BTC Sessions - Fed Injects More Than Entire BTC Market Cap Into Repo, Tether Printing, CSW Court Fail EP027

Starting point is 00:00:01 Wasabi wallet. I'm fairly private. What's up everyone? I'm Ben with the BTC sessions and this is your daily session. Before we dive in, of course, shout out to sponsors of the show, Paxful.com. This is a peer-to-peer Bitcoin marketplace where you can buy and or sell Bitcoin. And this is particularly useful for those of you looking for alternative means of payment. These guys have well over 300 different payment mechanisms that you can use anywhere from bank transfers, e-transfers, things like that, to payment apps like PayPal and cash app, all the way down to things like buying Bitcoin with gift cards. So pretty much anything you can think of,

Starting point is 00:00:56 it's probably going to be available as a payment mechanism here. Now on the flip side of that, If you're looking to make a little bit of money by flipping Bitcoin, you can do so via Paxville as well. And if you're looking to pick up super cheap Bitcoin, or sorry, not super cheap Bitcoin, but super cheap gift cards using Bitcoin, there are some hell of deals on gift cards on Paxville.com. I've seen Amazon and Walmart cards for 20, 30, 40 percent off sometimes. So be sure to check that out. They've also got a pretty killer affiliate program if you want to dive. into that too and try to make some money there as well so be sure to check out paxville.com there's a link in these show notes where you can go and head there and then secondly we've got

Starting point is 00:01:42 aledon.io these guys are super awesome i've been using them for quite some time of well over a year now i think a year and a half anyways they've got a variety of different services that you can use your bitcoin for they've got bitcoin savings accounts where you can earn interest on your bitcoin they've got Bitcoin backed loans, and this is kind of how I started with them. I was in a pinch and I didn't want to sell my Bitcoin because I was worried I wasn't going to be able to buy it back at the same price, which ended up actually being the case when it happened. So what I did is I got a Bitcoin back loan. And so I use my Bitcoin as collateral to secure a Canadian dollar loan. You can also get US dollar loans, just to note. And essentially, they held my collateral until I paid back the

Starting point is 00:02:28 loan in full. And I was lucky in that instance that I did so because Bitcoin did shoot up. And I wouldn't have been able to buy back the same amount of Bitcoin. Also, important to note that by using a Bitcoin back loan, it is not a taxable event because you're not actually selling the asset. You're just securing a loan with it as collateral. So keep that in mind. And finally, they've got a B2X product. and this essentially uses Bitcoin as collateral to obtain a loan and then auto buys a second Bitcoin. So, you know, whatever the amount is that you're putting in as collateral, it essentially doubles it. So you get to experience the price fluctuations with twice the amount of Bitcoin. And yeah, so for those Bitcoin bulls out there, that could be an option for you.

Starting point is 00:03:18 If you want to check them out, there's a link in the show notes down below. if you opt to get a Bitcoin back loan in particular, they'll actually credit you using that link with an additional 50 bucks with a Bitcoin in your account. With that, let's dive into the news. So the economy is, it continues to be in a bit of a tizzy. And just within the past couple of days here, the Federal Reserve has injected an insane amount of money into the economy, particularly in the overnight repo markets. So essentially, I'm going to read a little bit of a quote here, but there's been some plunging markets. There's insane losses on Monday. There was a bit of a rally on Tuesday, but it seems we're dipping again today. Regardless, there are separate auctions Tuesday

Starting point is 00:04:07 in the short-term lending market or repo. It saw a two-week offering massively oversubscribed with $93 billion offered for a $45 billion operation. And then, March 10th on CNBC News Brief Day said an overnight offering saw the New York Fed's trading desk fill 123.6 billion in bids. So basically they're just putting more cash into the economy here. To put that into perspective, Bitcoin's current market cap is just shy of $145 billion around now. and the government just dealt roughly $23 billion more cash than all money held in Bitcoin. So in the course of a couple of nights, the U.S. Federal Reserve, out of nowhere, injected more than the entire market cap of Bitcoin into the economy. This is why Bitcoin exists.

Starting point is 00:05:09 And tagging on to the economy here, we have Christine Lagarde, soon to, I guess, former ECB boss. She and ECB, a European Central Bank, she warned that the coronavirus could result in a downturn, the likes of which we haven't seen since the Great Recession in 2008. So she held a call with EU leaders on Tuesday night to urge them to take action and raise spending in order to counter the economic effects of coronavirus. A source told Bloomberg. Now, Eurozone's central bank boss has reportedly added that Europe would otherwise be at risk of a scenario that will remind many of us of the 2008 financial crisis. She said that the ECB was considering all of its office. options before its meeting on Thursday, and the ECB is definitely expected to cut rates as most of the rest of the world is currently doing, and they're likely going to expand their

Starting point is 00:06:23 quantitative easing program. But we will see. And to further tag on to that, the Bank of England just cut rates to an 11-year low. So they cut rates by... 50 basis points, which is half a percent. They're now sitting at an interest rate of 0.25%. They've basically got no more ammo left. You know, they've got nothing left to work with. Like, they're basically at zero. And they're likely going to go into negative interest rates at some point, I would say, this year.

Starting point is 00:07:07 The Fed rate is currently at 1.25. It was just cut by 50 basis points as well. And a lot of people are projecting that we're going to be at zero by summer for the Federal Reserve and possibly negative rates this year, which is insane. Again, it's an instance where you deposit money into the bank and instead of getting interest for loaning your money to the bank, they take some of it. on top of the inflation that you're already experiencing from the Fed printing more and more money. So the situation is just insane because you're getting this double whammy on anything you try to save and you're forced to invest somewhere, but where do you do that when all stock markets are crashing? And again, this is kind of what Bitcoin was built for. Now, is it reacting the way that it should?

Starting point is 00:08:04 Well, I mean, we did see it drop along with global markets on Monday. It's remained relatively still the past 24 hours, but we are in kind of the high 7,000s, like around 7,800 right now, which is pretty close to the lowest it dropped during Monday's, Monday's dip. We will have to see. Now, looking at stocks, everything, wow, since, I last checked, dipped even more. So at the time of recording this video, the Dow Jones is around 1,200 points, getting close to 5%. Everything else looks to be down around 4% or a little bit more. So yeah, it's another down day for global markets.

Starting point is 00:08:51 And as I said, Bitcoin is sitting in kind of the low, the high 7,700s, eking close to 7,800, but again, in the last few days, that's around the low. Like the low that we hit previously on BitFinex was, let if I can just find it here. Again, right around this level. So if we were to break this level, we could be, oh, sorry, 7,700 exactly was the low on Bitfinex. So if we break below 7,700, hey, we could see. further downturn. But again, keep in mind, the halving is around the corner. It's coming up in around two months from now. So we will see what happens with that. Regardless, the market is currently able to gobble up or is currently being flooded with miners that sell their Bitcoin every time

Starting point is 00:09:56 they earn it to cover the cost of operations. And they'll have half as much to sell starting in May. So while it may not have an immediate effect over time, that pinch will be felt. And unless demand drops substantially by half, essentially, then one of two things will happen. Again, either demand drops or demand stays the same and they have to bid up the price in order to obtain the same amount of Bitcoin. So we will see. But yeah, Bitcoin is currently down and seems to be dipping more as we watch. here, but we will find out what happens shortly. Now, the other interesting thing on the side of Bitcoin is that Tether has printed $60 million

Starting point is 00:10:44 worth of new USDT, so a stable coin pegged to the U.S. dollar. And usually what happens with this is because of demand, because of deposits, people asking for more tether, they create more, which then goes to the markets and gets traded, typically to buy cryptocurrency. Now, in this case, it appears that this was done preemptively to kind of have them ready for forward demand. Dovie Wan on Twitter said that Tether can actually now print money out thin air since this was done without an actual deposit or collateral in place. Yeah, and a while back, Tether moved from one to one with the U.S. dollar to backed by all of its assets, so that could vary whether it's gold or dollars or other obligations from other

Starting point is 00:11:45 financial entities. But, yeah, we've already seen some Tether moving from, from the tether treasury to outside sources to unknown wallets to the tune of $10 million. And this was just earlier this morning, like in the wee hours of the morning. So we will see what happens to that. Again, as I look at Bitcoin price now, we're now eking down into the low 7,700s. So it's looking like we're probably going to go below 7,700. And by the time this airs, uh, um, you're, We will find out what happened with that. Anyways, I'm going to move out of Bitcoin price.

Starting point is 00:12:29 I hate to, I'm sorry, guys. I hate to bring up Craig Wright and Bitcoin SV again. But, you know, it's always nice when you see the courts slap down idiocy. So Craig Wright is in the midst of a lawsuit from the family of David Clyman, who is now deceased. The family alleges that Craig Wright and David Clyman together, mind a substantial amount of Bitcoin in the early days to the tune of 1.1 million Bitcoin, which is billions of dollars. And that Craig Wright basically stole a substantial amount from the climate estate. And if he's found to be guilty of that, then he would own, owe half of that

Starting point is 00:13:17 back to them. The funny thing is that this lawsuit and this whole trial has nothing. to do with the validity of Craig Wright's claim to be Satoshi, which is hilarious because right now he's saying that a bonded courier came and gave him, he says that he now has access to that Bitcoin, but that he can't share any of the information because it is attorney privilege, attorney client privilege because the person that delivered it was a lawyer. The judge isn't having any of it. He says it's bullshit. The funniest thing about this is his only evidence is he said the document, one of the people in possession of the documents is Dennis Bocayar McCamayaka. And all that he has is a note that says, I am a lawyer and obtained my

Starting point is 00:14:19 Bachelor of Law degree in 2007 from Moye University in Kenya, and Wright's only evidence for this is a printout of the person's LinkedIn profile. So the judge said, I declined to rely on this kind of document, which could easily have been generated by anyone with a word processing, with word processing software and a pen. And he also pointed out that Dr. Wright has produced forged documents in this litigation. Basically, he has till tomorrow to bring this forward. The funny thing is, if he can produce the documents and he does indeed hold the money, then he's got to cough up half the money to the climate estate.

Starting point is 00:15:02 And if he can't, well, he's screwed anyways because he's submitted documents that are untrue and forged to the court, in which point there's a whole other legal. ramifications for that. So either way, Craig Wright is not Satoshi and he just keeps on digging himself a deeper hole. So best of luck there, buddy. Another thing that I wanted to touch on today, obviously, I'm not a huge fan of XRP. I think it's total centralized trash. You have the ripple Ripple Labs that essentially printed it out of nothing, 100 billion units, and just regularly dumps it on the market under the guise of it being. a decentralized cryptocurrency. It's really not. And one of the people that has been a prominent

Starting point is 00:15:55 proponent of XRP and Ripple for years was Tiffany Hayden. And you may have encountered her on Twitter if you're in the Twitter sphere. And she's been a huge proponent, loves Ripple, was always advocating for XRP saying that it was going to change the world. Well, apparently she sold everything. She's out. She is out. She used to be a self-discipline. She used to be a self-described CEO of XRP that was in jest on her Twitter profile. But according to a tweet she made on March 9th, she sold it all. And she blames a lot of aggressive attacks from XRP supporters. And so the most interesting part of this is her reasoning. So she wanted to host a validator node. So kind of like you run a Bitcoin node in Bitcoin, a little bit different.

Starting point is 00:16:48 But regardless, to participate and have a say in how the network actually operates. However, when she spun up her own ripple-whirp-validator node, she operated in this node to help alleviate some of the limitations of the XRP network, but apparently was excluded from Ripple's list of trusted validators. And so a quote from her, she said, they attacked my character for almost a year for revealing the network as fragile, that the network came close to halting, and that when I spun an expensive validator to help,

Starting point is 00:17:29 I was excluded because it has, essentially, the network has gatekeepers. And so she is alluding to the fact that essentially it's incredibly centralized and permissioned, and it's not the decentralized cryptocurrency that it claims to be. And for years, people on the XRP side of things have said that people in Bitcoin that have been detracting from Bitcoin are detracting from XRP and Ripple are just trolls and they're dealing with old technology and they're just mad because Ripple's on the bleeding edge. But it would appear that it's not just people being toxic, but rather just speaking the truth. and that indeed gradually over time those that are not directly incentivized that don't run the company and the token itself eventually stumble across that information on their own. And so, you know, Tiffany Hayden just happens to be one of them.

Starting point is 00:18:33 So let's move on here. I do want to touch on one hilarious thing that I'm actually kind of excited about. I've talked about this before, but there's a game called Light Night, which is kind of like a battle royale type game like Fortnite. And it's dropping pretty soon here. And the interesting thing about this game is that it incorporates Bitcoin as the in-game currency. So when you're rewarded with something for a win, it's actually Sats and you can actually withdraw to a lightning wallet out of the game. which is really, really cool. I think it's an interesting development for games,

Starting point is 00:19:15 and I think over time, it could become a standard as people cross-compare if there's some really good games that come out and they say, well, this in-game currency is just there and I can't do anything with it outside of the game, but this one I can withdraw and buy real-world items if I want to. That could be a huge draw for people. So I'm hoping that this game is going to be awesome.

Starting point is 00:19:37 but in talking with the guys at Lightnight, at Satoshi's games, they actually said, hey, we'll make a skin for you in the game. And they have now done so. This is super funny. You can get BTC sessions glasses in the game. I just, I find this so funny. I'm now part of a video game. How hilarious is that? Actually, the guys over at Tales from the Crypt, TFT, TFTC,

Starting point is 00:20:07 They have like a logo, their TFTC logo on the side of one of the guns you can get in the game too. So super funny, super exciting. I'm excited to play this. If you guys do want to check it out, they did give me a link where you can essentially get that, if you order the game, you get that skin for free and you get 20% off. So I'll leave that down below. I'm going to be playing around with it. I think it could be fun. But we'll see.

Starting point is 00:20:32 Anyways, guys, I'm going to wrap up there. Thank you guys so much for watching. As always, please, if you're on YouTube, hit like, subscribe, and share. And if you're listening to this on the podcast audio only, be sure to share that on your social media links. If you want to help out the show in another way, you can hit up the sponsors I mentioned down below, Bitcoin and Leden as well as Wasabi Wallet. And you can also check out Rise Wallet. These are physical Bitcoin gift cards you can pick up at a store near you. Super easy, super idiot proof, especially for onboarding new users.

Starting point is 00:21:04 You pick one up, you gift it to somebody. They're instructed on the back of the card to download the paired app and scratch and scan the code. It pretty much just creates them a brand new Bitcoin wallet on the spot and sends them an on-chain transaction for the face value of the card. I've gifted these to a bunch of people. Again, I can't give them enough praise. They're just so super easy to use. So head over to risewollet.com. If you're interested, click on locations to see where you can grab one.

Starting point is 00:21:28 They're only in Canada right now, but they are looking at expanding. So awesome for them. With that I'll wrap up. If you really like what you saw, you can always drop me a Lightning Network tip at my tippin.me page. That's tippin.combe slash at BTC Sessions. Have a wonderful evening and I'll see you next time for your daily session.

BTC Sessions - Fed Injects More Than Entire BTC Market Cap Into Repo, Tether Printing, CSW Court Fail EP027

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