[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 in Crypto Talk radio,
[email protected] seriously, do I have to talk about cryptocurrency?
I don't.
I don't mean it the way it came out, but I'm asking. I legit. I'm like, do I have to? I really don't want to. It's. It's not even boring this time. That's not the problem. The problem is simply everything that's happening is expected. And there's a lot of stuff happening on the side that's making it even more predictable. When it's predictable, it's not fun to talk about. That's the thing. It's like, it's something we can expect and anticipate is going to happen. We knew it's going to happen. We know what's going to, regardless of what I say.
So that's why I'm saying, do I have to? And I. I am one that's. I'm kind of on the job. I'm like, let me just do it.
I can control the time. I can control the duration. I will caveat. It's possible somebody is going to call me because I hit them with a revelation that hopefully made them feel good. But they may not call, they may not want to, which is fine, but I suspect they probably will. So I might get interrupted and I'll take that and come back to you guys. But I'll talk about what I can. Even though it's not going to surprise you, it's not going to excite you, it's not going to thrill you. It's just what it is. I'll talk about what I can. We will have a short episode today. Almost confidently. I'll probably slip in some little bit of 101, but not dominate the episode 101 this time, but a little bit of learning because some stuff happened that I think is worth an educational moment for everybody.
Coinmarketcap.com we are going to zoom out to the month chart for bitcoin to observe a strong upward trend currently hovering just shy of the $74,000 mark.
Before, I talked about a downward trend. The downward trend I see seems to have subsided at least to the degree as before. Like it before, it was like dumped up and then it kind of tapered off and it was a slight downward last week, if you recall. Now I see what appears to be a strong upward trend.
But to see that you'd have to look at the month chart, which is why I do that to slow volatility. Because if you kept on the 24 hour chart, it's gonna look absolutely dire. And frankly, Citi as in Citibank predicted a $30,000 drop from where we're at. And remember I mentioned a while ago that some people were estimating that we were gonna go down to roughly about the $30,000 mark. And I said it's possible, but I didn't think so. I wasn't sure.
Even now with the upward trend, there are still other factors I'll talk about here briefly that could derail the upward moment that I see here and turn it into a downward moment. I don't know. I'm saying that right now as I look at it, it appears to have good strong upward pressure. Whether it sustains is the real open question that we're not really sure. Meanwhile, looking at Ethereum over the month chart, it has an even stronger upward trend currently hovering around the $2,300 mark as I record it on the past 24 hours. Just like with Bitcoin, looks like a downward trend, but it's not the same when you zoom out and the volatility is calm down. So it's that there's some short term pain, but possibly long term pleasure. That being what's happening with the crypto market is a recovery. And of course all the news are helping to pump the situation with strategy holds a million Bitcoin and all these other things that are designed to trigger you to FOMO and take action.
Whether you do or not is entirely up to you. I am saying it appears to be an upward trend. For all disclosure, I did buy a little bit into Bitcoin as well as bnb.
The BNB token seems to have very strong momentum. Anytime bitcoin has these dips and then goes back up in recovery.
So if you didn't know, they have they have burn mechanics built into the BNB token. They also have very strong buy and sell pressure. A lot of what happened before in like 2021 that was contributing to some of BNB's price movement is no longer there. That being all the garbage tokens that were launching on the Binance chain that moved over to the Solana chain. The Solana chain has not had anywhere near the level of upward pressure that BNB has had. So I did buy into BNB because I knew that BNB was going to hit another all time high. They seem to always be able to do that. Now when you look at the raw numbers of bnb, just focusing on them for a hot second, the treasury holdings for BNB are not very. They're not very high. It's half a million in BNB tokens in the treasury. They actually disclose that and the circulating supply is less than 150 million BNB, which isn't a lot.
Many of these tokens that are launching in the billions of tokens and then expected to go to a dollar or greater, I mean they're dreaming, right? Because BNB, I believe it peaked over what, 1200 bucks or some odd, but it only has 150 million supplies or less.
So a lot of these tokens that are launching on these various chains could take lessons from the way BNB's price movement has gone. Which goes to my next topic which is utility and this is a little bit of that 101. I said I was going to fit in there.
Utility of a project. How do you define utility? How do you create utility? How do you sustain utility? It's very simple, it's very easy. All you got to do is make a statement that you can back up all these token projects. They make statements that they think they can back up because somebody told them that they can, but they've not proven it out before they launch the project. I saw a project which I will not name because they're not worth it, but I saw a project launch.
This actually happened a couple of times over years where some project is screwing the pooch. They're jacking up, whether it's Shib or Doge or Saitama or all these. And then there's a disgruntled community member who claims to be a developer and they spin up their own project saying that they're going to do what this other project failed to do. And this other developer, disgruntled developer, screws the poosh just like the main developer because the other developer is either a scammer themselves or they're just blatantly incompetent. This happened very recently with the mentioned but not named project project that I was alluding to. Look it up where that project, because of this other project that basically was screwing the pooch, they launched a different project out of frustration, told people that we're going to build the product first before we go to market. And so we're not even going to do a pre sale. We're just going to start building and building and building. And once we have something we're going to bring it to market hasn't been seen since. Now, obviously I'm not following it close. The point though is that a lot of these disgruntled developers give lofty claims because they think they could pull it off when these other token projects are screwing the pooch. And so they're giving the impression that it's a simple matter. Nobody says or thinks that has any common sense, mind you, thinks that doing the cryptocurrency stuff is actually simple because it's not really. You do have to have a high level of competency. Many of these projects, many of these chains like bnb, I talked about Solana, I talked about Avalanche, hbar, Hedera, many of these projects have actual foundations behind them. Organizations with significant amounts of staff and development resources as well as venture capital, etc. That are guiding them as if it was a business. If you don't have that, you're just a one man show or three nerds sitting in your basement doing development. You're not going to be able to outdo these other large scale projects that are doing what they're doing. So if you have a cryptocurrency project, one of which I'll call in recent memory that I will not name, but let's say you have a cryptocurrency project that claims that they're going to do all sorts of technology fantasticness and they claim they're going to launch a blockchain and they, they claim they're going to have a credit card or debit card. They claim that they're going to have NFTs. They claim they're going to have staking the claim. They're mining all these claims, you hear from all these projects and you watch and none of that comes to fruition. They claim they're going to get on exchanges, they claim a certain number of exchanges, they only get to a fraction of exchanges, then the exchanges are a cluster F all the cryptos do this, there's not a single one, barring Pepe Trump and Melania. Two of the three of those are essentially scams that launched on exchanges full scope with no problems. None of them even shib. For people that forgot shib when it was going on Coinbase listed on Coinbase Pro at the wrong price. People bought an inflated price when they listed that bad boy. Even Shib was not absolved. Look it up. Of the issues and the challenges trying to launch these crypto projects on exchanges. There's just a lot to it. We understand that now. The flip is when those crypto projects make promises their ass can't back up, that's when it's a problem. It's not a problem that they screw up, because every single project should have the risk of failure attached to it. When you go in, you have to understand that the risk of failure is real. So when I hear projects like Devi, that's been making claims for years, and there's certain people that swear that Devi is still legitimate. But then I heard recently, and I don't know the legitimacy of this, I heard recently they were going to pivot to an AI focus and basically restart and start all over. And all the projects they were talking about, they're just not even going to give them the attention. How can you not look at that as a scummy, shady business?
It's shady because all that's doing is leaping on what's popular, which is AI, instead of fixing the root of what you have in front of you. Reminds me of an old project. This is my storytelling section of the show CryptoTalk FM. I had an old token project. Market Move is on the Binance smart chain marketmove. AI was its site. I think it still exists.
I love that tool. I thought it was amazing tool. What it would do is you would give it a contract address and it would scan, scan it. It would give you all these findings, then you could go and make a decision about it. Then they started changing. They were going to rebrand to something else. Never seen again. Everrise, which had amazing freaking tools still out there. The app's still out there, the tokens are still out there. Nobody uses it. Price is in the crapper, no liquidity, whatnot. My point is that all of these different projects, none of them are able to sustain if they don't have strong organizational structure behind them. You can't just have random nerds sitting off in the corner to make your cryptocurrency project successful. It's not that easy. It takes a lot.
I'm not suggesting that you don't hold them accountable when they screw up. Absolutely, you should. But you also have to understand some of these projects that just blatantly screw up, like a world coin. Remember how much hype World Coin had when it launched for the privilege of scanning your eyeball? We'll give you some free tokens. And then what happened? Everybody dumped out of them. Nobody wanted the tokens. It didn't do anything. There was no value. And they gave away their private information because the young people don't understand.
You're giving away your Privacy. And for what? You're basically being hoard out a bunch of hoors.
This is the reality of crypto and the desperation of cryptocurrency. And that's why the crypto projects do what they do. That's why they make the lofty promises that they do. That's why they keep screwing up, because they're scrambling and they're rushing to try to get your money.
It's incumbent. Look on, look, look it up on you to stop falling for those traps. If you keep falling for those traps, it's on you.
I had a person on CoinMarketCaps community said that for this one project that I will not name, they said, I lost my life savings. Why in the world would you put your, quote, life savings in a cryptocurrency project? Not just that, not just that, but a cryptocurrency project whose claim to fame was having a guy standing on the moon telling you about shit. Why would you put your, quote, life savings in a project that had no tangible product?
Why would you put your life savings into something that is online only? Why would you put your life savings into something that requires Internet access? Why would you put your life savings into something that at the time, there's no custody you have, no asset, you own, nothing?
Why would you put your life savings in the hands of a bunch of people who lied to you continuously? I struggle this, and despite my every effort to try to help, I'm not getting through. And I understand there's gamblers that roll the dice. I understand that my impassioned plea to you. If you are aware of some of these people, it's a sickness, it's a disease. We need to cut it off. The past, spread the word CryptoStock FM and tell them straight, sit him down, slap him if you must do, but sit them down and help them understand. You're a gambler, you're an addict, and you need to listen to this guy. He's trying to hit you with some reason and logic and common sense to stop you from making stupid decisions next time and stop you putting your life savings and your kids and your spouse at risk over garbage on the Internet.
I digress. I really. I. I'm calm now. I'm. I'm calm now. I'm better, I swear.
I want to wrap up now. Cryptocurrency overall, I want to wrap up now.
The exchanges, all the different exchanges, all the central exchanges, all the decentral exchanges.
There's a new sheriff potentially coming in town. You might have heard about this. This New sheriff, potentially, is your local bank.
What's happening or what's possibly happening? You might have heard, as I did, an episode a couple of weeks back about the banks are pushing back about yields they don't want to have yields, they don't want you to make any money. They want you to deal with the garbage rates that they have. And I suggested that smart banks, especially fintechs, if you're smart, you're just simply going to launch your own coins and deal with it. That way you're going to make a mint. Because if you are a trusted source of getting these assets and they know they can trust you, there's a face, there's a name, there's a building, whatever, you're going to naturally get that money flow. Turns out that there are some banks and some fintechs that might be listening to the show here, Crypto Talk fm. I don't know that for sure, but I suspect that may be the case because it turns out some of them are actually taking heed and they're considering launching their own cryptocurrencies. Not only their own cryptocurrencies, but their own stable assets tied to the assets they already hold to simplify and facilitate all the different transactions that they do. There were actually some talking about creating payment facilities that did not rely on the Networks for Visa, MasterCard, American Express, and to a lesser degree, Discover and Diners Club, that you would actually use cryptocurrency as the actual payment. Rails, it's referred to. And so your card, it didn't need to have any of those networks going on, which means you wouldn't be dinged by those fees from those networks, which means those retailers would not charge it back to you in terms of the price of goods and services, which means potentially the prices of things would go down. Because I know way back in the yesteryear, I would go to the taco shop and they were talking about $5. If you use a car to eat, do, do. This is back before cards became more ubiquitous. Look it up. But I know some of them still do that. They pass that charge from swiping the car back to you as the consumer. The theory is that using blockchain negates that because there really is no cost to the consumer and no cost to the provider. Now there's a lot of hurdles and hoops that have to be gone through in order to make this happen. But it got me thinking. For any of those that are listening, those banks, those fintechs, it's actually very simple. But you're going to incur a charge. Follow me on this magic carpet ride. Consider a situation where all you're trying to do is get your assets to them or their assets to you.
What if you simply allow the cryptocurrency transaction as you do so you do a card, the card swipe. And this is going to take a specific terminal. We understand that the card swipe simply does the regular cryptocurrency transaction as normal. The cryptocurrency transaction follows rail through the regular blockchain that you chose. I know. Solana just recently launched their payment deal for developers. Let's say use that one. That's fine.
On the back end. It automatically stables out. So it goes to a stable asset on the back end regardless of what the pair was that was used.
Is the easier way is just to pair to the stable. But maybe the retailer wants to use their assets as part of the transaction because they want to get a cut of it. I'm just making stuff up. But you stable it out on the back end side. You then tie that stable asset and you can do this. You tie the stable asset to a custodial organization so you could tie it to where the stable assets backed into Coinbase Prime. I'm making something up here just so you can visualize it.
Stable assets in this exchange. You tell the exchange your cash out is going to happen on a routine basis. So it's just going to dump fiat off to a different account.
All that's doing is doing a sell, it's doing a deposit and then you treat it as a direct deposit transaction because it's a straight ach.
Now, the risk is on who. The risk is on that payment facilitator, the one who made all that happen. The money made the transaction because the IRS is going to come knocking at their door. They're going to come looking for them for their tax slice because somebody's got to pay the tax money. And when revenue is coming in, however it does, the IRS wants to be aware of it. When you're doing a sell, the IRS wants to be aware of it. If you send it straight to stable. Did you really sell assets? The answer is no. The sell happened to the one swiping the card. The one who has to provide that tracking would then have to be the retailer, presumably. Unless if you controlled the card and the transaction history and the reporting up to the irs.
All of what I just described simplifies everything we're arguing about with the whole yield and everything else. Because it then doesn't matter. You simply give it to the person who has the assets. You put them on a card. The card is simply their own wallet.
We have that now where debit cards tied to the wallet. The difference is right there. There's a custodian in front of it. If we allow the customer to create their own custody, create their own card. Literally create their own card. You don't need a physical card, but you can let them create their own card that is their own card. And it simply hits blockchain, does the same transaction to special hardware. The special hardware simply is just sending it stable to whatever back end. The back end stable sends it to fiat. The fiat then whoever receives it is responsible to report to the IRS on the other side. The retailer might have a part to play in all that. If we do that, it simplifies everything and the onboarding to cryptocurrency that we've been talking about doing. The downside of doing that, because you're like, well, it sounds exciting. The downside of doing that, you are going to create dilution. Look it up. Of the cryptocurrency assets. I'm not going to bore you with the details of that one. That's for another episode. I think I'll save that to me. We need a full episode to talk about dilution. How cryptocurrency ends up diluted when we try to pair it to fiat. Because it's important.
Certainly if we're going to try to adopt it, we need to understand how not to damage it en route to us adopting it. Dilution would damage it in the short haul. Bitcoin is somewhat absolved of dilution, but not completely because Bitcoin is still paired with other assets. As long as Bitcoin is paired to other assets, the dilution effect will continue and persist. As well as the paper trading that happens on Ethereum and Bitcoin through ETFs is. ETC creates a dilution effect through paper trading. You just don't see it, but it's always there.
So we have to solve all these things. We would have to rethink what it means to transact with crypto than what we do right now. Until we got to that point. You're always going to have this pushback from the financial institutions because they want to control the game as they always have done with stocks and bonds, etc.
In closing and in summary, hopefully you are not doing what that other idiot did in terms of my life savings in garbage cryptocurrency. Hopefully you're smarter about it and doing smart trades. It's not that you don't trade. It's not that you don't buy. It's not that you don't sell that you got to be smart about it and certainly don't put more than you can afford to lose. The worst thing you could do, the worst thing you could do is toss a bunch of money at something you don't know is going to succeed because you don't know it's going to succeed. There's a two way risk. A it could crap.
B It might succeed 10 years from now. Let's say you're not alive 10 years from now. What good did it do you? Focus on the things where you have some confidence it's going to be something in the short term when you have the life and the opportunity to receive and appreciate it. If you don't do that, you're just a mark. And I call you that not to insult you. I call you that because the definition of a mark is someone easily duped by something. Don't be easily duped by lofty promises and a guy standing on the moon. Think it's smart as long as you can trade it and as long as it's an essential exchange, meaning it's out of the hands of people who can destroy it.
Money can be made both up and down in price. Take those opportunities, learn how to do this. Then you realize anything can make you money and it's all a matter of timing. At the end of the day, Sa.
