Latest / Simply Bitcoin / INSIDER EXPOSES 2.85M Bitcoin Supply Shock In 2025! | EP 1270

Transcript

INSIDER EXPOSES 2.85M Bitcoin Supply Shock In 2025! | EP 1270 · Simply Bitcoin

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  Yo the world's largest Bitcoin index fund just exposed why 2.8
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  million Bitcoin will be bought before the end of 2025.
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  Also it's really crazy is that there's only 165,000 Bitcoin yet
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  to be mined this year. So you guys just do a little bit
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  of quick math in your head. All this demand $2.8 million in
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  bit 2.8 million Bitcoin wanting to be bought, but there's only
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  only 165,000 Bitcoin yet to be mined this year.
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  I mean it's it's it's it's easy math.
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  So who are these new whales and when will this supply shock
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  finally trigger this infamous or this famous, depending on how
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  you look at it, the Omega candle that has been coined by of
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  course, the one and only Samson Mao.
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  Anyways, we have some clips repaired for you guys from
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  person on the clip. It's Matt Hogan from Bitwise.
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  Matt Hogan from bitwise and he's covering all these topic.
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  It's it's quite interesting. And also we have a special guest
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  and a friend of the show. We have Mauricio, the Co founder
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  of Lenin. We're going to be talking about
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  all things Bitcoin loans during the culture segment.
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  So you guys are going to want to stay tuned.
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  Let's check out the clip and then we shall talk about it.
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  If you look at the supply demand characteristics of Bitcoin right
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  now, I hate to be really simple, but the amount of new Bitcoin
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  being produced next year is 164,250 and we think ETFs will
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  buy half a million, corporations will buy 350,000 and governments
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  will buy between somewhere between 0 and 2 million Bitcoin.
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  So far on a year to date basis through March 6, this is what's
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  happened. There's been 57,000 new Bitcoin
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  produced, ETF's have bought all of it and then corporations have
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  bought another 3X and I think governments have bought about
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  40,000 Bitcoin as well. So clearly there's not enough
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  Bitcoin to go around, which is, I mean, we've been saying that
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  for many, many years now. But someone in the crowd was
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  impatient like I am. And I was like, OK, fine.
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  You know, we're seeing all these numbers, we're seeing all this
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  demand, we're seeing all these people, these ETF, all these
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  institutions, all these countries, you know, they all
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  want to buy Bitcoin. But like when number go up, when
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  are we going to get this Omega candle?
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  Someone in the crowd actually asked him that question.
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  Check out what he had to say. Given all the demand you just
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  outlined for Bitcoin that you see.
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  And then your your target for end of year, yeah.
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  Do you, what do you think is most likely in terms of the way
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  it gets there, right? Are we going to see these Omega
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  candles where Bitcoin goes from 100 to 125 overnight?
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  Yes. Or what do you think about that?
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  Yeah. I think that's exactly right.
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  I think they're air gaps because I do think the selling is
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  behaviorally driven. I think that's the only rational
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  explanation for why it's essentially treaded sideways and
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  then ripped and treaded sideways 72K and 100K.
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  So I think it's behaviorally driven.
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  What that means to me is once it releases its it's Tether, which
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  is an unfortunate word in crypto.
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  Once it releases its connection to 100K and it gets above that
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  gravity, I do think it probably rips up to like 125 K.
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  So I I think it's going to be a punctuated equilibrium of fast
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  moves and sideways movements as it sort of burns through these
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  behavioral reserves. Yeah, I guess that's that's my
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  answer. That's right.
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  So again, kind of laying out the case like, you know, he's making
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  the case that, you know, there's not enough Bitcoin to go around.
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  There's almost 3,000,000 Bitcoin that institutions wanna buy.
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  There's only 165,000 Bitcoin left to be mined this year,
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  right? You can't change that number.
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  In fact, the halving make sure that that number gets halved
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  every four years or so. And, you know, someone in the
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  crowd couldn't contain himself. Like I felt like I was, I was in
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  that crowd. I felt like, you know, that
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  person was embodying the Nikko spirit.
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  It was there. And I was like, OK, man, with
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  all these crazy numbers, like when Omega candle and you know,
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  Matt Hogan, the chatty it, he's like, Oh yeah, we're getting an
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  Omega candle. We're going straight from 100K
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  to 125K. Now.
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  I want to pass it on to Mauricio.
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  Mauricio, do you agree with him? Do you think it's like these
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  kind of psychological barriers that, you know, like really kind
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  of make up these Bitcoin price points?
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  Cause we've been kind of situating around the 100K
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  region. Do you really, do you really
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  believe it's all psychological? Like, do you really believe it's
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  just the sticker, the sticker price that, you know, goes into
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  kind of the psychology behind a lot of these Bitcoin price
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  milestones? Yes.
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  Thanks guys. Lovely to be here as always.
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  And I actually been waiting for an opportunity to take this one
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  out. But hey, you want an Omega
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  candle? I have an Omega candle.
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  It's right here. Thank you.
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  Thank you. Jan 3 or Jan 3rd.
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  So I would, I would have to say I agree with Matt's assessment
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  as to why we are trading in the way that we are trading.
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  First of all, I will say that Bitcoin hanging in over 100K as
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  the world is literally on fire is a huge testament to the
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  staying power of this asset class.
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  I, I think all of us should be in awe at how Bitcoin has
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  handled the most recent wave of geopolitical conflict.
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  And I think it shows that Bitcoin is doing what it's
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  supposed to be doing. So if if you know, people in
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  places like Iran, Israel, all these people right now are
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  gravitating to Bitcoin and stablecoins because it's the
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  only thing that works for them right now.
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  And you're seeing time and again Bitcoin function as it should in
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  the places where it should. So I think this is hugely
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  positive for Bitcoin to see the price action we're seeing today
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  on in the context of geopolitical issues we're seeing
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  now in the context of all this buying demand that we've seen
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  announced by ETPSETFS, Bitcoin acquisition vehicles,
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  government. And why is Bitcoin not, you
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  know, ripping through 100 Ki? Think a couple of things that
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  are important to consider is that #1 this new type of buyer
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  is a professional buyer. These people are professional
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  investors, whether that is a corporate people jumping into
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  the ETFs or governments. We are now in a very different
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  realm of buyers versus the guy that found out Bitcoin at their
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  barbershop or, you know, through speaking to a friend at a meet
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  up and then went and bought some.
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  The people that are buying Bitcoin right now are in the
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  spotlight. So they're they're under
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  scrutiny for these transactions and this these positions, right.
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  If you're, if you're an acquisition vehicle or a
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  publicly traded company, you're at the mercy of your
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  shareholders. So you want to show your
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  shareholders that you're buying Bitcoin at good, fair prices and
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  you're doing, you know, you're doing a good job at at sort of
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  tracking that. Nobody wants to be the Bitcoin
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  acquisition vehicle that was known for you know, market
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  buying the top and then a war happened and they basically had
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  a a negative mark the market on that position.
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  So what I expect that we will see or continue to see is that a
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  lot of these funds that have been raised by these acquisition
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  vehicles have not been directly deployed into the market today.
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  I think a big reason for this is that Bitcoin has been hovering
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  very close to its all time highs.
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  As Matt mentioned, around this hundred 110 mark hasn't really
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  gone down below 100. And what I think these what I
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  think we're going to see is the drops Bitcoin price or the dips
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  are going to keep getting absorbed faster and faster
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  because these professional buyers will see any good
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  opportunity to start putting on that position.
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  And whenever they are seeing it get close to 100 or under 100,
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  that's where they want to start buying.
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  So that when Bitcoin goes to 125, they come out and they say
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  to the market, look, we're up, right?
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  We weren't the guys that bought at 1:25 and then it stayed there
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  were graded, you know, grinded down back to 100.
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  So I think a lot of this is the person or the, the new sort of
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  war chests that have been built to buy Bitcoin aren't going to
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  be deployed on market buy orders that are going to RIP Bitcoin
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  from 1:00 to 1:25. Nobody wants to be that treasury
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  company that comes out and says we bought the absolute top.
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  Michael Saylor can get away with that because he has an average
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  cost that's much lower. He started buying a 20K, so he
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  still looks like a hero. But if you're an acquisition
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  company that's coming out and your first three buys were over
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  100 a 110, you literally bought the top and Bitcoin didn't do
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  anything in six months. All of a sudden your
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  shareholders are asking questions in Q4.
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  And so I think that that's going to change the price dynamic that
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  we've been used to for the last, you know, couple of years.
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  And I think you're going to see a lot less downside volatility
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  for Bitcoin. I think the upside volatility
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  for Bitcoin is largely going to come from a most likely from,
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  from some, some sort of short squeeze event, whether that is
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  someone like Chanos, you know, trying to short MicroStrategy
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  and go along Bitcoin. And then they have to
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  essentially unwind that position or take a short on Bitcoin to go
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  along the futures or some some type of pair stray that that
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  basically doesn't work out. And then when you're covering
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  that short, your market buying that Bitcoin, which is what
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  takes us eventually higher. So market sells or market buy
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  orders is what drives the the book higher.
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  A lot of these new acquisition vehicles are not doing market
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  buy orders. They're doing limit buy orders.
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  And they're doing these in a way that the market almost has a
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  very hard time figuring out that they're buying because nobody if
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  they, if they know or if the market knows a big buy is
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  coming, they'll try to front run it.
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  And so these types of new buyers are very, very sophisticated and
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  that's going to lead to a very different price action.
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  And I think, you know, people talk about Max Payne, you know,
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  what's what's Max Payne. I think Max Payne is actually
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  Bitcoin grinding slowly higher, just churning slowly higher from
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  here till the end of the year to get to this sort of one 25130
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  without rips to the up or to the downside like we've been used
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  to. A pause there.
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  Yeah. And and it makes perfect sense
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  to Mauricio. And by the way, it it's, it
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  reminds me of something that. Yeah, I was gonna say the same
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  thing. Have you seen this, Mauricio?
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  I, I, I saw it, I didn't pay too much attention to it, but the,
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  the sort of grind higher meme or this grand grind higher
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  narrative is something that I've, I've sort of discussed in
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  private with a lot of other smart people And they, they seem
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  to, you know, have similar views to me.
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  So I'm not surprised to to see this.
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  Yeah. And and you know, people call it
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  the Brad Mills calls it specifically, he calls it the
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  Sailor cycle. And essentially it's exactly
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  what you said exactly word for word what you said, right,
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  limited kind of downward volatility, but the upside is
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  still there. But it's kind of like this,
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  like, you know, this choppy line up and to the right, but like
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  more choppy instead of those like kind of catastrophic, you
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  know, meltdowns that we've had in previous cycles.
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  And your your theory of the case for this, Mauricio, is that, you
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  know, the chasm has been caught crossed.
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  The ETFs change the game, the Bitcoin treasury companies
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  change the game. Wall Street entering the scene
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  has changed the game fundamentally for Bitcoin.
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  This is no longer retail driven, by the way.
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  This is data-driven as well, too.
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  If you go look at Google trends, we still haven't surpassed.
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  Oh, we're on the front page of Rumbles.
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  Shout out to the Rumble. Shout out to Rumble Smash the
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  like one of you guys are enjoying the show.
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  But yeah, so this is what you're making the case for is
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  essentially that, you know, the days of the days of this being
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  kind of like this speculative retail driven bubble are over
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  and it's Bitcoin has basically grown up now.
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  Yes, and it's not so much bitcoins grown up.
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  The buyer of Bitcoin has grown up.
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  Thus the guy holding Bitcoin in their portfolio has grown up.
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  It's not just me, you and Opti. It's now governments, it's now
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  Tesla, it's now giant corporations, it's now
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  MicroStrategy. It's Paul Tudor Jones.
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  It's Tim Cook, Right. It's it's these people have very
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  different, they're very different points of their lives.
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  They, you know, a lot of these investors are gonna be put in a
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  crunch if Bitcoin's down 10%. A lot of these guys aren't
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  taking excessive leverage. And when they're doing leverage,
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  they're using it very responsibly.
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  So they're far, far away from a potential liquidation event.
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  So what used to take us into these massive up and down moves
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  was #1 we used to get these like wave of buyers every time there
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  was a big announcement. So remember when Tesla first
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  announced they were buying Bitcoin and when Michael first
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  announced that he had bought some Bitcoin, you had this
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  massive wave of new buyers. And the order books on the
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  sellers were very thin. So that would drive us higher.
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  And there would typically be people who were short Bitcoin
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  for speculative reasons or whatever.
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  And these shorts were the guys that are basically having to
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  cover those, those positions getting liquidated on the way up
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  would drive us higher. So there was a lot of leverage
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  on both sides of the house. And the order books were so thin
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  that the amount of leverage relative to the, to the capacity
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  of the order books used to run up the book on the way up from
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  shorts getting liquidated. And when people accumulated a
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  lot of leverage on the way up, a, a, a down price move would be
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  the spark that would trigger another massive wave of
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  liquidations on the way down because speculators again were
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  over leveraged and there was just not enough bid on the book
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  to hold the price. Right now the books are much
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  beefier. You know, a, a Bitcoin book
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  right now could probably offer, you know, billions of dollars in
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  buying demand until we hit 100K. And similarly, you know, on the
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  sell side, you'll, you'll be able to sell billions of dollars
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  and, and sort of keep Bitcoin or buy billions of dollars and keep
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  keep Bitcoin contained within 110 K.
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  This wasn't the case before. So I would say the depth of the
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  buyers and the sellers has gotten bigger.
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  The amount of leverage actually hasn't materially gone up.
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  If you look at the leverage levels that we had in 2021 and
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  until today, we're still at around half of the leverage.
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  And mind you, the Galaxy report doesn't encompass all types of
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  leverage by way of options or leverage ETFs and things like
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  that. There's pockets of leverage that
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  don't come up in this report, but I would argue that broadly
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  speaking, the levels of leverage we're seeing today are still far
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  below what there was in the market in 2021.
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  And not only that, but the leverage that is in the system
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  is being used a lot more responsibly than it was in the
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  past. I'll give you an interesting
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  data point. We saw already this year 30 plus
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  downward moves from from 100 and some K down to 70K.
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  I'd let in less than half of 1% of our book was impacted by
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  liquidations. Mathematically speaking, a lot
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  of people would have been impacted if they have if they
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  were using leverage by a 30% down move.
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  But in our case, people plan and know how to act.
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  They understand these products a lot better and none of nobody
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  wants to get liquidated when they come to let end.
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  We don't want to liquidate anyone at all, but it has to
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  happen because these are the protections we have for a
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  Bitcoin secured loan. That said, people understand
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  this and they are planning better as they're coming into
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  the position because they know if it market goes down, they'll
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  have to add more Bitcoin and they have a trigger trigger
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  ready and they're topping up their loads and they're not
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  getting liquidated. So no liquidations means less
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  pressure down on the order books, which I think is again,
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  why we're going to see this this volatility compress and compress
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  over time. And by the way, even if you want
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  to go back to sort of textbook economics, this is what Bitcoin
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  should be doing. Bitcoin's volatility long term
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  should be much closer to gold. When was the last time you had
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  anyone talking about how volatile gold is?
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  You know, gold is boring. And eventually Bitcoin's
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  volatility should be something that none of us really have to
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  think about that much. It should be in the background.
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  Nobody's really, you know, worried about the volatility of
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  gold today. And I think that will be true
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  for Bitcoin too. And it's and some I see someone
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  in the in the comments like, do you, do you like is, is Bitcoin
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  boring? Is, is, is it, is it over or do
• 16:47
  we still have another, you know, 5 to 10 years of, you know,
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  potential, you know, up upside volatility?
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  Because I think that was some of the concerns in the chat.
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  I boring is good, especially when you're talking about your
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  savings, right? Like if you have your wealth in
• 17:07
  an asset, wouldn't you want the value of your wealth to be
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  somewhat predictable and less volatile?
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  This is why people love gold, right?
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  And I, I don't think that like, listen just to, you know, to,
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  to, to make it abundantly clear, being boring doesn't mean we're
• 17:25
  going to stop going higher, OK? Like the, the reason Bitcoin
• 17:28
  continues to go higher is because it monetizes the
• 17:31
  debasement and inefficiency of government spending.
• 17:33
  That's not changing anytime soon, OK?
• 17:35
  We're, we're gonna continue accruing value at the pace that
• 17:39
  these people are printing currency and mismanagement,
• 17:41
  mismanaging their economies. That's, that's a very, you know,
• 17:45
  I would argue plus -15 to 10 to 15 to 20%, depending on what
• 17:50
  part of the world you're in. And whether we get there in sort
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  of a straight, you know, 1% per month to get to 12% combined, or
• 17:58
  we do 25% up, 10% down, another 30% up.
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  And we wound up at the same place for investors, it's it's
• 18:06
  actually a lot better if that can be more more predictable
• 18:09
  because it allows you to do more long term planning.
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  Imagine if I was able to offer you a, you know, a longer term
• 18:18
  on your Bitcoin back loan or more, more sort of visibility.
• 18:22
  If you wanted to have a, a, a hedge position two or three
• 18:25
  years out like that starts building this, this yield curve
• 18:31
  or this maturity curve around Bitcoin financial products and
• 18:33
  Bitcoin finance that allows us to start using Bitcoin for more
• 18:37
  and more long term planning things.
• 18:39
  My loans are termed out for a year, so my rate's fixed for a
• 18:43
  year. If I was able to fix a rate for
• 18:45
  a client for five years or three years, that person would have a
• 18:49
  lot more visibility into their cash flows and may be able to
• 18:52
  use that Bitcoin as collateral for for a longer term project
• 18:56
  without having to worry about, you know that the risk of that
• 18:58
  interest rate changing. So less volatility means more
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  ability and more visibility to long term planning.
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  We are time preference people. We should all welcome that.
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  Absolutely. I think it's a really good
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  point. I think, and I think you're
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  describing exactly what's happening in the markets today.
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  Bitcoin has grown up, you know, Bitcoin is an established
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  player. Bitcoin is being treated
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  seriously by governments, by institutions, by Wall Street.
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  And you're making the case, Mauricio, that that is a good
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  thing that allows more serious players to come in, that allows
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  you as a business owner to offer more products regarding lending.
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  And what I will say is, you know, even though the, the
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  volatility might be lower, fundamentally you're, you're, if
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  we take a look at Sailor's prediction, right, you're still
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  looking at a 30% CAGAR for the next 20 years, right?
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  So, I mean, that is absolutely, you know, absurd, right?
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  And compound compound interest is a, is that's like literally
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  how Warren Buffett got so wealthy, right?
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  Is, you know, compound interest, right?
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  So, you know, imagine compounding 30% year over year
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  for the next 10 years. I, I don't know what the math is
• 20:23
  on that. I don't know, Opti, if you want
• 20:24
  to pull that up, but you know that that's still an incredible
• 20:28
  investment in my opinion. Yeah.
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  And I, I think there's a, there's perhaps a misconception
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  because I think we're conflating to, to a concept we're, we're
• 20:37
  conflating the accrual or the sort of appreciation of Bitcoin.
• 20:43
  And Bitcoin can appreciate that there can be two things can be
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  true. Bitcoin can appreciate a 30%
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  year over year and Bitcoin's volatility is down.
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  Those two things can be true at once because it's not
• 20:55
  necessarily how high you go is what is the process or The
• 20:59
  Walking path through which you get to that 30% return over the
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  years. It like I said, you know, you
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  can have an asset that goes up, you know, let's just say just to
• 21:10
  keep the numbers easy, if, if the asset wants to, an asset can
• 21:14
  go up 24% over the course of a year and it can do so by doing
• 21:17
  2% each month, boom, boom, boom, boom predictably.
• 21:19
  So then you go and you're up 24%.
• 21:21
  You can also get the 24% up if you go up 50, down 50, up 50,
• 21:26
  down 50, up 50, down 50 and then the last month you go up 24.
• 21:29
  And so the the second path would have much more volatility,
• 21:34
  right. The first they will both get you
• 21:36
  to the same end point, but one path would have a lot more
• 21:39
  volatility than the other. And I would argue that
• 21:43
  volatility is a function of the depth of buying demand, selling
• 21:47
  demand, the size of the asset itself and the and the sort of
• 21:52
  financial instruments that are available to hedge that
• 21:55
  volatility. As Bitcoin becomes bigger as an
• 21:58
  asset, it takes more money to move the asset in price, right?
• 22:02
  It takes, it takes bigger sell orders to move it down.
• 22:04
  It takes bigger buy orders to bring it higher.
• 22:06
  And so as the asset becomes bigger, the flows you need to
• 22:10
  cause a dent on the price become much bigger.
• 22:13
  So that in itself acts as a massive shield.
• 22:15
  Then we have options markets that are out around the ETFs
• 22:18
  where people can sell volatility and buy volatility.
• 22:21
  What that does is it tends to compress the realized volatility
• 22:24
  in the spot markets. So Bitcoin to me is doing
• 22:28
  exactly what it should be doing, right?
• 22:30
  My my evolution of Bitcoin was it would trade first like a tech
• 22:34
  stock. It you know, from you know, it
• 22:36
  would trek probably something close to NVIDIA at the
• 22:38
  beginning. Then it would start moving
• 22:40
  closer to like a tech index, something like a NASDAQ.
• 22:43
  Then it would move slightly less beta or, or more boring.
• 22:47
  So it would move a little more like the S&P 500.
• 22:50
  And eventually at its at this end state, it should trade a lot
• 22:53
  like gold. And I think we're walking that
• 22:55
  path almost textbook. Yeah, absolutely.
• 22:58
  And and I do want to give a shout out to the live stream
• 23:01
  1700 live viewers across YouTube and X And I want to give a shout
• 23:05
  out to the rumble stream coming in hot 300 people watching live
• 23:10
  on Rumble and the numbers just keep going up.
• 23:12
  If you guys are enjoying simply Bitcoin live, make sure to smash
• 23:15
  that like button. We got Mauricio, the cofounder
• 23:19
  of Leaden, the best Bitcoin lending platform in the world.
• 23:23
  I might be a little bit biased here.
• 23:25
  Maybe it's that Venezuelan connection, but no monthly
• 23:28
  payments, baby. So we're going to be talking
• 23:31
  about that during the culture segment.
• 23:32
  Anyways, I had Opti look up the monthly Kegar of, of what that
• 23:39
  of essentially what this would be just to you know, 'cause
• 23:42
  like, you know, guys like Bitcoin is maturing, OK, You
• 23:45
  know, make this crazy upside the the crazy, you know, crazy
• 23:50
  volatility, whatever. But still, I mean, the
• 23:52
  opportunity is ridiculous. So this is just using Michael
• 23:56
  Saylor's base case, right? So you have a 30% K guard for 20
• 24:01
  years. Your initial if you invest
• 24:04
  $100,000, you end up with how much?
• 24:07
  I believe this says 22 million hold on 123123.
• 24:11
  Yeah, 22 million. $22 million for $100,000 investment in 22 in
• 24:18
  in 20 years. I mean, that's crazy.
• 24:20
  That would put you in the ultra high net worth category.
• 24:24
  You know, that's not too shabby, right?
• 24:26
  So, yeah, I mean, guys, there's still tremendous amount of of
• 24:30
  opportunity here, but you have to take what Marici was saying
• 24:34
  that kind of like this low time preference type of outlook.
• 24:38
  And yeah, it's still extremely exciting times.
• 24:41
  I still think the the end of this year is gonna be very
• 24:43
  exciting. We have some videos from What'd
• 24:46
  You Pull Up? Not just a comment.
• 24:48
  I, I, I'm I was more responding to the fact that Niko's been
• 24:52
  bearish this whole time and I've been consistent on the idea that
• 24:55
  this end of the year is gonna be good.
• 24:56
  And now he's just stealing my meme.
• 24:58
  OK, so hold on. No, wait, wait, wait.
• 25:01
  Before you go on Nico, there is one thing I do want to mention
• 25:04
  about that clip that I, I found pretty interesting, obviously
• 25:07
  speculating about who's going to buy Bitcoin.
• 25:09
  But the one thing he kind of slipped in at the end is he's
• 25:13
  like, I think nation states have bought 40,000 Bitcoin.
• 25:17
  Obviously, I don't know what his data is where he's looking at
• 25:20
  that, but that I think would fundamentally change the game
• 25:23
  right now for all of the the narratives and news around.
• 25:26
  Obviously we've been talking about the US getting into
• 25:28
  Bitcoin, strategic Bitcoin reserve, everyone around we've
• 25:31
  been talking about where is the audit bro?
• 25:33
  Where is the US Bitcoin that we supposedly hold?
• 25:36
  It would be interesting to see if he had some data or maybe
• 25:40
  some inside, you know, inside baseball on that or if that's
• 25:42
  also a speculation. Of course, this whole thing was
• 25:45
  kind of speculations, but Mauricio there, there actually
• 25:49
  been a couple of good comments in the chat saying a similar
• 25:51
  thing and maybe you have some more, you know, insider view of
• 25:55
  what's going on. So everyone was wondering, where
• 25:57
  are these corporations and ETFs getting this big Bitcoin?
• 26:00
  Is this simply from OTC desk? They're obviously not buying
• 26:03
  from the open markets. You have any idea on this 'cause
• 26:07
  I would say it's OTC desk but I'm guessing there's other ways
• 26:09
  to make this happen. Yeah.
• 26:12
  So typically when these corporations are making a
• 26:16
  transaction of this size, they don't, you know, they don't,
• 26:18
  they don't log into Coinbase or or whatever and open an account
• 26:21
  and, and, and place the trade, right.
• 26:23
  They, they, they use what's called prime brokers.
• 26:26
  And prime brokers are groups that are designed to be so for
• 26:32
  example, like if a, if an individual wants to buy, you
• 26:35
  know, $1,000,000 worth of Bitcoin, you can go to whatever,
• 26:39
  whatever exchange, Kraken, whatever is that you're most
• 26:42
  comfortable with, river, whatever.
• 26:44
  And you just place your order and you'll buy it.
• 26:46
  And there's no real concern that you will move the market or that
• 26:50
  anyone's going to try to front run your order such that you get
• 26:53
  a higher price. And by what I mean by front
• 26:55
  running an order, by the way, is let's just say for argument's
• 26:58
  sake that all of us here, you know, people hearing this learn
• 27:01
  that, you know, on June 22nd at 3:00 PM, the government of X
• 27:07
  country is going to buy $10 billion worth of Bitcoin.
• 27:11
  What do you think that would do to the market, right?
• 27:14
  Everybody would be buying Bitcoin today thinking, OK,
• 27:17
  these guys are going to buy, I'm going to buy today and I'm going
• 27:20
  to sell this Bitcoin to them at a higher price because there's
• 27:23
  just not that many Bitcoin out there.
• 27:25
  And if you try to buy it all at once, it's going to drive the
• 27:27
  price higher and I'm going to make a buck.
• 27:29
  And so when you do that, that's considered front running.
• 27:31
  So when a person is looking to make a large transaction that
• 27:35
  could move the market, they one need to be pretty secretive
• 27:41
  about it if they don't want to put that signal out into the
• 27:44
  market and and allow other players to sort of position
• 27:47
  themselves to benefit from that upcoming order, whether that's a
• 27:50
  buy or a sell. So what you do is you end up
• 27:52
  going to these prime brokers. And what these prime brokers do
• 27:55
  is they have inner, you know, interconnectivity to a plethora
• 27:58
  of exchanges that have deep liquidity.
• 28:01
  They also have deals with private flow.
• 28:03
  So these could be miners that have, you know, a projected
• 28:07
  income of Bitcoin that they need to sell every month.
• 28:10
  And they don't want to also go and sell that in the open market
• 28:13
  for similar reasons. So they will sit there and they
• 28:15
  will say, OK, if you want to buy $10 billion, I think the best
• 28:19
  way to do that without moving the market is we plan that
• 28:22
  purchase across 2-3 weeks. We will buy within these bands.
• 28:26
  And you know, we'll work to try to get you a, an overall closing
• 28:30
  price of X, right? And so you try to do this
• 28:32
  without leaving any trails in the market that you're out
• 28:36
  buying massive amounts of Bitcoin because you don't want
• 28:38
  people to, to do that. So you won't be, you won't be
• 28:40
  placing a big market order at this exchange.
• 28:42
  You'll be placing a little order here, a little order further
• 28:44
  there. You'll block, you'll take off a
• 28:46
  big block from a minor. You'll continue scooping them up
• 28:49
  from, you know, individual investors.
• 28:50
  You might want to do that privately so it never hits the
• 28:52
  order books. So they have many, many ways of
• 28:55
  doing this that aren't necessarily reflected in the
• 28:58
  order book. And by the way, by design, these
• 29:01
  transactions are not supposed to move the price in the market.
• 29:04
  By design, if you went out and you gave your order to a prime
• 29:07
  broker to buy $10 billion and that and, and you know, the next
• 29:10
  day you woke up and the market was 20% higher and you got a
• 29:13
  fill at the top of the market, you'll never go back to that
• 29:16
  prime broker. So, so that's just a little bit
• 29:19
  of the dynamics of how these purchases are made And and I
• 29:22
  think a lot of that feeds into the price section we're seeing
• 29:25
  today. It's, it's completely
• 29:27
  fascinating and, and Modisa appreciate you explaining that
• 29:30
  using your experience. You know, it just like the, the,
• 29:34
  the, it's such a different type of behavior compared to retail.
• 29:37
  The retail is kind of like this mania, you know, that you get in
• 29:42
  an Uber, they're talking to you about it, you know, and it just
• 29:45
  like, you know, it ends up in this parabolic wave.
• 29:48
  But what you're seeing is this strategic purchasing.
• 29:52
  I remember hearing Michael Saylor on podcast like, and he
• 29:55
  would say like, look like, I would make sure to just buy a
• 29:58
  little bit everyday just to, to make sure that people would have
• 30:01
  no idea what's happening, the purchases that are happening in
• 30:05
  the background. But as you mentioned earlier,
• 30:08
  you buried the lead there earlier and I want to go back to
• 30:10
  it. You said eventually there is
• 30:12
  going to be some type of catalyst.
• 30:14
  Eventually there is going to be some type of supply shock where
• 30:18
  these prime brokers are going to say, listen, guys, I, I just
• 30:21
  don't have any more Bitcoin to send sell, sell to you guys.
• 30:25
  And then, you know, rocket ship, get on board.
• 30:30
  No, well, and that's typically what happens, right?
• 30:32
  Like I'll, I'll give you an example, right?
• 30:36
  These these professional buyers, right?
• 30:38
  Like when are Bitcoin books the thinnest over the weekends?
• 30:42
  OK, that's no surprise. Everybody here knows that all
• 30:45
  these crazy moves typically happen at 4:00 PM on a Friday.
• 30:47
  Everybody that's been in this space has, has final witness a
• 30:51
  sort of Omega candle or a death candle sometime on a Sunday or
• 30:55
  sometime on a Saturday. And that is typically because
• 30:58
  sometimes, you know, the universe or the stars align in
• 31:01
  that you'll have a person that needs to make a transaction that
• 31:05
  doesn't have the luxury of being able to wait.
• 31:07
  They need to do it. It's sort of a forced
• 31:09
  liquidation or some type of event that that they, you know,
• 31:12
  they don't have a lot of control over.
• 31:14
  And you end up dumping this massive order either on the buy
• 31:17
  side or the sell side into very thin order books over the
• 31:20
  weekend. And what that happens or what
• 31:21
  what happens after is price just sort of skims higher because
• 31:25
  there was just not enough depth in the book on the way up or on
• 31:28
  the way down skims lower. And we open up a Monday or we
• 31:32
  open up a Tuesday where everybody's the professional
• 31:34
  traders are back on their desk. And then you see a sort of
• 31:36
  reversion to the mean. So like, oh, if it, if I haven't
• 31:39
  gone up over the weekend, it it comes back down.
• 31:41
  If it got down over the weekend, it comes back up.
• 31:43
  But that's because you have professional traders back on
• 31:46
  their desks on Monday and the volumes traded on Bitcoin and
• 31:49
  every market typically are highest during US trading hours.
• 31:53
  So what you will, what you will see likely.
• 31:56
  And again, this could come from any combination of factors or
• 32:00
  people or things, right? Like I, I see a world where, for
• 32:04
  example, Bitcoin continues to trade sideways and some
• 32:07
  speculators and some, some retail speculators start taking
• 32:10
  short positions on Bitcoin for whatever reason, right?
• 32:13
  They they want to be short Bitcoin long an an acquisition
• 32:16
  company or short Bitcoin some some other type of pairs trade
• 32:19
  right. Eventually, when those
• 32:22
  dislocations break, I think the first people that are going to
• 32:26
  need to run for cover are the people that have that short
• 32:29
  Bitcoin leg. And why I bring up these shorts
• 32:31
  is because shorts when you are shorts can get liquidated in the
• 32:35
  same way long as can. So in the same manner that when
• 32:38
  you buy Bitcoin with leverage and the price goes down, your,
• 32:40
  your your risk liquidation. When you short Bitcoin and the
• 32:43
  price goes up, you risk liquidation.
• 32:46
  Why are liquidations so relevant to price moves both on the
• 32:49
  upside and on the downside? Because liquidations are force
• 32:52
  market orders. So a liquid liquidation is a
• 32:55
  market buy or a market sell order to cover a position that a
• 33:00
  trader had taken and didn't work out.
• 33:02
  Okay. And so when you're, when you're
• 33:05
  market orders are the orders that drive them prices higher or
• 33:09
  lower limit orders, they don't do anything.
• 33:11
  They just sit there waiting to be filled.
• 33:13
  And when the market gets there, the transaction becomes, you
• 33:16
  know, it completes. But market sell orders say I'm
• 33:19
  buying at whatever price is available because I need to
• 33:22
  close this position. And so when you send a market
• 33:24
  order, it takes however much you can from the first price, then
• 33:26
  it goes to the second price or the third price and then it runs
• 33:28
  the book higher. So it's market orders, the ones
• 33:32
  that move the market and the price.
• 33:35
  Market orders are a lot more common among liquidations or
• 33:40
  unsophisticated investors. And I would argue that we're
• 33:44
  going to have a wave of market orders, whether that is, you
• 33:48
  know, some big names like I'll give you an example, the, you
• 33:50
  know, the United States announced they're going to go
• 33:52
  buy out, buy some Bitcoin, right?
• 33:54
  That might be announced on a Friday and then that might
• 33:56
  create a wave of retail interest over the weekend.
• 33:59
  That means Monday we're going to wake up with one of these guys.
• 34:03
  And so that's, that's the, the, the point that I'm trying to
• 34:06
  make and how I I see this playing out.
• 34:13
  I agree with you. I definitely see the change in
• 34:17
  in market behavior and yeah, it's Bitcoins grown up and I
• 34:23
  would say that's a good thing. I think and we're gonna explore
• 34:26
  this topic further during the culture segment.
• 34:28
  I think what you're gonna be able to do with your spot
• 34:32
  Bitcoin in self custody and how you're gonna be able to fully,
• 34:37
  fully utilize that in order to cause again, like the whole
• 34:41
  point of all this guys is and and Mauricio is going to break
• 34:44
  this down later is Bitcoin is pristine capital.
• 34:48
  I mean, sorry, pristine collateral.
• 34:50
  It is pristine capital, but it is pristine collateral.
• 34:53
  And I think that there's going to be a whole, you know,
• 34:57
  spectrum of products that are going to be built around this.
• 35:00
  And I'm sure you guys over at lead and are, are, are thinking
• 35:03
  about this deeply, right? So it's, it's really exciting
• 35:07
  guys, you're gonna, you're heading into a future where you
• 35:09
  won't have to sell your Bitcoin. That's the whole point, right?
• 35:13
  But you can still tap in to the wealth of your Bitcoin Bom, Bing
• 35:16
  bom boom. So used to saying it at this
• 35:18
  point. Anyways, guys, it's gonna be a
• 35:19
  hell of a show. We have, we have so many things
• 35:23
  to cover. We're we have a, a, a video of I
• 35:27
  think it's Kathy Wood. She's talking about $1.5 million
• 35:31
  Bitcoin. Then who's this other lady?
• 35:32
  Where's she from? No, I I put it on to just do two
• 35:35
  things. So there's Franklin Templeton
• 35:37
  talking about $100 trillion coming to Bitcoin, but Nico
• 35:40
  really wants Mauricio's take on Kathy Woods, so we got that clip
• 35:43
  in there as well. So we got Kathy Wood, we got
• 35:47
  Franklin Templeton clip. We'll we'll play that during the
• 35:49
  the numbers. Maybe we'll play that during the
• 35:52
  numbers segment. And then during the news, during
• 35:55
  the new segment, the Genius Act passed yesterday and this is one
• 36:00
  of the, you know, big first industry major legislative wins
• 36:05
  in the United States. I really want to get a
• 36:08
  Mauricio's perspective on this. What is the significance of it?
• 36:11
  We have a clip from the AI, the White House AI on Cryptozar.
• 36:16
  He he has his perspective on it, what the significance of it is.
• 36:21
  And then during the culture segment, we're going to be
• 36:23
  talking about all things Bitcoin collateralized loans.
• 36:28
  What makes Leaden special will make some unique and soon be a
• 36:32
  great conversation. So if you guys are enjoying the
• 36:34
  show so far, make sure to smash that like button.
• 36:36
  We blew past 2000 live viewers on YouTube and X and Rumble
• 36:41
  still coming in strong at 276 live viewers.
• 36:44
  If you guys are enjoying the content so far, make sure to
• 36:47
  smash that like button. You're listening to simply
• 36:49
  Bitcoin. I'm your host, Nico's my Co host
• 36:52
  Optimus Fields and our special guest for today, Mauricio.
• 36:55
  He's the Co founder of Leaden the best place get your yourself
• 36:59
  a Bitcoin collateralized loan. Anyways, guys, let's get into
• 37:03
  the let's get into the no First, I have to give a shout out to
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  anything on the store. At the time of recording, the
• 40:13
  Bitcoin price is $104,040. Block height 901 nine 901,924
• 40:21
  sats per dollar. Still under 1900. 61 market cap,
• 40:25
  2.07 trillion Bitcoin versus gold market cap, 8.71%
• 40:30
  percentage issued that I think that's wrong.
• 40:36
  That's wrong, isn't it? Yeah.
• 40:37
  That's totally wrong. Clock Moody's dashboard's acting
• 40:39
  up. Yeah, we got to remove that.
• 40:41
  We got to remove that. Move it from favorites.
• 40:44
  All right? The climb from all time high
• 40:45
  -7.1%. If you buy Bitcoin right now,
• 40:48
  you get a 7.1%. Is it right on your end?
• 40:52
  Right on mine it says 94.67. 94.67 anyways, but it's removed
• 40:57
  realized monetary inflation .84% in the grand scheme of thing.
• 41:01
  I mean dude, it's just Bitcoin just continuing to take Fiat
• 41:04
  currencies to absolute school. When me and Aki started covering
• 41:07
  this number, like what was it at?
• 41:10
  It was at like. It was at 3 point, maybe it was
• 41:14
  like 3.5 or something, maybe 4 Africa.
• 41:17
  Yeah, it was crazy when we started covering this like years
• 41:19
  ago. Now it's under 1%.
• 41:21
  So even if they get it back to that 2% number, you know, good
• 41:25
  luck. Anyhow.
• 41:27
  So I have a video of two videos. Should we play the Franklin
• 41:30
  Templeton or kind of let let pass it on to Mauricio?
• 41:33
  Mauricio, do you want to hear from Kathy Wood or Franklin
• 41:36
  Templeton? Let's do Kathy first.
• 41:38
  Let's do Kathy. Here we go.
• 41:41
  I want to start right with Bitcoin and what you see is the
• 41:44
  outlook for bitcoin's price. In recent weeks, you've come out
• 41:47
  and said $1.5 million per Bitcoin by the year 2030.
• 41:52
  Since then, though, we've seen quite a few outflows.
• 41:54
  We've seen a lot of volatility. Shonali just went through that
• 41:58
  is that. Still your view 1.5 million by
• 42:01
  2030. Yes, it is our view.
• 42:04
  I think right now we're in a risk off period generally and if
• 42:07
  you've been watching Bitcoin it's almost been a leader in
• 42:11
  terms of risk on risk off. So I think that's what we're
• 42:14
  seeing. If you look at our on chain
• 42:16
  analytics, what you will see is that we are in the middle of a
• 42:23
  little bit more than halfway through a four year cycle.
• 42:26
  We think we're still in a bull market and we believe that the
• 42:33
  deregulation that we're seeing here in the United States is, is
• 42:38
  going to be very important to institutions moving into this
• 42:43
  new asset class. Asset allocators have to have a
• 42:46
  point of view on this new asset class and we think by putting it
• 42:51
  in portfolios, risk adjusted returns for the entire portfolio
• 42:55
  will go up. OK.
• 42:58
  So I mean Mauricio 1.5 by 2030. Thoughts.
• 43:07
  I mean, I, I haven't had the privilege of taking a look at
• 43:10
  their model, but again, I, I think, you know, to, to, if you
• 43:17
  wanted to compare Bitcoin to gold, you know, even if, if you
• 43:21
  were to say, OK, Bitcoins going to get to the same sort of size
• 43:25
  of an asset class that gold is today, Bitcoin would have to a
• 43:31
  little over 10X from here. So if you just want to use a
• 43:33
  base case that without any sort of additional monetary printing,
• 43:38
  we, we just want to say, OK, there will be other asset
• 43:42
  classes that should be demonetized.
• 43:44
  I'll give you an example, US real estate or U.S. debt, OK, If
• 43:48
  we just say no more printing in the universe of, of assets and
• 43:52
  the relative sizes, we believe that Bitcoin should be as big as
• 43:56
  gold because it's just a newer version, just much more
• 43:58
  functional, much more verifiable than gold.
• 44:01
  If you just take that base case without any further printing,
• 44:04
  you would assume or you would think that the assets that are
• 44:08
  not as good for hedging against inflation.
• 44:10
  So U.S. debt or a property, you would start selling those things
• 44:15
  in favoring Bitcoin even over gold, right?
• 44:17
  So even that rebalancing itself would lead to a 10X in Bitcoin.
• 44:20
  That's not going to happen in a vacuum, right?
• 44:22
  Like between now and the time we get there, there's going to be
• 44:25
  continued debasement from the currencies.
• 44:27
  So I think Kathy's taking into consideration 2 things.
• 44:31
  One, the speed at which Bitcoin is getting monetized relative to
• 44:35
  other asset classes is much higher.
• 44:37
  So think about it. And you put yourself in the
• 44:40
  position of a person. I mean, listening to, if you're
• 44:42
  listening to this show, you probably have a bias already.
• 44:45
  But let's just say that for whatever reason, you win
• 44:47
  $1,000,000 in the lottery tomorrow.
• 44:49
  What percentage of that are you going to allocate to Bitcoin
• 44:51
  versus property, right? And if that property, if, if you
• 44:56
  take your personal residence aside, if you already own your
• 44:58
  home and you get $1,000,000 worth of, of prize money, you're
• 45:02
  not going to buy a second home, right?
• 45:04
  That you, you're most likely going to buy more Bitcoin and
• 45:07
  not gold. And I think macroeconomics is
• 45:11
  just taking what you would do and multiplying that by 300
• 45:14
  million people that live in your country.
• 45:16
  So if those are your views and your bias and you're an informed
• 45:19
  or rational economic actor, you can assume other people are
• 45:22
  thinking similar to you, at least if they feel that that
• 45:24
  same way. And so I think is it possible?
• 45:28
  Definitely it's possible. You're right.
• 45:30
  Like, you know, the, the I'm in Venezuela just just by the time,
• 45:35
  just in the time I've been alive, Venezuela has removed 14
• 45:38
  zeros from its currency. That's a trillion more than a
• 45:42
  trillion dollars worth of zeros that have been removed.
• 45:45
  Is that feasible in another country or in another Fiat
• 45:48
  currency? Yes.
• 45:49
  Obviously not in the same, you know, not in as dramatic as of a
• 45:52
  fashion as what happened to us. But yes, Fiat will continue to
• 45:56
  get the base and the zeros are endless.
• 45:58
  Like the amount of zeros you can wipe out of a courtesy.
• 46:01
  I mean, I, I don't know if anyone's done the math, but I'd
• 46:03
  love to see how many zeros have been removed from currency since
• 46:06
  1971. I bet you it's a big number.
• 46:08
  Yeah, absolutely, absolutely. I think that's a good point too,
• 46:11
  because it's like 1.5 million is it in today's purchasing power,
• 46:17
  right. Because I remember like, you
• 46:20
  know, and I'm, I'm, I'm old enough to remember this, right?
• 46:23
  Like, you know, $1.5 million 10 years ago was a totally
• 46:28
  different conversation to $1.5 million today.
• 46:32
  I mean, just with the pandemic alone, I live in Miami, okay?
• 46:36
  Just in the pandemic alone, like literally within six months, the
• 46:41
  price of real estate doubled with the amount of money
• 46:44
  printing that they did. So that one, that quote UN
• 46:47
  quote, 1.5 million would have literally bought you half of
• 46:51
  what it would have bought you 6 months prior, right?
• 46:55
  So I think that's a really, really good point.
• 46:57
  And yeah, I mean, Opti, you do have the model, right?
• 47:00
  You do have the. Yeah, yeah.
• 47:02
  I pulled it up somewhere so I could see it.
• 47:03
  So let me let me pull this up here we go.
• 47:07
  So basics for the audio here. Hold on, let me pull this out so
• 47:10
  you guys can see this. The basics for everyone that's
• 47:13
  on audio. We have Kathy Woods bear
• 47:16
  prediction 2030 is 300K with a keger of 21%.
• 47:20
  We have her base case which is $710,000 with a 40% keger and
• 47:25
  then her bullish case is and I think these number this might be
• 47:29
  the older 1. So, you know, I think she's.
• 47:31
  Updated these She actually raised, yeah, I think her base.
• 47:35
  Case is 1 point 5 million, but I can find that one as quickly on
• 47:38
  the stream. But her bulk case 1.5 million
• 47:40
  with a kegger 58%. And I think Sailor was just at
• 47:44
  the conference basically saying the last four years, the keggers
• 47:47
  roughly 57% and then just moving down a little bit price target
• 47:52
  assumptions. And you can see the various
• 47:54
  different assumptions of institutional investments, how
• 47:56
  much they hold the digital gold meme, you know, emerging market,
• 48:00
  safe haven nation state treasuries, the size of those,
• 48:03
  the corporate treasury amounts and then of course Bitcoin on
• 48:06
  chain financial services. So, you know, there's the basic
• 48:08
  breakdown, Mauricio, and she is moving these up and getting more
• 48:13
  bullish as as the blocks come in.
• 48:15
  But, but do you see, do you see how similar it is to the things
• 48:19
  I just broke down and, and it's, it's exactly it.
• 48:21
  It's her, her, her big components for price
• 48:24
  appreciation are the debasement of US of government debt, which
• 48:28
  is there that's the nation state treasury bucket.
• 48:30
  It's the it's the cannibalization or the
• 48:33
  demonetization of gold as an asset class and into Bitcoin and
• 48:38
  the rest are just like tiny call options, right?
• 48:40
  Like emerging market safe haven. Like the reason why she put such
• 48:43
  a big interest in institutional investment, which actually I
• 48:46
  agree with and I forgot to mention this is the, is the fact
• 48:50
  that we just spent a long time discussing how intentional and
• 48:57
  deliberate these guys that are when they're buying their
• 48:58
  bitcoins such so that they don't move their price the in the same
• 49:02
  way that they are so deliberate to buy it, they're also going to
• 49:06
  be not the first people to sell it, right?
• 49:09
  And so nation States and large corporate treasuries are in many
• 49:14
  ways one way streets, right? Like these bitcoins are getting
• 49:17
  scooped off the market with the expectation never to return back
• 49:22
  into the order books, right at that.
• 49:23
  That's the expectation for these people.
• 49:25
  They are very, very, very long term buyers.
• 49:28
  That again is very different than the guy that bought, you
• 49:32
  know, 10 Bitcoin at 100 grand and you know, Bitcoin double.
• 49:36
  All of a sudden he's sitting on life changing money.
• 49:38
  He's never seen 100 grand and you know, he wants to move out
• 49:42
  of his basement and do something so that he goes and he rushes to
• 49:44
  sell it. These types of investors are
• 49:47
  very different, have very different incentives.
• 49:49
  They're going to see a 2X on that and they're just going to
• 49:51
  say, great, let's buy more, right?
• 49:53
  They don't have any need to, you know, sell that to do whatever
• 49:57
  they want. They they're actually buying
• 49:59
  Bitcoin a lot of times with their excess cash, right.
• 50:02
  And so it's, it's not that they have a need to go and sell this.
• 50:04
  They're just doing, you know, bitcoins doing what it's
• 50:06
  supposed to be doing. So I think Kathy is correct or
• 50:10
  the Arc Invest team is correct and sort of highlighting this
• 50:13
  institutional demand bucket as as in some ways, like a one way
• 50:16
  St. these these aren't going to be coins that are going to be
• 50:19
  put back in the market anytime soon.
• 50:21
  And so that that should be added to this, you know, pile of of
• 50:27
  Bitcoin that's getting drawn off and not putting selling pressure
• 50:31
  back on the book for whatever reason, right?
• 50:34
  Even if it goes higher or if it goes lower, if it goes lower,
• 50:36
  they're not getting liquidated. If it goes higher, they're not
• 50:38
  taking profits because what are they going to take profits back
• 50:40
  into the dollar like that's what they left in the first place?
• 50:43
  So they're, these things are are I think, I think that analysis
• 50:48
  is directionally correct to what I the way I think about it.
• 50:52
  I completely, completely agree with you guys.
• 50:55
  We have a hell of a show lined up for you guys.
• 50:56
  We're going to be talking about the Genius Act first, pro
• 51:00
  Bitcoin pro. I would say pro crypto, pro
• 51:03
  stable coin legislation. I would say it, it's pro
• 51:06
  Bitcoin, pro crypto and pro stable coin legislation that was
• 51:11
  passed in the US Senate. It's kind of a big deal, a big
• 51:14
  milestone. We're good.
• 51:16
  We have Mauricio again, Co founder of Leaden in the show
• 51:19
  today. So we're going to do an analysis
• 51:21
  of that breakdown. What is the significance of it?
• 51:23
  Is it a nothing burger? Is it a big deal?
• 51:25
  We have a video of the AI and Cryptozar from from the White
• 51:30
  House, David Sachs. He's going to be he has he has
• 51:33
  his thoughts on it as well. So we're going to be doing a
• 51:35
  deep dive analysis on the Genius Act that passed in the Senate
• 51:40
  yesterday. It will more than likely get
• 51:43
  signed into law by President Trump.
• 51:45
  And then of course, during the culture segment, we're going to
• 51:47
  be talking about all things LED into.
• 51:49
  So stay tuned. Smash that like button if you
• 51:51
  guys are enjoying the show and 2500 people watching live
• 51:55
  between YouTube and X and 230 of you guys watching live on
• 51:58
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• 52:00
  We will be back in just one second.
• 52:05
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  Cold Card Q or the MK4. Anyways, I want to cover today's
• 54:47
  news pretty significant and I love the way that the media
• 54:52
  framed it as well. So we covered this yesterday,
• 54:56
  but I want to take advantage of the fact that we got Mauricio on
• 54:59
  the show today because I want to get his perspective on this.
• 55:02
  So Senate passes Genius stablecoin bill giving crypto
• 55:06
  industry first major legislative win.
• 55:09
  The GENIUS Act establishes the first federal framework for
• 55:12
  dollar peg stable coins, granting sweeping authority to
• 55:16
  the Department of Treasury and opening the doors to banks,
• 55:20
  fintechs, and retailers. Democrats failed to secure
• 55:23
  provision barring the president from profiting, even as Trump
• 55:26
  disclosed earning 57 million from token sales in 20/20/44
• 55:30
  alone. Industry giants like Amazon and
• 55:32
  Walmart are reportedly moving toward stable coin style
• 55:36
  offerings as payment networks brace for disruption.
• 55:39
  So kind of a big deal I would say.
• 55:41
  Here is the AI and crypto czar from the White House.
• 55:46
  He has his thoughts. I'll play the video.
• 55:48
  Wait, where is it, Opti? What?
• 55:51
  Man, we're going to have to play it the old fashioned way, I
• 55:53
  guess. Again, it wasn't me, but I'm
• 55:55
  getting blamed for. It anyways, so here are his
• 55:58
  thoughts. Let's check it out.
• 56:06
  I don't think we can hear. He said he can't hear anything.
• 56:10
  Oh, that sucks. OK Anyways, I'm just going to
• 56:13
  play it in the background. We have enough information to
• 56:15
  preface this. But yeah, I mean, he's just
• 56:18
  basically, basically making the case that this is going to
• 56:21
  unlock trillions. He's going to it's going to
• 56:23
  bring banks into into the industry.
• 56:26
  Banks are going to start issuing stable coins.
• 56:29
  But that's essentially the case that he's making.
• 56:32
  So I'm going to pass it on to Mauricio.
• 56:33
  Mauricio, what is the significance of this bill?
• 56:37
  Is it, you know, is it a nothing burger?
• 56:39
  Is it a big deal? Is it further kind of
• 56:41
  legitimizing the industry in the eyes of traditional finance?
• 56:46
  Does it matter? Does it impact your business,
• 56:48
  Mauricio? Yeah, thanks, Nico.
• 56:51
  It's a huge deal. I I can't stress enough how big
• 56:54
  of a deal this is. Keep in mind that this bill is
• 56:58
  getting passed as one of the first major bills, you know,
• 57:03
  after Trump's are spending bill, the big beautiful bill.
• 57:05
  But like that, that also gives you a sense of prioritization
• 57:09
  within the administration, which is they move fast on this.
• 57:15
  Why is this so important? A few things.
• 57:18
  Number one, what does this do to the sort of global banking
• 57:22
  environment? If you look before stablecoins,
• 57:27
  the only way that foreigners could hold dollars was either
• 57:31
  through having a bank account in the US by some form of secondary
• 57:36
  residence of some of some type. Because most banks in the US
• 57:39
  require you to have AUS domicile or an address.
• 57:42
  So it's very challenging for you to have AUS based bank account
• 57:46
  where with AUS bank that has protection from the FDIC, which
• 57:50
  is Federal Deposit Insurance Corporation, meaning your
• 57:53
  deposits up to 250 K are insured by the Federal Reserve or by the
• 57:57
  FDIC. Sorry.
• 57:58
  So these insured deposits, this sort of the safest way to bank
• 58:02
  was only available to people living in the US or those who
• 58:05
  have access to a full on U.S. bank or bank account.
• 58:09
  Everyone else was left with two options.
• 58:12
  You either hold your dollars in what's called euro dollars.
• 58:16
  Euro dollars just mean you hold a dollar deposit in a non-us
• 58:19
  bank. And these euro dollars were
• 58:22
  typically not secured or insured by the FDIC.
• 58:26
  And in many times when the local currencies start collapsing,
• 58:30
  like they did in Venezuela, like they do in Nigeria, like they've
• 58:33
  done in many parts of the world, the first thing that the regime
• 58:36
  does is it blocks your ability to buy dollars through the
• 58:39
  banks. And in some cases, like in
• 58:41
  Argentina, it takes all of the dollar deposits in the banking
• 58:45
  system and pays you with their crappy Fiat, right?
• 58:48
  And so that that's what's called in Argentina was known as El
• 58:50
  Coralito. So historically, people have
• 58:53
  been very wary of holding U.S. dollar deposits in a non-us bank
• 58:59
  because in the failing, in the case where your currency fails,
• 59:03
  which is precisely why you want to hold dollars, the dollars go
• 59:06
  away and they get converted to your crappy Fiat that you were
• 59:09
  trying to get out of in the 1st place, typically at a much
• 59:12
  crappier rate set by the government.
• 59:14
  That's the valuing set Fiat that's giving you in exchange
• 59:17
  for your dollars. It's trading you mirrors for
• 59:20
  gold. It's not, you know, it happens
• 59:22
  all the time. And so why is this so important?
• 59:26
  Now people all over the world have access to AUS dollar
• 59:30
  instrument that does not require a bank account, whether that is
• 59:34
  in an offshore bank or even in AUS bank.
• 59:37
  Anyone could just spin up an Etherium address or a Tron
• 59:39
  address or a Solana address and get tethers sent to that.
• 59:43
  And they have now U.S. dollars that can be sent anywhere around
• 59:47
  the world. And by the way, this dollar is
• 59:51
  backed by U.S. debt. So the default risk or the the
• 59:56
  ability for you to not be able to turn that into a real dollar
• 1:00:00
  is very, very low. It it's actually much safer, I
• 1:00:04
  would argue to own a token of a dollar that's secured by AUS
• 1:00:09
  Treasury than even to hold deposits in AUS Bank.
• 1:00:13
  Because if you're holding more than 250K in AUS Bank, only 250K
• 1:00:18
  of that is covered by FDIC insurance.
• 1:00:20
  The rest is not. So if that bank collapses,
• 1:00:22
  presumably you would only get 250K if you.
• 1:00:26
  You've had five 100K in stable coins.
• 1:00:28
  Those 500K are backed by U.S. Treasury bonds.
• 1:00:32
  The ability for you to redeem that into dollars is much better
• 1:00:36
  in any amount, but in particular in amounts higher than 250K,
• 1:00:40
  which I know isn't a problem for most people, but if you're a
• 1:00:43
  large corporate outside of the US, that is a huge benefit for
• 1:00:47
  you. So number one, this deals a
• 1:00:49
  massive blow to authoritarian regimes all over the world that
• 1:00:53
  try to gatekeep people from using strong currency in order
• 1:00:58
  to force feed their garbage Fiat into these people's hands.
• 1:01:01
  So it it, it really deals a blow into castrating or authoritarian
• 1:01:07
  banking regimes with undue and unfair restrictions for people
• 1:01:12
  to protect the value of their life's work.
• 1:01:14
  That's number one. Number two, if there was ever a
• 1:01:19
  chance for any other currency in the world to gain a semblance of
• 1:01:24
  relevance in the new economy, it would have been for that
• 1:01:28
  currency to allow better regulated stable coins faster
• 1:01:34
  than the US dollar. For example, if the euro had
• 1:01:38
  enabled the way to easier and faster for issuers to sort of
• 1:01:42
  feel to come into the regulatory purview and offer a euro stable
• 1:01:47
  coin, I fear that we would have a little at least a conversation
• 1:01:51
  around euro based stable coins. That didn't happen.
• 1:01:54
  The United States was the 1st country that move to regulate
• 1:01:58
  stable coins. Therefore, the incentive for any
• 1:02:01
  issuer to now go and try to set up another real currency peg
• 1:02:07
  stable coin, like a Euro stable coin or a Japanese yen stable
• 1:02:11
  coin or a Yuan stable coin, those things have basically now
• 1:02:14
  died before they were ever born. Because why would you go with a
• 1:02:19
  #2 #3 #4 currency when the number one currency just gave
• 1:02:23
  you the path to get regulated and get the proper rails.
• 1:02:27
  And so I think this now and then the third, the tertiary effect
• 1:02:31
  that is going to happen from this, which I think is, is much
• 1:02:34
  more minor in a global context, is the fact that we have all
• 1:02:38
  been, we've all been at the mercy of credit cards and
• 1:02:43
  payment processors up until now. If you ever wanted to pay for
• 1:02:47
  something, you have to, you know, you have to pay 3% to Visa
• 1:02:49
  at 3% to MasterCard for anything you wanted to tap for.
• 1:02:52
  That's a racket. You know, we, we people
• 1:02:54
  shouldn't be paying 3% every time they buy coffee.
• 1:02:57
  Like there's no real reason for you to do that.
• 1:02:59
  You see now that the Unchained fees to transact dollars are now
• 1:03:02
  2-3 cents. So that's going to be better for
• 1:03:05
  merchants and for buyers. And I think it's going to
• 1:03:08
  eventually deal a a particular blow.
• 1:03:10
  So two payment processors like Visa, MasterCard, etcetera, who
• 1:03:14
  have built a Moat around these networks and basically have a
• 1:03:18
  monopoly on these payment rails. I think as the, as the, the
• 1:03:24
  sellers realize that they can keep 3% more of what they're
• 1:03:26
  selling by taking stable coins. And as the buyers realize that
• 1:03:29
  they can tap that just as easily and save 3%.
• 1:03:32
  I think over time this is going to take a lot of share from from
• 1:03:37
  these sort of quasi monopolies that have been racketing us for
• 1:03:40
  so long. One of the things that you
• 1:03:43
  brought up, Marisio, that was fascinating to me, I had to
• 1:03:45
  write it down so I wouldn't forget, which was the fact that
• 1:03:49
  now worldwide essentially you're going to have competitive
• 1:03:52
  currency markets, right? That's essentially what I heard
• 1:03:55
  you say where, you know, if you're in Venezuela or if you're
• 1:04:00
  in Argentina, or if you are, you know, in, in, in, in Africa and
• 1:04:05
  you don't have the privilege of having a, a relatively stable
• 1:04:09
  Fiat currency. All of a sudden now your ability
• 1:04:13
  to essentially access a Fiat currency that is much more
• 1:04:17
  stable, the US dollar, of course, you're now gonna have
• 1:04:21
  that capability just by literally downloading a wallet.
• 1:04:25
  And what that's the geopolitical implications of that are gonna
• 1:04:29
  be massive. They're gonna be huge.
• 1:04:30
  Like I, I see a lot of governments.
• 1:04:33
  I'm just thinking like, you know, kind of game theory wise.
• 1:04:36
  I, I, I see, I, I envision a lot of governments not reacting very
• 1:04:40
  well to this because essentially it allows people to escape these
• 1:04:46
  kind of local Fiat regimes. Is that right, Mauricio?
• 1:04:49
  It it, it gives them a much faster and easier way to opt out
• 1:04:53
  of the local Fiat and it makes it much more difficult for the
• 1:04:58
  authoritarian regimes to prevent that from happening or, or or
• 1:05:03
  instilling enough fear from that happening.
• 1:05:06
  Because what? Because now a stable coin, you
• 1:05:11
  know, think of yourself in a hostile environment, right?
• 1:05:13
  Like if you're in a place like Venezuela and let's just say
• 1:05:16
  tomorrow the regime wakes up and says, oh, I don't want anybody
• 1:05:19
  to be transacting in dollars. I don't want anybody to be using
• 1:05:21
  dollars, right? I want you to use this garbage
• 1:05:23
  currency that nobody wants you as the seller.
• 1:05:26
  You've you've produced, you know, work.
• 1:05:29
  Let's just say you have a farm and you have to buy the seeds
• 1:05:32
  again. And this the the the things you
• 1:05:33
  need to to re harvest that potato that you're about to
• 1:05:37
  sell. You know that if you sell that
• 1:05:39
  potato for bolivares, you won't be able to buy back the things
• 1:05:42
  you need to to basically grow the potato again.
• 1:05:46
  So you need to sell it in dollars or some type of dollar
• 1:05:48
  equivalent, right? You know, you can't use the
• 1:05:51
  local banking system because they don't allow you to deposit
• 1:05:54
  dollars into it. In fact, they will punish you
• 1:05:56
  for doing so. Then what are your other
• 1:05:59
  options? Your other options?
• 1:06:00
  OK, Do I take cash? Cash dollars?
• 1:06:03
  So cash dollars are a liability both because there's a lot of
• 1:06:06
  fraud in cash like Venezuela and other places where cash is
• 1:06:09
  abundant. People walk around with their,
• 1:06:12
  you know, the, the verification pens, you know, the little pens,
• 1:06:14
  you have to scratch the dollar to determine if they're real
• 1:06:16
  bills or not. And then those little UV lights
• 1:06:19
  that you put under the dollar to make sure that they, they are
• 1:06:21
  actually dollars. People in Venezuela in
• 1:06:23
  hyperinflation environments, everybody walks with a pen and
• 1:06:26
  some people even have that little light and they carry it
• 1:06:28
  because they're transacting on cash so often and they've been
• 1:06:30
  defrauded so often that they have to keep checking the cash
• 1:06:33
  to make sure it's real. Not only is that a risk, the
• 1:06:36
  other risk is that in an environment where the world was
• 1:06:39
  told or the country was told that having dollars is, is is
• 1:06:43
  illegal. If you ever get stopped at a
• 1:06:45
  checkpoint or anything and they find dollars on you, those
• 1:06:48
  dollars are gone, right? And so along comes this
• 1:06:51
  stablecoin, which is now offered by AUS sanction regulated entity
• 1:06:57
  that you know is good for the dollar.
• 1:07:00
  It's in a it's in a format that you can have on your phone on an
• 1:07:03
  app. If you don't even have to have
• 1:07:05
  your phone, you can just memorize your mnemonic and you
• 1:07:07
  don't need to have it either. So it's a much better tool for
• 1:07:11
  you to accept this payment than dollars in your account, which
• 1:07:14
  you can't do or even cash, which becomes a big liability.
• 1:07:18
  So it gives people more freedom to choose their instrument.
• 1:07:22
  And by doing so, and by choosing that dollar over the local
• 1:07:26
  currency, it basically it makes the, the authoritarian regime's
• 1:07:32
  lives much, much harder. Because the way these guys
• 1:07:36
  finance themselves typically is through printing more Fiat
• 1:07:39
  because they don't, they don't have the ability to access bond
• 1:07:42
  markets because they're sanctioned and, and typically
• 1:07:45
  they have nothing to tax because everyone that can produce
• 1:07:48
  anything is gone. So their only way of financing
• 1:07:50
  their deficits is by printing money.
• 1:07:52
  And if if they are not able to force feed that print the Fiat
• 1:07:56
  into you and force you to keep it, what happens is they force
• 1:08:00
  feed you the Fiat, you just get rid of it.
• 1:08:01
  And so every time they print, inflation gets magnified like
• 1:08:05
  2-3 X because of the velocity through which you get out of
• 1:08:08
  that crappy currency. So it will make having these
• 1:08:13
  stable coins will be a check and a balance against irresponsible
• 1:08:20
  governments. And I would argue that because
• 1:08:21
  of it, you're going to see likely more inflation in
• 1:08:26
  offshore markets and you're going to see more authoritarian
• 1:08:29
  attempts to control and fix a fake value of a currency that
• 1:08:34
  will ultimately fail like they always have.
• 1:08:37
  And, and what's really interesting about this to
• 1:08:40
  Mauricio from like a, a psychological phenomenon to is
• 1:08:44
  people are going to get exposed to a more stable form of
• 1:08:49
  currency, meaning there's an idea, a seed planted in their
• 1:08:54
  head that says, wait a second, we don't have to live this way.
• 1:08:58
  There's an alternative, right? And I think we're the kind of
• 1:09:02
  geopolitical class specifically for authoritarian regimes, as
• 1:09:05
  you mentioned, is gonna be they're, they're gonna have a
• 1:09:09
  hard time convincing their population to use their local
• 1:09:12
  currency. And that's their source of
• 1:09:14
  power, their ability to print money, right?
• 1:09:16
  So the, the geopolitical implications of this are
• 1:09:19
  massive, right? So, yeah, massive, massive,
• 1:09:22
  massive. You know, I, I, I this, this is
• 1:09:25
  huge, this bill that this passed.
• 1:09:27
  And you said something earlier too, which is very significant,
• 1:09:30
  right? You know, there's the big
• 1:09:31
  beautiful bill, right, Which is Trump's agenda, but also he
• 1:09:35
  stayed true to his word, right? He, this is one of the first
• 1:09:39
  bills that's getting passed through the Senate that has
• 1:09:42
  nothing to do with all the other kind of policy stuff that's
• 1:09:45
  happening. Politics is crazy these days.
• 1:09:47
  Let's focus on Bitcoin. But it has to do with our
• 1:09:50
  industry, right? Which I find really interesting.
• 1:09:52
  I, I do want to focus on something that you said earlier,
• 1:09:55
  which is how this could potentially be a disruptor to
• 1:09:59
  Visa and MasterCard, which if anyone, that, if anyone that
• 1:10:03
  doesn't know, basically Visa, MasterCard, American Express,
• 1:10:08
  kind of a fan of American Express.
• 1:10:10
  They all take, they all take. But, but again, I'm not, I'm not
• 1:10:13
  the vendor. That's the thing, right?
• 1:10:15
  I, I'm not the vendor, I'm the consumer, right?
• 1:10:18
  But as, as, as a vendor, if you guys don't know, you have to pay
• 1:10:24
  like 3, I think some of them go up to even like 4%.
• 1:10:27
  But could you, So could you imagine that like you make a
• 1:10:30
  sale? This isn't tax.
• 1:10:32
  This is just for accepting a credit card, right?
• 1:10:35
  That's why a gas station sometimes it's like taped on
• 1:10:38
  where it's like we don't accept transactions under for $20 or
• 1:10:41
  something. They literally do that because
• 1:10:43
  of that, that, that specific fee, right?
• 1:10:46
  And they've been able to do that because they have a complete
• 1:10:48
  Moat, right? But now when there's a
• 1:10:50
  disruptor, when there's an alternative form of digital
• 1:10:54
  payment, how are they going to justify that 3% fee or that 4%
• 1:10:59
  fee, right? So could you talk a little bit
• 1:11:02
  about that, Mauricio? Yeah, definitely.
• 1:11:05
  So I, I think like you mentioned, Nico, for the people
• 1:11:09
  that don't necessarily or aren't aren't too familiar with how
• 1:11:12
  this works. If you open up a coffee shop and
• 1:11:15
  you want to start taking payments in, in credit cards,
• 1:11:18
  you have to sign up for a payment processor.
• 1:11:21
  And that payment processor will tell you here you can get this
• 1:11:23
  device, it'll accept payments in Visa, MasterCard, American
• 1:11:26
  Express. Here are the fees you must pay
• 1:11:29
  for each one of these payments processed.
• 1:11:31
  So broadly speaking, they range anywhere from 3 to 5%.
• 1:11:35
  And there's typically a a sort of fixed fee component.
• 1:11:39
  So for example, in a debit card transaction, you might have to
• 1:11:41
  pay $0.25 and nothing else, right?
• 1:11:45
  Because because it's a particular fee structure in a
• 1:11:47
  credit card transaction, you might have to pay $0.10 + 3% of
• 1:11:51
  whatever's being bought, right? And so once you have those
• 1:11:53
  hurdle rates, so for example, if have you ever been gone to a
• 1:11:56
  convenience store and says we don't take debit card for
• 1:11:59
  anything less than $5, Why? Because $0.25 divided and and $5
• 1:12:05
  is 5% so it doesn't make sense for the company to lose 5%
• 1:12:08
  margin on a $10 sale just because of they wanted to accept
• 1:12:12
  the debit card. So a lot of these transaction
• 1:12:15
  fees force arbitrary changes in price for some of these goods.
• 1:12:20
  I'll give you the example of many Canadians watching this
• 1:12:23
  probably know Tim horton's. Tim horton's is a very famous
• 1:12:25
  Canadian coffee chain. Historically, Tim Horton's never
• 1:12:28
  accepted credit cards for payment because they didn't want
• 1:12:31
  to give up the 3% and they didn't want to have to raise
• 1:12:33
  their prices of everything for 3%.
• 1:12:35
  So all of us go into Tim horton's, have to pull out our
• 1:12:36
  debit cards and cash to pay because they just didn't want to
• 1:12:39
  take MasterCard and Visa because they didn't want to raise their
• 1:12:41
  prices 10%. Eventually, a few years back,
• 1:12:44
  they had to bend the knee because people were so upset.
• 1:12:47
  They would much rather pay $0.03 extra or six cents extra on the
• 1:12:49
  coffee so they could tap their MasterCard.
• 1:12:51
  But what I'm trying to illustrate here is that the
• 1:12:54
  ability to pay with these cards is is something that vendors
• 1:12:58
  have to pay for, and to the user, it doesn't.
• 1:13:02
  You don't see it, but you're also paying for it because often
• 1:13:05
  times companies just bump up prices by 3% to cover the price
• 1:13:08
  of your credit card. And I'm also sure that many of
• 1:13:10
  you here have tried to pay with a credit card for something and
• 1:13:13
  they've given you a 3%, you know, credit card fee for using
• 1:13:16
  the credit card for payments, right?
• 1:13:17
  So you can, it always goes back to we have to pay the
• 1:13:21
  transaction fee, right? The transaction fee in a credit
• 1:13:24
  card. They've, they, they have a, a
• 1:13:26
  big enough mode that they've been able to squeeze or force
• 1:13:29
  the vendors to basically give up 3% of their margins every time
• 1:13:32
  somebody taps. With a stable coin, you are now
• 1:13:36
  going to be making it much easier for people to carry cash
• 1:13:39
  because the annoying thing about cash is you don't want to carry
• 1:13:41
  a couple grand around in your wallet, but you also don't
• 1:13:44
  necessarily want to enter debt if you don't need to by using
• 1:13:46
  the card and then having to go back and pay it.
• 1:13:48
  So presumably if you just had a more convenient way of carrying
• 1:13:52
  cash, you would be more more likely to use it.
• 1:13:54
  Stablecoins do exactly this is because they will allow you to
• 1:13:59
  carry whatever balance you want on your phone, not different
• 1:14:02
  than what it would be in your Visa card.
• 1:14:03
  You can tap it, You'll be able to tap it just like you tap your
• 1:14:06
  Visa. The transaction fee will be
• 1:14:08
  $0.03 as opposed to 3% and that is a very material impact for a
• 1:14:15
  business. If I do any coffee shop on the
• 1:14:18
  street that they can save 2% by just adopting stable coins
• 1:14:23
  instead of cards. I wouldn't be surprised if you
• 1:14:25
  started seeing in due time discounts or incentives for
• 1:14:30
  people using stable coins to make the payments at any
• 1:14:33
  particular point instead of credit card.
• 1:14:36
  So for example, if you pay, if you pay stable coins, you get
• 1:14:38
  this price. If you pay credit card, oh, you
• 1:14:40
  got to pay up this price because we have to cover the transaction
• 1:14:42
  fee. So I wouldn't be surprised if we
• 1:14:44
  start seeing that. I think vendors will be
• 1:14:48
  incentivized to get more people to use these because they keep
• 1:14:51
  more money. And I, I think, you know, for
• 1:14:54
  vendors, it's going to be much better.
• 1:14:56
  And, and when you have a network of vendors encouraging you and
• 1:15:00
  giving you financial incentives to change your behavior, I think
• 1:15:03
  that's very powerful. At one 100% and and you know,
• 1:15:07
  the market behave the market, the market behaviors here are
• 1:15:10
  going to be fascinating because all of a sudden these vendors
• 1:15:13
  are going to have an alternative to the credit card companies.
• 1:15:16
  The credit card companies are going to feel the pressure and
• 1:15:19
  they're going to have to pivot in a way, right, in order to
• 1:15:22
  stay competitive, right? So I love competition.
• 1:15:25
  I love, you know, kind of market dynamics and market incentives.
• 1:15:29
  I think that they didn't see this coming, like a lot of, you
• 1:15:32
  know, innovations that happened like Blockbuster Netflix.
• 1:15:36
  I love the the, the like one of the famous stories.
• 1:15:40
  Like if you if you take a look at the Netflix founding, do you
• 1:15:43
  do you guys know that Netflix tried to sell to Blockbuster and
• 1:15:47
  they kind of like laughed them out of the room?
• 1:15:49
  And then ten years later, just like Netflix completely, you
• 1:15:52
  know, overtook them and Blockbuster went out of
• 1:15:55
  business. So it's these types of
• 1:15:56
  disruption. Oh, and then the Kodak one is
• 1:15:58
  even crazier. Did you guys know that Kodak had
• 1:16:02
  the first access to digital cameras, but they decided to put
• 1:16:05
  it on a shelf because it would compete with their film
• 1:16:09
  business, right. So these kind of paradigm shift
• 1:16:13
  and digital innovations that we're kind of going through, you
• 1:16:17
  know, things change very, very quickly.
• 1:16:19
  So it's important to stay on top of it.
• 1:16:21
  And I really appreciate Mauricio coming on the show and doing
• 1:16:24
  kind of like this deep breakdown and analysis of the significance
• 1:16:28
  of the genius act passing. Guys, we're going to talk about
• 1:16:31
  all things let in Bitcoin collateralized loans during the
• 1:16:35
  culture segment. You're going to want to stay
• 1:16:37
  tuned guys. The reason that we love lead in
• 1:16:39
  here, it's simply it's a great way to access the wealth of your
• 1:16:42
  Bitcoin without having to sell your Bitcoin.
• 1:16:44
  And if you don't know what that means, stick around and we'll
• 1:16:47
  explain it to you. We'll be right back in just a
• 1:16:50
  second. I want to give a shout out to
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  All right, everybody, we are back and joining us in the house
• 1:18:37
  today is Mauricio. The is that I thought Mauricio
• 1:18:41
  is the Co founder. Are you the founder?
• 1:18:44
  The Co founder? Co founder Co founder Opti I
• 1:18:47
  just took it. I love Adam, took it from.
• 1:18:49
  The website. No, no, it's all good.
• 1:18:52
  So, so we have the cofounder of Leaden these these guys are
• 1:18:58
  literally the one of the top players in the Bitcoin
• 1:19:01
  collateralized loan space. I'm a little bit biased here.
• 1:19:04
  Maybe it's the Venezuelan connection, but actually, you
• 1:19:07
  know what, what has me like the biggest fanboy of Leaden is the
• 1:19:13
  fact that there's no monthly payments.
• 1:19:14
  That that to me is the game that is the game changer for me.
• 1:19:19
  You know, as a business owner, of course, like you're put in
• 1:19:22
  this kind of predicament, You know, you start to build a
• 1:19:25
  Bitcoin treasury in your business, right?
• 1:19:27
  And then you're like, I don't want to sell this.
• 1:19:29
  The whole point of building a Bitcoin treasury is, you know,
• 1:19:32
  so like you're in, you're, you're very well positioned in
• 1:19:35
  the future, but you know, you might have expenses.
• 1:19:38
  You might be. I mean, should we drop?
• 1:19:41
  Should we hint into it? Opti should we hint to it?
• 1:19:45
  Yes. I don't know what you're hinting
• 1:19:47
  at, but yeah, why not? You might want to build out a.
• 1:19:49
  Professional, Hey, but. You know, like, you know, you
• 1:19:52
  might want to do things in your business, right?
• 1:19:55
  So, but you don't want to sell your Bitcoin, right?
• 1:19:58
  You know, and you got to make payroll.
• 1:20:00
  So what do you do? You know you could take a.
• 1:20:03
  Bitcoin collateralized loans, right?
• 1:20:05
  And that's why they, you know, that's why the phrase it's a
• 1:20:08
  great way to access the wealth of your Bitcoin without having
• 1:20:11
  to sell your Bitcoin. So this is a great tool for
• 1:20:14
  everyone. And again, it doesn't come with
• 1:20:16
  trade-offs like everything else, but it's a great tool for you as
• 1:20:20
  as a bitcoiner to basically again not have to sell your
• 1:20:25
  Bitcoin but borrow against it essentially, right?
• 1:20:29
  You have to be careful, you know, you have to be responsible
• 1:20:32
  with, you know, the essentially not getting margin called,
• 1:20:36
  right? They're very transparent about
• 1:20:38
  it. They'll send you an e-mail.
• 1:20:39
  You have to be on top of your loan, right?
• 1:20:43
  But if you're responsible, this is a great tool again, so that
• 1:20:46
  you don't have to sell your Bitcoin.
• 1:20:47
  Your Bitcoin goes up in value. And one of the things that I
• 1:20:50
  love about it again is no monthly payments.
• 1:20:52
  That to me is the biggest selling point, the game changer
• 1:20:56
  to the point where I like I when I initially when I started my
• 1:20:59
  loan and Marisa was kind enough to like hand hold me through
• 1:21:02
  this process, I was like, I was like messaging Marisa.
• 1:21:05
  I'm like like dude, like, so like when do I have to make the
• 1:21:08
  payment or something? He's like, there are no monthly
• 1:21:11
  payments. And then I'm like, what?
• 1:21:13
  I'm like, are you serious? You know, 'cause I was used to
• 1:21:15
  another provider that that was the case, right?
• 1:21:18
  So, yeah, man, Mauricio, welcome to the show, dude.
• 1:21:22
  And I don't know if I did the elevator pitch, but always happy
• 1:21:25
  to have you bro. Thank you, man.
• 1:21:27
  Listen, and I want to address Thomas's question on the chat.
• 1:21:30
  What's the timeline on California loans, 'cause I know
• 1:21:32
  that we got that question a lot around California.
• 1:21:34
  So we submitted our lending license application in
• 1:21:37
  California about three months ago.
• 1:21:39
  So we again, it's, it's out of our hands in terms of it's being
• 1:21:43
  reviewed by the regulators. But we are optimistic that
• 1:21:45
  hopefully towards the end of this year or early next year,
• 1:21:47
  we'll be able to lend to you in California, hopefully sooner.
• 1:21:50
  We'll keep you posted, but the the elevator pitch is that
• 1:21:54
  Leaden is a place that lets you use your Bitcoin as collateral
• 1:21:58
  to get the dollars you need without having to sell it.
• 1:22:01
  In most places, selling your Bitcoin triggers a a taxable
• 1:22:04
  event, whereas taking a loan and using your Bitcoin as collateral
• 1:22:08
  typically doesn't trigger a taxable event.
• 1:22:10
  And what people like about our products is that you know, most
• 1:22:14
  if, if you're a person or a company that's on a Bitcoin
• 1:22:17
  standard, you, you know, all your savings are in Bitcoin, but
• 1:22:19
  you have a Fiat obligation that comes due or maybe an investment
• 1:22:23
  opportunity where the investor doesn't think Fiat or you just
• 1:22:26
  don't want to get rid of your or Bitcoin.
• 1:22:27
  Sorry, and you just don't want to get rid of your Bitcoin to
• 1:22:30
  invest. You can use your Bitcoin as
• 1:22:32
  collateral for a loan at Lenin. Get the funding you need to
• 1:22:35
  cover that expense to invest in that new business.
• 1:22:38
  And when you get the payment or when you get the cash flow back,
• 1:22:41
  you can repay the loan, get your Bitcoin out, or you can keep the
• 1:22:45
  loan open and Bitcoin appreciates overtime and at a
• 1:22:48
  future date you can sell a fraction of the Bitcoin to repay
• 1:22:51
  that loan. So in any event, it lets you
• 1:22:54
  hold on to good money and borrow money and spend, borrow bad
• 1:22:58
  money and spend that bad money while holding on to your good
• 1:23:01
  money. So anyone that's experienced a,
• 1:23:04
  you know, situation like we did in Venezuela learned, very
• 1:23:07
  learned the hard way that when you got dollars, the worst thing
• 1:23:11
  you could do was spend those dollars.
• 1:23:13
  If you could instead borrow. Bolivia doesn't spend that
• 1:23:15
  instead. So it's really a product that
• 1:23:19
  has been used, you know, through through eons and eons by
• 1:23:23
  humanity in order to hold on to good assets or good money and
• 1:23:28
  borrow weak assets or weak money.
• 1:23:31
  It's not different than a dollar mortgage on AUS property.
• 1:23:35
  This is just a way for you to mortgage your Bitcoin.
• 1:23:38
  Absolutely. And then also two guys like this
• 1:23:40
  is a non taxable event 'cause this is a loan by the way, like
• 1:23:44
  if Jeff Bezos or like Elon, right?
• 1:23:47
  Like one of the, one of the ways that you know, you always hear
• 1:23:49
  this like these billionaires, like they don't pay, you know,
• 1:23:52
  they don't pay these taxes. They're like what's going on?
• 1:23:54
  So what they do is that they take their stock, they take it
• 1:23:59
  to a bank and they say, hey, can you give me a loan against the
• 1:24:02
  stock? Take this stock as collateral
• 1:24:05
  and they get basically a cash loan.
• 1:24:08
  And because it's a loan that it's not a taxable event.
• 1:24:11
  So think of Bitcoin, you know, as this pristine collateral that
• 1:24:16
  you can you can use as a tool, but you have to do it
• 1:24:18
  responsibly. Now I do want to address some
• 1:24:21
  some questions in the chat. There was one on Rumble and
• 1:24:25
  there was 1 I believe on YouTube as well.
• 1:24:29
  Are these loans only for businesses?
• 1:24:30
  Are they for personal loans? So for addressing the Rumble,
• 1:24:33
  the question on Rumble and on YouTube, no, these are
• 1:24:35
  individual loans. No, no, we do.
• 1:24:38
  We do businesses too. So we, we can do business loans,
• 1:24:41
  we can do personal loans. We even service some publicly
• 1:24:44
  traded companies in fact that come to us because they can't
• 1:24:47
  offer or access bond markets with the ease that Michael does
• 1:24:50
  with with strategy. But we we list or we service
• 1:24:54
  publicly listed and private businesses and family trusts,
• 1:24:59
  etcetera and individuals as well.
• 1:25:02
  So if you're looking to onboard a business their contact us,
• 1:25:05
  contact our team would be happy to onboard that for you.
• 1:25:07
  But we can service your entity, your trust, your business, you
• 1:25:11
  as a person. And I, I see someone in the chat
• 1:25:13
  on Rumble 2 describing basically they're talking about a home
• 1:25:17
  loan. I know that you've facilitated
• 1:25:20
  that basically an OG Bitcoiner that didn't want to sell their
• 1:25:24
  Bitcoin and they essentially wanted to upgrade their house or
• 1:25:27
  buy a new house, probably because the wife and and looking
• 1:25:34
  at you Sophia. So and with the guilty face, she
• 1:25:42
  looks back and you guys have helped that you guys, you guys
• 1:25:46
  helped that OG Bitcoiner do that.
• 1:25:49
  Is that correct? That's right.
• 1:25:51
  So a lot, a lot of our clients are, you know, either
• 1:25:55
  entrepreneurs, self-employed or early Bitcoin investors and
• 1:25:59
  they're now Bitcoin retired. So when people are in that
• 1:26:03
  position, like I'll give you the example of a person that holds,
• 1:26:06
  you know, he's lucky. He's like, you know, ten $20
• 1:26:09
  million worth of Bitcoin and he doesn't have a job today clearly
• 1:26:12
  because why would you? So let's just say that person
• 1:26:15
  wants to buy a new house, right? Yeah.
• 1:26:17
  Or his wife, their family's growing.
• 1:26:18
  They had her second kid. They're they're trying to move
• 1:26:20
  it to a bigger place. That person typically will, the
• 1:26:22
  first thing they'll try to do is they'll go to their bank.
• 1:26:24
  That's who they've been with for their entire lives.
• 1:26:26
  And they'll say, I'm looking to buy this property.
• 1:26:29
  You know, I need a mortgage. What would you like as a down
• 1:26:31
  payment? And the bank will turn around
• 1:26:33
  and say, well, what's your income?
• 1:26:35
  And the person will say, oh, well, I don't have any income.
• 1:26:38
  I'm retired because I'm wealthy. I live off of my investments.
• 1:26:40
  And they'll show you, you know, you, you'll show them your
• 1:26:44
  Bitcoin position and they'll say, well, a, that's not an
• 1:26:47
  asset. And BI cannot lend you money
• 1:26:49
  because you have no income to buy the house.
• 1:26:52
  And then the person will say, but I have $10 million worth of
• 1:26:55
  Bitcoin. And the bank will turn around
• 1:26:56
  and say, that's not an asset and that's not income.
• 1:26:59
  I, I need to assess your income to, you know, let you buy the
• 1:27:02
  house. And so basically this person is
• 1:27:04
  shut, shunt out or shut out of traditional financing options
• 1:27:09
  and they don't want to sell their Bitcoin to buy their
• 1:27:11
  house. So they'll go to a place like
• 1:27:13
  Leaden where if the house is $1,000,000, they'll have to put
• 1:27:16
  $2,000,000 worth of Bitcoin collateral with us.
• 1:27:19
  We'll advance them the $1,000,000.
• 1:27:21
  We don't go under credit history.
• 1:27:23
  We don't check their credit record.
• 1:27:24
  For us, your Bitcoin is your creditworthiness.
• 1:27:27
  So you get the $1,000,000 you need, you buy the house.
• 1:27:30
  And the other benefit from that is that if you are using us
• 1:27:34
  because you are long Bitcoin and short dollars, the worst thing
• 1:27:37
  we could possibly do is to ask you to make U.S. dollar interest
• 1:27:40
  payments every month because that's precisely what you came
• 1:27:43
  to us for. You didn't have dollars, you
• 1:27:45
  borrowed them. So our loans by default in no
• 1:27:48
  format do they require or are you are obligated to make
• 1:27:51
  monthly interest payments every time the the cost or for the
• 1:27:55
  accrued interest for those loans accrues into the outstanding
• 1:27:58
  amount until you decide to repay that loan.
• 1:28:01
  And if you get to the end of the 12 month term and your loan to
• 1:28:04
  value is still under 60%, you can roll that loan into a new
• 1:28:08
  term also without having to make monthly interest payments.
• 1:28:11
  So I have clients that have had loans open for three and four
• 1:28:15
  years and they haven't made monthly interest payments.
• 1:28:17
  I think they've paid back down partially when they get a
• 1:28:20
  windfall that they can make a repayment at any time, but they
• 1:28:23
  just keep the loan rolled. They roll it and they roll it
• 1:28:26
  and they roll it many times. The value of their Bitcoin they
• 1:28:29
  put as collateral has far surpassed the value of the house
• 1:28:32
  that they paid for in the 1st place years ago.
• 1:28:35
  So it's a product that is designed for people and
• 1:28:38
  businesses living on a Bitcoin standard.
• 1:28:41
  And I think your point about no monthly interest payments is an
• 1:28:45
  important one because there's, you know, what companies that
• 1:28:49
  are seeing the success we're having after seven years of
• 1:28:52
  building this thing, a lot of companies are now starting to
• 1:28:55
  come into the space and, and you're wanting to participate,
• 1:28:58
  not because these products are new, they've been around for
• 1:29:01
  seven years, but they're coming in now because they see dollar
• 1:29:04
  signs and they want to take a, a slice out of what they think is
• 1:29:07
  it going to be a big pie. And I, I, the, the way they're
• 1:29:11
  trying to seduce most people away from a company like Lenin
• 1:29:15
  that's tested and proven has been doing this, really pioneer
• 1:29:18
  this, this thing seven years ago is by trying to say or offering,
• 1:29:21
  you know, sexy headline rates or, you know, hiding some fees
• 1:29:26
  in the fine print and offering you, you know, rates starting
• 1:29:29
  from X. But then when you go and say,
• 1:29:31
  OK, well, how do I make this loan similar to Lenin's where I
• 1:29:34
  don't need to make monthly payments, where the amount
• 1:29:37
  started this much and where I have the ability to redeem
• 1:29:40
  excess collateral? These things aren't available in
• 1:29:44
  these services or they don't offer them.
• 1:29:46
  But if they offer them, they offer them for a fee.
• 1:29:48
  And then when you add everything together, it works out to that
• 1:29:51
  loan being often times, most times more expensive than ours.
• 1:29:55
  And if not, at best, you're saving a few basis points to
• 1:29:58
  take a massive risk with a lending product that's been out
• 1:30:00
  for just months instead of seven years.
• 1:30:02
  Absolutely, and I think that's the key point to you guys like
• 1:30:05
  'cause I've seen it in the chat kind of live, like, you know,
• 1:30:08
  the last couple of weeks or so, just kind of major announcements
• 1:30:13
  by kind of different players in the space.
• 1:30:14
  They're trying to get into the Bitcoin collateralized loan
• 1:30:17
  game. And this is something that you
• 1:30:20
  guys have to understand about Leaden, right?
• 1:30:22
  It's a, it's a time, time and time and tested product.
• 1:30:26
  You guys have proof of reserves. I think that's incredibly
• 1:30:30
  important. No Monthly, no monthly interest
• 1:30:33
  payments, right? That's a big differentiator.
• 1:30:36
  And what I really, really appreciate about what you guys
• 1:30:39
  do as well, Mauricio, is you haven't forgotten our roots, my
• 1:30:42
  friend. So your guys minimal loan rate
• 1:30:45
  and I and I, we get this question all the time on simply,
• 1:30:48
  you guys go to 500 bucks is the minimum loan rate, right?
• 1:30:52
  So you're not seeing that anywhere else because everywhere
• 1:30:55
  else they see the dollar signs. Mauricio, you.
• 1:30:58
  You, you. You didn't.
• 1:30:59
  You didn't forget your roots, my friends.
• 1:31:02
  But I mean, listen, you, you can tell a lot about what, what
• 1:31:05
  anyone's trying to maximize for a lot more by what they do than
• 1:31:09
  by what they say, right? Like if somebody's telling you,
• 1:31:11
  you know, I want to bring a product for the people and the
• 1:31:14
  minimum amount is like 50K plus or even 10K plus.
• 1:31:17
  And the product is not accessible in places like Latin
• 1:31:21
  America or, or other parts of the world.
• 1:31:23
  Then this is not really you. You, you're not putting you,
• 1:31:26
  you're putting out a product that's that's designed to beef
• 1:31:30
  up a book by targeting large borrowers, right?
• 1:31:33
  You're not really trying to facilitate access to those who
• 1:31:38
  need it the most. So as you know, I think what
• 1:31:41
  what comes at odd sometimes is that they will, they will try to
• 1:31:43
  portray these solutions as sort of, you know, all-encompassing
• 1:31:47
  and done for the greater good and for the, you know, for the
• 1:31:50
  for the benefit of the people. But when the product comes out,
• 1:31:52
  they're not benefiting that people that they're talking
• 1:31:54
  about. They're benefiting the actually
• 1:31:56
  entire opposite side of the spectrum.
• 1:31:57
  And I'm not saying both people, both types of people.
• 1:32:00
  Everyone doesn't have a legitimate use for the product.
• 1:32:02
  Whether you're a billionaire or you're Miguel Medellin, both of
• 1:32:06
  you have a legitimate use case for this product.
• 1:32:08
  Both of you should have access to this product.
• 1:32:10
  I'm not trying to say one person is, is, you know, worthy and the
• 1:32:14
  other one isn't. What I'm trying to say is the
• 1:32:17
  hard part is servicing Miguel and Medellin.
• 1:32:20
  That's the real hard part. Servicing my goal, you know,
• 1:32:23
  with $1,000,000 loaned out of some US state, that's not hard.
• 1:32:26
  You, you have 5-6 loans, you'll have a book in the millions with
• 1:32:29
  like 10 clients. That's very easy to manage.
• 1:32:32
  That's very, you know, that's, that's very sort of simple to do
• 1:32:35
  relative to an operation that has to process loans as low as
• 1:32:39
  $500 in different parts of the world and manage that person
• 1:32:43
  when the market gets volatile and having the tech stack and
• 1:32:45
  the team that's designed to do that.
• 1:32:47
  So at Lenin, that was always our ethos we wanted to build and not
• 1:32:51
  only just for, for, for Miguel's sake in Medellin, if you're a
• 1:32:55
  person that has $1,000,000 and still wants to borrow, I would
• 1:32:58
  encourage everyone to try a $500 loan before they go, you know, 2
• 1:33:02
  feet deep, right? Like it is about accessibility.
• 1:33:05
  It is about making or getting the product closer to people and
• 1:33:09
  reducing the friction. It's not about cherry picking
• 1:33:11
  the, you know, the, the, the juiciest clients for, for a
• 1:33:15
  particular outcome. It's, it's, if you really want
• 1:33:18
  to do this, there's ways to do it.
• 1:33:19
  And I would argue that, you know, if, if you're going to
• 1:33:23
  come out and try to compete with Leadin, don't, don't do just the
• 1:33:27
  easy things like do the hard things too, like do the proof of
• 1:33:30
  reserves, do the small loans, try to get a more accessible to
• 1:33:33
  more people, right? Like I, I see a lot of people
• 1:33:35
  trying to say that, you know, we can, we can try to offer lower
• 1:33:39
  rates and they're hiding the fees in different terms, in
• 1:33:41
  different parts of the terms and conditions.
• 1:33:44
  But again, if you if you look down at the at the actual
• 1:33:46
  offering itself, it's it's not really intended to further the
• 1:33:50
  Bitcoin ethos in that when the way a lot of times it's
• 1:33:52
  portrayed. Yeah, absolutely.
• 1:33:55
  And I think it's pay attention to the fine print.
• 1:33:58
  And again, I think the clear differentiator, you know, the,
• 1:34:03
  the, the breakdown is again, proof of reserves, the
• 1:34:07
  transparency, right? The no monthly payments aspect
• 1:34:11
  of it. I think that to me is extremely
• 1:34:13
  important, right, 'cause I, as you mentioned earlier, and I,
• 1:34:16
  again, like I said, guys like I, I personally use this product.
• 1:34:19
  And I remember the first time I set up my loan and that was
• 1:34:22
  like, you know, getting handheld by Mauricio.
• 1:34:25
  And like, I was just like, all right, like, dude, like how do I
• 1:34:29
  like put in my bank account or something?
• 1:34:31
  And and you know, like, and it was just like, you know, it
• 1:34:33
  wasn't like it wasn't obvious to me, right?
• 1:34:36
  And it's so true because that's the whole point, right?
• 1:34:39
  Like you, you, you wanna, you, you need cash, right?
• 1:34:43
  And what would be the point of that if you have to give some of
• 1:34:46
  that cash away back monthly, right?
• 1:34:49
  So it kind of defeats, defeats the purpose.
• 1:34:51
  And again, this is a great tool, guys.
• 1:34:53
  I highly, highly recommend it. It's a great way to again, just
• 1:34:58
  not have to sell your Bitcoin. But I will caveat that with you
• 1:35:01
  have to be responsible. There was a great question up
• 1:35:04
  top and I do want to address it. I'll let Mauricio answer it.
• 1:35:08
  But basically BTC believer says if the if the price drops, do we
• 1:35:12
  have to put up more BTC as collateral or do we have to pay
• 1:35:17
  it back or lose the BTC we already have with you?
• 1:35:20
  Yeah, it's a great question. So BTC believer, as you well
• 1:35:23
  point out, the Bitcoin that we take as collateral is the only
• 1:35:27
  security we have on the loan. So we have to make sure that at
• 1:35:30
  no point the collateral you pledge to us drops below in
• 1:35:34
  value relative to the dollars led to you.
• 1:35:37
  So as the price of Bitcoin drops if your LTV, so your loan to
• 1:35:42
  value starts at 50%, we lend you 50% of the value of the Bitcoin
• 1:35:46
  you pledge as collateral. So if you pledge $1000, you'll
• 1:35:49
  get a $500 loan. As the value of that collateral
• 1:35:53
  drops, your loan to value ratio will increase.
• 1:35:56
  So it'll go from 50 to 60 to 70. When it reaches 70%, you'll
• 1:36:01
  start getting notifications that you need to add more Bitcoin or
• 1:36:04
  make a partial repayment to the loan.
• 1:36:05
  Either one of those actions reduces the loan to value.
• 1:36:09
  At Lenin, our hard and fast rule is if and when the loan gets to
• 1:36:13
  80% LTV, our system automatically sells as much
• 1:36:17
  Bitcoin as is needed to close a loan and returns whatever delta
• 1:36:21
  is remaining to your Bitcoin transaction account.
• 1:36:23
  So it's very important for you to and when you're taking out a
• 1:36:27
  let alone, you will also see what your indicative liquidation
• 1:36:30
  price is. So it's very important as you're
• 1:36:32
  taking a let alone that you never use your full amount of
• 1:36:35
  Bitcoin to collateralize that first loan because you must
• 1:36:38
  assume that for some market conditions, you will be asked to
• 1:36:40
  send more Bitcoin to protect that loan.
• 1:36:44
  And we have many options to help you do that.
• 1:36:46
  You can proactively over collateralize that.
• 1:36:48
  A lot of our clients do. Just because a loan starts at
• 1:36:51
  50% doesn't mean you can't send more Bitcoin.
• 1:36:53
  We're not going to stop you from doing that and drop your your
• 1:36:56
  margin or your liquidation price.
• 1:36:58
  A lot of our clients do that. You can also have an ad.
• 1:37:00
  There's also an address for each loan where you can send more
• 1:37:02
  Bitcoin throughout the loan while it's open.
• 1:37:04
  So if you're going to bed and you feel like the market's rocky
• 1:37:08
  and you think something might happen, you can also send extra
• 1:37:10
  Bitcoin to it just if you want to just be safe.
• 1:37:12
  And last, we have a feature called auto top up, which is
• 1:37:14
  unique the Latin as well, and it lets you park extra Bitcoin in
• 1:37:18
  our transaction account, which is effectively a cold wallet
• 1:37:21
  address where the assets are held in Bitco and you pre
• 1:37:24
  authorized Latin to move the big the Bitcoin on that account to
• 1:37:28
  your loan collateral address if and when it needs it.
• 1:37:31
  We've done, we've been in this business for seven years.
• 1:37:34
  I've heard many stories about bitcoiners going on cruises, on
• 1:37:37
  long hikes. They're not taking their
• 1:37:39
  hardware wallet. I'm going to be on an overnight
• 1:37:41
  flight. What happens to the market
• 1:37:42
  moves? So now you have the option to
• 1:37:44
  turn on auto top up if you need it.
• 1:37:46
  Importantly, the other important benefit of Lenin, which you
• 1:37:49
  should check with every any other lender.
• 1:37:51
  I don't think most of them allow you to do this.
• 1:37:53
  But in the same way you can send more Bitcoin and we ask you to
• 1:37:56
  send more Bitcoin as the price goes down, as the price of
• 1:37:59
  Bitcoin goes up and your load becomes over collateralized, you
• 1:38:02
  can take that excess Bitcoin off.
• 1:38:04
  So when your LTV goes below 30, you can there's a button that
• 1:38:08
  lights up on Lenin and you can redeem Lt.
• 1:38:10
  Bitcoin to bring it LTV back to 40%.
• 1:38:12
  So it's, it's, you know, it's even Stevens, as we like to say
• 1:38:15
  in the same way we need to, you need to send more on the way
• 1:38:17
  down. You can take off from the top on
• 1:38:19
  the way up again, things like auto top up, things like being
• 1:38:23
  able to redeem collateral, things like no monthly interest
• 1:38:25
  payments are all things that are let in are by default for free
• 1:38:29
  included into the fees that you're paying in.
• 1:38:32
  Other lenders, they'll try to strip these things out and make
• 1:38:35
  them into like extra payment benefits just so that they are
• 1:38:38
  able to show you a lower interest rate and try to in many
• 1:38:42
  cases fool you or mislead you to think that your all in cost is
• 1:38:46
  going to be much cheaper than working with us.
• 1:38:47
  Which in fact is is rarely the case.
• 1:38:51
  Absolutely. And, and one of the things that
• 1:38:53
  that made you guys survive because the Bitcoin
• 1:38:57
  collateralized loan industry when it first kind of popped on
• 1:39:01
  to the scene, right? And there's other players, I'm
• 1:39:04
  not going to name any names right now would be appropriate
• 1:39:07
  to play the soundboard, but I'm not, I'm not going to name any
• 1:39:15
  names. But when they first kind of came
• 1:39:18
  onto the scene, you know, a, a lot of them took shortcuts and
• 1:39:22
  you guys did it the right way. You guys didn't release a token
• 1:39:25
  for whatever reason, you know, like, and you guys did it the
• 1:39:29
  right way. And the reason that you guys are
• 1:39:31
  still around today, and this is the reason that you guys are our
• 1:39:34
  market leaders, right, 'cause you guys, you know, took it slow
• 1:39:38
  and steady. So before we wrap it up, I there
• 1:39:42
  is a question in the chat from Knoxville.
• 1:39:45
  He says it is Tennessee not allowed to borrow.
• 1:39:50
  From Tennessee at the moment the state that we are not, we don't
• 1:39:53
  lend into the state of Tennessee.
• 1:39:55
  We are working diligently to open up as many U.S. states as
• 1:39:58
  like as we can. We announced New York earlier
• 1:40:01
  this year. California lending license
• 1:40:03
  application went in earlier this year, so.
• 1:40:06
  You know, be patient with us. We're, we're trying to unlock
• 1:40:08
  our services in as many states as we can, as fast as we can.
• 1:40:12
  But it's, it's just a matter of, of, you know, prioritization
• 1:40:15
  and, and the demand we get from each state.
• 1:40:17
  I've heard loud and clear, we have a lot of people wanting us
• 1:40:20
  to get into Tennessee. So it is on our radar.
• 1:40:22
  We will keep you posted if we have any updates to share.
• 1:40:25
  And also I've also seen a bunch of questions in the chat about
• 1:40:28
  is let it eligible in Myspace or is is let it eligible in that in
• 1:40:33
  this particular country, there's a website where you can check if
• 1:40:36
  you just Google is let it available in my country, you'll
• 1:40:38
  get a link to our FAQs. You can input your country and
• 1:40:41
  there's a drop down and it tells you exactly which products are
• 1:40:43
  available in each country. Amazing amazing alright
• 1:40:48
  everybody well, if you guys enjoyed today's show, I do want
• 1:40:51
  to give a shout out to the live stream 3000 people watching live
• 1:40:54
  between YouTube and X and 257 of you guys watching live on rumble
• 1:40:59
  make sure to smash that like button.
• 1:41:01
  If you guys enjoyed today's content, wait, I totally forgot
• 1:41:04
  to say this, go to learn dot Lennon dot IO slash Simply.
• 1:41:07
  If you don't use that link, I get in trouble.
• 1:41:10
  So go to use that link and you get .25% off your first let in
• 1:41:15
  loan. If you don't use that link and
• 1:41:17
  you tell them that you came from simply Nico gets an e-mail.
• 1:41:20
  So use the link anyways. If you guys enjoyed the show,
• 1:41:23
  smash the like button and consider subscribing if you feel
• 1:41:26
  like we provided you value. I'm your host Nico.
• 1:41:28
  It's my Co host Opti and of course our special guest for
• 1:41:30
  today, Co founder of Let in Mauricio.
• 1:41:33
  Mauricio, thank you so much for joining us.
• 1:41:34
  Brother pleasure as always guys. Alright guys, we'll see you
• 1:41:38
  tomorrow for branding episode of Simply Bitcoin.
• 1:41:40
  Today's episode was brought to you by bitcoinwell.com, a
• 1:41:44
  Bitcoin only platform on a mission to enable financial
• 1:41:47
  independence.