BTC Sessions - NEWS ROUNDUP: Bitcoin's Bull Market Never Left! Brace Yourselves ep208

Episode Date: October 21, 2021

Bitcoin has risen to achieve a new all time high of $66,800, first ETF launches, Paul Tudor Jones, Peter Thiel, Newt Gingrich and many more see the writing on the wall. All this and more in today's news roundup!   💪 SUPPORT THE SHOW: Shakepay is the easiest way to buy Bitcoin in Canada Sign up now and get $10 free after your first $100 purchase! https://shakepay.me/r/BTCSESSIONS ALSO search/subscribe to Shakepay on YouTube! LEDN Bitcoin backed loans –  get $25 free https://start.ledn.io/btcsessions Get Wasabi wallet for Bitcoin privacy https://wasabiwallet.io/ Keystone Wallet: secure your Bitcoin! http://bit.ly/KeyStoneSessions BillFodl: get your wallet backups in solid steel. https://privacypros.io/btcsessions Bitrefill: use Bitcoin to purchase gift cards https://www.bitrefill.com/buy/?code=O04UMic9 Like what you see? BITCOIN TIPS: https://strike.me/btcsessions

Wasabi wallet and fairly private. Hey, what's going on everybody? Welcome to the show. Hope you're having a good week. We have plenty of news to talk about this week. A new all-time high, one of them, ETF launch, lots of people starting to see the writing on the wall. So plenty to discuss.

As always, this is live. Anything can happen. And I defer to my friend Bill here. We'll do it live. Okay. We'll do it live. Do it live. I'll write it and we'll do it live.

The fucking thing sucks. If you haven't already, make sure you hit like, subscribe, and share. All of those things really do help get this in front of more people. As always, I am Ben with the BTC sessions. This is your daily session. Before we dive in, let's take a look at where we're sitting in the market right now. I'm pulling up the Bitbo.io dashboard. We're sitting at 62,647 bucks per coin.

A single US dollar will pick you up 1,596 sats. Back to the days when it was over 2,000 sats, I remember them well. I think those are behind us, though. I said it many times before. Those days would not last forever. It appears they have come and gone. 89.76% of all Bitcoin have been mined. In terms of fees next block, you're looking around 13 sats per byte.

If you're willing to wait up to an hour, you could get away with one sat per byte. But again, those types of fees, especially getting towards the end of the year, could begin to eke away from you. So, you know, set those and maybe use something replaced by fee, which we'll touch on what that is momentarily. Of course, shout out to sponsors of the show, shakepay.com. If you're in Canada and you're stacking sats and you're not yet using shake pay to buy your Bitcoin, what are you doing? This is the easiest and best way to do it in Canada. This is how I get Bitcoin in Canada. Easiest app, you can get it on your phone.

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you can shake your phone every single day and get free sats. It's called Shake for Sats. Super awesome. Check it out. Links are in the show notes down below if you want to jump on ShakePay today. Now, ledden.com, you can use your Bitcoin for a variety of different services, particularly if you're in a pinch and you need to get your hands on dollars, but you don't want to sell your Bitcoin because that's a taxable event

and maybe you're worried about having to buy back in at a higher price. Well, this could be for you. You can use your Bitcoin as collateral to get a Canadian or US dollar loan. Simply deposit Bitcoin, get dollars to your bank. And when you pay those back, you get back the same amount of Bitcoin. They also have savings accounts for Bitcoin and USDC. And they have their B2X offering. If you're feeling particularly bullish, check them out in these show notes.

Now, I do live on Bitcoin. Bit refill helps me with this a lot. because I can get any gift card that I need in a variety of different countries, and I can pay with Bitcoin both on-chain and via the Lightning Network, which I regularly do. They also allow you to earn Sats back as you shop, which is a godsend. And they also have a pretty good referral program. So check them out down below.

You guys know the Keystone. One of my favorite and most use hardware wallets because it is 100% air gap, which means you never plug it into anything internet connected. It's all done offline via QR code. meaning it keeps the keys to your money safe and away from potentially malicious internet connections. You can upgrade to their Bitcoin-only firmware, which I highly recommend. It's really badass in a multi-sig setup. And it works with all your favorite wallets, blue wallet, wasabi, specter, sparrow, the whole gamut.

Check it out. Links are in the show notes. And finally, if you're backing up any important Bitcoin wallet, make sure you get it in solid steel because a piece of paper is not going to cut it, my friends. fire damage, water damage, accidentally discarding it if you're not careful. I'm paying attention to what you're doing. I've heard some horror stories in the past couple of years and having it on steel with the bill foddle over at PrivacyPros.i.o can give you the peace of mind.

This is how I actually back up my own Bitcoin wallets, especially with any meaningful amount in them. So check them out. Links are below. And with that, let's get into the news because it's been a pretty crazy week. I mean, it feels like it's been building to get to what's going on right now for a while, right? We had a peak earlier in the year, you know, April, May was all kind of exciting. And then we just had the Elon dump and then just dismal sideways slash downwards action for basically through the summer until we started to gradually peak back up. But we've officially now broken the previous all-time high.

We're back down a little bit from there. But we did hit a new all-time high above the previous one of 64, the high 64,000s. It's now been up to mid-to-high 66,000s. And let's be honest, I don't think it's done. You know, this is very much mirroring kind of what we saw in 2013. rather than 2017. So 2013, it had a very decisive, hey, this is the top earlier in the year, a big pullback, and then a lot of boring sideways, nothingness.

And then when it finally peaked back up over that previous all-time high, it just ripped in a very short amount of time. I would not be surprised to see a similar thing play out. As opposed to 2017, we saw a lot of, there was kind of a distinctive peak earlier in the year around three, and then a pullback to like 2K and then it just kind of you know little peaks throughout the year and then a pretty big run at the end of the year from 10 to 20K happened in like a few weeks so it's seeming to mirror 2013 a little bit more closely but it's kind of somewhere in between

we shall see if it looks similar I mean if it does have that similar kind of price action you know, that could be astronomical, right? But who knows? Anything can happen. I wasn't expecting a 50% pullback and sideways action for like three or four months in the middle of the year. That was not in the cards in my brain. So anything could happen. But if we start to mirror somewhere in between what happened in 2013 and 2017 percentage-wise,

you could see, you know, $200,000, $300,000 Bitcoin by the end of the year. if it had that kind of quick boom to the top. Who knows, though? Anything can happen. Regardless, I know that I just want to own Bitcoin because I think long term, it's valuable and helpful for humanity regardless. So here on CNBC, they were just kind of summing up what happened. They said Bitcoin gnawed a fresh all-time high Wednesday as investors cheered the successful

launch of the first U.S. Bitcoin Futures Exchange traded fund. The world's largest cryptocurrency climbed 3.9% to 66398, although I did see it higher elsewhere. The coin at its highs past 66,900 Wednesday topping the previous record of 64-89 set in mid-April. Quote, the key here is whether we are able to establish support above 65K, said Jesse Proudman, CEO of Crypto-Robo-Advisor Makara. I don't know who this guy is. Anyways, he said, if we can, the classic Q4 crypto rallies we've seen in most years could take Bitcoin towards some loftier price predictions we've seen over the past several months. If cell pressures take over, though, the next leg up could take a while to materialize. And this is kind of the debate right now with a lot of people.

Are we kind of seeing this extension of the cycles where things just take longer to take place? I guess we'll find out in the next few months here. Is it going to have a big blow off top and rip up? Or is it going to be kind of like a slower, steadier thing? Or, you know, do we get sideways action? That would probably be the most grueling is if we just barely got over an all-time high and then we just sat sideways for like months. Oh, God, can you imagine?

But I should be a lower time preference than that regardless. So a lot of people now that we're kind of eking back, up. Again, you're seeing the pundits come out and say, hey, guys, the writing's on the wall here. Billionaire trader Paul Tudor Jones is one of those people. And he went on a little bit of a rip here. He had, he did an interview the other day. And there were a bunch of quotes that he had in and around Bitcoin and the implications of what Bitcoin means, both for and about our current financial infrastructure. So some of the quotes he had, some of these were good ones, said the number one. issue facing the man on the street as well as investors is inflation. It's probably the single biggest threat to financial markets and society in general. There is $3.5 trillion just sitting in

liquid deposits that could go into stocks or crypto or real estate or be consumed. That's a huge amount of dry powder, which is why inflation's not going to be transitory. We have a Federal Reserve Board that are inflation creators, not inflation fighters. That is a huge, huge deal. We have maybe the most inappropriate monetary policy that we've seen in my lifetime. We're adding stimulus. We are still quantitative easing when we should be doing the exact opposite. We're treating inflation with this cavalier attitude when we shouldn't be. We're ignoring it because we haven't seen it in four decades.

The inflation genie is out of the bottle. If we don't immediately shift to attack it, we run the risk of getting back into the 70s, where it was the single most important issue for multiple presidents and multiple Fed chairman. It was pernicious and persistent. If we actually begin to address the most important and most pressing problem we have the dual mandate, we're going to get a PE compression. The stock market's not going to go up fast and it may go down.

And so he's talking about advising investors to be careful if the Fed moves to reduce inflation as it could well lower equity valuations. And then finally, he said, we're moving into. an increasingly digitized world. Clearly, there's a place for crypto and is winning the race against gold. Crypto would be my preferred inflation hedge over gold at this moment.

And he noted that a single digit percentage of his portfolio is in crypto, particularly Bitcoin, and his fund has a small trading position. Now, J.B. Morgan, analysts at J.P. Morgan, are saying a little bit of,

they're saying that this, Again, to echo PTJ here, that Bitcoin is kind of performing the way it is because it is a hedge against inflation and not as much because of this ETF. So I'll read a little bit here. Concerns that inflation will keep rising and not be transitory is the main driver for the Bitcoin price pushing to new highs, not the first U.S. Bitcoin futures exchange trade and fund, J.P. Morgan's strategist said, according to a Bloomberg report. quote, by itself, the launch of BITO is unlikely to trigger a new phase of significantly more fresh capital entering Bitcoin. Instead, we believe the perception of Bitcoin as a better inflation hedge than gold is the main reason for the current upswing, triggering a shift away from gold ETFs into Bitcoin funds since September. As inflation rates have not declined, despite the Federal Reserve's multiple remarks that it will be, quote, transitory. investors have sought investment vehicles to protect their purchasing power.

Gold has failed to act as such in recent months, contrary to Bitcoin, which has seen significant U.S. dollar gains. Institutional and professional investors are rebalancing their portfolios, cutting out losers, and hopping on the fastest horse. As a result, this shift away from gold ETFs into Bitcoin funds has gathered pace. This flow shift remains intact supporting a bullish, outlook for Bitcoin into your end. So yeah, J.P. Morgan.

I bet Jamie Diamond hated, hated that report. He still hates Bitcoin. But I guess at least people within the company that he's CEO of are seeing things a little bit more clearly. Now, another person that's calling out the bullshit in our current economy and seeing Bitcoin as an answer to that. is Peter Thiel. So Peter Thiel, the co-founder of PayPal and Palantir,

has said he feels like he's underinvested in Bitcoin as the world's most popular cryptocurrency climbed to an all-time high just the other day. Speaking at an event in Miami on Wednesday, just hours after Bitcoin hit a record new price, Teal reportedly joked, you're supposed to just buy Bitcoin. I feel like I've been underinvested in it.

His comments, which were reported by Bloomberg, came after several other billionaires, including Musk and, Jack Dorsey have showed support for it. Bitcoin's price has been obviously volatile the last few years and many have warned that it presents presents a big risk to invest investors. I mean, guys, okay, first of all, CNBC, chill. It's risky if you're trying to trade it. And we'll talk about people that have been trying to do that and have been suckers with it in the last little bit. But yeah, it's risky if you're trying to time it and get more dollars. If you're just holding onto Bitcoin long term,

I basically everybody who's ever bought Bitcoin is in profit at this point. And it's a 12 and a half year track record. So let's keep going though. Tio went on to say that his only hesitation when it comes to investing in Bitcoin was that he thought the secret was already known by everybody. However, he then went on to say, I think the answers are still to go long. Maybe it is still enough of a secret. At a separate event on Monday, the billionaire said of the stratospheric price of Bitcoin is one of the clearest indicators that the current political system is unstable.

He said, I don't know that you should put all your money into Bitcoin at $60,000 right now. But surely the fact that it's at $60,000 is an extremely hopeful sign. It's the canary in the coal mine. It's the most honest market we have in the country. And it's telling us that this decrepit regime is about to blow it. up. Damn. And I mean, this is what they're talking about. This from the financial post here in Canada. I know it's their U.S. base, but it's kind of happening everywhere. So Canada, inflation at almost two decade high complicates Bank of Canada rate plan. The cost of just about everything that

statistics Canada measures was more expensive in September. And again, they kind of show the CPI, which is kind of a bunk metric anyways, because they exclude a lot of important things in there. But they show it's at 4.4%, which is record highs, again, two-decade highs. And then they also, they got to include the CPI excluding gasoline because nobody needs that at 3.5%. They also have just a kind of a bit of a breakdown, 12-month percent change in eight different components. So, they have an overall of 4.4% up from 4.1%. Food went from 2.7 to 3.9, sheltered, basically stayed flat from month to month. Household operations stayed flat.

Clothing went from deflationary to inflationary. Transportation up from 8.7 to 9.1. Health and personal care up a little bit. Now, the only ones that were down were recreation, education, and reading, which is only down 0.1%. And alcohol, tobacco, and recreational cannabis was down about half a percent. So, yeah, if you want, want to get drunk and forget all your troubles about this shitty inflation, then I guess you can

afford a little bit more of that this month. Oh, God. Okay, let's keep going. U.S. politician Newt Gingrich wants governments to use Bitcoin as an inflation hedge. I didn't see this one common, but let's read on. The Financial Times has reported that Newt Gingrich, who served as 50th speaker of the U.S. House of Representatives from 1995 to 99, joined the International Bitcoin Advisory Corporation, or IBCC, as he pivoted to Bitcoin. I honestly, I didn't know that was a thing previous to today. So anyways, he went on, he's going to help countries and central banks hold Bitcoin as a hedge against inflation. I'll read that again. He's going to help countries and central banks hold Bitcoin as a hedge against inflation. Let's keep going down here.

The IBCAC is a new company based in Israel founded by former bank banker Abby Fergan. Its goal is to create an outfit to help central banks and wealth funds with all the needs they may have with digital asset investments. Another goal is to help government institutions adopt Bitcoin and other crypto assets. It has been estimated that the market for servicing the investment of government institutions into digital assets is potentially worth more than $50 billion since central banks globally hold $30 trillion and another $8 trillion in sovereign wealth funds. The $50 billion figure is accurate if banks and wealth funds invest at least 1.5% of their assets into crypto. Gingrich told the Financial Times that in the long term, IBCC will be able to offer governmental

institutions and central banks to invest in Bitcoin and hold part of their assets. in it as an inflation hedge. As it turns out, he meant small countries like El Salvador whose banks do not expect to impact financial behavior globally are not game changers here, are not the game changers here. Yeah. So anyways, that's interesting. A former U.S.

head of state, is that a fair term to use for him? Anyways, a former U.S. person that was in a large position of influence in the U.S. political system through the 90s is now actively working on helping central banks and governments hold Bitcoin to hedge against the, oddly enough, to hedge against the irrational actions of other central banks. Wow. Wild world. and also just for a little cherry on top. Here's a picture of Preston Pish from the Investors podcast with Newt Gingrich in 2017. He said, Orange Pilled on the 15th of June 2017 at 8.38 p.m. Here's the receipt. So I can't fully vouch for this, but it seems Preston may have been at least one of the things

in Newt Gingrich's ear to turn him on to Bitcoin. Now, he did mention El Salvador in this piece. and El Salvador, obviously, they've just made Bitcoin legal tender at the beginning of September. And I mean, they're probably feeling pretty good about that now since around the time they did it. It was around 40 grand. It's up about 50 more than 50% since then. So El Salvador, as first of its kind of adoption of Bitcoin, won't be an obstacle for the government to reach a $1.3 billion loan agreement with the International Monetary Fund, or IMF, according to the country, central bank president.

The cryptocurrency will lose its reputation as a speculative asset and prove its use as a legitimate payment system. Central Bank president Douglas Rodriguez said in an interview Monday. He even expects Bitcoin's notorious price volatility help the economy expand more than the 9% the bank forecasts it will this year. Quote, we don't see any risks, perhaps upside risks, Rodriguez said in a virtual interview from San Salvador. Bitcoin will, quote, become a payment system, a system for financial inclusion.

It's something that he said the nation has emphasized to the IMF amid talks for a potential $1.3 billion extended fund facility. The IMF is expected to release its latest review on El Salvador's finances and economics next month, which could jumpstart renewed discussions. Investors are closely watching the drawn-out negotiations, especially in the shadow of controversial political decisions under present president Naib Bukelli, such as replacing top judges and making Bitcoin legal tender. Though the nation doesn't have major dollar bond payments until 2023, it's highly indebted

and needs a deal with the multilateral lender to unlock access to international markets this year. We shall see. So as the IMF hold a grudge, if these guys make Bitcoin legal tender? I don't know. Stay tuned. Let's keep going. Now, here's somebody who's not going to be very excited that Bitcoin is starting to pump again. And that is Guggenheim's Scott Minard.

This name sounds familiar. He made a lot of headlines earlier this year calling for astronomical prices of Bitcoin, $400,000, $600,000. He then started calling for $15,000. Well, it would appear he's no longer holding any Bitcoin. They bought a bunch of Bitcoin through Guggenheim. And I guess they lost it all. Let's see what happened here. So,

this is so fucking ridiculous, I've got to say. So Guggenheim, CIO, chief investment officer, said he's out of Bitcoin as he can't understand what's happening with the cryptocurrency markets. Oh, sweet Lord. Okay. So Scott Menard, he earlier said that it could hit. He said, well, I'll read this quote here.

The one thing I learned is a bond trader years ago. When you don't understand what's happening, get out of the market. So discipline tells me, I now fully don't understand this. He pointed out, oh, God, he starts talking about like all these shit coins like Shiba Inu, and he said, well, if you bought Shiba, for a thousand bucks, you've got $2.1 million. He's talking about these illiquid crap coins that are just traded on random exchanges that are basically the flavor of the week.

he's basically not done any look at previous markets where every form of bullshit pumps because people are feeling like they miss the boat with Bitcoin. And he's trying to conflate the two, saying, well, if this is stupid, then this must be stupid. Anyways, he goes on. In February, Minard predicted that Bitcoin could hit $600,000 after saying in December that Bitcoin could reach 400K. So he bumped his prediction up even higher. In late June, when Bitcoin was floating around 30K after coming down from 64,

Minard predicted that Bitcoin could fall to around $15,000 at its low point. But today, obviously, it's up 62, 60. What's it out right now? It is 62, 785. Okay. He said we were going, we were long going into that. We sold. It pulled back to where I thought it was.

was and really after looking at it thought, you know, we're going to probably go lower. Well, we didn't. So we're not in. So in November shortly after Minard's first bullish price prediction, Guggenheim filed an amendment with the U.S. SEC to be able to invest up to $500 million in Bitcoin through the gray scale Bitcoin Trust or GBT, which is a unit of digital currency group, so and so forth. Anyway, so basically, you have this guy who says long term, I thoroughly believe that Bitcoin is going to be valued somewhere between $400,000 and $600,000.

Right now it's at 30. I think it's going lower, though. So I'm going to sell it all and then try to buy back lower. Well, basically, it went down to like 29 and then never went lower than that, right? like that that was the extent of it so so he was wrong and because of that he's completely out of his position at 30k it's which has now more than doubled to over 60 so just and he still thinks that it could go to 400 or 600,000 dollars and he's sitting on the sidelines with this thumb up his ass because he's sad that he missed that he thought there was a dip that he was going to be

able to buy. He liquidated this position and the market basically flipped him the bird and started pumping. This is why you don't try to time the market. And another person who did this, oh, this is, this one is sweet. This one I find super funny. So Jim Kramer, he was on on Pomp's podcast. He appeared to be orange pills and he was all about Bitcoin and everything. He bought a ton of it. And then when we went, when we were kind of down near the lows and China banned Bitcoin for the umpteenth millionth time, uh, Kramer said he sold almost all of his Bitcoin after China's crypto crackdown. And, you know, he's thinking, oh, they're going to regulate this thing and it's not going to go well and everything. So there's his face on screen, if you're watching this on YouTube anyways, his face on screen, he looks very concerned and he sold everything. Well, this screenshot next of his. him and it says that the bug Bitcoin hits record highs and he's got his face like in his in his palm of his hands he's like half asleep looks so upset about life it's double from what he sold it at guys don't try to time the market just grab like if you want to own Bitcoin just gradually

accumulate it if you're in it for dollar gains you're going to fuck yourself like that that's that's kind of the long and the short of it my favorite quote about about this is Greg Foss always says, don't be too smart by a half. And so he says, too smart by a half is when you outthink a logical trade. You try and buy on the bid side rather than lifting the offer and it trades away from you and you never get the position on the books. So in other words, you take everything off the table thinking that you're smarter than the market and then you just lose it all and it trades away from you. It runs away and you'll never have to be. You're it at the same price you used to have it at. Don't be that person. Don't be that person. If you

want Bitcoin, keep your Bitcoin and just gradually add to it. If you don't want Bitcoin, then don't hold Bitcoin. But don't go into it thinking, well, I'll get rid of it here and then I'll buy back here and then I think it's going to go down here. So I'll buy back low. You're going to get screwed. And even the quote unquote best and the best, the chief investment officer of Guggenheim with potentially $500 million of investment opportunity in Bitcoin, blew it because he thought there was going to be a dip. The guy that goes on CNBC every fucking day and tells people what to buy and what to sell with his expertise

sold the bottom of the dip because he thought that China was a threat. So these are the people, these are the pundits that are telling you to get into and out of Bitcoin and this is how they're performing. Let's keep going. A couple articles that I wanted to point out, I'm not going to go read the whole thing here, but worth a read if you want. This one from Zero Hedge,

and it's called The American Dream is dead, and Bitcoin has replaced it. And it's talking about home ownership was originally part of the American Dream, and it was an investment ownership vehicle through the middle class to add to people's prosperity. And so the American Dream was, okay, we're going to buy a home with a,

white picket fence and that's where the majority of our investment's going to sit and that will be our single biggest investment over time and so on and so forth. Well, that's really changed. And so he makes the case as to why he thinks that that part of the American dream is dead and that is being swapped out for people. So some of his bullet points is the digital scarcity of Bitcoin and the seemingly not as much scarcity of real estate, given that you see things like massive condo buildings going up, you're seeing real estate being currently being bought up by large companies and being bought up as a store of value and people not actually living in them.

So the costs of homes are kind of perverted by the market. He talks about divisibility, which you don't really get in investing in a home. Like to get equity out of it, you've got to apply for a home equity loan or sell the thing as a whole. Fungibility, again, like one home does not equal one home and it depends where it's located and the conditions of the market. It talks about low maintenance when it comes to Bitcoin. You just own it and it just, it is what it is. Whereas, you know, with a home, you've got upkeep. If you have tenants, you have upkeep with that.

You have property taxes, all of that. The transparency of Bitcoin, you can see everything on chain. You can see the movements of funds. You can just see what it is and know how to act. Whereas, and again, this is where he gets into institutions, buying up homes. He's talking about institutional investors like Blackstone and tech companies like Zillow. And they've got a lot of data because they've got to handle in the whole market. And you don't see as much of that.

So they really get a pulse on the market. and what's happening in certain areas. And in a lot of cases, you're going into this blind, especially if you're treating homeownership as an investment. He talks about liquidity, homes particularly not really liquid, right? It's very dependent on the market. Bitcoin is liquid 24-7. Talks about Bitcoin is freedom.

It allows you to move wherever you want, allows you to keep mobile. Again, homeownership may not allow you to do that. And again, he said that he ends with Bitcoin as hope and it gives you a call option on the future. I'll read the last little part here. He says, The American Dream is the Bitcoin Dream.

With the desire for home ownership so firmly entrenched in the American subconscious, swaying the public opinion is no easy task. By arguing from first principles and relying on lessons from history, I hope this article helps present Bitcoin as a better, safer, and more accessible alternative to home equity. While the American Dream may be dying, the Bitcoin Dream has just begun. So if you want to look this article up, again, it's not too long of a read, and I think it's not a bad one.

It's called The American Dream is dead and Bitcoin has replaced it. Another good article, worth it a look is from national affairs. It's called Bitcoin and the U.S. fiscal reckoning. It kind of goes through some stuff that you guys might already be familiar with, the Nixon shock going off the gold standard. But then it talks about the perversion of the financial system now with U.S. treasuries and the dynamic. with the Fed, how the Fed will buy them, is increasingly buying more and more of treasury bonds that would typically be sold to,

whether it be constituents within the U.S. or foreign buyers, but now more and more of that, the foreign buyers and the foreign countries that might typically buy up those bonds, they've been lowering their positions. And in order for the Treasury not to have to offer a higher interest, rate, the Fed sweeps in and buys up these bonds at whatever the hell rate they're offering. And whatever doesn't get bought, the Fed buys. And so it artificially keeps interest rates low

on these treasuries that typically just wouldn't have the demand to justify such low interest rates. So it's really interesting to me. It kind of opened my eyes a little bit more to exactly how that dynamic works, worth a read. And then it talks about how Bitcoin kind of, more or less, how Bitcoin fixes this. So be sure to check that out. A couple more things. Let's talk about some interesting tech releases, so and so forth. Spector 1.7.0 is out. So if you guys haven't tried Spector, I did do a video on this, basically a way to manage your hardware wallets, a way to create multi-sig or pod wallets. Basically, you can manage Bitcoin in a lot of different ways. And it can either connect to your node or it can actually download a full copy.

of the Bitcoin blockchain itself and become your node on your computer. With this version, they added liquid, the liquid network, liquid BTC. So if you're unfamiliar with liquid, I've also covered how to use liquid, usually using blocks from green. But liquid is basically, it's not entirely trustless. It's like a federated model. It's a peg between Bitcoin and liquid Bitcoin. So you're not, it's not actual Bitcoin.

You need to keep that in mind. If you have a use case for it, it would be probably in and around confidential transactions and faster, cheaper transactions. I probably wouldn't keep a meaningful amount in there. But for some of you, it may be useful. I like playing around with it. I have like a couple hundred bucks sitting in Liquid just to test out and see how it goes. You can also have vouchers and tokens and stuff on Liquid.

Again, I'm not super into, like, if you have a share. shit coin and you issued it on Ethereum and then you take that shit coin and you issue it on liquid, it's still a shit coin. But you can still do things that aren't expected returns, right? You can still do things that are like, oh, I have a voucher so that you can buy a hat or something like that. And then you can just redeem the voucher on a website and it's like a proof of payment. You can also have things like actual registered securities that exist on the liquid side chain. So these actually exist. They're regulated entities. that you own part of a company, not just like, hey, I made a coin and there's no promises behind it.

It's like, no, this is a regulated, registered security that you can own on a side chain of the Bitcoin blockchain, which is also an interesting thing. Whether or not the securities themselves are worth anything, whether you think the business model is any good as aside the point, you can still use a side chain of Bitcoin to hold and transfer those shares of companies. So anyways, they released Specter 1.7 with support for liquid. So I'm going to have to dive into that soon. I think I'll probably make a video of that in the coming weeks, but I got to mess around with it a little bit. So we shall see. Just keep your eyes peeled for that.

And hopefully I'll drop that soon. Another thing, impervious. com. Interesting. They're going to be creating a browser. So what is impervious? Basically, they're creating a third layer. like basically a new internet that is stacked on top of Bitcoin.

So think Bitcoin, layer one, lightning network, and then impervious AI. And so impervious, and they kind of list the different things that you can do through the lightning network on impervious. You can do peer-to-peer messaging, audio and video calls, lightning payments, direct content monetization, universal search and discovery, and plenty more. So a lot of people don't know this, but you can actually do a phone call through the Lightning Network. You can route a phone call through the Lightning Network. And it's a phone call where there's no kind of trusted third party in between.

And nobody outside of you and the recipient of the call ever know that that call has taken place. There's no record of it anywhere. Same with messaging, all this stuff. It kind of starts to retain privacy and allows you to actually say. send information through a network layer on top of Bitcoin, on top of lightning. It's kind of mind-bending stuff. They had a hackathon a few weeks back where they had some of these perfect concepts drummed up.

It was amazing. So I don't know how feasible some of this stuff will be, but I'm here for it. I want to play around. It's exciting. And the best part is you don't need a shit coin to do it. You don't need new tokens for this. build it on top of the existing infrastructure and just use Bitcoin as the base layer of value and lightning as the transactional layer of value. And then you have this layer on top that

just uses that infrastructure as a base layer for not only communications, but value as well. And that's pretty wild. Yeah. That's all I have to say about that. Last couple of things, these are kind of more warnings of sorts. So, okay, this is kind of a sensationalist headline here on Markets Insider. Bitcoin briefly crashed 87% to about $8,000 on Binance U.S. crypto trading platform. What actually happened? So I'll just read a little bit here.

Bitcoin briefly plummeted to about $8,000 on Thursday, but only on the Binance U.S. trading platform. The coin had been trading around 65K when Biden. Finance posted a candle that showed a price. The price sank to $8,000, noting that the coin's one-minute candle floor on the crypto platforms was about $64,000. So like it was a flash crash really quick. Even CZ from the CEO of Binance only came out and said, expect very high volatility in crypto over the next few months. Thanks, buddy.

We get it. So again, discussions of the occurrence trended on Twitter. many traders posting photos of Binances Bitcoin Candlestick graph that tracks a pattern price. They call it a scam. But realistically, somebody else was saying, well, well done, Binance, US. And he complained that Americans are forced to use poor exchanges where they can get completely scammed by unreasonably thin books. So what does he mean by thin books? Basically, an order book is a bunch of offers to,

to buy or sell Bitcoin at certain prices. And so they'll be offers to buy Bitcoin at the current price, slightly below it, slightly below that, all the way down for certain amounts of Bitcoin. Somebody's got X number of dollars on the table that they're willing to buy Bitcoin with if it drops to a certain price. A thin book means that, let's say Bitcoin's at 65K, I have an offer to buy it at 64K, and I've only got $1,000 worth to buy. so I would only be buying a small percentage of Bitcoin.

And you've got orders like that all the way down. But then other people have placed orders way, way down, like $8,000. Hey, if Bitcoin drops to $8,000, I'm willing to buy $8,000 worth of Bitcoin. And odds are, that's never going to happen unless an exchange has a really thin order book. And the number of people between $65,000 and $8,000 is not very much. And maybe there's only, I don't know, 50,000. $100,000 worth of dollars sitting in between those two price points. And that means if somebody market sells, which is another way of saying, just sell it all at

whatever price I can get it for, all of a sudden you get into an instance where you may have accidentally sold one Bitcoin for $8,000 because the markets are so thin that you eat through all those offers. And it goes, okay, well, this guy will buy this amount for $64,000 per coin. This person will buy it for 63. Oh, there's nobody for 62, 61, 60. This guy will buy some for 55. And then all of a sudden you get down to, oh, this guy will buy a whole coin for $8,000.

And that appears to be what happens. Somebody just dumped a bunch of Bitcoin all at once and just said, uh, market sell and then got wrecked because they sold something that's worth 60 something grand for eight. So don't do that is what I'm saying. If you're needing to liquidate coins, um, then maybe. just maybe don't market

sell set limit orders is a better way to do it okay another warning and this is just kind of like an indication

that I think we're about to have a pretty crazy upside over the coming months because bullshit like this was all over the place in 2017

as we neared the end of the year and Shikar really crazy it was so scammy This is a new coin. It's called WorldCoin. Introducing WorldCoin, a new cryptocurrency that will be distributed fairly to as many people as possible. So what is this?

Effectively, they've created these. I'm not even kidding here. They've created these metal orbs that have some sort of like ocular scanning device to scan your retina. And if you go to these devices and scan them, it encrypts your personal, identification via your retina and then issues you new world coin. And it's done via this like multi-level marketing scammy kind of setup where it's like you get incentivized to onboard people, the world coin. And there's a CEO because I don't know how the fuck they think this is not going to be

considered a security. In what world does a CEO come out with like a roadmap of what they're doing? basically issue a currency from nothing and then issue it to a bunch of people and incentivize other people to issue it. Like, I... So anyways, I tweeted about it. I said this is the kind of 2017-style bullshit

I was waiting to see this year. A global world coin with the CEO distributed through a multi-level marketing scam using onboarding with orbs that scan your iris. Yeah, it's... We're going to see lots of this. probably don't buy this crap. The sad thing is the,

this does have the potential to start to like be up in the top of like the all of the shit coins on like coin market cap or something. I could see it happening. Just because it gets irrational when when prices start going up. So something else. Anyways, guys, I've done a few other things this week. I encourage you to check it out. I did a new video on using Whirlpool, aka CoinJoin in Sparrow wallet.

So Sparrow wallet is desktop wallet. If you haven't used it before, I have a full tutorial on that itself. But I did one with their new addition of coin join. So you can kind of obtain some additional privacy when using Bitcoin, using their coin join implementation in there, which indeed, yes, that is the Samurai Wallet Whirlpool that they've just added into Sparrow. So yeah, really, really interesting. a lot of fun to play around with, check it out.

The other thing that I did is I did a short two-minute video on how to cancel a Bitcoin transaction. Not possible in every wallet, but it's using RBF or something called replaced by fee, where it allows you to either bump your fee and in some instances revert the transaction back to yourself as long as it has not yet been confirmed on the Bitcoin blockchain. So you can check that out as well.

And also, tomorrow, why are we bullish? I've got both the boys from what the fuck happened in 1971. So we've got heavily armed clown and Ben Prentice. We've also got Courtney Stephen. He is an alum from the Hamilton Tiger Cats, so a CFL, former CFL player. And we've got Keep It Simple Bitcoiner, who obviously has some solid guides around using Bitcoin as well. So excited to have all those guys on and that'll be a lot of fun. So I guess I'm going to wrap it up there. Thank you guys so much for joining me. I do see you guys in the chat. it's kind of hard to respond to that stuff when it's just me on my lonesome.

But I will be doing that again tomorrow for why are we bullish. Don't miss that 6 p.m. Eastern time. As always, please like, subscribe, share, all those things. They really, really do help. I can't stress it enough. If you want to help the show in another way, you can hit up the previously mentioned sponsors down below, shake pay, leaden, bit refill, Keystone,

and Bill Fottle at Privacypros.io. If you really liked what you saw, you could, if you so please, drop me a Bitcoin tip at my strike.me page. That is strike. dot me slash BTC sessions. When you get there, type in any amount you please.

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wherever you may be. See you guys next time for your daily session. Hottle by Bitcoin.