[00:00:01] Speaker A: 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] Speaker B: Thank you for that Bailey. And welcome everybody out there on Crypto Talk radio
[email protected] there's like a weird swamp weather fog rolling in.
I thought it was smoke but no, that's fog but it's like swampy weather. It's muggy. That's the best way I could describe it.
Warm.
And then I had a power related something. Power didn't go out but one of my power units started having issues so I had to suppress the air conditioner because obviously that's the biggest consumer temporarily to allow the all the power units to get caught up because they were getting beat up because it was running non stop normal.
It's hot out here.
Today's episode will be slim. There's a couple of points I want to talk about. Nothing major, nothing significant has changed.
So it's more of a high level today. I don't want to spend too much time, I don't want to waste your time.
Once there's something of strong significance, I assure you I will talk about it. But there's a lot of things people might consider significant that I don't think are and there's and news.
It's like a, it's like a fire hose. It just blasts a bunch of information at people.
Coinmarketcap.com we will zoom out to the month chart and start with Bitcoin currently hovering just at the 61:5 mark shows a slight downward trend. Not a steep downward trend, just a slight downward trend. However, people speculate that going down to the 50s is certainly on the table.
So when I say a slight downward trend it doesn't necessarily guarantee that it's not going to have a sharp downward spike here in the near future. Keep an eye on it.
But it doesn't look like a strong downward for me it looks like it's going to kind of come back up again, possibly go back down after coming back up again I guess is the best way to describe that Ethereum currently at the sixteen hundred dollar mark.
Ethereum to me shows more of a downward pressure. It shows more of damage and pain. Inbound Ethereum has, is a buying opportunity in my opinion when it gets low because most of the, you know, the different networks out there ultimately are dependent on Ethereum to some degree. So if, if nothing else, Ethereum gives an opportunity for upward price swings in my opinion. More than bitcoin. There's a little bit of bits I'll talk about here later. About that.
Let's jump into some news that again, everybody cares about different topical things. So it's possible I don't get to a topic you're interested in. As I'll remind people, CryptoTalk FM, hit the contact form. If there is something that you would like information about. We're happy to accommodate. We've done listener feedback sessions in the past. No problem.
Just understand there's a lot out there and there's. There's too much for any one focus and you can't know what's doing different. People are going to find important.
Bitcoin is a little bit under attack, just a little bit. Not crazy, but just a little bit.
When I say under attack, what does that mean?
The Treasury, The United States for those international, the treasury, it is the backbone behind our economy. It's the backbone behind everything that we buy, sell, trade, our housing market, cars, you name it. The treasury in some way holds this up. And the banking system is an extension of the US treasury, allegedly, and I don't know exactly what this means, but allegedly the treasury is running low on cash assets and they want to try to supplant, look it up, basically replenish, fill it back up, get back what they feel is a shortfall.
Nobody knows exactly what that means, but people theorize that no matter what it means, it's going to draw liquidity out of bitcoin.
So I thought I would take a moment to talk about how that works because some may not understand.
Cryptocurrency with respect to financial markets largely is dealing with money that's shifting back and forth.
We're not dealing with new money.
So whether we talk bonds or we talk CDs or we talk stocks or we talk different investment instruments of whichever kind, or just straight transactional, you know, let's commodities, gold, silver, etc.
People tend to shift the money different places. Some people shift off green candles, see green candle, they FOMO in.
Some people shift to insulate from damage on the other side.
So crypto, when it, for example, when it's crashing, people tend to stable out or straight cash out to others more stable assets or like when silver ran recently, they'll go that direction because they see it's running.
Ultimately all of the liquidity that's available is kind of just shifting between asset classes.
And so what this is implying is that there's liquidity that's out there. We know it's not in crypto because crypto's crappy, but that the liquidity is somehow being held onto, thus not re entering the Treasury's grasp. Since it's not re entering the Treasury's grasp, the theory is that the only place they could turn is the crypto market and bleed more out of it. You might wonder, well, how, how does that exactly work and what does that mean really?
The theory, the theory.
First we have to understand where do they think they're going to target getting the money out of, what are the different sources that they think they're going to get out of these different deals?
So there's, there's yield facilities and all sorts of sources that are just ways for money to enter different asset classes. I'm trying purposely to simplify it as best I can because I don't want to over simple. I don't want to over complicate with a lot of these terms.
Rates plays a factor.
Long term savings plays a factor. There's a lot of different factors that play in. Suffice to say if what they speculate is going to happen will happen, it means more downward pressure for crypto. Like for, at the end of the day, that's what everybody is afraid of, is that this move will trigger more downward pressure.
Downward pressure not because of people necessarily selling because they don't believe in crypto, but simply because they need to make whole on other different types of asset classes and so that the money would flow in those other directions. Even if temporarily, it may not last.
But as you see with the short term price movement right now, sentiment would be impacted the more that Bitcoin goes down. Because you keep hearing the narrative Bitcoin's a scam. It's, you know, and so then if the treasury does what they're saying it will do and it causes the downward pressure people think it will do, it might be a cascade effect. This isn't to freak you out. It's so you understand money ultimately shifts between asset classes. Crypto is just another asset class.
There are narratives from different YouTubers that tell you that big aspect like da Vinci that, that tell you that cryptocurrency is the future and everybody's going to jump that way maybe in a distant future when we're all off the earth. But for right now and for the next, I'm going to say for the next 10 years.
Fiat runs the game.
It, it runs the game. It's people need to pay their bills. People. You're not going to disrupt all that. You're not going to disrupt the Banking deals either. That's going to even be harder because the banking everything is so intertwined and interdependent. Like when banks fail like we had before, it just completely disrupted the economy when that happens because they're so intertwined. So you're not going to get rid of that. I don't care what they say.
The most you can hope for is something that they're working on doing with clarity, which is at least using what I talked about, using blockchain for settlements. 24, 7. That's about the most you could do.
The cash itself would still be there, depositories would still be there, all the fundamentals of banking would still be there. They wouldn't go away, they wouldn't do a stable coin, but just the settlement using crypto. There's a blockchain, there's nothing wrong with that at all.
That's about the best you can hope for.
Well, they're not going to do settlements on bitcoin.
It's not going to happen. If they're going to do settlements, they would probably do private blockchain. I don't think they would do any like XRP or. I don't, I don't believe so. I think they do private blockchain.
If they do private blockchain that does not have any significant trickle down value to you, the bank would have to expose some asset that's traded, you know, on the open market. Whether they do that or not. Who knows, some of the fintechs might do that. I've always asked why certain fintechs didn't just do that. They might as well do like stripe. They might as well do. You might as well create your own and control the asset flows. I think they're waiting for regulatory clarity. It's my, my theory. I don't know for sure.
Charles Hoskinson, you may not know the name, but Charles Hoskinson, he's the guy behind Cardano. And I said that I like Cardano, but I've been told countless times that the guy's an idiot.
So I, I don't know him, I've never talked to him.
But people tell me he's an idiot. And that's why Cardano is struggling as it is right now.
Well, he's in the news again.
I gotta be honest. I am convinced the people who told me this guy's an idiot were onto something.
But I don't think it's intelligence. It's like idiot Vitalik. I don't think that's what it is.
Hoskinson strikes me as Although he's not wrong in what he's saying, he strikes me as a bearded version of Chicken Little.
He went on a rant. It was just a threaded rant, just a bunch of rant posts. Because what's happening in Cardano, the. The money part of it is struggling, has been struggling for ages. Remember Cardano, I think peaked at $3 and some odd. Now it's like $0.10 or $0.17 or whatever.
So the money's an issue. When builders of any kind try to build on a chain, they need money because they need staff, they need resources, they need money.
What a lot of people in Defi don't seem to understand is that the money doesn't just magically show up.
Most everything that's going to thrive needs to fund itself. They need to have a way to fund itself. But in Defi, for reasons I don't quite fathom, there's a narrative that they'll try to get the money from the community and then try to use it to build what they say, and almost always struggle or fail because you're relying on a stream of money that you think is going to be constant.
So some of these tools on Cardano that were highly regarded, they were not sustainable, they couldn't hold up because unfortunately, they didn't have the money. The money wasn't there.
The money went dry, it was going to run dry. That's the way that this works, because it's Defi that rhymes.
The projects that are sustained come in with their own money to fund the initial operations and get the product off the ground and get it to the point of some solvency, general solvency, such that when money comes in, you're using it to recoup the money you put in, instead of trying to rely on that money to be there when you haven't proven it yet, or if you do, not able to insulate against the ups and downs of the crypto space.
So when I say that Defi doesn't seem to have a clue about this and how this works, it's because I've seen so many projects do the same thing, so many blockchains do the same thing.
There's just this narrative. They're doing it all backwards. And I don't get it, because we're talking business people, but they're doing it backwards where they just. They're trying to drain liquidity from people. Not malicious, but they're relying on that money flow, irrespective of the fact that crypto is being disrupted on multiple sides. And I don't I don't understand why that continues to be a thing.
I can only surmise that you have people with great ideas. They find it really hard to put together, like a business case for a bank or something, because I know that it sucks. You know, you're. You're going to justify yourself to a bunch of idiots that don't know your vision. So I'm not suggesting that they're wrong, but I, I always am mystified that it keeps. It seems to continually be a problem to somehow get your own funding, even if that's just, you know, talk to somebody that's not a bank but happens to have some wealth. You know, there's investors and things out there and sites where you can talk to people that have money, that are interested in projects, and maybe they're just resistant to invest in crypto. Maybe that's what it is. So I, I think what I'm getting at is there's a market here for anybody listening that's wealthy, wealthier than I am. CryptoTalk FM there's a market here is what I think I'm getting at. I think I'm getting at the idea that there's certainly a space for people that want to get access to some sort of capital or money where the traditional banking route of doing it is too onerous. And that's theoretical. I can't prove it, but it would make sense.
And that doesn't mean that you don't create a business plan. That doesn't mean you don't go through some of the rigor. I'm saying that a lot of the rigor, the banks do.
Somebody had a great state, actually it was Shannon Sharp had a great saying, which is I've said for years, the bank will gladly lend you money when they know you don't need it. Then they'll give you all the money in the world. Same with credit. They'll give you money when they know you don't need it. If you make 500,000 a year, they'll give you money all up the yin yang if you don't have any debt. So when you don't need it, they'll gladly give it to you. Does it make sense? No, because for them, they're. It's not even about being paid back. That's not even. That's. It's all a game.
So with these upstarts, they don't have any money. They can't prove it'll be profitable. They can't prove anything. So they're stuck in a chicken. And the Egg and maybe that's what really we're seeing is the Cardano aspect of they assumed because it hit three bucks that it was going to turn into something and wasn't sustainable long term. Well, Hoskinson was doing threats about a proof of burn and splitting it off to a new Cardano and I think that would be absolutely. It'd be dead in the water if you ask me. Not because it's Cardano but just because any product, there's never been one that has split and please don't say Bitcoin or Ethereum, those don't count. There's never been one that split and was truly successful. It's not happened. Ethereum Classic not nearly successful. Right. Bitcoin Cash not nearly successful. Bitcoin SB is blacklisted. Like there's never been one where they pull that off. Luna Classic allegedly talking about re merging the name or some garbage. I don't know, it's never worked. But his rants, I don't know, I don't know what it is with the dude, I, you know, whatever.
The last update, zcash.
Zcash recently had some price crap out. The price crap out was based on what I would argue is it's a valid concern, but I think it was an overreaction. It was an extreme overreaction to something else.
So allegedly some developers ran AI tools. In this case it's called Claude.
It's a free AI tool, you can download it, it does a bunch of stuff, but they ran AI and allegedly the AI was able to find a flaw in the contract that could be used to secretly mint coins.
Now this was not exploited, this was not used. There was no drain, there was no nothing. It just happened to be that AI stumbled across what was alleged to be a breach in the code which caused a negative sentiment because of the fact it was found, not because it was exploited, but simply because it was there.
The reason I left this for last is because there's significant symptoms where pricing just drops. You know, buy the rumor, sell the news. But more importantly, things drop without any real basis behind them. They're just impacted by things, often things where there should not be any such an impact.
And some people are getting frustrated. They're getting. And idiot Vidlick even recently was talking about, you know, I don't think that we should have these cascade crap outs, liquidations and things simply because of some event that caused a little bit of price shift.
Well, guess what folks, this is the world you asked for. You asked for a world where everything is just Bought and trade and sold like stocks. That's what you asked for. You didn't want to trade crypto in of itself with its own intrinsic value. You wanted it to be like the stock market because you wanted money out of it. Well, guess what, the institutionals, they took your offer and they turned it into the stock market. And now they're influencing it. That's what's happening with Bitcoin.
That's what happened with all of them. They're being influenced by big players because they've been allowed into the game and then they changed the rules of the game.
Now you're playing along, but now you are no longer able to profit like you're told from the yesteryear was the case before it got mainstream. I'm saying, and I'm sure you've noticed, many of the influencers have shifted messages.
Many of them are just simply begging and pleading for you to hold on and have faith and it'll work out and all that. I, I, hey, that's fine if that's what you accept and understand. I say to me, Bitcoin is way too much centralized for my own taste. And I don't think anything will change in the short term with what we're seeing. I think we got a little bit more pain to go.
I think crypto has to get.
Something's got to change, Something's got to change. I don't know what that something is. I don't know if it's the next generation of what we know of as crypto where it's not yet infected by the financial system.
I don't know if it's something of the existing chains and which one of them would be the standout.
I don't know if it's some sort of a fork or something existing. I don't have those answers. I'm saying that what we see in the price movement and these kinds of negative shifts based on AI just making a claim that was never exploited.
This is your future, ladies and gentlemen.
That's why I, that's why I hesitate doing any sort of, you know, steer you to hear or invest in this or do this, because I know that at the end of the day all of them are being influenced because they're tied to Bitcoin in some way.
And I don't want people to lose money because of something I said. You know, you notice I'm not a shiller, I'm not a hype stone, not a whatever. I'm just doing basic coverage. It's because that's why I do.
So keep an eye on price shifts over the month of June. The month of June is going to tell us a lot about crypto, I think.
And, and I don't know what the future holds beyond June.
It's hard to tell. It's hard to tell if there's way more pain or there's going to be a bounce off in the short. It looks like more pain. And I was, I was happy to be here when I, when it, when it happened, you know, because again, they're buying opportunities. If you do believe that this will be a run up again, it's the timing that's kind of in question. Can you afford money being locked up potentially for two years for another run up? Because that's, we're getting to that kind of a cycle where if you do get to that low price, like if I had, if I could go back, I would have bought way more Solana than I did. I was sitting on 20 Solana at a point.
I, I would have bought way more. I would have stayed on it some BNB when it was dirt cheap, I would have done more.
But that's hindsight.
How long did it take for them to run up. How long did it take BNB to run up to over a thousand dollars? Took a while.
Can you afford to be out that money for that long? And more importantly, can you make sure there's not something else that's more valuable or important that you really need to pay attention to?
That's really the question. It's crypto itself is crypto. It's not going to change. It's not going to go anywhere. The big question is, is it, is it just a trap? Is it just a liquidity drain right now? Or is it really an opportunity? And if it is, how long is it going to take to actually realize that opportunity?
Time will tell, folks. Time will.
Sam.
