[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] it's cold again. And I've never been so happy to be broke.
I say broke. It's. I got to put in perspective. I have money. The money's there, it's in the accounts but I am not at liberty to spend at the moment. And I'm pretty. I feel good about that because of why I did. I have now set up my place in such a way that I am off peak priced for all things electric.
Gas prices are all time low towards natural gas, but the electric bill off peak priced. It took some steady investments, time and energy to get to this point. But I am ecstatic to say I am off peak price to being the cheapest possible rate that you can get for electric. That's where I am.
So it just meant that I had to extend myself a little bit. I also have my.
A guy looks like Kid Rock. He's supposed to do my guitar gutters. Guitars gutters.
So money was set aside for a good reason. I won't have to do it again unless I until I move but for here won't have to do it again.
Everything's good for that.
I've ignored crypto because you know, I have my own glb so I don't use it for financial. But we got a lot of news bits that I'm going to be talking about.
I'm.
I'm confused about da Vinci. Jeremy.
I'll say I'm worried about the guy. He's. Something's wrong with him. You know, I'll talk about that too. It's related to the news bits.
Let's go and just dig in. I don't think it'll be too long of an episode, but we'll play it by ear.
Coinmarketcap.com and I believe, I don't know for sure, but I believe I may be very close to getting verified on Cormac A cap. I didn't apply for it, but I noticed they have sent me emails every now and then saying, hey, we're watching, we're watching, we're watching. Because I was doing posts and you know, interacting with people in the community and then today I dialed in, I happened to notice I have this little star next to our account name@CryptoTalk FM and when I Hover over. I did some analysis.
It is the same backend code as what drives the full verified badge.
It looks different so I'm thinking that it's some sort of a, you know, hey, in a little bit it's going to turn to a real badge. Like it's a temporary placeholder badge. That's cool if that happens. I don't know if it will but if it does, cool. Shout out to coin market cap.
I do think that their moderation sucks but ultimately I love interacting with the most of the community there. There are a couple marks but not a lot.
I love interacting with the stuff there. I love. I think it's hilarious especially with the Saitama stuff and the block decks. It's hilarious. That's why I hang out there every now and then. Feel free to check us out if you're in the block dad community. By the way, I did a survey poll that's on the comments. If you go down and I think on one of the most popular posts there and it just says we had to do it, let the community speak out and it's one of two things bullish or bullshit.
Great, fantastic neck and neck but more people think it's bullish as of right now, barely.
It's only up by like let's see, nine votes up but we got a good, good feedback on this one. It ended in August 21st but very good neck and neck of there's people who are still hopeful that it's actually going to be something so that's why I say I I love the community out there and you know, shout out to them if they do give me the verified because I get tired of seeing Wendy Crypto Wendy O. Quite frankly in the news bits the biggest news I think was the Cardano fiasco. The Cardano fiasco happened recently on November 21st.
Essentially what happened is and I'm trying to simplify this because it's kind of over technical the Cardano chain temporarily split into this last for a couple hours split into due to a malicious transaction that was posted the attacker Homer J. I believe it is attacker admitted doing it. Hoskinson, who's the guy over Cardano said he was going to contact the FBI and relevant authorities about what was happening. That's a malicious attack, right?
Apparently there was no funds lost. There was no other significant harm as a result of what happened. However, sentiment obviously went to the tank and we're in a red which I'll talk about and I figured I'd say that to end because all of the different news relates to the price charts. That's why I didn't start with the price charts this time because this as well as other news helps to explain chart. So I'm doing it in reverse order today.
So the sentiment on the Cardano side tanked. It went significant down, a major drop down. I think it was like 50 cents and went down to like, you know, 38 or something. It was a significant tank because of sentiment. It wasn't because of anything that helped with the chain, just sentiment overall.
And a long time ago I had said, you know, I'm bullish on Cardano, but I was told by multiple people that the guy, this guy Hoskinson is an idiot. So I've not, you know, I remember when Cardano was like three bucks and it's not even smelled that anywhere close since.
But I, I felt like the technology was sound. The fact that they were able to re merge everything without any losses is impressive in of itself. People then ask the question, well, if you look at Ethereum, it's kind of insulated from this kind of a problem because it's had this kind of issue in the past.
And the truth of the matter is that if you have, when you have people backing your project, like developers over the project, they're equipped to respond to things like this.
You might have been told by various YouTubers that there's this mythical magical world that a blockchain is just going to run on its own. It doesn't need human intervention, it doesn't need any, you know, it's a myth, right? Somebody's got to run nodes, somebody's got to run miners, somebody's got a triage, troubleshoot, redevelop, redeploy.
You're always going to need humans in the mix is the point. Now there's a gift and a curse to what I just said. The gift is it means jobs. If governments adopt and embrace cryptocurrency and blockchain technologies, that has not fully happened yet. So it's still kind of this underground. It's an underground where the governments have kind of looked the other way to some degree, but they're still under attack. Right?
But the truth is that these, this is a, this is an emerging job market at multiple fronts. You're talking for project management, you're talking for development, you're talking for DevOps overall, DevSecOps. There's all sorts of roles that are needed, audit that are needed to support blockchain technologies overall. If you didn't have this kind of force behind Cardano you'd never have been able to successfully recover from, from such an event. The humans are what made that happen, not the technology. The technology in of itself has always been flawed. Bitcoin was breached, Ethereum was breached, Cardano was breached. Solana.
The difference in behavior there, when Solana has an attack as it's had quite a few, it just halts the chain. It just stops. Right?
So I'm saying people are the key to blockchain success, not automation.
Because no form of automation can have helped recover from something like this. I don't care who says otherwise. I know again, YouTubers are telling you otherwise. There's mythical magical world of automation ain't gonna happen. I'm telling you that's never gonna happen. You'll never get to that point. Bottom line, you also have to be worried.
While I say humans are needed, you have to be worried that about the ineptness, look it up. The incompetence of humans. Because recently a major, major event happened affecting GitHub and other development repositories which are commonly used by blockchain developers and some of the tools. A malicious worm compromises certain of the crypto domains in this whole business. I'm not going to spend time talking about the over technicals about this, but this affected, this actually affected my client because they have a developer and I've worked with this guy and he uses a tool, one of the tools that was breached in this called Postman.
Postman. Suffice to say when you're working with web service type code, it lets you run scenarios and get a response and make sure the code's working. That's basically what it does.
Well this breach, this software, this worm, what it does, anybody that remembers that if you're old enough, 1988 Macintosh, which used to. Which that's what Apple is, but used to be Macintosh.
That was when the virus known as Scores hit first most dangerous for a time virus on that platform.
And this is prior to when Apple computers had any sort of antivirus or cleansing. You had Norton.
Norton couldn't deal with scores. A lot of these couldn't deal with scores. It was a big deal.
Scores is arguably one of the main reasons for the rethink about antivirus and virus detection. It was a huge deal. Scores, the way it worked is it would attach itself to benign files. So like notes pad files and text files and docs and folders.
So then back then we would have floppy disks.
The floppy disk we would put like our work files on it or our school files on it we would take that disk to school or to work, plug it into that computer, copy the files back. And so the virus is spreading by way of humans. Because we didn't have significant Internet at that time. There was dial up, you know, 56k baud modems and stuff. Right. And even less. But the real deal was humans carrying this virus around because they were loading these files that the virus attached to. That was scores.
This that we're talking about here.
It needed humans to basically spread. It needed humans to interact with a lot of these things.
And because it was using shared repositories, it's helping to spread around different computers. And then you use software that happens to connect to a, to an infected repository and then it downloads to your machine and then you work with somebody else and you drop a file and it's infected. That's, it's very similar I thought with the way scores worked in how this works. So this did affect cryptocurrency. And again, no matter what the youtubers are telling you, the human element will always be in play with respect to blockchain. And the ineptness, look it up of said humans is going to be a risk that you cannot anticipate. And that risk may also cause negative sentiment. Other things that may cause negative sentiment are recent moves from Coinbase who shuffled around 800,000 bitcoin close to $70 billion, which freaked a bunch of people out.
Unfortunately the freak out was a bit premature.
This is a lot of bitcoin, that's roughly 4% of what's circulating. But the reason it freaks people out is because it usually is a precursor to a major sell.
I said at the top of the show that it seemed like DaVinci Jeremy, something was wrong with him because he put out a couple updates that was talking about whale selling and whales dumping. And this is going down this and that and the other. And he's changed his format. I can't stand the change. Bleed's changed his format to a phone layout which looks like garbage I can't stand. So I don't watch a lot of their stuff anymore like I used to because they're changing to the negative. They're trying to appeal to the short attention span mobile phone crowd instead of just letting YouTube do it. Like if you, you know, if you have a video and it's landscape, okay, tell the person to rotate their frickin phone. If they really have that big of a deal. You shouldn't be recording in portrait. Just because people are on phones. It makes no damn sense. I digress. The point is that all this shuffling around and moving a bitcoin has caused a lot of people, online YouTubers and you know, so called analysts alike to freak out, thinking that there's something larger. Raw with bitcoin is as a precursor to a large cell. The other thing that caused people to freak out, this one's a little bit tricky to follow.
So I'm going to do the best I can to try to distill it down into basics about what was happening.
But the bottom line is that there are organizations that do classification and the classifications go to the viability of products that are offered. One such organization is called msci, I believe it is.
And msci, the, the problem with MSCI that I have is I believe that they have too much authority to dictate what happens with given companies and their classifications. So microstrategy, otherwise known as strategy, of course, is one of the largest bitcoin holders. You saw various of these articles telling you with a smiley face of Michael Saylor buying bitcoin. Buying bitcoin, buying bitcoin.
Well, MSCI did an analysis and they said, according to, hey, we're looking at how much you hold in digital assets. So they're not targeting just bitcoin, they're just saying digital assets. We're looking how much you hold of digital assets compared to how much you hold in these other passive funds.
And once we start seeing that you're holding a certain amount of these digital assets, we're going to reclassify you as this kind of an organization.
And this kind of an organization is not eligible for equity benchmarks. If you're not eligible for equity benchmarks, it's going to force you to do some liquidation on the back end for some funds which has a chance, chance of hurting your business, hurting your operational, because you have a threshold that you're trying to maintain which people treated as okay, but if that happens, they might dump bitcoin, which would cause a major crash. I said a while ago, you know, with Saylor and all them buying all this stuff, they're going to have to sell at some point. They're not going to just keep buying and buying and buying. At some point they're going to have to do a sell just because at some point they're going to need the money for something with a lot of this that you see is even in conversation because of the bitcoin crash that it went down, used to be like $127,000 down into the 80,000. So the, the buffer you know, because it's all based on the value of bitcoin. Right? So you're, you're losing billions and billions in value. That's not really real because you didn't sell anything. But he was using that as a cushion, was Saylor, and then launching these other products off of that offering yield and all this other stuff to kind of help sustain that level. But when you go down, you know, $40,000 per, that's a significant drop. This is the volatility aspect.
There were a couple of conspiracy theories that said maybe somebody triggered the crash to try to force Saylor to liquidate some of this bitcoin.
Maybe some of this crash is like it's, it's strategic that they're trying to stop, you know, Saylor from holding as many as, as much as he is.
I don't know that that's true, but that's. Some of. I did see that somewhere of, well, maybe this is strategic. Tried to get some dumping out of it. Point is that this, the Coinbase business, the Cardano business, some XRPS business, all of this that's happening all around the, the, the worm and everything else all hit at the same time, all caused a freak out, all caused drops across the board that caused some of the negative sentiment that we now saw in some of the price movement, like with bitcoin. Now we'll talk price, right? Bitcoin over the last month currently sitting at 87,000 bucks on a downward trend. It's still on a downward trend. And this is after recovery, mind you. It went down almost like $80,000 on the 21st. When the whole Cardano thing happened, when some of the rumors about strategy happened and everything, it went down. It almost hit the 80,000 mark and then rebounded.
And there's certain ones holding the line. That's why I said I'm not sure about these conspiracy theories because I don't see that there's negative sentiment per se and I don't see that there's a direct, you know, sell out or any of that to cause what they're talking about. It just seemed like all of these different factors hitting at the same time all resulted in a negative sentiment reaction.
And then there's people kind of holding off to say, are we going to get rate cuts? What's going to happen with MicroStrategy?
And I said a while ago, I'm not, I don't feel good about the remainder of the year for crypto's price. This is, that's what it is. That's what we're seeing Ethereum. Then again on the month chart, Ethereum has a slightly upward trend. Although Ethereum did breach down, went down to like $2,700 currently just shy of 3,000 bucks. But it went down beneath the $2,800 mark.
I was hoping that Ethereum would go down to like $2,500. I was hoping and I, you know, it didn't happen.
But in the short like with what we're seeing here of Ethereum, Bitcoin and all these other ones, this perfect storm of everything going wrong, you now have to look at what happens with strategy.
If strategy for why ever they do ends up selling the bitcoin, it's, it's going to be a domino effect because A, how much would they have to sell in order to offset what had happened?
So that's question number one. B, what are those downstream sell offs that would happen as a result of that sell? So the domino effect and then the liquidations that we expect that would likely happen for those that are gambling. Right. If they're, there's one's gambling it's going to go back up and they're longing it something.
What are those liquidations going to happen? And then this may be where somebody was talking about 72,000. I still don't see 72,000, but this might be where they were coming from is assuming strategy sells, what's the lowest it could possibly go down to, you know, 60, 70,000 bucks. But to me, hitting that low would take strategy, almost liquidating like I wouldn't expect. Even if they do sell some, I wouldn't expect it to go that low. I got it wrong with 88, but that's where we're hovering right now. It's just shy of 88,000 bucks.
So I was wrong in the sense that it went lower, it just didn't stay there.
It bounced back to 88,000 which is good, but it's a downward trend.
Does it go as low as 72? I just don't think so.
Maybe I get that wrong time will tell on this whole chaos. But that's, that's the big long and short about what's going on in cryptocurrency today. I am going to suggest to anybody, if you're in it, hold the line.
Buying dips is not a bad idea. But it feels like, it feels like the volatility is a little bit too steep from my taste anyway. But you might be a gambler, roll the dice and I celebrate your decision to do that.
But that's There's a lot happening. There's a lot happening. It's freaking people out, and we're not out of the woods, and it's going to take some time before we do get out of the woods.
I'm still gonna. Hope I'm not focused. I'm still on precious metals. By the way. I actually got. My other shipment just got shipped for the.
I think it's Arizona gold back. So I can't wait for those guys.
And then I'm gonna be trying to get some more precious metals just because, you know, I'm so much into that. But if I can get Ethereum to go freaking low enough, I'd love to get some more of that. I would love to. I'd love to get some bitcoin, but bitcoin would have to go pretty damn low for me to buy it at this point. I'm not telling you what to do. I'm just saying I'm not as into crypto as some others like on YouTube that are telling you to go to the moon. Do, do, do, Sam.
