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#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, Lyster.
[00:00:13] Speaker B: Thank you for that, Bailey. And welcome everybody out there on Crypto Talk radio. [email protected] dot a very happy 4 July week to everybody out there.
[00:00:23] Speaker C: Cryptoland Cryptotalk FM.
[00:00:24] Speaker B: My name is Leisteren.
[00:00:26] Speaker C: I am your host. If you're new, welcome to the show.
[00:00:30] Speaker B: And it's possible, can't say for sure, but it's possible that why you stumbled.
[00:00:35] Speaker C: On the show is because so many.
[00:00:37] Speaker B: Other podcasters in the space quit the business, and a lot of them quit the business because there's nothing of excitement going on. We had a very, I'll say, challenging 2021 run ups like crazy pumps, like nothing, you know, a bunch of garbage tokens. Certainly we have garbage tokens, certainly had a pump, but we just pumped back.
[00:01:00] Speaker C: To where we were. We did hit a new all time.
[00:01:02] Speaker B: High, but it didn't go any further and people got frustrated. The frustration started to set in. You don't see or hear a lot of the same chatter. Some of the people that were around from then are still around. But if you've noticed, and I don't know if anybody listen, I'm assuming you do listen to folks on YouTube.
[00:01:20] Speaker C: Some of them have even shifted their approach. They've completely shifted the way that they do coverage.
[00:01:25] Speaker B: And I have remained pretty consistent in the way I did it.
[00:01:30] Speaker C: And I only shifted away from the.
[00:01:31] Speaker B: Outer cycles briefly and then went back to it during this lull. I'm going to be talking a little bit more about what's going on, but I wanted to stress there's a shift in maturity. It's good, it's positive that we see it. It just took a little too damn long, but it's good that we're getting a shit to maturity.
[00:01:52] Speaker C: All I can ask of anybody listening.
[00:01:54] Speaker B: To my show, at the end of.
[00:01:56] Speaker C: The day, you're not going to hear.
[00:01:58] Speaker B: Me shill a token. You're not even going to hear me support a token outside of ones where.
[00:02:03] Speaker C: It looks like it's got potential.
[00:02:04] Speaker B: And even then, I'm always going to quantify what it is I'm telling you with warnings, because a lot of them.
[00:02:11] Speaker C: Seem to just have this failure at heart.
[00:02:14] Speaker B: They can't seem to get it together and they can't seem to do the right thing. And I'm not sure what that's all about, frankly.
So just to give a personal update. I think it's important so you know, where, where I'm at, what's going on.
[00:02:27] Speaker C: It affects the show. Right.
[00:02:28] Speaker B: I've been consistent in my recordings, even when I had terrible audio, because I was driving from state to state to state, shacked up in hotels, didn't have all my audio equipment. I got my audio equipment.
[00:02:38] Speaker C: I'm in my home.
[00:02:39] Speaker B: I've got acoustic panels set up. Do, do, do.
[00:02:42] Speaker C: There's no echo.
[00:02:44] Speaker B: There's no background noise other than the fridge going off. And I don't even know if you can hear that. But the thing is, I bought this house.
[00:02:52] Speaker C: I've been doing sweat equity since I bought it. I bought at the end of May.
[00:02:55] Speaker B: And I've been doing sweat equity ever since. And I have no problem sweat equity at all. You know, these are things that I knew I was going to have to do. I was not going to find the kind of home that I expected, which is well taken care of because it seems like nobody takes care of their house. They just sit in a groove, and.
[00:03:12] Speaker C: I don't know how that's possible.
[00:03:13] Speaker B: I don't know how people tolerate sitting in a house. Endless, endless days. I'm waiting on a vendor who's supposed to be doing some window measurements, and this guy was supposed to show up yesterday, called late, said I ain't going to make a. Then he said he was going to show up today. Well, he hasn't called.
[00:03:31] Speaker C: I don't know where he's at, and he's holding back. I need to go back up to my old place because I have to.
[00:03:35] Speaker B: Give them the final check, clean out the unit. They're going to nail me, guaranteed, on some stuff because there's stuff on the wall and some adhesive things that I can't get out. And the cleanup, I decided I was.
[00:03:47] Speaker C: Not going to clean the freaking thing.
[00:03:49] Speaker B: What they want you to do is.
[00:03:51] Speaker C: Be desperate to get your deposit back. These jokers took a $1,800 from me.
[00:03:56] Speaker B: When I moved into the place, but I'm not desperate for the money.
[00:03:59] Speaker C: I chalked it up as a loss.
[00:04:00] Speaker B: Because I was not going to scramble. Even if you clean it, they're still going to nail you.
[00:04:06] Speaker C: They'll still charge you.
[00:04:07] Speaker B: So there's no value in doing excessive.
[00:04:11] Speaker C: Cleaning because they're going to nail you no matter what.
[00:04:13] Speaker B: And I knew that since that was going to happen, I figured there's no value in me doing any excessive energy, you know, output on cleaning it out because you're just going to charge me for cleaning anyway. I knew that. So I'm going to get the rest of the says, you know, it's a couple trash cans and a box, right? Get that stuff out of there.
[00:04:32] Speaker C: Once it's out of there, I'm done with the unit. I'm going to drop the keys off. I'm going to take a picture of.
[00:04:37] Speaker B: That bad boy because they're going to be closed by the time I get up there. Take a picture, all the stuff, drop the keys off, drop the final check off again. They're going to come back at me about the stuff they had to do to the walls and all this business. And I don't care because I wasn't going to get the money back anyway. It's just whatever. And I want to move on separately.
I had a fiasco with the place I had out in Nevada, and I'm.
[00:05:01] Speaker C: Going to tell that story on casual talk radio.
[00:05:03] Speaker B: I'm not going to bore you here. Suffice to say, these, you know, that west coast man, they're out of their minds. They're just nuts. And I don't know what that's all about. I figured because I was so fired up about it yet when I got the letter in the email, I was so fired up about I was going.
[00:05:19] Speaker C: To talk about on the show, and.
[00:05:20] Speaker B: Then I started reading up about some of the things that were happening, and I caught a, caught wind of a couple things I wanted to talk about on the show.
[00:05:27] Speaker C: Then I'm going to tail end it with a little bit of educational things.
[00:05:30] Speaker B: I realized I hadn't done that in a while.
Coindesk.com dot we're going to zoom out to the month chart specifically targeting bitcoin because bitcoin dumped back down after starting.
[00:05:47] Speaker C: To climb and starting to reclaim a.
[00:05:49] Speaker B: Little bit of what it had lost. It didn't sustain. It didn't hold.
[00:05:53] Speaker C: And in the previous episode, you're new.
[00:05:55] Speaker B: You didn't hear this, but in the previous episode, I said, my gut tells me somewhere around the 55,000 mark is about the lowest we would go. Before going back up, I had some.
[00:06:07] Speaker C: People I saw online that swore up.
[00:06:09] Speaker B: And down that we were on and we were on our way. You know, we're on our way. We're going up. And I, I just marinate in the cut. I'm not looking at it overly technical. It's really about sentiment. Sentiment right now is in the negative.
[00:06:22] Speaker C: It's not in the positive.
[00:06:23] Speaker B: So we get these pumps, but they don't sustain. It's not that we don't get them, they just don't sustain. Bitcoin. As an example, just in the past.
[00:06:31] Speaker C: 24 hours, a low of 61 seven.
[00:06:33] Speaker B: A high of 63 two hovering about the 61 nine mark. That's downward, right? It's not going up, but it's not.
[00:06:40] Speaker C: Like it's completely crashing and burning either.
[00:06:43] Speaker B: The 55, that where my gut was leading me was around the fact that.
[00:06:48] Speaker C: It'S headed downward and on its way down, you're going to get liquidations, which we saw, which told me it was.
[00:06:54] Speaker B: Strongly probable we go down a little bit more. But I suspected there was going to be some buy pressure that would hold the line and bring it back up again. The bitcoin ETF's helped us a little bit. Profits from mining helped us a little bit.
[00:07:08] Speaker C: Other avenues where there's certainly a positive.
[00:07:11] Speaker B: General sentiment seemed to help it. But it felt like there was like a holding pattern going on where there wasn't a lot of activity, at least not as much as we would expect from bitcoin, given we're post having. But it may very well be that.
[00:07:26] Speaker C: Being post having is what's contributing to some of the negative.
[00:07:28] Speaker B: Here's where I'm coming with this. Think about it for a second.
[00:07:31] Speaker C: If we had.
[00:07:32] Speaker B: So we had the having, right? And difficulty was presumably going up. Well, recently people saw that the difficulty was going to decrease ever slightly.
Okay, what the heck?
And the theory was that miners might start selling off and that some mining facilities might close. And if there's disruption in the mining situation, that means the supply is disrupted.
[00:07:55] Speaker C: If there's a disruption in supply, you.
[00:07:57] Speaker B: Would think that it would cause a bit of a run up. But that assumes that people are willing to pay the increased price over time. What if people are just sitting on the sidelines waiting for the price to go down because they think it's going to go down? I'm saying that maybe it's all psychological.
[00:08:14] Speaker C: Maybe a lot of the decline is.
[00:08:16] Speaker B: Simply because people are smarter than the average bear and they realize, no pun intended, and they realize, you know what? Let me just wait on the sidelines.
[00:08:24] Speaker C: And see if this thing goes down.
[00:08:25] Speaker B: If you're one of those where you're just kind of waiting it out, I'm going to celebrate you. I will remind you, though, you're probably going to miss out. And if you're okay with that, cool. I'm not suggesting that you do fomo in or anything. I'm saying that you, hopefully you've mentally prepared yourself for the reality that you're probably missing some sort of a run scheduled to come. And if you fomo in, you're not going to make as much money as you could do.
You might be asking, well, then what are you going to do about it?
[00:08:51] Speaker C: Well, I don't trade bitcoin, first of all. I have a little bit, but I don't trade it.
[00:08:55] Speaker B: I don't buy it like crazy. I don't stack it, I don't dca into it. It's, I watch it. And I'll be honest, I am waiting for the potential next time that we have a major crash, which we may never have. It's possible, I suspect we're going to have one more good crash here soon, probably sometime early 2025 ish. And that would be predicated on the situation overseas, predicated on our political spectrum and what's going on with our elections. I think there's a lot of risk.
[00:09:27] Speaker C: Out there, which is why I've held.
[00:09:29] Speaker B: Off from making any aggressive moves at this point.
[00:09:32] Speaker C: It's not that I don't want to.
[00:09:33] Speaker B: Trade bitcoin, simply that I'm skeptical that what we're seeing is truly the end of the game. I think we got a little bit.
[00:09:40] Speaker C: Ways to go of disruption before we.
[00:09:42] Speaker B: Get to some stability. Meanwhile, you think about it, all of.
[00:09:46] Speaker C: These other tokens are around that can make you some profit.
[00:09:48] Speaker B: We still have not hit Ethereum's all time high.
[00:09:52] Speaker C: Avalanche is still out there. Cardano still out there.
[00:09:54] Speaker B: Doge is still out there.
[00:09:55] Speaker C: All these other ones are still out.
[00:09:57] Speaker B: There with a lot stronger potential for profit, if that were my motivation. I make enough money on my endeavor such that I am not greedy about these things. I still observe it and I do discuss it, and I'm wary that what we see right now is simply a lull.
[00:10:14] Speaker C: And we have to get clear regulations from the SEC, which I don't know.
[00:10:18] Speaker B: That we're going to get in the short term, but I'd like to see something happen there. We need to see what happens at.
[00:10:22] Speaker C: The, the Ethereum ETF's.
[00:10:24] Speaker B: We need to see what happens to the war situation. We need to see what happens with the election. We need to see what happened with rates. There's a lot of things floating in.
[00:10:31] Speaker C: The air that may be contributing to.
[00:10:33] Speaker B: A lot of the non pressure, I'll call it, that we're currently seeing.
Speaking of the Ethereum ETF's the spot.
[00:10:41] Speaker C: Ethereum ETf's were delayed.
[00:10:42] Speaker B: The SEC recently mentioned that they wanted resubmission of the s one forms, and.
[00:10:48] Speaker C: These are semantic things. This happened with the bitcoin ETF's if you remember, I actually talked about that.
[00:10:53] Speaker B: On an episode of there's a little bit of okie doke. The time is a little bit too convenient because just recently there was a lot of news and chatter that the Ethereum ETF's were imminent. They were going to be approved imminently.
[00:11:04] Speaker C: Only to have this last minute revision.
[00:11:06] Speaker B: Which are semantic, small things, annoying things.
If you expected the thing was going to be approved. I don't know.
[00:11:13] Speaker C: I can sell you a bridge.
[00:11:14] Speaker B: But here's the truth.
[00:11:15] Speaker C: They're going to do everything that they can do to delay the progress and slow the wheels of progress.
[00:11:21] Speaker B: They don't want the thing to go forward. That's evident. They did the same thing on the bitcoin ETF's.
[00:11:27] Speaker C: They want to slow the wheels of progress. And remember, this is Joe Biden's sec.
[00:11:33] Speaker B: Effectively, he's the one that put Gary Gensler there in the first place.
[00:11:37] Speaker C: If I were advising Joe Biden, first.
[00:11:39] Speaker B: Of all, I tell them when it go to home. But regardless of this, you got to understand this guy. It's like he doesn't want to be reelected and he's sabotaging his own reelection.
[00:11:48] Speaker C: Chances because by now he should have reined in Gary Gensler and told him, get your ass in line because you're.
[00:11:55] Speaker B: Costing me business here on the election circuit. Never mind Joe Biden's terrible performance on the debate table. You got the SEC doing this, it's making even worse, and Biden refuses to do anything about it. And then the whole executive order that.
[00:12:07] Speaker C: Allegedly allows them to take control of.
[00:12:09] Speaker B: Certain crypto exchanges, I am thinking they're trying to sabotage their own, their own chances.
[00:12:15] Speaker C: I can't say for sure, but that's.
[00:12:16] Speaker B: What it feels like to me. So now, seeing that this resubmission request.
[00:12:21] Speaker C: Goes in there with these minor little.
[00:12:23] Speaker B: Tweaks happening and a deadline of July 8, that's about a week or so, mind you, that's going to delay the release of any spot Ethereum ETF's until I'm going to measure sometime around the end ish of July, if not mid August.
[00:12:40] Speaker C: Gary Gensler had told people it's going to be approved in the summer.
[00:12:43] Speaker B: He didn't specify when they were supposed.
[00:12:45] Speaker C: To be approved in the beginning of July, if not the end of June.
[00:12:48] Speaker B: But again, anybody who expected that this was going to be approved straight over, I got a bridge to sell you because this is the way the SEC works. Speaking of the SEC, they recently are.
[00:13:00] Speaker C: Making some ways to try to end Ethereum staking.
[00:13:03] Speaker B: From Metamask.
[00:13:04] Speaker C: And I do not use metamask.
[00:13:06] Speaker B: I do not support metamask because Metamask openly admitted they do things to violate your privacy. So I would never advocate metamask.
[00:13:13] Speaker C: But I know there's people out there.
[00:13:14] Speaker B: That do use metamask.
[00:13:16] Speaker C: But the SEC claims that the metamask.
[00:13:18] Speaker B: Services for Ethereum staking makes them a.
[00:13:21] Speaker C: Form of unregistered broker, that being consensus.
[00:13:24] Speaker B: Who'S behind metamask itself.
[00:13:27] Speaker C: And the SEC has filed suit against.
[00:13:29] Speaker B: Them, saying you are violating federal securities laws.
Here's an interesting thought. This is a wallet. It's a non custodial wallet.
[00:13:38] Speaker C: Is metamask. It's at least non custodial. Certainly it is.
[00:13:40] Speaker B: And it is true that there's Ethereum staking. Now, you can stake Ethereum through a.
[00:13:45] Speaker C: Lot of different wallets, including trust wallet. So I question why Metamask is the.
[00:13:48] Speaker B: Only one isolated out in this business. Trust wallet has a company behind it, so it's not having a company behind it. What is it specifically about metamask that causes it to be ripe for a lawsuit?
[00:13:59] Speaker C: That I can't say. All I can tell you is that.
[00:14:01] Speaker B: SEc seems to think that something, there's something different with the staking on the metamask wallet that makes it an unregistered broker. I don't know what that's all about. And they're talking about some of the.
[00:14:14] Speaker C: Other ones which do not have staking.
[00:14:16] Speaker B: On things like trust wallet as securities being offered an investment, contracts, matic polygon. Right. Mana, you know, Chili's sand, Decentraland, and then Luna.
[00:14:29] Speaker C: Luna is.
[00:14:29] Speaker B: I know for sure Luna does have that staking. The rest of them do. Not that I can recall. Maybe they do, but I don't recall seeing it. I'm curious, though, why it's specifically targeting metamask. Consensus for metamask. And I. My theory, it's only a theory, is.
[00:14:46] Speaker C: That they believe that there's something else.
[00:14:48] Speaker B: That they made a mask. When I say they is doing, where it kicks it over the edge for the SEC, and I don't know exactly what that is other than potentially the marketing, the advertisement. If that's the case, then I question why they didn't go after bitget wallet. Because bitget wallet throws that garbage in your face, and it does not block you from any of it. By the way, there's airdrops, there's staking. There's all sorts of stuff on bit get. I don't see hide nor hair of the SEC going after them. So maybe the SEC needs to taste of its own medicine.
[00:15:18] Speaker C: Speaking of which, Coinbase has recently filed.
[00:15:21] Speaker B: Lawsuit against the SEC, basically saying that the SEC denied access to documents regarding crypto regulation.
[00:15:29] Speaker C: Coinbase was trying to get more clarity.
[00:15:31] Speaker B: Around crypto regulations, requested it specifically from the SEC, was allegedly denied these documents via a FOIA request.
[00:15:39] Speaker C: A FOIA request for those that are.
[00:15:41] Speaker B: Not in the United States is a Freedom of Information act request. Every United States citizen is entitled to submit a Freedom of Information act request.
[00:15:51] Speaker C: And all it basically says is if there is government documentation not previously made.
[00:15:56] Speaker B: Public, the public can request to see that information under Freedom of Information act. It's a law that was passed that allows us to request any documentation unless.
[00:16:05] Speaker C: It'S under some specific seal.
[00:16:07] Speaker B: So, like Martin Luther King, documents are.
[00:16:09] Speaker C: Still sealed, even to this day.
[00:16:10] Speaker B: And that's sketchy, but they're still sealed to this day. These documents they're talking about are the.
[00:16:15] Speaker C: Documents being cited by the SEC as.
[00:16:17] Speaker B: Regarding any sort of legal action posed.
[00:16:21] Speaker C: Against these different exchanges where Gary Gainsler keeps saying, it's in the law, it's.
[00:16:24] Speaker B: In the law, it's in the. Coinbase is saying, well, show us the law, show us the doc, show us.
[00:16:28] Speaker C: What you're citing and show us what.
[00:16:29] Speaker B: You'Re referencing so that we can understand it. If the SEC is refusing to release.
[00:16:34] Speaker C: That documentation, it creates an unfair playing.
[00:16:37] Speaker B: Field because it means in court you cannot cite where the SEC is getting it wrong.
[00:16:42] Speaker C: Which is why I said that I believe Joe Biden may be sacrificing his.
[00:16:45] Speaker B: Own, you know, reelection chances because he's.
[00:16:48] Speaker C: Not reining in Gary Gensler, because he.
[00:16:50] Speaker B: Knows it's just making him look bad.
[00:16:52] Speaker C: To see Gary Gensler running rogue like this.
[00:16:54] Speaker B: Plus, with the whole overturning of the Chevron situation by the Supreme Court, basically says that the SEC is not allowed to do the very thing that they've been doing. It's all coming down like a house of cards around the current administration and Coinbase. Putting this request out there and then suing the SEC is giving them a taste of their own medicine. Quote, for years, financial regulators, including the.
[00:17:17] Speaker C: SEC, FDIC, and the Federal Reserve Board.
[00:17:20] Speaker B: Have used every tool at their disposal to try and cripple the digital asset industry. We demand transparency from our federal government. Everybody wants transparency from the federal government.
[00:17:30] Speaker C: But the truth is our federal government.
[00:17:32] Speaker B: Is not in the business of transparency until it's a well after the fact and no longer matters. A lot of the sealed records, sealed records about JFK, sealed records about MLK, sealed records about Nixon, sealed records where it's like decades after the fact, decades after they're dead, decades after most of the people who would care are either dead or dying, then all of a sudden, okay, let's go and release it now because there is no flak, because these people are gone.
[00:17:57] Speaker C: That's what we're dealing with here.
[00:17:58] Speaker B: So this is something to keep your eye on to see where this goes.
[00:18:02] Speaker C: Do I think it goes somewhere?
[00:18:03] Speaker B: I do.
[00:18:04] Speaker C: I do think that there's an opportunity now with the whole Chevron overturn decision for Coinbase to make some inroads and embarrass the sec, and by virtue of.
[00:18:13] Speaker B: That, embarrass Joe Biden and further jeopardize his chances of getting reelected. At a time when cryptocurrency is on people's minds, let's get into educational pieces. It occurred to me that I needed to do a better job sharing educational pieces. So my commitment to everybody listening is for every episode. So we do this once a week now. For now, for every episode, I'm going to be talking about something of an educational nature.
I want to try to introduce some of that, because there are people who.
[00:18:44] Speaker C: Are new or newer, and they don't.
[00:18:46] Speaker B: Even know where to start.
[00:18:47] Speaker C: Some of the things I speak of.
[00:18:48] Speaker B: They don't know what I'm referring to. They don't know where to begin because.
[00:18:51] Speaker C: They'Re coming in after the fact.
[00:18:52] Speaker B: There's an assumption that people are looking.
[00:18:54] Speaker C: At multiple disparate sources.
[00:18:56] Speaker B: I'll share that. I do think that you should diversify where you get your information from. I don't think that that nullifies my.
[00:19:03] Speaker C: Obligation to at least try to share some educational pieces.
[00:19:07] Speaker B: I'll apologize to any long time listeners who are kind of, nah, I don't want. I understand. We also have to be embracing of our fellow trader because newer traders are how the thing succeeds in the first place. That's why I feel like I have an obligation to do this. So let's start with the bare basics first. Basics, you have to understand what cryptocurrency, the form of it right now, what cryptocurrency has been made to be.
And when I say made to be, I'm talking about by everybody trading it.
And you have to contrast that with what cryptocurrency was intended to be, which is a different thing. It's a different paradigm.
Understanding that spread helps you understand why certain people, like Lyster at Cryptotalk FM, keeps advocating for a different world and advocating for different people at the top of cryptocurrency. And is largely against shillers, etcetera and so on.
[00:20:04] Speaker C: Cryptocurrency was intended to be the best analogy I can share for you would.
[00:20:08] Speaker B: Be the old school definition of a swap meet.
[00:20:12] Speaker C: In the old school definition of a.
[00:20:14] Speaker B: Swap meet, you might have something laying.
[00:20:16] Speaker C: Around your home that you simply don't want anymore.
[00:20:18] Speaker B: You don't like it, you regret buying it, you lost the taste for it or whatever, but there's somebody else out.
[00:20:25] Speaker C: There that wants that something.
[00:20:27] Speaker B: They want it, and there's something that.
[00:20:29] Speaker C: Person may have that you might want.
[00:20:31] Speaker B: And you're willing to make a trade because the value is equivalent.
[00:20:35] Speaker C: You want it bad enough, they want.
[00:20:38] Speaker B: Yours bad enough, such that you can make a trade and you're both made whole. That was the original intent of cryptocurrency, is the idea that it in of itself is the form of currency that enables such a trade without the fiat consideration attributed to it, such that you could say, well, I value ethereum more than bitcoin.
[00:21:00] Speaker C: You have ethereum, I have bitcoin.
[00:21:04] Speaker B: Let's trade. You didn't care about the money, you didn't care about the fiat. You cared about holding a certain cryptocurrency.
[00:21:11] Speaker C: If you ask the question, well, why.
[00:21:12] Speaker B: Would I care about the cryptocurrency if.
[00:21:15] Speaker C: It didnt have any fiat value?
[00:21:17] Speaker B: Consider at the time that the gold rush was a thing.
[00:21:21] Speaker C: The gold rush was not initially around.
[00:21:24] Speaker B: Fiat equivalent value that came later. Gold, in of itself as a precious metal, was the value you saw it.
[00:21:34] Speaker C: You appreciated for what it was.
[00:21:36] Speaker B: Same with diamonds.
[00:21:37] Speaker C: You appreciate it for what it was.
[00:21:40] Speaker B: Later. Promissory notes, which later became the physical dollars that we transact with promissory notes, became a thing. The promissory note basically said, we're promising.
[00:21:51] Speaker C: You that there's x amount of gold.
[00:21:54] Speaker B: Stashed somewhere at the Federal Reserve, at Fort Knox or something, and this piece.
[00:21:59] Speaker C: Of paper entitles you to it.
[00:22:01] Speaker B: It was always about the gold, though. It was never about that fiat equivalency that came way later when they decoupled from gold and created print and print.
[00:22:09] Speaker C: And print and print capabilities.
[00:22:12] Speaker B: That's why the currency was able to be devalued as opposed to increasing in value. Scarcity increases its value because it's scarce and you want it. But at the time, gold had a physical beauty to it.
[00:22:26] Speaker C: Outside of the rarity, it had a.
[00:22:28] Speaker B: Physical beauty to it, dollars. The promissory note had value in the sense it basically promised you this amount of gold was going to be yours and you would trade it in exchange for whatever goods and services. It wasn't about a dollar amount specifically. It was about, you're promising me this much gold in exchange for what was, what is it?
[00:22:51] Speaker C: Two cows and a mule, or whatever.
[00:22:53] Speaker B: The saying is, or part of the.
[00:22:55] Speaker C: Farm, or this amount of land or.
[00:22:57] Speaker B: Something else of value to somebody else that wanted it. But it was a trade. It was a transaction that was effectively a trade, not the type of transaction we do today.
What we made cryptocurrency, then, is we attribute it to fiat. The attribute to fiat is fake. I know that's controversial, but hear me out. It's fake. There's nothing that justifies the price that one pays for bitcoin. I challenge anybody to state on record what it is that bitcoins true value is backed by.
[00:23:31] Speaker C: It's backed by sentiment.
[00:23:33] Speaker B: It's backed by certain people, like the.
[00:23:35] Speaker C: Emperor'S new clothes, the story.
[00:23:37] Speaker B: Certain people believe its value is XYZ, and as a result, it skyrockets the perceived price because there are people paying those prices and there are people willing to sell for those prices.
[00:23:49] Speaker C: Which creates what? Liquidity.
[00:23:51] Speaker B: Theres transactional activity at certain prices and.
[00:23:54] Speaker C: Price ranges, which creates price movement, and.
[00:23:57] Speaker B: The price movement creates a market, and the market opens up the opportunity for.
[00:24:01] Speaker C: You to buy and or sell it.
[00:24:03] Speaker B: If you had that available, you could sell it for the going rate or sell it for higher. If you sold it for higher, you.
[00:24:11] Speaker C: May never sell it until the supply.
[00:24:13] Speaker B: At the lower prices was exhausted. If you think about cars, if you.
[00:24:18] Speaker C: Have the exact same car as your.
[00:24:20] Speaker B: Neighbor, and you're both ready to sell it, and you want to sell yours.
[00:24:24] Speaker C: For 17 grand, and your neighbor's going.
[00:24:26] Speaker B: To sell his for 15 grand, your 17 grand is probably not going to.
[00:24:30] Speaker C: Sell until your neighbor's 15 grand goes, unless there's something about your 17 grand.
[00:24:36] Speaker B: That makes it worth the 2000 more. But as I said, if it's the exact same car, there is no such a thing. That's kind of how we've got cryptocurrency, is we've created a presumptive value that is fake, and. But there are people transacting at those levels, which creates a market, which creates liquidity.
It is not the trade of cryptocurrency that it was intended to be, where fiat was not part of the equation, because trading it doesn't mean anything. If somebody were to say, I'll give you one bitcoin for something, they're going to want to get roughly $60,000 worth.
[00:25:12] Speaker C: Of value, whatever it is, in the.
[00:25:13] Speaker B: Most, you might have somebody that says they're desperate for that car that's valued at $40,000. That's rare. But you could, you know, and then says, I got one bitcoin.
[00:25:23] Speaker C: I'll trade you for that car.
[00:25:25] Speaker B: Okay, well, then that's the $20,000 difference.
[00:25:28] Speaker C: It's just rare, because think about it.
[00:25:29] Speaker B: If you had enough money to have afforded one bitcoin, you probably could have just bought the car straight out cash.
You have to understand how when I.
[00:25:38] Speaker C: Make the association to the emperor's new clothes, why I make that association?
[00:25:42] Speaker B: It's all fake.
Oh, you asked them the question, well, if it's all fake, why are people doing it? Because there are some people who treat it with value. In their mind, there's a value.
[00:25:54] Speaker C: I can't explain their justification.
[00:25:56] Speaker B: I can only tell you that the fact that there's a market means somebody sees value in it. The same is applicable to anything that we do, though.
I was actually thinking back.
[00:26:07] Speaker C: I had the original. We're talking the good transformers.
[00:26:11] Speaker B: The original transformers, the Optimus prime that.
[00:26:14] Speaker C: Came with the buggy in the back.
[00:26:15] Speaker B: And it was cast Dimetal became a collector's item. I had that as a kid, and some fat kid stole the buggy, and I never forgot that. But not having the buggy completely removed all the value of the darn thing. I'm sure my parents spent a fraction of the money that they would have to spend now. I actually bought it again, and I forget how much I paid for it. A couple hundred dollars or something from Japan. But the point is, at the time it skyrocketed value, it must have gone at least 100 x from what its initial was, because there was somebody out.
[00:26:48] Speaker C: There that saw value, like myself, that.
[00:26:51] Speaker B: Wanted to pull back these old things that we had from the yesterday, when eBay first became a thing decades ago.
[00:26:59] Speaker C: EBay's whole market is the idea, and.
[00:27:02] Speaker B: Etsy whole market is the idea that somebody out there wants that item.
[00:27:07] Speaker C: Somebody out there is willing to pay for that item.
[00:27:09] Speaker B: You think of retro video games.
[00:27:11] Speaker C: Somebody out there is willing to pay.
[00:27:13] Speaker B: Buku bucks for these games.
[00:27:15] Speaker C: That was why the video game market started pulling back retro games and doing.
[00:27:20] Speaker B: Remasters and remakes, because they saw they.
[00:27:22] Speaker C: Were leaving a whole bunch of money on the table.
[00:27:24] Speaker B: On a lot of these older games.
[00:27:26] Speaker C: You still have games like Parasite Eve.
[00:27:28] Speaker B: That they've never remaded, that are top.
[00:27:31] Speaker C: Tier popular games that they've never done a remake on, which makes no damn.
[00:27:35] Speaker B: Sense, where they're losing crazy money because they're selling for over $100.
[00:27:39] Speaker C: There get there's games, Collector's edition games.
[00:27:42] Speaker B: That were limited print, limited run games later would skyrocket to twice the value. Think of consoles, the PS five, the PS four when they first released.
[00:27:52] Speaker C: And there's a scarcity of supply now. I believe Sony did that on purpose.
[00:27:56] Speaker B: The point is, scalpers then skyrocket the value.
[00:27:59] Speaker C: Why?
[00:28:00] Speaker B: Because they know that there's some parents.
[00:28:01] Speaker C: Out there with desperate kids who want.
[00:28:03] Speaker B: To get this business. In summary, what I'm saying, cryptocurrency is nothing more than the fact that somebody sees a higher value than you might. Because you don't understand why is it people are paying those prices.
[00:28:17] Speaker C: It is enough to understand that somebody's.
[00:28:19] Speaker B: Willing to pay those prices. So you have a choice. Work to get your hands on some, which mining is one, but mining is expensive, or buy it. If you buy it, the whole point.
[00:28:31] Speaker C: Would be to buy it at less.
[00:28:33] Speaker B: Than market value so you can make a profit. That's what people are doing. That's why we have these dips. That's why we have drops. That's why drops are good. Those create more market. If it goes down, there are people down here who want it, just not at the inflated market price. There are some people who don't care about the market price. They're looking at the future state.
[00:28:53] Speaker C: All of that creates the order book.
[00:28:55] Speaker B: The order book is the market.
[00:28:57] Speaker C: The market is what creates liquidity.
[00:28:59] Speaker B: The liquidity is what keeps the thing moving.
[00:29:02] Speaker C: So if you're new to this whole thing and you're trying to wrap your.
[00:29:06] Speaker B: Head around it, it is simply to say the prices you see it is as simple as somebody out there is willing to buy for that price.
[00:29:15] Speaker C: Somebody out there is willing to sell for that price.
[00:29:18] Speaker B: Which means the price is constantly moving. And how do you get access to the supply? In most cases, you're buying it, planning to buy it at lower than market rate. That's why it makes better sense to buy when it's in the red, not.
[00:29:34] Speaker C: When it's in the green.
[00:29:35] Speaker B: Because it doesn't make sense to buy when everything's skyrocketing.
Do you see how I just turned that 360? Because most people, and chances are, if.
[00:29:45] Speaker C: You listen to shillers, they told you to do this. Most people are buying high.
[00:29:49] Speaker B: They're buying at the green, they're buying when it's jumping, they're buying when it's skyrocketing. They get wrecked because it goes back down. What you should do is stop the.
[00:29:59] Speaker C: Temptation and learn how to buy low, because your goal should be to buy.
[00:30:04] Speaker B: Way lower than the market rate so that you can make profit. When it does run up, you might be asking, well, then how? If everybody's doing that, it's never going to go up. It'll always go up because there's supply constraint. There's only so much out there, and it's any crypto doesn't matter.
[00:30:21] Speaker C: There's only so much out there.
[00:30:23] Speaker B: You can only have so much for sale. When yours exhausts, it's going to go the next price up. When there's exhaust, it's going to go to the next price up. When there's exhaust, it's the next price up. There are going to be people who.
[00:30:36] Speaker C: Do what's referred to as sell short.
You know what sell short is? If you've ever owned a home or.
[00:30:42] Speaker B: You'Ve ever shopped for a home, a.
[00:30:44] Speaker C: Short sale is when you're trying to.
[00:30:46] Speaker B: Sell a house where they're trying to.
[00:30:49] Speaker C: Sell it for more than what the.
[00:30:50] Speaker B: Home'S essentially worth, as in they owe more than what's left over, and the bank essentially makes a loss on the over it. That's a short. That's what's happening in some of these.
[00:31:00] Speaker C: Cryptocurrencies, is that people are selling extremely.
[00:31:02] Speaker B: Short because they're just trying to get out. They need the money.
[00:31:05] Speaker C: They don't care about Max profit.
[00:31:07] Speaker B: Whatever their motivator, there are people that.
[00:31:10] Speaker C: Always will sell short.
[00:31:11] Speaker B: It's always going to go down your job, and it's hard. I got it. Your job is to simply understand what I described. The game around cryptocurrency is simply that.
[00:31:22] Speaker C: There are people who are selling high because they can.
[00:31:25] Speaker B: And there's always somebody who's willing to buy high. There's people who are selling low because they must. There's always somebody who wants to buy low. If you buy high, what are you doing?
[00:31:36] Speaker C: You're minimizing your profit potential.
[00:31:38] Speaker B: Now, you might not care, but I.
[00:31:40] Speaker C: Suspect if you're listening to me here.
[00:31:41] Speaker B: Today, cryptotalk FM, you do care. So I'm encouraging you to flip your thought process. This is my educational wrap up. Flip your thought process.
If you buy low, and this is timing, if you buy low, you have to trust it's going to go back up. Depending on how low it went, that climb, that's your profit potential, and you can calculate it and count it. It may not be amazing, life changing money. You might put $100 in something only to see it double. You still made $100, right?
[00:32:16] Speaker C: So don't look at gift horse in the mouth.
[00:32:18] Speaker B: That's the trap.
[00:32:19] Speaker C: You're going after the million dollar date.
[00:32:21] Speaker B: Instead of, you know what? I'm just going to make whatever profit I can.
I'm not going to buy off that green, I'm not going to fomo, I'm.
[00:32:28] Speaker C: Not going to be tempted by that green candle. I'm not going to chase green candles.
[00:32:32] Speaker B: I had an episode about that one. I'm going to wait for discount opportunities.
[00:32:36] Speaker C: No different than what you would do.
[00:32:38] Speaker B: If you were at the store. You wouldn't go to the store and.
[00:32:41] Speaker C: Buy the product that's more expensive than the other one. Maybe you do for tvs if you're.
[00:32:44] Speaker B: Rich, but normally you're looking for discounts.
[00:32:47] Speaker C: You'Re looking for the lower prices, because in your mind, you know, it's stupid.
[00:32:51] Speaker B: To go after something that is higher price than something else if it's the same something.
All of that to say, this is a learning game.
[00:33:00] Speaker C: Everything's a learning game. You learn these things by trial and error.
[00:33:03] Speaker B: Some, like myself, will tell you the trick. The trick is not to be tricked. That's literally what it is.
[00:33:10] Speaker C: It's up to you.
[00:33:12] Speaker B: We can't tell you what to do with your money. What I will say, though, is the bottom line with this whole business is I always tell people, you've got to make up your own mind about what you're going to do. But the game gets easier when you learn not to let it manipulate you.
[00:33:29] Speaker C: You're being manipulated by people online, shillers, etcetera.
[00:33:33] Speaker B: You're being manipulated by all the charts that default to the hourly. You're being manipulated by the articles that.
[00:33:39] Speaker C: Are telling you this went 200 x.
[00:33:41] Speaker B: When it's already too late. You're being manipulated by every source around you. Lyster here is the only one that's.
[00:33:46] Speaker C: Telling you the truth. And that's the.
[00:33:48] Speaker B: That's what it is.
[00:33:49] Speaker C: I challenge anybody to go and compare my coverage to anybody else and you'll.
[00:33:53] Speaker B: See Lyster is only one telling you the truth.
[00:33:56] Speaker C: I might tell you that something.
[00:33:57] Speaker B: I'm looking at it. I got my on it.
[00:34:00] Speaker C: The Libra finance.
[00:34:01] Speaker B: I said I was watching it. It's still alive, far as I can tell, but might as well be dead. The site's gone. I can't tell. It didn't look like a rug pull. Look like it just failed. Well, that was expected, because rebasing seems to have gone the way of the dodo. Well, rebasing at one point was the bee's knees. Now people have to find new shinies. They have to find new ways to attract newer investors. That's the current trap, though, the Venus.
[00:34:28] Speaker C: Flytrap, as it was. You're going to have more of these.
[00:34:31] Speaker B: Traps, and it's incumbent on you to be smart about what you fall for, because at the end of the day, none of us have infinite money. And I wouldn't want to see you get your money took by some garbage that was trying to trick you out of it, because that's the game. Somebody else is trying to take it.
[00:34:47] Speaker C: From you, which is why they want.
[00:34:48] Speaker B: You to buy high, so that they can dump off of you.
[00:34:52] Speaker C: And I say to be careful and.
[00:34:54] Speaker B: Keep your money safe, because don't just blindly trust people online, not even me.
[00:34:59] Speaker C: Do your own research and be careful.
[00:35:00] Speaker B: With all the stuff that's going on.
