Regulation coming to crypto? Market updates part 2 . #bitcoin

Recorded: June 8, 2023 Duration: 0:26:28

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Hey, can you guys hear now am I coming in good or am I so robotting? Definitely better than it was, but there's a little top in this on the end of that We can hear you now at least though. That's a good part That's my direction for sure. Yeah, yeah
I think man well there is a storm going on where I'm at right now South Florida tends to have these crazy storms going into the summertime with hurricane season there was actually like a small tornado
Um, about like 45 minutes away from me, which is pretty crazy, which is pretty crazy, man. Yeah, a little stop Lord. I definitely has its moments of Australia where it's just these complete crazy forces of nature that just come out of nowhere, you know, one minute
It's dundering and you know there's a lot of wind and all that stuff and then the next minute there's a rainbow and it's like clear sunny skies man. It's a bit strange but we can pick up where we left off Archimedes. I know you were gonna you were gonna follow up on what I was speaking upon.
Yeah, I think you're referring to the animals of security. Yeah, I mentioned that a little bit saying it's pretty insane that just staking its own kin to secure network and earn fees because of it. It apparently makes it a security. It's pretty obnoxious. And I know LandX was going to go into like
more detail because I unfortunately haven't read the papers too too much. But I don't know, it's kind of crazy to say that you can stake something already yield and it's a security because how is the US dollar not a security if that's the case? But yeah, Landx, you can pick up as to where you were.
Yeah, just to echo what you were saying. I found a lot of the language and again I've only scanned it so much, I haven't read it word for word quite yet, but some of the logic that was applied to define all of these coins that were listed as unregulated
securities was kind of baffling, honestly. And the two examples I gave were referencing cardanos bringing online of smart contract functionality, which on the surface level at least seems to be unrelated to a reasonable
expectation that a person or a group is going to produce a profit on the investment of the underlying asset. And then furthermore, I expanded that to talk about how BSD just because-- and that lines up perfectly with Parker Media's example of how is the US dollar and out of security.
Nobody has control over the institutions or the companies or the people who are willing to offer some kind of yield for US dollars, right? So To apply that to BUSD, I get it that BUSD's yield is
intrinsically tied for the most part to finance and finance extensions, but nonetheless I think it's a pretty thin argument and I think everybody realizes that and it's just more of this regulation by litigation where SEC is refusing to give clear
for cryptocurrencies to operate safely and know whether or not they need to register securities and instead kind of retroactively entraping them and saying, "Well, we got you because people can earn by holding your token, taking your token,
Okay, claiming gas fees for steering the network, whatever the case may be. It's pretty crazy. Yeah, really, it's baffling. And with the like the hearing in court case that Gary ends up just went through, I don't know how they cannot see this as a big slap in the face because everyone brought up arguments
against him not working with any of these companies and slowing the growth of crypto. And then I know it's not just him, but we're referring to the SEC as him right now. But he basically said screw that. Let's see you Coinbase and Binance anyway, even though they've been trying to work with us and I have not been
willing to work with them. It's pretty ridiculous. It's laughable at this point. That's realistically why I think it's just kicking the can down the roads for a CBDC. I mentioned touch on your point earlier because Bitcoin about USDC and BlackRock, like that being the prototype for a CBDC.
I'm in 100% agreeance with you. I've kind of been that way since I noticed that BlackRock was back in USDC because pretty much at any moment they could either pull their backing or push regulation on that specific stablecoin and that regulates about like 50% to 60% of the current market.
Do you guys think this is a scheme to kickstart FTX 2.0 get rid of Binance get your face by the throw and then just relaunch FTX and I don't want to get to fun speculation but that's a tenor
Yeah, that's the only thing that I can think of when I come when it comes to this stuff right because when you think of America right when you really think of a choke point it's Coinbase that's it's always Coinbase in 2017 it was the most downloaded and used
app, same thing occurred in quarter four of 21 coinbase was the most downloading app. So that's sort of the heart of the crypto industry within the United States. I definitely think it
it's a juicy target for regulation to speak, whether or not it's a conspiracy to relaunch FTX 2.0. I wouldn't hazard a guess, but I think you hit the nail on the head with targeting the head of the base, so to speak, with Coinbase, at least in
the United States. Yeah. Yeah, I totally agree. I wouldn't I wouldn't guess, but the that could be the way that the cookie crumbles. It seems to be that the development that's happening. Like I forget who spoke out and said that they were going, I don't know if
They took on a new CEO and they were planning on rebuilding it. I don't know if the assets were sold to somebody else. I don't exactly know what happened there. But there's definitely an opportunity for that exchange specifically to be rebuilt with regulators involved and potentially government officials involved.
And Coinbase or Binance, that's probably not going to happen. They want to get their hands in at the ground level and make sure that they have their own back doors and they're getting a piece of the pie. So it could definitely unfold like that. I don't necessarily want to say if it's a scheme or not, but who knows.
How do you guys think, personally, how do you guys think the American landscape for things like D5 is going to unravel after the election? Like if you guys had to take a bet, do you guys think it's going to be, you know,
what we see today where you can just go on Uniswap, go on some of these other exchanges as well and you know just have a good time or do you think there's actually going to be some some restrictions just like China had not so long ago.
I think the responsible answer has to be depends on who wins the election, right? So there's of course the case or campaign promises to come to fruition that are standing on a platform of creating this
narrative that cryptocurrency finances the phantom ill trade and cryptocurrency is the preferred method for money laundering amongst criminals. So if we get a candidate who ascribes to that, whether they personally do or not genuinely
But they make public statements to garner support. And then they get installed in the presidential seat. Then I think it's completely within the realm of expectation to see some kind of crack down and some pretty stiff regulation.
We got a little bit of the taste with it with tornado cash right however many months ago that was so I think it's not a far cry to Expand that type of aggression toward the broader crypto ecosystem if the right or wrong person depending on your personal viewpoint wins the election and on the flip
side of that coin, we could get someone who recognizes that cryptocurrency is an incredible economic opportunity for the United States and could be the building block or the needle in the haystack that secures or at least extends the
United States status as an economic world leader. So I think it has to just be, it depends on who wins the election. And I would never try to predict the outcome of that at this point. But I think it's definitely poised to be an extreme in one direction or another.
And light 2024. Yeah, totally agree. It's super dependent on who holds the big speaking stick and who represents the nation basically. Whatever extreme ideas that they have, whether it's extreme crypto adoption, which is
is obviously all for it, or if it's extreme crypto regulation or just destroy the entire space, it's really hard to predict which one is coming. But I think that's kind of the nature of crypto for the past two to three years. It seems like at every point, without each year,
There is some type of world event that's going on or some type of event that is threatening even the existence of cryptocurrency. Like as we know it, we've gotten past two, three years as of right now. Crypto could just kind of seems to be trucking along. But I think
going into next year, either way there's going to be some type of regulations coming to the space, whether that's extra taxes, like what we saw in India, or if that's protocols cracking down on US IPs, I could see that as the next step.
And, you know, there's obviously ways to get around that. You can still interact with D5 via VPNs. I'm not saying to escape regulations, but if you have money, you can still at least get it out if you need to. You can also still open non-KyC exchanges and exchange through there.
That's obviously for more emergency measures, but yeah, that's kind of where I see it, is protocols cracking down on IP addresses if necessary. Yeah, I want to mention as well how Kevin O'Leary put it up on the
So, I'm just making it comparable to radioactivity for institutional investors until I was thinking it was effectively addressed. Now, where are we at this before, man? Where have we heard this? You know, you hear this in bear markets and then the tone is
the top of bull markets. Kevin O'Leary has been prominent in the crypto side of things when it comes to institutional investors. For close to 10 years, he actually had a segment on a mainstream media newscast.
He was going into detail about Bitcoin, about Litecoin, and what blockchain technology is, and how it can be beneficial for the next generation as an investment vehicle.
mouth sit and then in 21 he's just all over SBF and FTX and Maddick and you know after the FTX collapse which I mean FTX was paying him $10 million a year just to chill it right that's insane you know he comes out of the woodwork and says the entire industry is just
Just horrible way guys. I just got a phone call for that. So I'm not sure why this keeps on happening, man. But I guess we need a Jim Kramer when it comes to when it comes to crypto. You need you kind of need those personalities that are really like loud and
show some social entertainment aspects to the space. I just find it very weird and I understand that people want to see quote unquote institutional adoption but we have the institutions come out in 2021 and 2022 was a result.
those entities coming in just being over leveraged to the act of hope and those same institutions all getting up on on Dauquan and that took the industry as we knew
it last year down and in part they liquidated themselves. So there's a lot of hypocrisy going on in the air and hopefully by the decade
We can move past these crazy shows, but I don't know, man, I kind of feel like crypto always have these high volatility events and news. What do you guys think about that? Do you think crypto is always going to remain this wild
Wild West or do you think it's going to be sort of like the tech market where you still have those high volatile events, but it's more broadly and generally accepted.
It's going to always have a tie volatile events. That's super dependent on the velocity of the technology and the velocity at which things change. In traditional finance, you have commodities, soy beans, sugar, whatever. You're not going to really see too much volatility there, but then you have gold and silver.
little bit more volatile than commodities. And then as you change the space and risk level of the assets, you're going to see higher volatility. So obviously tech and biotech representing some of the most volatile assets in the current market besides crypto. And obviously crypto moves 10 times faster than the stock market.
open 24/7 so there's always going to be more volatility there. And then AI is kind of that new technology that's even faster than Kripto. So it's going to be even more volatile on how fast things move. That's kind of my opinion on that.
I have to agree with our comedies. I mean, if you're long-term bullish on the technology, on blockchain technology, which I think most people are, and its intrinsic value is somewhat undeniable, just as the general progression of the world and humans.
from a technological standpoint, the benefits of blockchain technology are pretty indisputable. So regardless of what happens on the regulation side of things regarding profit and the financial aspects that are attached to this underlying technological advancement, it's
going to grow because there's a use for it, the transparency, the immutable ledger, all of these different reasons cryptocurrency caught on in the first place will continue to grow. So I think as adoption spreads and people begin to, or more people begin to adopt the use of this technology, not that it's absent as
it is. I mean, we know that there are tons of infrastructure projects used by private companies like IBM and Home Depot regarding supply line tracing and things like that. So we have the fundamental use case, we have the solution, and I think as we progress toward
making that solution a household item and a household talking point then the market cap is going to grow right and as a market cap grows volatility is going to reduce it's just like when you look at a coin that's ranked 568 by market cap it's going to be more volatile
than those in the top 10. Just sheer averages. The numbers involved are as they get greater volatility tends to scale down because it takes more money to move those numbers up and down. So I think we have a decrease in volatility in the long run crypto, but Archimedes is absolutely right.
and saying that it's going to remain one of the most volatile asset classes. It's going to be, I think to answer your question, I see it being more of a inline with the performance of tech stocks, with those volatile events every now and then, but I don't think in 10 years
It's going to look anything like it looks right now with the wild swings and volatility in these drastic crashes and parabolic pumps that we've come to expect out of the crypto market. And it's the reason a lot of people get into the space in the first place from an investment standpoint. But I think that's where we're headed.
I totally agree. In my opinion, the worst case scenario for cryptocurrency, maybe currencies in tokens might die, meme coins disappear. But worst case scenario is the general public
It makes their lives easier because these transactions and submissions are taking 5, 10, 15, 20 minutes instead of who knows, 3 months or 5 months for home loans. That's my worst case scenario. Like, yeah, Cryptocurrency might die, but...
Ultimately, traditional finance should be on the blockchain. It needs to revolutionize and change. Beautiful man, that's awesome. So I guess to wrap up this space, I wanted to ask you guys a personal question.
I know it's like a question for the last couple of months. So it's more of a question because of the conversation. It's pretty nice, man. It's been nice, guys. So we'd love to know that.
Not sure I caught enough of the question to give an accurate response. Archimedes, did you catch most of that? No, I think he was trying to wrap up with... Can you guys hear me? Yeah, we can. Oh, okay, yeah. Gosh, sorry about that, guys. I just don't want to get...
Rucked again as well, but I just want to know how you guys got into crypto. What was your moment that made you realize that you know, I'm gonna be in here for the long term Yeah, so kind of on a personal level I invested in Ethereum thinking the second half of 2000
2017 I I bought some some if don't remember where I heard about it honestly at the time but I was coaching at a gym and I forgot about it for six or eight months and then one of the other coaches at the gym came up and and said hey, you still have
had a theory and I said, "Yeah." And he told me I needed to check it and the price had gone up, I don't know, 10X or something. So that's what first got me interested. And crypto was the purely speculative financial aspect of it. But I started following it more closely than
and that just kind of led to a natural organic evolution into becoming interested in the technology and maybe three and a half years ago I had a career change went from an academic career to a tech career and in doing that I got even more
interested in the fundamental technological aspects of cryptocurrency and started to learn more about it. And just, you know, I believe that there are undeniable advantages to blockchain technology and that it's just another part of the natural evolution of
of society moving to take advantage of the limitations that we're bumping up against. Pushing the limit would be a better way to say it. Pushing the limits of what we're able to do. So it was always pretty organic to me. I just found it interesting, got involved because of the finance and stuck around for the tech.
Yeah, exactly. I don't personal level up super similar kind of became obsessed with that world wonder called compound interest. I'm just got into personal finance got into investing and trading pretty early on. Eventually discovered the Ethereum around the same time like 2017-28.
Teenish, you know, made a little bit from that and then kind of got really interested in the technology like what's actually going on here. And then I'm of the mindset where things are kind of moving to the digitized space and I kind of believe in the tokenization of most real world
world assets. There's no reason why you need to wait three days for money to deposit in your bank account. There's no reason to wait for a third party to confirm your signature on a piece of paper or something like that. So I fully support the digitization of contracts.
So I guess that's more NFT based God forbid I say say NFT, but I don't really believe in the current space that we're in for NFTs, but the future tokenization of real world assets is a huge driver for why I'm even in the space and that's why
That's partially why I'm at AR communities as well. That's the long-term vision utilizing like T-bills or other real-world assets in a protocol where users can come in and leverage their money and be capital-efficient with their own bank account or savings accounts.
Beautiful man, and I completely understand that and you know it's been great speaking with you guys and you know I look forward to having you guys on the panel over the coming months throughout the summertime so I want to thank you guys so much and thank you to our audience for coming to
to part two. I know the first part got rugged either through Twitter spaces or the crazy weather going on here in South Florida. Perhaps a combination of both, but it was a pleasure speaking with you guys and for the individuals in the audience, if you enjoyed
this conversation feel free to give us a follow and if you guys want to get more in depth about what it is we're doing here because Bitcoin feel free to subscribe to our newsletter all those links are down below and our bio and yeah landaxe archa-metees it was a great time talking
and shop with you and looking forward to future conversations. Thank you all so much and yeah, God bless you, your family and your friends. Yeah, much appreciated. Great to be here. Excellent conversation. Very nice to meet you, Archimedes.
Please look forward to coming back around and talking again. Yeah, likewise, pleasure to meet you guys. Pleasure to ironically meet another another Kyle in the space, randomly. But appreciate you having us up here because Bitcoin. Thanks again.