Latest / Simply Bitcoin / BITCOIN CRASHED TO $78K: This Is When You Buy The Dip!! | EP 1199

Transcript

BITCOIN CRASHED TO $78K: This Is When You Buy The Dip!! | EP 1199 · Simply Bitcoin

0:00
Yo, Bitcoin just crashed to its lowest level in five months.
0:04
Despite the historic announcement that happened on
0:08
Friday regarding the strategic Bitcoin reserve, many people are
0:12
wondering what the F is going on.
0:15
Is Bitcoin headed back to 60K purgatory level?
0:19
Could we hit the infamous 58K gang?
0:22
Is 58 K gang back? Or is this another great
0:25
asymmetric buying opportunity in Bitcoin's history?
0:30
The world's largest superpower, the United States of America,
0:33
has just endorsed Bitcoin, and yet the market seems unsatisfied
0:39
with this game changing economic bombshell.
0:42
Did the Bitcoin whales use this announcement as a way to unload
0:46
their Bitcoin bags? Or does this dump have more to
0:50
do with the general global economic uncertainty due to the
0:54
recent election of Donald J Trump?
0:57
Today we're going to be giving you a full breakdown of the the
1:00
significance of this Bitcoin announcement.
1:02
Try to uncover why Bitcoin is dumping and explain to you why
1:07
you should always buy the effing dip.
1:10
All right, everybody, no more delay.
1:11
I want to bring up my legendary Co host who's always optimistic
1:15
optimist fields in the Co host chair and of course our very
1:18
special guest for today. We got Adam Reeds in the house,
1:23
CEO of legend. All right ladies and gentlemen,
1:25
let's jump straight into today's news.
1:28
We got so much to unpack back. And you know what's the very
1:32
famous saying, you know, buy when there's blood on the
1:36
streets. So anyways, there was a very,
1:38
very historic meeting that happened in the White House.
1:41
Let me just show this post first.
1:44
This is real life. This is not a, you know, this is
1:47
not a, this is not a, this is not a Photoshop.
1:51
This actually happened. This is a real post.
1:55
The White House said America will be the Bitcoin superpower
1:59
of the world. The golden age has begun and
2:03
it's a screenshot, of course, the establishment of the
2:06
strategic Bitcoin reserve and United States digital asset
2:10
stockpile. And extremely fitting if you've
2:13
been in Bitcoin for a while. It's maximum paying every single
2:16
time. The Monday after this reserve we
2:19
dumped from like 90K to 7879 K, which is absolutely hilarious,
2:26
but I think a lot of people are a little bit distracted.
2:29
Here's Adam back mentioned in the white paper.
2:32
He says I quote people are under evaluating the US strategic
2:36
Bitcoin reserve announcement. It is huge for moving the
2:39
Overton window. The actual U.S. government is
2:42
promoting Bitcoin. Here is Ryan Rasmussen.
2:47
He says the quote the end game was never the US government buys
2:51
all the world's Bitcoin. AUS strategic reserve means
2:54
other countries will buy. Wealth managers have no excuse.
2:58
Financial institutions have no excuse.
3:00
Pension slash endowments have no excuse.
3:02
Fear of the US selling is gone. the US will likely buy more.
3:06
Likelihood of states buying just went up.
3:09
Probability the government outlaws Bitcoin is definitely 0.
3:14
This changes everything. Zoom out.
3:17
I think he's absolutely right when he says that.
3:21
And here is just what we have a clip of for you guys from the
3:26
summit itself. Let's check it out.
3:29
Our ending Operation Choke .2 point O
3:42
you know, some people really suffered.
3:44
It was ridiculous what they were doing, but in the end they came
3:49
around, but they came around for the wrong reasons.
3:51
They came around only because they wanted votes and they saw
3:55
that 10s of millions of people are, you know, were against them
3:59
because of what they were doing. I also want to express my strong
4:03
support for the efforts of lawmakers in Congress as their
4:05
work on bills to provide regulatory certainty for dollar
4:09
backed stable coins and the digital assets market.
4:14
They're working very hard on that.
4:15
This is a tremendous opportunity for economic growth and
4:18
innovation in our financial sector and we'll really go a
4:24
long way. I think it's going to be a
4:25
tremendous, a tremendous. We feel like pioneers in a way.
4:32
Absolutely historic moment, the end of Operation Choke Point
4:35
2.0. If you guys were around last
4:37
year, if you're a Bitcoin entrepreneur, if you're a
4:39
Bitcoin business in the United States, it was quite scary.
4:42
You know, the previous administration was not exactly
4:46
very friendly towards the industry.
4:48
They attacked the industry. You can make a, a very, you
4:51
know, good argument about that. Essentially the Trump
4:53
administration saying, look, that's all over, that's all
4:56
done. Also breaking news as well
4:58
quote, the Treasury and Commerce departments will also explore
5:03
new pathways to accumulate additional Bitcoin holdings.
5:07
For the reserve provided, it's done at no cost to the taxpayer.
5:12
My, my administration is working to end the federal bureaucracies
5:16
war on crypto, which was really going on pretty wildly during
5:19
Biden until the election came out and with who's in charge of
5:24
that. By the way, this like this
5:26
budget neutral acquisition of, of Bitcoin is a commerce
5:31
secretary. Commerce Secretary Howard
5:33
Lepnick was just quoted on Anthony Pompliano's podcast
5:36
basically saying he owns 10s of $1,000,000 worth of Bitcoin.
5:40
He actually owns, he he actually plans to own hundreds of
5:43
millions of dollars worth of Bitcoin.
5:45
And again, no one is better than their incentives, right?
5:47
So very positive news overall. And when in doubt, it's
5:52
important to zoom out and just remind, just remind everybody
5:56
that we've been here before. We've been here many times
5:58
throughout Bitcoin's history. This was the 2017 bull market.
6:03
We have, we had multiple 38 percent, 33 percent, 36 percent,
6:08
29% draw downs. And in hindsight, they were all
6:12
tremendous buying opportunities. Here is the stock heatmap.
6:18
It's only the the bloodbath isn't just happening within, you
6:22
know, our industry. It seems like it's happening in,
6:25
you know, in the stock market as well.
6:26
And it's affecting some of the largest companies.
6:28
I mean, Tesla, I think is down 50% since the inauguration day.
6:34
Apple's down, Nvidia's down, Google's down, Meta's down,
6:38
Amazon is down. So, I mean, the stock market has
6:41
been suffering. But I mean, this is actually
6:43
something that Treasury Secretary was talking about, I
6:48
believe Treasury Secretary Bessett was talking about.
6:52
And essentially he's saying, like, look, there was some
6:55
madness that was happening during the previous
6:57
administration. We have to cool that down.
6:58
There's going to be some some pain in the short term.
7:02
I think Trump hinted to it hinted to that as well.
7:05
He had a interview on Fox, Fox News on Sunday.
7:09
And what I will say is what my personal perception of why the
7:14
Trump administration is doing this and why they're, you know,
7:17
talking about the tariffs and that of course, the uncertainty
7:20
Spooks the markets. You know, the markets crash
7:23
because of it. I think, and maybe I'm
7:26
speculating here, maybe I'm going out on a limb, but I think
7:30
Trump is essentially trying to get Powell to lower rates.
7:35
I think that's, I think it really comes down to that Powell
7:38
doesn't have a choice but to keep rates at where they are
7:41
right now because inflation is running hot at 3%.
7:44
But if the market crashes, you know, they're not going to have
7:47
a choice but to go money printer, go Burr, right?
7:50
So I think this is what's happening.
7:53
It wouldn't surprise me at all. I think for Trump to really
7:56
fulfill his agenda for, you know, America to really go into
8:00
the golden age, money printer has to go Burr again.
8:03
And the Fed won't do it. the Fed won't lower interest rates.
8:06
We're still in a QT environment. And again, in AQT environment,
8:10
risk assets don't necessarily perform all that great.
8:14
So I really think Trump's trying to strong arm the Fed into
8:18
lowering rates and turning on the money printer.
8:21
But yeah, I mean, this is not going to lie, like, compared to
8:25
all the previous cycles, you know, I think Bitcoin has
8:28
definitely underperformed a lot. What a lot of people were
8:30
expecting. A lot of people were thinking,
8:32
you know, we'd be at 100, 30-40 K by now, but essentially.
8:36
Q1 is almost. Over, we're back at 79 K Adam,
8:41
what are your thoughts on this? Man?
8:43
We had a historic, I mean historic announcement.
8:46
We're me and Opti were feeling euphoria on Friday.
8:50
That post from the White House basically saying, listen, the
8:53
United States is going to be the Bitcoin capital of the world,
8:56
not Bitcoin and altcoins, Bitcoin capital of the world.
8:59
What's going what's going on? Adam, could you could you make
9:01
sense of this? Like why why Why is the price
9:04
dumping instead of pumping? Look, I think let's go back to
9:07
the actual announcements and think about what was said.
9:10
I think at the early of the week there was a lot of confusion in
9:12
the market. You know, Trump tweeted, putting
9:14
Bitcoin in the same bucket as a whole bunch of other alts, other
9:18
shit coins. And, you know, the market was
9:20
confused. I think all of us Bitcoiners
9:22
were, you know, what's going on? What happened to the promise,
9:24
you know, Trump made at last year's Bitcoin conference?
9:27
And then we got a lot of clarity on Friday.
9:30
So that was super positive for the space.
9:32
We saw him put Bitcoin as a strategic asset and put the
9:36
others in a, in a digital asset reserve.
9:37
That's TBD, frankly. So we'll see whether, you know,
9:40
there's there's any favoritism on other odds.
9:42
But for the time being, we've got Bitcoin in a, in a
9:45
completely different asset class, which is what it should
9:47
be. And I think all bitcoiners were
9:49
happy with that outcome. The other thing that the news
9:52
snuck in on Friday back to Operation Choke Point 2.0 is the
9:56
Office of the Comptroller, which is the entity that controls and
9:59
regulates the major banks in the US.
10:02
They stuck out an announcement quietly on Friday afternoon that
10:05
really clarified that U.S. banks can hold Bitcoin without without
10:09
challenges. And they removed some red tape
10:12
that required them to come up with separate policies and
10:15
regulation specific for digital assets.
10:17
So they basically said, don't worry, you can touch Bitcoin,
10:19
it's OK now and obviously in a lot more legalese than that, but
10:23
that was that was really powerful as well.
10:25
So I think we'll see some interesting things coming out as
10:28
banks get permission to hold the asset again.
10:31
So overall really positive weak. As for the price, who knows this
10:34
what Bitcoin does. I think you know, we'll keep a
10:36
long term view the right policies in place now.
10:39
So it's only up from here. Yeah, absolutely.
10:42
I, I, I agree with you. It's it's only up for here.
10:44
A lot of people. I I saw some speculation from
10:48
just social media and just people talking in general and
10:50
saying, you know, we hit the top.
10:52
It's, it's, you know, the, the cycle's over to left translated
10:56
cycle. You know what?
10:58
What are your what are your takes on that, Adam?
11:02
You know, it's as far as we hit the top.
11:05
You know, I don't think so. I think, look, this, this not
11:09
only paved the way for US to hold Bitcoin, but you know,
11:12
every country is going to follow.
11:13
And now we're now we're in a FOMO zone where others are going
11:16
to say, hey, US can lead. What I tell any chance I get the
11:19
chance to speak to government, I say this is the opportunity to
11:22
be the Swiss banking like it was many years ago, where the entire
11:25
world wants to hold their assets in another place.
11:28
And if the US does this, there's a reason why, you know, if
11:31
you're a Latin American or frankly, many other a resident
11:34
of the country in the world, there's a reason why you put
11:36
your money in a in AUS bank because you feel great about it.
11:39
And the rate regulations there to ensure you feel safe doing
11:42
that. And they can do the exact same
11:43
thing with digital assets, right?
11:45
You know, many, many families are going to start to own this
11:47
asset. Some will will self custody and
11:50
many's won't be comfortable learning how to do that.
11:52
I think they should, of course, but you know that that's a piece
11:54
up the learning curve and they're going to want to custody
11:57
in somewhere and I think they're going to say, hey, where can I
11:59
put it? Let's put it in, you know,
12:01
entities like Fidelity, other places that I'm comfortable in
12:03
the traditional space, let's put my Bitcoin there.
12:06
And so other countries are going to want that because the best
12:08
way to make money is to be able to charge fees on assets that
12:13
are not non residents, right? So that's the that's an amazing
12:16
way for the US to bring more activity into their economy by
12:20
attracting non-us resident assets back onto their own soil.
12:24
So I think they're waking up to that and it's going to be an
12:26
arms race. Other countries have to catch
12:28
up. They're going to lose their own
12:29
country's assets to the US. Absolutely 100%.
12:33
I mean it's the game theory playing out right in real time
12:36
and that presents an amazing buying opportunity, right?
12:39
You get a 33% discount the. Fact that Bitcoin is down 33%
12:44
after this historic announcement on Friday tells you that you
12:49
have a discount because before Bitcoin peaked at 109, there
12:54
wasn't a strategic Bitcoin reserve.
12:56
When Bitcoin was at 109, there wasn't the fact that the United
13:00
States government was going to be buying Bitcoin when it was at
13:02
109, right? None of those things were true.
13:05
Right, so you know, this is a great opportunity to stack the
13:09
dip. We just broke 500 live viewers
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You're listening to simply Bitcoin live.
13:35
I'm Nico, my Co host Opti in the house and our special guest for
13:38
today, Adam, the CEO of Leaden. Anyways, Opti, what's your take
13:44
on this brother? I mean, like we were so hyped on
13:47
Friday's live stream. It was popping off one of the
13:49
best live streams we've ever done.
13:51
I mean, it was historic. We were going to cover the press
13:54
conference. You know, Trump came out there,
13:56
you know, and he's like operation choke point 2.0
13:59
ending. Everyone was clapping.
14:01
Sailor was like, look at my orange tie.
14:03
Like it was a happy environment. And then over the weekend, it
14:05
was like boom, boom, boom, boom. What happened, Opti?
14:10
What happened? I blame you, Opti.
14:12
This is your fault. Yeah, it's always my fault.
14:14
It's always my fault. The one thing that we did here
14:17
I'm I'm going to cover like the response to the strategic
14:20
Bitcoin Reserve announcement. But one thing we did here come
14:23
out of the White House Crypto Summit, which I think most of
14:26
us, I kind of feel it was like a nothing burger.
14:28
I honestly thought it was going to be a lot longer.
14:30
It felt like it ended after 15 minutes and it just like
14:33
suddenly stopped and you're like what?
14:35
Like what? What did I just watch?
14:36
I thought this was going to be like an hour and a half open
14:38
discussion and they basically just like pat themselves on the
14:42
back about the strategic Bitcoin reserve.
14:44
But one thing that I thought was pretty interesting, it wasn't
14:47
exactly what we wanted to hear come out of the conference, but
14:50
Scott Besson said that they are going to re evaluate the IRS
14:54
policies around Bitcoin. So I think that is a pretty good
14:58
development. Obviously, it's probably not
15:00
what a lot of bitcoiners wanted to hear.
15:02
I think everyone wants to hear, you know, we're going to treat
15:04
the Bitcoin price like the Fiat exchange rate.
15:06
So at least we got some signal of what's to come down the
15:09
pipeline. But overall, it did seem like a
15:12
nothing burger on Friday of the White House crypto summit.
15:15
But like you guys were covering, we did hear some pretty good
15:17
stuff, some some good sound bites come out of that.
15:20
But I think in response to the strategic Bitcoin reserve,
15:23
obviously all of us Bitcoiners, this is all we think about,
15:27
right? Like we are so in tune with
15:29
Bitcoin news that this was a huge announcement for us.
15:32
But obviously most people aren't following along very closely
15:36
with what's going on in the Bitcoin space.
15:37
Again, you guys are what, what do they call us psychopathic
15:41
Bitcoin stackers out there? So we follow Bitcoin news
15:44
constantly. That's all we care about.
15:46
But if you really talk to a lot of people, they probably don't
15:49
even know that a strategic Bitcoin reserve was announced
15:52
and they probably don't understand the significance of
15:54
it, even if it was a symbolic significance here.
15:57
And that, you know, on on Main Street is probably not making a
16:02
lot of waves. But we are seeing in response
16:04
that either on a nation state level, on the federal level in
16:07
the US, of course, on the state level, it is starting to make
16:11
its rounds and things are starting to escalate here.
16:13
So it is very interesting the game theory playing out right
16:17
now. And I think kind of putting it
16:18
into historical context, when the ETF was launched, we all saw
16:23
something very similar, the Bitcoin price dumped.
16:25
And as Bitcoins like what is going on this, this is bullish
16:28
news here. Why isn't the price pumping?
16:30
Well, you know, we got some short term pain, Bitcoin price
16:33
dumped around the ETF and then following a couple of months
16:36
later, the price starts ripping. So if we see something similar,
16:39
then this is, you know, the generational buying, you know,
16:43
asymmetric moment right now where everyone's asleep at the
16:46
wheel. They don't understand the
16:47
significance of the World Economic superpower endorsing
16:52
Bitcoin. The price dumped.
16:54
Obviously, you can say there's a few different things either
16:57
traders are really like unsatisfied with the mechanics
17:01
of the strategic Bitcoin reserve.
17:03
The main point is, oh, it doesn't seem like they're going
17:05
to buy Bitcoin and that's kind of why the price dumped, at
17:07
least from most people's kind of takes, though from now we know
17:11
that they are announcing they're going to figure out ways to buy
17:14
more Bitcoin. So that's a complete wash here.
17:16
Obviously the crypto summit people are kind of wondering
17:19
about capital gains didn't really talk about that.
17:21
So that's probably why there's some bearish sentiment, right,
17:24
right now. But I think just in historical
17:26
context, looking at the ETF, it just means like, the Bitcoin
17:30
price is going to pump. And yeah, you know, I think we
17:32
kind of got back to that CME gap closing.
17:35
And it just means that we are, you know, the longer Bitcoin
17:38
price goes down and sideways, the harder it's going to pump to
17:41
the upside. And so this is the time to be
17:43
buying Bitcoin. Like, look, no one knows what's
17:46
going on with Bitcoin. If you are here watching this
17:48
show, you do have asymmetric knowledge and an asymmetric
17:51
understanding of what's going on in the world.
17:54
Again, this isn't a Bitcoin pricing.
17:56
There is a lot of uncertainty in the markets right now,
17:59
especially surrounding Trump and the tariffs and what they're
18:01
going to do with, you know, the US balance sheet.
18:05
There's a lot of stuff going on with DOGE right now.
18:07
So the stock market's completely wrecked right now.
18:09
Bitcoins down. Obviously Bitcoin as the most
18:12
liquid asset period. Of course we're going to get the
18:15
first sell off, but I think Bitcoin will react very strong
18:18
in the next couple of months. Obviously as a Bitcoiner, you're
18:20
like, man, you know, it's a poke in the poke in the Bitcoin meme
18:23
right now. It's like, will you do something
18:25
like we're so bored with these price movements Here.
18:28
We were, we were, you know what we were promised 150K like
18:32
today. And yet, you know, I guess now
18:34
we'll, we'll wait for 150 K first 100 days of the Trump
18:37
presidency. But there is something
18:39
interesting that we have heard over the weekend.
18:43
It's not necessarily new, but a lot of people have been talking
18:46
about the fact that Trump isn't really looking at the stock
18:48
market anymore as an indicator of his presidency doing good.
18:52
So we can speculate that maybe he is looking at the Bitcoin
18:55
price as an indicator of him doing well as a president.
18:59
Obviously, he's very big on, you know, economic booms right now.
19:02
And I think it's very interesting, like what Nico was
19:05
saying about Trump forcing Jay Powell, you know, to lower
19:09
interest rates. We've got to remember a lot of
19:12
the a lot of the voting bloc for Trump, they they seemingly don't
19:15
hold assets. So they're not really, you know,
19:17
stock market deep. They, you know, they might have
19:19
some real estate right now. So it seems like a good block of
19:23
the Trump voting bloc are Bitcoiners now.
19:26
And so, you know, they can wreck the economy.
19:28
But all of us people living paycheck to paycheck are like,
19:31
all right, cool, bro. Like I'm really not getting
19:34
wrecked. And, you know, there is a
19:36
economic war going on right now between the US and Europe, or
19:39
rather the US and EU right now. There's a lot of uncertainty in
19:43
the market. And as we all know, you know,
19:45
people go into the more risk less or risk off assets, even
19:50
though as Bitcoiners think Bitcoin is the risk off asset,
19:53
people are still, you know, going to gold or real estate or
19:56
cash right now because there is so much uncertainty.
19:58
But I think Bitcoins going to respond very favorably.
20:01
Obviously, I still think this year's going to be bullish AF.
20:05
And I think it's just the beginning, I think in historical
20:07
context. Just look at what?
20:10
Happened after the ETFI think in a month or two we're going to
20:12
look back at this and be like man, I wish I would have stacked
20:14
harder in March. Exactly spot on.
20:18
I want to give a shout out to the live stream. 635 of you guys
20:22
watching live on YouTube and 318 of you guys watching live on
20:26
Rumble. Unfortunately, X is not up
20:28
today, but if you guys are enjoying the show so far, smash
20:31
that like button. We have so much news and content
20:35
to cover for you guys today. We have a clip of Rachel Maddow
20:39
essentially dissing the strategic reserve.
20:41
We're going to cover that for you guys.
20:43
And then, of course, there's news of strategy.
20:47
Announces a twon 21 million STARKSTRK at the market program.
20:54
Essentially, Michael Sayler wants to raise 21 million, $21
20:58
billion to buy more Bitcoin. I'm going to ask Adam how he's
21:02
doing all of this because he just seems like he found an
21:05
infinite money glitch to continue to buy Bitcoin, which
21:08
is absolutely crazy. We have the clip of him
21:10
basically saying I'm the only one wearing an an orange tie at
21:15
the White House, which I thought was really funny.
21:16
So it's going to be a great show.
21:18
And of course, during the culture segment, we're going to
21:20
take advantage of the fact that Adam is in the house today and
21:23
we're going to be talking to him about letting and a bunch of
21:26
about a bunch of other topics as well.
21:29
So it's going to be a jam packed show for you guys.
21:31
The price may be dumping, but simply Bitcoins live stream is
21:35
definitely pumping. All right everybody before we go
21:38
into it opties crack it up I do want to give a shout out to
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today. All right, everybody, at the
25:05
time of recording, the Bitcoin price is $79,110, Block height
25:10
887,191 sats per dollar, 1264 market cap 1.57 trillion Bitcoin
25:19
versus gold market cap 7.66%, percentage issued 94.45% decline
25:25
from all time high -27.5%, realized monetary inflation
25:30
.94%. And the grand scheme of things
25:34
party is just getting started, I would say.
25:37
And again, my favorite stat out of all this is the realized
25:42
monetary inflation continuing to take Fiat currencies to absolute
25:46
school. Anyways, here's a clip of Rachel
25:50
Maddow essentially reacting to the strategic Bitcoin Reserve.
25:55
Find that quite interesting and let's check out the clip and
25:59
then we'll we'll have a conversation about it.
26:01
Let's check it out. I should say I'm by no means a
26:04
crypto expert. I'm not going to give you a
26:06
lecture on blockchain or meme coins or any of that.
26:10
I just AI don't know and BI don't care.
26:13
But I do think it's worth looking at this crypto thing a
26:16
little bit only because it is a deeply, deeply old fashioned
26:19
simple scam at this point, which points right to the White House.
26:25
News from the White House tonight really gives us no
26:27
choice. You have to look at it hopefully
26:30
the, the broad strokes of, of crypto trading are not
26:32
complicated. It's, it's like when there was
26:34
the Beanie Baby craze in the late 90s.
26:36
People started buying these stuffed animals, right?
26:40
Beanie Babies kind of inherently not worth much, but people were
26:44
speculating on them, right? It was a Beanie Baby trading
26:47
bubble. Other than maybe some emotional
26:50
value if you had one as a child, Beanie Babies didn't have much
26:54
inherent value. But it was worth buying up a
26:57
bunch of them because there was there was speculation on the
27:00
premise that as collectibles, maybe one day your your Beanie
27:04
Babies collection could be worth a lot of money.
27:06
Crypto currencies operate on the same idea.
27:09
They have no inherent value at all.
27:12
The only value they have is if you have some reason to believe
27:16
that somebody else might want to buy them from you in the future.
27:20
That's it. And what that means in very
27:23
practical terms is that convincing other people that
27:28
your crypto is popular and in demand, convincing people that
27:32
your crypto thing is going to have value in the future, it's
27:34
going to be collectible as Beanie Babies.
27:37
That is key to actually making money.
27:41
One of the things the SEC alleged a couple of years ago in
27:44
2023 was that Justin Sun had orchestrated a scheme to pay
27:48
celebrities to tout his crypto currencies without disclosing
27:52
that he had paid them to do so. So, in other words, he was
27:55
creating the impression of of hype and organic enthusiasm
28:00
around his product when that hype didn't naturally exist.
28:05
That was the allegation which, again, Justin Sun has denied.
28:08
And now the SEC has halted the case right after he gave more
28:12
than $50 million to the Trump family.
28:16
The idea of hype in cryptocurrency is that people
28:19
should, should buy in soon, right?
28:21
Get in on the ground floor while it's cheap because it's about to
28:23
go way up in value because there's so much interest in it.
28:26
You get it on the ground floor now you'll make a bundle.
28:29
It's the whole hype. It's the whole scam.
28:31
And when I mentioned that the news tonight leaves us not too
28:35
much, not much choice but to but to talk about the stuff right
28:38
now. This is what I mean.
28:39
The White House just posted this video tonight of Donald Trump
28:42
signing an executive order establishing a a a digital Fort
28:48
Knox. As someone says to the president
28:51
off camera, Trump apparently signing this executive order,
28:55
creating what they're describing as a federal government
28:58
cryptocurrency reserve. Now imagine the Beanie Babies
29:05
again for a second. Imagine Trump had just announced
29:07
that the US government was going to buy up tons of Beanie Babies.
29:13
We are going to establish a federal government reserve of
29:17
billions of Beanie Babies. What do you think would happen
29:22
to the value of Beanie Babies? Right?
29:26
Oh, it turns out there's a huge guaranteed buyer for these
29:30
things. They're buying billions of them.
29:34
I should mention that when, when Trump first brought up this
29:37
idea, this, this cryptocurrency national reserve thing on, on
29:42
Sunday, he name checked 5 specific cryptocurrencies that
29:46
would be going into this government reserve.
29:50
And Trump's own cryptocurrency company, his own project, bought
29:54
$20 million of those currencies, of two of those currencies this
29:58
week, ahead of what we now know will be a White House summit on
30:01
crypto tomorrow. If the whole idea here is that
30:06
you hype something by making it appear that there is a market,
30:10
that there's demand, that there's lots and lots of buyers
30:13
for specific crypto and people who get in on the ground floor
30:19
and own it, boy, that value is going to go up.
30:21
Well, it would seem that President Trump and his family,
30:24
and the White House specifically, are now playing
30:26
that game. I mean, there's so much to
30:33
unpack there. OK, so in a way, she's kind of
30:38
right in the sense that like, you know, obviously you guys
30:43
know that, you know, we're we're not a big fan of meme coins on
30:46
simply Bitcoin, but you know, like you could equate meme coins
30:52
to Beanie babies. Like in in that way.
30:54
She she's she's definitely maybe she has a point, but I would say
30:59
that, you know, in regards to in regards to, and I love how she
31:04
said digital assets. She didn't say Bitcoin strategic
31:06
reserve for you guys notice that she like she like avoided that
31:09
for some reason. Like Bitcoin is obviously
31:13
superior. I mean, 2017 is calling and
31:16
they're asking for their excuses back essentially for the FUD
31:19
lines back because, you know, we went through this Beanie baby
31:21
stuff. We've heard this before.
31:23
We've heard this talking point before.
31:26
Another thing also too is that Channel tends to be
31:30
ideologically opposed to Trump. So anything that Trump does,
31:33
they're just going to take the contrarian side.
31:36
But in a way, you're essentially giving by Trump.
31:39
Going down the path of launching his own meme coin three days
31:42
before the inauguration and this whole meme coin stuff, you're
31:45
essentially like, you're vindicating Gary Gensler.
31:49
You're making Gary Gensler seem like a reasonable person.
31:53
Because everything he said was going to happen essentially
31:56
happened. And I think that the general
31:59
retail and just people in general don't know the
32:03
difference between. They don't know they they don't
32:07
know the fundamental difference between Bitcoin and crypto.
32:10
They still kind of equate the two, right.
32:12
So I think, you know, people that have negative experiences
32:15
with, you know, the like the, you know, the, the bottom of the
32:20
barrel, all coins, all coins in general.
32:23
Like I think, you know, they're going to essentially there,
32:25
there could be a situation where, you know, they they go to
32:30
government and say, listen, you know, bail us out.
32:32
This is terrible. You know, this industry is is
32:36
filled with fraud. And again, it didn't really help
32:38
that the president of Argentina launched a meme coin.
32:42
Trump launched a meme coin. Like, it kind of plays into all
32:46
their narratives, all the things that they've been saying,
32:48
Obviously, Rachel Maddow. Is taking advantage of that and
32:53
you know, and, and people don't know about Bitcoin like they
32:55
don't know about Bitcoin so. You know that.
32:57
Again, I'm very happy with how the White House went about it.
33:02
They clearly could tell the difference between Bitcoin and
33:07
the rest of the industry. And I think the strategic
33:10
reserve was beyond what a lot of us had expected.
33:14
So shout out to David Sachs and Howard Lupnik, I'm sure had a
33:17
big role to play and all that. So you got to give them credit
33:19
where credit is due, but like at the same time like.
33:24
You know, why give fuel to, you know, your, your political
33:28
opponents, right? Like, why give fuel to your
33:30
political, you're playing into the narrative, right?
33:32
And she's obviously taking advantage of that.
33:34
And in a lot of ways she's right, right, because I, I don't
33:37
know what the the latest meme coins are.
33:39
I have no idea what, what The thing is, But but like, what is
33:43
the fundamental difference between a meme coin and A and a
33:46
beanie baby? I, I, I can't, like, I can't, I
33:48
don't know, maybe a Beanie Baby's.
33:50
Like in real life, you could actually hold a beanie.
33:52
Baby. So, you know, anyhow, I'm going
33:55
to pass it on to Adam. Adam, what's your take on this
33:57
man? It's it's surprising that so
34:02
soon he everything Trump does, he gets feet pushback on.
34:06
But in a way, in a lot of ways, like I'm not a big fan of Rachel
34:09
Maddow, but in a lot of ways, she's right.
34:12
Look, I mean, her opening sentence, I don't know how she
34:15
didn't lose 95% of viewers when you say I know nothing about
34:18
this topic, but I'm going to go on a rant about it anyways.
34:21
And you can you can take me as credible or not.
34:24
But to, you know, to start off by saying, you know, blockchain
34:27
kind of throwing it up like, you know, just all these buzzwords
34:30
and then diving into it. But I look, there's nothing more
34:34
than a skeptic loves. It's saying, Hey, look at this
34:36
really rich guy's wealthy unfairly and he bought, you
34:40
know, 20 million of this before and This is why he did it right.
34:44
And that's an easy thing to hang on to.
34:45
So I think you're right in that she makes some some credible
34:50
references. Obviously she's she's wrong on
34:53
the topic overall to due to complete ignorance, but I think
34:56
that's an easy set up to get people's attention to say look
34:59
at how this person is enriching himself even further by front
35:03
running the the taxpayer really. And that's you.
35:07
So I, I think, you know, one, one thing that kind of just Nick
35:12
Carter put in a tweet about that was pretty interesting when it
35:16
came to the US benefiting, right?
35:17
He said, you know, US already gets capital gains tax on
35:21
Bitcoin. So, you know, if the policy is
35:24
set right, do we need a strategic reserve at all, right?
35:27
Is the US government need to hold Bitcoin?
35:30
Or if can it just get the policy right?
35:32
And then, you know, encourage taxpayers to own Bitcoin and
35:35
then naturally it gets percentage of the upside to
35:37
taxation as that Bitcoin increases in value.
35:40
So that that was an interesting point about, you know, how
35:42
relative is strategic reserve going to be relative to the
35:45
amount of Bitcoin held by, you know, Americans, right, and then
35:48
getting the future value from that.
35:49
So I think I think there's for, for for good reason, skepticism
35:53
on the cheesy preserve overall. And I think there's an important
35:55
debate as to how much Bitcoin the US government should hold or
35:59
can it benefit enough just by having really, really clear
36:02
policy on it? Because obviously you're, you
36:05
are at the end of the day, spending taxpayer money.
36:07
You know, if you're buying it with assets you already have,
36:09
you also have the ability to pay down the liabilities that exist.
36:13
So I think it's all government money, regardless of what you
36:15
say. It's, you know, cash neutral to
36:17
the taxpayer. So I think, you know, I, I
36:19
welcome criticism on it. So I think it's an important
36:21
debate. But again, just going back to
36:23
the topic at hand with with Rachel, I mean, man, oh man, can
36:26
it be any more ignorant when you mean when you start to throw
36:28
everything in one bucket and just open with a sentence like
36:31
that? That was completely pathetic.
36:33
100% Also to breaking news, Rumble seems to be down as well
36:38
Opti, which is quite interesting.
36:41
So really it was. Just.
36:42
Working X and Rumble are down. It's working for me.
36:46
I think it's still good. We're good, we're good.
36:48
I. Don't know rumble chat, are we
36:49
still good? Because it still seems live for
36:51
me anyways, let's just keep it going.
36:54
Let's just. Keep it going.
36:55
What's your what's your take on Adam's comments?
36:59
Yeah, so kind of what I was saying in the beginning is like,
37:04
as much as the chat right now, it's like, why are you playing
37:07
this? This is very blatant propaganda
37:09
here. I think it's very important to
37:12
watch this stuff because that is the current state of, you know,
37:15
normies looking at Bitcoin. A lot of people probably look at
37:19
Rachel Maddow and agree with a lot of the things she's saying
37:22
right now where they're like, I don't understand Bitcoin either.
37:24
And this does look like a very blatant scam, though.
37:27
There's a lot of things we talk about here on the show
37:29
constantly is the separation of Bitcoin in all coins.
37:32
Obviously we're still dealing with the stench of a lot of the
37:35
stuff from the last cycle, whether it's like the block Fi
37:39
FTX, you know, or just all, all of that stuff that we've seen,
37:44
you know, even Justin's son and, and the, you know, the things
37:47
that she was bringing out, though.
37:49
I will do a little push back. Nico, you, you said she may be
37:51
writing a lot of things. Well, I didn't know you can send
37:54
Beanie baby babies across the world over the Internet in, you
37:57
know, 10 minutes or less. I didn't know Beanie babies were
37:59
fungible. I, you know, I, I didn't know
38:01
that there's, you know, Beanie babies are hard capped at 21
38:04
million. So I, I think this Beanie Baby
38:07
comparison is absolutely atrocious.
38:10
But again, a lot of people are looking at Bitcoin and they're
38:14
probably saying something very similar.
38:15
They probably don't understand Bitcoin.
38:18
They're seeing Trump kind of engage in scam coins and they're
38:22
just like, what is this scam? Especially if you don't like
38:25
Trump, it's very easy to be like, this is just a Ponzi.
38:28
Obviously the Ponzi meme is just classic fight around Bitcoin.
38:33
As everyone knows he has a Bitcoiner.
38:35
It's like I don't want to get rid of the, the Bitcoins that I
38:37
hold. So like that's, you know, that
38:39
whole Ponzi thing completely out, like out of what all of us
38:44
think, it's like we want to hold this stuff for as long as
38:46
possible. I'm not trying to dump on the
38:48
next idiot. You know, this isn't greater
38:49
fool theory playing out. It's like this is my savings.
38:52
I want to hold it for as long as possible.
38:54
So, you know, there's a lot of stuff that I, I, I wasn't aware
38:57
about Bitcoin, you know, I didn't, I didn't know Bitcoin
38:59
was, was a teddy bear here. And, you know, I can, I can
39:02
store it in a, a little, you know, stuffed animal here.
39:05
But as I was saying, it's very clear that a lot of people don't
39:09
understand what's going on with Bitcoin.
39:10
And the fact that this is kind of the the low hanging fruit FUD
39:14
that she's putting out there and people are kind of agreeing with
39:18
her. Just goes to show one, obviously
39:20
we all know that she's kind of, you know, more on the left side
39:23
here and anything Trump's going to do, she's going to bash it.
39:26
But on the flip side is like what Adam was saying, this is
39:29
probably what a lot of people think about Bitcoin.
39:32
And there's still a lot of asymmetric misunderstanding
39:35
going on in the market because people fundamentally don't know
39:37
what Bitcoin is. Again, many people haven't asked
39:40
themselves what money is, and yet This is why they don't
39:43
understand what Bitcoin is. And so we're under 100K.
39:46
We all know bitcoins probably going to go up incredible
39:50
amounts. 1,000,000 is not out of the question here in the next
39:53
couple of years. And we all know as the world
39:57
does start to move more digital, there's two choices.
40:00
It's either a CBDC or it is Bitcoin.
40:02
And we know that the establishment has pushed for
40:05
more of a cashless society. And it's our duties to continue
40:09
to educate people and be like, hey, look.
40:11
You're either going to get forced into a CBDC dystopia or
40:14
we go into, you know, I hate to use to use the word utopia here,
40:18
but a Bitcoin utopia, a bright orange future here where your
40:21
life gets cheaper, the world gets more free, and we are no
40:25
longer subjugated to the people in political power, stealing our
40:31
wealth away. So like, look, if you fall for
40:33
the propaganda, we'll be here when you're ready.
40:36
But it looks like this is kind of the current state of
40:40
mainstream's understanding standing a a Bitcoin.
40:42
So, you know, This is why we still get under 100K Bitcoin.
40:46
So I don't know, this is kind of bullish.
40:48
It is. It is.
40:49
Definitely bullish in the long term.
40:51
Anyways guys, seems like Rumble is back.
40:53
It was down for a little bit according to the comments.
40:55
So shout out to everybody watching us live on Rumble.
40:57
Shout out to everybody watching us live on YouTube.
41:00
If you guys are enjoying the show so far, make sure to smash
41:03
that like button. We still have a ton of content
41:05
to cover for you guys. We have David Sachs comments on
41:08
the recent All In podcast. David Sachs is the AI and crypto
41:12
czar for the White House. Michael Saylor announces that he
41:16
somehow manages to just continue to raise money to buy more
41:19
Bitcoin. He announces a $21 billion STRK.
41:25
Hold on a second. STRK at the market program.
41:29
I'm going to ask Adam what that means.
41:31
And of course, we have the clip of Saylor basically talking
41:35
about his orange tie. And if we have the chance, we
41:39
have a very, very fitting video for you guys from American
41:42
Huddle. If we have time, we'll show you
41:44
that. We'll show you that, show that
41:46
for you guys today. If not, we'll show it to you
41:48
guys tomorrow. All right, everybody, let's hit
41:51
the news. We have tons to talk about.
41:53
We will be right back. I want to give.
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44:28
back. So I think this was my favorite
44:31
part of the entire conference, by the way.
44:35
It was a lot shorter than people were thinking, right?
44:37
It was like literally like the Opti was mentioning this.
44:40
It was like 15 minutes, the 1st 2 1/2 minutes.
44:44
Trump was like, we got the World Cup.
44:46
You like that? You like the trophy of the
44:47
world. This is awesome.
44:49
This, this trophy, it's so gold. It's so great.
44:52
It's so amazing. And then after he was like, all
44:55
right, you know? We're just, I'm just going to
44:58
say a 5 minute speech. We're going to go around the
45:00
table. And then he was like, all right,
45:01
everyone just get the F out now. It was like a 15 minute press
45:04
conference, which is OK. I mean, I'm sure they had a lot
45:06
to talk talk about. Behind closed doors but I was
45:09
definitely expecting more but this was my highlight of the
45:11
whole thing. Other than Trump.
45:13
Saying like you shouldn't sell your Bitcoin, at least that's
45:17
what they say, but who knows, which was hilarious.
45:20
I don't know if you guys caught that, but here is Michael Saylor
45:24
essentially saying let's check it out.
45:30
But I'm wearing my orange. Tie, he's very proud of his
45:37
orange tie. He's the only one wearing the
45:39
orange, orange tie. And Speaking of the Chad Sailor,
45:43
this was an announcement from from today.
45:46
Strategy announces $21 billion STRK at the Market Program goes
45:52
on to say A Strategy announced that it has entered into a sales
45:56
agreement pursuant to which Strategy may issue and sell
45:59
shares of its 8% Series A Perpetual Strike Preferred Stock
46:05
having an aggregated offering price of up to 21 billion.
46:09
Shares of the Perpetual Strike Preferred Stock are convertible
46:12
by the huddle of by the holders into shares of Strategies Class
46:16
A Common stock. Strategy expects to make sales
46:18
of of Perpetual Strike Preferred Stock pursuant to the ATM
46:22
Program in a disciplined manner over an extended period of time,
46:27
over an extended period taking into account the trading price
46:29
and trading volumes of the perpetual strike preferred stock
46:33
at the time of sale. So I'm going to ask Adam, he's a
46:36
little bit above my pay grade. What does this mean?
46:39
Man like Sailor, I feel like he's found all this like
46:44
extremely complex financial engineering in order to
46:49
essentially find an infinite money.
46:50
Glitch to continue to buy more Bitcoin like when does this end?
46:53
Could could he continue to do this forever, Adam?
46:56
Look, I think that what sailors really mastered is he's able to
47:00
play different pieces of capital markets because there's a real
47:03
shortage of dollars coming into the digital asset space.
47:05
And so, you know, when you think about it, how can you buy
47:07
Bitcoin today? Of course, you can buy physical
47:09
Bitcoin, which we all know and love.
47:11
You can buy the ETFs. You can play the miners, you can
47:15
buy Coinbase, but there isn't like a plethora of different
47:18
options to enter into the space. And what he's done really well
47:22
is there's a whole bunch of buyers.
47:23
There's a really deep, you know, a pool of capital available for,
47:28
you know, convertible stock and for, you know, specifically
47:32
investors that are really looking to play the volatility
47:35
of that. And so he's been able to tap
47:37
into that, you know, pool of capital when no one else has
47:40
done that. He's played it like a fiddle
47:41
over the past, you know, 1824 months to really come up with a,
47:45
with a massive, massive capital raise to do that.
47:48
So he's doing it again. I think this time when you look
47:50
at the yield, if I'm, if I, you know, stay correctly, I think
47:53
he's paying a higher yield than he has paid in the past.
47:56
And that's maybe reflective of market conditions.
47:57
I think he's done some at, you know, under 1%.
48:00
It looks like this time he's issuing at a coupon of 8%.
48:03
Again, if I understand it, I haven't dug into it detail, so
48:06
correct me if I'm wrong there, but it looks like, you know,
48:08
again, he's saying what does the market need?
48:11
How can I play into this? What do I need to price to get
48:13
to maximize volume? And he knows that, you know, the
48:16
market's really receptive to him buying Bitcoin and playing this
48:19
trade. So it's a huge dislocation as to
48:22
where the demand is versus where he can of course, source supply
48:25
for Bitcoin. He's able to repeat that and
48:27
repeat that because there isn't a lot of options for this pool
48:30
of capital. Interesting.
48:31
A great, great, great perspective.
48:34
I knew Adam would know the answer.
48:35
I knew Adam would know the answer.
48:37
That's why I'm asking him. Opti, what's your take on this?
48:40
I mean, Michael Saylor continuing to buy Bitcoin right
48:43
off the gate on Monday. He's like, look, but it's
48:45
dipping. I don't care.
48:46
I wore my orange tie. I'm going to figure out a way to
48:50
raise more money and buy more Bitcoin.
48:51
Opti. Yeah, like you said, you know,
48:55
this is above my pay grade, but you know, whatever sailors doing
48:59
to acquire as much Bitcoin as possible, I wish I had the
49:03
capabilities of doing so. Like Adam was saying, it just
49:06
looks like he's figuring out new ways to offer products to the
49:10
market that either they don't know they want or they really do
49:13
want. And so we're starting to see, as
49:16
we'll cover in the culture a little bit, we are entering a
49:19
new paradigm here where banks are kind of coming into Bitcoin
49:23
and they they're probably going to be offering some similar
49:25
products here. But Michael Saylor has been
49:28
showing a master class here and he's the first one to the punch.
49:31
So it's going to be very interesting if Saylor can keep
49:34
that premium with all of these micro strategy or rather
49:36
strategy products here. But hey man, you know, he's
49:39
buying 21 billion or, you know, seemingly going to buy 21
49:43
billion of Bitcoin. Like I, I forget the numbers
49:47
here, but that's a lot of all of the, I think it was 150% of all
49:51
the Bitcoin that will be mined at today's price.
49:55
So at a certain point, something has to give and the Bitcoin
49:59
price is going to RIP because there, there seems to be a lot
50:02
of demand to scoop up the remaining Bitcoin and this, this
50:06
Bitcoin price can't just maintain going sideways for too
50:09
much longer. So it is very interesting to
50:11
watch. And again, like I said, you
50:13
know, I wish I had these rates and these capabilities.
50:15
Nico, when are we going to do this for simply Bitcoin Bro?
50:18
What's going on? Yeah, man.
50:19
I mean, yeah, bro, it's I don't know, dude.
50:22
I think, I think, I think it's, I think things are a lot easier
50:25
when you're, when you're bigger, you get access to, to, to, to
50:29
better deals, you know, But anyways, I do have a clip from
50:34
David Sachs from the All In podcast regarding his historic
50:38
meeting at the White House, the first crypto summit at the White
50:42
House. I have a clip of David Sachs
50:45
talking about it. Let's check it out and then
50:47
we'll discuss. Yeah, we're not picking
50:50
favorites, obviously, except I will say this, we do think
50:53
Bitcoin is special and I can get into to the reasons why.
50:56
That's a great thing. Well, I mean, Bitcoin is the
50:59
original cryptocurrency. It's the first one.
51:02
It's the only one that doesn't have an issuer, right?
51:04
It's it's very decentralized. It's, you know, crypto, they
51:07
call this the Immaculate Conception.
51:08
We don't really know how it got here.
51:10
We don't know who Satoshi is. It's almost mystical.
51:13
You would say it's the most valuable one.
51:15
It has a $2 trillion market cap and it's the most secure it's
51:18
ever been hacked, right? So we're now, you know, over 15
51:20
years into this journey and there's been a lot of people
51:23
who've been skeptical on the way and there's been a lot of ups
51:24
and downs, but here it is. I mean, I remember back in 2011,
51:28
I think it's the first time I bought a Bitcoin.
51:30
I think it was at 100 and $20. Now it's at $90,000.
51:35
Again, there's been all sorts of wild swings along the way, but
51:39
this thing just keeps keeps chugging along.
51:41
And you can think of that $2 trillion market cap is like a $2
51:46
trillion bug bounty. If there was a way to hack this,
51:49
there's every incentive in the world.
51:51
And by hack, I mean like to double spend, create basic
51:54
counterfeit Bitcoin, I guess would be the way for people to
51:56
think about it. And so this is a.
51:58
Miracle it hasn't been compromised.
52:00
I think we can all say that. Well, I don't know if it's a
52:02
miracle. I think it's exceptional design,
52:04
you know. And so I think, I think what you
52:06
could say is that it's been tested in a very robust way and
52:09
there's been every incentive to basically break the encryption
52:12
and it continues to chug along. And so I think the price has
52:15
gone up as the protocol has gotten more acceptance.
52:19
And this is another point is that Bitcoin's most widely
52:22
accepted as a store of value throughout the world.
52:28
Wow. I mean, a couple couple things
52:30
to unpack here, right. So first of all, I love the
52:34
Internet. And the reason I'm saying that
52:36
is because there you have essentially someone who works in
52:41
government and he's not being interviewed via legacy media.
52:46
Legacy media interviews guys like they're very well.
52:48
Produced, but there's like a very, just very structured.
52:52
It's no longer than some of them are a little bit longer, but
52:54
it's usually like a 20 to 45 minute interview.
52:57
The production quality is amazing, but it's like very
53:00
rehearsed. It's not an organic type of
53:02
conversation. So it's really refreshing to see
53:04
someone in the administration just have like, a, you know,
53:09
just a regular conversation about a specific subject,
53:12
specifically after the historic summit that happened at the
53:15
White House. And then the other thing that
53:18
I'll say is too is like regarding the price, right,
53:20
because we are dumping, This is why I'm assuming a lot of you
53:23
guys are tuning into us right now.
53:25
Like what's happening with the price of Bitcoin, Like that is
53:30
essentially Trump's right hand man when it comes to Bitcoin and
53:35
digital assets and then Trump's. The other right hand man is
53:39
Howard Lupnik. Both of them, David Sacks and
53:42
Howard Lupnik own a lot of Bitcoin, right?
53:45
And at the end of the day, no one is better than their
53:48
incentives, right? So I mean, look like this is a
53:52
this is a my opinion A1 in a generation buy the dip
53:56
opportunity. You're getting a 33% discount.
54:00
I showed you guys the the screenshot in the beginning of
54:03
the show where the White House is basically saying like, look
54:05
guys. You know, we want the US to be
54:09
the strategic, you know, the the Bitcoin.
54:11
Capital of the world, like, who would have thought that?
54:14
And then the other thing, the last thing I'll say before I
54:16
pass it on to Adam is. Like he's clearly
54:19
differentiating Bitcoin between the rest of the the the rest of
54:23
the cryptos and. I think a lot of people kind of
54:26
heading into it, we're not expecting that the White House
54:29
was a little bit vague with this first initial executive order
54:33
regarding digital assets. So, yeah, I mean, I think it's
54:36
extremely bullish from my perspective.
54:39
That's how I'm interpreting it and I I just love the era of
54:43
social media. I love the era of the Internet
54:45
where you can have those types of conversations and it's not in
54:49
a highly controlled environment. Adam, what's your take on this
54:52
man? I mean, how could you not be
54:54
bull? Like when you hear that right
54:56
from the AI Cryptozar, the White House of the most powerful
55:00
country on the face of the planet.
55:02
Simultaneously, they're saying, look, guys, we're going to
55:04
figure out ways to buy Bitcoin. I know we can't do it.
55:07
We can't just, we can't use taxpayer money, but there's a
55:10
whole lot of ways where they can essentially reallocate assets
55:14
into Bitcoin and it's in a budget neutral fashion, right?
55:17
So I mean, I don't know how you cannot.
55:19
Be bullish at this point, Adam, what's your take?
55:22
I, I think the best thing that's that Trump has done for this is
55:25
bringing in experts that have been in the space, right.
55:27
I think typically what you get in government is you get clear
55:29
bureaucrats that have been clear politicians going around meeting
55:33
with industry and then trying to get up to speed on this.
55:36
But you know, like David Sachs, as he said, you know, he's
55:38
buying Bitcoin at 120. He's been in the space for
55:40
years. He understands it.
55:41
He's been a tech entrepreneur. So, so that's the best thing
55:44
possible because he's able to give advice about what really
55:47
helps people build in the space. In my opinion, I think we have
55:50
to be a little bit less obsessed with the US buying Bitcoin and
55:54
getting the policy right for people to want to own Bitcoin in
55:56
the US and want to build Bitcoin companies in the US, because to
56:01
me that's much more important. And, and that, you know,
56:03
decentralized buying, I think is going to be an aggregate way
56:07
bigger than the US concentrated buying and way more, way less
56:11
controversial. So, you know, I think that's
56:13
what they're doing is let's make it a great place to want to own,
56:16
store custody again, build on Bitcoin versus obsessing with,
56:21
you know, how much is the US going to own every day?
56:23
And I think if if that gets done right, the price depreciation is
56:26
going to be way bigger and way more important.
56:28
Just trying to calculate how much the US government can move
56:30
the market as a centralized entity.
56:33
I love that and the. Great, great, great take.
56:35
Before I move on to Opti, I do want to give a shout out to the
56:37
live stream. 742 live viewers on YouTube alone help us break 300
56:44
likes before the first hour and 10 of the show.
56:48
So if you guys are enjoying the show so far, make sure to smash
56:51
that like button. I did ask the community 322
56:55
votes so far. I said is the cycle over 76% of
56:59
you guys voted no, so 76% of the chat is still feeling bullish
57:03
and of course, shout out to the rumble audience. 400 live
57:07
viewers on Rumble. So shout out to you guys as
57:10
well. Opti.
57:11
What is your take, man? I mean, I even though we're
57:14
dumping 78 K, the price is going, you know, it sucks our
57:18
net worth, is it evaporating before our eyes?
57:21
I'm still feeling really, really good, man.
57:23
Maybe it's because I've been in this market for so long and I'm
57:26
just so used to getting metaphorically beat up by the
57:29
Bitcoin price cycles in the Bitcoin roller coaster.
57:32
But what's your take, man? I mean, that's pretty crazy.
57:35
I mean, that this is something that we were not expecting as
57:38
Bitcoiners. Like the fact that Mister Sachs
57:41
is basically saying like, look, we're we're seeing Bitcoin
57:44
differently than the rest. What's your take, Opti?
57:47
Well, on your last point, I think we're just dead inside.
57:50
This price action means nothing to us.
57:52
We will huddle this forever. No, I'm kind of trolling.
57:56
I, I might have a little heart left a little one.
57:59
Well, seeing David Sachs. First of all, I love this new
58:02
version of David Sachs on the all in podcast.
58:04
If you guys know the all in podcast, it's obviously David's
58:07
Jason and Chamoth. And there's someone else that
58:11
that's usually like the four panel members that, you know,
58:14
all billionaires that have been talking about all things
58:17
economics and tech for, for years now.
58:20
And I, I love this new David Sachs version because you can
58:23
tell maybe, maybe I might get a different take than Nico.
58:27
You can tell he is kind of restrained a little more, which
58:30
I like because now he's really going just full Bitcoin.
58:33
And as we know and I, I do have to Fact Check something that
58:36
I've said last week. And I saw a little more on
58:39
Twitter over the weekend. I was saying that David Sachs is
58:42
most likely one of the, the main drivers behind the Solana stuff
58:46
being added to the crypto reserve or the stockpile.
58:49
But it came out over the weekend, or rather he's been
58:52
kind of saying it on his Twitter and maybe I just saw it over the
58:54
weekend, that he's essentially divested from all of his crypto
58:57
holdings. So he is apparently completely
59:00
divested from all his crypto holdings, which I think it might
59:03
be an L considering he's not holding Bitcoin at this moment.
59:05
But at least we know he's not really, you know, that whole
59:09
Elizabeth Warren thing that you guys have been saying.
59:12
Did you guys, did you hear about that ego?
59:13
Elizabeth Warren sent a letter about conflicting interest and
59:17
insider trading type stuff with David Stacks.
59:20
She's she's protecting bro. Of course.
59:22
Anyways, David Stacks says he doesn't hold anything right now
59:26
and he's the crypto czar. So I find it very interesting
59:29
that he is pumping Bitcoin so hard considering that
59:32
historically they've kind of joked about all the other, you
59:35
know, like literally VC dumping on Main Street.
59:37
And I love seeing Jason sit there and kind of have to like,
59:42
hold, hold back on it and, and eat his, you know, his, his
59:46
humble pie there because it doesn't seem like he really
59:50
likes Bitcoin as much as every one of of us do.
59:53
He's obviously a little more crypto friendly.
59:55
And there's David Sacks on the show.
59:57
He's like, look, we're going to treat Bitcoin differently.
1:00:00
Bitcoin is the different beast here out of everything else.
1:00:03
And you know, it's, it's going to go up because obviously it's
1:00:06
getting added to the strategic Bitcoin reserve.
1:00:08
Of course, they're also in like suits, I think for some of the,
1:00:10
you know, one of the. First couple of times here.
1:00:13
So that is pretty interesting, but I think we're seeing
1:00:16
obviously a new era here for Bitcoin and a lot of his bit
1:00:21
corners are wrapping our heads around this.
1:00:23
I, I seen a lot of people on Twitter being, oh, now that the
1:00:26
US is embracing Bitcoin, how's that separation of money and
1:00:29
state going? And it's like, guys, we knew
1:00:31
this was going to happen eventually.
1:00:33
Bitcoin is for anyone. Bitcoin is for enemies.
1:00:36
Even governments need sound money.
1:00:38
They probably need it more than us individuals if you're if
1:00:41
you're really kind of breaking it down.
1:00:43
But all of us are here to protect our purchasing power and
1:00:46
make sure that we don't get poorer as you know that the
1:00:49
Titanic that is the Fiat ship goes down.
1:00:51
And though they are trying to do a lot of things to get some more
1:00:56
trust and and credibility in the financial markets because people
1:01:00
are having concerns about the dollar.
1:01:02
And obviously This is why this push for Bitcoin is such a
1:01:05
significant moment in history. And I think we're going to look
1:01:09
back on this and be like, yeah, man, that would that was the one
1:01:12
of those points where we can fundamentally look back and be
1:01:15
like, this is where Bitcoin change, hopefully for the
1:01:18
better. I know a lot of people are
1:01:19
concerned now because the government is getting into
1:01:21
Bitcoin. I know a lot of people are
1:01:23
saying like, oh, we're probably never going to get another soft
1:01:25
fork in Bitcoin now that it's like a strategic national
1:01:28
concern. But I don't think that Bitcoin
1:01:31
or sorry, governments will have any more influence over Bitcoin
1:01:36
than anyone else. But we are entering the big
1:01:39
leagues. Guys like, you know, as we've
1:01:40
been joking, Nico and I are probably going to have to wear
1:01:42
suits here. No more hoodies on simply
1:01:44
Bitcoin. We got to wear suits.
1:01:47
Dude when I was in. So when I was in DC, and
1:01:50
actually Mauricio was on the episode that day when I was in
1:01:54
DC to interview Senator Lummus and I did the show from the
1:01:56
hotel room, I wore a suit on that episode.
1:02:00
And that episode blew up, right? So maybe, maybe there's
1:02:03
something about suits, Opti. Maybe there's something we're
1:02:06
missing bro. Anyways, guys, I do want to give
1:02:09
a shout out to the live stream. 720 live viewers on on YouTube,
1:02:13
400 live viewers on Rumble. If you guys are enjoying the
1:02:16
show so far, smash like, but an X is down today, unfortunately,
1:02:19
but we'll have it back on tomorrow.
1:02:21
Let's get to the culture. We're going to take advantage of
1:02:24
the fact that we have Adam in the house.
1:02:26
Adam is the CEO of Leaden and we're going to talk about all
1:02:30
things Leaden. We're going to talk about other
1:02:31
topics as well. So guys, stay tuned.
1:02:33
We'll be right. Back we're going to hit.
1:02:35
The culture I want to give a. Shout out to our partner Hive
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Digital Technologies. As the first ever public miner,
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All right, everybody, we are back.
1:04:40
And we got Adam in the house. Opti, it's all yours.
1:04:44
Wait, wait, wait. Hold on before before we do
1:04:46
that. Adam.
1:04:48
I don't think I've ever asked Mauricio this.
1:04:50
Could you tell us the story Lenin started in 2018?
1:04:54
Yeah, that's right. What motivated you guys to start
1:04:58
the company? Look, I owe Mauricio for
1:05:00
introducing me to Bitcoin. We Mauricio and I met at
1:05:03
Business School in Canada. We went to school together back
1:05:06
in 2000 and five, 2007 time frame and we stayed in touch and
1:05:12
Mauricio was back and forth between Venezuela where he grew
1:05:14
up in Canada and he got into Bitcoin mining in Venezuela
1:05:17
because, you know, that was a really roundabout way to take
1:05:21
advantage of the economic subsidies in Venezuela.
1:05:24
And I was working in renewable power, specifically wind and
1:05:27
solar and hydro energy. And so he got in touch with me
1:05:31
because he wanted to continue mining Bitcoin in Canada.
1:05:33
And that was his good friend that knew how to get access to
1:05:36
low cost power in Canada. And so he introduced me to it
1:05:39
and I said, you know, what is this Bitcoin thing?
1:05:40
Why do you need electricity to mine it?
1:05:43
This was 2016 time frame and we we set up a mine together.
1:05:47
We set up a mine in Quebec, which has the lowest cost power
1:05:50
in Canada. And then from there we went to
1:05:52
finance our Bitcoin mine and we couldn't get access to
1:05:56
financing, let alone even open up a bank account.
1:05:59
And so it was an interesting experience approaching different
1:06:01
Canadian banks and say, hey, we want to expand.
1:06:04
I was used to, you know, approaching banks for financing
1:06:07
for renewable power, which was pretty developed at the time and
1:06:09
well structured and said, you know, this is kind of like an
1:06:12
infrastructure project. You know, Bitcoin mine has a big
1:06:14
upfront cost and then as you're operating it, you get a tail of
1:06:18
cash flows, of course, and Bitcoin, not Fiat from running
1:06:21
it. And I thought, you know, this is
1:06:22
very similar to how again, an infrastructure, the projects is
1:06:25
finance. So why not?
1:06:26
Why can't we finance the same thing?
1:06:28
And from the lack of availability of financing became
1:06:31
the opportunity for Latin. And so we decided to focus less
1:06:34
on Bitcoin mining and instead create a financing product for
1:06:38
Bitcoin. And so we launched Canada's
1:06:39
first Bitcoin back loan in 2018. At first we're solely focused on
1:06:43
the mining market and we thought, you know, we're
1:06:45
financing Bitcoin, not really the mine itself.
1:06:47
So why can't we make this available for all Bitcoiners?
1:06:50
The amazing thing about Bitcoin is, of course, it's the same
1:06:52
everywhere. So again, we said, why are we
1:06:54
doing this just in Canada? We can do it all, all around the
1:06:56
globe. And we iterate from there and
1:06:58
making sure the product was available.
1:07:00
And we focused specifically first on marketing to Latin
1:07:02
America because we thought, you know, people in that region
1:07:05
could benefit from the products the most.
1:07:07
And we expanded. So yeah, that was the the 2018.
1:07:10
And then, you know, of course we had the benefit from the market
1:07:12
really taking off during the COVID period and went from
1:07:15
doing, you know, a couple $1000 of loans a month to in April
1:07:18
2021, we did 50 million in one month.
1:07:20
And so that was when the business really exploded.
1:07:24
Incredible then that that's, that's awesome.
1:07:26
And I remember one of the things in, in entrepreneurship they
1:07:29
sell you is like, build the things that you need, right?
1:07:32
Like if, if, if, if you if you don't see if you don't see
1:07:36
something that exists, you're like, oh wow, let me just build
1:07:41
this myself and you know, bada Bing bada boom.
1:07:45
And that sounds like such an incredible.
1:07:47
You know, it's not sounds. It is such an incredible success
1:07:52
story. And I I do want to address some
1:07:55
a question in the chat Someone is asking essentially, is leaden
1:07:58
available in the US? Yes, it is available in the USI
1:08:01
am AUS citizen and I use leaden and they're absolutely awesome.
1:08:05
You know the part where it like completely?
1:08:07
Surprised me and I was like messaging Mauricio Adam about
1:08:11
this. When I first opened up a loan
1:08:13
with you guys, I was so surprised by the fact that you
1:08:16
guys don't do monthly payments, right?
1:08:18
It's the you pay, you pay up at the end of the term.
1:08:22
And I was like messaging. Mauricio, I'm like, hey, man,
1:08:24
like how do I make the payment? It's not asking me.
1:08:28
And then I realized, you know, which is really, really cool the
1:08:31
way that you guys approach that because it obviously takes away
1:08:35
the burden from the user essentially, right?
1:08:38
Well, that's why it never made sense to us when we compared
1:08:40
against other products. I mean, you're borrowing cash
1:08:42
because you want cash. Why are we going to ask for
1:08:44
cash, you know, in a a month later, right?
1:08:46
It's like, you know, there's a reason that you're Bitcoin rich,
1:08:48
cash poor. You want to spend the cash on
1:08:51
other things. But then, you know, if we were
1:08:52
doing monthly payments, again, we're just asking you to to pay
1:08:55
that back, you know, and that payment.
1:08:57
So again, that was the reason why we we did it that way.
1:09:00
Absolutely. So someone's asking in the chat,
1:09:02
is this a Canadian based company?
1:09:05
We were. So we started the company in
1:09:07
Canada. We still have quite a few team
1:09:09
members in Canada, but we had an opportunity to move the business
1:09:12
to the Cayman Islands because they have a really good program
1:09:14
for digital assets in 2023. But we have AUS entity as well,
1:09:18
and we actually have a European entity based in Spain as well.
1:09:21
So as the world's becoming more regulated, we set up local
1:09:24
entities to make sure we meet that regulation. the US entity
1:09:27
we're just in the process of launching.
1:09:29
But depending on where your your domicile, you'll face different
1:09:32
entities within Laden. Amazing, amazing.
1:09:35
Opti. I'm going to pass it on to you
1:09:37
because I know you got questions for Adam.
1:09:39
I do. Well, Adam, thanks for coming
1:09:41
on. And I know one thing that we did
1:09:43
cover earlier, but we didn't really get a lot of time to kind
1:09:46
of bring that back in to Leaden and what you guys are doing.
1:09:49
We just heard that, you know, the Office of Comptroller is
1:09:52
basically allowing banks to custody Bitcoin.
1:09:54
So what does this mean for the Bitcoin space?
1:09:57
And then also, what does this mean for Leaden in particular?
1:10:00
Yeah. So there's two major changes
1:10:02
happening within the US accounting rules.
1:10:03
And one is previously when companies owned Bitcoin, they do
1:10:07
the US gap accounting rules. When the market price change,
1:10:10
they had a market down, but for some crazy reason they didn't
1:10:13
get to market back up. So you can imagine what that
1:10:15
does to the balance sheet is, you know, you know, we're at 107
1:10:18
K, you bought then and then now we're at, you know, 79 K and so
1:10:22
you're only showing it at 79 despite hopefully it'll go back
1:10:25
up again to levels where it was before.
1:10:28
And so you don't get the benefit from that.
1:10:29
So that was the reason the disincentivize companies and you
1:10:32
know, banks as well from owning Bitcoin on their own balance
1:10:35
sheet. The other thing that was
1:10:36
happening was when banks went into custody Bitcoin on behalf
1:10:39
of clients, they actually had to treat it as a full liability and
1:10:43
and collateralize it 1 to one with their own cash.
1:10:46
So imagine trying to make money where you're holding, you know,
1:10:49
billion dollars of Bitcoin on behalf of clients, then you have
1:10:52
to take a billion dollars of your own money and just put it
1:10:54
aside in case you theoretically lose that billion dollars on
1:10:58
behalf of clients. Doesn't make any sense.
1:11:00
Doesn't it's not how banks, you know, I deal with any other
1:11:03
asset class. And of course it would destroy
1:11:05
the economics when they're, you know, maybe earning a couple
1:11:08
basis points or, you know, maybe Max one or two percent on
1:11:11
managing that Bitcoin for clients.
1:11:13
And then they have to have their own capital that maybe is a cost
1:11:16
of, you know, 10%, which are they're trying to get on their
1:11:18
own capital for turns and it destroys their economics.
1:11:21
So these two reasons are the reasons why it has been popular
1:11:24
for financial institutions to offer Bitcoin services.
1:11:27
But we think it's going to happen with those changes is
1:11:29
banks are going to start to offer different financial
1:11:32
services for Bitcoin. And we're, we're excited about
1:11:33
this for Lenin because the space is really, really short dollars.
1:11:37
We think overall, you know, on a market cap of almost 1.6
1:11:40
trillion today for Bitcoin, we think there's only, you know,
1:11:43
one to two, maybe 3 billion of, of retail taking loans with
1:11:48
Bitcoin. So the market is, is really,
1:11:49
really small today when it comes to loans as far as the overall
1:11:53
market cap of Bitcoin. So there's a long way to go and
1:11:56
there's a lot more dollars that need to come in to be able to
1:11:58
finance that. And a comparison that I love
1:12:00
making is if you compare Bitcoin to real estate in the US, 60% of
1:12:05
residential homes have a mortgage on them.
1:12:07
And so I think about that a lot with Bitcoin is imagine if if
1:12:11
the Bitcoin adoption for lending was the same and people started
1:12:13
to borrow more and use their Bitcoin as a savings vehicle and
1:12:16
then accessing financing. Just like you run a line of
1:12:19
credit against your home or home equity line, then you kind of
1:12:22
draw it when you need it. And of course, you're doing that
1:12:24
so you never have to sell your Bitcoin.
1:12:26
So I think, you know, there's a going to be a big change
1:12:28
happening when the broader adoption of, of Bitcoin lending
1:12:32
happens and people can access, you know, a lot more volumes
1:12:35
than they are today. Incredible 11 Quick question on
1:12:38
that before we kind of pivot. Do you think with, you know,
1:12:41
traditional banks coming into Bitcoin that not only will the
1:12:45
the lending Bitcoin space be more competitive, but do you
1:12:49
think that rates would be a lot lower for users as this starts
1:12:52
to kind of, you know, companies start to out compete themselves?
1:12:56
That's exactly it. I mean, the rates today are
1:12:58
quite a bit higher, but really the function of a Bitcoin back
1:13:00
loan is from a risk perspective is not that dissimilar to how
1:13:03
margin financing works. So what are we saying?
1:13:06
I pitch institutional investors and banks all the time.
1:13:08
That's where I spend the majority of, of my efforts, you
1:13:11
know, outside of running the operations at Latin is getting
1:13:14
in front of, you know, different banks saying This is why you
1:13:16
should be in the space. And I say, hey, when I want to
1:13:19
buy Tesla stock, if I'm a, you know, if I have a brokerage
1:13:21
account at your bank, you'll lend me money at, you know, 50
1:13:24
basis points over the treasury yield.
1:13:26
So I can get, you know, 5-6 and six percent money to buy stocks
1:13:30
and stocks, you know, they have windows where they're they're
1:13:32
they're not trading. So you know, Bitcoin is far more
1:13:35
liquid to get than Tesla stock. People talk about the
1:13:38
volatility. Tesla stock has been more
1:13:40
volatile and you've got gap risk.
1:13:42
So you know, you can't trade Tesla stock after hours.
1:13:45
You can't trade it on nights and weekends.
1:13:47
So what happens if, you know, Elon goes off the handle on on
1:13:50
Friday night? You've got to wait, you know,
1:13:51
three days to be able to sell your position Monday morning
1:13:54
versus Bitcoin. You can, you can enter a trade
1:13:57
the next minute. So it's far more liquid.
1:13:59
Those windows reduce the risk dramatically.
1:14:01
And so I think no longer term it should converge.
1:14:04
And we're excited about that. We run a spread business, so I
1:14:07
want the cost of caps to be as low as possible so we can pass
1:14:10
it on to our clients and make sure that more and more people
1:14:12
are interested in boring against Bitcoin because the economics
1:14:14
make more sense for them. Got it.
1:14:17
Awesome. One thing you mentioned, did I
1:14:20
lose Nico? I think I lost Nico one.
1:14:22
One thing you mentioned before you came on the show, which I
1:14:25
found it very interesting and I never really thought about this,
1:14:27
but you said Lenin is increasing the fairness because you guys
1:14:32
are so global. Like what?
1:14:34
What does this mean for people out there?
1:14:36
Like what, what? Or maybe give some context of
1:14:39
how the traditional financial world works right now and how
1:14:42
Lenin is filling that hole. Yeah, So I mean, you know, back
1:14:46
to the comment that Rachel made, I always say like, you know, I'm
1:14:48
Canadian, but I think it's the same in America.
1:14:50
I think there's a lot of people that have never seen the value
1:14:52
of Bitcoin because for the most part they've had a banking
1:14:55
system that's always worked. You know, of course people are
1:14:58
are negative and and brightly so critical about governments, but
1:15:01
there's higher trust of government in the US and say,
1:15:03
you know, a place like Egypt. So if I want to talk to someone
1:15:06
in Egypt about Bitcoin, you know, the conversation is
1:15:08
probably 2 minutes versus trying to convince one of my relatives
1:15:11
in Canada about Bitcoin because, you know, they have high trust
1:15:15
institutions. So the same thing is for for
1:15:18
financial services. Sometimes we offer or or
1:15:21
originate a new client and say market like Columbia, it might
1:15:24
be the first time that they've ever had a loan approved.
1:15:27
And this is amazing building for self-confidence.
1:15:29
It's also obviously helping them, you know, with different
1:15:32
expenses or, you know, things that come up.
1:15:34
But it's massive because what we don't realize is for the most
1:15:37
part, financial services are available for the the wealthier
1:15:40
privileged in markets like Columbia because the property
1:15:44
rights just aren't the same. So, you know, if I want to
1:15:46
access a loan in the US, you know, I can do that fairly
1:15:49
easily, but just the same thing doesn't exist in other markets.
1:15:52
So what we can do is because Bitcoin is the same in Colombia
1:15:56
or in Egypt as it is the same in the USI can create a product
1:16:00
that's exactly the same when it comes to financial services.
1:16:02
So the cost of capital is identical because the risk of
1:16:06
being able to recall that asset is is the same and equal.
1:16:09
So I love this because typically, you know, again, if I
1:16:12
want to compare it to mortgages where there's different property
1:16:15
rights, I have to charge higher rates in in a developing economy
1:16:18
than I do in the US because there's a different risk profile
1:16:22
of the asset that I'm financing. But I love that about Bitcoin
1:16:25
because because we can treat people equal.
1:16:27
We don't care where they're from, where they are, what they
1:16:29
believe in, what the race is. You know everything is the same
1:16:32
because it's just Bitcoin, dude. That's so man, that's so
1:16:35
incredible. I mean that's that's that's
1:16:37
absolutely awesome. I, I love the, the, the tagline
1:16:41
that you guys use too, right, which is able, you're able to
1:16:45
access the, the wealth of your Bitcoin.
1:16:47
And I think that's something that a lot of us Bitcoiners like
1:16:50
find ourselves in. And of course, you have to do
1:16:52
this responsibly, right? Because you know, if, if you're
1:16:56
going 90% of your, of your Bitcoin stack, you put in the
1:16:59
loan, you can find yourself in a very interesting situation
1:17:03
because of the volatility. But if you do it responsibly,
1:17:06
you know, like a percent or something like that, it really
1:17:10
allows you to, you know, I mean, you guys say, we say it every
1:17:14
single day, right? It allows you to tap into your
1:17:17
Bitcoin without having to sell your Bitcoin.
1:17:18
And then also there's no, there's no capital, there's no
1:17:21
capital, there's no tax implications as well, because
1:17:24
it's a loan, right? That's it.
1:17:27
So I, I find that extremely interesting and it's definitely
1:17:30
a tool that you can use in your Bitcoin journey if you choose
1:17:35
to, right? It's it's totally up to you,
1:17:37
right as a, you know, Bitcoin entrepreneur on a different
1:17:40
level on the more media slash podcast side, definitely I found
1:17:44
myself in situations where the company needed money or
1:17:47
something like that. And this is a very, very useful
1:17:50
tool that you can tap into responsibly.
1:17:53
I have to say that multiple times because, you know,
1:17:56
volatility is a thing and these are Bitcoin back.
1:17:59
Loans. So you do have to you do you
1:18:03
have to be responsible because you can get margin called right.
1:18:06
So I, I do want to talk to you about this, Adam.
1:18:09
Like there was so many of these companies that blew up over the
1:18:13
last, you know, I would say was it 3 years, 3 or 4 years that
1:18:18
really like tarnished that Bitcoin backed loan industry.
1:18:23
Like it really gave it a bad name.
1:18:25
Why? Like what?
1:18:27
What? What different approach did you
1:18:29
guys take and. What insurances do people have
1:18:33
right? That if they use the the lead in
1:18:36
product. And how do you guys approach it?
1:18:38
I asked. I asked Maudicio the same
1:18:40
question every single time he comes on the show.
1:18:42
Yeah, Yeah, of course. So I think the important thing
1:18:44
that I like to differentiate is there, there was within all of
1:18:47
these companies the actual Bitcoin backed over
1:18:50
collateralized retail product did did well and had had 0
1:18:53
losses. And we had, you know, Privy to
1:18:55
this because we were able to look at, you know, the assets of
1:18:59
the different companies to, to help them, you know, out of
1:19:01
bankruptcy and look at some of the details.
1:19:04
And it was really the under or uncollateralized loan portfolios
1:19:09
where they were even either lending to uncredible
1:19:13
counterparties, uncredited worthy counterparties, or they
1:19:16
were directly frankly investing and converting, you know, assets
1:19:20
they were paying yield on into different type of asset and
1:19:23
sometimes putting them in illiquid assets.
1:19:25
So it was the yield portfolios of the majority of the crypto
1:19:29
lenders that did poorly where they're offering interest on
1:19:32
different types of crypto assets and then again, not deploying
1:19:35
that responsibly. And a perfect example, you know,
1:19:38
from my understanding, you know, some of the other lenders out
1:19:41
there were converting assets. And so let's say I want to pay
1:19:45
yield on chain link for an example example only.
1:19:48
I might be able to offer 8% on chain link, but then when I want
1:19:51
to lend chain link, the market makers may not need that asset.
1:19:54
So what some of these companies were doing was they were
1:19:56
converting it and saying, OK, well, I can't lend chain link,
1:19:58
but I can lend stables. And so they'd actually convert
1:20:01
the chain link to stables and now they're introducing pricing
1:20:03
risk. So of course, you know if if
1:20:05
chain link price stays the same, they're fine or if it decreases
1:20:08
the fine because they can buy it back.
1:20:10
But if that rallies, now they're short the asset and there's huge
1:20:12
pricing risk in buying that back, then they're taking the
1:20:15
dollars. And again, if you won't lock the
1:20:17
dollars up for. Longer term, you get paid a
1:20:20
higher yield. So again, putting aside risk
1:20:23
management, that's tempting because you know, you can
1:20:25
increase your profits by locking that in.
1:20:27
In some cases, some of these companies were buying mining
1:20:30
equipment. Mining equipment is not liquid.
1:20:32
You know, obviously there's a, you know, fairly long payback
1:20:35
on, on getting that back. And now, of course, now they're
1:20:37
getting paid in Bitcoin instead of taking, you know, the stables
1:20:40
that they lent out. So there's a lot of different
1:20:42
pricing or deal, you know, dislocation there.
1:20:45
Well, that it did was like always really simple stuff.
1:20:48
So at the time of the crypto crisis, we only supported
1:20:51
Bitcoin and stable coins. Since then we've added ETH and
1:20:56
added Tether. But even the ETH thing, the only
1:20:58
reason we added it was actually to support Celsius clients out
1:21:01
of the bankruptcy because they they had a need to convert their
1:21:05
alts into Ethernet. But ether's a very, very small
1:21:08
piece of Lenin's portfolio today, less than 3% of our total
1:21:13
AUM on the platform. So we're we're by by far and
1:21:16
large a pure Bitcoin company. So with that, you know, again,
1:21:21
it was only supporting assets that had true market value,
1:21:24
Bitcoin and stables, not take, you know, taking advantage of
1:21:28
longer tenured. We always say, you know, if you
1:21:30
want to deposit assets with that in the get paid a yield or off
1:21:33
from that open term, we have to make sure that we can fulfill
1:21:36
all those withdrawals if every single client asked for their
1:21:38
money back tomorrow. And so that's what we'd focus on
1:21:41
is only deploying, you know, assets in liquid loans and just
1:21:46
really simple stuff. So you know, how we generate
1:21:48
yields in our yield products today is, you know, for the most
1:21:51
part, very generic market making.
1:21:53
So this is, you know, Bitcoin is higher price trading on
1:21:56
coinbases and Kraken. So arbing those two exchanges
1:21:59
and supporting the ETF. So the ETF actually created an
1:22:02
interesting borrow need for Bitcoin because, you know, if I
1:22:05
show up and I want to buy the BlackRock, I bet, you know,
1:22:08
unit, the ETFI want to see that in my account instantly and
1:22:12
behind the scenes, because we're talking about tratify rails that
1:22:15
doesn't settle instantly. So someone actually has to go
1:22:17
buy that Bitcoin, create the unit, wrap it into an ETF
1:22:21
wrapper and then deposit through compu share and other types of
1:22:24
intermediaries to get that unit into the Wells Fargo or, you
1:22:28
know, JP Morgan account or wherever I bought through.
1:22:31
So that takes a couple days and Bitcoin lending fulfills that
1:22:33
market because it solves that illiquidity between the time I
1:22:38
want to have that unit in my account and the actual, you
1:22:40
know, Bitcoin rails to try that settle instantly versus the
1:22:43
tried fire rails to take a couple days.
1:22:45
So it's that type of stuff that we're doing very, you know,
1:22:48
benign things that we we and that's the reason we're only
1:22:51
paying, you know, a few percentage points on that
1:22:54
because we don't want to take, you know, any significant risk
1:22:57
with client assets, of course. So yeah, it's keeping it simple
1:23:01
like that and making sure that we're not doing crazy stuff and
1:23:05
not getting ahead of ourselves. Gotcha.
1:23:07
And and we have a question in the chat by Anthony.
1:23:09
And again, if you're coming from the traditional world that that
1:23:12
this could definitely it makes sense, right.
1:23:14
So Anthony says what is the qualifications if you don't have
1:23:17
relatively good credit, that's a great question.
1:23:20
You don't need qualifications. It's a Bitcoin back loan.
1:23:23
So you use Bitcoin as the collateral?
1:23:27
You guys don't even ask for credit score.
1:23:29
Right, that's it. And a really interesting point
1:23:31
on this. So we had we, we spoke to a
1:23:33
potential lender last week that could have been one of our
1:23:36
institutional partners and they actually asked, you know, well,
1:23:39
can you start to collect FICO scores in the US?
1:23:41
Because that's the type of credit package that we're used
1:23:43
to. And we'd feel better, you know,
1:23:45
if we had that as a backup to the Bitcoin back loans.
1:23:47
They said no, that that doesn't make sense for our business.
1:23:50
I said, the minute we start doing that, we treat Americans
1:23:52
differently than citizens of other countries.
1:23:55
And that's not the purpose of letting.
1:23:56
The purpose of letting is to make sure we can offer the same
1:23:58
types of rates everywhere and only deal with Bitcoin.
1:24:02
So if you can't get comfortable with Bitcoin as the asset
1:24:04
solely, we're not interested in your capital because that's the
1:24:07
complete and only collateral package that we need to to
1:24:10
provide a loan. Amazing.
1:24:12
Very, very, very, very. Cool.
1:24:13
And I hope that answers your question for anyone.
1:24:16
It's it's a different world, guys.
1:24:17
It's a it's a different world. That's what you guys have to
1:24:20
this. This is what you guys have to
1:24:23
understand, right? Opti, I'm going to pass it on to
1:24:26
you and we are getting close to the top of the hour.
1:24:28
Yeah, Yeah, I think, I think this is a good question from the
1:24:31
chat. And I think this is where a good
1:24:34
place we could wrap it up. So he just says, Ron P, can you
1:24:37
just talk a simple A-Z process of how letting loans work?
1:24:40
And I'll bring up your website as well.
1:24:43
Yeah, I think that's a good place to end it for the audience
1:24:45
here. Of course, really appreciate the
1:24:47
question. So, you know, we have a very
1:24:49
simple sign up process once, once you're signed up, we do
1:24:53
KYC, all of our clients, you know, this is a requirement for
1:24:56
our capital. So we use, you know, very simple
1:25:00
software to do that. You know, if it's, if
1:25:02
everything's there, the KYC process can literally take two
1:25:05
minutes. Once you're KYC, you can apply
1:25:07
for a loan. What you do is just specify the
1:25:09
amount of Fiat you'd like to borrow.
1:25:11
We can do something that's not commonly known as we can
1:25:14
disperse in other types of currencies as well.
1:25:16
So for example, if you're sitting in Mexico and you want
1:25:18
pesos delivered to your account, we can do that for you.
1:25:21
But the loan is always denominated in U.S. dollars and
1:25:25
everything can be done same day. So you apply for the loan as
1:25:28
soon as your Bitcoin is sent, the collateral arrives.
1:25:31
We process the loan and in many cases we process the loan same
1:25:34
day. Our average time to have to to
1:25:37
lend, lend sorry to land money in your account is, is 16 hours.
1:25:42
So we have a really quick turn around, you know, imagine doing
1:25:44
that at the banks. But you know, again, loans can
1:25:47
happen same day or next day, but we're really proud of our
1:25:50
processing times. We have a question in the chat
1:25:52
by Anthony says. What is the minimum amount you
1:25:54
can get with? Would 5K be OK?
1:25:58
Absolutely. So our minimum loan is $500 and
1:26:00
we did this again because we know eight people may want to
1:26:03
test the product before they get comfortable with a bigger loan.
1:26:05
And two, we want to make it accessible to people all over
1:26:07
the world. And of course there's different
1:26:09
income levels depending on the country you're from.
1:26:12
So again, it was that fairness piece that we wanted to start at
1:26:14
that level. So 500 is the minimum.
1:26:16
We have clients that have 20 million board on the platform,
1:26:19
so all shapes and sizes. Incredible, incredible.
1:26:23
All right guys, well, today is March 10th, 2025.
1:26:26
This was simply Bitcoin live. I'm your host Nico, my legendary
1:26:29
Co host today. Optimist fields in the Co host
1:26:31
chair and of course our special guest today, Adam Reed's CEO of
1:26:37
let in guys. Go check out let in dot IO slash
1:26:40
borrowing if you want to find out more.
1:26:42
If you guys enjoyed today's show, make sure to smash that
1:26:45
like button and consider subscribing if you feel like we
1:26:48
provided you value. We'll we'll see you guys.
1:26:50
On the next one, peace out everybody.
1:26:53
Today's episode was brought to you by bitcoinwell.com, a
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1:27:00
independence.