This week in Bitcoin- 9-20-2019- Rate cuts, Ethereum, Defi, altcoins, IRS, negative rates, Libra

This week in Bitcoin- 9-20-2019- Rate cuts, Ethereum, Defi, altcoins, IRS, negative rates, Libra


Hello everyone this is adam meister the
bitcoinmeister the disrupt meister welcome to this week in bitcoin today is
September the 20th 2019 strong can be a unique piece now you’re off the Bitcoin
unconfessed a double one Bitcoin equals one Bitcoin affected by selling best
guest in the space don’t FOMO on all coins oh yeah we’re
gonna talk about that but yeah we got the best guest based in the space here
we got guy Swann we got Christian who I just saw in person and we’ve got Jeff
Andrew here baby and yeah we’ve got three guys on the show again
so con that like button this we get Bitcoin here we are let’s just jump into
the crypto side of things we’re gonna get into the big financial markets in a
second but I I’m gonna throw I’m gonna toss it in the Christian here I was
gonna start with Jeff and I’m gonna start a Christian Christian is it all
season again you’ve been traveling around the world have people trying to
Punk you up on alts because all its have pumped like the last four days what’s up
with that Christian I don’t think it’s arts all season and actually think
everything was probably gonna go down soon but not financial advice I don’t
know like people people are going to try to pump this stuff up it’s not all
season so prolonged like you know gains just a few days I don’t I don’t buy it
alright alright you’re not you’re not pumped on the alts you’re not faux
mowing on all it’s good that’s one of my sayings
okay guys Juan what have you heard on the streets yes so I think I mean just
like Christian said four day is that thing that’s a stretch like every once
in a while you go through particularly if it’s been flat for a while you’re
gonna have those spikes up now I’m not because the hype cycle was so ridiculous
in 2017 I’m not even leaving it completely out
of the realm of possibility that there is another alt
it doesn’t make any sense I didn’t think the first one made any sense
so but I don’t think it will look like it did last time I don’t think it
will be a rising tide raises all you know ships or whatever like I don’t
think I don’t know this is not it this is just there are so many people that I
know that I have talked to were like looking desperately for a Avenue like
I’d like an opportunity to get out the any kind of like sustained growth is
just going to be met with people so happy that they can finally dump that I
don’t I think we’re a long way from anything on that front we’re gonna talk about this more later
in the show but I think it’s just a symptom of you know when interest rates
get too low it’s the riskiest investments that sometimes in the
short-term see the money for in because when nothing is you know generating any
yield those dollars have to go somewhere so a lot of times it’s the sketchiest
riskiest investments in a very short term which is a category in which I’d
put all clients that see the biggest benefit so yeah let’s talk about that
let’s talk about the financial markets interest rates were just cut what is
what is going on here Jeff well I mean it’s it’s interesting in a lot of
different ways you know I think this is the first time that I can remember in my
life where our politicians have been pretty open about the fact that the
stock market is just easily manipulable by the central bank you know one of the
things I’ve talked about a lot over time various outlets is I don’t think that
our stock market actually conveys meaningful price information anymore at
all because I think it’s just so beholden to you know central bank action
that we’re just really not getting any meaningful you know price data price
communication by the market at all so I think you know what’s happened is we’ve
seen the president just sort of blatantly admit this and put pressure on
the central bank to keep rates low because it helps short-term political
force and that I’m not even being critical of that action because if
you’re if you’re in the current system that we have today which is the system
that they all have to operate in all of our politicians you’d be stupid
to do that I mean he’s basically just the first guy that’s been smart enough
to take that sort of action so you know I think that’s that’s my basic
perspective on what’s going on here at least on the US level now your Europe is
talking negative rates doing negative rates are we gonna see negative rates in
the United States are we is it eventually gonna spill into the consumer
market Co banks charge negative rates on savings accounts it’s my guess would be
there’s a definite possibility that we could see it in retail markets but
usually most big proponents of negative interest rates and believe it or not
there are a lot of people who not only say we shouldn’t be afraid of negative
interest rates but that there are a really good elegant solution to a lot of
problems usually when those type of people make proposals there is some sort
of a de minimis cutoff that eliminates most retail accounts from the negative
rate so for it’s something like you know it might even be something like the FDIC
deposit limit where the first $250,000 of deposits are not subject to negative
rates you’ll probably see the negative rates at least for a long time only
applied to very large deposits which mostly are gonna end up being corporate
you know bank deposits all right all right very good there were something
else I was going to ask about the negative rate sister wink so yeah your
bizarre-o what’s it mean for Bitcoin what what do you see all of this that’s
going on in the larger market what’s it what’s it mean for Bitcoin I mean
everything’s good for Bitcoin in the long term in seriousness and the long
term it is good for a good coin right because it’s all these things are
acceleration ax stand on some level the current system has to collapse it’s too
strong of a word but it has to have some use a weird weird way to phrase this
there has to be some level of crisis to the current system for Bitcoin to really
start to take off and a lot of us including myself hope that that isn’t
like a complete and total collapse but regardless of how strong that sort of
negative impact to our current financial system needs to be
acceleration is amiss moves us further in that direction so I think you know
certainly in the long term this is good for Bitcoin in the short term we still
don’t know whether investors in general sort of the broad scope of investors see
the value proposition of Bitcoin yet well enough to understand that bitcoin
is a hedge against these issues and there’s still a lot of investors that
therefore may still see Bitcoin as a risk on asset and therefore in the short
term if there is you know a shaking shaking of confidence in the market
there is certainly a possibility that the coin could actually have short-term
price declines we just don’t know yet whether the market at large has really
started to no longer view Bitcoin as a risk or an asset yet but in the long
term definitely good all right everyone found that like button guys Swan you I
think you’ve retweeted this guess someone retweeting this the Fed will
print an additional 75 billion dollars to correct the lending market that’s 129
billion injected as an emergency within only a day they will apprentice much as
the entire market cap of Bitcoin now that might some people argue about the
entire numbers behind that but I get the point
the Fed is playing with tremendous numbers here that a that are similar to
what bitcoin is worth right now so guys what is your take on all this yeah just
the fact that like in a comparison of market size it’s it’s pretty
extraordinary to think that like that’s the amount of money just in an overnight
like a cuz I think the overnight interest rates like shot up to like 5%
or something like that I even saw some money say was it 10% yeah very briefly
shut up as high as 10% and they we still I started to catch off me but we still
actually don’t know why there’s no like official explanation it’s told why there
was that dry up and see that’s so that’s so crazy though dude it just shows how
unbelievably fragile everything is like it’s sitting on like the thinnest of ice
with cracks everywhere and they’re just having to constantly
throw money to smother the fire and obviously you know you end up putting
more fuel on it down the road and just like bandra said that um like you can’t
there’s no way that it doesn’t eventually go negative because there’s
no way out except a massive corrections I don’t see how it doesn’t reach that
point even if it’s you know the u.s. is one of the last ones to get there um and
we’ve already got what was it I think I think it was like 15 some odd trillion
dollars of negative yielding like bonds and stuff now I mean just like the whole
the whole space the fact that this is being normalized
he’s absolutely insane that we’re we’re totally just accepting and pretending
it’s completely legitimate to have someone have the ability to consume to
consume scarce resources and get paid to do so like that’s that’s absolutely nuts
like we could not have it more backwards and while I think like Bitcoin is I like
you said still seen as a really risky asset I think in the long term it’s just
going to be this obvious elephant in the room for everything that they try to do
for like just just bringing up that question like why is there no yield some
like everywhere why do we have to constantly dump all of our money into
these crappy nonsensical projects like like Jeff was talking about and like
over inflate all this stuff cuz people are so desperate for yield they’re
desperate for like a real place to park their money so I don’t know it’s crazy discovered Bitcoin yet I’m glad we’ve
got the insider information here I think the Fed will be able to keep all not
doing this we’ve got a lot of blind people out there just be like happy with
whatever they do I think but at least we know the right direction to go in
Christian what’s what’s up with you and this whole situation so
add onto what guy was sitting and how I’m saying the negative yields are and
especially in the bond market that’s kind of where it’s happening first and
I’ve been thinking about this and when I was in Riga talking to a lot of people
about this and it this idea kind of came into my head that the bond market is
literally turning into a Ponzi scheme the only way it’s profitable if there’s
negative yields on the bond which means that you pay them to buy the bond is if
you’re expecting the interest rates to go further down so that way you’re
negative bond is less negative yielding than the newer ones and therefore it
will appreciate that way you could sell it so it’s literally a Ponzi scheme
waiting waiting for you know yields to go lower and for you to dump your
negative yields on you know whoever the present buyer is so I mean that’s pretty
crazy and I think that as Bitcoin gains it’s
windy it we’ve already already seeing it now that it’s actually being injected
into the conversation on like serious financial investing podcast pretty much
on the news every day on CNBC and other things we’re seeing books all the time
so I think we are experiencing people becoming aware of this and it becoming
very obvious and I would not be surprised in in the next few years if
people seriously gets their Bitcoin did you guys see Travis clean on CNN dice
that yeah I saw I saw some 120 watch it actually what’d he say I he literally
did one of the most succinct like two and a half or three minute explanation
of Bitcoin as hard money essentially insurance on all of this negative
yielding like interest and the huge debt imbalance that we have to deal with he
hid like a lot of the like name like Austrian ideas and the fact that it was
immutable I mean it was it was the it was an incredibly succinct like almost
Bitcoin maximalist narrative in an in an open
discussion on CNN that I don’t know I just just didn’t expect to see it even
when I see it on like CNBC it’s usually buried under a lot of layers of
ignorance but his level of having discovered it for himself just really
surprised me and in the fact that it was immediately accepted as a legitimate
argument like as a real position which I think anything like like six six years
ago it would have just gotten laughed out of the room like like the whole
perspective on all this is changing because I think there’s this is this
thing in the back of a lot of people’s minds it’s like something is so broken
here like it can’t work like this and so the discussion is getting wider and
Bitcoin is making its way into the edges of all of these discussions and it just
it blows my mind what that was what do you think about CNN having this crypto
crazy week they had because five days in a row they had cryptocurrency people on
but like the guy you spoke up this is this was a new thing you’re talking you
know off air you you brought up how younger people that they think
differently about economics well now older people are getting exposed to
Bitcoin also do you do any any thoughts that they would they were actually
talking about this on CNN which is kind of crazy if you would’ve told me four
years ago that’s funny I didn’t know about like seeing in Bitcoin week that
if I see something on CNN it’s because somebody shared it on twitter i reaiiy
don’t have any news but uh yeah that’s that’s that’s crazy and particularly
like with the younger generations there’s there’s a lot like bitcoin
magazine actually just had article about a pax full survey and somebody else
doing a survey and I think as like particularly as we get there there are
ten eleven year old kids right now they have never lived in a world without
Bitcoin and as that extends forward like it doesn’t matter what the hired like
the earlier generations older generations actually get in terms of
education because those generations in ten years
when those kid they’re 20 years old they’re it’s not
even gonna be a question in fact in the the survey they talked about it was like
they generally would like like Jen’s ears and Millennials um had an
incredibly high proportion of people that are totally open to investing in
Bitcoin new currencies and it was actually getting up to similar
percentages I think it was like like low twenties or something
whereas the avenues were like in the 30s like 33 37 % like depending on what they
were asking about um but uh but that it’s getting a comparable essentially I
don’t know the a comparable perception from the from the younger generations
and that’s always going to be on the table and I think the narrative is gonna
completely change when there are people getting into that age group where
they’re the ones dominating the next run of investments when they’re the ones
deciding what the next big companies are gonna be and Bitcoin has just always
been there Bitcoin is just obvious as a contender and it might be a bunch of 13
14 15 year-olds who can’t get a bank account but they they’re gonna buy stuff
online like so something is going to fill that need somewhere and Bitcoin and
cryptocurrencies really the only Avenue for a lot of them so I think I don’t
know there’s gonna be a hell of a foundation in five or six years yeah a
major move into the mainstream I like it 2028 having strong hand people those 10
year old today it won’t be buying gold in 2028 they’ll be talking about that
2028 having found that like button alright I want to go back to jet real
quick to a previous subject matter and you can if you have something else we
want to bring up that you’ve been meaning to say you say but my question
is what did happen the other night when they had to inject that money into uh what was what happened for reasons that
you know us being average slobs in finance terms we’ll never know
probably there’s a lot of theories about this kind of thing there there’s an
issue where banks tend to lend to each other overnight so you know the whole
financial system essentially relies upon this and I’m just giving you my
understanding of what happened as best I know I’ll go into what we don’t know but
these banks all have to lend overnight and to each other and typically a part
of that are the fact that US Treasury dealers when they purchase Treasuries
from the federal government they don’t have necessarily all the cash on hand to
do that nor do they need it in their mind because they turn around and resell
those Treasuries they’re a dealer in this case so they’re also borrowing you
know within this sort of market very very short term funds so these are these
are like loans that are like eight or twelve hours we’re talking about here so
these are typically very very very low interest loans among very very very
credit worthy parties right so like in other words if there’s any sort of loan
should bear a very low rate of interest this is it cuz it’s all giant
institutions that all know each other are lending to each other over very very
short timeframes and for reasons that I have not yet heard a great explanation
there was just a shortage of lenders the other night and as a result because
there was such a shortage of lenders the interest rate shot up to insane levels
and the Federal Reserve had to step in and sort of act as that lender of last
resort sort of a bizarre situation and as I said as to why specifically a
couple nights ago this happened I have not heard you know I don’t work in the
finance industry so I don’t have any insider information and I haven’t heard
anything all that persuasive as to why this happened it remains a mystery but I
do thank you for clarifying NASA everyone does kind of this is there’s
all sorts of rumors going on and stuff so we don’t exactly know but there you
go okay moving back into the land of a pure
crypto here I want to ask the Christians that you’ve been traveling the world you
might have a opinion on this tweet by Vinny Lang ham defy is clearly go
to be the catalytic wave for the next phase of the crypto evolution so is defy
the big catalyst of the next of the next phase of the crypto evolution what’s up
with this defy I’ve been hearing a lot about this lately Wow
so before I answer that question I kind of wanted to add on to what Jeff was
saying and he said there wasn’t really an explanation but I think that this is
a great example of just how fragile the current system is like any small thing
could happen and then the Fed has to step in so you know the system currently
is just kind of built on on sand and you know the house is gonna fall at some
point and speaking of being built on sand that kind of seems what deep is
built on this well I do a podcast with a big Syrian person David Hoffman at
restless state podcast called POV crypto but essentially it’s the Bitcoin burst
etherium podcast and defy might be the most overly pump thing you can imagine
if anything the only thing aetherium is being used for is a Ponzi scheme and
tether and tether is being used to buy Bitcoin so eep is only strictly being
used to trade Bitcoin that is the only use case for eath if you extrapolate
that out defy has a tiny tiny amount of volume and usage on aetherium and it’s
quickly becoming extremely expensive for all the etherium enthusiasts to play on
defy because tether is increasing the gas fees so high so we’re seeing that
each one is having all of these issues and that you know tether and other kind
of like centralized bad actors quote-unquote are dumping their usage
onto the etherium block space and really congesting aetherium and making it
difficult for these deep I apps to act in terms of Vinny’s comments then he
says shit like this all the time so like I don’t even know how to respond like
this is not the first time he said something very bullish about some other
altcoin thing it seems like he’s always going with whatever the trend is
and that’s probably why a lot people consider him a counter indicator so I
don’t know personally I think Vinny is probably smart and malicious aka he’s a
scammer and he’s just trying to dump his bags but you could also consider him
incompetent just depends on your perspective well couldn’t we just didn’t
he’ll also say that Civic before he kind of like just stopped saying or talking
about it at all because you know it lost people millions and millions of dollars
was going to revolutionize identity like that was the most garbage coin ever he’s
still he’s still talking about the UH I mean it’s just things Civic is this
thing he’s still talking about the identity aspect of it a lot did
Christian you’re big you’re bold there man he’s right down the road for you man
you got your good running to it I mean he was at the event we were at all right
d4 so wait wait let’s since we had a guy chime in there what is up with the UH
what is up with define in your mind then I don’t know there might be something
there in just like a new use case for and or like kind of a new business model
in an old industry like just in the idea of finance and expanding a little bit
but in the context of like using a theory ‘m or like I don’t know I’m
really skeptical it sounds like I don’t know enough about it really to say
anything all I all I hear is kind of the hype around it but it just sounds like
it just sounds like the old narrative has died and it’s not working for them
anymore so like we got it we got a grab onto the next one that’s gonna you know
bring that money in so until I see something real I’m not it’s just it’s
just noise to me that I think it’s actually really simple to see why defy
doesn’t work lending right is based on trust the
entire foundation of lending is you trust the per
you lend the money to to pay you back and there’s different ways you can do
that either because you have a personal relationship with the borrower or
because you’ve evaluated their trustful their trustworthiness which is basically
what we call credit you know someone’s credit score in a retail environment
through some other subjective means so it doesn’t make sense to take something
where the whole foundation of this activity is trust and try to move it to
a decentralized trustless model that’s crazy you’re it’s just not what a
decentralized trustless model is built for all right there’s there’s your
aetherium a segment of the show this week guys hey I’m giving you the news I
mean being here in Israel this this past week was blockchain week and there’s a
lot I mean there are a lot of people that believe in a theory and there are a
lot of people building on it I will see say this so we will will have to see how
this all how this all turns out something is going to happen it’s it’s
either gonna work or it’s gonna be a major fail and a lot of people really
disappointed I don’t know but yeah Vinny’s talking some that’s a big claim
on his part there what he just said it’s gonna be the catalyst of the next part
of the crypto revolution it doesn’t mean with we shall see it will be I mean I’ve
got my popcorn and I got my Bitcoin because yeah that’s that’s what I I’m
just I’m watchin it got nothing I don’t have a horse in the etherium race man
that’s that’s why bitcoin is the next Bitcoin and we shall see about the
future of a theory I’m here okay so moving on to what are some other matters
here that I have written down Kristen you talked about well Chris
you’ve been you’ve been traveling around the world here what has this week
brought you in terms of and just just meeting so many people I mean where have
you been yes so I actually recently saw both both
guy and Jeff here – – in Dallas and in in San Francisco so since pickle in 2019
this past June I’ve had the opportunity and privilege to go to a pretty much
every Bitcoin conference so far I’m done now but I recently went to Baltic
honeybadger in Riga as well as scaling Bitcoin where I saw Adam in Tel Aviv so
it’s been an epic ride and I can’t believe I get paid to do this so it was
definitely very fun and thank you to Bitcoin Magazine for making it possible
but you know really just been seeing a ton of them amazing people a lot of
great speakers Riga I really really enjoyed just the vibe as well as you
know how many great people were getting on stage and talking so you know could
not say hey you know better things about Baltic honey badgers really fantastic
and in general bitcoiners are just amazing so I always enjoy hanging out
with bitcoiners and it’s a great way to spend a weekend so I highly recommend
going to to a legitimate Bitcoin event anytime they’re always amazing whether
it’s big or small alright so there’s a positive note now we’re gonna get into
it with Jeff about something that some people don’t think is very positive Jeff
is a he’s an accountant he’s a lot of things so since I had won the show why
not ask him about the IRS situation that everybody likes to ask me now again now
the letters were sent out weeks ago now but Jeff can you give us an update on
that situation yeah you know quick disclaimer I’m an attorney a tax
attorney and a CPA but I’m not any of your tax attorney or CPA hey so consult
with your own tax advisor that said if you got one of these letters that came
in the mail from the IRS a few weeks back just one thing I always tell
everyone is not to freak out about it everyone whose name popped up in McKoy
based John Doe subpoena got one of these and these are part of a broader category
of notices that we take in the industry tend to refer to as IRS soft notices and
what a soft notice means it’s not a notice that you per se have to respond
to it’s sort of the IRS just sending you a letter saying hey
you may owe some additional tax here maybe you didn’t claim this stuff take a
look back at your return and see if you did it right if you didn’t file an
amendment if you did everything right you don’t have to do anything and that’s
why it’s a soft notice it doesn’t necessarily require a response in fact
most the time it doesn’t require a response and in fact receiving it
doesn’t put you on any sort of a special list of particularly suspicious people
it just means you’re someone that may perhaps have to have a higher chance
than normal of needing to go back take a look in a menu return so if you got one
of these notices go back look at the return see if you claimed your stuff if
you didn’t contact your tax advisor or file an amendment no big deal all right
guy I know you wanted to mention that Edward Snowden yeah I just uh I was
curious to get everybody else’s opinion illness to be honest because he’s his a
nubuck permanent record is excuse me it’s coming out and it’s a Mac millon
Macmillan about publishing or whatnot and um
supposedly he has a like his non-disclosure and stuff agreements with
both the CIA and the NSA um well obviously he’s been violating it since
since anybody knew who the name Snowden was um but now they’re they’re going
after and trying to sue him over the rights to the book because of the or sue
him over any ability to like make profit from this as a violation of the
non-disclosure agreement um just because they’re supposed to he’s supposed to
send all information to the CIA and the NSA so that they can mark out anything
that he’s not supposed when like like Snowden’s gonna do that but uh it’s just
a really interesting dynamic and supposedly a part as part of the
agreement he’s not allowed to make royalties off of anything like anything
where he talks about like the CIA or NSA even if it’s like fiction that
supposedly he’s like like permanently for the rest of his life he’s just not
able to royalties off of that so I don’t I don’t
know it sounds like they’re gonna be going after the publisher rather than
snowden and then everybody on Twitter’s like set up a BTC pay server well bhai
your book under the table like I’d love to I’d love to get a copy so it’s funny
it may very well it may very well be real one of those things where it just
proves the use case of Bitcoin did like it kind of laughing in the face of like
oh yeah you’re gonna control the market well we’re just gonna print it ourselves
and ship it out and everybody’s gonna use Bitcoin so I just think it’s a
really funny dynamic yeah I mean I think if you guys want I can give a little
background on the legal reasons why they’re going after the publisher and
what the attack vectors are here so the issue would be you know Bitcoin or no
Bitcoin Snowden’s in Russia Russia’s probably not going to enforce a u.s.
judgment against him so their only angle to try and get at these proceeds is to
you know take action against the publisher the publisher either I don’t I
don’t know the publishers to the cleese headquartered in the United States
whether they’re headquartered in the US where they have offices in the US or
whatever the court system of the United States is going to have jurisdiction
over the publisher so that’s why you would go after the the publisher in this
case so even if you were to start accepting Bitcoin for the books it
really wouldn’t matter because the publisher would still be subject to the
US courts and the government could get paid that way really the thing is he
would have to start from a legal perspective selling the book directly
without the publishers involvement to really get this off because then you
know he’s in Russia so they can’t come knock down his door and you know hold
him in jail for contempt of court and then he and the publisher you know
they’re not involved so they wouldn’t be an attack vector either so that’s really
what you know the issue is going to be in terms of the royalties and the
financial end of this you know for instance if he was accepting Fiat but
selling without a public he had been selling in Fiat
even if he didn’t have a publisher in the US and was selling directly to the
consumer the issue would be that the u.s. court system would still have
jurisdiction over visa master car discover American Express or even if
he wasn’t taking credit cards and he was just accepting you know dollars over a
CH or something whatever banking came at rail was transmitting in the funds the
u.s. court system would easily get jurisdiction over and yet to be able to
stop those payments so in order to sell directly to the consumer in this
situation he both have to not have the publisher involved and be selling
essentially with Bitcoin directly to the consumer alright thank you for that
clarification Kristen do you have any thoughts on me edward snowden’s it could
be expected and excited to see what happens next excited to see if he goes
hard on to Bitcoin and cryptocurrency and continues trying to sell the book
but yeah popcorn and just waiting I just feel like you know there’s just dominoes
have effects happening and you know things are gonna continue going in
bitcoins way awesome I’m Jeff I want to before the show you
talk about the craziness over at we work there IPO and it’s how it’s related to
the crazy financial situation of the world today to talk about that song we
work being a unicorn is really the same phenomenon as an altcoin pump right I
mean where when yields get low dollars have to chase some crazy investments
just to maintain their value or grow and I think we works a good example of this
you have a company that has all these insanely wacky stories about how its
managed like it just came out this week that the CEOs wife if she would talk to
you and you were an employee and she got a bad vibe the CEO would fire you even
after a five-minute conversation or just a seemingly innocent conversation and
just other bizarre things about the management team trafficking drugs
interstate or internationally in their Jets I mean they were using it for
recreational use not for resale but still that’s obviously a major felony on
you know on a company jet things like that just an example of you know just
like all coins pumping yields go down because the those investments have to
find somewhere where they can get some yield if the
same thing with these companies you’ll see unicorns get made that seemingly
have no business at all being unicorns ouch all right guys you wanted to bring
up you want to bring up the youth again you had something to say yeah yes so
really right along those same lines with the whole we work in the I think is a
great analogy to say that it’s a lot of these like crap stocks that are um like
having huge explosive like IPOs and stock valuations that make no sense
whatever whatsoever is really very analogous to the whole altcoin bubble
and it’s people again like looking for yield and a in a literally a global
market that is non-existent of it like because our imbalances are so bad but in
conjunction with that and then you’ve got these things like the financial
cracks I did just an overnight lending it takes the takes the interest rate
from 2% to 10% in a matter of hours small move that’s a huge move in the
interest rate in a matter of hours so we’re getting an insane level of
volatility because it’s obvious that we’re sitting on cracks in our financial
system and that we’ve built all this on top of sand so traditional assets that
have seemed safe and secure and slow-moving for ages and the stock
market in general is going to get more and more volatile as we move into the
deeper and core sort of the back end of these imbalances starting to play
themselves out and with the paxville survey on with the Bitcoin magazine
article they talked about what were the biggest hindrances for the younger
generations for the Millennials for the Jin Z’s for investing in those versus
traditional assets and the top concerns actually were not like education or like
understanding it which is probably just a it’s probably just a result of
ignorance not the fact that they don’t it’s probably just they don’t think they
need to understand it now do they actually get it but that’s actually a
indication that they just see it as like a part of the market so it’s not really
important but so that was like a 14% but in the 30% range their biggest concerns
were volatility and lack of trust and when you starts to introduce a lack of
trust into the traditional supposedly safe markets and then at the same time
we have this incredible underlying like gonna sneak up on you at any moment
volatility in the safe traditional markets
well Bitcoin doesn’t look a whole lot different except for the fact that it’s
going up and has lots of yields so I think the that narrative is going to
shift a lot when the safe havens look just as risky as all the alternatives so
I don’t know I just thought it was funny that those two big concerns were the
reason they supposedly invest in traditional markets when those two big
concerns are literally what is falling apart in the traditional markets I hope
they the 20% smart ones will at least I mean some people just blindly do with
you know their parents did or what they think is the right thing all right
Christian I want to ask you about I I think I’ll ask everyone about this but
you probably heard their necks solid X they withdrew their ETF application yeah
yeah yeah that’s that’s what’s going on is that a big deal Christian so I think
that both Jeff and guy probably are better to ask this question to but
generally speaking from my understanding a couple weeks ago they had announced
that they’re gonna create a similar product to gbtc which is what a digital
currency group does and that is a product that you a lot of people can get
on like fidelity or something like that and it’s not an ETF but some other form
of investable Bitcoin product it usually has a premium so I think that because
they announce that they’re doing that kind of makes sense that once again
they’re gonna pull this thing back it seems like this is kind of political
like this process seems very political instead of in objective process so I
don’t really know exactly you know what all of this means and how they’re trying
to play this game it seems like Vanek is our friend and they are friends at
Bitcoin and I like what Kapur says on Twitter so I’m you know I think that
they’re doing their best to bring this product to the market so we’ll see you
know how and when it’s gonna happen it seems like there’s a lot of demand for
it so yeah we’d love to hear what Jeff and guy want to say I mean that was a
good take on the situation yeah Jeff what do you what do you have to say
so yeah I agree Christian’s mostly on point
they’re absolutely van X product the way I understand it is a little bit
different from GPT see all of their structurally pretty much the same when I
say different just different in their target market so gbtc is a sort of a
closed-end fund which Christian says means it actually typically trades at a
premium to just holding Bitcoin yourself but the reason the primary driver a gbtc
adoption is because it’s available on platforms like fidelity retail investors
can buy it easily without having to understand Bitcoin and it also means
they can buy it on those platforms within the context of an IRA or 401k or
other retirement account very briefly a bit of shameless self-promotion for
myself I offer a product where you can buy Bitcoin in your IRA or other
retirement account hold the keys yourself not have to deal with gbtc and
not pay a premium so hit me up on Twitter if that sounds good to you
moving on to the van eck situation van x products the target market is a little
bit different in that it’s only going to be available to institutions so van X
current product even if you have even if you want to buy into it it’s going to be
limited to large institutions so it’s a different target and those institutions
it really does make sense for them because they typically under their own
regulations would be allowed oftentimes to custody their
own Bitcoin that would be too high of a liability for them so for those sorts of
organizations I think the Vanek product that they are in fact coming out with
makes sense it’s notable to keep in mind that even when van X ETF product was the
application was still pending before they would Druitt the van eck ETF was
not a retail ETF they were going to set the share price high enough such that it
would only be available to large institutions so well in that respect
there’s really no change they their approach and I don’t know anybody have
an act but what their approach seems to be from all the public information that
I have is that they first really want to nail this sort of thing down as an
institutional product before they even think about moving in a retail investor
direction all right but now ETF talk through social media
Bitcoin social media it’s been so huge over the last two years I say we’re just
a day closer to someone finally getting this thing off the getting a real ETF
off the ground Christian says it is political I agree I mean there’s a lot
there’s a lot of politics behind this do you see so pulling this off in 2020 I
don’t think the ETF actually matters at the retail level because I think before
an ETF gets approved Ameritrade and or fidelity are just gonna offer direct
custody of Bitcoin and their normal everyday you know discount brokerage
accounts they’re both working on it so that kind of almost makes an etf move
I mean if fidelity and Ameritrade do that it’s gonna really lower the market
for an ETF right because a lot of people would just get in and out of Bitcoin
even if they don’t want to hold their own keys using you know what’s fidelity
in a meritorious count brokers would follow so I think it’s more likely that
we’re gonna see something like that before we see an ETF just because it
won’t require as rigorous of you know compliance issues guys one yeah I was
that was that was my thought on the whole thing is that
I think it was a really good like height thing that everybody got super excited
about and but really the whole whole that whole period has just died down and
it’s now kind of old news like I didn’t even know about it until you were just
talking about it and it looks like back is still moving forward on fidelity I’ve
been like trying to stay up to date because they put doing I’ve been really
surprised at how like technically proficient and health thorough they are
and their understanding a bit coining like what cryptocurrencies are actually
used for and Bitcoin is such a versatile asset being programmable and with all
these like shared custody well like systems and the shared key
stuff that is become more moral a norm in like all my main wallets right and
our all multi SIG’s except for SATs app which talks to a multi sig and so it’s
like it really is the game is changing really quick and I think I think if it
takes another year for an ETF to come out we’ll have alternatives that are
better and more direct to the point that the market won’t care um just like he
said you’ll have custody with fidelity and Ameritrade and every major one
that’s worth their salt that it just won’t I just won’t matter you’ll have so
many avenues that it’s not important it’ll be a moot point like Jeff said
okay well we have reached the end here of this show but everyone I want to give
everybody a chance to give their conclusionary remarks bring up any
stories they didn’t they wanted to bring up again all these guys are linked to
below they’re their Twitter’s so you can investigate them DM them and talk to
them we’ll start with Christian what’s what’s
up man anything that got left out and you wanted to bring up anything
San Francisco how’s Libra down Adam first of all thanks a lot for having me
on the show you always get the best panel together for Friday so honored to
be included yet again in terms of Libra I think that they’re
showing why decentralisation because it seems like every government is targeting
them not much to say there except for a nice
case study and lastly San Francisco is beautiful happy to be back and I hope to
stay put for a little bit but I think I hate everything I need to say
I think Adam gives the best advice strong hands long-term thinking by the
dip all right town that like button people long-term thinking the full
gratification alright Jeff what’s up any thoughts I didn’t ask you about Libra so
I asked you about Libra too uh well all right so before I get into that I one
thing I do want to mention that didn’t come up so as I mentioned before my day
job is a product where you can hold Bitcoin in your IRA and holds your own
keys no markup but I’m also involved as a volunteer in the BTC Pei server
project both as developer of plugins and the Python library for BTC pay and also
on BTC pay sort of newest project which is the BTC pay foundation I don’t know
if any of you guys have gotten a chance to hear about that but that’s a way for
businesses that rely on Bitcoin can actually provide sponsorship to the BTC
pay server development team which really really helps keeping BTC pay server as a
robust merchants solution and I’m a reversed a robust non-custodial solution
for accepting Bitcoin it’s really important to keep in mind a lot of these
developers that work on BTC pay not me my contributions to BTC pay are pretty
small but a lot of these other guys work either full-time or nearly full-time BTC
PI server and until now I haven’t been able to make any money off of it all
it’s been entirely volunteer so with the foundation this gives away for
businesses and we really want to thank of course Square as the first business
that made a grant to the BTC pay foundation can show their support for
BTC pay server and then that money ends up going to the developers that really
makes or what make BTC pay great so I really would have been remiss if I
didn’t mention that before we closed here for the day to go on
Libra libras dead I think it’s pretty obvious the the European Union is not
gonna allow it in the EU and I think that’s going to effectively you know for
the most part be the end of it unless they launched it on a much smaller scale
only in developing nations they could try and do something like that but even
that would be difficult and would be a maybe not the opportunity not nearly as
ambitious and opportunity as they were seeking Wow well I had heard that about
we project a very very interesting we will go to God you get the last word man
yeah that was actually just read the blog like yesterday about the square
crypto um like grant so BTC b7 that was really awesome at the had gotten
forgotten that you were actually involved in that um but that’s really
cool I’ve been I’ve been trying to trying to follow that more closely and I
still I still have not set up my own BTC PI server I feel like a failure as a
Bitcoin maximalist but uh yeah I just direct people to the show um if if you
want to hear like I’m coming up on 300 quick reads now for like Bitcoin
articles and like essays and papers all around the space like to make audio book
versions for them and I finally the library has gotten so big now that I’ve
been going back and being like I need a refresher on like some old lightning
stuff or like topics around like energy energy conservation or the cost of
energy and proof of work and stuff so I will go back and I can’t remember you
know 300 I mean how many hundreds maybe even a thousand hours worth of content
now so I’ve been going back and listening myself for the first time in
the last couple of weeks and it’s been kind of funny but yeah that’s the the
crypto economy podcast and I also I will gladly accept recommendations I I love
it when somebody finds an article that I didn’t know about so I can read cuz I
read all all the Bitcoin things and I just I just want to have I want to have
the best collection out there unmanageable
so yeah just direct people there yeah man you are
definitely in motion is a very original idea that you have that you just read
the articles you read it and people can look as a lot of people can’t they can’t
breathe anymore so they’re better they’re better with the listening
comprehension and you put it all out there I think it’s a really it’s a
really original idea and it’s it serves a great uh serves a great need in the
community well dudes preciate it and thanks for having me on the show by the
way man this this was great and I’ve had I’ve
had a lot of fun I thank I thank all of you for returning to the show you’re
none of you are rookies you’ve all been here before
it’s great to have a veteran panel it’s great to have this combo I had no idea
that y’all met up beforehand I answer in Dallas or something like that you go
that’s great that’s awesome it’s a small world out here
but hey the best guest in the space we do this show every Friday of course I do
a new show every single day here on the bitcoinmeister channel Fridays that this
weekend big coin show Saturday’s the beyond big coin show so you’ll see me
there very soon i’m adam meister the bitcoin wishes from maestra members
subscribe the channel like this video share this video pound that like button
bang that bell button shabbat shalom see you all later
saturday baba Zia

Author:

3 thoughts on “This week in Bitcoin- 9-20-2019- Rate cuts, Ethereum, Defi, altcoins, IRS, negative rates, Libra”

  • This video of a former Goldman Sachs trader which is mind blowing https://youtu.be/L7G0OfJUON8 explains why you cant trust exchanges. And especially cant trust their seminars. And also why you keep losing money trading. Especially on a short term. You cant win. A trading algorithm does 1000 trades per second. You are only able to do one at max. They play you until you lost all your funds. Just buy bitcoin and hold. Thats it. Strong hand.

  • He Who Has Ears To Hear says:

    With all due respect, I think all of the maximalists are wrong about there not being another altseason. Granted, my eyes have only been on the space since 2017 and I'll be happy to admit that I am wrong if I am, but the number of 80 percenters who will be entering the space during this next adoption cycle is going to be immense. As far as the collapse that will never happen… it will happen but it won't be a doomsday collapse much to the disappointment of the goldbugs. The reason that we are in the longest economic expansion ever recorded is because central banks have no choice but to unload all of their ammunition (including negative rates which will prolong the collapse). Eventually there will be a sudden loss of confidence in the US dollar. It has already started years ago BUT eventually it has to accelerate to where everyone attempts to run out the door at the same time. Nobody has been able to convince me otherwise and I keep a very open mind to a lot of voices. That being said, this is by far the best bitcoin channel out there. Good show, Adam. Fridays are always my favorite.

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