Don't Focus on Price

more clear. And it's changing rapidly, of course, like I said, led by bitcoin cryptocurrencies, because the decentralization and those technologies is breaking apart the centralization that we have so much. And of course bitcoin is the asset to own, the asset to watch. And when you're understanding a new technology like bitcoin, it's important to understand how to look at it. And so a lot of people are stuck looking at

the price, which has been pretty boring. I talked pretty regularly about it being the the least least interesting thing to think about is just the price, and um, it's kind of been like a like a stable coin. We're sitting at about thirty thousand, it's been there for about a month. But again the price is the wrong to look at. We want to look at two things. One, we want to look at the growth of the network,

So we have met Cass's law network effects, um. And the more people use the network, the more valuable that network becomes. If I had one phone, it's not worth a whole lot. When you have a lot of phones,

it's worth a lot. As a matter of fact, I remember when I got my first cell phone, and I'm pretty old, so there weren't a lot of people that had cell phones at the time, and I was doing construction, so I was driving all over the place, and I thought should I should probably get the cell phone so when I'm out on the job side or whatever, I could, uh, I could use it. And had this big, old long

whip antenna. And it was at the time phones weren't even Alpha Newmerica, they were only newmeric So at the time, the display just had numbers. That was it. So like if you want to store phone numbers or names, and they're like they had no way to like punch in the name. Um. And I remember when I first got that phone, I didn't even carry it with me. A lot of times I just would leave it at the house because like, who was I going to call? I

didn't know anyone else that had a phone. But then as now, today when everybody has a phone, you can't get by without it. And so that's the way the network effects work. And so we want to look at the network effects of bitcoin. How many people are using it? Is the growth rate growing? And then we want to look at the development on the network. Is the development? Are there being upgrades and changes in the development, And so I like to talk about those things as I

look at those things. Um, there's been massive, massive developments. I've been talking about that since I got back from the Bitcoin conference. UM, one of which is this new Taro upgrade. I'm not gonna go deep into that, but UM, it allows basically, with the development that's happened on Bitcoin, between the Lightning network and now the new uh tap

root upgrade and now the new Taro upgrade. UM, pretty much anything that any of these other cryptocurrencies all coins think they can do, it can all be done on top of Bitcoin. It's pretty amazing. Bitcoin allows you to send bitcoin faster, cheaper, and more private than any other cryptocurrency. So anything that's faster, cheaper, and more private, Okay, get all that out the window. Um, and then you have things like uh, you know whatever, I don't know, smart contracts.

I suppose um and all that stuff and creating new tokens for like token assets like stocks, etcetera. If all that now that all that could be done on bitcoin as well. So that's the development side. But on the adoption side, on the networking side, we're also having massive growth. And I talked about this on a regular basis. Um this week, Big News one of my favorite places to eat. I eat there at least once a week, Um, except bitcoin. Now I haven't. I haven't gone there to pay with

bitcoin yet. Uh, And I'll talk about why. But Um, Chippotle, Chippotle Mexican grill now excepts bitcoin as payment. The popular Mexican style fast food restaurant chain now excepts bitcoin and other cryptocurrencies through flexa, a digital payments platform. So it's a new technology or a new application built on top of Bitcoin that allows this network growth to happen. He says.

Flexus supports as many as ninety eight cryptocurrencies, including Bitcoin and ethereum, and customers can use an app to pay for food items in any of the nearly three thousand Chipotle restaurants across the United States. You have to download the Gemini or spend an app both are which are story or digital assets, and then you can use that app and tap it in store to make a payment. Supportly joins a long list of restaurants that currently accept

cryptocurrencies of payments, including Subway, Um and Starbucks. Sp u x allows reward members to hold cryptocurrencies in lieu of cash in its app. So um my favorite place to eat now except bitcoin. Now, the problem that we have is that in the United States, bitcoin is treated as property, and so you have to understand that from a taxable standpoint. So um, if you hold, if you buy and sell stocks or gold or real estate, if you make a profit,

that's a taxable event. And so if I buy bitcoin and then I go spend it at Chipotle, I gotta figure out when did I buy it? When did I sell it? Was their profit? I bought a burrito at six Bucks. I bought this bitcoin at this date? What's my problem? I have to I have to file that on my taxes and potentially pay tax on the capital gains I made. And that's a massive problem for adoption in the United States, specifically because it makes it a pain in the butt. I don't want to spend it.

I'll save my bitcoin, I'll spend my feat. But I have talked about before on the show how Panama recently UM moved to take away capital gains from bitcoin, so that solves that problem in Panama. Of course El Salvador solved that problem by making bitcoin legal tenders, so they don't have that problem. And now Germany, Germany is the economic engine for the EU. Germany is probably the most important country in the entire European um Union because like

I said, they're the engine. They set that policy. And now Germany came out this week and said that no taxes for selling bitcoin or ethereum if they're held for over one year. Germany's finance ministry said private individuals won't pay any taxes when selling bitcoin or ethereum if they have held the assets for more than a year, which is pretty amazing. So now they're solving that problem now.

Previously digital assets using such activities had to be held for ten years to be exempt from taxation, but now it's only one year. They vowed to keep dealing with the digital asset taxation policy and eliminate any arising issues. This is only going to speed up adoption. We're seeing in Panama we're seeing a nel Salvador. We're seeing in Africa, now we're seeing it in Germany. Germany, according to a CONCUPT study, is the European Unions most crypto friendly nation

in the world for Q one two. So what's happening and uh, it's really going to speed up adoption. Speaking of adoption, one big thing that happened in the network in was China, that had over six of the bitcoin mining in the world, banned all their bitcoin mining. So bitcoin mining, you buy high power computer, you plug it in,

help secure the network, process transactions, you earned rewards. And China had this massive advantage where they had over sixty of the mining or almost six of the mining in the world, was concentrated in mind in China, but boom, they flipped off a switch last year and just shut it down. Now the United States was the big beneficiary of that, and um now the United States is the largest has more mining capacity United States and anywhere else in the world, Texas being the big beneficiary of that.

But what's interesting is last week Cambridge University's Cambridge Center for Alternative Finance released an update and said that it looks like things have actually changed as a matter of fact, the previous Cambridge update showed that China's share of the mining went from thirty four point three pc in June

to zero percent in July. So from Junior July it went to zero following the crypto mining band that they had um But last week the update showed that china As share of mining went from zero percent in August to twenty two three in September, so it went from zero back up to So there's something going on there. What's going on? Well, they banned it right, we saw it. We could see it in the data that there was

no miners, there's no what we call hash power. The hash power is is the power of all the collectively computers that are on the network, and so so we can see it went to zero, but then we can see it started coming back online and it looks like it's only continued to grow since then. As a matter of fact, the hash power has continued to grow to a point that China starting to be a big player again. They haven't been able to get back to where they were before, but it looks like they've now firmly put

themselves into number two, number two. So it says the highlight that hash rate. The computational power of the bitcoin network has grown forty percent since the China ban, So they've grown by putting themselves back into number two in in the world, which is pretty amazing because they've banned it.

It's illegal, but China just can't stop it. The desire, the need, um, the the benefits of mining bitcoin, the money making potential of mining bitcoin is so powerful that they will risk whatever, you know, problems they may have in China to mine it. And so it's went from zero when they cracked down back up to be number two in the world. If you're listening to the Mark Moa Show, we're talking about bitcoin and the decentralized Revolution.

I'll be right back. Don't go away, all right, Welcome back. You are listening to the Mark Moa Show talking about the decentralized Revolution, walking you step by step how the world is changing, talking about bitcoin, cryptocurrencies, politics, technology, finance, all your favorite subjects we're talking to about. Over the last couple weeks, we've been talking about this stable coin called Terra Luna ust Us stable coin Terra Luna, and then at the Tera Luna Toka I went deep into

it and talked about how it blew up. How about fifty year and I was about sixty billion dollars just went up and smoke and I kind of broke it all down. I'm not gonna dive super deep into that, but talked about how it was it was doomed to fail from day one. UM, peg coins they don't work. George Soros got famously rich a billion dollars in a day by breaking the peg of the Bank of England. Pegs are meant to be broken, and that's exactly what happened.

I'm not gonna go to super super deep into that, but what I do want to talk about is sixty billion dollars got eviscerated, basically. And uh, the founder of this project ust his name is Do Kwon. Here's a thirty year old South Korean and he was the founder of this stable coin project. And uh, he's he's kind

of a shady character. And when I say that, UM, part of the reason why I would say that is because he already set up a stable coin project before that failed, and he did it under a fake alias name and coin Desk did a bunch of research on this and found all this out. But he was already part of another project that failed, and he made a bunch of money on that, and then he then he

launched this other one. So he's got he's like this serial offender, if you will, and he operates in this gray part of the law where he probably caused more pain and damage than Bernie made off who's doing like life life in prison. And yet here he is looks like he's unlikely, it says, unlikely to face prison time for sixty billion dollar wipe out butt finds in lawsuits or more likely. And so we're starting to see that.

We're starting to see, um, some lawsuits pile up. However, because there's no what's what I'm gonna talk more about that in a second. But because there's no I guess jail time or prison time that's going be likely for him just making billions of dollars while everyone lost their life savings. And we've I've heard stories of I've heard I've heard stories of people committing suicide over this. I mean, it's a big, big deal. People lost their life savings,

but not for him, right, No no prison time. So I mean I didn't have a problem the first time. I didn't have a problem with this one. Why not do it again? I mean, sure, why not? Right? So guess what he just did and they just launched Tera Luna two point oh. So, um, we have an idea. Let's just uh, let's just you know, we'll take the original Tera Luna token. We'll call that Tera Luna Classic or original or whatever they called it, and let's just

make a new one. How about that. And then what we'll do is we're going to air drop a bunch of tokens to everybody who had who had the Luna token. Air Dropping means basically they create a bunch of new tokens out of thin air, and then they just send it out to everybody that has an address. Just air drop it. Just it just shows up in your wallet. And so they did on on May. They name they created this new token, they air dropped it. The new one they named the old ones Tarra Classic, and they

traded they created this new coin. UM. Now, uh, these exchanges Binance, coup Coin, and okay x, they're complicit in this. If this was a crime, which it would be if it wasn't in this gray area where they don't quite have names and laws for this um, they would probably

accessories to this crime. But binance coo Cooin and okay Coin okay x cryptocurrency exchanges decided to list this new Lunar two point oh token and they did, and when the token came out, he started trading it about seventeen dollars. It then went up to twenty dollars. I don't know who was buying this. I mean they got everyone got this token for free. It already felt spectacularly. Now they

got this new token. Now in order to sell the token, someone has to buy the token, right, We're not exactly sure on who was buying it or what they thought they were getting out of it. Somehow, maybe they thought that it would go back to reclaim the previous high that the original Luna had UM. However it didn't it. As a matter of fact, um the old Luno token was trading at zero point zero zero zero two zero zero zero two point zero zero two UM, and so

this new one um was air dropped out. It started trading and it went as high as thirty dollars on by bit and now it's crashed all the way down. It's lost eight percent of its value in just a couple of hours. And now it's somewhere in the seven dollar range. So you create a scam, it fails, You create another scam. People lose your life stating sixty billion dollars gets lost. You create another scam. I don't know why these exchanges are listening it, but look, no one's

coming to save you here. You should not be participating in these scams. I get it. You're like, well, if I could have bought here, and it could have got out right right there there the company I would have made. The reality is you're not on the inside. You don't have the information. You don't know when when that pump and dump is happening, and so you turn into liquidity.

You're the one that gets dumped on. And so I know when you look at the chart and you hear the stories of but this guy made all this money, if I could do that too, Yeah, yeah, you hear all the stories of people win the lottery too. How much money you're going to put in the lottery? Right? There's always stories of that. I mean, you hear a about guys getting you know, uh, million dollar contracts to play basketball or football or baseball, But are you doing

that right? So there's always stories, don't get me wrong. There's always stories And are are there people that made that money? Yes, there are, but most likely their insiders that had innate knowledge of this pump and dump timing and scam. And uh, you don't, you're not, You're not connected enough to have that happened. I'm sorry to tell you that. I mean, maybe you are. Maybe you're one of the few people that are on the inside that organize these scams, most likely or not, and most likely

you'll end up losing everything. Um, and it's unfortun it And uh, you know, I'm not here regular I'm not here advocating for regulations. Um. What I actually like is that as big of a hole as this was for the cryptocurrency market overall, like I said, sixty billion dollars up in smoke, the entire cryptocurrency market just shrugged it off, like we kind of heard. I mean, the price of bitcoin dropped, um, but for the most part, it absorbed

the losses and it's just continued on. Unlike the centrally planned markets, like what's happening in the energy markets, like Russia, which controls less than ten percent of the oil in the world, supposedly is responsible for everyone pay more for energy, Like we can't shrug that off, or the food you know, all these markets that the government's the central planners control, they can't. They're so fragile. They can't even handle a

small single digit disruption. But here we have the crypto market that's some someone unregulated, maybe the closest form of an actual free market that we have had a sixty billion dollar lost and just the market has absorbed it, just keept on moving forward. So um, I'm not a fan of it. Um, you know, I suppose there could be something done. I'm not a fan of regulation. I'm a fan of self regulation. I think that you know, a lot of these people that lost money, it's unfortunate,

but hopefully they won't make that same mistake again. Of course I'd like to think that. But then I see what happened. They just launched Luna Tude point Oh, and here they are right back on board with it, and uh no, one's coming to savior. Here we can see that lawsuits are piling up in crypto cases. I want to talk about these lawsuits, and I'm gonna talking about a lawsuit that I was actually personally involved in as well.

I'll tell you what the outcome of that was and what you can expect if you find yourself in a similar situation and in a lawsuit. Moving back with that and more in a minute. You're listening to the Mark Moa Show talking about the decentralized Revolution, talking about the intersection Paul Tex, finance and technology as they converge and it changes the world. Of course, that's being led by bitcoin, being led by cryptocurrencies, and if you can navigate it correctly,

it could be the greatest opportunity of your life. However, if you get caught up in these scams like these guys, it could be disastrous for you. Don't want that to happen, so don't go away. I'll be back with more. All right, welcome back. You are listening to the markmas Show, and we are talking about the decentralized Revolution. We're talking about bitcoin, We're talking about cryptocurrencies. We're talking about politics, finance, technology and how the world has changed before of our eyes.

We were just talking about, uh, we were talking about this Luna Luna crash and how it sucks sixty billion dollars out of the crypto markets and how they basically just shrugged it off and just kept moving because their free markets, unlike the essentially planned markets that are so

fragile they can't handle even a single point reduction. But that's where we are now in these scams, like I said, there's not uh they're they're operating in this gray area and so it's unfortunate that they can get away with repeated offenses. And Do Kuan, who founded Luna now has just launched Terra two point o, which is is now third attempt he gets, he gets fabulously rich. Most people lose everything, and a lot of people jump in hoping they're gonna get super rich as well. It doesn't always

work out so well for him. And so what we've seen is these lawsuits. Crypto industry has seen this surge and lawsuits, lawsuits as investors losses pile up, and it says suits target issuers of digital coins and tokens. Now, I'm gonna talk about this for a minute. Let me let me, let me read this article and then I'll explain a little bit. Even before the recent plunge in crypto prices, the industry was already seen an upticking lawsuits.

The lawsuits are nothing new. Um Um an attorney that I that I've used and I'm friends with David Silver. He is probably one of the top attorneys in the space. I mean, he's been working for years on this so some swap attacks and exchange attacks and frauds. I mean, he deals with all this, and it's a growing place. If you're a attorney, maybe you should be looking at working in this crypto space because it's it's a growing industry.

But it says even before the recent crypto plunge, the prices plunge, the industry has already seen an uptip uptick in lawsuits. Many of the cases have been fueled by investors who allege some digital coins were hyped and then

sold under false pretenses. So, as I was explaining to you, um, it's easy to look at these coins and go, shoot, man, if I would have just bought here and I would have sold here, look how much I made and so and so my friends, friends, cousins, roommates, girlfriends, um an uncles, whatever made all this money. I can't too well, not really, because as I said, you're not on the inside. And so what it says right here, Many of the cases have been fueled by investors who allege some digital coins

were hyped and then sold under false pretenses. So they work under these pump and dump schemes. You're not connected enough, neither am I um It says some proposed class action suits alleged pump and dump schemes involving celebrity promoters. So just because your favorite celebrity like Matt Damon from in crypto dot com on the super Bowl, just because your favorite celebrity promoter is promoting it does not mean it's safe, does not mean it's good, and does not mean you

should be blindly following that. We like to say D Y O R, do your own research always. So it says here these pump and dump schemes are involved celebrity promoters. We've seen Paris Hilton, We've seen Kanye West, We've seen Floyd Mayweather, I mean new name it. They're on their other alleged that some digital tokens are unregistered securities, or that cryptocurrency issuers were deceitful in their marketing. So a couple of things. One, I believe in personal responsibility. Freedom

comes with responsibility. I should be free what I want to do, but then if it doesn't work out the way that I want, then I should be responsible enough to deal with those consequences, right, UM, I grew up doing action sports, and like you know, we want to go write dirt bikes on the empty lot over here, but then we can't because they're afraid that if someone gets hurt on that land and there will be lawsuits. So I want to be free to go ride my dirtbike there, but if I get hurt, that I should

be responsible for what happens to me. But what most people want these days is I want the freedom let me go ride dirt bikes there, but if I get hurt, then I want someone else take the blame for that. And that's exactly what's happening here in the space. Is I should be free to invest my money. Well, I shouldn't even use the word invest. We'll call it gamble. I should be free to gamble my own money, but then if I lose money, I want someone else to

be responsible for that. Now, it's kind of ridiculous. If I go to UM, if I go buy a bunch of lottery tickets and I don't make any money, UM, I'm responsible for those losses. If I go to Vegas or online sports betting or a bet on a football game, whatever, and I lose that money, I'm responsible for that. But somehow these people are jumping in saying I invested into this cryptocurrency, I lost money. Now someone else should be responsible. Now I get it they had a so called celebrity

promoting it, but I mean celebrity endorse all kinds of things. Um. Now in this case where it says they used they were deceitful in their marketing, Now that's fraud, and we already have laws against fraud. So there's something there. Right. If if you promise me something but you deliver me something else, that's fraud. I don't like to use the word scam and fraud, uh liberally, they should be used

right when it's when it's intentional. So if you promised me one thing but you give me something else, that's a scam. That's fraud, and we have laws for that. Um. If it's just deceitful, I mean I don't know. I don't know where that falls in. But the one thing and why you hear a lot of times bitcoin people, I don't say it as much, but we would say that most of these all coins are scams and not saying that, uh liberally as a scambut but literally as

a scam. And the reason why is because any cryptocurrency that tells you they're quote unquote decentralized, but then they sell you a token that's not decentralized, that would be a scam or a fraud. So, um, really only bitcoin is the true de centralized coin out there. The other ones could be, well, we're sort of kind of one day maybe we'll be decentralized, but that's not decentralized, and so we talked about that being a scam a whole

another subject. But basically, um, if they're unregised security, so they're saying, well, you sold it to me, but it was technically a security so you shouldn't have been able to sell it to me. Okay, but why did you buy it then? Right? So that goes back onto you with personal responsibility. But we're seeing this over and over and over. Like it said, it's really really growing up

gaining attention. Here. We can see here among recent lawsuits as a case filed in a California federal court over losses in the stable coin Gwen g y e N. The pseud accuses gmo z dot Com Trust company. The issue of Gwen and crypto exchange coin Base, So it was on coin base. So you say, but wait a minute. Coin Base is a is a well known company. They're publicly traded, So if I bought it there, um, then shouldn't it be protected and shouldn't somebody be responsible? Apparently

that's what this guy thinks. So the lawsuit filed against Gwen. Um it was on the exchange coin Base advertising the stable coin as being pegged to the Japanese yen. Now what I tell you about Luna. Pegs are meant to be broken. Anything that says they're peg, don't trust it. They said they're pegged to the Japanese yen, which I don't know why anybody would want to buy something pegged to the Japanese yen. Japan's currency is blowing up. That's

a whole another subject. But when Gwen began trading on coin base in November, it immediately became untethered from yen. Oh you mean the peg broke. Remember pegs are meant to be broken, So the peg broke. Um. When that happened, it led to the coin to spike in value. Oh we made money. Now, Remember stable coins are supposed to be stable they're not supposed to go up or down, but it's the spiked value and then it dropped in one day at least. That's the lawsuit of edges Um

and So. Kenneth Donovan, twenty seven years old, is a plaintiff who began investing in cryptocurrency in so from two it was all tides or great rising tide rises all boats. He made a bunch of money. He said he bought three thirty five thousand dollars worth of win last year after reading its white paper and learning about it um that the New York Department of Financial Services had authorized

this to issue this company to issue stable coins. But in a matter of hours, he said, his investment plummeted to three thousand dollars, so from three thousand to three thousand dollars, wiping out his entire life savings. Before the loss, he his wife and their young daughter lived comfortably off his investments and gig work for Uber and door Dash, But now he lives paycheck to paycheck. Now, look, I'm not trying to make fun of him here. I feel

bad for him, Um, I I do. I was wiped out in two thousand eight when I was just married and had my first kid, so I feel his pain. I was there. Um My, I was ripped off by a scam. To the scam was the Federal Reserve um and the and Wall Street crap, the entire global financial system. So I got caught up in a scam as well. It was out of my control. This is out of

his control. However, don't buy these cryptocurrencies that are alleging to provide some sort of innovation, that have some sort of a stable coin algorithm that tethers it to some other currency. It doesn't work. There's no reason for you to buy it. And if you want to and you want to speculate it, why would you put your life savings into it? Why would you put your life savings

into it? But that's what he's done, and that's why people like this, dozens and dozens, hundreds of cases, thousands of cases like this, and that's why lawsuits are picking up rapidly. But again, no one is coming to save you. Only you can save yourself. Don't buy into these, and if you do want to, then only put a little bit in. Not your life savings. Are you're listening to the Mark Moa show. We're talking about the decentralized Revolution,

bitcoin cryptocurrencies and the way the world is changing. I have a lot more to go when I come back in a second, so don't go away, all right, Welcome back. You are listening to the markma Show talking about the decentralized Revolution, talking about the way of the world is changing with bitcoin, cryptocurrencies, and discussing it through the lens of politics, finance, and technology so we can understand what is happening. And it is happening fast and furious. There

is so much going on. We're talking about how the markets are changing. Um, the laws aren't able to keep up, and people are getting hurt and no one is coming to save you, and so you need to learn to protect yourself. I was talking about this um the stable coin, and this guy lost all his money and he thought it was safe because it was sold on coin base. But just because it's on coin based doesn't mean you're

protected and doesn't mean they're going to save you. As a matter of fact, Um, there's an article that came out this week that says coin based doesn't offer a liability protection. But that's no reason to panic. So they're saying we don't offer liability protection um and they had an announcement last month as they were going through this regulatory process that really set people off and put people in the wrong way. So, oh, of course, as things

go good, there's never problems. It's only when things go bad, right, And so that's why Warren Puffett says, a rising tide rises all boats. But when the tide goes out, you see who was swimming naked. So when we're in these bull runs and everybody's making money, it's all good. Everyone's happy. Tera Luna token it's growing, growing, growing. We're in a bull run, and this Ponzi scheme lever's up really really quick.

You put a dollar in, it creates a token, it creates another token, It burns the terror Luna token, creates scarcity, it pushes the value up. Everything is great. But as soon as the market turns and starts going down, the Ponzi unwinds itself and it falls apart really fast. People get mad. And so that's kind of where we're at. And so right now, with with all of the financial

markets down. As a matter of fact, like I said, most of the fang stocks, the Facebook, Apple, Netflix, Google are down fifty s A lot of the big real big tech, Darleans, Pelotons, the shopifies, um, things like that they're down seventy eight percent. Um. Crypto markets don't actually looks so bad, um now a lot of them. Most of the cryptocurrency markets are down really really heavy a matter of factive. Look at like the top twenty coins, most of them are down sixty bitcoins holding on in

about just year to date, doing pretty good. But as that goes down, people are losing money, people are unhappy. Um. And also coin Base their revenues are going down in a in a really big way. As a matter of fact, they went as an I p O. So they're a publicly traded company and their stock is down over eighty percent as well. Coin Base the symbols c O, I, N or coin and so as they're doing this, Uh, there's a lot of talk about their business model and uh,

at what point will they run into trouble? Like could they go bankrupt? And if they go bankrupt, what happens? And this is a key piece I've talked about before and this article is talking about here. They don't offer liability protection. So, um, if I have money in the bank and the bank goes busts, I have f d i C insurance and they will give me my money back. Right,

the FDC will make me whole. And what happens is, you know, we've just been so accustomed to working with banks that we view lots of people view um, these uh, these cryptocurrency exchanges like coin base as a bank. So I can buy my bitcoin there or my x y z crypto there, and then I could just leave it there and they have a vault they can put it in and then at some point if I want, I can withdraw it. And so they look at it as a bank. Now back to I was talking earlier about

freedom and responsibility. So bitcoin has solved the oldest problem in the world. The oldest problem in the world is how do I secure my property in a way that can't be stolen. And so bitcoin allows me to custody it, to hold my own bitcoin in a cryptographically a way that nobody can seal it from me. So that's great freedom. I can now have the freedom to hold my wealth

in a way they can't be stolen. However, it takes responsibility, so now I have to learn the right way to store and provide custody and to keep it in a way that it can't be stolen, I don't lose it, etcetera. So I have the freedom, but I also need the responsibility. What a lot of people want is they don't they don't want the freedom and they don't want to take the responsibility. Well, they don't want to take responsibility, so they don't have the freedom. So I'll just let coin

base hold onto it for me. So coin Base can hold it, and UM, I'll give them the responsibility to safeguard my bitcoin. But what happens if something goes wrong? So, for example, thousands of stories of people visiting and say Cuba and then log it into their coin Base account and then it flags their I p s from Cuba, Their account gets locked, They're locked out the account, and I have to go to the US State Department to

even get access to their account again. UM, let's say that the US government for some reason tells coin Base that they can't allow you to withdraw your funds anymore for whatever reason, I don't know, You're implicated on some charge is or they changed the loss as you can't custody your bitcoin anymore, or what happens if their business model fails and they go bankrupt? Now with their price of their stock sliding over eight, that's a pretty big question.

In this article says quote the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings end quote. This has put out by coin based in its first quarter earnings UM and so they're saying, if we go bankrupt, our customer deposits that were holding on behalf of them could be subject to our bankruptcy proceedings, meaning that the bankruptcy judge could say, wait a minute, no, these aren't the customers funds. These

are your funds. You owe them the funds. But since you owe them, we have to take into conduct and into account everything you own and then we have to figure out the best way to do that. And this announcement was really a reminder to the entire ecosystem and it should be a wake up call to you. The brokerage is not like a bank. Um. There is no protection. There is no fd I C insurance. If something were to happen with them bankruptcy, etcetera, then you may not

contracoins back. Now I'm not saying that they are going to go bankrupt, but with their stock sliding over. It leads a lot of people to thinking about that. But like I said, it doesn't even have to be a bankruptcy. What if there's just something, like I said, they pass a law in the United States that you can't withdraw your tokens anymore, So you definitely want to have them

off before that happens. UM. Like I said that, there could be any number of reasons why there's a potentially um an incident that all that you know prohibits you from withdrawing your coins off of them, and so you need to be careful of that, especially in today's uncertain world. Right there, there's lots of talk about regulating bitcoin, which of course is funny. A lot of people say, but what if they regulate bitcoin? I say, well, bitcoins already

the most regulated asset. So typically an asset would be regulated by one entity that that covers that asseid, but bitcoins regulated by all of them, so the I r S, the SEC, the CFTC FINS and etcetera. But they could regulate it more, they could crack on it more, especially when it comes to this uh um self custody UM. And you know you have to be careful about this because these these types of problems only continue to get

worse and worse and worse. UM. At the same time we're seeing we're seeing the demand grow, but we're also seeing the scams and problems abound at the same time. So it's almost like we're seeing it both, which of course makes sense. Right. As the demand grows, more people use it, more cryptocurrencies appear, more people use it, more problems are found. So so it goes without saying, UM, we can see that Fidelity, who has been a big

player in the bitcoin space for a long time. UM, they've they've jumped in bitcoin early and now they said they're adding a hundred and ten new workers by the end of the year as it continues to branch out UM into this space. So that's pretty rapidly for Fidelity, which is one of the largest asset managers in the

United States. UM. There, they've set up a way now to allow people planning for retirement holding it for oh one k to now take that four oh one k and put that into bitcoin, which is pretty big, and so a lot of growth, a lot more people coming into the space, UM, and it's growing. Remember the two things that we look at our growth of the network and development on the network. And so we've seen lots of development on the network. I'm talking about that, but

this is the growth on the network. UM as this continues to grow UM with Fidelity jumping in, that's massive opportunity. But you need to be aware with companies like coin base potentially having financial problems if they're holding onto your bitcoin, if you're giving them the responsibility to custody that asset for you, that's the problem and you should be taking

moves to pull that off as fast as possible. You listen to the Mark mo Show talking about the decentralized Revolution, explaining how the world is changing as technology is that driver that changes the world. Of course we're talking about bitcoin, cryptocurrencies, and we're looking at through the lens of politics, finance, and technology as these converge, as these change, so you can be better equipped and prepared to handle this change. That's what I got for you today. Thanks for listening.