, of course, businesses that have been in business for decades, multiple decades, multiple family generations were literally forced to close out of business. And so when the economy screeches to a halt, then earnings go down. So then you would expect stocks to go down, which

is exactly what happened. The stock markets crashed at a at an alarming pace, dried up all the liquid e that and everything just froze up of course because they shut it down. Of course, then the Federal Reserve had to leap into action and start injecting money, injecting liquidity to get the markets moving back again. And then, um, the reason why I kind of go backwards into that story because then the Federal Reserve, which is doing this

monetary easy, which is lowering interest rates. Remember when they lower interest rates, people take on more debt. Money is created through debt, so it's not like the Fed pumps and more dollars they create they lower interest rates. We take on more debt by houses, cars, boats, etcetera. And as that money is created in the ecosystem, it starts slashing around inside of there and then the reason why I go back to that, like I said, is because the FED said, um, you know, we're not thinking about

raising rates. Then he came out like a month later and said we're not even thinking about thinking about raising rates. And what that did is that forecast to the markets that, hey, the Fed's gonna hold this easy monetary policy for a while. Let's go, let's run this thing up. And of course financial assets caught a bid. You saw houses jumping through through to new all time highs, all the stocks making new all time highs. Um. You know, I couldn't get cars, cryptocurrencies,

et cetera. And so when they forecast to the market that game on, let's go, things took off. And then, of course, like I said, in November, they said, hey, we're gonna start pulling back. And so first we saw cryptocurrency start selling off. So Bitcoin and ethereum made their all time high right after the announcement and started selling off about a week or two later. On how the

exact chart in front of me. A week or two later, we saw the Nasdaq, which is the tech stocks, start selling off UM and then UM, I think it was January two when the SMPI started selling off, and then of course finally the FED came through with what they said they were going to do in March of twenty two, they actually did start raising rates. Now, the reason why that's important to what I'm to say is because this has set off this entire chain reaction of market crashes.

And we'll talk about the cryptocurrency space, but that's where it started. And the reason why is because when when the FED puts more dollars into the ecosystem, things take off, and when they suck them out, everything crashes. Some things are more susceptible to others. So the more riskier the assets they go up faster, they crash faster. The more old, secure, stable assets go up less and slower, and they also

fall less and slower. The problem that we also have is that as these markets take off so fast, the problem is how do we how do we keep up with that? You and I as earners, you know we're we're working for our wages, we're trying to save them. But prices are going up so fast. We're getting priced out of homes, we're getting priced out of the cars we want to buy. We can't go out to eat or take vacations anymore. How do we keep up with that?

And so in order to keep up with that, we have to also take on more risk, and then we start using things like leverage. So a lot of people were leveraging their assets, and that looks really good when things are going really good and you grow much faster. But then when things go bad, unfortunately, you unravel much faster. And so what we saw is in the cryptocurrency space, in the financial space, founders, investors, etcetera. Used massive amounts of leverage in order to grow, and so they look

like geniuses. They look they looked amazing, Like Sam Bankman freed from ft X. Within three years, he built this thirty million dollar company because he took the most risk, He gambled the most, he used the most leverage. He'd looked like a genius until everything came crumbling down. And

that's exactly what happened. So we saw in UM about May of two thousand twenty two, after things had been starting to wind down, we saw potentially maybe the first really really really big domino to go down, which was a stable coin, terror Luna. We've covered it at length. If you want to figure that out, go back into the archives back into about May and you can see

me talking about that. But as this algorithmic stable coin which was never going to work, I talked about it extensively before all pegs are meant to be broken, and so of course it was going to come down. It just needed the liquidity, it needed the right environment to come down, and that's what happened, which then brought down

a whole chain reaction. Like I said, so we saw that come down, and then we saw you know, Tara Luna come down, an anchor broto Call come down, and then we saw Voyager come down, and then Celsie has come down, and on and on and on, and it's finally it starts with the smaller ones and then it scales up to bigger, bigger, bigger, bigger, bigger, and then it's now taken down f t X and now the whole world is taking notice. And I believe that it's doing two things. It's doing to two big things that

you need to be aware of. One, it's showing the difference is between bitcoin and crypto why people say bitcoin not crypto. It's also I believe, going to push off a whole wave of regulations that is going to completely change the cryptocurrency landscape. And whether you think so or not, you need to at least understand where I'm coming from, because you need to understand the risks. All Right, So I got lots of cover. You don't want to miss

what I'm gonna be talking about. If you're just tuning in, you're listening to the Mark Mo Show talking about how this f t x uh fiasco will change things moving forward, don't go away. I'm gonna back right back in a minute.

All right, welcome back. If you're just tuning in, you're listening to the Mark Mo Show, We're talking about how the Federal Reserve, by tightening the monetary supply, kicked off an entire domino effect that's rippled through the financial markets, through the cryptocurrency markets, and I believe is going to change the face of the cryptocurrency markets as we know it.

And so let's keep going here. So, as I said, we kind of had this domino effect Harry Luna went down, which then was Voyager, and then with Celsius and on and on and on. It starts small and it gets bigger, bigger, bigger, bigger, bigger, and then f t X, which was the savior. F t X jumped into build everybody out, and the media was painting them as the darlins of the space, the savior of the space. They went down, and the reason why is because they look like a genius using all

this leverage. But the leverage is what unwound them. Now we have this UM. It's brought it to the forefront. It's all over mainstream media, it's on every single news outlet. I've talked about it extensively here. And now it's doing two things. So we're gonna talk about one. It's highlighting the big, big difference that bitcoin and UM generally cryptocurrencies are not really the same thing at all, and so

people are starting to wake up to that. And then the second thing is I believe it's going to really push regulations to the forefront and it's going to change the face of cryptocurrency as we know it. So let's explain, or let's explore these two things that I'm talking about here.

So the first thing is we'll talk about UM. Why you might hear me and other people say bitcoin not cryptocurrency, and so we're not saying that bitcoin is not a cryptocurrency, but what we're typically saying is when I'm talking about something, I'm talking about bitcoin, and it doesn't apply generally to all the other twenty thousand cryptocurrencies out there, And so what are we talking about? So first of all, what

is crypto currency? Well, crypto being short for cryptography, all right, So cryptography is a way to encrypt things, a way to secure things. Right. So, up until I believe the nineties, cryptography was illegal. The United States said it was banned. It wasn't allowed to be exported under what they considered munition. So it was considered like a security um US security breach if we would ship that overseas, and so that

went all the way to the Supreme Court. I believe it was under a case um by P G. P. Pretty good. Um, I forget the guy's name. I didn't prepare this part. I'm talking off the top of my head. But basically they said, hey, this is cryptography. The the the Department of Justice brought this suit against him and it went all the way to Supreme Court. And when he went to the Supreme Court, he had printed out

the code. The code is software, uh, and they printed it out on paper and then they brought like a stack of paper and put it on the desk, and the Supreme Court's like, well, that's speech, and so that's protected under free speech. And so cryptography has a sense flourished since then, and bitcoin was this new technological revolution

which used cryptography to secure the transactions. So we can secure our private keys, we can secure our bitcoin by cryptography, and that way, unless I have the key, no one else can get access to it. So when you hear about like you know, the government is going to seize your bitcoin, um, they can't, um not if it's not unless they can get a hold of your key, your private key, because it's cryptographically scared. So then you call

it well cryptography or crypto and then currency. So bitcoin is a lot of things, one of which maybe the killer application of it is to kind of reinvent money. And so you take money or coins and then you have cryptography, you get cryptocurrency. Now there's twenty thousand other so called cryptocurrencies um, and maybe they use some form of cryptography, but they're not all meant to be currencies.

So first of all, there's a big difference there. But like I said, we're typically saying crypto or bitcoin, and we're talking about bitcoins specifically and not crypto or cryptocurrency. And so let's dig in a little bit more into that. So the first thing is that bitcoin is, like I said, it was a new new invention, a technological revolution that gave us a big, big breakthrough. And the breakthrough was instead of having centralized control centralized databases, we now have decentralized.

And so as the Internet grew um from the nineties um, it was very hard to get on the Internet at first, and then in the late nineties and the early two thousands, when I started my first Internet business, it was very hard to start Internet business because you had to run your own server. And so the Internet wasn't really going to scale if it was that hard where everyone had to set up their own server. And so we started getting these cloud hosting services and so then we have

Amazon Web Services and Google, etcetera. Which allowed us discovered the quickly, but it created the centralized databases. On top of it. You have these companies like Experience, which is the credit reporting agency that runs their own database, or Facebook, etcetera. But the problem is is they control those databases. Your

bank JP, Morgan Wells, Fargo, Bank of America, etcetera. Runs a database that keeps track of all their customers accounts and deposits, right and so um those are essentially now if Wells Fargo wanted to, they could say, well, Mark, you don't have money in your accounts anymore, or the u S could just see, you know, tell them to freeze your account. Um, it happens all the time. When you don't pay your taxes, for example, it could freeze your accounts or just take money out of your accounts.

And so whoever controls that database or we'll call it a ledger, has control. But what bitcoin did is that allowed us to have a decentralized database, or have thousands or hundreds of thousands or millions of databases that so each person could control their own database as opposed to one single entity. That was the revolution d centralization, all right.

The problem is that that was the big trend, that was the big breakthrough, That was the big revolution, and a lot of these other cryptocurrencies have jumped on to try to pretend like they have that, but they haven't been able to achieve it. All right, So that is the big difference here. Now, some of the big differences that we would say would be um sort of like I used the illustration on my YouTube channel um talking about how just because things sound similar doesn't mean they are.

So we could look at I used the example of like beyond meat, which was this big darl and it was gonna gonna make meat healthier, but instead they have like twenty or thirty ingredients, which many of them are very very unhealthy for you, containing heavy amounts of steed oils and things like that. And so you might say, well, beyond meat is like meat, but meat is just supposed to be like from an animal, just one ingredient, right, it's just a cow, So beyond meat isn't really meat.

We might also say gold. Gold is a form of metal, but it's a lot different as chemical different chemical mineral breakdown of aluminum or steel or cromaley or platinum, pladium, silver, et cetera. Right, so gold, they're all metals, but it's different. And so bitcoin is just different than all the other cryptocurrencies. One of the big things is that bitcoin was created. It's a piece of as a piece of software. The software was released into the public for people to go run,

and the bitcoin was created by a single issuer. As anybody can go get a computer plug into the software and can create bitcoin for themselves today just like they could from the very beginning. Unlike most of the cryptocurrencies and including your favorite top big ones, the number two ethereum, you know, top ten cardano. Uh, those coins were created by a group of founders who enriched themselves and kept a good majority of those coins, and then they released

it open to the public. All right. So that's a big difference. Um, there was no Bitcoin had no issuer. So it's that's why the SEC considers it a commodity, which will get more into the regulatory part and a little bit all right. Now, the other thing that we need to understand that makes bitcoin a lot different than the other twenty thousand cryptocurrencies is what backs it? All right. A lot of people will say, well, what backs cryptocurrency? What gives it value? So I want to talk about that.

So I want to go through more. If you're just tuning in you listening to the markma Show, or talk about the ft X blow up and how it's going to change the cryptocurrency space overall, I'm highlighting some of the difference between bitcoin and the rest of cryptocurrency, and we're gonna talk about the regulations and how the whole industry will change. I got a lot to cover. You don't want to miss it. I'll be back with more in a minute, so don't go away, all right, Welcome back.

If you're just tune in, you're listening to the Mark Mo Show. We're talking about how the financial system started melting down. It created a collapse in the crypto industry. The collapse of ft X brought a bunch of things to the forefront, and how it's changing the cryptocurrency space, probably for good. All right. So I'm highlighting some of the differences between bitcoin and crypto and then we'll talk about how the f t X and what I think

regulations will come and how that will change. So, uh, going back to bitcoin, what we're talking about, how it's just different, and the reason why it's different is because or understanding why it's different leads to the next part, which is the regulatory side of things. And so commodities are typically things brought from the ground that could be brought from the ground anywhere in the world and they would all be fungible. So if I bought a piece of dirt in Iowa or in Kenya, Africa, or in

the Ukraine. With that dirt, I could grow wheat and didn't matter where I grow that wheat in the world, wheat is wheat, So anyone can go buy dirt, grow wheat, and wheat the same. I could go buy a piece of dirt, and I could mine for gold in Mexico or in Africa, and doesn't matter. The gold is still gold. I could buy a piece of dirt and and drill for oil, whether in California or Saudi Arabia, and the oil's oil. And anybody can go buy the land and mine for the gold or the oil, or for the

grow the wheat, and it's all the same. And so bitcoin is the same, where anybody can go buy a computer, plug it into the network, and they could bring bitcoin into the ecosystem, so it's a commodity. There's no central issue where nobody issued oil, wheat, or gold, and nobody's issuing bitcoin either. The difference with other cryptocurrencies is that they do have an issuer. So your your favorite cryptocurrencies have all been pre mind, So about seventy of all

the ethereum and existence was pre mind. So when they created it, they created the tokens and gave them to themselves and their investors, which was themselves, Um, yes, Cardano, yes, x l M yes, Ripple, they were all pre mind Ripple x RP was a hundred percent. So a hundred percent of the Ripple was created by the team that invented it and used to make themselves filthy, filthy rich. And so that's one of the big differences that you have to understand now when it comes to these regulations.

Like I said, uh f t X kind of sat in this kind of they think it's a gray area. I don't think it's a gray area. There's this gray area. The SEC is like, well, it's a it's a Bahamas corporation. Well, they were founded in the US. They transferred to the Bahamas their U. S citizens, and they built U. S citizens out of money. It's never really stopped the US from reaching their long arm of the law and regulated anyway. So maybe there's a little bit of a gray area.

But I think because we're talking about tens of billions of dollars that have been lost, we're talking about millions of Americans that have lost some of them lost everything. It's really bringing this conversation of regulations to the forefront the SEC Security Exchange Commission. So there's two regulatory bodies

really that kind of fall into this. There's the SEC Securities Exchange Commission, which is supposed to regulate securities as in their name, securities exchange, so the exchanging of securities, issuing and exchanging of securities. And then there's the CFTC, which is the commodities futures all right, So some of these assets kind of fall between here. So Bitcoin has been the only digital asset out of the twenty thousand or so cryptocurrencies, it's been the only one that has

been declared a commodity. And that's because, as I said, there was no sensual issuer, no one making decisions on the network, et cetera, all right, But all the other ones it hasn't been clear. Now I believe that that it's allowed them to operate that in this gray area. That's allowed um, these problems like FTX to get bigger, bigger, bigger. But now it's in the forefront, uh, and people are going to demand action. The SEC looks horrible in this situation.

Their only role, the whole point of the organization, why they're there, is to protect consumers from exactly this in my opinion, they should probably just disband. Look, I am not here. I'm not here. I just want to make it very clear. I am not pro regulation. As a matter of fact, I think we should be able to do whatever we want with our money. If I want to go gamble in Vegas, or I want to spend it all on lottery tickets where I want to buy crypto tokens, that's up to me. It's my money and

I should be able to do that. I don't. I don't believe I need the nanny state of the government to protect me. I think I should be smart enough to make my own decisions. But that's what I think. The reality is we do have a regulatory body called the SEC, and the reality is they are there and their role is supposed to protect us. They've done an absolutely horrible job and they're disgraced, and Gary Gains ahead

of the SEC, should probably step down and apologize. Um. Nevertheless, I think that with this egg on their face, so to speak, they're going to be forced to up their game. They're gonna be forced to stand up. We have lawmakers Elizabeth Warren, you know, parading around um you know, uh, the Capital saying we need to enforce this. We need to you know, step this up. And so I believe they're going to have to. So what does that mean, Well, like I said, they've been very clear, the SEC has

been very clear that bitcoin is a commodity. But what about the other twenty thousand and so we want to take a look at that, and um, when it comes to that, when it comes to the securities, can't could ripple? Could xr P become a security? Could ethereum become a security? Now, we don't know, and it's not for me to decide, it's for it's for the SEC to decide. However, Uh, I'm gonna tell you that there is a there's something called how we test, not how he test? Has four

basic questions. Um, it gets a little more complex. There's like thirty eight points underneath them, but but for the for the most part, there's four. And the Supreme Court established this four criteria to determine whether an investment contrast contract exists. An investment contract is one an investment of money, so you've put money in, two into a common enterprise, three with the expectation of profit, and four to be

derived from the efforts of others. So there's four all right. Now, if you want to ask about Ethereum or Cardano or x RP or any of these other ones, those are the four questions. At the Supreme Court, UH defined that the SEC would consider these things. Now, there is a lawsuit that's been going on for a long time between the SEC and Ripple x RP, and so we'll see

how that shakes out. Now that's going to be UH probably going to be used as precedents for pretty much the rest of the entire cryptocurrency space, although we've had just another one come out recently for this Library token Um and the SEC clips said it is a security. They tried to fight it, and the SEC said, no, it is clearly a security. And I think that sets precedents. The way the way the law works is that when

a court rules on something, that sets this precedence. And so that kind of says And actually Library came out after the ruling and said, hey, look, this sets a very dangerous precedence for the rest of the industry. And I think it does. Now the x RP, the Ripple x RP is also going to be an even bigger present, and I believe that is supposed to come out maybe Q one of next year, so within the next you know, six months or less, we should know where the sec

sits on that. But just ask yourself an investment of money, So when people buy cryptocurrencies, are they doing it? Are they investing their money into it? Do they buy that expecting it to go up in value? And of course the answer is yes. Pretty much every token is bought because people think they can sell it for more later. And then number two would be in a common enterprise.

So we could take Ethereum for example. Um there's Vitalic Butterin and the Ethereum Foundation which are steering the direction of Ethereum. As a matter of fact, they've changed the entire consensus mechanism just recently. They changed the monetary issuance a couple of times in the last couple years. So there's a group of people that are steering us. It's a common enterprise. Three, like I said, with an expectation of profits. So first, as an investment of money, yes,

they money in three with an expectation of profit. I believe if you pulled a hundred or a thousand cryptocurrency investors, I mean we even used the word investor, they bought it because there was an expectation of profit. They thought it would be worth more later and then four to be derived from the efforts of others. And so, like I said, in the group of Ethereum, they have the foundation, they have the steering committee. They literally just changed the

entire consensus mechanisms. So the efforts of others. I think it's pretty clear now. Um. I think what people don't understand is what happens if they cracked down on these regulations. And that's what I want to talk about next. I put out a big put out a Twitter post, and they had a lot of miscommunication. I want to clarify that if you're just tuning in, you're listening to the markma Show, we're talking about how the entire cryptocurrency space is about to change. Don't go away, be right back,

all right, welcome back. If you're just tune in, you are listening to the Mark Moss Show, and we are talking about um cryptocurrency space blowing up, and how I've of the regulations are going to come in and change everything, and I think a lot of people haven't really thought this through. So I put out a Twitter post um and I said that if regularly. I think, I believe regulations are going to come in and I believe it will change the entire trajectory of the of the cryptocurrency space.

I said that, I think we might have seen the last cryptocurrency bull right now. It's very clear to say crypto not bitcoin, all right, So there's a big distinction. We already talked about that. If you've missed that part, go back and listen to the podcast where I kind of broke that down a little bit. Or um. I've made some very long form videos with a lot of details on my YouTube channel. You can go search Mark

Moss on YouTube and find those as well. But like I said, so many people lost so much money with the ft X. Uh, there they have. Now you know these meetings on Capitol Hill and regulations are coming. The SEC failed to do its only job, which is protect people, and they are gonna have to step this up. But what does it mean? Well, like I said, bitcoin has already been deemed a commodity, but everything else is at

risk here. And so when I said, uh, if, if and I believe they will crack down with regulations, then I think we've seen the last crypto bull run. And when I said the last crypto bull run, what I mean is where the entire cryptocurrency market cap just goes to the moon like it did in like it did one again. I think that's over. I think where you can just kind of close your eyes and just buy any board ape or you know, JPEG or defy contract or whatever and just make a bunch of money, I

think that's over. Now. Does that mean that there won't ever be another one that will go up in value? No, it certainly doesn't. And a lot of people really pushed back. It was actually I think I had like six comments on this Twitter post, which, by the way, if you're not following me on Twitter, check it out. It's just the number one at the number one, just at one Mark moss Um. But anyway, a lot of people are like, oh, you don't understand, Mark, you don't know what you're talking about. Um,

if the SEC cracks down, it will just go off shore. Okay, Yeah, they said, you don't understand Mark, the SEC can't stop innovation. Yeah, okay. I agree with both of those statements. So it's not that I don't understand. I think you don't understand that those people don't understand and so what happens is, uh, if the SEC cracks down, Yes it will push some offshore, and yes, m and yes we'll still have innovation. But

what will change is that these cryptocurrency companies. A lot of people say, well, they'll just pay the fine and just move on. It's not that easy because if they want to comply with security laws, yes they'll have to pay a big fine for sure, but too then they're going to have to file as security you have to file s ones. They're going to have to UM, They're

gonna have to disclose everything. So like in Ethereum's case, for example, they're going to have to disclose who the founders are, how many tokens they have, They're going to have to disclose, who the insiders are, who the management team is, what what the pre mind was, who kept the tokens. They're gonna have to disclose, UM, what related parties there are. What's the relationship between Metalic Buterin and Joseph Luban, What about the Ethereum foundation, Um, you know,

what insider trading or insider selling happened. What other controls and interests they may have between the companies, what risks may be there the lost to disclose all of that, and I don't think they're gonna want to. I don't think any or I don't want to say any I don't think most of these cryptocurrency projects who want to disclose that the whole point is that they did the i c OH, the initial coin offering, the outcoin offering

because they didn't want to do all that. So it's not just as easy as they'll just pay the fine and they'll just move on. No no, no, no, they'll be forced to comply. It could take years and millions of dollars to do it. But ultimately, I don't think they're going to want to disclosed that information. And even if they did, they disclosed all that information and they were legally able to get away with what they're doing, um, and they disclosed all that, then I think everybody would

look at that and go, We'll wait a minute. Basically, what I've just bought as a software company or a payment company, or a supply chain company, or a video game company, and why am I buying this video game company or software company over this video game or software payment company. So it's going to change the game. Now, Does that mean it goes away. No, it doesn't mean it goes away. Does it mean something goes off shore? Sure, But you also have to understand how the industry worked.

And I've talked about this before. I read I read actually directly from Sam Bankman Freed's interview that he gave an about May of this year with Matt Levine believe it was on Bloomberg, and he basically explained that you create this protocol, he calls it a ball box. You create this just generic box, and you say that it's going to change the world, and you create this token, and then you trade the token to create this this value, and everybody wants it because you've made it look like

there's like it's valuable. But what really plays into that game is venture capitalist. And this is a key piece here that most people just don't understand. Maybe they just don't understand how the system works. And so venture capital is we're an investor invest into a new venture, typically like an early round, like an angel investor. And so imagine like Uber in Silicon Valley a decade ago or whatever, right, and so hey, do you want to invest into my startup? Okay,

what's it gonna do? What's going to change the world in this way. And here's how much money I'm trying to raise. And the way venture capitalist work is they typically start of a fund of venture capital fund and a bunch of people who put money into this fund, and this fund might go invest in to say fifteen different projects, and that fund locks up that money typically seven to ten years. And the reason why is it takes seven to ten years for these companies to get

big enough to be worth anything. And these venture capitalists know that the majority of them are probably never going to be worth anything, but some of them will hit really, really big, and those investors that put that money into that fund have that money locked up. The only way they get that money back is some sort of a

liquidity event. So one one of those companies would go public, go through the I p O process and go public, and then those those early investors could eventually sell their stock publicly or too maybe one of those companies gets bought out and that creates a liquidity event. Otherwise that money is locked up. But venture capitalists love these crypto

this crypto space because there's instant liquidity. So they're pumping money in and they get tokens in return, and they can go and dump these tokens some some of them almost immediately, and they might make two x, a five x, a ten x, a fifty x on their investments immediately and still have more upside with the tokens they have left over. So the venture capitalists love this, which is why it's brought in hundreds of millions dollars of venture capital.

So they can make their two x by dumping on your head on retail, and so then they spend a lot of money in marketing, slick marketing and media put all over the place. You see all this news about all these tokens going higher, higher, higher, higher, highering value, so they can get you to buy them so they can dump them on you and then they all become worthless. So if you understand, that's how it works, which again

is how it works. I got the receipts if you want to check out my YouTube videos, UM and the SEC cracks down. Could they go off shore? Yes, and they probably will, but most countries also have some sort of regulations as well, so they're gonna have to navigate that. But more importantly, why I think we may not have another Bowl run is because of the venture capitalists their US based Now they love this because, like I said, they can get instant liquity by dumping on your head.

But if all this goes off shore, they won't be able to go participate because these i c O is happening off shore specifically cannot include US investors. So they may go off shore to some small little country that they can get around these security laws, but the investors won't go with them. So does it stop them from one off shore? None. Does it stop the innovation, certainly not.

But what it does stop is hundreds of billions of dollars of them of US based venture capital money from going in, which then influences the media and the marketing and you and allows them to dump on your head. And that's why I think if these regulations go through, which I think is the most likely case, um, I think it ends the crypto bowl run as we know it. Now.

You may not like that you've been taught and you've been told that these are life changing protocols by these venture capitalists that have spent a lot of money on this. But as someone who studied this for over seven years, published over a thousand pages of research, I can tell you this is exactly how it works and that's why I think it can change. But I could be wrong. I'd love to hear from you. Hit me up on social media on Twitter, Instagram at one Mark mosson let

me know what you think. Am I wrong? And if so, why don't just tell me I'm wrong. I'd like to hear why, um you think that? That's what I think. If you're just tuning and you listen to the Mark ma Show, if you missed me, check me out on the podcast. Just search Mark Mason on your favorite podcast player for the recap of this and that's what I got. Thanks for listening.