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@gwho

Жыл бұрын

@@vardekpetrovic9716 "for the most case noone knew they were part of such an volatile market. " you actually believe this? literally everyone knows crypto is more volatile. maybe that's why you lost 1.2 million.

@ArawnOfAnnwn

Жыл бұрын

@@gwho He means they didn't know where their funds were investing. Pension and retirement funds are supposed to be conservative with their investments, but it seems some weren't. The people using these funds don't micro-analyse where they put the money, just as customers of a bank don't check the banks financial reports. These are institutions that're taken to be safe precisely because they're meant to stay away from markets like crypto. It's the fund managers who betrayed that trust.

@williamhatfield8935

Жыл бұрын

A far too complicated explanation of this speculative bubble called crypto which has zero lawful use and less value.

@dennisbarnes9569

Жыл бұрын

Sam bank man fried not Sam fried bank man

@user12122

Жыл бұрын

Binance is next

I love how Joeri refuses to get SBF's name right.

@PutXi_Whipped

Жыл бұрын

Patrick Boyle is rubbing off on him

@me0101001000

Жыл бұрын

@@PutXi_Whipped I'd love to see Patrick on his show again, cracking dry jokes at crypto bros

@stefanfrankel8157

Жыл бұрын

I was wondering if that was intentional.

@IBMboy

Жыл бұрын

he avoids invoking his spirit

@me0101001000

Жыл бұрын

@@stefanfrankel8157 it was definitely intentional

Imagine Warren Buffet, every decade getting these new kids telling him how they found a way to grow and harvest money trees

@gabbar51ngh

Жыл бұрын

They would have been if they shifted all that money to a safe investment after making record profits. Instead they thought money train won't be having any stops.

@kevinc8955

Жыл бұрын

@@gabbar51ngh what you’re describing is not investing. It’s musical chairs gambling.

@gabbar51ngh

Жыл бұрын

@@kevinc8955 depending on the market some are indeed musical chairs. There's reason derivatives market was called financial weapons of mass destruction by Warren Buffett. Not everyone's a passive investor who just puts his money in index or mutual funds looking to get a bit more out of his savings. Numerous invested in these cryptos and pulled the money earlier so they are still enjoying it's profits. Any investment with high profits is potentially risky not just cryptos. You even see it in bond market when you realise high profit bonds are considered poor due to higher risk of default.

@mam0lechinookclan607

Жыл бұрын

@@gabbar51ngh that is just a pull out scam, hot potato with way to much money

@gabbar51ngh

Жыл бұрын

@@mam0lechinookclan607 They could have at least diversified it into some safer investments than just putting it all on crypto. It was a dumb investing decision by them irrespective of crypto involvement or not.

somehow dogecoin was the most honest crypto this entire time… the value was always memes

@tomlxyz

Жыл бұрын

In intention, maybe but eventually it got speculative

@dogedogego

Жыл бұрын

@@tomlxyz still more honest as it was and still is pure “memetic” value

@rockfire1669

Жыл бұрын

@@tomlxyzI mean technically he is not wrong with his statement. I never heard official doge ever take itself seriously and always banked on the meme value(don’t know it’s current state, only know as of like 1.5 years ago)

@rockfire1669

Жыл бұрын

Only a technically tho, if you are the working class you should view doge coin as also doing it purposefully

@kayakMike1000

Жыл бұрын

To the Moooooon!

Missed opportunity: the hypothetical example should have been "Straight Arrow" vs "Broken Arrow" 🤣🤣🤣

@krissp8712

Жыл бұрын

🤯 💥 Excessive leverage really does seem like a nuclear self own!

@mikebaker2436

Жыл бұрын

@@krissp8712 Definitely radioactive.

@oohhboy-funhouse

Жыл бұрын

John Woo wants his movie title back.

@ryansutedjo6704

Жыл бұрын

Or skyrim's arrow to the knee

Sham Bankrupt Fraud is the greatest mocking nickname I've ever heard.

@steffen1405

Жыл бұрын

I thought it was 'Scam' 😅

@Horendus123

Жыл бұрын

Since hearing a few days ago Iv been thinking the same thing. Its just genius. Scam/sham interchangeable in my books. Both perfect

@franciscodanconia4324

Жыл бұрын

@@steffen1405sham does alliterate with Sam better. Almost sounds like Sean Connery saying his name.

And crypto bros used to say crypto will boom in a high inflation environment. 😂

@kushalvora7682

Жыл бұрын

I mean it did go boom. Just not the kind of boom they were claiming.

@jeffhicks8428

Жыл бұрын

crypto bros are even worse than gold bugs. They woud say it booms in any environment because they understand nothing. Crypto is a product of QE and ZIRP. It along with shitcos like Tesla are the poster children for massive zombie economy bubble misallocation of capital.

@mikebaker2436

Жыл бұрын

When things collapse, what sound do they make? 😉

@johnflatt1288

Жыл бұрын

I love how the logic is that people losing purchasing power via inflation will for some reason put their precious money in a volatile speculative asset. I mean the crypto market is propped up by these big players, but how will it ever recover if retail investors are poorer and have already been bitten by this rotten system already. Are they supposed to trust any of these scammers? And before somebody says cold wallet-that immediately turns off most retail investors who already barely understand it. These exchanges gave them easy access

@LeadLeftLeon

Жыл бұрын

It did in 2021 when we saw all those price increases

That ending/blooper was absolute perfection.

Please ignore the Amazon crypto coin spam comments!

@MoneyMacro

Жыл бұрын

And all other bot comments (I will try to delete them when I get back to a desktop computer)

@mikebaker2436

Жыл бұрын

@@MoneyMacro Hey, maybe if crpto falls far enough, the bots will give us our comment section back. 🤣🤣🤣

@DaBaSoftware

Жыл бұрын

Had to scroll a while to see this comment. Top comment is about AZ whatever numbers and letters with nearly as many likes as this vid within an hour. Hmm.

@franklinhirsch1654

Жыл бұрын

Why did you pronounce it Sam Friedman-Bank? Lmao

@DaBaSoftware

Жыл бұрын

@@franklinhirsch1654 because he's a fried man and fried his bank

The bigger story isn't about debt, contagion, regulations, or SBF - it's all about Digital Ponzi Tulips.

@lesleyjohnson8488

Жыл бұрын

Hahahaha😂

Your ability to do research, condense the info, make it presentable and easy to understand is top notch 👏👏

@neofett9

Жыл бұрын

He didn’t even get Sam Bankman-Fried’s name right

@lesleyjohnson8488

Жыл бұрын

@@neofett9 I get the feeling it was on purpose 😂

15:30 Seamless rhetorical recovery when not all the desk dominoes fall. A true professional presenter! 🤣

@MoneyMacro

Жыл бұрын

Hahaha. It was unexpected. I'll admit

@mikebaker2436

Жыл бұрын

@@MoneyMacro An amateur would have redone the take. Instead, we got more analogy and a later callback in the later knockdown. Legend. 🤣🤣🤣

My old man worked in finance (banking and insurance), and I've always been annoyed at how often people who talk about markets misunderstand even the basic core concepts, or clearly exaggerate them for their own benefit. You're right often enough about the small things that I'm willing to trust you on the big things. I've watched 6-7 of your videos, but now you've convinced me. All I have to give is my like and subscribe. Dankie.

Another part I don't see many people talking about is that FTX was partly exposed and the exposure boosted by a direct competitor (I think Binance). I think they thought they would get rid of a rival, but may well collapse the whole rotten business.

@mikebaker2436

Жыл бұрын

Yes, It's clear that FTX was more lucky and crooked than smart. You are touching on a rarely understood aspect of business... that sometimes your competition is symbiotic and is actually keeping you afloat (sometimes unintentionally and sometimes intentionally).

@SoulDuckling126

Жыл бұрын

Just like Boeing wouldn't shit on Airbus (or vice versa) even if that means more airplanes sold at the expense of their competitor, because it'll spread fear of their products.

@tomlxyz

Жыл бұрын

@@mikebaker2436 when is that the case other than in finance?

@toolegittoquit_001

Жыл бұрын

This isn't correct. CZ reached out to SBF several times because he knew something wasn't right. He only sold his (FTT) tokens after he received no response from SBF. The FTT tokens he sold were his own and he could sell them when he wanted. And do recall that Caroline offered to buy them all at $22.

@mikebaker2436

Жыл бұрын

@@tomlxyz Probably the easiest example would be industrial symbiosis between complex multinational companies... where reducing competitor's marketshare in one industry, reduces supply or services for your own subsidiary.

Superb video! Also, Sam Bankman tried to bail out those other exchanges to prevent his FTT tokens from being liquidated.

@WillyWanka

Жыл бұрын

... Proving he knew the fraud

@otmanh

Жыл бұрын

Can you elaborate Please? I dont get it really 🙈

@cdreid9999

Жыл бұрын

@@otmanh so ..this will sound insane. (Coffeezilla explains it better) Ftx created ftt and gave out FTT as colateral. This is insane. It means that if ftx drops in value at all it immediately begins a death spiral. This absolutely wouldnt be allowed in the financial markets and the company would be laughed off wall street

@kettelbe

Жыл бұрын

@@cdreid9999 fucking regulationsssss

@jmsjms296

Жыл бұрын

@@kettelbe Losing your mind?

Super grateful for these videos. I feel like I’m in an Ivy League economics class every time I watch

havent watched it all yet but THANK YOU I've been looking forward to your video on this knowing that you'd be taking a macro look at it :D Thank you so much Joeri!

Thank you for this amazing, clear, and humorous explanation! I loved the "another big round of direct contagion" at 16:27!

Hahaha love the blooper at the end!

Thanks a lot Joeri!

By far my favorite economics/"finance" channel

Such a great and knowledgeable video.

The return *OF* your money is more important than the return *ON* your money. - Will Rogers

@deeptoot1453

Жыл бұрын

Warren buffet rule #1 "don't lose money" Rule #2 "Don't lose money"

This is a good video (so far... still watching). It is contributing a neglected macro perspective to the current crypto problems.

@jeffhicks8428

Жыл бұрын

Macro perspective is simple. Crypto is a ponzi scheme bubble which could only exist in a ZIRP world of endless monetary expansion. Fed policy is what enabled this to happen so perhaps the fed should continue to suck liquidity and raise rates until all crypto scum vanishes from this earth.

@oiinahgiiusadurrybrahchuck7209

Жыл бұрын

Attributing*?

Amazing video. Thank you :)

Great video Joeri!

WHOA SO MUCH CONTENT IN A SHORT TIME!

Always good stuff

Really good video! 👍 Though small nitpick. Unlike Celcius, FTX did NOT offer high interest loan. What they do is leveraging using funds that were not supposed to be leveraged. This means FTX could get in full legal trouble (Celcius used the "unsecured loan" loophole).

@IvarDaigon

Жыл бұрын

yes they did their product was called FTX Earn.. and even though some users were not using it. many were.

@lonyo5377

Жыл бұрын

@@IvarDaigon per SBF, there was no way of separating deposited funds between the types of depositors so all funds were treated the same. This also meant people making withdrawal requests from a loaned pool were getting the money of non loaned depositors rather than taking a hit.

@IvarDaigon

Жыл бұрын

@@lonyo5377 yep and that's one good reason why you should never give your tokens to an any company that engages in speculative trading unless you're willing to accept the risks because even if the tokens are held in separate, buckets the temptation is too great for the management to temporarily 'borrow' those funds in order to cover short term losses. As soon as your tokens are in a wallet that you yourself don't control there is always a risk of theft, loss or mismanagement. Crypto firms are not banks, they are not 'too big to fail' and they are not going to get any government bailouts if they collapse.

Very insightful well done report

You have a real talent for explaining difficult concepts in a clear and understandable way.

@madjunac

Жыл бұрын

I consider myself to be a little above the average (when speaking of intelligence). But I really lose grasp after only a few sentences when I watch videos like this. I think that everyone one of them lack the concept of initial logic. And afterwards, everything is tangled up in economic slang. I'm convinced that everyone with the thorough knowledge of the theme speaking about can explain (that particular theme) in a few simple sentences. I've never heard anyone speaking about Crypto in a plain English. Behind Crypto is a simple addition and subtraction mathematics. It looks like I'll have to wait for someone to dumb it down for me

@jmsjms296

Жыл бұрын

@@madjunac If you're so smart, why not try harder and get your own synthesis done?

@madjunac

Жыл бұрын

@@jmsjms296 what a cool tip...

Amazing breakdown with included history.

Great content. Thanks. A point of style: you don't have to keep your hands in the air the entire time.

This is like a children's show teaching banking. I love it!

Lol! You keep calling him Friedman Bank and not Bankman Fried! 😂

The issue with crypto is that most investors practice this new trendy innovative investment approach I call 'brainless'

This video is great!!!!!

Really good video

Hey Jouri, Thank you for this clear video. Every now and then I have a discussion with some friends on the term "crypto investment". I personally am of the opinion that you can't invest in crypto by buying crypto currencies but can only speculate.- It is possible to invest in crypto currencies by buying shares in a company that exploits the technology behind the currency. Although I'm not sure what the business model of those currencies would be. My main argument is that currencies don't produce value on its own, hence you can only speculate on the demand. Ofcourse the service of transferring value does provide some value, but that is not what you are doing when you buy currencies by expecting the price to go up. Maybe this question would fit well into a future video on "the value of crypto currencies".

@epgui

Жыл бұрын

His name is Joeri.

@richteffekt

Жыл бұрын

I think you're making sense and bring one or two key points. A currency, and that of course is a bit to the discretion of the banks and central bank in an economy, should have an opposite, active asset. Like in a ledger where on one side there is the house you want to build and on the other, there is what you owe the bank for it (and the bank has a similar ledger where they exchange similar debt requests with the central bank). Neither your house nor the cash yet exist but once you and the bank shake on it you owe them a house in return for 1 house-equivalent paid to you in cash. Or you repay them - most people prefer that option as they get to keep the house. I continually fail to discover however what the asset side of crypto would be. I mean Satoshi isn't going to give me guaranteed Dollar for my Bitcoin, so there's no debt. Needless to say there's no house. They burn a lot of energy, I hear, making the actual tokens but that's literally up in smoke and of no real future use. From a capital perspective I'd therefore agree - I'd also find it impossible to see how to "invest" in crypto. Maybe we're looking at it wrong and a future video WILL explain it?

@rileynicholson2322

Жыл бұрын

Companies that exploit the technology would be something like graphics card companies that sell to crypto miners. Or even energy companies supplying electricity to mining operations. Unfortunately both still risk losing a lot of demand if they aren't diversified to wider markets and crypto collapses.

@oiinahgiiusadurrybrahchuck7209

Жыл бұрын

@@richteffekt I think it could be suggested that the “invest” part of crypto, from a typical perspective, is the expectation that crypto’s utility as a currency will be recognised more and more, and increasingly adopted, which creates a demand, where the scarcity mechanism then limits supply, which then will drive up value, providing early adopters with wealth increase. The issue arises in that cryptography is not necessarily as practical as preexisting fintech, particularly since the development of NPP. Realistically, if cryptocurrency can’t provide a practical edge over the newest traditional banking fintech, then the “investment” is nothing more than a pyramid scheme and an exercise in greater fool theory.

@richteffekt

Жыл бұрын

@@oiinahgiiusadurrybrahchuck7209 thanks for highlighting a possible trajectory for investors who might be interested. Personally I don't think that utility is the key issue (and that of course is just my humble opinion). Instead crypto's utility seems to also define its most useful application. Single, non- repeating transactions in fringe or dodgy environments where the involved parties neither trust the marketplace nor each other and therefore prefer resorting to a more practical version of the precious metal coins of the past. Today's money on the other hand stores debt and is thus very different. And in most lasting business interactions, I think, debt and capital assets are the building blocks and a currency needs to map that. That is why I think that actual application of crypto- based transactions to be very much limited albeit it non-zero.

Love your video

I find it hilarious some people didn't see this coming 🤣

@cdreid9999

Жыл бұрын

Wait til tether tanks. Theyve used every lie and trick in the books to prop it up and theyre running out of tricks

@jakw97

Жыл бұрын

Half of the financial world has money in crypto, people where making so much money did not care to question it. Many still don't

great job in refocusing the attention on what the real problem is!!!

Thank you.

How do I really invest in bitcoin and make huge profits , i'm actually confused here, can someone please help me out

@annienolen8175

Жыл бұрын

Same here, It's very confusing seeing so many people talk about the profits the make from there investment in bitcoin while I keep dipping from on win to a bigger loss

@eliotbrown5977

Жыл бұрын

@@annienolen8175 Most time having knowledge or insight about a particular activity can as well be a pleasing exercise. I can boldly say that fx and bitcoin is one of the profitable money exchange services that elevates investors and their financial status.

@helenmansfield3446

Жыл бұрын

@@eliotbrown5977 That's true most people today have been having a lot of failures in bitcoin because of poor orientation or bad experts

@helenmansfield3446

Жыл бұрын

Bitcoin investment (fx) can be profitable and lucrative when it is approached as a business, but achieving a level of success is extremely difficult and can take a long time. It's a good idea to fine an expert of this form of investment prior to getting started with. As you can see, the market is open and operates 24 hours a day and almost seven days a week

@victoriamellor2189

Жыл бұрын

@@annienolen8175 Hello!!, I will advise you find an expert around your vicinity to help you while you study the market. Fx investment is a process of which you have to understand these process before going into life trade

It seems so rare to find a knowledgable video or article regarding crypto without the authors obvious biases ( for or against ) bleeding though. Straight information with a bit of candor. It is refreshing & very much appreciated.

This thing remind me of the South-Asian crisis, when the exchange rate of these countries fallen so bad that every one in the region couldn't solve a thing except of course Malaysia, south-Korea and Taiwan. So for both south-Korea and Taiwan It was technically a U.S saving, but for Malaysia things were different since they used the currency pegging. I'm not very well aware of the Crypto market but with a certain stabilization at least in the short term things can be lead to minimize the chain-rings effect along whit a big entrance to the fundamentalists to make some bridging toward the real economy. Afterall the more separation between Finance and real economy, The more destabilization finance will face.

I hate it when people call the ones who are able to make big bucks as “.geniuses”, especially through shoddy methods. Wealth is not intelligence.

thank you so very much for your in debt videos! one thing i did not quite understand is why you consider grayscale a hedge fund if all it did was storing investors money in different crypto funds such as gbtc using Coinbase custody. i mean if genesis goes down and so dcg as a result cant they just liquidate their shares in the fund without dissolving it? i dont see how dissolving can benefit someone unless if those funds where mishandled which i find hard to belive because unlike ftx grayscale funds are grantor trusts which are regulated to some degree.

Gotta love the screwing around with the names; Sam Friedman Bank, Luna Terra :^ )

I really liked the graphics with straight arrow capital.

I’m working on it.

Oh my, Saagar at the beginning! So glad to see more people internationally watching Breaking Points ❤️

I believe that FTX bailed out block-fi to save Alameda, as if block-fi filed for bankruptcy, the enormous loans to Alameda would be called, and Alameda didn't have the money for that, and also their collateral for that loan was FTT. Im curious how this plays out

@rtqii

Жыл бұрын

Yep, for sure.

Very clear explanation! Thanks for educating me :)

a couple I know told me they keep about 20% of their savings in crypto and were hedging more and more each year.. this was in 2019... I haven't talked to them recently... they seem to be ignoring my calls.

Yep, leverage (which is basically GREED) pretty much destroyed the crypto industry. It was a bad idea to utilize the stock market strategies to crypto.

@8eight104

Жыл бұрын

I’ve always been skeptical of crypto, but it seems like it would work better if people actually treated it like currency. It isn’t and I believe that’s why it’s so unstable.

@floxy20

Жыл бұрын

@@8eight104 It's the official currency of El Salvador and yet people are smart enough not to use it and prefer U.S. dollars.

@fredrikhelland8194

Жыл бұрын

@@floxy20 for most practical purposes, El Salvador is not a real country though.

@davec3974

Жыл бұрын

Leverage isn't a creation of people trading in the stock market. Most people use leverage to buy a house, and that also pushes up prices.

@PlayedbyInstinct

Жыл бұрын

The greed/fear cycle is an inherent feature of any speculative environment, not just stocks or in this case crypto.

Joey rocking that turtle neck! Looking good 😉

Woah you're telling me that deflationary currencies with no inherent value will collapse like a house of cards when the masses try to take their money out? Who could've seen this coming? I disagree with the idea that the contagion needs to be stopped; crypto as an industry deserves to die

Very high quality video. I would've maybe made a bigger case for comparison between how commercial banks and crypto exchanges actually have a similar structure in terms of liquidity. To be clearer, I mean that commercial banks, just like crypto exchanges, are not expected to have 100% cash reserves. But this also highlights the danger since exchanges, unlike banks, have no regulation - ie, they can hold MUCH riskier positions...

@mikebaker2436

Жыл бұрын

...and they lack government insurance, policy consolidations, and bailouts.

If it’s crypto wouldn’t it be a de-financial crises 😂 🥁 Also, bots are going crazy in the chat 🤖

Oh no, that was such a forced laughter. 😂 7:24

Heh, the reason crypto goes up in price is speculation. Free debt = sky high prices. Wait until the next quantitative easing. The exact same thing will occur.

@jintarokensei3308

Жыл бұрын

The next QA will obliterate what's left of the dollar tho, so that crypto is gonna be even more worthless

@jeffhicks8428

Жыл бұрын

What really enabled the crypto boom this time was the next phase of monetary policy once we were already pushing on a string, that is debt monetization and the coordination of fiscal with monetary. US basically becoming like third world country. Bitcoin traded basically like 4x etf on speculative "innovation" or "tech" trading at 100x sales or whatever nonsense.

@suyashneelambugg

Жыл бұрын

People have lost money, and trust as well. Quantitative easing will make them want to try recover losses but with a very high degree of lack of trust!

@jintarokensei3308

Жыл бұрын

@@jeffhicks8428 Tesla in the same boat

@jeffhicks8428

Жыл бұрын

@@jintarokensei3308 Absolutely. But that's my line. I've been trying to decide which is the bigger bubble, tsla or the cypto ponzi. With tsla at least going back to 2018, last time we had a tightening cycle, putting tsla weeks or days from bankruptcy, saved by the fed quickly pivoting back to expansion.

- You crypto thing is just imaginary value. - No it's not! - Yes it is. - Oh man, it really is. If only we could have seen this coming

Part of a very important coin been talked about in the BCL

I wonder whether there is a possibility to create a lender/dealer of last resort in that crypto world. Just like Sam of FTX tried to rescue BlockFI. (Great content btw. This channel is really underrated otherwise it should have hit millions of subs)

A good analogy for what was going on in FTX/Alameda would be taking blood out of its left arm and injecting it into its right arm.

This is video that everybody interested in crypto should watch. The moral of the story is don't let your ego carry you away from your senses. Stay grounded in the boring.

Bots are still bullish lol

@GrandChessboard

Жыл бұрын

LOL, the only ones....

I'll watch the video tomorrow, but for now: watching the Netherlands play against Argentina today was amazing. What a game! I am Croatian, so I enjoyed our game more, but the Dutch were so interesting to watch. We will avenge you against Messi, hahah

Really starting to wonder if this space is even worth being in if we haven’t even seen the worst of it yet. There’s little upside and huge downside

I'm interested in an sustainability/economic analysis of crypto platforms. Specifically, where does money come from, where does it go, who's paying for the coin ecosystem to keep running, who are the main benefactors cashing out, etc...

I always been skeptical of crypto since it was interduce. When Daniel Nielsen said at 6:56 as his speech directly aimed at Warren Buffet, it an method been used here in Sweden so called "the ruler technique". Its like gaslighting but he wanted set a dominance, where he's always right when Warren is always wrong.

Thanks for bringing us up to speed with the whole crypto situation, but there's something that's been bugging me since i started watching the vid. Why do you look like an older version of Derek Muller from Veritasium??

Are you calling him "Friedman-Bank" as a joke? Or is that a mistake?

@vakeeshrupan8696

Жыл бұрын

"friedman"😂

@fraufuchs9555

Жыл бұрын

It's a mistake. He corrects it on the screen text when he mispronounces it for the first time.

We have an exchange here in the Philippines since 2017 at it has always remained to be an exchange and nothing else and they are already profitable

Crypto reminds me a bit of the CDS boom, both had a valid reason for existence but greed ultimately got the best of them. I don’t think much of all the coins out there, as they are entirely built on the (speculative) hope that many consider them a store of value, but I do appreciate the digital innovation brought about, allowing for the tokenization (and trading) of illiquid and once inaccessible assets, such as real estate or private equity, thereby rendering them available to smaller investors, and I do believe that will be crypto’s legacy.

@cdreid9999

Жыл бұрын

imho literally all crypro is, intentionally or not, a ponzi scheme.

@TheCommonS3Nse

9 ай бұрын

I think another way to look at it is through the analysis of Mark Blyth in his book Austerity, although he doesn't actually address cryptocurrencies in that book. Neoliberalism was all about reducing government spending as a signal to investors that there will be lower tax rates in the future, spurring investment in the present. The problem with this theory is that it fails to recognize the role that government spending plays in cultivating economic activity. Therefore, after decades of neoliberal policies, we have starved our economies to the point that there is no new space for investment. Where in the past our governments would have spent huge sums on major projects like railroads and the Hoover Dam, they instead chose to pull money out of the economy. As a result, we don't get the productive benefits of these major projects 10-20 years down the road. No Hoover Dam means no Las Vegas and all that investment opportunity is lost for years to come. Now, we have economies that are tied to stagnant industries like oil and coal, with very little infrastructure in place to transition us into more profitable industries of the future like battery technology and chip manufacturing. This means that capital gets pushed out of productive development and into other asset classes such as real estate and cryptocurrency, causing bubbles. Maybe in a world where we had ample productive investment opportunities, crypto would have been valued for it's blockchain technology rather than it's speculative value. But sadly that is not the case.

So, crypto needs the "printing" of more fiat currency to support it's asset value. When I say asset value, I clearly use the words "asset" and "value" in the broadest possible senses. So much for "freedom" from reserve banks and governments. Crypto remains a problem looking for other applications and starting to find them. The solution seems to be fiat money and reality (and maybe a bit of gold if one is that way inclined).

contagion is not over, just can kicking at the moment but that can is beginning to harden with concrete

Its so wild how history warned us about that shit with tulips, while for decades we've firmly believed as a comparatively very modern society that we wouldnt fall for that shit.

Is there any way to get stats on how much of the daily liquid supply of a token exists relative to the amount of that token pledged to cover loans?

you probably got bankman fried and milton friedman mixed :D great video as always

0:49 10:25 12:35 18:00 Sam Bankman-Fried!!!! Was he misnamed on purpoae?

What will happen to inflation if your remedy of fed reversing interest rate hikes is implemented ?

Come for the crypto news, stay for you waving around those imaginary orbs ❤️

0:17: 💥 The video discusses the crypto industry's financial crisis, highlighting the role of speculation, debt, and contagion. 4:17: 💥 The video discusses the downfall of Three Arrow Capital and Celsius Network due to leverage and risky investments in the crypto market. 8:27: 📉 The video discusses the contagion effect in the crypto market and how it led to the downfall of certain institutions. 12:30: 💥 The downfall of FTX and its ripple effect on the crypto industry. 16:47: 📉 The video discusses the potential risks of crypto contagion and the need for a sector bailout to prevent further collapse. Recap by Tammy AI

I had money in blockfi and after celsius, I immediately took it all out. Got pretty lucky.

@mikebaker2436

Жыл бұрын

Yeah, that's how contagious bankruns work. 😋

@NickVetter

Жыл бұрын

@@mikebaker2436 good

@ryansutedjo6704

Жыл бұрын

Good for you

Love that you quote Breaking Points

Fundamentally none of these companies learned from the past banking failures. They were also not monitoring their level risk.

My schadenfreude is real with this crisis. 😅🙈

Joeri, when these firms operate with leverage, who is paying the extra for that leverage? Where is the extra money coming from? And when the assets fall, who is charging them?

Loving watching all crypto ride down to it’s correct price of $0

@user-cn8vb9hh5z

Жыл бұрын

Agreed! There will be efficiencies from the technology but they seem to be small. The financial markets are pretty efficient anyway.

@ryansutedjo6704

Жыл бұрын

Negative... Because all electricity wasted to to "mine" a.k.a solving useless calculations

@DanHaiduc

Жыл бұрын

@@ryansutedjo6704 The cost of mining is comparable to the cost of inflation of fiat currency.

@UsoundsGermany

Жыл бұрын

More like 5-10$ as the storage tech at least is of some (real) value

You should come up with new ways to mess up SBF’s name if he comes up in future videos. Hearing it screwed up was unreasonably funny

Its all a great story that we tell each other...as long as we believe each other i guess. The whole thing reminds me ofthe monopoly game, specifically the money used while playing it. That multicolored paper has definite value while playing that game, but is it an actual storage of value or perceived? Would i spend actual cash on this perceived value? Is my cash even a storage of value? Is gold? Its all individual self- interested perception games played out on a socioeconomic scale in the end- wether from an investor or corporation or SBF or whoevers place in the equation

Is Crypto replicating Shadow Banking system or facing the same hurdlings that early 19-20th Century Banking.

6:55...well that didnt age well at all 😂😂

Binance has dropped their staking rewards drastically as the bear market has tanked. That’s what helps keep them afloat. If bear market continues they may have to continue dropping those rates.

@lokijordan

Жыл бұрын

If they can hang in there until the wind up to the Bitcoin halving, they'll do quite well.

It's astonishing how despite more than a decade since the first financial crisis people still continue to play the leverage card willy-nilly. Some people really don't learn...

Joeri, could you, please, not mispronounce the names of the subjects in your videos? One of your greatest strength is how neutral you are. And such practise may take that away.

Second time I’ve listened and I’m just as impressed with the information and how it’s presented thank you

Love the videos, good luck against Argentina today.

@MoneyMacro

Жыл бұрын

Hehe thanks. Watching right now

@devilinthebelfry7292

Жыл бұрын

@@MoneyMacro So close, what an exciting game though.