The Great Crypto Unwind: A Replay of 2008

stuck in an existing system. UM. A lot of times we get what is it missed the forest for the trees sort of a thing where we're so inside of one system, where we're so zoomed in that it's hard to see the perspective of what's going on. And so i'd like to bring you some education to help you

think about that. Of course, I like to bring you the latest breaking news and information so you can stay up to date each and every week, and then of course we talk about or I'd like to bring on some new guests so you can hear some different perspectives UM, so you can get a well rounded view of things in better context of what's happening today. And boy, each and every week I love joining because there is so

much to talk about. UM. It's a good problem to have a consultant I used to work with said, these are high class problems. And so I've had problems in the past where there was not enough information to talk about. I remember doing content through and things were really boring back then. Um, now the problem is too much to talk about and trying to choose which stories to talk about.

And so, like I said, it's a high class problem, and that's all good, But you know, I want to kind of put things into perspective of what's going on, and a lot of what we've been talking about over the last month or two is really a kind of a continuation of what's going on, and I'm kind of giving you the play by play of how things are unwinding.

And so I've been talking about something called the crypto unwind, or that I was calling a great unwind, And what I'm talking about is an unwind of leverage or de leveraging, if you will. Now, Um, we see that there's leverage all over the system, and typically leverages built up through credit. Now, in our existing monetary system that we have in the world today, it's a debt based monetary system, and so

that means that all money that's created is debt. So Um, we talked about the Federalserve just printing buttons, pushing a button and printing money. That's not really the way it works. Money is created through debt issue. And so when you go get a loan for a car, boat, house, boat, whatever, that money is created into existence and it creates massive amounts of leverage because it's all debt. So think about

it for your own self, like your own personal household. Um, let's say that you were um using leverage to build assets. Let's say we're back to two tho a matter of fact, is a good parallel to what we're gonna talk about today.

So back in two thousand eight, people were able to buy multiple houses, multiple houses at the same time, and so people would go to these like new housing developments in California or Arizona or Nevada, Florida, those kind of hot spots of the country, and these home prices were exploding so fast, they were going up so fast that people could just go to a brand new housing development, put their name down to a a deposit down on a house,

sometimes a thousand dollars, five thousand dollars down on a house, and then once those houses were built, they could just sell them and make dollars per house times five or ten however many they bought. So they're putting a thousand or five thousand dollars down and then they're making dollars down the house. They're using leverage. It was that credit that there was being extended to them, and that works great. You can grow really really fast with that leverage. Another

way you can use leverages. Let's say that your business is expanding. Let's say that you were in the construction business, and so obviously construction business was booming, and so we need contractors to go out there and frame the walls and hang the dry wall, put the roofs on, build the fences, thro the landscaping, et cetera. And so I might have or other people might have gone about five or ten homes at a time. A lot of people were doing this, and so there's a lot of demand

for houses. And so now these these contractors that deliver these services also used leverage, and so they would go out and take loans to then buy more trucks and buy more equipment and hire more crews. And that leverage, that that credit that was extent them allowed them to build much faster to scale their business to take advantage

of all that incoming business. And so leverage works really well. Debt, debt, leverage, that credit, whatever you want to call it, um that credit, that debt, that leverage allows us to grow really fast. And if you were in playing this real estate game, you were UM leveraging that credit and you were getting five homes and they everyone really fast, or you're building your business really really fast, that was great. The problem is when um, we get to the end of that

credit cycle. So throughout this long term credit cycle, we're using more debt, using more debt, credit, credit, credit leverage, leverage everywhere, growing, growing, growing, not just you, not just the roof of the framer, the the window guy, the landscape, etcetera, but the homeowners buying the homes, um, but the whole system, the entire monetary system is basically doing that. So we have these long term credit cycles and all this credit debt leverage builds up in the system and we grow

massive growth. Gross domestic product is exploding, The economy is doing good, there's more money. People are going and spending more on clothes and at restaurants, and then those restaurants and are expanding, etcetera. So you can see how this winds up. The problem is when it unwinds down, and so just as fast as it grows on the upside, it actually unwinds and d leverages way faster. You can

think about this easy. Um. You know, it takes a while to take on debt um to continue to build your portfolio using debt, but you can just default on that debt instantly and all that can just disappear. And that's exactly what happens when things turn. And so back to two thousand and eight, all those people that had used debt credit leverage to build up those portfolio of all those homes, all those contractors who had scaled their businesses and bought all new equipment and new trucks, et cetera.

And then as soon as the market started to crash, it just started to unwind really really fast, and of course it led to the Great UH Financial Crash two thousand and eight. The entire banking system had built up so much leverage because then people were buying homes, and then those homes, those loans were being sold off, and then companies were buying giant package of these home loans and they were bundling them together, packing together, selling them

off in trenches. Then Wall Street was taking these packages, they were repackaging, bundling them, and they would take some high risk one, some low risk ones. They put them all together to try to get this blended risk model, and they'd packed them together and they'd sell them off,

these mortgage backed securities they were called. And so leverage built up from the individual homeowner through the contractors put it built up all the way through the financial system, all the way through Wall Street and into the global financial system where all the banks of the world were now trading these mortgage backed securities, and it became a big mess. So when the financial system crashed, there was exposure or to all of this, and this great unwind

just dragged everything down. Now, I've told you that a story just so you can get an understanding of something that you understand, something that you know, so you can understand how this crypto market crash is also part of the great unwind, and how it's interesting that we saw

Bitcoin was created out of the great financial crash. As a matter of fact, it was who was developed by Sotoshi Nakamoto famously put a line of text in the very first block that was mined on the Bitcoin network saying that the chancellors on the brink of another another bailout, so basically showing that this was because of the bailouts that was happening with the banking system, and so we wanted to create something in a response to that so that we could get rid of those problems. We would

be subject to those problems happening again. You know, a lot of times it's hard to see where decisions are. Things will take us um and so mistakes are made. Right, A lot of times people think that we should, you know, move fast and and take chances and break things. But but you're trying to learn from those mistakes, so you don't make those same mistakes again. My dad told me over and over and over as I was growing up. You pounded into my head always that once it's an accident,

and twice as stupid. So that means that, hey, look, we all make accidents, right, Let's just keep trying, try and try, and we will make accidents, but just don't make the same mistakes again. But unfortunately we make same mistakes again. Is unfortunately U two things I think. One they say that history doesn't repeat it rhymes well, it does repeat, and and it does rhyme. So we see that happen again, and so they say, those who don't

know history are bound to repeat it um. But then also we have human emotions like greed that get the best of us, and this time will be different, and we're gonna go ahead and bed at all. And so I like to say that that this leverage is like fire. It can be used to warm up your house or cook your food. Those are good things, or it could burn your house down. So I want to explain to you how the great unwinding the crypto market is very

similar to the two thous financial crash. What we can learn from this, more importantly, what we can see, how we come out of this, how we can navigate it. I got a whole lot to cover when I come back in a minute. You're listening to the Mark Moss Show talking about the decentralized Revolution, talking about bitcoin, cryptocurrencies and the greater financial system, trying to help you understand what's going on and hopefully prevent you from making the

same mistakes again twice. So I got a lot to cover when I come back. We'll be back in a minute, all right, Welcome back, you are listening to the Mark Moss Show, and uh, you know, each and every week I'm trying to give you the play by play, give you the context of what's going on in the world

today and what I called the decentralized Revolution. Last week I went through, uh an entire show explaining to you what the decentralized revolution is, because I talked about it every week and maybe a lot of you are like, what the heck is he talking about? So if you didn't catch that episode, I would encourage you to go

back and check it out. UM. You can find it on the I Heart Radio network or the I Heart app or any podcast app that you use, iTunes, whatever, Just search Mark Moss Podcast, Mark Moss Show and look back to the previous week. Um, early July. Sorry, um, and I had to show breaking down the decentralized revolution if you want to know what that means. Um, all right.

So I was talking about how Bitcoin, which is the technology leading this decentralized revolution, was designed after the two Great Financial Crash to prevent a lot of the problems that we saw from that crash, but unfortunately we sort

of ended back in the same place. And what I'm calling the great unwind, and I'm talking about an unwind of all this leverage, all this credit, all this depth that's been built up in the system, and so I want to kind of break that down so you can see what happened, um, but also how we can navigate this correctly and how we can maybe learn from these mistakes so we don't get caught up. Been this again. Now, some people were caught really, really bad. And I've heard,

unfortunately countless stories of people who have lost everything. And some people, um, were caught up a little bit, just they maybe their paper gains went down on paper. Now, if your paper gains went down a little bit, whatever, those paper gains were just paper and they'll come back eventually. But some people lost real money as a matter of fact. Um. I was in Austin m at Consensus as the largest

like cryptocurrency conference. It was about a month ago, and I was at it an after event and I saw I was Some guy came up to me and said, hey, Mark, I'm a big fan of your show. I've been watching your stuff, and that was cool. Wes talked for a little bit and he said, you know, I've been I've been in marketing my whole career and I and I built up this company. We specifically UM did marketing for

medicare and you know, government sponsored healthcare stuff. And it was a great business, did really well for me, and I made a lot of money and I just sold the company. We had a big exit, and I'm ready to move on to the next stage of my life. He's over fifty years old. I'm not exactly sure old he was, but over fifty. And he said, I'm ready to move on to this next stage of my life. And I came to this event. I booked this event

UM and I bought the whale pass. I bought the most expensive pass I get so I can come network and try to find my next opportunity. He said. But I had taken all that money from the cell of my business, and I had put it into this terror Luna stable coin because it's supposed to be stable and it offers me this awesome yield, and unfortunately I lost

it all all his money. He had built this business for most of his press professional career, had a nice exit, was looking forward to taking that money and moving on the next stage of his life. He put it all in and he got caught in the great unwind and lost it all. Now he's not alone. There's probably millions of people that got caught up in the same situation. It's devastating. So I want to make sure that you don't get caught up in that same situation. And like

I said, even if you're on the perp field. So let's take a look at this. So, as I said before, right, bitcoin was created about thirteen years ago, UM, coming out of the two Great financial crash, UM trying to prevent it. And so one of the big problems, as I already explained, is that the banks had built up all this leverage

and then the banks basically caused this crash. Now, a lot of times people want to tell you that it was the homeowners were way too greedy, they bought too many houses and they were the reason why the markets crashed. That's not true. Yes, homeowners did get too greedy, sure, but they were being given loans by Wall Street because Wall Street was too greedy, and Wall Street packaged these things up into these zombie sausages and sold them and

had got way too over leverage. That's what caused the crash. And of course, um all markets are cyclical and go up and down. So first of all, let me just say that the Federal Reserve, who backstops the banks, um is supposedly they're telling you. They're telling you and I that they print all this money per this what's known as Kinsean economics, in order to prevent booms and bus

because nobody wants to go through a bust. Nobody wants to lose money, right, and so if they could just pump in more credit, more debt when those bus cycles come, they could smooth that out. That's the story they tell us. Now, if you believe that I might have a bridge that I want to sell you as well, anybody with a few minutes online could look at charts and see that's

just absolutely false. As a matter of fact, we have boom and bust cycles going back hundreds of years, and right when the Federal Reserve was created nineteen, the boom and bus cycles have gotten bigger and bigger and bigger and bigger every single time, and so they're not smoothing anything out. Now. Boom and bust cycles are normal because we're humans and things change, styles change, what we want and need change. Uh, greed happens, and people go you know too far one way and then they have to

swing back the way. There's all types of reasons. Why you know, I was a manufacturer selling, um, what were those last things? So those fidget spinners, for example, right, that was a huge boom. Everybody wanted them. You're you're ordering tons and tons and tons. You can't keep up with the demand. And then all of a sudden that nobody wants them anymore. And anybody who jumped into that business, it was manufacturing those things, and in order a bunch

of inventories, they had a bust. It just happens, right, people got over too overleveraged in that probably, and so that happens, and so um. Unfortunately, that's just a natural process. Just like the world. We have seasons, right, spring, summer, winter fall, and so the spring everything grows, and the winter everything dies and it keeps going, or like a forest fire. Anyway, back to two tho eight, so the

banks created this problem. We had Bitcoin I was created and Stosi Nakamoto put a quote in two thousand nine and they said, quote, banks must be trusted to hold our money and transferred electronically for us, but they lend it out in waves of credit bubbles. With barely a fraction in reserve, and they don't even have any reserves today. So basically they're just they're sending out this money, creating

credit bubbles. That's what he talked about. So we give our money to the banks, they loan the money out, and they create these credit bubbles that inevitably crash and cause of all. Um, there's a great movie that talks about this, two thousand and eight, The Big Short. If you haven't watched it or read the book, or the book is amazing, or you could watch the movie. Um, it's got some great actors in it. And Uh, there's

a quote that says they mistook leverage for genius. So this kind of goes back to warm buffets quote that a rising tide raises all boats, and so when the markets are going up, everybody looks like a genius. You can just close your eyes by anything and you can make money, and then you use leverage and then you look really smart because you made more money than everybody else. So he says the quote, they mistook leverage for genius,

and so that's exactly what happened. Now, over the last couple of months, we've been seeing the effects of this in the cryptocurrency market, and we've been seeing basically all these cryptocurrency industry giants have been melting down, and uh, they've been basically toppling each other like a set of dominoes, the smaller ones leading to the medium sized ones leading to the bigger ones. And now we're pretty much wiped out of that. We're still dealing with that, but most

of the leverage has been wiped out. But it was basically like a bunch of nukes in the balance sheet um of these crypto lenders that were supposed to be holding money, but they were really just turning themselves into over leverage, risky hedge funds. So I want to talk about how this unwinds, where we're at with this, and how we move forward with this. In a minute, but

you're listening to the markma Show. We're talking about the decentralized revolution, We're talking about bitcoin, cryptocurrencies, the financial system overall. Given you context of what's going on today, Uh, we're gonna finish talking about what I'm calling the great unwind and how you can stay out of trouble as this continues and don't make the same mistake twice. I'll be back with that and more in a minute, So don't go away. I'm gonna be right back, all right, Welcome back,

and you are listening to the Markma Show. We're talking about the decentralized revolution, talking about bitcoin, cryptocurrencies, the greater financial system overall, and I'm explaining to you, if you're just tuning in, how what we're seeing happen in the great in the crypto economy, the great unwind, as I've been calling with the last couple weeks, is very similar

to what happened in two thousand and eight. And bitcoin and cryptocurrencies were designed to fix the problems in the financial system, but found themselves doing the exact same thing. And so we've seen, like I said, these crypto lenders that were supposed to be like banks. They're supposed to receive your deposits and then um be very careful with them.

Instead they turned into very risky, over leveraged like hedge funds, and one blew up and then it had exposure to the next, the next next, and we saw hundreds of billions of dollars worth of notional value just collapse, just gone. Hundreds of billions of dollars of value gone like that, and that's real money. I mean it was on paper, but a lot of people were expecting to have that money and now they don't have it. Um. Now we've

I've been reporting over the last couple of weeks. I think it's pretty much done as a matter of fact. And the founder of f t X, A CEO Sam Bankman, freed he's coming in backstop the last couple of exchanges that look like they're at risk of blowing up, and he has said that he thinks it's over. UM. I obviously at mcgreen with him now, as I said, this is really happening because of the leverage and the debt that was built up, and it builds up really fast

when markets are going up. As I've explained, when they wind up, it's the undwind that's the problem. Just like in two now, Bitcoin was, like I said, supposed to help us with this because now for the first time we could custody our own money without having to give

it to bank. See the problem. So it's toshiy Knakamoto said, if I go back to the original quote, banks must be trusted to hold our money and transferred, but they lend it out in waves of credit bubbles and so um, rather than give them our money and trusting them, we could just hold our money on our own and we don't have to give it to them, and we don't have to um have them put at risk because what's known as counterparty risk getting somebody else involved. We don't

have to have that at risk. The problem is it didn't fix it. We still ended up in the great unwind um, which is where we're at today. Now, why is that, Well, there's a couple of reasons why I think, um, and we're gonna take a look at those. One is that, you know, as humans, we have something that we suffer from called recency bias. So whatever has been happening in recent we just assume that's the way it is, or normalcy bias. Whatever has been going on is normal, and

we'll get back to normal, right. And so people are just used to putting their money in the bank, and they used to be used to getting a little bit of yield or a a little bit of return from the bank. Of course, for the last decade or so, we get basically nothing from the bank, and so we're giving them our money and we used to be compensated, and now

we get no compensation. So these these crypto banks, if if we'll call them that loosely, UM, they're typically called c FI or defy, which is decentralized finance or centralized finance. The block fives, the Celsius is the next, those are centralized finance, and then the compound the makers that um

i've those are like defied decentralized finance. But basically, I think that people are so used to they're so uh, it's so normal to just put our money into the bank that even though bitcoin is a revolution that makes it so we don't have to do that, people still want to. So there's that normalcy, normal reacency bias. But

then there's also the creed. So then it's like, well, why should I hold my bitcoin or my cryptocurrency and it just sits there doing nothing for me When I could give it to this platform and earned five, six, seven, eight percent, or I could do this and I could yield farm it and I could make ten or twenty or fifty or sixty. That's a good question. It's the

question you should be asking yourself. You might ask yourself why someone would pay me twenty or fifty or sixty or eighty percent when the banks pay me none, you might wonder if it's too good to be true. Sometimes

it is. You might wonder that, um, there's some risk involved, and maybe the lower amount of return that you would get on that bitcoin of crypto in the bank and in Block by Celsius et cetera, UM might be less risky than some of those higher risk You might ask yourself that, And if you haven't asked yourself that you

certainly should. But that's exactly what happened, and we saw, just like in two thousand eight, all these banks had intertwined obligations and exposure to each other that brought down Lehman Brothers and AI et cetera. We see now thirteen years later the same thing happened where people took their bitcoin cryptocurrencies, which they should cuss the on their own, but instead they put them into banks. The banks started doing all these risky loans, started getting this cross contamination

to each other, and then it all went south. Now, some of these um, some of these troubled entities, like Block five for example, was able to get a bailout. So back to the two financial crash. Some of them got bailouts like A I, D. Some of them didn't,

and so Block five was able to get I'm a bailout. Now, the one difference that I have that I think is a very important difference to understand is that in two thousand eight, if some of you guys are old enough to remember this, in two thousand eight, supposedly the belt the banks we're gonna melt down, and the a t MS we're going to run dry, is what they told us, And so the government had to step in and issue emergency credit of seven hundred billion dollars. At the time,

that was an amazing amount of money. It was like, no, you can't do that, it's gonna and everything. Uh. But what's important to understand is that came from the government, from the FED. They came from your tax dollars, meaning you socialize those losses to the banks had private gains. All that money they made that was made privately, they got to keep it. But when they lost, they didn't suffer the losses that those losses were socialized through your

in I taxes. Now, what's a little bit different in this crypto space is that no government or FED stepped in to save any of them. Uh, some of them saved each other so for example, f t X jumped in and bailed out block five. Um, but it wasn't it wasn't coming from the taxpayers. And this is a big thing. So bitcoin did sort of fix this because what happens is we live in a world today with

no personal responsibility. So um, you know, I'm I'm free to make whatever bad decisions I want and someone's gonna come bail me out. Or of course, these banks they can do as be as risky as they want, and they can get a bail out. And so what we should see is these banks, when they make risky loans and they lose their money, they should go out of business. When the airlines um, instead of saving their money or reinvesting it, they just bought a bunch of stock by backs.

And then when the markets turn south in twenty they didn't have any money. They should have gone bankrupt like they should have had uh, some sort of consequence. Otherwise it creates what's known as moral hazard. And again that was something that came out of that crash, at least for me, a moral hazard, which is basically, um, there's they have no reason, no moral reason to be concerned because they know that no matter how much dangers they

get themselves into. There's a bailoutcoming, and so we need to we need to see consequence. And that's exactly what did happen with bitcoin and cryptocurrency where these um most of these agencies that the Three arrows, Capital, the Terror, Luna, et cetera. They took way too much risk. The people got involved with them and took way too much risk, and they all lost it all. And I don't wish that on anybody, but it it represented responsibility and those

people hopefully won't make that same mistake twice. Like touching your hand on a hot stove, you don't want to do that again. But the problem is the moral hazard. What we have in the traditional banking system is that these banks make bad decisions and they get billed out, which means they don't learn any lesson. As a matter of fact, the lesson they learned is that they should take even more risk next time, because they could make even more money on that risk, and if they lose it,

who cares because they're going to get bailed out. But that's not what happened Celsius is it didn't get bailed out three years. Capital didn't get bailed out Voyager Digital, how to declare bankruptcy UM, And like I said, it's unfortunately they took a lot of depositor money with them. Now, UM, it cascaded from Luna and then it went all the way down into what I'm calling the three horsemen of the crypto apocalypse. So I explain to you what these

three uh, the three horsemen of the crypto apocalypse are. UM. We'll talk about how we're coming out of this, UM, what you need to know to survive this, and so much more. In a minute. You're listening to the Marketma show. We're talking about the decentralized revolution, We're talking about bitcoin, cryptocurrencies. We're talking about UM, the problem that bitcoin was created to solve, and how we kind of found ourselves right back in the very same place. But this time it

didn't rhyme. I'm sorry it didn't repeat it rhymed. It's a little bit different, and I want you understand that. Most importantly, I want you to understand the problems so you don't make the same mistakes again. I'll be back with all that and more in a minute. Don't go away, I'm gonna be right back, all right. Welcome back. You're listening to the MARKETMA show. We're talking about the decentralized revolution.

Of course, we talked about bitcoin, cryptocurrencies, the greater macro economic financial system that we're moving through, that's that's literally changing right before our very eyes. And we're talking about continuing to talk about the Great Unwind as I've been calling it, how the Great Crypto Unwind is a rhyme, a very similar instance of what happened in the two eight great financial crash as well, and basically a shakeout

of the leverage that got built into there. Now it As I said, people are just used to putting their money in the banks, and so they just thought they should put their bitcoin and cryptocurrency into these exchanges and into these yield farming things. Um, and a lot of people didn't think about the amount of risk that they were taking. And while I hate to see people lose money, like I said, we were at the age I tweeted this out a while ago, that we're about to see

the age of personal responsibility to snap back. Um, look, man, you're responsible for your health. Don't listen to some doctor on TV. He doesn't know you, he doesn't know your own personal situation. He doesn't know your your own risk profile, and so don't listen to him. It's up to you to take that responsibility. Now. I know the media is trying to tell you don't do your own research, but

do it. No one's coming to save you, No one's looking out for your best interests because nobody knows you personally. So some some doctor on TV Dr Fauci, he doesn't know what you need, doesn't know your risk profile. So look out for your own health. Um, they're not looking out for your financial health. It's up to you. They're not They don't know what food you need to eat.

It's up to you. So, you know, while I feel bad for a lot of people that have made the wrong medical decisions and it's now affecting them the wrong way, while I make why, I feel bad for a lot of people that have made the wrong financial decisions and now it's unfortunately been disasters for them. Hopefully they'll learn their lesson and hopefully even better, you and I can learn from their lessons without having to go through that. But but Tera Luna went down, then it started to

unwind the three hours capital we've talked about. UM, that brought down eighteen billion dollars in assets right from there. UM. We've yet to see how how big or or what type of legal consequences this will bring UM, but we're we're expecting it to be pretty severe for some of the people at least. We're starting to see that kind of shake out. But then this has led into the

gray scale Bitcoin trust. We talked about that UM and so the gray scale Bitcoin trust has this massive discount, and as that discount has been going down, it's put a lot more pressure onto these companies that were holding on UM. And so we've seen that. But you know, one one thing is that, like I said, this was supposed to bank the unbanked. So think about that for a minute. So right now today, per the UN there's about about half the adults in the world today have

no access to banks for a number of reasons. Mostly they're not allowed they don't have permission to join banks. So the US financial system, and it's uh, the swift banking system around the world basically has requirements called k y C Know your Customer and so you have to have you have to have all this information and get permission to join the financial system. Now, if you're a kid growing up in a sanctioned country. You're a you're an Iran, for example, Um, you don't get to join

the financial system. You're you're not allowed. In many other nations, they just don't have the right documents. They just don't

have them. You know, you live out in the sub Sahara, Africa or something like that, or sent deep in the jungle of south of Central America, you just don't have the legal documents to get a bank account, so you're not you don't you don't have permission to join your unbanked or in some places, even like hel Salvado, for example, it's just too expensive to create a bank account, and

so there they don't have bank accounts. Now, I've talked a lot about this, you know, I believe that this this this iPhone thing that we have, these smartphone things that we have are are like the great equalizer because with the phone you can learn anything, and meet anyone on and do anything. And we've seen many instances of kids, not even teenagers, barely teenagers, creating a YouTube channel or an Instagram account and making you know, a hundred thousand

dollars or more. So pretty much anywhere in the world. If you have an access to a smartphone, you can learn anything, to meet anyone, to anyone, But if you don't have access to the financial system, then you can't. You need access to the financial system. So we have about half the half the world. Half the adults in the world today are unbanked, don't have access to banking,

and so the bitcoin is supposed to solve that. So in al sov it All, for example, anyone can download a bitcoin wallet, no permission needed, downloaded, and they could instantly start receiving and sending digital payments. There in the global financial system. It's the great equalizer, and we're supposed

to be able to reach the unbanked. So all these adults that don't have acts to the finance system can now join the financial system, and um, those of us that are banked, we could un bank ourselves instead of trying or trusting the counterparty risk of one of these financial institutions that have proven time and time again that that they can't be trusted, instead of being banked with one of them, we could unbank ourselves and we could move on to a bitcoin or crypto currency thing. And

that's how it's supposed to be. We're supposed to be unbanked. But unfortunately, like I said, even though the greatest technological revolution we've seen to date me being able to hold my own assets. Now, what do I mean by that claim the greatest technological revolution? Well, the oldest problem that mankind has had since the beginning is how do I hold my hold my assets in a way that can't be stolen. So we've made villages, and we've made kingdoms

and cities and countries, et cetera. But bitcoin solve that. We don't need to trust somebody else. We can hold it ourselves. But most people still aren't in that. They still want to give my money to somebody, A still holds it for me. Please just just hold it. Celsius block Fire. Even Alex mcsinski from Celsius went around telling people people don't want to hold their own cryptocurrency. It's too it's too complicated, it's too hard, it's too much, it's too risky. Just give it to us, we'll hold

it for you. Well look what happened. So you know if I hold it myself. Back to this age of personal responsibility, if I hold it myself, I need to be personally responsible for it so it doesn't get stolen. But it's not that hard to do. Now, if I'm trying to hold my gold, how do I hold my gold in a way that it doesn't get stolen? Uh? You know in old days, I might go bury it and make a treasure map for it, um. And then but then I have to secure the map. What happens

if I don't scare the map properly? If I have a lot of gold, I might have to build a big vault and a safe. I might have to have security they're guarding it to be very expensive, to be very difficult for me to secure my wealth in gold. Um. I could leave it under my pillow or under my mattress. But then if I'm gone, so we can come steal it, right um. Or you know, we could put the gold into a bank and the bank could give us an iou um that we can come get that goal whenever

we want. But then in nineteen thirty three, the U. S. Government seized everybody's gold that was sit in the bank. And so you have option one. I store it myself, but I have to take responsibility, have to take to take the risk of that. Option two is I give it to somebody else but not have to deal with that risk, and that's what happened with crypto. Now hopefully you're learning from this. So uh, the learning lesson to have here is that those that use these risky ways

to earn yield, these defy yield farming it was called. Um. Unfortunately a lot of them lost everything. Now, I don't want to risk a hundred percent of my investment for a five, six ten percent yield. That doesn't work. I want to invest tend to make a hundred now, Um, what about those who weren't involved in this? So this has brought the price of bitcoin from forty or fifty thousand down to twenty So even me not involved in the these risky things, I've seen my paper value of

my bitcoin or cryptocurrency drop. So I got affected even though I wasn't involved in this. My hope is that because there was no bail out, most of these people learn their lesson. Um. What I hope is that we don't repeat this again. I believe the paper value is going to come back. Like I'm gonna hold my bitcoin, I'm gonna hold my cryptocurrency. It's gonna come back in value. Um, So I lost it on paper, I'll get it back

on paper. But I hope that we'll see these things be used less and less and less in the future, because at least this is different than two. There was no lesson learned, there's no accountability, but in the cryptocraph there was. I believe people will go to jail. I believe people who lost money won't do this again. And I believe that we'll learn our lesson this time, and the paper games come back and we're all better off. But what do you think. I'd love to hear your comment.

You can shoot me a message on any of the social media platforms at one Mark Moss. That's right at one Mark Moss. Check out my website at one Mark moss dot com for more resources. And that's what I got to talk about today. Um we repeated, or we rhymed, we didn't repeat. Thanks for listening until next time.