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The Freakout From The Recent Minor #CryptoCrash Is Mind-Boggling
#Crypto #Cryptocurrency #podcast #BasicCryptonomics
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Episode Transcript
[00:00:01] 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. Thank you for that, Bailey. And welcome everybody out there on Crypto Talk radio. [email protected]. dot I have a confession I want to share for anybody listening to the show. By the way, thank you for listening to the show. We've been around now for a long time. Coming up on our third year, believe it was November 2021. So I want to thank you for listening to the show. If you listen this long, and if you do, welcome. But here's the thing. I got a confession to make. I, this whole fiasco that just happened over the last, over the weekend, the last couple days, and, you know, I was online, I don't do social media, by the way, but I was online looking at different things for different reasons, and I happened to stumble on coinmarketcaps community. And I, I was appalled to see how many people were just in absolute, you talk about chicken little. That was chicken little. That the whole sky is falling mantra dominated the waves. It was weird. It's the weirdest thing I've ever heard or seen. I've never seen the like. That's not true. I saw it back, ironically, in 2021 with Shib. They're just, this is falling panic every time the price goes down or something. And I learned that some of these people, they don't look at the broad spectrum of cryptos. They look at whatever their garbage token is. You know, whatever they're rolling the dice on. That's what they look at. And when it dips, they assume it's a scam. That's how bad it's gotten. Thanks to 2021 and Saitama citochain, we now turn people into raving skeptics. We turn people into absolute panic mongers. It's just I, so my confession, I didn't realize that there was this much fear and skepticism out there. And if I played a part in that, I'll apologize, because I didn't mean for you to be absolutely freaked out and chicken little just because something goes in the red. I said on a past episode, and feel free to go into archives, cryptotalk FM. It's out there. But I talked about the idea.
[00:02:15] Question yourself. Why is it, why is it when you go to the store, you're looking for discounts? You know you're looking for discounts. Your whole intent is to save money. You don't want to spend crazy amounts of money, you certainly don't want to pay full price for something. So why is it with cryptocurrency all of a sudden? It's this taboo to buy when it's read? Why is it so weird when people like myself, I think I'm kind of singular in this regard, but people like myself tell you repeatedly, I think the best strategy, if it's something you believe in, I'm not talking the garbage, I'm talking something you believe in. You know it's not going to fail. You know, it's been around forever. You hopefully know it's cyclical by now, that if it's green, right, you should be taking profits on the way up. When it's red, consider a DCA and stack more, right. But don't just sit on it eternally hoping to be a millionaire. I saw somebody on there today even who said, you know, if I buy 25 billion of this garbage, it was literally a garbage token. If I could buy 25 billion of this garbage token, will I get a lambo in the house? That's how. That's how bad it is. They are so, and I'm, again, I'm going to blame a lot of youtubers for this. Not all, but a lot of them, because they're the ones that set it in people's mind, this narrative that that's all it's about, that this token is just going to make you a millionaire. And that's what it is. Everybody's gambling. They're rolling the dice and I don't begrudge them, they're gambling addiction. I'm saying it's sad seeing so many people triggered. That's their sole focus. They buy a certain thing thinking, this will make me a millionaire. And they do it over and over again. Because consider if they were successful in this strategy, they'd already been a millionaire by now. If it was that damn easy, we wouldn't have this many people getting into cryptocurrency hoping to become millionaires because they already been millionaires. The fact that there's so many people hoping to be millionaires means that nobody's been successful at this shit except for a certain select few who got lucky at the right time. We're talking 20, 1212 years ago. The prices are way too high. If you were able to stack in, in the last crypto crash before this recent one, and I don't even call this recent a crash really, but the last one when bitcoin was $12,000, if you got in there and you tossed some stuff in there knowing it was going to go back up. Yes. That would have been a smart move. Very few people did. It was really just the large players that did, you know, the El Salvador's of the world when people thought he was crazy. But the regular layman did not get in because they. They had this end is near freak out panic reaction to dips. That doesn't make sense to me. So I felt that was strange.
[00:04:56] And I. This whole recent one that, again, I wouldn't call it a crash. It just kind of went down. And it had some sentiment stuff, and I gave some out of cycle updates about some of it, but I just dialed off, you know, it wasn't worth. I don't stare at the stuff. I don't just. I don't freak, I don't react. I did DCA into a couple of projects, but I didn't follow it that close. I was just kind of. I woke up, I saw bitcoin, got down to 50,000. I'm like, okay, whatever. I did an out of cycle update and kind of kept it moving. So since I didn't stare at cryptocurrency, I'll tell you what I was staring at, which was, I'm still doing work on my house, and I wanted to share a frustration, a rant, if you will, and then we'll get right into this crypto nonsense. Did you know it is just the hardest damn thing to find a masonry contractor? I can't imagine that. My grandparents, my grandfather on my father's side, he was a mason, and he told me a little bit about the business, and I kind of have a high level sense of it. But I never realized how hard it was to find a masonry contractor now that I really want one because I want to build a brick fence around my yard. Just enclose the damn yard. Because at this point, I'm kind of sick of it, of this wide open nonsense. Everybody around me has a fence besides me because these people weren't taking care of it. So. But I didn't realize how hard it was to find a masonry contractor. I sent an inquiry out. There's a construct. You know, they do a general contracting type thing, thinking, okay, let's get you out here. They're like, can we come out, check it out? Sure. And I said, anytime after 10:00 a.m. that's how I am. I work from home because I run my own business. So I'm like, anytime after 10:00 a.m. and I gave the address, these nubnuts call me. I'm outside working the yard. They call. I missed the call. And then they ping back on the same tool saying, let us know, we could talk to schedule a quote to do do do do. I'm like, what the fuck is wrong with you? I told you, any time after ten, and I gave you the address. Just show up anytime after ten. What do you think anytime after ten means? Or if you just have to lock something in, just say, can we come out at two through the tool that I contacted you at? And I'll say, yeah, that's either way. Just show up anytime after ten. And I can't get to do that. Every single contractor has this narrative that some girl, because it's always a girl, has to get on the phone. Hi, is this Dante? I'm calling to verify your appointment at Am and your address.
[00:07:20] And you're looking for this server.
[00:07:23] Okay, does this time work?
[00:07:26] Well, we don't have anybody at that time. Can we come and eat and this is a waste of effing time.
[00:07:32] This is a chat that I'm doing right. Just figure it out. I don't care. I said anytime after ten, figure it out. Come back with a time that does work after ten and just show up. That's it. I don't need to talk to your girl at the front desk. I don't care. It's a waste of staff. You're wasting money paying this girl to call me and just recite my address and recite. I'm giving it to you in writing. It's not wrong, it's not spoiled. You can paste it into bing maps. Don't use Google Maps, use Bing maps because Bing maps is awesome. And you'll see, it takes you right to the house and it gives you the directions and just show up. I'm done ranting. Let's talk this crypto nonsense.
[00:08:18] I really don't want to do this, but fine. Coindesk.com dot we're going to start with coindesk.com. quote s ethereum chart zooming out to the month chart. And ethereum did not recover from the chaos that happened recently. A low 2400, a high of 25 50, but trending downward, and currently at 24 and a half. 24 and a half. So 24 50 ish did not recover anywhere close to what we saw with the bitcoin. Bitcoin did recover, but nowhere near what it was because remember, we got as high as like 68 grand very not recently. So right now, bitcoin looking on its month chart, it took a crap. It was trending downward. It's starting to come back up and recovered a little bit of what it had lost, a low 54,000. A high of 57,000. Currently trending 56. So it's not as bad as ethereum, but certainly not as good as we expect it to be. And just to summarize, what I said on the out of cycles, and there's part of this was, you know, it's like a domino effect of everything. A perfect storm that's happening. The jobs thing, there were people on coin market caps, community. I mean, geez, they're just, they don't understand. They're saying that the devs rug pulled it. They're saying that this is a scam. They're saying that this Shiller dumped on the project when they didn't for the first time. Like, they're saying all these, it's just paranoia theories about what's going on. And none of them are correct because everything is down. Everything was trending down. And they seem like they don't understand, no matter how hard. Like, I went viral with one of my posts, because I just simply said, you know, if you bought a car for $40,000 and then you see it for sale for 5000, does that mean you sell it? What the hell's wrong with you? Why would you do that? It's devalued. Why would you sell it when it's devalued? But there's this narrative that you're supposed to sell your cryptocurrency when it's in the red. That's called fomo panic selling. I don't know why people do that. Why aren't you selling for profit on the way up as it goes up, sell and take chunks instead, there's this persistent, pervasive narrative that you're supposed to just sit on it and hope that you get your quote Lambo and your quote house. And I blame some of the shillers, not all of them, but some of the shillers, for promoting that narrative, especially the ones that pose near that, like a Richard Hart, for example. Even bit boy crypto did it at times, like some of these big ones, they do that nonsense, and then they get people believing that that's really the right answer, or that's even a possibility. When truth is, in most of those cases, they're making money off of the fact that they're influencers. They make a deal with whatever projects that give them money. And that's really their primary stream of money. It's not the regular token trades, certainly you have ones like a davinci or some odd that did get lucky at a certain point in time and they made a bunch of money off of bitcoin or whatever it was. And so they're the outlier exception. The vast majority of them not rich because of crypto trading. The vast majority of our rich because they make deals with the different crypto projects because these people have large followings like a Logan Paul. Right. And as a result, they're making major amounts of money not off of anything other than the partnership necessary to get you in the door and give your money to a project. And then you get treated like exit liquidity. It might not even be that investor. It might be the devs themselves. The money is not made off of crypto trading the vast majority of the time.
[00:11:30] Certain of the influencers slash shillers out there at the lower level. We're not talking at the ones that make, you know, hundreds of thousands of views or whatever. We're ones talking about the ones that make 2000 views or a thousand views. You know, they're in the moderate range. They don't make significant money off crypto trades. They're trying to build up the following, they're trying to build up their channels. They're trying to build up their platform. Anybody that knows hotep Jesus Hotep Jesus was on YouTube. He recently quit YouTube. He went to kick. I looked at kick. I think kick is crap. But I, hey, he is his hustle. He has a strong following, is a lot of followers. He's in cryptocurrency as well. But he talks about a bunch of different stuff.
[00:12:09] He's, he was mentioned, I believe was mentioned on Alex Jones. He's, he's well known if you follow those platforms and he has, he builds his following. You know, he takes on the donations and everything else. I think he has a membership of some kind. I think he did gaming streams at a point. I know he was doing chess streams. So he's doing all of these things to generate money. You're asking. Yeah, but what about you do Lyster at Crypto talk FM does not, we have the triad, but I don't, I don't promote it. I don't market. It's just out there. It's on the site. If somebody goes and they're like, oh, that's a way to support the channel. Hey, great, there's, we have the tip jar. It's actually still out there, believe it or not. It's just out there. I don't promote it. I don't market it because it doesn't matter, because I make money on my own endeavor. My money stream comes from my own job. I do this because I like doing it, not because I need the money on it. Some people, they do it, they do the double job, you know, they do the real job, and then they do this to make some money on the side as a gig. Some people do this full time. It runs the gamut. The point is, with what happened with the recent drops, a lot of different things played into factor. All I said, and this is one of the ones that went viral, too, is I, you know, there's people out there swearing, just dump this, sell this. People that openly admitted, you know what? I'm freaked out. I can't deal with this. I'm dumping it all. Hey, that's your. It's your money, whatever. But I said I think. I emphatically disagree. I don't think that's the right thing to do. I don't think the right thing to do is to react to what's happening, especially if it's token or coins that you believe in, ones that you know they're going to recover, the ones that you know they're going to bounce back. It may take some time.
[00:13:52] And there's no such, you know, there's no such thing as loss. Unless and until you sell, right. If you put in $500 to a project and it craps down to $5, you didn't really lose $495. It's just a temporary something. At some point it's going to recoup and it's going to go back up, especially if it's a coin, right? Let's say Ethereum, or Tron, which was running very recently, or XRP, which is starting to run up. If it's one of those, you know it's going to recover. What are you worried about? Why are you freaking out about it and just let it marinate? But there's people so fixated. I blame on the, again, the houses and the Lambos and all this crap that doesn't matter, that anything, the perception of loss gets them set off and triggered because they're investing more than they can afford to lose.
[00:14:35] And I've said invest what you can afford to lose, not invest anything that you care about. If you're investing money because you care about it and you want to try to multiply it, that's a gamble. You're rolling the dice, and that's your money. But I'm not going to support that. Why would you do that? Because in crises, and this is a minor crisis, but in crises such as these, all it's doing is setting off your emotions. All it's doing is causing you to fomo react. All it's doing is causing you to panic. All it's doing is adding to your stress. All it's doing is actually considering what you did, you're making yourself lose money you would not have normally lost.
[00:15:12] So if you learn to train yourself to not overreact to what the hell's going on, you're going to have a better time of it. If you're just sitting there waiting for your lambo, all you're doing is setting yourself up to lose. You're setting yourself up for that money to be lost. And if you're putting more money in than you care about, you're setting yourself up for failure. And I don't want to see that happen to anybody. Listen to me, because it doesn't make any sense. Like the money I have in cryptocurrency right now, today, there's not a substantial amount I have in cryptocurrency. Somebody who's making a, let's say 60,000 a year, I'm just throwing out of a salary, 60,000 a year. Let's say they get, they got lucky and their rent is 1200 bucks a month. Okay.
[00:15:57] The amount of money I have in cryptocurrency right now would feel significant to somebody at that level. It would feel like that would be just having that much money would help them, especially if they had kids, especially if they had college, especially at the other expenses other than just rent, as most people do, that the amount I have in it would be substantial to those people. But to me, it's throwaway money that I've never, I've not put more money in cryptocurrency in months. The most I put in was the thousand for Kraken, where I was gonna, you know, I put a basically a short on 50,000 because I think it might, I thought it might have gone there and then I had pulled it and I put it into an Ethereum project because I figured Ethereum is going to have more of a profit potential motivation. If you look at Ethereum right now, and trust me, this will come full circle here in a moment. If you look at Ethereum right now, Ethereum's all time high is $4,800. We are $2,400 now, 24, 50. So that's a lot of profit potential on Ethereum, the core Ethereum coin. But you think of all the other tokens that are paired to Ethereum, and they would go down, but the vast majority of them are having a little bit of run after the recovery because they're still the pairs to bitcoin on the central exchanges, which told me there's a significant opportunity for run up on anything on the Ethereum chain, if Ethereum can get its act together, not just Ethereum itself, but all the other ones that appear to Ethereum. So I said, let me just take this money and dump it into an Ethereum or something and just forget about it. And that's what I did when it was going down this past weekend or whatnot, all I did was DCA. I'm like, okay, I'll just stack more, stack more, stack more. The one project, which I'm not going to name, but the one project that I had my eye on, that it's, it's literally throwaway. And I was kind of testing the waters because I had a gut feeling about it somewhere along the line, based on what I saw, the project I had, you know, a small amount. It wasn't, it wasn't a lot at all. And it was like a $1,000 in this business, no problem. It kept going down beneath $1,000. Okay, so I took some Ethereum, and I would dump $100 in it to get it back over $1,000 each time. That's DCA. As it's going down, you're buying more to get to a price point. That's your target. In my case, it was $1,000. I don't want this guy to go beneath $1,000 of basic value. So to do that, I have to buy more. If it's going above, it's going signal high. Let's say it goes to 2000. From 1000, I would sell for profit down to 1000 as it goes up to reclaim what I put in. In this case, I've not reclaimed any of it, primarily because I see that there's a potential Ethereum project, and with Ethereum at the price that it is, I see that there's an opportunity that this could go, arguably dropping two, maybe three zeros off of it. And if it does drop two or three zeros off of it, that's a huge amount of freaking money. And so I figured because it's throwaway cash, the worst thing I could do, at worst, I could say, let's let this thing double right now from where it's at, let's let it double. Okay, so it gets to $4,000 off $4,000 I withdraw $1,000. If I withdraw $1,000, I've recouped what I put in it. Right? The rest of it's just excess, it's profit. Same thing I did with Trump 2024, when it was running up when it first launched. It hasn't launched. It hasn't run up since. But it's another Ethereum token, which means it has a potential to. And I keep my eye on a base price that I buy in at such that its multiplier is significant enough to make it worthwhile, which was my key and the message I'm sharing. I looked at bitcoin, and the reason I didn't buy into bitcoin this time is it didn't go past $50,000. That means its profit potential was not significant compared to what Ethereum. Ethereum has more upside. Ethereum has more opportunity to multiply. BNB even has more opportunity to multiply and go up. Avax has more opportunity to go up. Solana has more opportunity to go up than bitcoin does right now. If we get a crash on bitcoin down to like the 12,000 again, you better believe I'm stacking on the bitcoin side, because at that point it's guaranteed six x, right? So I'm looking at the multiply when I decide what to buy into, and it's usually going to be those projects that I know they're going to run back up. And I'm not worried about these dips. And I might have a garbage token here or there simply because the multiplier is going to be more substantial over those.
[00:20:30] This is my strategy. This is what I do. It doesn't mean it's the right answer for you. That rhymes. I'm saying in the big picture of what I saw over this past weekend, I was shocked and appalled. I was appalled at such freakout and such panic and such craze. It was weird. It's like nobody was looking at bitcoin. Nobody was looking at Pepe. Pepe cracked. Pepe took a major, I think, like a billion dollars went off that business. And yet people swore their project, which I'm looking at their project, and it's actually a legitimate. Even if it's a volume, it's a legitimate something. It's not like Saitama or side of chain. That's basically a scam. I'm talking something that's a legitimate something. And you're telling me that the devs are draining the project and the devs haven't been seen in freaking two years. Come on, people. So this weekend was bizarre. It was a bizarre land of absolute freak out and chicken little that I never want to see again. I'm going to see it again. I'm sending a message to everybody out there. I'm blaming all of the YouTube, not all, but most of the YouTube folks out there for setting into people's mind and generating this unreasonable hype. And, you know, cult leader Russ and all these people generating unreasonable hype on these, these impressionable people. This is not what we should have. This is not what we should support. This is not what we should want. And cryptocurrency is a world where people are just triggered and set off and they go nuts, so crazy because they want to get rich. And the bottom line is they might get rich, but you should not bank on getting rich. You should first bank on making some profit. If you're going to invest in something, getting profit should be a primary motivator because it's still more money than you would have had. If you think about how much money you could put into something, make a couple hundred bucks here, a couple hundred bucks here, a couple hundred bucks here, and train yourself to just stack hundreds of bucks here and there. Imagine how much easier that is. There used to be an old rule with the whole roulette at the casino. Since we're talking about gambling at the casino, you could literally stack chips on every single number on that freaking board. And you're going to win. You're guaranteed to win. The trick is to make sure that you stack more chips on the ones more likely to get you a win, which are the fifties, the ones that are going to get you a color, black or red. And the ones that it's almost, it's a higher probability you're going to win something. That's where you want to stack more chips. It doesn't mean that you don't stack chips on everything because they might get you to the moon.
[00:22:51] Cryptocurrency is very similar in that regard. A diverse portfolio, investing in multiple things and you happen to sway more money into other things that you have more confidence in. But then training yourself not to overreact when you see this kind of disruption happen, because it happens before, it's going to happen again and it's going to be worse each time out, especially as we wash out some of the garbage that's been in there. You're, trust me with some of these institutional, some of these big players that are stacking bitcoin right now. I guarantee you there's going to be some sort of financial disruption that causes one of them to crash and burn, and then we're going to have this major liquidation event because of a bankruptcy where the thing's going to crap again because that's just the way it is. That's the flaw of a central purchasing type deal where one player is stacking the vast majority of bitcoin. Could you imagine if this micro strategy or Michael Saylor or whoever the hell just absolutely crap the bin, you know, they just die. Whatever bankruptcy, all this bitcoin that they have, the government's just gonna put on the open market and it's gonna crap again. That's what's going to happen. Because we've allowed that to happen and you have to just accept it and not put more money. Then you're okay losing. If you do that, you're just setting yourself up for stress and unnecessary panic and freak out. That doesn't help anybody. It doesn't help you, it doesn't help your family. Try to take it as a conservative approach. Understand when you're going to win and when you're not going to win. And certainly it's not easy to predict these things, but you can do a better job by not overreacting every time there's a red. Understand and treat it just like you were shopping at any store. If it's a project that you are good on, and it's a project that you're reasonably confident in, treat the red as a discount and a buying opportunity to buy it on the cheap so that you can have more of it. That way, when it turns green, hopefully you're selling for profit and you take your money back and then let the rest of it ride and continue to cycle and diversify your portfolio on top of everything else. Please.
[00:24:46] You can completely ignore Lyster crypto FM. That's completely up to you. I'm saying I would recommend diverse portfolio, smarter trade strategy. Don't freak out. Treat red as a discount. If it's something that rhymes, if it's something that you believe in. I'm going to close with a little bit of news. I didn't want to talk about news today because it didn't. There wasn't. We know what the news was, right? I wanted to save all news to the end, and I'm only going to do this one. I got my rant out of the way now, so I want to talk about this one because there's. I don't want to say have a vested interest, but I have a partial interest. In upfront disclosure, I'm going to be talking about an organization for which, at one point, they were a customer of mine. I'll leave it at that.
[00:25:31] Federal Reserve is no longer doing their enforcement actions against Silvergate bank. What they're doing is they're required to liquidate and wind down the operations after all that's done, and they liquidate all the assets, but make sure that people didn't lose their money completely after all that's done. Then the feds and everybody said, all right, we're gonna leave you mother fathers alone now that you're out of the way, and you're no longer gonna kill the business. So let me connect to try. There's a lot to this. I'm gonna try to connect the dots with this business. Silvergate bank, there was a. There's a couple of banks, I forget the one that was out there in Silicon, I think was Silicon Valley bank. Even a couple of banks that were called crypto friendly banks. These are banks that were supportive of storing assets that were connected to cryptocurrency, regardless of the regulatory questions around doing so. So they would say, okay, you want to hold the backing assets of a fiat that happens to be connected to cryptocurrency accounts here. We'll openly do this because we want the money, right? We want the interest and everything else. So Silvergate was one of these banks. Silvergate was one of the. I think there was like three main ones that were crypto friendly. The other two were toasted. Silvergate bank. The feds came down on them. And largely, the feds basically said, you know, it's. It's. First it was the SEC, but there was also the money itself. Promises made, statements around insurance and things that. It's like, you can't say this, you can't. That's not true. This is not true. You know, if you, as a customer, have an account directly at a bank, meaning you went in there, you gave your identity, you open the account in your name, you gave your identifying information, like your Social Security number, you are protected by FDIC, which is the insurance that covers you up to $250,000. In the event of some sort of insolvency by the bank or some sort of incident that was beyond your control and not by your doing, you're controlled by the insurance, the FDIC. What was happening is that a lot of these banks and even some of the exchanges, like, I think Robinhood did it at one point with their I business, they were making a statement that said, your assets are protected and insured because they're stored at the bank. The problem is, is that as a custodian, so take in this case, Silvergate bank, custodian of the assets on behalf of whichever organization. So let's say FTX. In this case, just because FTX had assets that were stored at Silvergate bank, it didn't necessarily provide insurance to FTX, and it didn't provide insurance to anybody else who was trading on FTX, as was stated. The idea that if I'm on the FTX exchange and I would do a trade, and I have my assets stored there, and it happens to be stored in Silvergate bank, it doesn't give me insurance, it gives on. In this case, whoever the account owner is would be insured. In many cases, it wasn't even FTX. So the statement was false because you are not the one who directly opened the account with the bank. If you open the account with the bank, the bank was not going to allow you to create a cryptocurrency account because none of them support that business. So the only way that you could store the backing assets for cryptocurrency was by way of these exchanges. That whole chain, that whole questionable chain is arguably the reason for these collapses, that you see these large scale collapses, because you have so many people in the channel, and then promises are made, and then more people get on board with it, and then everything crumbles because the feds come after them and they highlight, you can't do that. That's not true. The big players basically jump out. When they jump out, it affects the reserves. It affects all the money that was on reserves. So then promises would have been made to some of the lower level players based on the assumption you're going to have this large level of money over here, and the fact that some of it might have been reinvested in other ones. Like we saw some exchanges were reinvesting assets into shib and using it as a store of value or reserve. And you can't do that either because it's a volatile asset, it's not stable coin. And then some stable coins, as we saw, like USDC, that are just algorithmic magic, Internet money, and then they fall apart because the backing asset, in this case, bitcoin, was yanked off things. So everything that you saw, all of these disruptions, all of these crap outs, all of it ties back to this convoluted chain that I don't want to say it's a Ponzi scheme and it's not really a pyramid scheme. It's really just this. I don't even want to say scheme or scam, because what they're doing is they're skirting the law. They're saying, the regs don't say, we can't do this. So let's assume that we can, and we just have to be careful about it. And as long as we're careful about it, we can make it work out. And as long as we keep getting new assets, we can make it work. The problem is that, how is that any different than what Bernie Madoff did? Because that's essentially what he did. He took some money, he set up some stuff, and then he contacted other people and promised them returns, and he kept. And the returns were based on getting new people into the business. If he didn't get any new people into the business, he wasn't gonna be able to give those returns to people downstream, which created a pyramid scheme, essentially. I mean, he was declared as a Ponzi scheme because he was using that to enrich other people. I would declare it personally as a pyramid, closer to a pyramid, because it was ultimately certain people that were getting it rich based on the people upstream, which is essentially a pyramid scheme. So to me, this whole fallout with Silvergate bank and FTX and all these other ones is very similar in nature to how they're dependent. There's these interdependencies that if they crumble and crack, nothing works. And when nothing works, it all crashes. And when they crash, you have a sentiment problem, as in people are afraid and they don't know what's going on, and they fomo sell out. But you also have loss of assets by way of either liquidations or seizures. It doesn't really matter. Or it could be government actions, the ban of China, those things. These are disruptors that you can't predict and you can't do anything about. See, in the stock market side, we have less of this disruption. It happens, but nowhere near to the degree that we have these, because the stock market is heavily regulated, without regulation, it means that anything can disrupt the price of these assets. Because remember that bitcoin's price is largely assumptive. It's based on whatever somebody's willing to pay for it. It doesn't really do anything at the moment. We can talk about all these different sources and tools and services and stores that accept bitcoin. We know they don't accept bitcoin as bitcoin. They accept the fiat equivalent value as bitcoin by way of a trade, like a change now or whatever. It is now payments. They don't accept true bitcoin, because if they accepted true cryptocurrency in any form, they would accept it on its own value face not equivalent to fiat. The equivalency to fiat is what creates the risk, because they only care about making sure their bills get paid, their salary gets paid, their taxes get paid. That's all tied to fiat. As long as everything is tied to fiat, it means these kinds of things, and this kind of disruption will continue to happen. And that's why the banks are so skittish and nervous about supporting it, because they know they're heavily regulated and the oversight is tight. And something like this can happen where the feds can come in and just shut you the hell down, as has happened with multiple banks over time. And that's what preceded the 2008 bubble, by the way, is shutdown of all these other banks. And over time from the Lehman brothers and the Bear Stearns and the Wachovia and the Wahmu and all these other ones that no longer exist, they completely shut down because they were playing this game of dancing around the situation with homes. The idea that a home has a certain value, and it's a perceived value, it's not a real value. And people are using their home as an ATM machine. They're withdrawing cash. You're seeing the same thing, the cryptocurrency market, and it's not going to get any better before it gets a lot worse. All in which to say, never have I told you not to take action. Never have I told you not to invest. Never have I told you to stay away from it. I said, do what you will with your cryptocurrency. Simply understand that what we see and what we saw this weekend is going to happen again. That's all I'm saying. It's going to happen again. You have to train yourself to manage your own risk according to your risk tolerance. What is your tolerance for risk? My tolerance for risk is arguably pretty darn low. It doesn't matter that I make a crap ton of money, I'm not willing to give it to incompetent devs. Well, we're surrounded by those. I can invest in some of these mainstream coins, but they're already at a high market cap, so the profit potential isn't there to warrant giving a lot of money. So I'm very measured about how much money I give to these different projects. It doesn't mean I don't invest, but at the same time, I'm very conservative about where I do and certain projects will get my money and certain projects won't. And unfortunately, we're in a world where we just don't know that the scam artists are getting a lot more elaborate and the government's, they're fighting to crack it down. We can say that Kamala is starting to open up doors. I don't agree. I think they're still anti crypto at the end of the day because they're not doing anything now to corral the Gary Genzels of the world. And the feds don't know what they're doing with the larger economy. We have to wait to see in November what's going to happen. That's why I talked about November top show. We have to see what happens in November because November is going to tell us where we go next. But the fundamentals don't change. Even if, let's say Donald Trump gets back in office and let's say he does get crypto regulation, it's not going to change the fundamentals of what we have. The fundamentals of what we have.
[00:35:04] We're going to have these disruptors, we're going to have these international situations, the situation now with Hezbollah and everything else. We got other factors that affect this. So the biggest thing you can take away and remember, if you remember nothing else of what I just ranted about, is to manage your own risk according to your risk tolerance. What is it that you're willing to tolerate? And hopefully that tolerance is predicated on preservation of assets. Making sure your family comes first, making sure there's a roof over your house first, making sure the bills are all paid, making sure it's throwaway money, making sure you're not a gambler unless you feel like that's what you want to do. And if you do admit that that's what's happening, don't deny it. Because when you deny it, you're setting yourself up for loss. If you at least acknowledge that you're a gambler, I can work with you. If you accept all these fundamentals and you go with that, I think everything works out for the better. Where we run into an issue frequently, commonly is this narrative right now that's spinning around that we should sell when it's red and buy when it's green, and all you're doing is setting yourself up to lose money. I would rather see you smarter about it. If it's something you want to get in, buy when it's red, consider buying when it's red. Treat it like a discount. Don't treat it like there's a problem. That's the trap. Because when you buy it on green, that means somebody is there trying to drain something out of you. That's the whole point. When it runs up, somebody's going to dump on you. If you're okay with that, great. I don't want to see that happen to you. Because bottom line, profit potential is going to get harder, not easier. We're past the 2012s. We're past the eras of instant millionaires. Unless you want to, because it's no different than playing the lottery at this point.
[00:36:51] Those days are gone. Consider every profit that you make. Every. I don't care if it's $50 or $500 or $5,000, I don't care. Profit is profit. Take it. You've earned it. Be cognizant of gas because gas might nail you. And that's the downside of ethereum because it went up to like $70 for certain transactions.
[00:37:11] But just consider if you can make profit, take profit.
[00:37:16] This is my advice to you, because there's no downside to that. But you have to fight the temptation. And when you fight the temptation, situations like this weekend never happen. You don't get triggered and set off and freak out. And when you don't freak out, you learn to preserve your assets. You remain in control of your situation. Don't let crypto control you, and don't let the shillers control you. You control you. Make sure you remain in control of your money because it's your money, not theirs, if you want it to be theirs, keep doing what you're doing. Keep freaking out, keep chicken little ing every time there's a red. And that's fine if that's what you want to do. I am just here trying to help you out because that's who I am. Lyster crypto talk FM because all I see gets tokens took.
