Latest / Simply Bitcoin / Morgan Stanley Bullish on El Salvador Despite Bitcoin Crash | EP 538

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Morgan Stanley Bullish on El Salvador Despite Bitcoin Crash | EP 538 · Simply Bitcoin

0:04
Welcome to another episode of Simply Bitcoin recover.
0:08
The Bitcoin, use the catastrophic fails by the
0:10
central, Bankers government, shit coins, the memes, Bitcoin
0:14
culture, and general. We have it all.
0:16
We're a One-Stop shop for the Bitcoin Revolution.
0:19
Today, we have a very special guest, the legendary Stefan.
0:22
Lovera, how you doing stuff on? Hey guys, I'm doing well, thank
0:26
you for inviting me. We're super honored to have you.
0:29
But anyway, As Opti it's time for number time, brought to you
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noddle, Dottie you today at the time of this recording the
0:55
Bitcoin price is at 20 1920 dollars SATs per dollar.
1:00
Are also known as Moscow time 4562 Bitcoin held in corporate
1:05
treasuries 1 million four hundred and ninety.
1:07
One thousand Bitcoins. I went down last week, it was at
1:11
1 million six hundred sixty thousand block height, 746,000
1:15
481, reachable Bitcoin nodes. You want that number to continue
1:18
going up, thirteen thousand, six, hundred and fifteen, the
1:21
amount of Bitcoins. The percentage issued is 90
1:24
point 96% blocks to The Happening.
1:27
Can't get any want that one that day to come?
1:29
Faster, 90 3519, having estimate April, 18 20, 24 blocks subsidy
1:37
around a hundred and thirty seven thousand dollars or 6.25
1:41
Bitcoin. Now that Stefan is here, I'm
1:44
going to pull up a very, very interesting video.
1:47
It's legendary, I want to get Stefan stocks on this.
1:50
This is Agustin Carson. He is the head of the Abyss, the
1:56
bank of international settlements, and Look, he's
2:00
saying the quiet part out loud. So anyways, let's check out this
2:03
video, aren't our analysis on CB da people are for the use of
2:08
your general to the general use. And we tend to establish the
2:12
equivalence with cash and there is a huge difference there.
2:18
For example, in cash, we don't know, for example, who's using a
2:23
100 dollar bill today, we don't know who is using the 1000 peso
2:27
bill today at the key. Difference in with the CDC is
2:32
that the central bank will have absolute control on the rules
2:37
and regulations that will determine the use of that
2:41
expression, of central bank's liability.
2:45
And also we will have the technology to enforce that.
2:49
Those are those two issues are extremely important and that
2:53
makes a huge difference with respect to what Shay to what
2:58
cash is. And our analysis.
3:01
Oh that's absolutely terrifying. I don't want to live in that
3:05
type of future where you know the Hamburglar has absolute
3:09
control of you know but he says it himself and who's we?
3:13
That's a very ominous. We it's like we the Royal way
3:18
this whole idea of all we we're a collective right there coming
3:21
from a very collectivist frame of mind.
3:24
It's the statist way. And of course, many of us in the
3:27
Bitcoin space have been commenting on this literally
3:30
Years. This is not even new.
3:31
They've been saying this for a long time.
3:33
It's been in a bunch of their papers.
3:35
They have been talking about almost with Glee about the
3:39
ability of enforcing negative rates on to us the everyday
3:42
people. And of course, the control,
3:46
they're called Central Bank digital currencies, but they
3:48
were should really be called surveillance coins or control
3:51
coins that. And that's, that's the reality
3:53
of it. And I think, anyone who believes
3:55
in Freedom should be adopting Bitcoin and encouraging, their
3:58
family and friends to adopt the Freedom money Bitcoin.
4:01
Absolutely. It Opti I could have said it
4:04
better than stuff on. Yeah, on answer that.
4:06
Exactly. But I was just going to say,
4:08
I've been saying this for all week and basically since I
4:12
started the show, then once you guys put it in my mind, you
4:16
accepted the idea that if you reframe everything in the
4:19
framing of, are they trying to control me?
4:21
Are they trying to empower me then you know exactly where
4:25
their incentives are? And guys, he said it himself,
4:29
they are trying. You control, you will see bdcs,
4:31
therefore, as the font says you should be buying Freedom money
4:35
guys. Come on.
4:37
Yeah, absolutely Stefan. So we all know this is the last
4:42
attempt. This is the last gasp, cbc's
4:45
wouldn't even be a thing if it wasn't for Bitcoin?
4:50
How far will governments take this?
4:52
How far will they go? We all know that Bitcoins
4:55
incentives are just stronger. This just better if people have
4:58
a choice between In between some surveillance coin, a coin that
5:04
they could debase at their own will or something that can't be
5:08
debased. Something that is censorship
5:10
resistant like Bitcoin, people are just going to always pick
5:12
the freedom option, right? But I think that governments are
5:16
definitely going to use coercion to try to or and propaganda as
5:21
well. To be frank to try to incept
5:23
whole swaths of the population. To try to use these these these
5:28
currencies Central Bank. Digital currencies are also like
5:31
I like to call them shit coins, Central Bank should kill us and
5:35
then if you kind of add the theory from the sovereign
5:38
individual he was making it basically making the argument
5:42
that the people in the future that were still going to suffer.
5:45
Inflation and capital controls are going to be poor people,
5:50
right? Do you believe that's the case
5:52
or do you because Bitcoin really levels the playing field?
5:55
So what are your thoughts on the response from governments trying
5:59
to remain relevant because this is their last attempt at that?
6:02
And do you agree with the sovereign individual that it's
6:05
poor people that are still going to be stuck using government
6:09
money. Let's hope it's available for
6:14
everybody. Let's hope the fruit of money is
6:15
available for everybody, but as you rightly pointed out we
6:19
wouldn't even be talking. People wouldn't even be talking
6:21
about CBD sees. If it weren't for Bitcoin, the
6:24
reality is that money today is already digital.
6:27
If you look at the fraction of money that is made up of cash
6:29
and coins, it's a tiny fraction of money.
6:32
Most money is already dollars on a bank account somewhere, and
6:36
those records should just be treated as they are already
6:38
being reported or given to tax law.
6:41
Artis law, enforcement and cetera, and probably a lot of
6:44
that data. They'll say it's DNA on MM eyes,
6:46
but I'm sure a lot of that data is already being fed to
6:49
financial surveillance units inside central banks around the
6:52
world inside. Treasury Department's around the
6:54
world and two entities like the B is the IMF Etc.
6:58
So yeah, it's But ultimately of course, Bitcoin is available to
7:02
anybody on a smartphone today. That's true.
7:04
Anyone can just spin up a wallet on a phone and take payment and
7:07
so I am hopeful. That more and more people will
7:13
realize the difference between freedom.
7:15
Money and cbc's. Of course, there will be ways.
7:19
They'll have all kinds of ways to try to push people into that
7:21
system. They want to keep you in there
7:23
just like our Facebook wants to keep you inside their system, so
7:26
that you keep clicking and they can serve you ads.
7:29
They may try to integrate CB D C's into everything.
7:32
So, probably look at China as an example, they will probably
7:35
integrate it into the WeChat, and the we pay and all these
7:38
super apps. So, I think that's probably One
7:42
Direction and One angle that they will likely try but it is
7:46
up to those people building and developing a Bitcoin for freedom
7:52
and for anybody to use and not just for the let's say the
7:56
elites of society to use absolutely Stefan it's just a
8:00
winnable fight, right? Because I think you know I
8:04
definitely think that in the long term it is but it's really
8:08
scary and the the, you know, in and it's fascinating how the
8:14
theory from the sovereign individual is playing out right
8:17
that he his his basically, he was saying that in countries
8:20
that you would never have imagined this happening
8:23
including Western democracies that, you know, according to
8:26
them has the rule of law they have break in all broken, all
8:30
those standards. I think we had a sneak peek of
8:33
that in the situation that happened in Canada.
8:39
Do you agree with that? So I think that there will be
8:45
different countries who are very Pro Bitcoin, right obviously
8:48
examples, like El Salvador and things like this where they are
8:50
just Pro like letting people use Bitcoin or whatever wallet they
8:53
want, they're not forcing you to use their one, they'll be able
8:57
to countries that start their own shit coin, unfortunately
8:59
like you know, Central African Republic, there'll be others who
9:02
just say, look, it's anything goes, you can, you know, just
9:06
it's legal, tender, you can choose.
9:08
So I really think We'll see that.
9:10
And look, I think there are interesting examples in places
9:13
like Nigeria or Pakistan after the central bank's.
9:16
There are governments. There made Moves against
9:18
Bitcoin, peer-to-peer markets, just went huge.
9:21
So that's another way that things can go and ultimately
9:26
people can just be at home earning money online, you might
9:30
be a web developer, or a programmer in Nigeria, or you
9:33
might just be a blue collar, worker, who just earned some
9:37
money in Bitcoin or you might just do some odd jobs.
9:39
Jobs on the side, some side, hustle for Bitcoin.
9:42
I think the global decentralized movement of Bitcoin.
9:46
So I mean it's important to understand there's Bitcoin, the
9:50
technology and the users. And then there's this movement
9:52
of people who are organizing Bitcoin meetups or they're
9:56
hosting. Bitcoin shows are trying to do
9:58
Bitcoin educational they're developing and contributing to
10:00
bitcoin code they're building Bitcoin businesses.
10:03
A lot of those people are ideologically aligned with the
10:06
idea let's say, broadly speaking.
10:09
Cypherpunk and libertarian way of thinking, maybe not everybody
10:13
agrees on every little thing, but broadly speaking, they
10:16
believe in this monetary Freedom.
10:17
So I think if you some are all of those people up around the
10:21
world, that's a big enough market for Bitcoin to have a
10:25
base, let's say a base of users toddlers.
10:29
People who are interacting in that system and who will defend
10:33
that system, so you don't. But you don't believe that you
10:37
know, and this is the theory. That's Faites key came up with,
10:41
you know, the excellent article. We Are The Remnant.
10:43
You don't believe that for Bitcoin to work, or for a
10:48
Bitcoin standard to be implemented.
10:50
Not everybody has to adopt it. Is that correct?
10:55
Yes I think at the start it'll be more like Remnant types but I
11:01
think eventually I guess it does depend on where you are what you
11:05
think where you think Bitcoin is going.
11:08
But I think it will eventually hit that point where people are
11:10
basically forced to use Bitcoin because if you just use anything
11:13
else it's just going to your value is going down over time.
11:16
But that's it. Even today.
11:18
There is fair currency. There are legal tender laws
11:20
today. There are many countries that
11:22
mandate that you use their currency.
11:25
Payments or they mandate that you pay taxes in that currency.
11:28
But ultimately, if it's just serving a role as a utility
11:31
coin, well, the answer is simple saving Bitcoin and then only
11:36
transact in the utility coin at the last moment that you need it
11:39
for. We need for that utility
11:41
otherwise you're saving in Bitcoin.
11:43
What does that do? Long-term, it makes it hard for
11:45
government. It's too cheaply fund themselves
11:47
so they will have the right size and I think so.
11:50
I think we're seeing this play out.
11:53
Of course Bitcoin is small today, right?
11:54
Where Where it's tiny today. What is it?
11:57
Like at a can't remember the number but it's something I 450
12:00
billion as a total market today of course I think that we'll
12:03
have to grow. But yeah I don't necessarily
12:05
think it'll be only for the remnant of course.
12:09
I've been talking about the remnant stuff for a while and I
12:11
think that they are the base who most important to sort of
12:14
energized, get them on board but they'll find you ride.
12:18
That was the whole idea of Albert J knock.
12:20
And in that article he was sort of saying they're just out
12:24
there. They will find you.
12:25
You put out that message and they'll find you absolutely
12:28
fascinating. Very good conversation.
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Check out crew. So cloaks.com this was a
12:57
fascinating article by Bloomberg.
12:59
There's a lot of signal in here and who else to talk about it
13:04
about Stefan? Stefan is here today and perhaps
13:07
he could break it down a little bit because at the end of the
13:09
day, opt-in are just plugs. Let's check it out.
13:12
Morgan Stanley says, bye-bye Salvadorian, bonds, battered by
13:18
Bitcoin Bette. Morgan Stanley is ready to scoop
13:21
up batter, bonds from battered bonds from El Salvador, which
13:24
are some of the worst Performing notes this year as the
13:27
president's bet on bitcoin backfires the government's seven
13:31
point seven billion and Euro bonds have been overly punished
13:34
by the markets. Despite El Salvador having
13:36
better metrics than other distress peers, Simon Weaver the
13:40
global head of Emerging Markets Sovereign credit strategy at the
13:43
bank wrote in a note on Tuesday, markets are clearly pricing in a
13:47
high probability of the tarkey as a real word on what's in
13:52
there. Thank you Stefan in which El
13:55
Futur defaults. But there is no restructuring.
13:58
What would happen if El Salvador, default stuff on or
14:02
because I see them getting really close to bitfenix and I
14:06
see them getting really close to bitcoiners with the woods.
14:10
Would that be bad stuff on what's going on there?
14:14
So this is one of those situations where as a
14:18
Libertarian you might be conflicted because in one sense
14:21
you want Bitcoin adoption but in another sense this whole idea is
14:24
around government debt and they are selling government debt.
14:27
And this is a right obviously with the Bitcoin Bond, you're
14:32
helping fund the government. So I think I can understand
14:34
there will be understandably. They'll be very different views
14:37
in the community about whether that should be supported or not.
14:41
Obviously this comment and this article is not talking about the
14:44
Bitcoin, bonds directly talking about their normal like the
14:47
Normie bonds but it's just commenting about how The views
14:52
of the Fiat Market participants, let's say not that bullish on El
14:59
Salvadoran or Salvador and government bonds.
15:02
So where, where does it all wash out?
15:06
Well, I think one aspect that's interesting is to see that El
15:10
Salvador have enabled a lot more tourism because of having
15:13
Bitcoin, I'm, I guess cautiously optimistic that that Trend
15:18
continues and Carries On will say that.
15:21
As to whether people should be buying the Salvador and Bitcoin
15:24
Bond? I don't know.
15:25
I mean, it might be interesting the whole residents play as
15:28
well. This whole idea of hey if you
15:30
you know, by a certain quantity of Bitcoin bond that would you
15:33
want a residence to go and live in El Salvador.
15:35
So you know interesting stuff but I think it is kind of seen
15:39
like a the Fiat world is the participants in the Fiat.
15:43
Normal Bond World sort of making their statement clear about what
15:46
they view the how they view the viability of the Salvadoran.
15:51
And their ability to repay, government bonds.
15:54
Do you think it also might be an ideological issue as well?
15:58
Because we know for example, not only has tourism gone up.
16:02
We know that the GDP growth in 2021 was the largest.
16:06
And I think since like 1960-something not to mention
16:10
that the cap, the the murder murder per 100,000 people is
16:17
reaching historic lows as well. So in that article, kind of
16:20
hinted to it. Right.
16:22
People are, are being overly pessimistic on El Salvador?
16:28
I think there might be right there.
16:29
Yeah, I think you might be, but it's hard for me to say because
16:33
I've been to a Salvador, just one time, I wouldn't say, I'm an
16:35
expert on the country, but definitely, from what it seems
16:37
like, it seems like Kayla has been trying to crack down on the
16:41
gangs and stop the crime, but he also has detractors.
16:44
There are other people saying, oh look, he's shutting down
16:46
journalism things like this, but at the same time, if you look at
16:49
people like Max, Keiser and stay, AC Herbert, you know,
16:52
they're in the country and they're often they're based
16:54
there and they're often talking about how great things are
16:57
there. So who do you?
16:59
Who do you? Who do you believe?
17:00
I'm probably tending towards believing Max and Stacy but who
17:04
really knows? Yeah, exactly.
17:06
So the last part of this article I think is where there's a ton
17:09
of signal and I want to check this out and I think is a great
17:12
conversation to have with Stephane and it says for a
17:18
restructuring to work it nearly always Needs the IMF involved or
17:24
there to be a clear push for reform by the government.
17:27
Given this may not be the set up in a potential restructuring, it
17:32
could easily end up being a protracted negotiation.
17:35
So, if you look at Argentina, right, one of the Staples, one
17:40
of the requirements for the bail out, there was the IMF Force,
17:45
the Argentinian government, 2D incentivize the use of Bitcoin
17:51
and shit coins within its borders even though Argentina I
17:55
think has like something like 60 or 70 percent inflation, and
17:59
another piece of signal there. Guys is, why is it all these the
18:03
IMF? Why do, why is the IMF required?
18:07
What is going on here? And then that kind of explains
18:12
why the IMF is so hostile towards something like Bitcoin,
18:17
because I think it really has to come down to, if I'm f is always
18:22
the bailout of Last Resort and Bitcoin could potentially
18:26
provide another alternative without chains.
18:31
It could explain that thing, but why?
18:34
And all of these Legacy articles, whether it's the
18:37
financial times, whether it's Bloomberg, Every single time and
18:42
then aren't an announcement gets made by El Salvador, using
18:46
Bitcoin or Bitcoin bonds. They always ask the IMF or the
18:51
World Bank for a comment, right? And I think that really shows a
18:56
lot. So Stefan, what are your
18:58
thoughts on that last paragraph? Because it's really revealing,
19:02
if you part the noise and you part the actual and what is,
19:06
Who's involved there, what the imf's role is eccentric cetera.
19:11
This is down two decades of Fiat propagandizing and the Fiat
19:16
system. Encouraging its own players to
19:19
the detriment of other people and entities like the IMF, the
19:24
World Bank, the bis. These are just These intro
19:27
governor in the Supra National level in a government funded
19:32
entities, these are taxpayer funded entities but they're all
19:35
to basically help manage the Fiat shit show.
19:38
If the world would be a lot simpler if people just simply
19:40
please use Bitcoin. But here's the thing in a world
19:42
of fractional Reserve banking. They need a lender of Last
19:45
Resort and in a global World, they need these entities because
19:49
they're taking money in from say that us or other governments.
19:52
Again taxpayer money and they are then giving out as loans.
19:57
Now there's this element of let's say colonialism or
19:59
whatever you want to call it a where they impose things on that
20:02
country and say hey I'll give you a bailout loan but I want X
20:05
y&z done and that's also what that component is getting at in
20:08
that article where they're saying, hey You want out, if you
20:11
want this, IMF, restructure money, you're gonna have to do
20:13
what we say. And so, there's an element of
20:16
control and there's an element of disruption here for the IMF.
20:20
The B is the World Bank because in a Bitcoin world, I think it's
20:24
going to be full Reserve. We're going to not, we're not
20:26
going to have fractional, Reserve, we're not going to have
20:28
a central bank. We're not going to have it.
20:30
A lender of Last Resort, it'll be no bailouts.
20:32
And that's literally in the Genesis block of Bitcoin that,
20:36
you know, Chancellor on the brink of second bailout for
20:38
banks. The prop part of the problem was
20:40
Out as in government, bailouts to be clear.
20:43
So yeah, I think ultimately they their system is predicated on
20:49
this idea of Fiat and central banks and lenders of Last Resort
20:52
and they need to be able to print the money for that to
20:54
work. Otherwise it's just not a
20:57
practical thing in practice. No private entity is just going
21:00
to say oh okay I'll just like give you my client know.
21:05
They're gonna say these are the terms on which you can have debt
21:09
and so I think, in some cases here, it might be a little bit
21:14
of short-term pain for long-term gain for El Salvador.
21:17
So I think they are taking that short term pain, but the
21:20
long-term gain of teaching, people in the country about
21:23
Bitcoin and we have projects, like my first Bitcoin out there,
21:27
trying to teach school kids about Bitcoin, they are going to
21:30
be so much more advanced and in a better position to adapt to
21:35
the reality of Bitcoin being adopted around the world.
21:39
Absolutely. After you want to try me in
21:41
before we move on to the next topic.
21:43
Well, as a proud Bitcoin propagandist, I can recognize
21:47
propaganda very easily. And this is nothing more than
21:49
just a hit piece. Guys.
21:51
Of course, they invoke the IMF at the end.
21:54
It's just a standard Playbook by Bloomberg and thanks for Stefan
21:58
to break it down because this is not my forte.
22:00
So I will pass it back. You guys and that's what makes
22:04
simply Bitcoin. So dangerous, is that where
22:06
plebs with the Bloomberg subscription anyways?
22:08
Moving on to the next topic. Let's check it out.
22:13
This was a press release or a blog post by Paul Guerrero.
22:17
He is the chief legal officer at coinbase and we actually
22:21
reported on this last week, but the implications of this are
22:26
striking. So, anyways, this read some of
22:29
the article and of course we're going to get Stefan's opinion
22:31
and stuff I was going to break it down what the implications of
22:35
the whole security situation are anyways.
22:37
Check it out earlier today following a Department of
22:39
Justice investigation. So former coinbase employees,
22:42
misuse of confidential, coinbase information related to listing
22:46
decisions the Securities and Exchange Commission.
22:48
Separately filed Securities, fraud charges against the
22:51
individual related to this wrongdoing.
22:52
It's funny because when Nancy Pelosi and the FED do it, the
22:56
insider trading, just a slap on the wrist when everybody else
23:00
does it. You're a criminal.
23:02
No, that's the seat alleges that 9 digital assets involved are
23:05
securities the doj reviewed the same facts and chose not to file
23:10
Securities, fraud, charges against those involved.
23:12
A CFT c-- commissioner. Caroline, fam stated, this is a
23:16
striking example of Regulation by enforcement which is weird,
23:22
seven of the nine assets included by the SEC charges are
23:25
listed on coin basis platform, none of those assets are
23:28
securities. Coinbase has a rigorous process
23:30
to analyze and review each. Digital asset before making it
23:33
available on our exchange, a process that the SEC itself has
23:36
reviewed this process includes an analysis of whether the asset
23:40
could be considered to be a security and also considers
23:43
Regulatory Compliance and information security aspects of
23:46
the asset to be explicit. The majority of assets that we
23:49
review are not ultimately listed on coinbase.
23:53
Here is the signal guys. We cooperated with the SEC
23:56
investigation into the wrongdoing, charged by the doj
23:59
today but instead of having a dialogue, Does about the seven
24:03
assets on our platform, the SEC jump directly to litigation the
24:07
SEC charges, put a spotlight on the important problem.
24:10
The US doesn't have a clear or workable regulatory framework
24:14
for digital assets Securities, and instead of crafting tailored
24:18
rules and an inclusion or transparent way.
24:20
The SEC is relying on these types of one-off enforcement
24:24
actions to try to bring all digital assets into its
24:27
jurisdiction. Even those assets that are not
24:30
Securities now, why? Is coinbase going to the defense
24:36
of an employee that clearly was insider trading?
24:40
It's simple because coin basis, whole business model would be
24:45
completely under threat. If a lot of these shit coins
24:49
that we know are securities, were deemed Securities.
24:53
We know aetherium and Michael sailor.
24:55
Had an Incredible video where he went.
24:57
I think it was on altcoin daily and they asked them.
24:59
Hey sailor, do you think the therians is He just broke it
25:03
down the pre-sale. The fact that a theory that
25:06
metallic could just snap his finger change the whole
25:09
algorithm. And I think that this case, puts
25:12
all that under threat, which is why you have the head of legal
25:16
at coinbase. Literally going out and
25:19
defending a scumbag that was caught insider trading,
25:23
literally, buying up tokens before they were listed on the
25:26
exchange so that he could dump them later on.
25:29
Right. So this whole thing is just
25:32
Clown world. But again, I don't think that
25:35
the Cynthia, lummis, crypto bill was going to fix any of that.
25:38
Because in the Cynthia lummis, crypto Bill, she's still
25:40
included etherium as a commodity which it clearly isn't.
25:44
So this is just, I don't even know what to think.
25:49
I don't know how this is going to get resolved, but I don't
25:52
like that. The u.s. government is not going
25:56
through legislation. They're just going directly to
25:58
enforcement and it's law enforcement that's getting to
26:01
decide. What is the security?
26:03
What is lot of security? This whole thing is a disaster
26:07
Stefan. What are your thoughts on this?
26:09
What do you think? The implicit the long-term
26:10
implications of a case like this are I think this was the first
26:15
recorded case of insider trading in the crypto industry.
26:20
Yeah. So if your thoughts first of
26:22
all, first of all some of this stuff was rumored for years
26:25
about coinbase, right? This is like in the industry.
26:29
Everyone is kind of like everyone's sort of heard.
26:32
These rumors like you couldn't have been in this industry for
26:36
very long without hearing these kinds of rumors about all these
26:38
kinds of like dodgy practices ad exchanges offshore or
26:43
potentially even in the u.s. So you know this was coming,
26:46
right? This was coming.
26:47
Secondly, I think important to note from a Libertarian point of
26:51
view because before people kind of accuse us as being like SEC
26:53
cheerleaders, I am a Libertarian.
26:55
I do believe abolish the SEC like first off.
26:58
Yeah, like I believe in abolishing the SEC.
27:00
However, I also I think we can recognize that look these laws
27:05
aren't going away and the SEC is likely to, you know, the
27:09
government is likely to see these as Securities.
27:12
Because, you know, they've said this, if you look at the public
27:15
commentary of people like Gary Gensler, he has, I mean, he
27:19
doesn't go out and explicitly, say it.
27:21
But if you, I think, if you read between the lines, and if you
27:24
read them carefully, it does sound like he is very confident
27:29
to say Bitcoin is a commodity, but he's T much not giving much
27:34
in terms of whether the any other coins are Commodities
27:37
which means they might be Securities.
27:39
And so it's important for people to really think about that.
27:43
And really, you know, and here's the other thing, there's this
27:46
idea of like legally, what is it?
27:48
But you can also just think about it, like a conceptually,
27:50
what are they? And I think in like even if we
27:55
again I'm not a lawyer, but if let's sit, let's set aside.
27:57
The whole legal aspect of it economically and just in general
28:01
like how they Right? A lot of these all coins,
28:03
operate more, like a company. And guess what company is like
28:07
Equity, right? So, you know, you're owning
28:09
shares in a company. So, but here's the thing with
28:13
she coins, you don't get an actual ownership right in the
28:16
company. And that's the, that's the real
28:17
scam, isn't it? So I think it's a time to be
28:21
wary with altcoins. Of course, I work.
28:24
It's one, you know, I'm a big fan of the Bitcoin only
28:26
approach. I think that is the smart way to
28:30
go about these things. I don't claim any special legal
28:34
expertise there so you know what happens in the government?
28:37
Well you know that that's going to happen.
28:42
Give me the story about that guy so we'll stay on top of it.
28:46
I think that the implications of this case are big and that's why
28:51
I said of legal of going basis, trying to get tried to defend a
28:56
criminal basically because I think coin basis whole business
28:59
model is is based on selling shit coins?
29:03
Like that's their whole business model and if a lot of them are
29:07
deemed Securities, they're in trouble.
29:11
Even Ability wise as well, right?
29:15
Anyways Opti, what are your thoughts before we move on to
29:18
the fail? Well, this reminded me of a
29:20
tweet that not grubbles put out, and it was on the lines of no,
29:24
it's not a security. No, it's not pre-made.
29:26
No, there isn't a company that pumps the coin for profit.
29:29
No, it doesn't fail to Howey test, guys.
29:33
The signs are everywhere. Coinbase is wrecked.
29:37
Coinbase has been in the news and they the the retinas of
29:40
coinbase keeps piling up. And it's just not looking good
29:43
for coinbase. That's why they're out here
29:45
trying to do PR because they know they're in deep trouble
29:49
wouldn't want to be on coinbase right now.
29:52
Yep. Exactly.
29:54
It's so messed up that coin basis willing to defend a
29:56
criminal, to try to save their own pots.
29:59
We're at that part of the movie, which is absolutely crazy.
30:03
But anyways, Opti is time for the daily fail brought to you by
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Bitcoin.com. What's up guys?
30:40
I'm here for the fail. And I was going to do this over
30:44
the weekend, but it just happens that we didn't have enough time
30:47
and we got stuff on the barest. So, perfect guest.
30:49
Anyways, let's get into this hide.
30:51
Headlining goes Sri Lankan, president resigns by email after
30:54
fleeing to Singapore this happened, July 14, 20, 20 s.
31:00
And this is, this is just read Oculus anyways.
31:02
Sri Lankan president go to baia rajapaksa, sorry, Optimus can't
31:07
speak has tendered his resignation and a letter sent by
31:10
email to parliamentary speaker. He landed in Singapore after.
31:15
There was awake of anti-government protests and he
31:19
resigned via email. So he pledged to quit over the
31:23
weekend because I know you guys saw the Twitter videos, they
31:27
were having a pool party in his Palace.
31:29
It looked really fun. Anyways, the same day, he
31:33
resigned, he appointed the ex-prime minister as the new
31:38
acting president. So remember this fail that
31:42
Hubbard a while ago. Oh wait, wrong one, this one.
31:46
Sorry. This was by Jack /.
31:47
Sobiech, and remember when we covered this, that the world
31:52
economic Forum had put out an article by the Sri Lankan prime
31:55
minister. That this is how we will fix my
31:59
country and make it rich by 2025 and the fail that we covered.
32:03
Is they deleted it, they deleted the Tweet or the article.
32:07
And so I went in looked at the article and as you can see, Sri,
32:12
Lankan prime minister. This guy, Right now, WIC Rim
32:15
mingxing. As you can see, is dated, August
32:19
29th. And here's the first first
32:22
paragraph and I'm reading this for a reason.
32:24
This is an important moment in Sri Lanka is development as the
32:26
country continues to deliver on its plan for economic
32:30
development and stands on the cusp of a transition to a
32:33
knowledge-based economy since the country.
32:35
And his people saw a vibrant transition, its political
32:37
landscape in January, 2015, Sri Lanka, has put into place many
32:42
of the building blocks needed to reinvigorate, It's social
32:45
economic and political architecture.
32:48
Well, this is on the Wayback machine.
32:50
So I went in to dive a little deeper to make sure what was
32:54
going on on the we Forum. So here's the Tweet with the
32:57
original link dated September 3rd, 2018, and the link works
33:02
again guys. So they put the article back up
33:05
on the website. Same date, August 29, 2018, Sri
33:10
Lanka, prime minister. This is how I make my country
33:12
Rich by 2025. What is interesting is that they
33:17
updated it without adding an update to the article.
33:21
So they just kind of tried to sneak this by.
33:24
And it says right now is the current acting president of Sri
33:27
Lanka. He assumed the position after
33:29
his predecessor, fled the country amid protests over the
33:32
country's economic crisis. And as you can tell, he was the
33:36
Prime Minister. Now, I am just a lowly pleb, and
33:40
when I read this, it was early and I was just like, wait, what
33:43
is going on? I found another lowly pleb stack
33:47
and he covered this and he wrote a PostScript, just to make sure
33:50
I wasn't losing my mind. I know you plebs out there.
33:52
Falling, discern story. And I'm just like, yo, what is
33:55
going on right now? Anyways, as you can see, they re
34:00
added the article a few days. After you got the news that they
34:06
had deleted, the article, so correlation is not causation but
34:10
a day or two after attention was drawn to the unfortunate irony
34:13
of the 28th. Teen article in light of the
34:15
current situation in Sri Lanka, it disappeared.
34:19
And then a day or two after attention was drawn to the
34:21
unfortunate. Disappearance of the 2018
34:23
article it reappeared. So, again, I almost lost my mind
34:29
and I had to make sure that these dates were right?
34:32
And of course, say what you want about Wikipedia, but they try to
34:35
keep you up to date at least. So here he is right now.
34:39
Rickman sing a hold on a second. How do you, how do you actually
34:43
pronounce that? Ronelle wickramasinghe gonna let
34:47
Thank you Grandma. Sing that is that okay
34:49
appreciate apologies guys apologies so I had to make sure
34:54
he did become the president. July 21st 2022, amazing.
35:00
So they backdated it and didn't say anything about it.
35:04
And as you can see, from the we've Forum, he is a world
35:07
economic Forum member. So as you saw in the beginning
35:11
guys, new president of Sri Lanka is a member of the weave.
35:14
What a coincident, new boss, same as the old boss, amazing.
35:20
Anyways, it just so happens that the day that we covered this, we
35:25
got stuff on lovera and it reminded me of one of your
35:28
tweets. I was born in Sri Lanka and
35:30
though, I'm now an Australian citizen.
35:32
I'm very disappointed in the total incompetence of the Sri
35:35
Lankan government. They have basically run the
35:37
country into the ground with a combo of incompetence and
35:41
Corruption guys. So New boss.
35:44
Same as the old boss, they ran the economy to death via very
35:49
bad, ESG, policies, and Corruption.
35:52
And now they are a collapsed economy and they just put in a
35:56
new weaf. Global leader to control the
35:59
country. Guys, this is the type of people
36:02
we are dealing with. This is the type of propaganda,
36:04
we are dealing with and we already know what's going on and
36:08
what the true story is but I'm just a lowly pleb from the
36:12
United. It's so I don't have much Intel
36:16
on what is actually going on on that side of the world but I can
36:19
tell you what is going on on the front of propaganda.
36:22
The Weave is pushing hard that they aren't making mistakes and
36:27
they are backdating articles to make it look like they are
36:30
actually winning guys. This is a complete fail and it's
36:33
actually atrocious like the journalistic Integrity of them.
36:37
It it's a slap in the face. Anyways Nico, what's your
36:41
thoughts? Yeah.
36:42
Matt great. So great.
36:43
Eat like, just like going back finding out that they're
36:45
changing stuff. The infamous article by, you
36:48
know, the weft, the, you know, you own nothing and be happy
36:51
that was literally scrubbed off the face of the internet but
36:54
they don't know. You can't scrub anything off the
36:56
face of the internet. Always lives on.
36:58
There you go, there they're doing it again.
37:00
Stefan is this a case of central planning doing what central
37:05
planning always does, and absolutely failing because
37:08
that's what it always does. Is it true?
37:11
Because I did see a lot of Murmurs being pushed by, you
37:15
know, conservative media, and the conservative accounts about
37:18
how oh, this is ESG, the cause of, you know, the collapse of
37:22
the Sri Lankan government, what happened, what what actually
37:25
happened? What's going on?
37:27
So yeah, so I was born in Sri Lanka, but I was raised in
37:30
Australia but obviously I have family and stuff back in Sri
37:33
Lanka and so the history of the country, right there was a big
37:39
Civil War. So this is like a civil war
37:40
between the Tamil component of the population and the Us in
37:43
sinhalese population and so the Wicker.
37:47
Mm, so is the go-to buyer family.
37:49
They were like a ruling family and so they had, you know, one
37:53
brother was the president and other brother was the Prime
37:55
Minister. Another brother was like the
37:57
Finance Minister like the son of this other one was some other
38:00
minister and things like this so they at the time were popular
38:04
for stopping or I guess militarily winning the temp, the
38:08
Civil War and the history. The context he is that Sri Lanka
38:12
obviously was For country. And during that time from, let's
38:16
say the 2010s, it was a big rise in tourism in Sri Lanka.
38:20
So it was really quite unquote booming but at the same time
38:24
there's a lot of corruption and there was a lot of just
38:28
beggar-thy-neighbor sort of taking all this debt from China
38:32
and things like this for the belt and Road Project.
38:34
They were taking all this debt and they were spending it in
38:37
very Reckless ways. Add a very big government
38:39
relative to the size of the GDP and there was pending on all
38:43
these crazy things like a stadium or an airport or a park
38:47
here. And you know, these different
38:48
projects that ended up being like a vanity project.
38:52
And so that's part of the corruption and then you would
38:54
hear about corruption as well. In terms of who got the contract
38:57
for things, right? So they so for example, these
38:59
super expensive roads and things like this, where let's say, the
39:03
person connected with someone connected to the government, and
39:06
they were the one getting the contract, right?
39:07
So, this is the kind of thing that was going on.
39:10
Now, in terms of the recent, you know, What went on.
39:14
So it was a combination of things.
39:15
Right there was a big bomb blast that killed of the stopped, a
39:19
lot of the tourism and I believe that was in 2018 or 2019.
39:23
And then on top of that, there was this all ESG nonsense with
39:26
stopping the fertilizer. And yes, they did.
39:29
Try to walk it back later, but the damage was already done.
39:31
And this is a country where rice is the main thing.
39:34
People eat, like it's a staple. It's an Asian country for
39:37
obvious reasons, rice is a big staple and through lucky used to
39:40
export rice. And then because of all this
39:42
craziness, They were now importing rice, add to that, the
39:46
crazy lockdowns of because of Hysteria, 19.
39:49
They were doing lockdowns and stopping all the tourists
39:53
basically and so that was their way of getting foreign currency
39:57
USD that they then use to pay all these loans.
40:00
So it was just like, hit after hit after hit, you know, double
40:03
whammy, triple whammy after losing the tourism after doing,
40:07
like committing economic suicide with these crazy ESG work
40:12
policies. It just added insult to injury
40:16
rather. It was just like worse, and
40:18
worse, and worse and then basically the country got to
40:20
this point and that's where why there was this big protest and
40:24
now the who was previously, the Prime Minister ranil
40:27
wickremesinghe her is now in the president role and he's going to
40:31
serve out the rest of go to buyers.
40:35
Go to buy a rajapaksa is term until they have a new vote at
40:39
that point for the nation. The problem is the country is
40:42
just in such a Big level of debt that, you know, they just can't
40:45
afford things, so they're trying to now, they're trying to get
40:47
things going again, they've got fuel shipments coming in, but
40:49
for a long time, there were these massive lines for fuel.
40:52
This is why the ESG people are doing.
40:53
They're trying to devolve the country in a way.
40:55
They like there are people who are going around on bikes, but
40:58
as in push bikes because they can't feel up there took talk so
41:01
they can't, you know, they can't do a business, so it's no way to
41:04
run an economy. Of course, part of that is just,
41:07
you know, people have socialist beliefs like it.
41:09
Like, if you read the name, it's literally the Democratic
41:11
Socialist Republic of sir. So that's unfortunate in that
41:16
way. But you know, of course, I mean,
41:17
there were three there were businesses and stuff like that
41:20
and I'm, I guess conflicted, right?
41:23
Because obviously, I was born there.
41:24
I've got family there, I'm hoping they can recover but, you
41:26
know, it's not looking too. Great will see.
41:31
So important question because this is a Bitcoin show after
41:35
all, and you were describing a lot of problems that I believe.
41:39
Can Bitcoin fix this stuff on well.
41:43
Course. So, I think for anyone who does
41:45
use it, of course, you know, if you can say, for the long term,
41:49
then yes. Now, as I speak to family and
41:52
stuff in the country, but for many of them, if they're
41:55
operating that close to this subsistence line, they don't
41:59
have a lot of that they can save, but that's it.
42:01
There are people using Bitcoin to save and I think it's one of
42:04
those things where people might not necessarily be that open
42:06
about it, so they might be people who are just saving
42:09
quietly and they're using peer-to-peer platforms to buy.
42:13
And the coin. So it does exist, there are
42:16
people using it, but I think it's just one of those things
42:18
where they there and rightly so their priorities are more on
42:23
things like making sure they can put food on the table and things
42:28
like this and that's that's part of the reality of developing
42:31
countries is that people just are poor.
42:33
Are that said there are, you know, people who definitely can
42:36
benefit from using Bitcoin transacting with Bitcoin.
42:39
So you know, I'm hopeful to see more Bitcoin adoption.
42:43
As I am around the world. Absolutely.
42:45
So it doesn't fix it 100%. But for those that choose to go
42:50
on a Bitcoin standard, those better said they can afford to,
42:54
it will help. And that's good news, right?
42:56
So, at least it makes the world a better place.
42:58
But anyways, Opti it's time for daily meme review, brought to
43:02
you by Studio 21. It's the best.
43:03
Bitcoin cultural scene is stories articles Comics.
43:06
By actual bitcoiners is the artwork for Valen 11.
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This is artwork for volume 10 and this is the artwork for
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volume to. There's only Physical copies
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made per volume. Get your prints of Citadel 21
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today before they run out. All right, guys, I'm here for
43:19
the meme review. And of course I'm going to start
43:23
this one by our boy Gigi just because I absolutely love this
43:27
Meme and it crack me up and GG. Goes knock knock.
43:31
Open up its Jesus better not be trading shit coins in there,
43:36
okay. All right, next one, this one's
43:40
by at Bitcoin Kook. I love this one.
43:43
You guys know me. I surf, I love the ocean.
43:46
So he goes true for me. At least the world is a mess.
43:49
I will commit to the immediate pleasure.
43:51
Surfing provides only and it's an MPC with the mask and he's
43:55
crying behind the happy mask and then it's the Chad.
43:58
Yes. And he goes hashtag.
43:59
I am building with laser eyes. Let go next.
44:04
My boy europium, he's been killing it and it goes, it's a
44:07
feature and it's the bell curve. This one, we all know what this
44:10
meme is, but left side of the bell curve, ngu the midwich
44:15
bitcoiners are so rude and then the right side of the bell,
44:18
curve, its scarcity, and decentralization.
44:21
Ation are unmatch. Toxicity is a feature.
44:25
Not a bug deny are on the left side.
44:27
Stefan's on the right now, man. I'm on the left side as well.
44:34
Okay, guys, sometimes memes aren't just pictures.
44:38
Sometimes memes are words and I saw this one and I think this is
44:43
a perfect mean, by Giacomo love Giacomo and he goes Bitcoin,
44:47
doesn't need Mass. Adoption the masses.
44:49
Need Bitcoin adoption. We believe this fullilove that
44:53
Meme. Here we go.
44:55
Another one, shout out to love is Bitcoin.
44:57
And this meme Is people driving in the car spouses, their dating
45:02
or wife and husband and the husband driving goes, Bitcoin is
45:06
50k again and the wife goes, why don't you sell some this time?
45:10
And he kicks her out of the car and it's deleting our do
45:13
DiCaprio laughing. Okay again guys, you know,
45:19
sometimes memes aren't just funny.
45:21
Sometimes memes paint a picture that tell you a story of a
45:25
thousand words. So shout out to be TC Reserve
45:28
because they put this meme out and this is one of those memes
45:31
that the shit Corners out there need to see but they don't see
45:34
enough. So the quote, unquote,
45:36
decentralization is a spectrum Mantra distract from the only
45:40
question that counts is a network decentralized beyond the
45:43
point where a coordinated attack by one or more nation states,
45:46
could kill it. That's why we Bitcoin.
45:49
And, as you can see, there's a spectrum here from 0%
45:52
decentralization to 100% decentralization and I'll coins
45:56
are on the Spectrum under 100 percent, where governments can
46:00
kill it, except for Bitcoin, the one true coin orange coin good
46:05
because it is fully decentralized and governments
46:08
can't kill it. And we've seen this happen
46:10
because we already know the bounty on bitcoin the price of
46:14
Bitcoin. The market cap of Bitcoin is the
46:18
treasure if you can crack Bitcoin and hack it but hey They
46:21
haven't been able to do it in 13 years and I don't think they
46:24
can. So shout out to you guys.
46:27
Awesome memes and let me figure out what my score is.
46:32
I just dropped it. I got this half-used Fork that I
46:36
that I used to eat my breakfast really quick before I got on the
46:40
show. Anyways Nico, I'm Stefan.
46:43
What is your name really score? I got a I got a called got here.
46:48
Yeah I got my called Cod, that's a great, that's great.
46:51
Or never go wrong. I already gave it a simply
46:54
Bitcoin sticker, but I'm going to give it to Simply Bitcoin
46:57
stickers and one is upside down. Whoa.
47:01
Anyways guys want to know if you agree with this scores, you just
47:03
agree. Let us know down in the comment
47:04
section. Comma.
47:05
Comma, comma comma, make sure to subscribe to us an alternative
47:09
video platforms because we do talk shit about the world
47:11
economic Forum like Rumble.com. Our personal favorite Bitcoin
47:15
tv.com, make sure to join our awesome telegram group, you
47:19
could link us some memes to review on the telegram.
47:21
Oops, we could like, you could review the memes.
47:24
It's awesome. And make sure to tune in to make
47:26
sure to stay until after the show, because Jacob from Swan
47:31
and Opti are doing a live Q&A. Hang out, it's going to be
47:34
awesome. But anyways, Opti there's a
47:36
website by please. Why don't you show everybody
47:38
website by plead? Brought to you by Cipher safe,
47:42
guys, don't store your seed on paper paper.
47:47
Will burn. Paper will get wet.
47:49
A dog will eat your paper. It's gonna suck.
47:51
What you want to do, is you want to store your Bitcoin seed on
47:55
metal? Yeah.
47:56
That's right. Metal is well, not all metal but
47:59
Cipher safe metal. Like the Cipher wheel.
48:02
Like the cipher greed is fireproof waterproof pet proof
48:06
tamper-evident. It's badass.
48:08
Don't be that guy. That lost their seat and paper.
48:11
What if you have a boating accident, you lose your seed.
48:14
Their walls in the water paper sucks, but if it's a metal at
48:16
least you could go dive in diving in for it.
48:18
Anyways guys. Check out Cipher safe.
48:21
That I Today. All right, everybody.
48:22
The website by plebe is border walls.com.
48:26
Now users can make their own entropy entropy Paco, random
48:32
secured randomize grid of all bib 39.
48:35
Compliant seed words and then apply a memorable pattern which
48:40
only they know to create a wallet.
48:42
So it's an easy way to to memorize a seed phrase but by by
48:48
visualization rather than trying to memorize 24, which we still
48:53
don't recommend that. But again, if you're in a tricky
48:56
subject, especially if you're a refugee, you're trying to flee,
48:59
the country. You know, you're going to pass
49:00
through a hostile Customs officer, whatever.
49:03
Hey man, I think this is a good way, right?
49:06
The end of the day Bitcoin is a tool, but you got to use the
49:09
tool at the end of the day. Anyways, make sure to subscribe
49:13
to our audio platforms like anchor.
49:16
Like apple podcasts, like, Fountain.
49:19
All of that good stuff also. So, make sure to check out
49:23
Simply Bitcoins blog www.simpleandsensational.com
49:28
news and of course, check out our awesome clothing sponsor
49:32
represent LTD.com Opti and I wear the hoodies every single
49:38
day. Opt he's wearing the T-shirt
49:39
today. I'm wearing the hoodie he's
49:41
coming out with simply Bitcoin merge Bitcoin merch.
49:44
Definitely want to check it out and also very special shout-out
49:49
to the legendary Bitcoin podcaster.
49:51
Stefan lovera you can go give them a follow at Stefan.
49:55
Lovera and of course, we will put a link down to his podcast
49:59
down in the link in the description of the video.
50:01
Anyways guys, that was our show. If you enjoyed the show you what
50:03
to do. Smacked, of course you want to
50:06
continue here in the Bitcoin, use from The Plea plead
50:07
perspective. And the catastrophic fails of
50:09
the central Bankers government shit pointers, all of it.
50:13
The memes Bitcoin culture of it. Make sure to subscribe to Simply
50:16
Bitcoins will see you tomorrow guys for any episode opt out of
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control money and Save. No money.