Oh, potential game changer for cryptocurrencies as Harvard comes out and suggests that central banks should hold cryptocurrency in particular. Bitcoin will talk about why in just a moment. We'll also talk about what's going on with CZ and Binance. Why can we not unwrap our wrapped a Bitcoin and what's going on with the Dpeg? We had a little bit of pain over on the Cardano network and I can't believe this. But next, Wednesday the New York Times is actually doing a deal. Book a summit. There will be attendees like Mark Zuckerberg President Zielinski from Ukraine and Janet Yellen from the Treasury. Department all alongside Sam Bankman Fraud I mean freed. Yeah, for some reason, the New York Times the same organization that put together a wonderful puff piece on Sam Bankman Freed. not at all or remotely calling him criminally negligent for the failure to ensure the safe keeping of their customers ask sets, but instead promoting that. He just made a mistake. Me, it all seems pretty disgusting, but let's hit some of the updates first. it is: Black Friday That means the biggest coupon code is expiring today for the programs. I'm Building your wealth. Remember when you join, you guarantee the best price and lifetime access to the programs on building your wealth. All new lectures lifetime access to anytime I add a lecture, you lock that in, and of course you get access to the Daily course member. live streams linked Down Below in the course member Elite Hustlers Course for increasing your Income drops all of its lectures today and probably later this afternoon. So with that said, let's get into the updates. The biggest issue of concern today has to do with Bitcoin and Wrapped Bitcoin which is basically Bitcoin on the Ethereum network Bitcoin right now is sitting at a 16 491, but wrapped Bitcoin is sitting about 200 below that. That is a side of a d Peg And a lot of folks on multiple different platforms have been complaining about having issues moving their wrapped Bitcoin to Bitcoin. This is a dangerous depeg. that could be the sign of issues with underlying Wrapped Bitcoin to Bitcoin liquidity. What that means is if all of a sudden, some institutions like maybe let's just say coin list don't have enough Bitcoin to give you and you ask them hey I Want to trade my wrapped Bitcoin for Bitcoin but they don't have enough and they can't facilitate this transaction. We start wondering if these companies have liquidity concerns, which causes a little bit more of a panic in the markets. And when markets start panicking, they start dumping the value or they start trying to dump their asset even if it means dumping it for a discount. That's potentially what you're seeing with rap. Bitcoin When you see a deep Peg it means some individual are saying I will sell my Wbtc for less than it's actually supposed to be worth. Which it's supposed to be worth one to one to Bitcoin I'll sell it for less just to get the liquidity to get my money out. the larger that Gap goes, the more Panic you tend to see. But what we have today is quotes from Coin List. A lot of fud going around that we would like to address. Head on. Coin List is not insolvent, a liquid, or near bankruptcy. We're just experiencing technical issues that are affecting deposit and withdrawals. This has to smell like the largest I've ever read in my life. It's almost as bad as FTX saying we're fine, no problems with withdrawals, and then a few days later we're freezing with rituals and then a few days later we're going bankrupt. It's the same thing blockfy said literally In one day Blockify went from everything's Fine to we have to freeze all withdrawals. It's not fine. You can't trust this. You've got to get off exchange. It's so important. Of course, Coinless says they're working on updating their internal Ledger systems and that this is just purely a technical issue. Don't worry, it's by no means a liquidity crunch. Of course it's stuff like this that is leading to companies like Binance suggesting you know what we will do whatever we need to do to make sure we have a Recovery Fund for startups basically being like the Central Bank the Jerome Powell So that way if companies go bust, we'll bail them out. Of course, the problem with not being a central bank is you could also run out of money. See the old Jerome Powell of crypto was Sam Bankman freed. who's now Sam Bankman broke Now the new one in town seems to be Binance and this kind of shady guy seesy Now some people say hey man, that's offensive to an OG Let me put it this way, if you're hiding in Dubai you refuse to come to the United States because you're getting investigated in the United, States, the UK Singapore and pretty much anywhere else around the world. And when reporters show up to your offices, you tell them, oh, nobody's here because of Covid in 2022 and then you do a virtual tour and you tell people. Well, I mean it's all sparse around here because people are working from home. Let's just say, there's reason to be a little sussed out about your business operations over at Binance. But I Understand the desire to be a Central Bank In fact, central banks bail out Banks So that way customers don't lose their assets when the banks go bust because they do stupid risky. The same thing is true in Crypto ex. that is, companies do stupid and risky stuff. The difference is, you could end up having a Binance come in be like oh yeah, don't worry. Ah, we'll bail out FTX Let's look at those books. Oh God This is way worse than expected. Never mind. And then the company goes bankrupt and people lose their money. This is terrible. You can't trust the crypto exchange. It's not your keys, not your crypto get off exchanges. We've been saying that for years on the channel. That doesn't mean you can't use an exchange to transact and buy, but in general get off as soon as possible. Now CZ is offering a two billion dollar Now bailout fund. But when you actually look at some of the details of this bailout fund, it starts looking a little bit more shady. Again, when you actually look at the details, you see that CZ Actually success Quote: quote suggests quote. We're going with a loose approach where different industry players will contribute as they wish. and then when it comes to mentioning different industry players, we get companies like Jump Crypto, Polygon, Ventures Aptos Labos, Uh, Anna Mocha, Brands GSR Cronus and Booker. All of them together are making a very, very large pledge of 50 million dollars. Which is less than two and a half percent of the two billion dollars CZ is hoping to raise. Czs indicated they're willing to contribute one billion dollars themselves. Maybe they can raise up to two billion dollars. but in my opinion, this whole Industry Recovery initiative is a farce. I Don't believe it. First of all, it's disgusting enough that most of the money in the Seifu fund over at Binance is the binance token. Which the problem with that is if Finance has Financial issues, the binance token will go to zero very very quickly. just like we saw the Ftt token collapse. and then the value of the Safu fund is basically worthless. And if the Industry Recovery initiative is also funded with binance token, if even then there is no Industry Recovery initiative, if the binance token goes down scary I would not hang my hat and certainly put my money, which certainly would not put my money on a situation like this. especially when Genesis is looking for emergency funding given their 2.8 billion dollars in debt reportedly trying to raise at least a billion dollars just to survive. Now as we talked about in my last video, I don't expect that the Grayscale Bitcoin trust will be going bankrupt I Actually think there's potentially an opportunity to buy the Bitcoin uh, grayscale Bitcoin trust unless of course you think Bitcoin is going to drop even more. The discount for net asset value is pretty nice looking at about a 40 to 45 percent discount uh, from net asset value because of liquidity constraints. Now on the flip side though, it could also be a warning sign that what if crypto prices are going to Trend down even more because there ends up being a larger bankruptcy if Genesis goes? What if they end up taking down another brokerage? What if 10 other brokerages go down and they end up taking down Finance The binance token goes down well, then Bitcoin might not be at 16 000 anymore. It might be at eight or four or two thousand. And so that's potentially what the Binance token is starting to warn us of is that if we see a 45 decline in Bitcoin prices, we might be under 10k. Now the good news though, is it's not all bad news. In fact, Belgium just announced that they believe that Bitcoin and Ethereum are not Securities, which is actually very huge. See, they argue that any issued cryptocurrency backed or created solely by computer code are not Securities. This is a big deal because there's been a lot of rumor around what the SEC is going to declare a security or not right now. It's the opinion of Gary Gensler the chairperson of the SEC Not an official opinion that BTC is not a security, but that Ethereum could be a security because staking could be deemed like a Lending Service And and potentially you're worried about the common Enterprise concern of Lido for example, holding over 30 percent control over Ethereum because so many people have staked Ethereum 1.0 before the merge with Lido. However, this news from Uh from Belgium is a really interesting argument that basically something is a security if it's issued by an individual or an entity like maybe the FDT token or the BNB token, but not BTC or Ethereum according to Belgium because they are not issued by an individual or an entity. that potentially suggests these coins would be more of part of the public domain, which is actually good. We don't want them to be considered Securities Now look at this though: hedging sanctions, risk, Cryptocurrency and Central Bank Reserves a paper put together by Matthew F over at the Department of Economics at Harvard University published just a few days ago, central banks may consider holding more assets in cryptocurrency specifically Bitcoin as a way to hedge the risk of U.S Sanctions Consider for example, when Russia was sanctioned when Russia was sanctioned which is the 11th largest economy in the world and these sanctions have never, ever been seen before On this sort of scale, Russia had potentially lost about half of their International reserves due to sanctions being freezing their assets had they had some Diversified risk into. let's say Bitcoin maybe you could actually call Bitcoin a safe haven asset which you might say that Fiat currency and U.S treasuries are no longer a safe haven asset, especially if you're a country like North Korea Russia or Iran countries that might be interested in actually holding Bitcoin along with gold to diversify away from the risk of being able to control be controlled by the United States. They also talk about how there is obviously some risk in holding Bitcoin due to price volatility, but that could potentially be Diversified away. And in addition to this, as long as Fiat does not or send, central banks don't actually control the blockchain, there are a lot of opportunities to transact both on-chain and off chain. In fact, there's a page a piece here by Luckner Reinhardt and Rogoff I Thought this one was very, very interesting. They talk about how there are peer-to-peer transfer networks like Localbitcoins.com that allows you to essentially conduct transactions off chain that end up getting bundled together. uh, and in on chain transactions, but are actually off-chain transactions. And through these methods, you're able to uh, transact and kind of conceal some of the activity uh, that you're performing. Uh, potentially off chain. Which could be kind of useful. maybe? uh, for entities like central banks who aren't interested in seeing all of their transactions, uh, monitored. Uh, which is kind of interesting because you'd think central banks should be transparent, but then they could Also, as this paper argues, receive a lot of scrutiny for where they're parking their reserves or what they're doing with them. They also make the argument that you have to be careful of other coins, like for example, Axi Infinity because Axi for example, and the Uh 600 million dollars worth of Ether that were stolen from the Axi Infinity Hack ended up having the US Treasury Department sanctioned the digital wallet used in the hack, which shows you that if the Treasure Department has that kind of control, it's not as decentralized as it should be. Again, leading to the potential that Bitcoin might be the most hack resistant, secure, and decentralized. Tool even above the proof of stake system that Ethereum now uses. and even though it'd be very expensive and difficult to take control of that Ethereum Network Or to have any kind of controlling uh, uh, essentially, uh, power within the Ethereum network, you'd have to spend a whole substantial sum of money. As they say here, half of Ethereum's market cap is about 92 billion dollars, but in theory a country could take control of a half and then Institute a hard fork and have a lot more control over Ethereum. Although it would be expensive than they would have control over the very decentralized Bitcoin Network Kind of an interesting piece here by Harvard Honestly, and they wrap up by saying, hey, you know what, This is a real consideration in the face of sanctions: That Central banks Diversified not only amongst gold, but also crypto. and while gold is great and universally accepted, it's really difficult to buy and store in in its physical capacity. it's heavy to ship around and deal with, and it's easy to lose. And it's a lot less liquid than cryptocurrency, which can obviously be transferred over the blockchain pretty dang, quickly and inexpensively. Another risk, though to this idea of using cryptocurrency as a reserve is the potential rise of the Renminbi the Chinese currency as a currency Reserve asset. Reason for this is the Redmond B is pegged to the US dollar, so some countries might actually use the Renminbi as a proxy to the dollar, even though there can be fluctuations in that Peg. But the countries like Russia might suggest or or feel safer investing in the Chinese currency than they potentially might investing in dollar backed assets like treasuries. Fascinating. What's also interesting is Cardano's stablecoin attempt. Ardana, which was going to be labeled D U S T, is apparently shutting down. Not enough money to keep the project going. Some complaining that the Cardano network is just too complicated to code on. although Charles Hoskinson obviously is uh, vigorously defending the Cardano network, suggesting he lost about 500 000 on the Ardana project. and Uh is Uh is is still helpful for stable coins to come to Uh Cardano and that covers it. That's our news for today. Check out those programs on building your wealth in the 60 off coupon code. Thanks for watching. We'll see in the next one. subscribe if you want more content like this. Thanks, goodbye.