All right, welcome back. You are listening to the Mark Moa show where I talk about bitcoin, cryptocurrencies and the decentralized revolution, giving you the information that you need to take advantage of the biggest wealth transfer that we'll ever see. Now. Before the break, I was talking about UM, the Federal Reserve,
I was talking about the Central Bank. I was talking about government's talking about the debt ceiling UM and how every couple years we get this song and dance about the debt ceiling, And then I was going into what more debt means, specifically in regards to your wealth, how you build wealth um, and then of course how that is a driver to bitcoin. So I was asking the question, um, our US home prices expensive or cheap right now? And
I'm going to tell you the answer to that. So the answer to that is, actually, first you have to ask a different question, Our U s home price is expensive or cheap compared to what, but also more importantly priced in what now? Remember I said that before the break, I said that the value you of your home hasn't gone up. The value of the dollar went down, so
it takes more dollars to buy the home today. So when I say our U S home price is cheap or expensive than I would say, priced in what well, priced in US dollars, which, of course we dominant denominate everything in US dollars. If you're in the U S and even most of the world priced in US dollars, homes have never been more expensive. Okay, that's the answer. They're more expensive. But what if we priced them in something else? Because remember, at the end of the day,
everything is a trade. If I go to the store, I'm going to trade them my dollars for their product. Right now, if we're trading stocks or trading cryptocurrencies, I might trade one Ethereum token for a light coin token, or one Ethereum token for a bitcoin token, or one light coin for a bitcoin and so everything's a trade, right. Um, It's like like a barter system. Money is the piece in the middle. So if I price it in dollars, it's never been more expensive. But what if I price
it in something else? So if we go back, uh, before the break I was talking about, the gold standard got severed in nineteen seventy one, so we started printing hundreds of chillions dollars after that. So if we go to nineteen seventy. The year before that happened, the median home price was worth about um, shoot, I thought I had that exact number. I think it was worth about about forty dollars um. Today the median home price is worth about three hundred and fifty thousand dollars, So in
U S dollars it's way more expensive. But in nineteen seventy, the median home price was about forty dollars. But it was also six hundred and forty six ounces of gold. Well, okay, Well, if I was gonna buy it in gold would be sixty six ounces. Today it's a hundred and ninety four ounces of gold. Hm hmmm. So you're saying, if I was just storing my my wealth and gold, homes are actually cheaper. They're actually less than half the price they used to be. Yep, that's what I'm saying. Well, what
about something else? Well, what if in nineteen seventy, what if I stored my wealth and oil. A lot of people buy oil, I own oil I own. Actually I'm part of an oil field, and I'm a GP in an oil field. Um, so what if I store my wealth in oil? Well, in nineteen seventy was six thousand, seven hundred of oil for the mediat home price. Today in two it's four thousand six, so it's not quite half the price, but it's still much cheaper in oil. Okay, what if I used rice? What if I'm a rice
farmer and I store my wealth and rice. Well, in nineteen seventy was forty three thousand tons of rice, and today it's twenty seven thousand pounds or tons of rice, so it's actually gotten cheaper. Homes are cheaper in rice. Okay, that's stupid, mark. Nobody's going to store their wealth and oil or gold, I guess. So what about I store my wealth in the in the SMP five hundred in
the stock market? Okay, Well, in nineteen seventy it would have taken two hundred and forty three shares of the SMP five hundred, and in two thousand twenty one it takes eighty shares of five So I would ask you the question again, our homes expensive or cheap? Today? Let's look at bitcoin. Now, um in bitcoin hasn't been around since nineteen seventy, but we can look at the two
thousand ten price. So in two thousand ten it was seven hundred and seventy three thousand bitcoin to buy a house the median home price UM today in two one it's ten ten bitcoin. So again our homes cheaper expensive priced in what and so um. Two things that I'm hoping that you get out of this one what you store your wealth in matters, and it matters big time, as you can tell now to show you an example of that, in nineteen seventy it took fifty one thousand
pounds of oranges to buy the median home price. Today it's two eighty thousand. So in dollars and oranges, homes have never been more expensive. But in gold, oil, smp F, rice and bitcoin they've never been cheaper. And if you're holding bitcoin, they have they've never been I mean, it was seven almost three quarters of a million bitcoin ten years ago and today it's ten. And so what you
store your wealth and matters. And also I'm trying to show hoping to your kitchen catching on here that the more dollars the government and the central banks print, the more they raise the debt ceiling, the less your dollars can buy, the less they're worth. They're worth less, worthless, right, they continue to buy more and more and more, and so you need to start looking at things like that.
Where you store your wealth matters. And so if you're unfortunately in the poorer right, you're getting poorer and poor while the rich get richer and richer. Um, you've probably seen the headlines. I mean, they're they're trying to get
everybody divided against each other. So everybody's against their their their counterpart at these days, and so there's this attack on the rich, and so you know, everyone's like, well, the rich have profited since the pandemic, and um, you know, the top one percent and have gained a trillion dollars of wealth and blah blah blah. Well, if you would also own the same assets that they owned, then your
wealth would have gone up by the same percentage. Now the dollar amount would be less, obviously because it's a percentage. So if i'm you know, if i'm if I'm if I don't have as much money and I have a thousand dollars invested and goes up by you know, the hunter bucks, if I have a hundred million invested at the ten per cent is a different number. But the point is is that you need to get your storage where you store your money out of dollars and you
need to invest them like the rich. So that as the Fed continues to print more dollars, as they continue to put more money in, as those dollars continue to lose their purchasing power, your purchasing power will be going up. So that's that kind of rounds it out with the
debt ceiling. Hopefully that that brings some clarity. By the way, you're listening to the markma Show where I talk about bitcoin, I talk about cryptocurrencies, I talk about the decentralized revolution that's going on, trying to bring you each and every week the asymmetric information that you need so you can play the biggest opportunity asymmetric oportunity will ever see in our lifetime. So, um, I was talking about the debt ceiling and how the government is uh squabbling over this.
Will they raise it? Will they not? Of course I'm pretty sure they will. They always do, and so that is one of the big drivers on bitcoin. Now what's interesting about this A little side note is there was a video that came out from President Biden, and President Biden said, you don't he was there talking about the infrastructure Bild. Why are you trying to get a three point five trillion dollar infrastructure built together when we can't
even pay the debt. And he said, I'll somewhat paraphrase it, and he said, let me be clear. He always likes to say that. Let me be clear. Um, the debt ceiling is not about the infrastructure spending. We need to raise the debt ceiling so we can take on more debt so we can pay off the old debt, all right. It has nothing to do with the infrastructure we need. If we don't raise the debt ceiling in the U,
S could lose this credit. And so we need to raise the debt take on more debt to pay the old debt, which, if I'm not mistaken, is literally the definition of a Ponzi scheme, um, which sounds like what President Biden was explaining. As a matter of fact, the definition of a Ponzi scheme is just that it's an investment fraud that pays existing investors with funds collected from new investors. That's the definition. I'm reading it word for
word from you right here. So it's a scheme that pays new investors with funds old investors, existing investors with funds collected from new investors. So when President Biden says we need to increase the debt limit, not for new spending, we need to increase it so we can pay off our existing debt. That's like you going to UH American Express or Visa and saying, I need a new credit card so I can pay my old credit cards. The chance of them giving you that credit is probably going
to be pretty slim. And so that's the situation that we're that we're in, and I think more and more people are starting to wake up to at They're starting to recognize that the financial system is over indebted. Um, it's it's the Titanic. It's it's a sinking ship. Um, it's taking on water. There's no way to patch it right now, unfortunately. Um, the only option for the Titanic is the sink. And that's horrible. But you don't have to be on the Titanic as it's sinking. You can
get onto a lifeboat. And that's what bitcoin provides. That's what we're talking about. I'm gonna show you some other factors that are pushing bitcoin when I get back. You're listening to the Mark Moss Show, and I'll be back with more on bitcoin. All right, you are back listening to the Mark Moa show where I talk about bitcoin. I talked about cryptocurrencies. I talk about the decentralized revolution that's happening. And I don't just talk about what they are. Um,
I'm trying to tell you why. That's kind of my approach. Why why does it matter? Why do we care, why do we want to buy it? Why do we expect the price to go up in value? And all those other things. Before the break, I was talking about the debt ceiling. I was explaining how the more DA dollars that are created, the less they buy. The purchasing power goes down, and what you store your wealth in matters. That's the difference between the rich and the poor. Right.
The rich store their wealth in assets, and as the Fed prints money, those assets go open value. The poor don't buy assets. They work for wages, and those wages continue to buy less and less and less because of the central banks continually printing more money. So that's a big one. As a matter of fact, really, the Federal Reserve is what's driving everything today. So we look at any of the markets and that's really what's causing it.
But there's some other catalysts that happened. That's that's big, but it's a little bit smaller than that. So if I'm kind of coming down a little bit off of that um this this week we saw some big news. Now, if you've been with me since we started the show, you remember I talked about when we buy something like bitcoins and something like a new technology like this, there's
really there's two indicators that we're trying to watch. Remember, the price, the short term price can be a distraction, and so what we really want to look at is two things. One are the network effects growing more people using it, because the more people use it, the more it's worth. And then we also want to look at the development that's happened on it. And so some big news came out this week that I think actually checks
both of those boxes. Now, the news actually came out several months ago, but today the news is actually coming true. And so what that big news is is that the banking system, so we're talking about you know, Bank of America, Wells, Fargo, JP, Morgan, etcetera, etcetera, etcetera. They're seeing people pulling their money out of the banks and then going and buying bitcoin and cryptocurrencies with it.
They're seeing people why are money from their banks over to coin base or or cracking or whatever it may be. And guess what, they don't really like that. They want to keep your money in the bank. They don't want you to send your money somewhere else. And so they're they're recognizing this. Now. The thing about a banking relationship is it's what we would call sticky. UM. That means that once you set up a bank account and you establish a andcy relationship, you typically keep it right, you stay,
you stay in it. UM. I know that I've been with Bank of America. I'm sorry. I've been with Wells Fargo since I got my very first bank account. UM. I don't particularly like them. I've they've been accused, not just accused, but they've paid out the largest settlements for wrongdoing. UM. So they're probably not the best bank to be with. But you know what, for me to go close my accounts and go upen new ones, this is too much, right,
it's sticky. They have me. But if I pull my money out and I start using Cracking as a bank, and I can hold bitcoin and I can send them receive payments and dollars and all those things. Then I'll probably never come back once I make the switch, I'll never come back. So the banks recognize this and they shoot, well, we got to do something, So, um, why don't we offer cryptocurrencies inside the bank, Like we already have their money? Why do we let them pull it out and send
us them world? Why don't we just sell them cryptocurrencies inside of her? And so that's exactly what is happening. Um. There's a company called night digg and my d I G nightgg and they announced a few months ago. Um they run back off the services for banks, and then anouked a couple of months ago that they were going to UM work with I think it was three hundred banks,
which service like three hundred million checking accounts. Is it's been a few months I report on this, but a few hundred million checking accounts would have access to buy, sell, and store cryptocurrencies right in their checking account. Now, UM, that might be bad for the coin bases and the crackings of the world. It's good for the banks because they keep their custody um or their customer. But the big winner, of course is the cryptocurrency acid itself. Right,
we're talking about adoption. Remember Metcalf's law we talked about when we first opened up, and so, um, they announced that that was going to take the place, and they said that they would do that before the end of the year. Now, I talked to many of the insiders I have inside the banks, and they told me they didn't think it was going to happen. Um, They're like, do you know how slow banks move. Do you think they're literally gonna be able to do this inside of
six months, like change the whole system around. And I kind of believed them, you know, It's like, well, they announced it, they said they're going to do by the end of the year. But yeah, you're right, Like banks can't even update their their their computer networks, Like, yeah, they're probably gonna do it. Well, we were both wrong in a sense because this week we saw US Bank launch their bitcoin custody service um and to and to
cater to these cryptocurrencies. So US Bank is the fifth biggest retail bank in the nation, and on Tuesday they announced that their crypto cryptocurrency custody service is now available to fund managers. Now, at first, it's just available to fund managers of course, this will come as they get the bugs worked out, the kinks worked out, litrical, this down to everybody else and so UM. They announced it a few months ago, they said they'd be done by
the end of the year, and here it is. We're seeing at the fifth biggest retail bank in the nation has done that. UM. And so they're offering help for investment managers to store their private keys for Bitcoin, Bitcoin Cash, and lightcoin UM. Those are the three coins that they started with right now. UM. They said that they will try to support other coins UM over time, but for right now, it's just those And like I said, for right now, it's just to cater to institutional investors UM.
But again, as they get this program going, it will continue to UM to spread down to the lower level. Now, what's important about this is that there's a lot of institutional investors fund managers who have not been buying bitcoin because of the custody solution. So if you're not familiar with what I'm talking about, let me explain custody for just a minute. Now. UM. You are listening to the markma Show where I talk about bitcoin, cryptocurrencies and the
decentralized revolution and UM. The The unique thing about bitcoin compared to any other asset in the world is that I can take custody of it. So um, of course, you know, if I buy gold, I can take custody of gold, and so I can put that in my bank. And so that's why gold has been good money for five thousand years. Um. When I old gold in my own safe, or I bury it in the ground, I have a map for or whatever. Um, when I hold
the gold, I have it. Right. It's like a custody is nine tenths of the law or something right, So like I own it. Um. When I own a stock, for example, so I own a share of apple stock, let's just say, um, and it's in my E trade account. Well, I don't actually own apple stock. And this is this is a big deal, and it doesn't seem like a big deal at first, But what that means is that I don't actually own the apple stock. The apple stock is owed to me. So so E Trade, for example,
would owe me the apple stock. So I own an I owe you, not the stock. The reason why that's important is because legally I don't actually own it. It's owed to me. And that means that if they you know, go bankrupt or something like that. They don't have to give it to me. They could default on the debt that they owe to me. Versus, if I hold gold in my safe, there's no counterparty. Nobody is that to me, right, So that's the big thing. That is what's revolution right now.
The problem with stocks is that UM each trade doesn't own the stock either, it's owed the stocked by somebody else, which is stocked by somebody else. And there's about six layers in between the company Apple and myself. There's about six people that each have a liability and an asset at the same time. So if anybody in that chain were to um, you know, find become insolvent, whatever, then all of those people lose that asset UM. But bitcoin is more like gold where it allows me to take
custody of that asset with no counterparty. Another reason why it's different than gold is that it's also portable. So having a lot of gold is very difficult to take a round with you. So I want to explain what US bank is doing to help customers on board with custody, and why this is coming for the rest of the banks UM, and why this is about to explode user adoption throughout the country. Now, this is a trend that
you want to what we call front run. You want to get in front of it because when that herd comes in, you want to be already in position. So we'll talk about that as soon as I get back. You are listening to the Mark Moss Show where I talk about bitcoin, cryptocurrencies, the decentralized Revolution. Here with Mark Moss,
and I'll be right back. All right, Welcome back. You are with Mark Moss listening to the Mark mass Show where I talk about h and every week I talk about Bitcoin, I talked about cryptocurrencies, I talk about the decentralized revolution. It is literally the biggest opportunity. It is the greatest wealth transfer that you will ever see, will ever see anyone in our lifetime, will ever see. The way to take advantage of it and not get shaken out by is to have this information that I'm gonna
bring to you every week. So take a look real quick at what station you're listening to me on, put it on your calendar for this date, this time, and market downst here with me each and every week. It could literally be life changing information that I give to you. Lookay and my name is Mark Moss. Uh. If you're on Twitter, give me a follow. It's one Mark Moss. That's right, one Mark Moss on Twitter. UM at me, I mean, send me a question. I'd love to get
your questions. I'll answer them on the next episode next week. Go ahead and shoot that over to me. If anything I'm saying is causing some curiosity and you have some questions, make sure to send them to me and I'll answer them next week. Now, we were talking before the break
about UM this institutional adoption that's coming. And remember if if you've been with me since the beginning of the show, we talked about when you're investing into something new, when you're buying a new UM, something new like bitcoin, and I used real estate as an example, UM to ignore the short term price that's a distraction and instead look at two things. And that was one the network effects and to the development. And so what we're talking about
right now is both of those things. So now banks around in the United States are now starting to offer bitcoin custody in the bank. So that's gonna both the two things. One the bank's offering that is development and then offering it to their customers. Brings on more customers, which is more network effects, so it hits both of
those at the same time. Now, I was explaining how they're going to offer custody and what custody meant and how UM the revolutionary thing about bitcoin is that allows me to hold custody of it myself, so there's no counterparty risk, kind of like gold, except for gold is very hard to move around UM and bitcoin is digital
and so it makes it easy to do that. UM. Now the problem the good that that's the revolutionary thing is the custody, but it can become complicated when you're dealing with businesses or hedge funds or institutions and things like that. So for me, my family, me personally, I want my keys, I want custody of my bitcoin. I don't want any counterparty risk to that. But let's say that I'm a business, Let's say that I'm a public entity. Let's say I'm a hedge fund. Who is going to
hold that key? Who, like you, don't want to give it to one guy. We've seen instances where that one guy has died and uh no, no one else in the company or the fund of the exchange knows where the key is and it's just gone could be I mean, I think in one case in Canada like two years ago, was like fifty million dollars just disappeared. He died and that was it, and so that could be a big problem. Also, we don't want a way where um, a bad actor, right say, somebody that works for that that fund or
whatever is malicious and then tries to steal that. And so you can see on a personal level it makes sense to kind of have that custody, but on a on a bigger corporate kind of hedge fund level, it's a problem. And so that's kind of this need that that US Bank is is jumping into right off the bat by offering to the institutional clients. And so you're this big hedge fund and you just have the bank
holding right. Typically the banks store your wealth, they store your assets, and so they can store your bitcoin wealth, and so that's what they're doing. Um they think, you know, they're already safeguarding trillions of dollars of assets for money managers and things like that, and so it just kind of makes sense that they could now um in addition to the trillions of dollars are already custody holding, they
can now do a cryptocurrencies as well. Now, um, as I said, I think this is just kind of the tip of the iceberg. This is kind of where it starts, and eventually this will be offered to all the individual UM bank you know bank holders as well. Now there's many bank individuals like myself that that my bank there, that may want to use the bank to actually custody my bitcoin, or I could take custody of it myself.
So those are kind of to two different options. Now the benefit there, there's pros and cons to both sides, and so I think it's important to kind of understand what those pros and cons are. So um, of course it's easy to understand that any time I give an asset anything could be my phone, could be a pen, could be money. Anytime I give something to somebody else, there's a risk that I don't get it back. Now, if I give it to someone in my family, the risk of me not getting it back is very very low.
If I give it to a you know, Ponzi scheme, the chance of me not getting it back is very very high, and so you kind of have to evaluate what that risk level is. So if I give it to somebody, there's risk I don't get it back. That's called counter party count to party risk, and you always want to understand what that is. If I a custody the bitcoin myself, there is no counterparty risk. I have it now, but the risk shifts now. The risk isn't in in me not getting it back. The risk is
can I secure it properly? So if I let if I let us bank hold it, I would imagine that their security is top notch. I would imagine the chance of them losing my money. My bitcoin is probably salimin
on the risk. The risk percentage of them losing my bitcoin is almost zero, and uh, in a lot of cases will probably have insurance if something were to happen, all right, Versus if I hold it myself, UM, I use some some form of a wallet, I could lose that, so the risk of me losing it is higher, all right, So you have to kind of consider those. But let's let's dig in a little bit deeper. Now. We've seen across the world in different jurisdictions China and recently just
banned a bitcoin again. We've seen in Europe the ECB European Central Bank, UM, they've talked about increasing regulations on cryptocurrencies. In the United States, they've talked about increasing regulations on cryptocurrencies, and it's very possible that at some point in the near future, especially outside of the US, but even in the US, it's very possible that in the near future, UM, they could make it where you're not allowed to custody
your own cryptocurrency anymore. And so there is a potential where I let us bank hold it for me, but then they never allowed me to withdraw it. They just take it from you. UM. We've seen this happen UM many times. So for example, UM, when Cuba was a little bit more opened up a year or two ago, there was a there's tons of stories online of people that went to Cuba and while they were in Cuba at their hotel, they logged into their coin base account.
Coin based flagged that they were on a Cuban I P I P address and UH locked their account and they couldn't get back into their account. And the only way they can get access to the account again was to go through the I think Secretary of State and get some sort of affidavit, which is like impossible to get. It could take years before they ever get access to
their account again. So the risk isn't them necessarily getting hacked or getting stolen from them, but the risk is that they may not give it back to you, right, and that either you went to Cuba, you know, something like that um or um you know, they get um some sort of a lawsuit, or the regulations change and they're not allowed to let you pull that out anymore. Now you may think that's ridiculous, but have you ever heard of Article six O two? Because Article two was
passed in three and they took everybody's gold. So back then gold was money. Remember I said that gold the benefit of goals. I can custody it myself, but the problem is it's hard to move around. So everybody put their gold in the bank, and then the bank held the gold and they gave me something called a paper gold certificate, which is now known as like a dollar, and that paper gold certificate represented that that gold in
the bank. But what happened is because the government couldn't live within their means, they printed way too many of those paper goal certificates the dollars um. They literally had to pass Article two and they shut all the banks down for a week and when they reopened the banks, it was illegal for U. S. Citizens to own gold.
It was illegal, and so um, if you think it may be ridiculous that the government could say that you're not allowed to pull your money out anymore, um, then you probably haven't been studying history, because it certainly has happened before. And so you just have to figure out where do you think that risk lies. Do you think that's ridiculous, The chance of that happened is slim to none? Okay, great, then that's where you sign that on your risk scale.
If you're somebody who thinks that that there's a big risk of that, then you need to give it more risk waiting. And so you have to understand the risk isn't them necessarily getting it stolen from them, but they may not give it back to you for those reasons. The flip side is that I hold it myself, and there's a whole different set of risks that are there, and I want to explain to you what those are. But of course there's also good ways to mitigate those
risks that I'll explain to you as well. And this is someone who has literal really lost I hate to tell you. In today's dollars. I've lost over two million dollars in bitcoin. Now, when I lost it, it wasn't worth that much, but in today's dollars it would be because I didn't know some of these things. And I'm gonna explain to you what I did wrong. So you don't make those same mistakes, um, because it's it's easy to remedy them. You don't. You don't need to make
those mistakes like I did. Um. And as bitcoin continued to go up, I mean, it's at fifty five dollars today. You know, it could be at a million dollars in in five or ten years from now. And even if you lost you know, ten or twenty dollars like I did at the time, it could turn out to be huge amounts of money. So I'm gonna explain what those risks are for you holding yourself, how you can do it safely, some tips and tricks that I can give you. By the way, you're listening to the Mark mass Show.
I'm talking about bitcoin, I'm talking about cryptocurrencies. I'm giving you the information you need to succeed. I'll be right back everyone. Welcome back. You are listening to the Mark ma Show, where I bring to you each and every week the most important information that you're ever gonna hear. So what is that? What is that information? Well, I'm bringing you the most up to date, most important information
on bitcoin, on cryptocurrencies, on the decentralized revolution. I am talking about the greatest wealth transfer that will ever see. And you have the benefit of being born at a time where you can participate. But only if you have the right information. A lot of people get bad information and they think it's a joke, they think it's a scam. They don't participate. But you are listening now. I'm gonna
bring this information to each and every week. So right now, take a second, pull out your phone, set a calendar reminder, and join me each and every week, and of course follow me on Twitter. UM number one Mark Moss, the number one Mark Moss on Twitter. Send me a question. I'll answer it next week. Now you were just joining in. I was talking about the bank in the United States announced that they were going to start offering a bitcoin
and cryptocurrency services to their customers. Um, we just got news this week that US Bank, the fifth largest bank in the United States, is now launched those services. They're available and I was talking about the differences of having a bank or somebody else custody those, um those coins for you, or you doing it yourself. And so I just went through the risks of the bank doing it. I'm not gonna go back through that. But basically, the chance of them losing them or getting stolen is probably
slim to none. There's very little risk there. But there is risk that they may not give those back to you for any number of reasons. That's called counterparty risk. The other side is that I can hold them myself. Now, first off, what does that even mean? Right? What does that even mean? So you hear about these coins, right, these cryptocurrency coins? Is bitcoin kind of a thing, So what does that mean? Well, how do I custody it myself? Because it's digital? Right, So it's not like I can
like hold it in my hand. And a lot of people think it's not worth anything because I can't hold it in my hand. They think that, um, like gold, if I if I can't hold it in my hand, it's not worth anything. But of course, um, unless you've been living in a rock, you understand that all types of digital things have value today. So, um, what does that mean that you hold custody of yourself. Well you don't ever like you don't download them, like you don't
hold coins, you don't download them. What you what you hold? The only thing you hold is a key. So let me explain this and the best way that I can over the radio. And so think about it like, um, think about it like a locker system. So remember the old days, depending on how old you are, the old days where like bus stations and airports used to have lockers, right, or maybe at your high school or whatever, you have a locker. And so there's a there's a public address.
I'd say, hey, my lockers a C nineteen, go in there and slip this envelope in there. I drop a check in there for me locker C nineteen. That's my public address. And then I have a private key that allows me to go open that locker and take stuff out of it. Right. And so think about the blockchain, think about it in the cloud and this blockchain, and
think about it like this digital locker system. And so you have both a public address where anybody could have your bitcoin or your your blockchain public address, and anybody with that public address could send you money. Um. But then have a private key that allows me to open that locker and pull stuff out. And so the only thing that you ever really have is your key. Now, there's a number of ways you can hold that key. One,
you can download any number of apps on your smartphone. UM, So right from your Android or iPhone, you could download any number of apps and that would hold your private key. UM. That's one way. We'd call those like a hot wallet. UM. The problem with those is that because it's on your phone, it's always connected to the Internet, and if any type of a hacker were to get ahold of that, they could extract the extract your private key, and then empty
your locker. That's happened to me back in I had about forty dollars US dollar at that time at the current valuation UM disappear out of a wallet that I had on my phone. I'm not exactly sure what happened. I was in Mexico, I was at a at a rental house. I was using public WiFi every day. I was putting money into my wallet, and then one day I logged in and it was zero. UM. And so that's not my favorite option. I don't do that anymore.
I learned one time I don't do that anymore. UM. I do use some apps on my phone as wallets, but I think about them like I would my wallet in my pocket. I don't walk around with the wallet in my pocket, with my credit cards in my I D I don't walk around with my life savings in that. If I were to lose my wallet, I could stop my credit cards. I could order your credit cards, and if I had fifty bucks or a hundred bucks in there, it's nothing end of the world. UM. So that's the
way I look at wallets on my phone. I'll put a little bits of money in there. I'm walking around money I'm in I'm in El Salvador. I want to buy some coffee, some lunch, I'll use that. UM. The next level would be a hardware wallet, so you can find those. They're like Treasure or Ledger, and they're they're like a little USB device that you plug into the USB on your computer and so, UM, they sign the transactions.
So the key is stored in that device. And so I would say, hey, send you know, this much bitcoin to this address, and then it would say, okay, we'll give us the key. So I'd plug that device in it would sign the transaction and unplug it. The benefit of that is that that key never goes onto a computer that has Internet access, so it keeps it away from any kind of hackers or malware or anything like that. So that's the second best way to do that I
would use. I would use a hardware wallet. Um. Now, in my particular case, UM, I'm using multiple of them. And the reason why is that the more money you have, the more you need to protect it. Right. If I only have a hundred bucks, if I lose it something in the world. If I have a hundred million bucks and I lose it, that's a very big deal. And so the more money you have, the more you'd want
to protect it. By the way, you're listening to the Mark Moa show, we're talking about bitcoin, we're talking about cryptocurrencies. We're talking about the decentralized revolution and how you can participate in the biggest opportunity you've ever seen in your lifetime. And so um, we're talking about securing your bitcoin and now in your cryptocurrencies. And like I said, you could use multiple hardware wallets and that kind of um heart
mentalize it or or diversifies it. Right. So let's say that I had a hundred thousand dollars worth of of of cryptocurrency, I could put ten thousand dollars onto ten different hardware wallets and that way, if one got broken or lost or stolen or or hacked or whatever, I'm only gonna lose ten percent. That that might be one way to do it. UM and I and I do that. I think I think I run like six or seven right now. But that's kind of a pain in the butt. UM. It's a big drag on the other thing with the
hardware wallet is UM. You know, there's there's several manufacturers that are out there UM, and I'm definitely not accusing any of them of doing anything wrong, But what if, theoretically, maybe potentially, what if UM one of the developers inside one of the companies was malicious, and let's say that they did build in like some back door and they're gonna wait until bitcoin hits a million dollars and then they're gonna just exit scam and just pull everybody's money out.
What if that happened, Well, I may not know until we get to that point, and that would be too big of a risk for me. So another option, a better option, This is one that I'm moving too lately is something called multi signature. If you've ever watched a new movies about you know, like the nuclear codes, like the president of the admiral, they both have to put their key in at the same time, and they both
have to turn at the same time. That the multi signature set up, it takes two people to do that. And so you can set up a multi signature security set up where you have two of three signatures required or three of five are required. And so what's nice about this is it would take two out of three keys, and I could have three keys made by three different manufacturers.
And so now the chance of having that potentially malicious actor inside one of those companies is irrelevant because they would all three have to be at all three companies, and they'll have to three be accurate actively at the same time, which is you know, theoretically impossible. Um. And so that is a better way to do that. And it also gets rid of the need to have six or eight or ten different hardware wallets, which is a pain in the butt. And so UM, now the risk
is on me. Back to the point, the risk is on me to secure the bitcoin UM as opposed to relying on a bank or a solution to custody for me. So the risk is on me now, but i've I don't have the risk of them not giving it back to me for whatever reason. In my opinion, that's the bigger risk. I'm afraid that there might be some regulation or something like that where the government banned gold um, and I would rather hold it myself. In addition, well, I'm not going to go into the addition for right now,
we'll call it that. But I think since most people are used to keeping their money in the bank, I think still many people will feel comfortable keeping their bitcoin in the bank. I think there's a lot of people who still might be skeptical on cryptocurrencies because they're this magical internet money or whatever it may be. Um. But once they see that their bank offers it, like I mean, I can buy it in JP Morgan or a Bank
of America. It gives it a level of legitimacy and also makes it extremely easy because now instead of having to go get a different account and wire money and figure out how to do this, I could literally click a button and buy it directly from my bank account, which I think is going to explode, and I've taught. When I say explode, I'm talking about hundreds of millions of people coming into bitcoin. And there's even more news happening that's maybe even bigger than this, and I'm gonna
talk about that as soon as I come back. You're listening to The Mark Moss Show. Hang on