[00:00:01] Welcome to Crypto Talk Radio, the podcast for everyday investors like you. Visit us on the
[email protected] and now here's your host, Leister.
[00:00:13] Thank you for that, Bailey. And welcome everybody out there in Crypto Talk radio
[email protected] slow cryptocurrency, information and assassination. All sorts of chaos ensues.
[00:00:27] If you're new, welcome to the show.
[00:00:30] I am going to be focusing on 101 for today's episode. There wasn't too much in the news spectrum I thought worth your time. There are things, but they're not. I didn't see anything significant or tremendous. So I figured it's a great opportunity to do a straight up 101.
[00:00:48] I did commit to doing more of that and that's what I'm going to do.
[00:00:53] So the big picture, I think overall I'm gonna maintain what I said in an earlier episode. You may have not have caught this if you're new, but I advocated rare metals.
[00:01:06] At the time I advocated rare metals, gold was hovering about 3,500 bucks. It just hit 3,700 bucks. Not recently, hopefully. You're listening to Leister CryptoDoctor FM when he gives you these because some of these are obvious. You know, the rare metal market is heating up mostly because of uncertainty with the economy, US Economy.
[00:01:27] There's an expectation of a rate cut. We don't know if it's actually going to happen, but the odds are strong that we'll get a cut.
[00:01:34] They're saying 25 basis points, possibly up to 50. People are hoping for 50.
[00:01:39] Obviously that weakens the dollar, but it may strengthen the economy, at least in the short term.
[00:01:44] Let's go ahead and jump right into this and see what we can come up with on some of the numbers and then we'll take it from there.
[00:01:56] We're going to skip the chart. The reason I'm skipping the chart is because there's very little difference from last week's chart. As in, both Ethereum and Bitcoin are in a middling position, likely in anticipation of what's going to happen with the rate cuts that are expected.
[00:02:11] As mentioned, some people expect a rate cut of at least 25 basis points, possibly up to 50 basis points. And I think the market overall is waiting to see what's going to happen because although it does weaken the dollar in the short term, I think there's long term benefit in having a rate cut. Many have talked about it and long overdue. And I do think that we do want to spur additional lending and borrowing and buying because I think the economy's prime for it and I suspect that we'll start seeing some pumps by looking at a theorem. As an example.
[00:02:45] Ethereum looks like it wants to go much higher than the all time high. It did breach the all time high. Got to I think high $4,900.
[00:02:53] So it does want to go past the 5,000 mark. And then of course there's going to be some plateauing happening. Bitcoin's still in that middle position of between 100 grand and 120 grand. It has not been able to break that. And we expect that a rate cut will help contribute to some positive movement. There's no guarantee of it, but everybody seems to be waiting in the wings for that to happen. The Clarity act is in trouble. People expect that it's not going to pass. The Democrats then released their own framework and it's clear what they're trying to do. This is what's referred to as a Trojan horse. I'll talk about what the Democrats bill is going to do, but the bottom line is that they're trying to lock down what Trump's doing. World Liberty Financial. That's basically what they're trying to do in order to sell people on this, their framework. What they did is they tossed some really good things in there to try to entice buying into theirs as opposed to everybody. So one of them is to say the CFTC which is in charge of commodities trading, they would have full jurisdiction over all spot markets for cryptocurrencies. Anything that doesn't qualify as a security basically would fall under CFTC's purview. Bottom line, clear, easy, no questions asked, which that would spike the market by far and away. It also basically said that classification was going to be clarified. So we're going to clarify and modernize securities rules. We've always wanted that. They were going to talk about how exchange regulations are going to be clarified and strengthen illicit financial standards, talk about tokenized securities.
[00:04:30] But all around that they were talking about abusing quote, digital financial projects. So this goes to Trump and World Liberty Financial.
[00:04:40] It's obvious what they're trying to do separately. Then there's the continuing resolution CR which Thomas Massey's talked about. It's just kicking the can down the road. So we're still going to have debt of accumulate and get worse. We haven't solved that problem.
[00:04:55] And so you got this battle, Democrats and Republicans alike in Congress where they're not going to be resolving it in the short term. So I said, you know, at least for 2025, it's going to be rough waters. And I didn't know what was going to happen with the Clarity act, but it looks like it's going to be attacked is the best I can piece it. I don't see that it's going to get anywhere in the short term. And so I. It means, though, that a lot of the progress that we've made over the past couple months might be undone simply because these people can't make up their minds and because they want to go after Donald Trump, basically, is what that is.
[00:05:35] A couple of brief mentions and then we'll get into our one on one. First of all, I want to clarify something because it seems like there's some people that. Because there may be people that signed on to the show from Block Dag's community.
[00:05:47] And I'm going to say, because it's obvious some people don't understand how we work. Okay, I'm a certified cryptocurrency auditor. I audit readiness.
[00:05:57] I don't go deep into the technicals because I don't need to. I audit readiness. Is your product ready for the mainstream? This isn't about whether you think it looks good.
[00:06:07] If it's not ready, it's not ready. There are countless examples over time of projects that have been very similar to what this does, and they failed or are failing.
[00:06:19] Devi has been out there for, I believe, seven years now, has not had anything to show for it. Okay.
[00:06:26] PI Network launched Pumped and crapped. Internet Computer launched Pumped and crapped. Doge Chain launched Pumped and crapped. Terrarium launched, Pumped and crapped.
[00:06:40] We have precedent for projects that have done something similar that have pumped and cracked. That's where the analysis comes from.
[00:06:48] We've seen projects do it.
[00:06:51] These guys are no different. If anything, they're worse because their marketing sucks.
[00:06:55] At least with something like Terrarium, they had cleaner marketing even though they didn't know what they were doing. But their marketing was certainly cleaner than what I see a block day.
[00:07:05] And so what I'm going to say is I've always. I'm online because I want to help people. The podcast replicates everywhere, okay? My search results show up even when I didn't expect it. I was doing a search the other day on something and my search results were like three of the hits. It was like, yeah, that's freaking cool.
[00:07:25] But I'm online to help people.
[00:07:29] I don't. I'm not here chasing views. I'm not here chasing subscribers. If people Sign on to the podcast. They do. If people subscribe on YouTube, they do. If people subscribe on Bitchute, they do. If people subscribe. I think the other one's Rumble. They do.
[00:07:45] If they do, they do. If they don't, they don't. I don't. I'm not a YouTuber. Right. I don't care to shill and pitch.
[00:07:54] I'm here because I want to help people.
[00:07:57] I'm a very conservative in that regard person. I'm not going to show your project. There's nothing you can teach me about your project. Because the things I observe, or what a layman would observe. Your website needs to be up to date. It needs to be current, it needs to be correct. It should not be a bunch of marketing crap.
[00:08:17] That's. It's simple. That's. That's how I do it. I look at it as a newbie doesn't know what they're doing. They just got online, somebody told them about this crypto thing and they're just trying to search around and see what's going on. If you overwhelm them with a bunch of bullshit messaging, you're not going to appeal to those people and shill and hype is not the right answer. So I am not going to support that. I'm not going to back that. I'm not going to welcome that. It's not the right answer. I don't care who says what or what you believe.
[00:08:47] I will not support it.
[00:08:49] What I will do for people that are serious about it. Okay, let's talk about it. And I'm happy to contribute my knowledge and experience as a certified cryptocurrency auditor, make recommendations, take them or leave them or you don't have to. You can just completely ignore me and that's perfectly fine.
[00:09:10] What I'm not going to do is I'm not going to coddle people, I'm not going to lie to people and I'm not going to accept for certain of these people who have said, well, come and learn with us, there is nothing to learn. If it's not on their site, I'm going to ding them for it. It doesn't matter if they set it in telescam, I don't care. It doesn't matter if they set it in discord, I don't care. It needs to be on the site. Like a layman person will be searching around and just seeing this information.
[00:09:40] They need to course correct and get the site up to date because that's how normal businesses works. Normal businesses take the time to make sure information is readily available, not have a bunch of astronauts. And that's not how real businesses work. That's what I call out.
[00:09:59] So while I appreciate some in the community who have come and they've said. And I had one who did, they were initially highly critical of the project. And then they took. Took a circle back and they said, okay, we're seeing a couple things that give us some pause, like how I'm coming at it. And they gave us a shout out on theirs and they said, obviously crypto talk radio. They said I was optimistic. I'm not optimistic. I'm realistic. I'm on the middle.
[00:10:24] There's nothing that proves scam. There's also nothing that proves legit. It's in the middle. I'm waiting for proof of one of the two. That's why I'm calling them out critical.
[00:10:32] But that's the kind of analysis I want, is that you're straight line, unbiased and you acknowledge they have misled you, they have lied to you, they have been bullshit in the marketing. The marketing sucks. I just want the truth. You can say you don't care, that's fine. Okay. Miners are shipped. We. We believe that the X10 is not really a miner. Okay, so then if it's not, what is it? And why must it be a thing? Somebody else commented and said it's nothing more than they could have done an app for this. They didn't need to do the physical. They were just trying to tell the story. There's this many miners in the wild. Maybe we don't know at this point.
[00:11:09] Ultimately, there's so much smoke around the project that I think it's worth criticizing until the smoke clears. And until it clears, I will continue to do that because it's my show, I can do that.
[00:11:21] Others who don't like to hear that because they're in the bubble and their marks are free to be marks, go somewhere else. Don't come to my show. If all you want to do is rah rah and cheer and ignore these negatives, you shouldn't be on the show. Because my show is unbiased in that regard. I'm neutral in that. People have proven no, he's straight line on this because there's times I praise and times I criticize. There is no. There is no lean bias.
[00:11:52] My strong bias, I'll say strong bias is I need to see you act like a business. That's all. They've not done that to my satisfaction, full satisfaction yet. Until they get There I'll still be critical until I see a product, I'll still be critical because that's what we're supposed to be, because the critical people help initiate change.
[00:12:15] So you should want that. You should want it to succeed strongly, not just be another PI network where it was called a scam even after it launched because they locked up funds. That's what I'm trying to help you avoid, folks. That's all.
[00:12:27] It's up to you. Whether you accept that or adopt that or embrace that, it's not going to change what it is. I'm going to continue to do that because it's my show. You are free to not patronize my show. I encourage that freedom.
[00:12:42] Now, let's talk our one on one.
[00:12:44] And I was inspired on this one because I real it occurred to me that some people don't really understand how it works. We hear the term, but they don't really understand the game that's happening with this business. And that is around shorting, specifically around cryptocurrency, but it applies to stocks. But we're going to talk about cryptocurrency in our example around shorting and what shorting is. You know, you're on an exchange and you hear this right, you want to short some crypto. What exactly is going on under the hood?
[00:13:17] Shorting is a form of gamesmanship in the simplest term. The way it works is there's a set of cryptocurrency that somebody has made available.
[00:13:29] And by made available, I mean, hey, if you want to play the market with this, I'm making it available to you in exchange. The exchange is giving that person some compensation. It's no different than if you didn't know this your bank. If you deposit money into your bank, the bank is using your funds to do other things. They're doing your funds, using your funds for investments, using your funds for loans, using your funds for bonds. They use your money for other things. And in exchange they give you interest on your deposited assets. The certificate of deposit gives you higher rates than a savings account. Why? Because the certificate of deposit does not let you access those funds for that span of time that the CD is good for.
[00:14:17] On the exchanges. A same the similar thing is happening the there are people who have certain crypto assets, say Ethereum, Bitcoin, Avalanche, whatever, xrp, it doesn't matter. And they're making it available. USDT is one common one, but they're making it available for people to do these transactions with. One of those is called shorting. If you were to get in on this, Right. And you're curious about how it benefits you.
[00:14:44] Here's how it works. You would set up an account with the exchange and you would, as part of this account, you would deposit some assets that's usually USDT or some other asset that you would have as some sort of collateral to support what it is that you're trying to do. Not every exchange requires significant collateral, but the vast majority do. But you would deposit some sort of collateral. You can't do it for free. You have to have some sort of backing collateral. The collateral is to ensure that the person who made the assets available is made whole, no matter what. Okay.
[00:15:17] That you'll get what I'm talking about in a second. But let's say you want to jump in on this. So you say, all right, I want to short bitcoin because I think. And the reason you do it is I think bitcoin is going to go down. I don't think that bitcoin is going to go up. Right now it's like 116, 116 grand. I think it's going to go down to 110 grand. I think it's going to drop and then eventually to recover. But for right now, I. I think it's going to go down to 110 grand from 116 grand.
[00:15:46] You ought to benefit from the price decrease.
[00:15:50] So you want to take advantage of the fact that the price dropped and so you would short it. You're expecting price to go down. And as a part of that expectation, you want to do a transaction that lets you leverage the price decrease. You're asking yourself, how can I make money if the price is going down? Simple. The fact that the price went down prevents you. It presents you rather an opportunity to get in before that happens and then benefit after it's resolved. Here's how it works. Somebody has made available enough bitcoin for you to short. So let's say you had enough, and you probably don't, but let's say you had enough to equate to about one bitcoin, right?
[00:16:35] And you want to short this.
[00:16:37] So somebody's making that bitcoin available. So your assets are not even put up. Yours are just collateral. You still have them, but they're locked up. Somebody offers you one bitcoin, you're not doing this directly. The exchange is brokering this on your behalf, but they're making one bitcoin available for you because you said, I think I can get this sold and make some money off of it and in exchange, I'm going to put some money back in. So let's say you were able to get to this point of 1:16 to 1:10, right? So 6,000 bucks straight off slice. So 6,000 bucks. And you say, okay, I'll give you $1,000. Just let me take your bitcoin and I'm going to make 6,000 bucks off the trade. How do you make that? Well, you take that borrowed bitcoin, right, and you sell it at the current price. So again, let's take 116 grand.
[00:17:28] You sell that at 116 grand. So now that bitcoin has been sold and it's somebody else's bitcoin, but you sold it for 116 grand.
[00:17:38] You still have to make that person whole because you borrowed that bitcoin.
[00:17:44] So because you're essentially gambling that the price is going to go down to 110.
[00:17:49] And let's say 110 is your target. It's an arbitrary target. Let's say it's your target.
[00:17:54] You wait, right? So you sold 116 because that's what was open. That's what somebody wanted basically to pay for it.
[00:18:01] Price goes down, right? And it goes down 115, 114, 113. Goes down, goes down, goes down. It hits 110. You're like, cool. You buy. Now you took the money that you profited off the 116.
[00:18:17] You take 110 of that and you buy one bitcoin, right?
[00:18:21] You give that person back their bitcoin. So here's your bitcoin.
[00:18:25] You now pocket that profit which was what, six grand?
[00:18:31] You're like, huh? That's what it is. You took and you sold. So you upfront sold at the higher price and then you. So it's gone. And then you buy back at the lower price.
[00:18:45] That's a, that's a profit, right, of six grand in that example. That's a profit of six grand.
[00:18:51] A portion of that goes to the person who let let lent you the bitcoin because obviously there has to be something in it for them. So there's a portion that's shared and the exchange handles this. There's a portion that goes to the person who lent you the, the bitcoin, and there's a portion that goes to the exchange for the benefit of being able to do that trade. So you're not going to walk away necessarily for six grand.
[00:19:13] It's gonna be a little bit less, but it's still depending on how much. So let's say it's, you know, avalanche at 30 bucks and you did a hundred of them. It's the same concept. It's, it's all about scale. You can take single crypto, that significant price and do it, or you can take small priced crypto, small cap crypto, and take multiple of them and do it. It doesn't really matter. I would argue that it's easier to pull it off when you're using large volumes versus single simply because when you look at the order books, a lot of times the small caps are the ones that have the highest traffic volume.
[00:19:52] But bitcoin, still, because of its popularity, you absolutely can pull it off. It's simply unrealistic or unlikely that you're going to have enough collateral to support a single bitcoin transaction. So you're working in satoshis, right?
[00:20:06] So the point is that the way that it works is you're taking and doing the buy up front at the higher price, expecting it to go down.
[00:20:16] And because it goes down to a point, your target, you're able to pocket profit when you buy it back.
[00:20:24] Now, the profit essentially was front run. You already had the profit up front, you already got the money up front. It just doesn't feel like it because you're buying it market or spot.
[00:20:35] But it's still profit because it's one to one, it's one that I sold and then I buy it right back. This is another. You can do this as a DCA as well. You don't have to do it as a straight short through exchanges. You can DCA and do the same thing, right? Okay, I'm gonna sell now, so sell my profits so it hit the peak, right? I'm a sell for profits, wait for it to dip and buy back in at a lower price point.
[00:20:59] Now if I took that same money that I used to benefit up front when it peaked, there's a profit in that one. The difference in that is it's your own money, it's your asset. As opposed to a borrowed asset where you didn't have to put any money up up front, but you're still getting money up front.
[00:21:19] When it's a borrowed asset, it's somebody else's crypto. The downside is because it's somebody else's crypto, there has to be a point where that person is made whole.
[00:21:29] So the exchange has to insulate risk. They have to make sure that that person's not going to get ripped. And so they'll set a threshold, a liquidation threshold, where they'll say it's got if it goes up, right. So you just pocketed 116 grand. You're banking, it goes down. But if it goes up, you're going at a loss, necessary loss. But if it goes too far, your assets get liquidated because that person has to be made whole. It's there. It's not your money, it's not your crypto. So you got to make them whole some way. And the exchange enforces that by liquidation activities.
[00:22:07] Is shorting a strong, smart strategy? Absolutely. But you have to be very careful. And this, this isn't just crypto, this is even stocks. You got to be careful because there's a strong risk that you lose all your money if you don't do it right. And you're not cautious and careful about when you do it and how much you do it and why you do it. You have to be very mindful of your situation if you're going to do it. And make sure that you don't over leverage yourself and make sure you don't borrow too much. Right. And make sure that it's assets that you can afford to lose. Because it's a very risky game.
[00:22:38] You can read charts all you care to, but sentiment is an mfer. A lot of the crash that we saw with the FTX was part of that because you know, things are going up and up and up and up and up and nobody anticipated this major event was going on under the hood.
[00:22:51] So that's shorting. Hopefully it makes sense. You buy, you, you're taking, borrowing, not buying, you're borrowing something up front, you're selling it at the market rate in anticipation that something's going to go down. You target how far down it's going to go. And the difference when you sell that asset versus when you buy it back is raw profit. There's of course, you know, part that goes to the person that let you borrow it, part that goes to the exchange. So you walk away with a net amount, but you still walk away with good profit. And if you're good at it, you can make some really good money on those trades. Certainly much more profit potential than straight spot trading by far and away in closing and wrap up. So I said I'm like on casual that you know, September was a rough month for people and today I wanted to do a little one on one because it's a little quiet on crypto side but crypto regulations up in the air, I sense, I sense some damage. That's what that feels like. I could get that wrong, but I sense some damage. I sense some pain.
[00:23:50] So I'm gonna hold what I said at the beginning of the show. If you're not in rare metals as part of a diverse portfolio, I highly recommend it. I strongly recommend looking into it. If you're curious about rare metal information, send us a note CryptoTalk FM. Hit the comment form, contact it's a link at the top.
[00:24:08] Or comment on one of our platforms where this distributes and we'll happily answer basic questions about what that means with no, you know, we don't make any revenue off of it. We're sharing it because we think it's a good idea. We think rare metals is a great addition to a diverse portfolio. So we strongly recommend looking into it and considering it, especially now with some of the uncertainty, at least that I'm sensing forthcoming coming from the the feds, Congress and what they're doing, the political violence spectrum, the war still going on, tariffs, there's a lot of uncertainty. And for me, I sense that there's a storm coming where hedging and insulating some of those assets is going to be a good bet for anybody who's smart.
[00:25:01] Sam.
