Show Notes
Basic Cryptonomics 101: Why “#Bullish” Is Not Just About Buying
#Crypto #Cryptocurrency #podcast #BasicCryptonomics
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Episode Transcript
[00:00:01] Speaker A: Welcome to Crypto Talk radio, the podcast for everyday investors like you. Visit us on the [email protected]. dot and now here's your host, Leister.
[00:00:13] Speaker B: Thank you for that, Bailey. And welcome, everybody out there in crypto Talk radio. [email protected] Dot ooh, another day, another dollar.
[00:00:21] Speaker C: I'm tired.
[00:00:22] Speaker D: I'm really tired. I didn't get a lot of sleep.
[00:00:23] Speaker C: Last night, unfortunately, and I've been feeling a little bit under the weather today.
[00:00:27] Speaker B: I was, I was torture sitting in one of those meetings and falling asleep.
[00:00:32] Speaker D: Because the person, you know, they don't know how to present and they're dull and boring.
[00:00:36] Speaker B: But another day, another dollar, we, we continue the grind, we move on, we move forward. And I am going to be covering.
[00:00:44] Speaker C: A couple of different points.
[00:00:45] Speaker D: I'm not going to spend a lot of time on today's episode, I don't think, but I figured I'm going to continue because I think it's important, especially now with our one on ones for cryptocurrency.
[00:00:56] Speaker C: And by the way, if you are.
[00:00:58] Speaker B: Interested in more 101s, you do need.
[00:01:00] Speaker D: To let us know at Cryptotalk FM.
[00:01:02] Speaker C: Fill out the contact form and do.
[00:01:04] Speaker D: Let us know that feedback. But also you can join our discord, cryptotalkradio.net discord. If you want to ask for a.
[00:01:11] Speaker C: Specific coverage, we are open to that, long as it's not garbage.
[00:01:15] Speaker D: You know, we don't cover straight up garbage, but we are open to any sort of coverage that you'd like to talk about, some sort of anything, you know, something you want to learn about, something you're curious about, wondering about. Today's episode is going to dig into one of those topics that was presented.
[00:01:29] Speaker C: To us that I thought was a.
[00:01:30] Speaker D: Good opportunity to share because maybe it is a little bit new.
[00:01:33] Speaker C: Welcome.
[00:01:34] Speaker D: It might be a little bit mystery to you.
[00:01:36] Speaker B: So we're going to talk about that in depth there.
You know, I don't, I think I've said multiple times now, you know, I don't follow cryptocurrency nowhere, anywhere near as close as anybody else. I really don't. It's just, it's just there.
[00:01:52] Speaker C: If it goes, it goes. It's just there. I'm not staring at it. I'm not following it.
[00:01:57] Speaker B: It's boring. It's actually boring. I think it's good when it's boring. I know some people don't like that. You know, I was watching, though a.
[00:02:06] Speaker C: Stream, and Da Vinci was on the.
[00:02:09] Speaker B: Stream and he made a statement. And I thought it was really good. And I want to share that statement with you guys as well because I share the sentiment, the thought process, and maybe that's it really is that simple.
If you think about cryptocurrency trading, at.
[00:02:22] Speaker C: The end of the day, there are.
[00:02:23] Speaker B: Buys and there are sells.
[00:02:24] Speaker C: Okay? Somebody needs to buy or wants to buy.
[00:02:28] Speaker B: Somebody is going to want to sell.
[00:02:31] Speaker C: The reasons for selling are all over the board. The reasons for buying all over the board. The amount to buy is all over the board.
[00:02:36] Speaker B: And then how much is available? How much is available for sale is all over the board.
[00:02:42] Speaker C: And he made the statement.
[00:02:44] Speaker B: You know, ultimately, the way that they get the best prices is by you selling.
[00:02:49] Speaker C: So they are often working to try.
[00:02:51] Speaker B: To encourage you to sell without you even realizing it.
[00:02:55] Speaker C: This is referred to as manipulation of a sort.
[00:02:57] Speaker B: The idea that we're pushing the price down, which triggers some of you to fomo sell. Anyone listening to me on the show has heard me say reacting doesn't do you any good. You know, because you're selling at a loss doesn't make any sense, especially if it's one that you believe in and it's going to go back up. It's just a matter of time. That said, though, sometimes you have an emergency come up, or you got to.
[00:03:19] Speaker C: Pay some bills, or you lost your.
[00:03:20] Speaker B: Job, or there's some motivating reason why.
[00:03:22] Speaker C: You'Re selling, and you should not hesitate.
[00:03:24] Speaker B: To sell under those conditions.
But it is true.
Think about if you're considering selling simply because you see red, consider what that means. It means that you're giving somebody else a discount. You might not believe in the project anymore. If that's your reason, go have at it. But if you're only selling because you.
[00:03:46] Speaker C: See red and you're concerned, consider again.
[00:03:50] Speaker B: Somebody is going to scoop it up at that price and that won't be used. So if it runs up again, you're missing out on major profit opportunity.
[00:03:57] Speaker C: Notice I haven't spoken about any specific project because it doesn't really matter.
[00:04:01] Speaker B: The projects that you have your eye on, the same mantra applies to each and every one of them.
[00:04:05] Speaker C: If you choose to sell because it's red, you are doing yourself a disservice.
[00:04:09] Speaker B: As opposed?
[00:04:10] Speaker C: Opposed to considering. I am going to hold on to.
[00:04:13] Speaker B: It through the tumultuous periods I'm going to keep it regardless of if it goes red green. And as I said, right now, a DCA strategy seems to make best sense. And I talked about that on the past episode. So whichever way you go is whichever way you go.
[00:04:30] Speaker C: But I think it's intriguing the idea.
[00:04:31] Speaker B: To think about it in terms of if I sell it now, somebody else is going to scoop it up at this price. It's a discount for them.
[00:04:40] Speaker C: If I'm only selling because I see.
[00:04:42] Speaker B: Red, reconsider that thought.
[00:04:44] Speaker C: Why, why is that? Why is that your reaction?
[00:04:47] Speaker B: Why is that your first reaction? Because all of these services, all these graphing services and charting services, all these news article sites, they're doing that to.
[00:04:56] Speaker C: Trigger you to sell, because they're the very ones that are encouraging you to.
[00:04:59] Speaker B: Dump off your stuff so they can get a discount off your back and.
[00:05:03] Speaker C: Take over your tokens.
[00:05:04] Speaker B: That's how the cycle works.
[00:05:06] Speaker C: If you fall into the trap, you.
[00:05:07] Speaker B: Fall into the trap.
We're going to talk a little bit more about this paradigm and hopefully it'll help some of you that have been kind of on the fence about your trades, because I want more confidence out of everybody. I think it'll help everybody.
[00:05:21] Speaker C: Long run.
Coindesk.com we're going to zoom out to the month chart.
[00:05:30] Speaker B: We're going to start with Ethereum.
[00:05:32] Speaker C: I debated starting with bitcoin because bitcoin.
[00:05:34] Speaker B: Is more of a victory lap for me. But I thought, you know, it's, it's.
[00:05:37] Speaker C: Really upsetting seeing Ethereum just not run nowhere close to its all time high.
[00:05:42] Speaker B: Refuses to get any significant sustained run and keeps going back down.
[00:05:47] Speaker C: A low of 2400, a high of.
[00:05:49] Speaker B: 26, five hovering around the 2400 mark.
[00:05:52] Speaker C: That's a strong downward trend.
[00:05:53] Speaker B: As I recorded bitcoin then, which is the big one that everybody's frustrated with, a low of 60,000, a high of 64,000.
Just, I mean, literally, what, 12 hours ago it was like 65,000. Then just before that was 66,000. And people thought we were on our way back up. And then bitcoin went, did this nose dive. Now, people that listened to my last episode, they heard me say, I think it's going back down.
And some people thought I was crazy. Some people say, I know what I was talking about. Some people thought was absolute balls out nuts.
[00:06:29] Speaker C: You're an idiot. You don't belong in the business.
[00:06:32] Speaker B: You don't know what you're talking about. Those same people are nowhere to be seen.
It's not that I'm clairvoyant or any of these. You can look at sentiment, you can look at the pattern of graph, you.
[00:06:43] Speaker C: Can look at volume, you can look.
[00:06:44] Speaker B: At all these numbers and you can.
[00:06:45] Speaker C: Come up with a theory.
[00:06:47] Speaker B: And in my case it was that we were going down. Well, we went down.
Do I think we stay down?
[00:06:53] Speaker C: Maybe. Do I think we go down to the 50,000 that I was targeting before?
[00:06:58] Speaker B: Probably not that low, but it's possible. I just don't think so.
I think what we have here is as we got a run up, we had some people that said okay, it's time for me to get out, I'll get back in a different point and I'll wait for another run. If I'm right, which I can't say I am, but if I am means we would go down a little bit more, down into the high 50,000 ish range before running up again.
Do we exceed the 65? I'd say yeah, if we run up again, I would say yes, that's a good strong bet that we do. And then of course all the other.
[00:07:33] Speaker C: Tokens would go on a run.
[00:07:35] Speaker B: Now the reason I started with Ethereum.
[00:07:38] Speaker C: Many of the other tokens that are.
[00:07:40] Speaker B: Set, you know, your pepes of the world and those types of tokens, full.
[00:07:43] Speaker C: Coins, theyre all paired to Ethereum.
[00:07:47] Speaker B: When Ethereum did have a run up recently, all the other tokens started running up.
[00:07:52] Speaker C: And I saw some surges on some.
[00:07:54] Speaker B: Of these projects that told me, geez, Ethereum is nothing, its nothing like its.
[00:08:01] Speaker C: Less than half of its all time.
[00:08:02] Speaker B: High at this point.
[00:08:04] Speaker C: And yet it goes up just a couple hundred bucks.
[00:08:07] Speaker B: And I saw projects that spiked from, you know, literally doubled with just a couple hundred dollars on Ethereum. You, you think about it, it's like if this freaking Ethereum could just go to its all time high, if just a couple of $100 can double a project, you think a ten, that's literally.
[00:08:27] Speaker C: Ten x off a couple hundred.
[00:08:29] Speaker B: So ten x or $2,000, you know, $2500, whatever.
[00:08:34] Speaker C: Geez, you imagine how much freaking money.
[00:08:36] Speaker B: Is going to flow into some of these volts when and if a theorem decides to run. And by the way, idiot vitally did do another dump on your head as that we knew he was going to do.
[00:08:46] Speaker C: It was a small dump, it was.
[00:08:47] Speaker B: Only 100 e. But the point is.
[00:08:49] Speaker C: As I told you, and give my credit because I told you, he keeps.
[00:08:52] Speaker B: Dumping on your head. But Ethereum is consistently suppressed. It simply does not want to run.
[00:08:57] Speaker C: And it's mysterious. If you have the opportunity to get.
[00:09:00] Speaker B: Into Ethereum and Ethereum based projects, now is the time you have had an extended period of time for you to get into the Ethereum chain and other projects. I understand some of these developers have.
[00:09:12] Speaker C: Convinced you that Solana is the future.
[00:09:14] Speaker B: I can't say that Solana is the future. I can say that the Ethereum projects.
[00:09:19] Speaker C: Have the vast majority of wealth right.
[00:09:21] Speaker B: Now, with the exception of like one or two. But geez, Pepe, still running the roots, you know. So I still say Ethereum has the.
[00:09:28] Speaker C: Lion'S share of where money is going.
[00:09:30] Speaker B: To flow back in, and it's a.
[00:09:32] Speaker C: Matter of time, and many of these.
[00:09:33] Speaker B: Are going to run up. If you can get a decent enough.
[00:09:36] Speaker C: Bag, these are going to run up, and it's going to be a shocking amount of money flowing into those things if a theorem can get past this hump that it's currently fighting.
[00:09:45] Speaker B: So, I don't know. But I do think that bitcoin should go back up after it dips a little bit more.
[00:09:51] Speaker C: Should go back up.
[00:09:52] Speaker B: I don't know how long it'll take, though.
[00:09:53] Speaker C: Seems like it started to plateau.
[00:09:55] Speaker B: So hopefully I'm right on the cusp.
[00:09:57] Speaker C: And by time tomorrow, this time tomorrow.
[00:09:59] Speaker B: We'Ll see that it ran back up.
[00:10:00] Speaker C: To at least $62,000.
[00:10:03] Speaker B: People that listen to me for a while have heard me criticize the, you know, the scam that is world coin. I said that it's a scam, not.
[00:10:11] Speaker C: Because of the way they developed it.
[00:10:12] Speaker B: That's not what I meant.
[00:10:13] Speaker C: I meant this idea of scanning your.
[00:10:15] Speaker B: Eyeballs and giving away your private information is the worst thing you could potentially do. And then giving away tokens devalues your product. I mean, everything I had, everything is distasteful to me. I don't like it.
[00:10:29] Speaker C: Well, South Korea apparently agrees with Lyster.
[00:10:32] Speaker B: Here, crypto talk fm, because they just levied a six, $860,000 US, by the way, fine on world coin for compliance issues around protecting the information. The very information that I talked about that they should not be collecting, I had concerns about. And I saw some of the young people who said, I don't see a big deal, whatever. Your privacy is already violated. Like, these are people that really should be taken over a knee and spanked or something.
But South Korea's cracking down.
[00:10:59] Speaker C: They want to find these jokers because.
[00:11:01] Speaker B: They are not protecting that information that.
[00:11:02] Speaker C: They'Ve been collecting from our young folks. And as a result, they violated their personal information Protection act.
The specific violation is that, and this.
[00:11:12] Speaker B: Has been talked about before with other countries, allegedly, Worldcoin has not been disclosing to the people they've collected all this.
[00:11:19] Speaker C: Information from about the use of the.
[00:11:21] Speaker B: Information, the protection of the information, how it's going to be stored, who's going to be disposed to? They just have collected, collect, and then they give you these garbage tokens and.
[00:11:30] Speaker C: Then people dump off the project.
[00:11:31] Speaker B: So that's, that's got them all kind of pissed off to where they're saying.
[00:11:35] Speaker C: This isn't going to work. And from that same act or law.
[00:11:40] Speaker B: That they have, one of the segments.
[00:11:42] Speaker C: Says, quote, in order for personal information.
[00:11:44] Speaker B: To be safely protected and utilized, awareness and compliance with the obligations and responsibilities of processors, aka business owners under the.
[00:11:53] Speaker C: Protection laws are more strongly required than ever.
[00:11:56] Speaker B: So in other words, when we have personal information that we collect, we need to make sure it's safe, we need to make sure to protect it, we.
[00:12:04] Speaker C: Need to make sure it's safely used.
[00:12:07] Speaker B: We need to make sure that there's.
[00:12:08] Speaker C: Awareness about its use.
[00:12:10] Speaker B: We need to make sure that the.
[00:12:11] Speaker C: Companies are in constant compliance. All of this together is what that's basically saying. And they're saying Worldcoin didn't do it. We know they didn't do it because they didn't feel like they needed to because they thought they were above the.
Meanwhile, on the other side of the pond in the United States, the state of Ohio has recently.
[00:12:26] Speaker B: One of the senators, I shouldn't say.
[00:12:27] Speaker C: The state, one of the senators of the state has recently introduced a bill to legalize bitcoin and cryptocurrency payments for taxes and fees.
[00:12:35] Speaker B: It would also allow public pensions and.
[00:12:38] Speaker C: State universities to invest in cryptocurrencies.
[00:12:41] Speaker B: Of course, the embracing of cryptocurrency for.
[00:12:44] Speaker C: State government investments such as public pensions.
[00:12:47] Speaker B: Which I think is a good use case, has been gaining traction. Certain states have already gotten on board, I believe two so far right now, as opposed to some of these other ones that are just anti crypto, like frickin California. But this bill permits the use of.
[00:13:03] Speaker C: Digital assets, including bitcoin, to fulfill your state and local tax obligations. Quote, cryptocurrency is not just the future, but it's the present of our 21st century economy. We must encourage innovation and free enterprise.
[00:13:16] Speaker B: In Ohio, quote, the state border deposit should have acted.
[00:13:21] Speaker C: Since they haven't, we will.
[00:13:23] Speaker B: You should think this a good thing.
I know some are kind of, you're, you know, you don't trust your governments.
[00:13:31] Speaker C: You shouldn't, but you don't, right.
[00:13:33] Speaker B: I'm saying that from a state perspective, this is a good thing. We actually want the states to create.
[00:13:40] Speaker C: Their own laws around cryptocurrency. We don't want the feds to get.
[00:13:45] Speaker B: All in the mud with it because they're just going to screw it up.
[00:13:48] Speaker C: We know what it is.
[00:13:49] Speaker B: They're going to add all sorts of red tape. They're going to tell the IR's to.
[00:13:52] Speaker C: All screw you up down Sunday.
[00:13:54] Speaker B: We want that. I think we should want the states to embrace it, create their own framework for its residents, for its use and enable it.
[00:14:02] Speaker C: That's where the Robin hoods the world.
[00:14:05] Speaker B: There used to be a time when.
[00:14:06] Speaker C: Robinhood refused to allow you to trade.
[00:14:08] Speaker B: Shib if you were in New York, that was a state specific restriction. They lightened it up since, say, with Nevada.
I think states need to take a step forward.
[00:14:19] Speaker C: Not rely on the Gary Gensler, not rely on the feds.
[00:14:22] Speaker B: You might be like, well, can't, then the feds still come after you if it's a security.
That's an interesting case, isn't it? Because weed is actually illegal at a federal level, but it's legalized in many of the United States, so you can actually still get punished for having a certain amount of weed, even if it's legal in your state because it's a federal crime. Isn't that kind of jacked up?
[00:14:48] Speaker C: Cryptocurrency would likely be the same thing.
[00:14:50] Speaker B: I suspect it will be the same thing unless Donald Trump goes back in office. Because Donald Trump, he's already shown a pattern of letting the states lead. He did that with abortion.
[00:15:01] Speaker C: He said, really, it should be the states.
[00:15:02] Speaker B: You should be up to the states.
[00:15:03] Speaker C: So it's likely he'll do the same thing with cryptocurrency.
[00:15:06] Speaker B: It should be up to the states to do it.
[00:15:08] Speaker C: But we will support it as the government.
[00:15:10] Speaker B: We will support it by creating framework at a high level to enable its use broad, you know, like with the banking system. So I think all these states, like Wyoming, for example, now Ohio, this is good.
[00:15:23] Speaker C: And you should be very strong on this. You should be supportive of it.
[00:15:27] Speaker B: If you don't live in one of.
[00:15:28] Speaker C: These states that's embracing cryptocurrency, first of all, shame on you. But maybe you like the sun or.
[00:15:33] Speaker B: Whatever it is about your state, but.
[00:15:35] Speaker C: If your state is cracking down and.
[00:15:37] Speaker B: They just don't, don't care, and they.
[00:15:38] Speaker C: Got homeless walking the streets or shitting on the streets, as in case with.
[00:15:41] Speaker B: California, I would encourage you to be.
[00:15:44] Speaker C: At least supportive of these other states.
[00:15:46] Speaker B: That are more progressive for the right reasons.
[00:15:48] Speaker C: We're not talking progressive in terms of a rush to EV's and all this crap.
[00:15:52] Speaker B: We're talking progressive to something that benefits everybody.
[00:15:55] Speaker C: Cryptocurrency benefits everybody.
[00:15:57] Speaker B: It doesn't just benefit the elite. In fact, it, I don't want to say harms the elite, but it's a.
[00:16:03] Speaker C: Flashing red light for the elite right.
[00:16:05] Speaker B: Now because of a lack of regulation.
[00:16:08] Speaker C: Getting rid of that and simplifying it.
[00:16:10] Speaker B: And making it more transparent at the very minimum encourages the elite to get in.
[00:16:16] Speaker C: The elite getting in increases how much total market caps in it. The increase of total market cap increases the price of everything, including what you.
[00:16:24] Speaker B: Have and what you can transact. Everybody benefits. On the cryptocurrency side, the same cannot.
[00:16:30] Speaker C: Be said for EV's and all this.
[00:16:32] Speaker B: Other crap that we've been rushing to.
[00:16:33] Speaker C: So I like to see for a.
[00:16:35] Speaker B: Change that we're rushing to something that benefits everybody, not just certain singular people.
[00:16:42] Speaker C: Now let's take the tail end of today's episode and we're going to talk our 101.
[00:16:46] Speaker B: And this was inspired by a back and forth around selling. More specifically, the question came up, how is it possible that someone can want.
[00:16:58] Speaker C: To see selling or can want to.
[00:17:00] Speaker B: Short crypto yet be bullish?
[00:17:04] Speaker C: There's a myth that bullish simply means.
[00:17:06] Speaker B: We want your buying right?
[00:17:09] Speaker C: You may not realize that bullish simply means that you are positive, feeling good about whatever the direction is going to be for a given price.
That's bullish. It doesn't matter about buys or sells.
[00:17:22] Speaker B: So, for example, there was a time way back, this was back when crypto.
[00:17:28] Speaker C: Talk radio was on x Twitter.
[00:17:30] Speaker B: When it was Twitter and an ave aave.
Shorting it was making major amounts of freaking money. It just.
[00:17:39] Speaker C: You just shorted it and it was.
[00:17:41] Speaker B: Going up by hundreds of dollars. It was nuts. It didn't make any sense. But shorting it made you a lot of freaking money.
[00:17:47] Speaker C: Same with doge chain.
[00:17:49] Speaker B: At a point, shorting it made you a crap ton of money on and on.
[00:17:54] Speaker C: I saw where you just could make crazy amounts of money.
[00:17:58] Speaker B: On the short side.
[00:18:00] Speaker C: When you see something has significant profit.
[00:18:03] Speaker B: Potential, it doesn't matter if it's a positive where you're buying it, it's going to go up or it's a short.
[00:18:12] Speaker C: As in going down.
[00:18:13] Speaker B: You can short sell it, which is through an exchange, central exchange. The point is you expect to make some money off of it.
[00:18:20] Speaker C: That's the generic bottom line definition of being bullish. I like where the price is going.
[00:18:27] Speaker B: Because I see an opportunity for profit and it doesn't matter if it's up or down.
You may not have known that you could make money on the down trend of a price when something is trending.
[00:18:40] Speaker C: Sharply down, assuming it's a trustworthy project.
[00:18:42] Speaker B: I mind you, but if something's trending, sharpen down, sharply down, you can make some crazy amounts of money on how.
[00:18:49] Speaker C: Far it's likely to go. This is referred to shorts.
[00:18:53] Speaker B: So if you said, you know what, I think this guy right now its price is $500.
[00:18:59] Speaker C: I see a trend where it looks.
[00:19:00] Speaker B: Like it's going down to dollar 300 because we're wearing a very sharp bear.
[00:19:04] Speaker C: You can short cryptocurrency through a centralized exchange.
[00:19:08] Speaker B: By way of shorting, you can increase your leverage.
[00:19:12] Speaker C: Increasing your leverage is essentially borrowing from the exchange. You're borrowing tokens that people have made.
[00:19:17] Speaker B: Available for the shorting and then you return their assets to them as part of the trades.
[00:19:23] Speaker C: When you short, if you take leverage, you are significantly increasing risk.
[00:19:28] Speaker B: When you hear the term liquidating, liquidating is when people that were longed right.
[00:19:33] Speaker C: They expect it's going to go up.
[00:19:34] Speaker B: They expect it's going to, it's $1,000. They expect to go to $1,500. And so longing it right, they're expecting.
[00:19:40] Speaker C: It to hit that 1500.
[00:19:42] Speaker B: Well, what happens if it goes from 1000 to 900?
[00:19:45] Speaker C: If the bottom threshold was essentially 910?
[00:19:48] Speaker B: Those people are going to get liquidated because it went past the lowest point we can justify before the central exchange is going to liquidate the assets.
[00:19:58] Speaker C: When you wrap your head around how.
[00:19:59] Speaker B: This all works and you realize that it's essentially a casino, you're, you're gambling, you're rolling the dice, trying to see.
[00:20:06] Speaker C: Where it's going to go, and there's.
[00:20:07] Speaker B: Nothing wrong with that, but that's really what you're doing.
It means you can understand we can take what we see, terms of price movement, up or down, and still make money.
[00:20:20] Speaker C: When you master the ability to do.
[00:20:22] Speaker B: That, it gives you bullish sentiment because you're focusing on the money you can make regardless of how it's made, whether it's an up position or down position, but you accept the risk that comes along with it.
[00:20:36] Speaker C: That's bullish.
[00:20:37] Speaker B: I'm bullish on how much money I can make out. This business summary, being bullish is not just about buys, because all cryptocurrency needs buys and sells. You need those transactions. You need that volume up and down.
[00:20:51] Speaker C: It benefits the, the health of the project when you have it. You're never supposed to have something where.
[00:20:56] Speaker B: There'S nothing but buys because at some point you're going to run out of supply. If everybody's buying, at some point there's going to be a constraint. There's not going to be any more to buy for anybody.
[00:21:06] Speaker C: You don't want nothing but sells. Because if you do too much selling, it imbalances the liquidity pool.
[00:21:12] Speaker B: If the liquidity pool gets out of.
[00:21:13] Speaker C: Balance, you have too much freaking supply.
[00:21:15] Speaker B: Essentially, and not enough of whatever it's paired to, you get an imbalance position situation. And that's a problem as well. You need a healthy blend of buys and sells. When you understand the value of selling, the value of buying, and the fact that you need both, and you learn.
[00:21:34] Speaker C: How to exploit those.
[00:21:36] Speaker B: Again, this is centralized exchange I referred to. When you learn how to exploit those, your definition of bullish changes.
[00:21:43] Speaker C: It's no longer about just seeing green necessarily.
[00:21:46] Speaker B: It's around predictable price movement, whether in whatever direction, such that you can either long it if you think it's going to go up, or short it if this is going to go down and.
[00:21:56] Speaker C: You'Re making money along the way, assuming.
[00:21:59] Speaker B: You can time it, to make sure, you know, set your stop losses, set your limits to make sure that you don't lose the assets that you put in.
[00:22:07] Speaker C: Because remember, you're borrowing these.
[00:22:10] Speaker B: So it is gambling, and I want.
[00:22:11] Speaker C: To stress that's what it is.
[00:22:12] Speaker B: It's gambling. You're rolling the dice. Some people win, some people don't. The real rich mother fathers, that's what they do.
[00:22:20] Speaker C: They're doing shorts and long positions. They're not doing what you likely do.
[00:22:24] Speaker B: Which is a spot trade where you are at market rate, where you see its price there and you do a buy, right? Or you see its price here, you do a sell.
[00:22:31] Speaker C: That's not what they're doing.
[00:22:32] Speaker B: They're doing the gamble and they make big money.
[00:22:35] Speaker C: Mind you, to make the largest amount.
[00:22:38] Speaker B: Of money requires a significant investment from you, because you want to maximize the leverage position. If you put in $5,000 right, and.
[00:22:47] Speaker C: You go a ten x leverage, you can make some real good money on whatever that is. If you're confident in the price movement.
[00:22:53] Speaker B: Of what it is. This is how the big boys play. But it's extremely risky, that risk.
We benefit, all of us do, because.
[00:23:02] Speaker C: As they get liquidated, what happens? The price goes down.
[00:23:06] Speaker B: In most cases, if the price goes.
[00:23:08] Speaker C: Down, it creates a discount for you to buy in. This is why you have to train.
[00:23:13] Speaker B: Yourself to treat it as a discount and not a problem. Because it simply means that they lost.
[00:23:18] Speaker C: Their position and you want that position.
[00:23:22] Speaker B: Because you think it's going to go back up or you want to join.
[00:23:26] Speaker C: In on that decline and benefit from it.
[00:23:29] Speaker B: On the way down. You're basically chewing off some of the.
[00:23:32] Speaker C: Liquidity of this and you're pocketing it.
[00:23:34] Speaker B: As it's going down because you're contributing.
[00:23:36] Speaker C: To the sell behaviors.
[00:23:38] Speaker B: It's a fascinating market overall. There's more to talk about than one episode can ever entail. And I don't want to bore with.
[00:23:46] Speaker C: Just my voice because I'm just one voice. I encourage you to do research about.
[00:23:50] Speaker B: Shorts and longs, not just in cryptocurrency, but you can do it on the stock market as well.
[00:23:56] Speaker C: Research it and get familiar with the.
[00:23:57] Speaker B: Way it works and then realize you have that same option. It just means you have to go to a centralized exchange in order to do it correctly. But you have the same option and.
[00:24:06] Speaker C: It will change, hopefully your definition of what bullish means, because it simply means you see an opportunity to make some money.
[00:24:12] Speaker B: However that is, you have multiple ways to do it. You're going to pick one and settle on that way.
[00:24:18] Speaker C: In closing, I think with bitcoin, specifically.
[00:24:22] Speaker B: Bitcoin, we have a key opportunity, again, for discount.
[00:24:27] Speaker C: It is an opportunity to get in at a slightly cheaper price. I'm looking for it to go down. Hopefully it does.
[00:24:33] Speaker B: I doubt it will, but hopefully it does because I want to go down because I want to be able to.
[00:24:36] Speaker C: Stack on the cheapest price possible.
I would love to see another FTX level crash.
[00:24:42] Speaker B: I don't think we will.
I don't think the diddy situation is going to affect it. Like, I was looking for something large scale that would affect it. That Japan, they have a new prime minister or something and he wants to change rates. And that caused a little bit of a bearish, but it still wasn't enough for me.
I'm looking for a significant discount. Whether I get it or not, it's a different ballgame.
So right now, all I. You know, I have the same stuff.
[00:25:08] Speaker C: I've had for ages.
[00:25:10] Speaker B: I've not put any new money in crypto. I refuse.
[00:25:13] Speaker C: Not right now.
[00:25:13] Speaker B: It just. It's the wrong time because why? I could just take profits off project a, use that to buy into project b if I really want to. So I have not put any new money plus its tax period. You know, I've already got the frickin two tax authorities breathing down my neck and I'm paying.
[00:25:31] Speaker C: I pay $1,000 a month towards the bill.
[00:25:33] Speaker B: But they even put in the letter, we even got a payment plan. We still want the DD, frickin Jacko. So I got to deal with that. It's not. It's the principle. It's stupid, it's dumb. And then one of them was like.
[00:25:47] Speaker C: We'Ll take your income state income tax. Deep, deep, deep.
[00:25:50] Speaker B: And I'm like, refund, right? I'm not gonna get a refund. I owe. I'm not gonna get a refund. So I'm almost tempted to be like, we're good, but I don't want to be like Wesley Snipes either. So I'm gonna have to sit down, foot the bill on that one. Plus, I'm trying to get windows and all this other stuff with the help with the house and everything, so drag everything sorted out. So, you know, if one of the.
[00:26:14] Speaker C: Cryptocurrencies takes off, yes, it would help.
[00:26:16] Speaker B: A lot, but I'm not banking on it. I think I feels like 2024, we're not going to see anything major.
Some people are saying, you know, November, December, I think 2024 is not going to have anything ultra amazing.
[00:26:31] Speaker C: If a theorem does not get over.
[00:26:32] Speaker B: $3,000, I think we're going to be stuck in a rut till 2025. That's how I feel. I think the big. And if a theorem cannot get over $3,000, it tells me that whatever bitcoin does run to is not going to sustain. Because they normally do run lockstep, there's a pairing that should be there where.
[00:26:50] Speaker C: They should be running lock steps.
[00:26:51] Speaker B: So it feels like the bitcoin feels like those are arbitrary pumps.
[00:26:56] Speaker C: It feels like what's happening is something.
[00:26:58] Speaker B: Or someone is pushing bitcoin up to trigger a fomo buy.
[00:27:03] Speaker C: Somebody sees green candles, they buy excess.
[00:27:05] Speaker B: Normal tendency so that they can sell off. Right exit liquidity, so that it feels like. I can't say that's what it is, but I just. I'm really questioning why ethereum refuses to go up. But bitcoin's having these pumps when before they had almost direct correlation, you know, at a ten, to add a ten to one. So I don't know what it's all about. I'm watching it, but not close as you might think.
[00:27:28] Speaker C: Summary.
[00:27:30] Speaker B: You know, whatever you need to do to make money is the goal. If you have stuff and you're not sure about the stuff, you need to make a decision. But if you're confident in it, do what you got to do to make money. And I still maintain a DCA strategy is probably the best way to get.
[00:27:45] Speaker C: Around and get past what we're dealing.
[00:27:48] Speaker B: With in the short term. Don't take my experience as common. You know, my experience is unique in.
[00:27:53] Speaker D: Terms of what I described before.
[00:27:55] Speaker B: I think everybody has to make their own decision about what makes sense for their pocket.
[00:28:01] Speaker C: Long as you keep a roof on.
[00:28:02] Speaker B: Your table, put on, you know, roof over your head and put on your table, you're good.
Some people are not as good with.
[00:28:08] Speaker C: That as they probably should be, but.
[00:28:10] Speaker B: I think everybody should be getting better at it. Now's the time to do that. Once we get a run up, it already be too late. Now's the time to get something and at some point it'll win.
[00:28:21] Speaker C: And as long as it's throwaway money.
[00:28:22] Speaker B: You just kind of roll with it. Hope for best. It's best. You can ask for.
[00:28:26] Speaker C: Others will tell you something different.
[00:28:28] Speaker D: That's cool.
[00:28:28] Speaker B: You can listen to them or you.
[00:28:29] Speaker C: Can listen to me.
[00:28:30] Speaker B: I'll tell you this much.
[00:28:32] Speaker C: Lyster has never steered you wrong. Anybody who refutes that, hit me up. Cryptotalk fm let me know.
