[00:00:01] 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] Thank you for that, Bailey. And welcome, everybody out there in Crypto Talk radio,
[email protected] extremely hot. The contractor had the nerve to say it was a nice day. It's not a nice day. It's a dangerous level of heat, folks. I don't care who says what.
[00:00:28] And, you know, I'm older, so I can't tolerate excessive heat like I might have done when I was younger. But who knows what damage might have been wrought by my being outdoors in excessive heat. Because I came from a place that it was pretty hot.
[00:00:44] Not all the time, but pretty consistently. And then my parents, they were born in a place that place was bad.
[00:00:51] You would step outside and it's just intolerable heat.
[00:00:55] You go inside and everybody's blasting their air conditioner like crazy. So it's like a fridge, but it was pleasant after being outside. That's how hot it was outside. It was that level of hot. It was brutal. I use Celsius like logical people do. I use Celsius. It got to 40. I've never seen it get to 40 degrees Celsius here since I've been here. I've never seen it. That's hot. Unreasonably hot. I felt bad for the contract. I gave him one of my ph waters because I didn't want him to be dehydrated or get sick or something.
[00:01:28] And, you know, he decided to take off a little bit early, and that's fine because I didn't want him to be out in the brutal heat. He was out, shirt off, and just going at it. But, you know, you're gonna. It's. It's heat stroke risk. You just don't do it. So my PSA to everybody. I understand, right? Some people love the heat. It's dangerous. Okay. At least do some misting fans or something. Put some sunscreen on. Do something to protect yourself.
[00:01:54] Stay safe. Because it's. If you're one of those areas, it's. It's brutally bad. And then, of course, thunderstorms actually run lockstep with excessive heat, if you didn't know that, because of pressure. So if you didn't know that, they go hand in hand and danger is all around. Let's talk cryptocurrency. I got a couple of bits and see what we can find out. We have some interesting things happen over the weekend.
[00:02:22] CoinDesk.com we're going to actually zoom out to the month chart for bnb, the Binance coin. This will throw you. And that's okay. I needed to do it because it hit a milestone, a very important milestone.
[00:02:34] Over the past 24 hours, BNB, a low of 800 bucks, a high of 8, just shy 840, currently at the $800 mark, has exceeded its all time high multiple times. I'm talking all time high multiple times. Its prior all time high was just over 600 bucks.
[00:02:51] Just like I think what a week ago or so somewhere actually is May.
[00:02:58] May. It actually got to 700 and not hit a little bit over 700. Got a new all time high just recently.
[00:03:06] Literally yesterday this week it just ran up, got to 800. An amazing run for Binance. I said that too. That Binance coin seemed like it was insulated from what was going on with some of the turmoil with bitcoin which by the way still is hovering between that 110, 120,000 mark. Not able to go above it. Some people ran analysis and they determined that money was new. Money was flowing into like Ethereum. And I have said consistently, and if you're new, welcome, but I've said consistently that Ethereum is the pointer, it's the compass. It's the one that tells me when we're on a major run across the board, it's not bitcoin. The bitcoin numbers felt fake to me. They always had not. Doesn't mean you don't get profit out of them. But it didn't feel sustained, I guess.
[00:03:53] So hovering between that 110, 120 isn't bad compared to where we were. Where was low as 12. Some people may not like bandits. I'm saying that what I see of the numbers of bitcoin and correlated by the numbers of Ethereum and Binance Smart coin tell me that bitcoin is kind of by itself. It's on the island by itself. And we are at least close to decoupling where Ethereum is coupled with the rest of them, but it's not necessarily coupled with bitcoin as tightly as it used to be. And I think that's great for Ethereum.
[00:04:27] That's my angle. I know various YouTubers tell you the opposite. They tell you that bitcoin's the future and do and that's great. I'm not discounting bitcoins potential to be a strong performer. I'm saying that I didn't see the same strong performance that I do see From Ethereum, let's spin over to Ethereum. Looking at its month chart over the past 24 hours. A low of 3700, a higher 3900 or just shy. Currently going back up to the 3800 mark. About 3700 mark as I record this. So Ethereum is holding its level very steady. Remember Ethereum not long ago was down like the 1600 mark.
[00:05:02] So it's well over or getting close to exceeding that next level to where it's going to go to its all time high again, $4,800. I think Ethereum is the, it's, it is the compass to that run that we want. It has never been Bitcoin. Bitcoin contributes but in this run, Bitcoin and Ethereum, the money does not appear to be flowing from one to the other is the point and that's signal that's significant. We need to pay attention.
[00:05:28] If the money flow is net new flows, it changes the game. It means that we can no longer rely on the price target of 1 to predict the other as cleanly as we might have hoped. It also means that Ethereum doesn't really have a ceiling and hopefully we get to the five figures that we were expecting to get before that we did not get before the SEC put out a press release. This was today and it talks about the crypto ETFs, the Bitcoin ETFs, the Ethereum ETFs. It does not affect you and I.
[00:05:59] It, well, it does not affect me, but it would have, but I chose not to. So I'll try to simplify what basically this means and makes sense when you break it down.
[00:06:11] So right now to participate in the ETFs, whether you're contributing as a custodian, so you're putting more in the pot, or you're like you and I, we're buying or we're investing or we're doing sales or anything.
[00:06:22] All of it still has to transact through fiat. It buys and sells, it all has to go through fiat. And there's a loss of value because of the, you know, constantly shifting price of cryptocurrency which is 24 hours. It's not within the eight hour banking hours threshold like other bonds and stocks and things.
[00:06:40] So what the SEC has basically done is permit what's called in kind creation and redemption. What that means is as one of these larger institutionals. So again the, this excludes you and I at this point. They're called authorized, authorized participant. All that means is that you have a certain amount of money invested in it. It's like in the six figures, minimum. That's why I say I could have, but I chose not to.
[00:07:06] But basically those larger players that are putting a lot of liquidity through the ETFs, they're making it to where you don't have to transact it in fiat to do these types of transactions.
[00:07:18] So imagine if you're trying to add more into a given ETF right now, there's going to be fiat transactions to be able to do that. If you're going to be able to sell assets to make something good, you got to transact to fiat. What this is saying is you can actually go to and from the actual cryptocurrency. So say the Bitcoin etf, you can go directly from Bitcoin itself without having to change to fiat.
[00:07:46] The real positive of this is that you're now not beholden to the inflation or the Jerome Powell situations with him not cutting rates. And the FOMC is scheduled to happen. And people believe he's still not going to cut rates, even though he really has no reason not to cut rates at this point.
[00:08:04] But without having to transact back to Fiat from the ETFs, it has the strong potential of improving the value of the ETFs over time because we're now not, we're not degrading it by sending it to a losing asset. Right. We now can transact with the cryptocurrency directly. But again, this is only for the big players and really the custodians, more so. But the big players are the ones that are going to benefit from this, should they choose to take advantage of it. There's no reason not to. It helps them on the books. It helps overall, it was a smart, logical thing that, that they've done. I thought it was really good to see that happen. So once again, because some people might misunderstand, this does not affect you. It doesn't benefit you, it doesn't benefit me at all.
[00:08:51] It only benefits the larger players in mix something that does benefit you and I. Senator Loomis recently introduced legislation to make Fannie and Freddie Mac, Fannie Mae, Freddie Mac count crypto. I talked about this on a past episode, about the fact that the companies were very hesitant, they were considering it, but they were hesitating to use cryptocurrency to consider your assets as one of the asset classes being cryptocurrency, because right now they'd ask you to sell it. And then there's the Seasoning, where you have to hold it as fiat for a period of time in a bank untouched. That's the whole mortgage process today. And I said that we really should revisit it. To look at those people that choose not to sell their cryptocurrency, right, they just want to hold on to it. It's an asset. A lot of their wealth is invested in it. But the mortgage company had been hesitant. Senator Loomis is trying to make them do it. So she introduced the 21st century mortgage act.
[00:09:47] That basically says we need to upgrade our underwriting techniques to require them to consider digital assets. When you're assessing single family mortgage eligibility now, there's a key there. Single family mortgage, meaning this would not apply to those rich people overseas that come over here and they want to get some sort of a quick mortgage on a multi family home or a commercial building. That's not what it's for. It's for single family homes. That's the thought behind it. It still could allow theoretically rich people to get those single family houses for flips. It theoretically could happen. But the flip volume has decreased because of the rates, mostly the rates as well as supply crunch in the United States. So we don't see as much flipping as we saw prior to the big bubble. That burst recently directs the government sponsored entities to recognize assets recorded on cryptographically secured ledger. So that's blockchain, right? Bars lenders from forcing borrowers to convert those holdings to dollars simply to be counted. So it's saying you cannot force them to sell the assets. You cannot. It's prohibiting them from doing it and it's requiring them to recognize it when it's blockchain based assets, which is essentially cryptocurrencies, which I think is good. I think it's really good. They're targeting this to the younger generation because some stats were ran and they found that the vast majority of cryptocurrency holders are under the age of 45. Those homo, those, those cryptocurrency holders, I should say by and large struggle to buy a home. They struggle to buy a home because obviously our job market is a scam. We know that the credit system is a scam. We know that like everything is built to go against the homeowner. You basically have to play by their rules. You have to have a bank account. You gotta have money stuck in there for three months or six months or whatever. You have to prove steady income over six months. You have to have 20% down. You got to scramble to get this insurance you got to do all these hoops, all to make the bank satisfied that you're going to pay back the house. Meanwhile, you might be sitting on a million dollars worth of cryptocurrency that you couldn't use.
[00:12:02] And many of the younger people believe that they're going to have strong value in cryptocurrency, whether true or not. That's what they believe. This is designed to help open that up, to allow that flexibility to happen. Now, we knew previously that there were conversations to at least strongly consider doing this and make that happen. It's just now you have somebody on the congressional side trying to codify and make it law to say, no, this is, you got to push forward on this one. Just to clarify though, this is not suggesting that your cryptocurrency would be used for payments. That's not what it's for. What it's for is to simply say, when we are assessing whether to give somebody a loan and we need to do a tally of everybody's assets, we need to include cryptocurrency. We cannot just exclude it and we can't force them to sell it. That's all it's doing. So it's really just to lower the barrier of entry to buying a house is all it's really doing. And of course, this slants towards the younger generation because they are statistically more likely to hold cryptocurrency. This is one of those broad reaching situations of the United States government trying to more readily embrace cryptocurrency assets. Unlike other countries like Algeria that recently criminalized all crypto activities with a sweeping ban on cryptocurrency, Algeria is one of those areas where at one point it was one of those strong crypto, you know, places supported it heavily, really believed in it, and then all of a sudden they just completely locked it the F down, stating significant risk to the country's financial stability and national security concerns over tax evasion, fraud, cryptocurrency being used for illicit transactions.
[00:13:48] Individuals caught engaging in crypto related activities might face prison sentences ranging from two months to a year. So not large. It's really just for fear if you think about the sentence.
[00:13:59] And then of course, fines of, you know, it's like a couple thousand bucks US Dollars. Like we're not talking something where they're treating it like they're not serious about this, this is a criminal enterprise type that they're doing it as. We really don't want you to do this. We're kind of afraid of the rise of crypto we're trying to lock it down best we can because we don't want to get out of control. That's what this is. So just to clarify, we're not. It is banned, but it's not an aggressive ban because the fine is low, the jail time's low. You only do that when you want to freak people out. Like there was a. There's a city out here in the United States, they have a ban on watermelon rinds or watermelon. But because of the Rhine, they said because the Rhine tends to tear trash bags in the can. So the police don't even force it because it's so stupid. That's what this is. It's a stupid law where they're just trying to put the strike of fear in people. And how do people get around it? VPNs. And that's what they're going to do. They're just going to VPN around it and then do their own business and continue on. Because I get it right in their mind, they think that it's ultimately related to criminal activities and scams and fraud and tax evasion, all that stuff. They're gonna do that with fiat anyway. Trying to lock down scams though, might be a good idea because of course, something like Pingu, which recently pumped almost 200% and believes was was shilling that Pengu at one point, he not shilling it, but he was talking about it for. It's another garbage token. But very recently, a couple days ago, allegedly this is alleged. I didn't prove this, but allegedly the Pingu team dumps two tokens worth $66 million with a bunch of scammers.
[00:15:39] I don't. I don't follow it. Don't know the background. If you're in this Pingu, I'm only sharing it because you may already know, but I'm only sharing what it is. But here's what was alleged.
[00:15:50] I don't know what's really true.
[00:15:52] Allegedly tokens were being sent from the deployment. So the deployer addressed two centralized exchanges.
[00:16:00] Allegedly over 200 million Pengu tokens valued at approximately $9 million sent to Central exchanges.
[00:16:09] Allegedly this is an ongoing pattern from the team. Allegedly the Pengu team transferred over 2 billion tokens valued at around $66 million to central exchanges over the last month. So people believe that Pengu is a scam. And as because of this transaction that the devs are alleged allegedly doing, it has attracted scammers to try to poach on the project as well, where they're draining through this other thing it's. It's a chaotic nightmare. I don't know all the deets what I can tell you for what I do know is what I just read that allegedly the devs been dumping on the on your heads. Okay and allegedly the these scammers they're sending garbage. I think it's garbage nfts I don't know for sure but garbage entities are something where you click it and it drains your wallet of all your money if you're a pengu holder. So point is that devs are doing a thing and then because the devs are doing a thing the scammers are swooping in there like buzzards to pick the scraps. So if you were in thought about being in wanted to be in considered being in this pangu garbage possibly because believes told you to do it. I'm gonna tell you that something allegedly is going on. I don't know what it is. If you have some information, feel free to share CryptoTalk FM hit us with the comment form.
[00:17:29] Speaking of garbage tokens, Solana's co founder labels meme coins and entities as digital slop.
[00:17:37] And of course you know I, I've called them crap. So I, I can't help but this but agree. I mean that's really what they are claims that mean coins and NFTs lack inherent value. Now everybody knows that. Everybody knows NFTs are crap. Mean coins are garbage. We know that. He compared to the loot boxes and mobile games which are randomized rewards criticized for encouraging excessive spending without guaranteed returns. That's a great analogy. I'm gonna actually steal that instead of the casino roll in the face. So maybe I'll still use that one. But this analogy is good too. The loot boxes and you pump it, you know, pay to play, pay to win a whole bunch of money you dump into this garbage game and you hope that you're gonna win something. The difference though with the loot box is there's no real money back to you. You're only doing it for the euphoria of winning a game and cheating to beat the people that you can't beat because you suck at the game. So it's a little bit different. So I think I'm gonna keep my roll the dice because it gets more apt in expectation of return of money. But he also said that while they generate excitement, this goes to the euphoria aspect their long term value is questionable. Of course it is. Now nobody has, nobody has an expectation that an NFT has a long term Value. Nobody damn sure has an expectation that a meme coin has a long term value. Of course this guy Yakovinko, he's been attacked left ways to Sunday on social media for what he said. But nothing he said is wrong. He said everything is the truth. It's. It's the truth. That's exactly the case.
[00:19:02] Look at what happened with Melania. Look at what happened with the Trump token. Look at what happened with the library. Look at what happened with all these other garbage tokens. Look at what happened. Just FYI, when we're talking mean garbage, strange in you. Do I need to call that out? Robo Enua. Then call that out. Saitama.
[00:19:20] How is he wrong? He's not wrong. That's exactly what's happened. And then NFTs are basically dead. There's only a select few out there and that's mostly international shores. Everything he said is correct. These are garbage things. They don't have any inherent value and people know that. But you've got a cult. You have a true cult with respect to NFTs and mean garbage. And these are people who just want to pump their bag and they don't like to hear anything even if it's the truth that's contradicts what they believe about their garbage trash. But what he's saying is the truth. It's the 100% truth and I hope you understand.
[00:19:54] This is great. This is fantastic to see this. So if you don't want to hear what he's got to say, he's gonna keep on doing it. I'm gonna keep on saying it because it's the truth. Meme coins and NFTs are crap and they're garbage. Just because they're make. Just because they're a scandal mean you can't make money. And just because you make money doesn't make them not a scam. Nobody suggested you don't make money. We're suggesting that they're gambling. It's what they are. They had no intrinsic value and it's the truth. Since they're gambling and since money is at play here, they're. They're games that are designed to give you a little bit of a euphoric feeling in exchange for the money that you invest. Speaking of games that give you a euphoric feeling, those porn games that you might have favored on Steam are not long for this world. Because a leftist. I'm going to call them that. Nobody else called him that. I'm going to call them that. A leftist group came out and has put A undue pressure on the payment providers, the PayPal, who's notorious for locking anyway, MasterCard, Visa, to go after what they said were platforms that offer games that support rape and incest and certain child inappropriate activities. That's what they said that they were doing. But as we all know, these companies take those kinds of claims and they'll just go the over aggressive. Okay, well screw it. If you don't want these types of games, we'll just ban all adult games. That's basically what they did. That's what Steam has started the process of doing is basically locking away the adult games. The gamers are flacking back on Steam for what they've done. But the truth is that's exactly what was going to happen. That's why you should not trust those payment providers. They have never been on your side and they are. When we talk about like that one idiot that said, oh, you can't block that, you can't block this. What are you talking about? Anytime you have to go through one of these payment providers, they can block you away from it. That's a ban books. They were like, oh, can't ban books. What are you talking about? If you can't buy the book, it's banned.
[00:21:51] This is a ban. It's a ban on certain things. OnlyFans went through this with the adult stuff. These are bans and they do it because the payment providers, they're centralized, they control the game.
[00:22:03] The reason I'm talking about it here is that people were talking about how do we get cryptocurrency to be the payment provider? Get away from the reliance on these numbnuts, the mastercards and the visas and the paypals of the world. I think it's a great idea. But as I covered in a past episode, the problem with the current transactional method for cryptocurrency, it still goes through centralized providers and then those depend on the Mastercards and the visas and whatever the Fs of the world. You can't get away from it. So unless you do direct cryptocurrency transactions left to right, you're not going to get away from it. At the long term, you'd have to be completely cryptocurrency decentralized with no fiat involvement during the transaction, left to right in order to decouple from that. And the framework is challenging to be able to do that, but it's what you would have to do. So you'd have to have some sort of service that allows, let's say Steam to accept Your cryptocurrency. Obviously there's like the BitPay, Coin Gate and some of these other ones. They're still beholden to some of these big players. It's not solving the problem fully, certainly not Coingate. BitPay is not as bad. I'm saying that there has to be a way to decouple from Fiat to avoid this kind of stuff to where there's. There is no company to just send a letter to and say stop accepting payments because we don't like that content.
[00:23:20] You have to have some way to decouple that. The only way to do that is there has to be some sort of framework rethink. I'm talking on Steam side. We have to rethink what that means when we say accept payments. How you cash them out is a different problem. Right, but accepting the payment should be anything. I should be able to accept the cryptocurrency directly. I could just send it straight to your wallet.
[00:23:41] You have the cryptocurrency, don't worry about the fiat equivalent. But Steam's whole setup is dependent on fiat because they're paying whoever it is to publish the game. So because of that, they'd have to change all of their, their substructure in order to support that kind of new world. And we're just not there yet. But that's the chatter going on as a result to these calls from these leftist numb nuts who are trying to lock down content.
[00:24:05] Again, they had the best of intentions, but you understand the slippery slope and we understand that them saying we want to go after this type of adult content, allegedly, and I didn't see this, but allegedly certain of the content providers that are more on the LGBT side saw their content being attacked more than others. The reason for that, when you talk about incest, there happens to be a correlation, statistical correlation to that in that community. And so those games, they were saying, okay, then that's where we need to start our ban. That's effectively a ban.
[00:24:41] Now they're pushing back. So now you got the gamer community pissed off, you got the LGBT community pissed off, all because these payment providers were allowed to just go roughshod with this nonsense instead of saying, we're not going to just react and cut all adult games, we're going to be thoughtful about which games we choose to block down.
[00:25:01] They didn't do that. Why didn't they do that? Because they didn't think they needed to. Because in their mind it doesn't matter. It's not, it's not worth the effort to re engineer our systems to accommodate these one piecemeal types of games. We have thousands of games that would take forever a human to do it and they're not going to do it. So those leftist idiots, they win because they're able to. We want somebody. Please think of the children. That's what it is and that's what's wonderful. I'm saying this because the future, as I've said, was always gaming. But this also shines a light on the necessity to get away from traditional payment transactionals. It's not hard, but Steam would have to be had the balls to step up and do it, which is just give me a wallet address, I will send you the cryptocurrency directly. You don't need a payment provider. You only need to have some sort of transaction to be able to cash off the crypto on the back end. That's an integration with an exchange. They could do it. They choose not to do it, they might rethink it because at this point it's going to continue. All these bans and lockdowns are going to continue. It's going to get worse where it gets better.
[00:26:09] I'll close out with some informational pieces because I think it's critically important.
[00:26:15] I talked about the idea of, you know, margin loans in lieu of selling your cryptocurrency. Right. You don't really need to sell it if you're able to borrow against it as you do need.
[00:26:27] And in the foreseeable future, as I've just talked about, we're not going to be at a world where we're going to be able to decouple from Fiat. It's just not a reality. But what we can do is we can use the cryptocurrencies, the strength of the cryptocurrency's value to give us access to Fiat when and if we need it for different types of things. Right?
[00:26:45] One thing that's going to be true and I'm going to, I'm going to peg this at the next five years.
[00:26:51] One thing that's going to be true is that it's going to be increasingly more difficult to buy a car.
[00:26:55] It's going to be increasingly more difficult to buy a house or condo or townhome. It's going to be increasingly more difficult to feed yourself, not because of price necessarily, but because, you know, we're seeing impacts, downstream impacts as a result of terrorists is what I'm getting at. Everything's going to be harder. It's the point. Medical care, everything's going to be harder.
[00:27:16] My recommendation to you, if you're hearing this for the first time, you won't have heard me say before, but cryptocurrency has a strong upside potential.
[00:27:29] From here, the strength of cryptocurrency's upside potential has a direct correlation to the weakness of your buying of your buying power.
[00:27:40] So in other words, the lower your buying power, it seems like it's you have greater opportunity for cryptocurrency benefit is what I'm trying to say.
[00:27:51] That means that you have an opportunity to invest now for something that is going to set you up for success later.
[00:27:59] I'm not going to tell you to throw all your life savings into anything, certainly not crypto. I will tell you that having some crypto is not a bad idea.
[00:28:08] It should be part of a diverse portfolio. By all means. It should be money you can afford to lose, by all means.
[00:28:14] And you should try to work towards a position that lets you borrow against it.
[00:28:20] Not so much worried about the price because I don't know that the price really matters nearly as much as it used to.
[00:28:26] It will, but right now I don't think it does. I think accumulation is your best friend.
[00:28:31] Anything that's part of the course, you know, if you're a gambler on the garbage, that can't help you. But I'm talking anything on the course, I think it's going to be your best bet.
[00:28:38] And within the next five years, the prices of cryptocurrency is going to be very interesting. The ETFs going to be very interesting, it's going to be a very interesting time. And all you need to do is prepare yourself for those that disruption in the, in the financial space. The idea that it's going to be harder to buy certain things with fiat, but the price and value of cryptocurrency is going to go up.
[00:29:05] You just have to mentally prepare yourself for that. You can do that now if you have the, the ability to toss a little money at it. It's not going to make you life changing unless you toss a lot at it. But you can at least get enough that you can use as a lifeline.
[00:29:20] If you start accumulating now. Don't worry about the prices.
[00:29:24] Try, I know it's hard, but don't worry about the prices. Just accumulate, right? Get some extra money, spare money. Go without Netflix, you don't need that garbage, right? Go without Disney, you don't need that garbage. Go without cigarettes, you damn sure don't need that. Go without alcohol, you don't need that. Go without fast food. You don't need that right there. Go without your Starbucks right there. You've probably identified a hundred bucks every paycheck that you could toss at cryptocurrency. And I do think that that's a valuable use of it. It's up to you. But I'm a strongly recommend, accumulate as much as you can within your means. That does not put you in the BRO House.
[00:30:02] Because I do think that we're going to hit a point where you'll look back. If you do that, you'll look back and you'll say, that was a good idea, and I'm glad I did it when I did it.
[00:30:27] Sam.
