The Wolf Of All Streets - Bitcoin On The Edge! Fed Signal Sparks Big Questions

Episode Date: August 21, 2025

Bitcoin remains volatile as markets await Jerome Powell’s Jackson Hole speech, with traders watching for signals on future rate cuts and inflation policy. Meanwhile, the banking lobby is pushing to amend the GENIUS Act, highlighting tension between Wall Street and crypto firms over stablecoin rules. In politics, the Winklevoss twins have pledged millions to a crypto super PAC aimed at shaping the 2025 elections. And in meme coin chaos, a Kanye West-themed token briefly hit a $3B market cap before crashing amid insider concerns.

Bitcoin is trading at $113,000 right at the bottom of the range. Many people have been watching. And the Fed is shaking things up. It's Jackson Hole right now. And people are expecting Jerome Powell to maybe signal that the Fed is not so eager to cut. Of course, we live in the upside down when there's going to be rate cuts. That means markets are supposed to go up. And if we don't get rate cuts and free liquidity and money printing, that apparently is bad

for the market and for the economy. going to discuss what all of this means for Bitcoin and more with two of my absolute favorite Bitcoin builders, Yago and CJ. You guys do not want to miss this one. Let's go. Good morning, everybody. As you can see, I have, I am not in my studio at the moment, but still here to deliver all of the important commentary on what's happening in the market. Of course, with Yago, almost every Thursday of late, we've been missing some. You're obviously, obviously off location today.

And of course, CJ, who guys have seen now on the channel a few times. Like I said, my two probably favorite bitcoiners in the world, you know, you guys, if I need some good sound bites and some good hot takes on what's going on with Bitcoin and the rest. the market you guys are it and right now what we have as i kind of mentioned before not that we focus so deeply on day-to-day price but bitcoin trading around 113 000 last time i checked that seems like a really good price uh but apparently we're at that point in the world and then august in the summer where if we haven't made a new all-time high again after doing it a couple weeks ago that that's all over right so uh maybe uh frame this for us i think it's pretty

good for august considering actually how bad august is but uh y'all go maybe take the first shot at what you're looking at well i mean to me it feels very much like groundhog day uh the summer nothing new is happening so we're just sort of uh rehashing the greatest hits right so bitcoin hits the same all-time high it hit before it hits goes down to the same price it was at before meme coins are popping off again and then immediately crashing um and and and we're once again talking about what the fed is about out to do is there about to be a rate cut so it just feels like um august is a bit of dead time where we're sort of just watching clips of what we were doing last month okay yeah i i love that the market

is this bullish at 113 000 like i would have thought out 113,000 everybody be amped up we'd be getting ready to go off into the euphoria stage right but it's like bitcoin's going to zero and we're at 113K. So I think this is a great sign that when we do get it get a move, it's going to be violent to the upside. Yeah, it's it's funny that this is just the classic sort of time-based capitulation that we seem to see every summer even in a bull market where like it's not only just price going down that makes people capitulate. It's price not moving anywhere that drives them absolutely nuts because they haven't been able to find ways, I guess, to make money on any given day or they can't refresh their portfolio and see that. But like I said, just to quickly talk about

it. I mean, this is, you know, Bitcoin slips, as markets raise for Powell's Jackson Hole speech, is the bull pause over. And just a week ago or two weeks ago, we had 100% certainty of a rate cut. Now it's down to 79.2%. I'm old enough to remember when 100% was a guarantee and that didn't change. But hey, when we watch the Fed and the chances of a pivot or a pause or a cut, there's no such thing is 100%. And these tools have, let's be honest, they've been wrong forever. Now we got a 20% chance of a cut for their down. the road. So now it's like two cuts of the year. Why did this even matter to us as Bitcoiners? Like, why? Because it's all everyone's talking about. Well, I can, I can give the case for why I think people think it matter. And I'll then give a short case about why I think it doesn't. So what we're seeing right now in the markets more generally is markets are behaving very, very strangely. The UK financial press has been all about how guilts are trading. in ways which are completely unprecedented. And we're seeing, you know, something where a market is 100% sure there's going to be a rate cut suddenly dropping,

which is extremely, as you've mentioned, unusual. And this weirdness permeates everything. But people are used to a certain type of behavior in the markets and for their own trading. And that is that rate cuts mean easier money. And easier money means all assets. and in particular bitcoin go up and so people are really really hoping right for this rate cut and the ironic thing about the rate cut regime was that it was it's very much an asset class and wall street driven idea because rate cuts usually happen when economic metrics start to deteriorate

And so ironically, when economic metrics start to deteriorate, people become more bullish on asset losses because that pre-sage is a rate cut. So that's basically the idea. People are waiting for a rate cut because they think prices will go up. Here's where I think things have changed. And here's why I think the markets are acting stringent, and here's why I think the rate cut doesn't matter as much anymore. For the last 40 years, we've been in a period.

of monetary dominance, right? The Fed had had their hands on the steering wheel, and the Fed could decide to crash the economy, grow the economy, change the price of the dollar, change price of assets. They basically controlled everything. And that was because they were the primary spigot of money in the economy. That is no longer the case. And the reason that isn't the case is because the U.S. government debt, as well as the government debt of pretty much every single other government out there has become so large that the primary source of new capital into the economy, new currency into the economy, is governments paying huge amounts of interest on very, very large debt. And so actually, ironically, when the Fed cuts, it may be net neutral because it's

true that the Fed will be introducing new capital and easier borrowing into the markets. But at the same time, they'll be reducing the amounts of new currency that the U.S. government and other governments are printing. And so I think part of the reason that we're seeing this slow, steady grind up in Bitcoin and in other assets, rather than hyperbolic, this is not the whole reason, but it's part of the reason is because it doesn't matter if rates go up or down. There's just this slow, continuous grind of new capital in the form of a massive interest payment that the world is paying. on government debt constantly coming in to the market. That's basically the definition of fiscally driven over, you know, driven by monetary policy or the Fed. It's what Lynn Alden has said on every single podcast,

including my own, you know, nothing stops this train because it doesn't, well, Powell's basically neutered. Like the Fed can't do anything to change anything except for maybe short-term rates and none of that's going to matter in the long term. And I think it also might explain some of the reticence that the Fed has around cutting rates because one of the worst things that can happen to the Fed is that they cut rates and nothing happens. And that seems to be very, very likely. It would sort of be an admission of the fact that they have been muted. Yeah. And they already cut a couple of times and they experienced that.

So I think that's why they put a pause in that cutting cycle is because they cut and the two year and the 10 year didn't follow along. And that could expose even bigger problems because right now everybody's sitting on the edge of their seat waiting to see what Powell's going to say like he is the ultimate power source of where rates are going to go. But if the Fed states the federal funds rate, which is the front end of the yield curve down, that doesn't mean the two year and the 10 year have to follow. So for the everyday person, your mortgage rate could go up, even with the interbank lending rate going down. And that highlights an even bigger problem that could cause even more disruption in the marketplace.

And another thing I'll add is nobody thought Bitcoin be above 100,000 with the federal funds rate at 4.25 to 4.5%. And yet here we are. So what's happening? Why is it happening? Because when the interest rate goes up, the interest expense goes up. And as Yago said, they have to distribute that interest into the economy. It gets spent into the economy. But if interest rates go down, I don't really see it as a net neutral, Yago, because there's $7 trillion sitting in money market funds right now. That's what happened in 2022. When they started raising rates, all of that equity came out and into the money market

funds to get the cash flow. If they start lowering rates, it's no longer going to get that cash flow. So it has to go somewhere. It's not going to stay in dollars. It's going to rush back into hard assets like Bitcoin, real estate, stocks, gold and silver. And the faster they lower the rates, the faster that money is going to move. And I think this slow grind up is because we're all anticipating lower rates. We just don't know when it's actually going to happen.

And when it does happen, if you're late to the show, if you haven't been slowly moving in, you're going to get less stocks, less Bitcoin, less real estate, less everything, because the demand on that supply is going to force the price up. And the supply is not going to be able to expand fast enough. But I do think the big thing right now is it's all become so political. And I don't think Powell was that happy about Trump coming to take a visit at his construction site. And I think we're going to see some payback for that.

And Powell would like to see Bitcoin under 100,000 and not being cooperative with the current administration. And who knows how that's going to react. But for Bitcoin, it doesn't matter. Nobody thought we would be above 100K at four and a half. Bitcoin's going to chug along. CJ, you said two things which really caught my attention. One is you made the point that I'm wrong and that there's basically in money market funds and some $7 trillion in capital, which would be released. I think that's a really interesting point.

That is. The other thing that you said, which caught my ear, is that interest rates could go down and the cost of interest on massive forms of credit like mortgages could go up. We just saw that, by the way. When the Fed pivoted last year, they lowered interest rates and mortgage rates went up, and the 10-year went up, and the 30-year went up. What is the mechanism there? Yeah, so the federal fund.

rate is really an anchor rate, right? They state the rate and it's an anchor. How is it an anchor? It creates arbitrage opportunities for the money dealers who can work with the Fed and get repo agreements and arbitrage the difference between the stated rate and the market rate. So if they can take that collateral and buy it at a cheaper price and then collateralize it with the Fed and in repo, they can arbitrage the different between the stated rate and the market rate. And this is what the FMC does. And in that way, they try to control interest rates. But even with that mechanism, which we call yield curve control, whether it's shadow yield curve control or like Japan where it's openly admitted yield curve control, you're manipulating the price of money. And I think what's important here is it's not just important to understand that a centralized entity is manipulating the price of money, but they're also manipulating the data itself.

So when they're manipulating the price of money and then they're saying they're data dependent and they're manipulating the data, we have a big problem. And I think what the market is looking at to understand what's going on isn't accurate. And I think Bitcoin can sense that. Bitcoin can smell that. And that's why it doesn't really matter. Bitcoin is doing what it was designed to do as engineered money. But to your point, yeah, imagine if the Fed lowers rates and mortgage rates go up even higher, then the paradigm breaks down. Yeah, it's going to be interesting to see because nobody expected that when they cut last year.

right and we really have never seen them come back down i mean i guess they went up to five and they came kind of off the highs but still net net they're higher than before the think of what could happen to the real estate market if the fed starts lowering rates and and the two year and the 10 year go up and mortgage rates go up that's the biggest chance of of a housing crash because everybody right now is their house is for sale they can't sell it but interest rates are high and when interest rates go low people will be able to afford my home so if i just hold steady i'll be able to I'll be able to get out of this. If interest rates are stated lower, but the mortgage rate goes higher, people could panic.

And they could start to lower that price in order to liquidate that property, not knowing what's going to really happen with interest rates in the long term. Yeah, it's such an interesting conversation. Good reason to have a Bitcoin back to mortgage, right? Maybe. Absolutely. Especially from the lender. Something like that.

Especially from the lenders. This is what is so powerful about Bitcoin. So when you cross-collateralize Bitcoin, with real estate. If real estate goes down and Bitcoin holds strong, the lender is in a good position. And this too big to fail idea is not about the borrowers. They don't care about us. They don't care about the regular everyday people. We're not too big to fail. They'll let us fail. It's about the institutions. Fannie and Freddie backed the institutions. The institutions sell the mortgages to them. They subsidize the institutions, not the people. So when we look at this

and we say, how can we reduce risk? How can we get sustainably lower interest rates without necessarily stating and forcing the rate down through stated and anchor rates? Integrate Bitcoin, integrate a pristine collateral that reduces risk because the free market price of money isn't just based on the supply of money and demand for loans, but also the counterparty risk. And by integrating Bitcoin, we significantly reduced risk, which allows us to lower the interest rate in a sustainable way.

So, CJ, if I want to buy a house now in the U.S. And I come to you, how would I put my Bitcoin to work for this purpose and how would it impact the interest rates that I'd be likely to pay? Yeah. So if you came to us, you want to buy a $500,000 home, the first thing is you're going to post $500,000 of Bitcoin minimum. And that's a big advantage because with any other lender, you want 50% LTV. You're probably going to pose a million dollars to get $500,000 because there's liquidation risk. But by cross-collateralizing Bitcoin with real estate, we eliminate liquidation risk. So also dependent upon which loyalty level you are, if you're basic on the People's Reserve

platform, your interest rate starts at 10.5%. You could over-collateralize that $500,000 loan by 200%. So you would post $1.5 million of Bitcoin. And we can knock four percentage points off your borrow rate. So with Bitcoin, you could actually borrow at 6.5%, which is prime minus 1%. But at the diamond loyalty level, your starting rate is seven and a half. And to be diamond, you need 10% of your loan value. So if you're borrowing $500,000, you need to own $50,000 of our PRN loyalty token.

That gets you diamond starting at seven and a half. You over collateralize, knock off another four percentage points. You can bar at three and a half percent. That means you have access to the cheapest cost of capital in the world for home buyers. And you're borrowing money cheaper than the government. Why? Because having the printer doesn't make you the risk-free borrower. having the pristine collateral makes you the risk for you borrower and with you guys who are

your lenders right so you you need to be able to to lend um you need to basically be able to borrow in order to lend to others so who's taking on this risk um with you guys yes amazing question yago because and i love how this is an interest rate discussion at people's reserve i don't believe in the traditional yield curve i believe it's a complete farce and our minimum is not to go crawling back to the people who practice fractional reserves and tell them, look, you printing money is causing problems. Can you print me some money? No, we're not going to do that. So what we do is we source LPs who understand what's going on here. And I tell them, look, you have diversification in your investment portfolio. You need diversification in your lending

portfolio, right? We invest to add risk to our portfolio. We lend to mitigate risk. But if you're only lending to the government for risk-free cash flow and you're only lending to the municipalities for tax-free cash flow. What happens if something goes wrong in that system? You need systemic diversification. You should also be lending to Bitcoiners. And why should you be lending to Bitcoiners? Because these people are borrowing in an over-collateralized fashion. This is not proof of promise. This is pristine collateral. And when you do that, you eliminate risk. So something goes wrong with the government, you're going to get paid. They're going to send you money and you're going to get your money, no doubt. Who knows what you're going to be able to buy with it? If something

goes wrong at people's reserve, and there's a default and a foreclosure, you get the two assets you want to accumulate real estate and Bitcoin. So LPs are waking up around the world and saying, you know what? There is a lot of risk within traditional lending markets. I need systemic diversification. And we do our best to source those lenders. And something really exciting for us is that we have a couple partners where we are working to put together what we call a Bitcoin powered finance security. And we're going to package together our contracts for deeds. And It's not a mortgage-backed security because it's not just a mortgage. It's Bitcoin and real estate cross-collateralized.

So when we write the loans and we package them together and then we resell them on the secondary market, we get to recycle the principle. So the key is to find a couple key LPs who understand what's going on, which we have, and then to package those loans together, resell that low-risk, medium reward debt in the secondary marketplace and then redeploy principle to write new loans. And by doing that, we detach. our business from the traditional yield curve. We don't have to go to a lending partner and borrow at seven and a half or eight percent so that someone that comes to us, we have to charge them 10, 12, 15 percent. That's why rates are where they are right now with Bitcoin because the lenders are arbitraging the difference between their borrow rate and the borrow rate they charge their customers. At people's reserve, I do not want to marry the business model to the traditional

yield curve. I want a new free market yield curve of the internet economy to be established. And I want the federal funds rate, the overnight interbanking rate, to be the rate at which people's reserve borrowers from micro strategy. And I want the Bitcoin bond, the two, the five, the 10, the 20, and the Bitcoin powered mortgage, the five, the seven, the 10, the 20 to be the products that establish that people come and look for and understand what is the true free market price of money. And then these two alternative systems, I believe, are going to exist battling each other until incentives went out. Yaga, you just made this the easiest stream ever for me. Just ask CJ questions and he breaks stuff down and it's like learning about it in real time.

Yeah, I mean, it's interesting, right? Like a house is going to be the biggest purchase that you ever make. It's also likely to be the biggest loan that most people will ever take out. And, you know, the experience of people who have Bitcoin is we've got this asset. We don't want to sell it. Selling, you know, you've been holding onto Bitcoin for so long, but you want to buy a house. You want to be able to join, you know, at least have a middle-class lifestyle. You may be worth millions and you don't even have middle-class lifestyle, but you don't want to sell your Bitcoin.

Yeah, but I just want to tell you that CJ literally, like, had a lot of Bitcoin, and instead of selling any, worked at a restaurant as a waiter. There you go. Which is where he met Charlie Shrem on his yacht pulling in, but it's a whole different story. So, yeah, so I think it's a common story. I think there's a huge market out there. You know, and it's something which is personally interesting to me as well. I don't want to own real estate as an investment, which is the way, which is like the old way of thinking of things.

I think of it mostly as an expense. And because it's mostly an expense, I don't want to sell my Bitcoin for it. And so, you know, can I improve my lifestyle while still holding onto my Bitcoin? This is a key question. I think a lot of people are going to be asking now. And we're going to be looking to find solutions for over the, you know, coming months and years. You hit the nail on the head.

thousands of people have reached out to us saying, look, CJ, we don't want to do what you did. We don't want to pay 100 Bitcoin for a single family home. We don't want to pay five Bitcoin, 10 Bitcoin for our home. And then five, 10 years from now, turn around. And we gave up generational wealth for one generation of shelter that's decaying. And that's a bad value proposition. Now, to be clear, I do not regret buying my home. I went from having one kid to four kids in this home.

I've made many great. A hundred Bitcoin. Yeah, no, he did it with 100 Bitcoin. How much did it now? So, yeah. I mean, it's a $10 million house, right? And I'd be lucky to get half a million for it in this market. So it's a rough trade.

Listen, I think everyone see that. Listen, I want to just quickly to move on to some of the other stories because I find that this is actually pretty fascinating where we're at right now. Just as we give an update on the Treasury companies, when we went into June, there were 124 Bitcoin Treasury companies. I don't know if you guys saw this, but now in August, so, you know, 10 weeks later or so, we're looking at now I can't find it because I'm bouncing all over the screens here. But we've got 297, 297 Bitcoin Treasury companies.

I think this is becoming a trend. So I think it's worth what we've started to call Bitcoin Treasury companies are companies which are primarily focused around growing their BTC and sort of monitor their MNF, right? They're the BTC per share as the primary thing that they're monitoring. Most of the companies on this list would not count as Bitcoin treasury companies. And in fact, I think they're in many ways something more interesting. What they are is regular companies that instead of having cash, right, on their balance sheet. Bitcoin balance sheet companies.

Yeah. What's so interesting is this? I didn't mean to interrupt your thought, but it's such an important differentiation. I say it all the time. Treasury company is financially engineering to get more Bitcoin. A balancing company is just a company that's smart enough not to hold cash and to hold it in Bitcoin instead. And that's a much more sustainable, zero leverage, no way to blow up the market way of doing this. Yeah.

And something that's really exciting for people's reserve is we are in the middle. of an M&A talk right now with a NASDAQ company. And I think one of the biggest mistakes that the Bitcoin treasury companies did was they went for accumulation first instead of Bitcoin business first. And we kind of went the opposite way. And by merging with this existing company, it creates a real advantage because I think it's going to be version two of Bitcoin treasury companies, which is a focus not on just Bitcoin accumulation, but also Bitcoin powered finance.

So products and services like the Bitcoin, powered mortgage like the Bitcoin bond, financial engineering, not just for the corporations and institutions like we see with the convertibles and the preferreds, but also financial engineering for the everyday person through the mortgages and cash flow products. And then what happens is when you accumulate Bitcoin on your balance sheet, that's great for NAV, right? Because as Bitcoin appreciates over the long period of time, that pushes value into your balance sheet. But when you have Bitcoin products and services like we do at People's Reserve, we're also creating revenues. So as Bitcoin

pushes value into the NAV, that accrues value to the balance sheet, but that value can't be distributed. The revenues and fees generated within our ecosystem can be distributed. And it's our mission to be the first Bitcoin treasury company that pays dividends because that's what this is really about. You look

at some of the products out there, yield max MSTY, and all these other option strategies that are trading at a premium with massive nav erosion. People want to buy stock. Again, This goes back to the fiat faults of the system, this buyback regime. I think buybacks are an all-time high.

You know why? Because the executives want to get their bonuses and the RIAs want to get their assets on their management up so they can take larger management fees. But what did it mean to own a business back in the East India company? Sometimes you would get bags of salt and sugar. When those boats came in, you would get distributed. You would get dividends, not even in the form of money, but even sometimes in the form of commodities. When you own a business, if that business makes money, you should make money.

And I'm really excited to have a chance to redefine what it means to be a shareholder and to take those revenues and fees generated through our ecosystem and pay substantial dividends in a way where shareholders get the cash flow that they need while maintaining the long term upside of Bitcoin on the balance sheet. I think that's the real value proposition that the investor is looking for. we have our Bitcoin for our long-term hoddle. We don't need a double-double long-term hoddle. Have you met Zach from Meanwhile, CJ, now that we're just having a conversation among friends, but we've only only five minutes. But have either of you met the guys from Meanwhile, Bitcoin-based life insurance? You've got to meet them.

It's incredible. But I think they're the only company in the world that's entire, like everything is in Bitcoin. They settled their taxes in Bitcoin. They're in Bermuda. and literally like their financials are reported in Bitcoin, but yeah, yeah, you guys should, you guys should absolutely all talk because kind of the same thesis with an entirely different but necessary product. A couple of other things I want to talk about here before we, before we finish, I don't

if you guys saw this story, but this one's crazy to me. The banking lobby fights to change genius act. Is it too late? So apparently, you know, there was this big fight over yield bearing stable coins, basically being a part of the Genius Act or whether you'd be able to pass that yield on to your customers. Well, there's some loopholes in there that seems like even though they didn't want it, this might happen. And the banking lobby is now spending millions and freaking out that stable coins are basically going to entirely replace their business.

Because like, why would you have a bank account if you can just hold a stable coin, earn a bit of yield, even if you can't, why would you have bank account? They offer no yield anyways. But earn a yield and do all of your transacting and paying in this, right? I mean, it's pretty wild that you now have the banks. up in arms about something the government did in favor of the crypto industry. You know what it reminds me of? It reminds me of the way Microsoft sort of built their business was they sold DOS to IBM.

And there were two interesting things to what Bill Gates did there. One, he didn't have DOS. He just convinced IBM that they needed us. And then he knew the guy who actually built DOS and went to board it from them after he already got the money from IBM. The second thing is, instead of selling it outright to IBM, he gave them a note. an exclusive license. IBM put DOS on all of their computers, turned it into the standard, and then they could

go and sell it to Dell and sell it to Hewler Packard and basically create all of the competitors to IBM. What the banks did here was this the same level of stupid, right? There was this entirely new industry. They didn't understand. The industry came and lobbied. The banks went and supported the lobbying because they wanted to get into crypto. And now that the laws passed, they're starting to realize, oh, fuck, we just shot ourselves in the foot, lost our business.

Is it too late? Probably yes. And, you know, if my story plays out, then banks are going the way of IBM. I wrote a threat about this a couple of years ago because I was on a panel with Byron Donald's when he sat on the Financial Services Committee. And I asked him on the panel, I said, on the committee, I know you guys are trying to create demand for treasuries. That's your main concern right now. But have you thought about the value proposition if you codify this? Because you're now going to tell the marketplace, as Scott was saying, you can choose between a bank deposit backed by hopefully 10 cents to the dollar.

Or you can have a fully reserved one-to-one stable coin with 24-7 access, no permission needed, opened whenever you need it, whenever you want it, and nobody's going to babysit you like they're your parents. And you're not going to get charged four and five percent to hit the ATM. I said this can cause the bank term funding program version two because what happened when they started raising interest rates, everybody moved out of bank deposits into the money market funds because they wanted the higher rates. And the banks were stuck with their illiquid bonds that they had bought from the ZERP error being forced out the yield curve. And there's nothing they could do. So the Fed had to come out and say, okay, well, you can post that bond and we'll value it at par, not mark to market so that they didn't have to take those losses and they can transfer the corresponding asset with the lie. liability to the money market fund. This is the same thing. You are going to incentivize people and give people an option to move to a better form of deposit. And I always thought Bitcoin was going

to take down fractional reserve banking. I think stable coins are going to take down. They always said a fully reserve can't make money. Yeah, well, look at Tether. Tether is one of the most profitable companies in the world with the least amount of employees. Their profit per employee is astronomical. So the idea that fractional reserve banks is the only way that you can do banking is dying in front of our eyes. And I couldn't be more excited for that. The other thing I don't understand, though, is the opportunity cost. What's happening with stablecoins is if you're a business or if you're a bank, banks hold a lot of treasuries because they put customer deposits into those treasuries. And those treasuries are now the cash equivalent that can be the corresponding asset to back the stable coin liability.

And what you're doing, and this is why BlackRock made moves, is you're taking that four and a half percent that you're earning from the cash equivalent. You're then creating a liability based off that cash equivalent. And then you're taking that liability in the form of a stable coin and you're supplying liquidity in the decentralized internet economy. And you're earning another four and a half to five percent. So you're now compounding your earnings by allowing the asset to create a corresponding liability. And this is an amazing business model. That's why at People's Reserve, we have a stable. coin called PRUSD. And I think the only difference between our stable coin and every other stable

coin is number one, it's US regulated. So it must be backed one to one by only cash and cash equivalence. But number two, when you hold PRUSD, you get participation rewards. You get airdropped Bitcoin for holding PRUSD. And this is where I think this model is heading. This goes back, Scott, I know you know this, what Hal Finney originally said. What Bitcoin will do is it will transform this marketplace into a free banking error. And I think we are moving at that error at full speed. Yeah, I had Mike Tagney on from figure markets yesterday. It was recorded because I wasn't available.

And we talked at length about how stable coins are just effectively narrow banks, which is the one thing that the government has tried to block in favor of fractional reserve begging for all these years. What we saw with Caitlin Mung at Custodia, it's just basically an important, impossible model for anybody to propose because it's just way too rational and safe. for our system for our economy to go. Guys, I wish we could do this for 100 hours, but every Thursday I got to run off to Sirius.

So thank you guys so much, guys. You can follow Yago and CJ write down in the description. I highly encourage it. Can I introduce you two guys? I feel like there's all, like, after I feel like there's a lot of things you should be building together. And actually, I'd love to I don't have Zach's information. I just happen to

interview them, but you guys should talk to him too. But just a lot of things here that sort of echo is really encouraging. just so much being built on Bitcoin, and it really is just so early. So, you know, you come to this title, Bitcoin on the Edge, Fed signals. I mean, it's fun to talk about. I guess it's important to talk about, but when you zoom out and see where we are in the process of adding the full breadth of financial services and really creating a full Bitcoin economy, it's so early and there's just nothing to worry about. There's just nothing to worry about. That's all I got

for you guys today. Thank you so much. We will see you tomorrow. Thank you, everyone. Bye. Thank you very much. Hey, folks, a quick disclaimer. This segment is brought to you by a partner of this channel. Now, imagine front-running Wall Street on the world's fourth largest crypto, a deflationary powerhouse that yields staking rewards and fuels one of the most active blockchains on the planet.

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