Bitcoin Community Chat - Let's Talk FTX & SBF Coll

are all lit up. Here we go. Good morning, Bitcoin. Today is Thursday, November 10th, 2022. The price of Bitcoin is up 1.14% in the last 24 hours with a last of 17,492. And Ethereum is up as well. 11% in the last 24 hours with a last of 1,312. Checking out the Bitcoin old charts today. Looks like we're back in the sunshine. That's right. The price has

gone back up a little bit after the recent disaster that we're all here to talk about. So if you'd like to join us in the Twitter space, please join us on at Madbitt Korn's Twitter space, if you'd like to chat. Or just hang out in the YouTube chat and send us a comment. It's 17,484. Looks like it's falling since we've turned the show on. And we're

just here to talk about some of the unique and fun actions we've had in Bitcoin lately. Maybe remind you guys of some of the ones we've been through in the past. And maybe this isn't so bad, you know. As Tura Demeaster writes on Twitter, the reason our victories taste so sweet is because during the tough times, we stick it out together. Bitcoin and friendship both are

earned over time. It's a nice thought to start out on. And I just want to remind you of the good times of FTX, even though I know that's far in the past. They did sponsor all of the Chinese fortune cookies. I can confirm to you that I got one of these cookies in both Las Vegas and in Sacramento. And they're definitely not the same Chinese food

restaurant. So they must have went directly to the factory and gotten a deal with the fortune cookie companies to help advertise cryptocurrency. Unfortunately, it didn't turn out so well for FTX. But as the fortune says, try to live life one block at a time. And on the back FTX company. We're here to talk about today. Shout out to bold the Bitcoin credit card. They had a

nice meme. I've seen going around Bitcoiners. Well, the whole thing is going to be a bit more interesting. The whole crypto world is losing their mind. And it shows a picture of a meditative Bitcoiner rising above an angry crowd of crypto shit corners. That's a nice meme. As Tura says again, say what you want. But Bitcoiners know how to hodle. Tutor Jones, do you know that

when Bitcoin went from 17,000 to 3000 that 86% of the people who owned it at 17,000? Never. So many people have sold it. Drunken Miller. This is huge. Here's something with a finite supply. And 86% of the owners are religious zealots. That does sound kind of optimistic. And at last, we're going to read the news of the day. The big story. SPF San Bankman freed the

owner of FTX Exchange has posted a long Twitter thread. I'm just going to go ahead and read it. If you guys are watching on the World Crypto Network, you can follow along or you can check out this tweet. It's on at Mad Bitt coins. And of course, it's at the top of Sam's Twitter account, which is at SPF FTX. Sam Bankman freed writes, I'm sorry. That's

the biggest thing. I fuck up and should have done better. Number two, I also should have been communicating more very recently. Transparenly, my hands were tied during the duration of the possible Binance deal. I wasn't particularly allowed to say much publicly, but of course, it's on me that we ended up here in the first place. So here's an update on where things are, according to Sam

Bankman freed. This is all about FTX International, the non-US exchange. FTX user FTX US exchange. FTX US users are fine. Treat all of these numbers as rough. These are approximations here. FTX International currently has a total market value of assets and collateral higher than client deposits. Moves with prices. But that's different from liquidity for delivery, as you can tell from the state of withdrawals. The liquidity

varies widely, from very to very little. The full story here is one that I'm fleshing out every detail of. But at a very high level, I fucked up twice. The first time a poor internal labeling of a bank related accounts meant that I was substantially off on my sense of users margin. I thought it was way lower. My sense before leverage zero X USD liquidity ready

to deliver 24 X average daily withdrawals. Actual leverage. 1.7 X liquidity 0.8 X after Sundays withdrawals. Because of course, when it rains, it pours. We roughly saw $5 billion worth of withdrawals on Sunday, the largest by a huge margin. So just to break this down a little to go off of Sam's tweet here, what he's talking about is how many people were leveraged on the exchange.

Now remember leverages where you put in some of the money, you get to borrow more money. And then you get to gamble with that borrowed money. Leverages the same thing that started the 1929 stock market crash. If you go back in your history books and maybe watch a black and white movie now and again, you would know that this has already happened before in 1929. The

markets were sky high. Everyone was doing good. And the reason they were doing good is because of this new thing they invented called leverage. You could borrow and you could gamble. It was like Vegas on the market. And then you could borrow it. And as Sam saying here, he believed that his users, which is especially funny considering how Sam made his money on leveraging shit coins,

he believed that they had zero X leverage. Actually his users had 1.7 X leverage. The problem here as well is that they didn't have enough money to cover the withdrawals. At least they didn't have enough money in their hot wallet, which makes sense because as we all know, you don't store all of your money in your hot wallet. You keep it spread around a little bit.

As Sam is saying here, and so I was off twice, which tells me a lot of things, both specifically and generally, that I was shit at. And for a third time in not communicating enough, I should have said more. I'm sorry. I was slammed with things to do and didn't give you updates to you all. And so we are where we are, which sucks. And that's

on me. I'm sorry. Anyway, right now my number one priority by far is doing right by users. And I'm going to do everything that I can do. Will he put in his own money? Question mark. To take responsibility and do what I can. So right now we're spending the week doing everything we can to raise liquidity. I can't make promises about that. But I'm going to

try and give anything I have if that will make it work. Allegedly according to some YouTube videos, Sam has like 22 billion dollars. We'll see how that goes. There are a number of players who are we in talks with. L.O.I.'s, term sheets, etc. We'll see how that ends up again commentary on this. Given that Binance has seen the books and they believe that they're anywhere from

four to six billion dollars at deficit, it's going to be very tough for anyone to buy or invest in this business. That's just my personal opinion. Every penny of that and of the existing class. So after that, investors, old and new and employees who have fought for what's right for their career and who weren't responsible for any of the fuck ups. Although I don't know about

that. If the employees didn't know about the leverage number, if they didn't build him a, like a dashboard website where he could see what's going on with his investment website. I'm not sure what the employees were doing, but that's I can't tell from the outside. And the end of the day, Sam Bankman, Fried says, I was CEO and that means I was responsible for making sure

that things went well. I ultimately should have been on top of everything. I clearly failed in that. I'm sorry. And I remember isn't this kid about like 22 years old or something. There's a young guy, not sure how he got to this position. We'll talk about that more later probably. So what does this mean going forward? I'm not sure. That depends on what happens. I'm not

sure what the next week. But here are some things I know. First, one way or another, Alameda research is winding down trading. They aren't doing any of the weird things that I see on Twitter. And nothing large at all. And one way or another soon, they won't be trading on FTX anymore. And I'm not sure what Sam says at that point. It seems to drift off

and goes into the comment section. I would like to know what you guys would like to hear about this. What you'd like to say. I'm going to go ahead and invite up all the links. We don't have that many listeners right now. So if you guys want to share this on Twitter or retweet the original post, something like that. Be a great way to get more

people to check out this space and to enjoy this conversation that we're going to have. We've also got some commenters on Twitter. I'm sorry on YouTube. I'm reading those as well. So shout out to Ben the bow. John M. Kenneth Moon, Tony Smith and Price see. Let's see what they're saying in the evening. YouTube chat. John M. Starts out. He says another entertaining week in crypto.

Isn't that right? It's like the old Chinese curse. May you live in interesting times. And this is certainly an interesting time. Right. Let's see. Tony says he's been around since Mt. Gox. There's nothing new with FTX people giving exchange owners more intelligence than they deserve. And it reminds him. It says Sam Carpelli. So combining the two. It does seem a lot like the Mt. Gox situation.

I remember when I got into Bitcoin and there was really only Mt. Gox that you could trade at. And we went around and we tried to do some research, try to figure out who is this Mark Garb Pellis that started Mt. Gox. What what are his qualifications? And it turns out that he just bought Mt. Gox from another guy. Blanking on his name right now. But

he went to start to start a lot of things like the bit loans and steam it. And all kinds of other projects. But he was a big crypto innovator. And he just sold the exchange to Mark Carpelli. So it wasn't even Carpelli that started it. This one I do think Sam Bankman Fried started it. It was a really strange story for me. And again, I can't.

Crypto's gotten so big. Bitcoin's gotten so big. I can't really cover all of it anymore. But out of nowhere. The Sam Bankman Fried and this FTX exchange just came on the scene. I remember for me. One of the first big things about them is that they bought Blockfolio. And before that Blockfolio was a pretty simple company. They just kind of keep track of your portfolio. And

you could say, Hey, I got you know three like coins and a Bitcoin and whatever. And it would tell you how much that would worth. And it would add up the dollar value or the yen value or the pounds or whatever. And it was a nice way to keep track of your money. But FTX bought it and turned it into the front end and actually their

own app. The FTX app is just the Blockfolio app with a page or two where you can sign in and use FTX. So that was kind of shocking to me. But it was also kind of clever. If you think about the Blockfolio move, it might remind you of another move made by CZ owner of Binance when Binance purchased coin market cap.com. Same kind of thing, a

website that tells you the price of Bitcoin and other crypto currencies. But after it was purchased by CZ and Binance. Obviously, they made it. So there's a bunch of links on there where you can go buy these cryptos and Binance. Good for them, right? Good business deal. Buy an existing property and leverage it to help promote your business. The other reason that I heard about FTX

was their incredible marketing campaign, not just the fortune cookies that we showed earlier, but the sponsorships FTX sponsored the crypto. They sponsored the arena for the Miami Heat Basketball team for a short while. And I don't know how long that's going to last. It was named the FTX arena. That's pretty cool. They also sponsored these fortune cookies, as I've shown you. And I think they're super

fun. And as far as Major League Baseball goes, every umpire this season. And I think part of last season wore an FTX badge on their chest. And in court, they're going to be the best. So it's a great opportunity to take a look at the market market. And I think that's an incredible amount of marketing. Must have cost of fortune. And now look where it ends

up. Another empty exchange. Your funds gone. And to take a second here, and go ahead and invite up the Twitter audience. If you guys would like to join the show and speak. Just let us know your opinions on the FTX collapse. Maybe it's no big deal for you like Tony. You guys can join us here on the Twitter space. And there are some great spaces on

at Mad Bittcoins on Twitter. I'm also checking out the chat on YouTube. So if you want to say hi on there, give us a like. We are simil casting on Twitter spaces and YouTube today. Probably going to try to go for about an hour or so unless there's a lot of chat about this. But just want to talk to people see how it's going. Maybe if

you're new to bitcoin you haven't been through one of these things before and you're saying. What's wrong? What's wrong with Bitcoin? Did it crash? Is there, you know, is there something wrong with the code? Is there something serious that I should be paying attention to? And sadly, once again, there's nothing wrong with Bitcoin. Bitcoin is just fine. The problem is the exchanges that people have built

up around around Bitcoin to trade it to trade other cryptocurrencies are built by humans, right? Not by Satoshi Satoshi with his superhuman alien consciousness New that no one could be involved. No one could be controlling these things, right? That it would always end up badly when you have people that are setting the issuances, people that are creating their own tokens. It would always go badly. That's

why you set up Bitcoin and left. He didn't set up Bitcoin and like a dozen other cryptocurrencies to compete with each other or even a dozen different versions or instances of the Bitcoin software so that there could be confusion with each other and they'd have problems communicating with each other. He didn't set up either of those. He set up Bitcoin and he left. Let's see, we've

got a comment from the chat shout out to Nisu. He says, do you believe the FTT token rebound in price since FTX USA is fine. I do agree FTX USA seems to be fine. This is a similar situation to finance and finance USA, I believe, where to my knowledge nobody uses finance. You know what I say, right? They all use finance. So in this case, I

think no one used FTX USA as well. Probably they had KYC and other things that are necessary to operate in the US market. Everyone was probably using FTX international. Now, as far as a rebound in the price, I'm not looking at the FTT token right now. Maybe I should pull that up. But there's usually a bounce at the bottom of these things and for Bitcoin and

Ethereum, we've certainly seen this kind of a bounce with a 2% bump on Bitcoin. And a 12% bump on Ethereum. That doesn't mean that the trouble's over. Right. Oftentimes you'll have these little mercy bounces, dead cat bounces on the way down. And even though it's up now, when other people hear about this and they don't like the Bitcoin exchange situation, they might sell as well. So

I don't know about investing or gambling and wadering with the FTT token. A lot of people do well day trading. A lot of people do. A lot of people bounce right in and bounce right out of things and do fine. If you're one of those people and you're fast, maybe you could make some money on that thing. But if you're not and you're thinking about going

slow or holding long, I wouldn't look at the FTT token. And I don't know about the price of Bitcoin and Ethereum either. Although it is nice to see a Fred Savage wonder years clapping GIF here on good old Bitcoin old.com. And I think that's a good idea. Check out Bitcoin old.com for all your Bitcoin price needs. It's built by DJ booth, the same guy that built.

Tally coin, good old tally coin and the World Crypto Network website and mad Bitcoin's website. Let's check out some more of the tweets we've got ready. If you're on the Zoom chat, if you're on YouTube, you can see the tweets. It looks like Twitter space is about dying out. No one wants to chat on Twitter spaces today. We've got a great tweet and image by people,

famous artist. It says, damn you. SBF FTX. And it's got a great image of Bitcoin cracking and crumbling with all kinds of cities and Athens and other things below it with behind it. The curly hair, the fro of Sam Bankman freed excellent image. By people. It's kind of a funny image that I found yesterday and retweeted as it says a Bitcoin E.D.U. A sad day for

many hope this cheer some of you all up. And it says, are you making money on your investments? It has a samurai sword and he's pulling it out of the sheath. And it says, yes. And then if you scroll down, it says yesterday, I lost a lot of money. Yes, indeed, that happened yesterday. But, you also didn't sell. So you never really had that money. It

was investment. There's a great image here of Squid Game. And the caption says, Sam, after losing most of his fortune and hearing that by and says unlikely to buy FTX after reviewing their books. And it has the guy from Squid Game and he's asking a Photoshopped version of Sam Bankman, free. He says, why are you here? I thought you were financially stable. And always a good

time. If you guys have watched Squid Game on Netflix, great show. A little violent if you're not into that. But very interesting commentary on being rich, being poor in our society. And although it's tough for Western eyes to see it quite a commentary on North and South Korea. The various groups and perhaps even distaste for each other. Check out Squid Game. Let's see, we've got another

comment in the chat. John M. M. says, the ICO collapse last cycle FTX, Luna, and TNT's collapse this cycle. What will it be next cycle? I don't know. You have to think more technologies. Like if Bitcoin or lightning takes off in the virtual reality realm, it could be virtual reality or AR companies crashing next time. And remember Bitcoin does seem to go through these cycles. Nothing

goes straight up. Right. Everything goes up and down and up and down. And if you're lucky, it keeps going up. So let me know in the chat, what do you think will collapse next cycle? We've already seen quite an interesting add on a factor. Kind of a knock on effect where as we know FTX had a lot of funding. They had a lot of investors. And

some of it came from banks. So the banks that invested in FTX and it seems on the face of it didn't do their due diligence very well are now in trouble themselves. So the for the first time Bitcoin and crypto. So the first two related companies are crashing banks. Whoa. Let's see what else it says. We're going off the YouTube chat here. So if you guys

want to leave us a message in the YouTube chat, we'll get to it. We're just going message at a time here. And it's great. Thanks so much for joining us. Give us a thumbs up. Subscribe down below if you haven't already. It looks like the Twitter spaces. This is a total fail. So no one wants to talk with me. But I'll talk to you guys in

the chat for a little bit more here. The chat's and resistance suggest Bitcoin is going to test the $12,000 range. It says Bitcoin party song, AMV on YouTube. Now stay aligned. So yes, 12,000. Any of these things are possible. Remember, some of my friends have been suggesting and predicting these things based upon the chart, based upon us not going down enough. A lot of the Bitcoin

crashes are at 90 or 95% crash before an eventual recovery. So we only went down about 70%, which seemed really painful at the time, but it's nothing compared to 90, 95% right. Niki who says, FTT is actually bouncing in price right now low. Well, it certainly is. And like I said, there are many of these day trader, speculator type guys and you know, respect to them.

If you can make money, it's a hard game. And they are the kind that would be investing in FTX right now. They're also the kind that would be looking for this bottom in Bitcoin, this bottom in Ethereum. And it might even be a temporary bottom where they buy now. They get 5, 10, maybe 15% and then they bought right back out. Those guys are smart. They're

fast. If you're buying now and you're thinking the FTT comes back or that the whole exchange comes back, you're really a gambler. You're really a wild man. I don't know what's going to happen to your money. But yes, it's fun times. Q says great show. Been fun. Q says great show. It's great with so little oversight that Sam himself didn't know the amount of leverage. Like

I said, the employees didn't build him a dashboard and easy to look at web page where he could track this maybe with a chart to right seems really simple. I don't know that they had that or didn't have that but it seems that he didn't have this information according to his tweet. So I could see that be part of the regulations now for this regulation thing

in general. They can regulate the exchanges. They can't really regulate Bitcoin. The ability of you to send Bitcoin from one address to another address depends on the miners depends on the nodes depends on a lot of things that are outside the hands of us regulators. Because it's software. They could try to block the networks. They could turn off the internet. And then as Andreas has said

many times before we could send around cat pictures and we could hide our Bitcoin transactions in them. They could even make a wall that would automatically read in the cat pictures make it easy for you. So I do think that Bitcoin is fine. I think that it's going to continue to be traded. It's going to be continued to be used. But these exchanges are the point.

If you're an exchange operator right now and you're not in regulatory compliance, you're going to be brought into regulatory compliance. If you're an exchange operator now overseas, you might get a lot more business. Right. A lot of people are going to be fleeing this regulatory compliance. So that is going to change the market. It is going to make it harder to invest in Bitcoin, where it's

previously maybe you didn't have to put in all your information. Now you're going to have to put in all your information information in triplicate right they're going to be very tight on this maybe maybe withdrawals zero day withdrawals are not going to be a thing anymore. Maybe they'll just make you wait three or four days because they can. Stuff like that. I think that's the kind

of regulation that we'll see on the exchanges, which will affect the market. Right. It does affect what's happened recently in the last few years, I'd say, is that crypto and Bitcoin in general have gotten into this institutional money that we talk about so much institutional money. And we're all so excited. We're all happy because that drove the price up right all the institutions had to buy

and none of them bought in the old days and all that because that was a drug money and it was a Ponzi scheme and a bunch of computer geeks. But now they are in right and the problem with these institutional money is that they're fair enough to be able to get the money. Either weather friends, right the price goes down a little bit. They're out, right.

They're not hotline they're not here for the long run. This crazy thing happens. All the exchanges look bad they wonder are people going to be able to trade Bitcoin as smoothly as they did in the past and the answer is no not for the next six months, not for the next year or two, especially with the possibility of this regulation coming down on the exchanges. Remember

they can only regulate Bitcoin and crypto at the point where you're trading it for you. Or at the point where you're trading it for other cryptocurrencies if you're not using a decentralized exchange. So that's where the regulation is going to be. It's going to affect the mood of the market, the mood of the traders if people feel good about buying Bitcoin, if they feel bad about

buying Bitcoin. I saw crypto duck or all duck. I forgot his name, but he's on Twitter. He's a duck and he predicts the price of Bitcoin now. And he said he didn't feel like buying and he didn't know when he won't. He was going to feel like buying. He said if it went to 14, if it went to 12, it went to 10, he's just full

of uncertainty about this market because of what these exchanges have done to us. And this is this is the saddest one right this FTX one. They were the regulated one. They were meeting with Congress people and senators. They donated to President Biden's campaign. They were supposedly on the up and up, right. They were so trusted. They were sponsoring sports venues and things like that. And that's

always the worst, right. When the one that you trust who's on the up and up ends out to betray you, right. It would have been a lot easier to see someone like maybe a CZ and Binance who don't have a centralized location. They operate out of the Bahamas. They have a lot of question marks about how they left Malta. You'd say maybe that guy. Maybe that

guy is the one that's going to mess up the market. Well, it was partially him, but it was mainly this guy, Sam Bankman, free. According to the information we have right now, that there was problems within his company. There was over leverage and a lack of capital seemingly from the tweets. And that this led to a situation where he attempted to get CZ and Binance to

bail him out. CZ and Binance took one look at his book. And according to tweets on the internet, they said there's four to six billion dollars gap. Missing and that they are probably not going to buy the company because they don't know how they're going to make that money back. So it does look bad for FTX. Does look bad for centralized entities. Q in the chat

agrees with me says yes, that it's bad for centralized entities, but like Mad Bittcoin said, not for some of the underlying networks. Yes, the networks will continue. The miners will keep mining. The nodes will keep verifying transactions. And it will keep being written into the blockchain. It's just about a question of the value of Bittcoin. And all of this has to do with the. How difficult

it is to use Bitcoin scale. And I don't know if you guys have been listening for a while, but. Back on other shows, I've talked about the idea that we are in a beautiful time for Bitcoin, right Bitcoin is available. Not not everywhere, but almost everywhere. You can go to Coinbase relatively easily. I think you can even buy with your credit card now. You can buy

with your bank account. You can get an app on the Apple app store. There were times when this was not true. Right. There was a time. Everyone's forgotten. But there was a time when Apple banned all Bitcoin apps from the app store. And you couldn't even install an app to become a new Bitcoin or if you wanted to. There was a time when Coinbase only sold

Bitcoin. You know, there's a time when you had to go to some weird exchange to get the alt coins. So as far as access to Bitcoin, this is one of the easiest times to access Bitcoin, one of the easiest times to buy and sell and trade Bitcoin. And what's happening with this FTX situation is that it could change. Right. That the exchanges are going to be

more heavily regulated, which mainly has to do with their back ends. Right. It has to do with their liquidity. Sam Bankman freed allegedly, according to his tweets, didn't know how leveraged his users were. Pretty clear in the future, they're all going to know how leveraged their users are and their might even be limits on this, at least in heavily regulated markets like the United States. Beyond

that, they could do kind of an international cryptocurrency regulation league. But I don't think we've gotten to that point yet. But I do think that will be coming eventually where the United States and the EU and the UK and Japan and China, maybe all these countries come together and they say, Hey, we need some standard rules for this cryptocurrency trading thing because otherwise these guys are

mobile. They move their businesses. They're data is online and they could be in another country tomorrow, right. Unless they work together, they're not going to be able to regulate these exchanges. But they haven't gotten to that point yet. Remember governments, businesses, people like this, they work step by step. They're not looking multiple moves ahead here. They're just going to go step by step. So yes, in

the short term, more regulations for exchanges. Let's see, in the chat says, isn't this super bad for crypto a reason for regulators to make stricter rules? So if you think it's kind of bad for exchanges, right. So if you're an exchange operator, you're going to have to do a lot more work. If you're investing in exchanges, like my terrible coin based stock, which has just been

awful, it's probably going to go down more, right. The idea that coin base or crack in is going to make a lot of money without doing a lot of work is slowly going away, right. They're going to have to do a lot more work to make their money at the exchanges. This doesn't really affect Bitcoin. It doesn't really affect any of the top 10 cryptos. They're

still going to keep doing what they're doing. If you believed in them before, no reason not to keep continuing believing in them, whether it's smart contracts or NFTs or whatever they're doing, those things are pretty much unaffected unless they were lying on these exchanges. Now there are some ways, especially with the all coins, where they do rely on the exchanges. Like for example, if FTX had

put, I don't know, say, $23 million into an Ethereum development fund, well, that money's not coming back next year, right. If FTX was developing Salona or involved in Salona and they were funding it, that funding's not coming back next year, right. So for these kind of exchange, these kind of operations, where it's mainly about people being paid and mercenaries, they could be affected. But if you

look at the Bitcoin programmers, if you look at the people who talk about Bitcoin and tweet about Bitcoin, for the most part, they're not directly paid by an exchange. So as long as you weren't reliant on this exchange money, like you don't see any ads here, FTX, and it pops up and it dances it around or anything, we don't seem to have any of those here.

So we're not really affected by that right now. So I can keep making shows and it's going to be fine. We're going to do the Bitcoin group tomorrow. We're going to discuss this issue. I don't want to ruin it for tomorrow's show, but I did also want to check in with everybody. See if you guys are doing okay. See if you lost too much money, if

you're stressed about it. The same thing. And we've said this before and seems kind of flipping or whatever, but it's always important to know that if you need help, you can contact one of those suicide help hotlines. There are a lot of people that can talk to you and they can talk you down. And I know it's a big deal. We've all lost a lot of

money. Some of us over-invested. Some of us didn't take profit. It's at the top. A lot of people probably didn't listen to the dollar cost averaging advice that everyone I know says and then nobody follows. So once again, if you were dollar cost averaging, you would just buy $100 a month. And the $100 that you buy this month, you'd get a lot more Satoshi's right. Maybe

if you're going to get a just say average, you know, if you were going to get a point zero five, if you're going to get a point one, maybe now you get a point one point five or you could get more Satoshi's. You could get more Bitcoin for your money, which under dollar cost averaging will work out later in the end. So you made a bunch

of bad buys the last few months. You'll make some good buys these next few months and it'll average out. Of course, nobody does that. Everybody just runs inputs all their money in. And then when it crashes, they pull all their money out. And then it goes back up. They put all their money back in and they just try to chase the market. And they try to

tie them to the top. They're like, I'm going to be the one who gets the bottom perfectly. And I'm here to tell you from experience, you're not going to time the top. You're not going to time the bottom. You're probably going to miss it. If you have a more flexible strategy, which I know is more difficult. If you're putting in like 10% a week, if you're

putting in 20% trying to find that bottom, you're going to have different buys that are going to average out. Then I get you a better result and a lot less stress than trying to time the bottom or trying to time the top. You can watch all the guys you want, but none of them really know where the bottom or the top is until the next day.

The next day, they're always like, that was the bottom. That was the top. Did you buy? But when it's actually happening, no one really knows. So investing smaller with dollar cost averaging or even 10% in 10% out. That kind of thing can give you a better result. Now if financial advice, everyone needs to do their own thing, you know, make up your own mind. Don't listen

to me. Read a bunch of sources. Crypto player says FTX US is safe. Yes, safe. Go to old CZ and his line. Was pretty interesting. Again, only cracking to my knowledge actually provides cryptographic proof of reserves. They have merkle trees and things that you can click through and follow. And you can see how much they have in their reserves. Let's see. Niku says this looks like

the start of the bull market to him. So it could be true. We are seeing an uptick, uptick and the prices. Bitcoin is up four and a half percent. It was up around two percent when we started the show. So once again, maybe this show makes the price of Bitcoin go up. The price of Ethereum is up 15% 1337. That's elite. Ha ha. Mateo Lewis writes

he says seeing everyone freaking out about FTX makes him think that the bear market is over. It's interesting to say because we kind of decoupled from the price charts here, right? If you were looking at the price charts and you had your triangles and your ball and your bands and your Fibonacci numbers and all your price spirals and everything. And then an event like this happens.

You pretty much have to throw those charts out, right? Because it's not because of the price collapse. That this happened. This happened because of Sam Bankman freed. Right? This happened because of the way he ran his exchange, which had a fractional reserve seemingly allegedly. And then the fractional reserve, he went to help for Binats, who is one of his major investors. Binats seem to not like

this, not like him as well. There's a bit early on where it seemed. And again, we really only know what these people tweet about this stuff. But it seemed from CZ's tweets that Sam Bankman freed perhaps had lobbied against Binats. Sam Bankman freed goes to all of his political friends, says, Hey, you need to support FTX because we're a good exchange. Don't support a bad exchange

like Binats. I don't know what the details where I imagine it was something like that. And of course CZ, a major investor in FTX was like, Whoa, what are you doing? Bite in the hand that feeds you much. You know, I give you all this money. I let you start an exchange. And CZ gets a little wiggly, starts to mess with the FTT token, the token

that apparently packs FTX and the FTT tokens starts going down. Then we learn about this liquidity problem inside there. Then CZ gets to look at the books. And then CZ says, Whoa, even we won't buy this thing. And that's pretty much where we are from the outside, looking at Twitter, trying to understand and interpret this like everybody else. I think the only ones who really know

what the FTX is. So what's going on are CZ and Sam Bankman freed and the rest of us are just reading their tweets. Crypto dummy says, not your keys. Simple like this. And it was funny to see several people referencing good old trace Meyer and his not your keys, not your coins campaign, which every January 3rd. I think it was, which is a hard day for

exchanges because a lot of them are on vacation. He says everyone should take their money out of the exchanges and see what happens. And it always seemed like an idea to cause a liquidity crisis in the exchanges and to cause a run essentially on the banks. And that was a little wild. Trace is a little allow control there. But his core idea is right. His core

ideas is correct. Why should we leave our funds in these exchanges? Why not take them out for a day and put them back in if you want to just make sure they have the money. I remember there are only 21 million Bitcoin. But once your Bitcoin goes into a black box like Coinbase or FTX or even Binance, you don't really know how many Bitcoin they have.

Sure. You and your buddies all gave them a bunch. So they should have say 20. But if they take those 20 and maybe take five of them, put them out there and start gambling with them. You have no idea. Right. And was great about the kind of gambling operations they can set up now is they can keep the money on the exchanges a long time ago.

I worked for a startup. And we did Bitcoin loans and it was everyone tried our best. We tried our best. It just didn't work. And one of the big mistakes or whatever looking at it in hindsight, of course, was that at BTC jam, we let you take the money off the exchange. We weren't a cryptocurrency trading platform. What's great about these trading platforms is that they

can keep the money on the exchange. They can let you gamble with it. They can even juice you up with leverage, which works good sometimes. But if you want to market goes the other way, gone, right. Your stuff's gone. So this leverage thing, they keep the money on the exchanges. It usually works out better for the exchanges. In this case, it seems that SBF's customers were

over leveraged, causing a discrepancy in the books where suddenly FTX doesn't have as much money as they're supposed to. And that's in the billions according to that. So let's see what else we got in the chat. Next to see says, that's because beyond meat stock was crashing because the CEO tried to eat somebody's nose. That is funny. So I think he's talking about, yeah, because Bitcoin

is really not related to SBF and to FTX Bitcoin is its own thing. And the beyond meat stock, they actually went down recently because they've been having sales problems, not just because the CEO tried to eat somebody's nose. There was another CEO recently. I think that's what I was talking about. I think it was Tyson Foods, strangest story ever. I really don't understand it. I'm just

reading the news on the outside. And the guy said he was intoxicated. And he went in the wrong house, got into the wrong bed and went to sleep. And he's like a major executive at Tyson Foods. So again, I suppose the chicken's okay, but you got to worry about the executives. It's very strange. Shout out to Crypto Dummy. He says in the chat, Trace was a

hero. And I took him a big fan of Trace. I was like, I'm a liar. I wish he didn't have to disappear. That was a bunch of nonsense for you guys who don't know Trace still has a bunch of podcasts out there. You guys can go listen to them. He was a lawyer. He was early into Bitcoin. And he was very logical in his thinking. He

always talk about the network effects of Bitcoin. And we talk about basically the size of Bitcoin. And because of the size of Bitcoin, because of what it can do because of the ways that it can't be challenged. And he said, I'm not going to get Bitcoin to crash Bitcoin. And now it's down to just a couple, right? Pretty much the US and China. Maybe the EU

could do a major action against Bitcoin. But the rest of them. It's out of their reach. And Trace was great. He also had the not your keys, not your coins. And he had that day January 3rd. We're all supposed to pull our money out of the exchanges just to see if they have it. And I know that that pisses off my buddies who work at exchanges.

And they say, hey, we have to get special staff in. We have to do our cold wallet because we're going to have to do our exchange. It also tests the exchanges in the way that the exchange should be set up. Right. The exchange should have most of their money in a cold wallet. So if they have a mistake like big fin X where they just start

allowing withdrawals because they got hacked. They can't be robbed for all of their money. They can only be robbed for what's in the hot wallet in the same way. SBAF talking about his company. How they do have the liquidity. According to his tweets, but they don't have all the liquidity in their hot wallet. So they are unable to let people take the 5 billion or whatever

they wanted the other day. So it's still still discovering still happening. We'll see if customers get their funds out or not. Crypto dummy also says that Thomas is a hero. Thank you, man. Good stuff. And you're just trying to hang in with this thing. It's been up and down. Certainly I'm down as well. I bought the Bitcoin. You know, so we just got to see how

it goes. And as it is today, since we've turned the show on, we are up around 3% 520 dollars with the last of 17,809, a high of 17,956, and a low of 15,588. So we've got the Bitcoin market and we have actually seen some shorts. Start to open up. Previously, this was around 98% long. Now it's 94% long with 6% short. So people are trying to

take advantage of the Bitcoin market and get their shorts out there. As is an interesting story, according to wartime microchad at ghosts of MTC, it says looks like Kevin O'Leary TV, Kevin O'Leary, Mr. Wonderful from Shark Tank had a cool 1.02 billion dollars tied up in FTX official official. The wonder in Mr. Wonderful apparently refers to him wondering where all his fucking money went. Uh oh,

could be trouble for Mr. Wonderful. I saw him at a Bitcoin conference recently. Actually, it was a Web 3 conference. No one ever says the word Bitcoin. But yes, he was very happy with himself. He said all over and over again, he had the most interesting refrain. I hadn't heard it since 2014. He said we need more regulation to allow the institutional players to enter into

crypto. I said, really, Mr. Wonderful. Are you sure? More regulation. And we've done this before. But that's what he was all about. And he said now in this in this tweet, it says, a bottom is usually created when there is a catastrophic event like a large player going bankrupt or somebody who's in deep trouble for buying crypto on over leverage. Ironically, Kevin is an FTX investor

and also a spokesperson for the exchange. So in that way, according to Kevin O'Leary, who is definitely an expert investing in so far with that's way more experienced than I do, he says this could be the bottom because of the large collapse caused by over leveraged individuals on FTX. I wonder what will happen to Mr. Wonderful's billion dollars as of right now without the CZ Binance

company coming into bail out FTX. There's no government insurance on crypto exchanges. There's government insurance and on bank accounts called the FDIC. It came out after in the great in the new deal by FDR and so forth. And that ensures your bank accounts for a certain amount. I think 100,000, maybe 250,000. So if the bank goes bust, you would get covered. Unfortunately, FTX though, it seemed

like a bank and it seemed on the up and up has no such backup plan. So it is possible that Mr. Wonderful would lose his entire bill. So he's going to get a $1,000,000,000. He might also get a percentage cut of the return if they find any funds if FTX owned anything if they need to sell their real estate portfolio or whatever. It's likely he would

get a cut of that in the lawsuits later, which also means lawyers would take a cut of his money. Shout out to crypto dummy in the chat. He says it's okay. Thomas, it's only noise. And he says strong hands like a good old Adam Maister used to say that he's going to get a lot of money. And he said, I don't know, I don't know. I'm

not sure Vortex went off made his own network a few years ago. And after that, I think he went to move and to work in electronic music. So I'm not sure why he's not releasing the electronic music on his Twitter. And to his Bitcoin friends, because I would like to see that. I'd like to hear that, you know, but yeah, best of best of luck to

Vortex. I'll be doing well. He's out there, sure you could chat and call in. I'm going to just take a sweet water break. I'm going to be able to see that. Like that guy says on YouTube Patrick C.C. says, stay hydrated. Oh, water can't beat it. It's the best. Crypto dummies got some more in the chat. He says insurance doesn't exist in life. And that's sure

you do have to take risks. And the people who put their money into FTX. And it doesn't look good for them. Autism capital at autism capital rights. Apparently Michael Lewis, famous finance writer, the author of moneyball and the big, the big short, a great writer. Was writing a book on the success of FTX. He was at the Super Bowl with them and made multiple trips to

the Bahamas to cover it. Looks like he jumped. And the first god is ending. It is very interesting. I saw another tweet that talked about the competition in books coming up. It's said that Walter Isickson, author of the excellent Steve Jobs biography, which I read. And the Albert Einstein biography that I'd like to read is doing a biography on Elon Musk, which would be very interesting,

especially during these turbulent times. And he was kind of in a way in a competition with Michael Lewis, who was doing a book called on FTX and Sam Bankman, freed. It looks like Michael Lewis just won. Although the Elon story is also very fascinating, depending on how much access Mr. Isickson has to Elon. Shout out to Bitcoin hat guy, Bitcoin hat guy.com. Bad Bitcoin says, these

are the best Bitcoin hats I'm wearing one right now. It's all it's got a stitched in Bitcoin logo on it. And you can check them out at Bitcoin. And hat guy.com. You can even pay in crypto or if you don't want to, because it's down right now, you can pay in PayPal. So support my friend. He's been selling Bitcoin hat since 2013. As he says on

one of these tweets, he says Bitcoin hat guy has been around since before Mt. Gox. So that's pretty cool. And I've been buying my hats there from him for years now. Shout out to Andrew Calligan. And he had you call him from Channel 5 news. And before that, all gas, no breaks. He does a fantastic YouTube channel. He interviews people and he really lets them talk.

And if they're morons, you find out because they run out of steam. If they're clever, sometimes they say some really clever things. And then Andrew can talk to them and bring that out more. He did a lot of really great interviews and things, especially during Ferguson after the George Floyd situation. And with the protests and so forth in the street, Andrew was there. There was flaming

buildings going on behind him. He went into one of the buildings and just continued to interview people ask him questions about what they thought why they were there. As really need I got to meet him here in Sacramento at the crest. As really cool to see Andrew from Channel 5. Check it in again with the price of Bitcoin. It is up 3.86% with a last of

1,334. How we doing on the timer? We're at about 55 minutes. So we've got about 5 minutes left. Time for a last comment or two. If you guys want to put it into the chat, I'd be glad to take another question. But pretty much we're going to head towards the end of the show. Just a couple of other things. I have some kind of art on

my head. I'm going to take another question. I'm going to take another one. I will hear from the bear whale and it's hard for anyone to remember. But way back in October 2014, one of the artworks has the date written on it. That's convenient. There was a guy that was tired of Bitcoin. He'd had enough. Maybe he bought it when it was worth nothing. Maybe he

was bombed because it went down from like 1400 to 300. But this guy was done. And we call him the bear whale and he sold all of his Bitcoin at $300. So there's this line on the Bitcoin chart. I'm going to see if I can pull it up here. Of course, we're searching the open internet. Horrible things could happen. But let's see if we can get

the things here. So the bear whale sold so much Bitcoin. Here's the one of the arts I have right now. And so much Bitcoin that the price just went sideways. The price just went sideways for it. It seemed like a day or two. So if you can see right here, the wave pattern that the artist has used is the Bitcoin chart. So you can see this

straight downwards spike here. That's the arm of the bear whale going through. These breakouts are the price going back up. But pretty much Bitcoiners had no choice to do just to buy the Bitcoin. As it says here, eight years ago, today by Jamie Redmond, another friend of the show. This was from October 6, 2022. So just today, this is fresh. I don't know. I'm not getting

any clocks. Oh, there's November. So this is from a month ago. Still very fresh. It says eight years ago today, Bitcoin traders slayed the infamous bear whale who dumped 30,000 Bitcoin in a single trade. So this guy just went up to the market. He said, I have 30,000 at $300. That's a lot of money. And I'm going to take it. It's $9 million. I was at

$29 million in a day in global trade. I told the coins at $300. A coin. There was looking to obtain $9 million from the sale. Today, those Bitcoiners are worth roughly $603 million. So the bear whale was wrong. There's a lot of great art that came out around this. You can see here, the slaying of the bear whale by Christopher Edwin Steinegger. Very realistic with a

Bitcoiner waving the flag. Also here, we have the bear whale. This is a great one. I can tell from the wall, the Bitcoin bear whale by Billy, neighbory, neighbory, October 2014. So we have been through this kind of stuff in crypto before lessons learned from the bear whale. I got $603 million. And he took a measly nine million. So this has happened before. We've seen Bitcoin

go down before. We've seen other things go down before. But we just keep a positive attitude. And as FTX said in their famous tweets and their famous fortune cookies, just try to live life one block at a time. So thanks again to everybody for joining us. Give us a thumbs up and a share. If you'd like to watch this show again, maybe you're just getting here

at the end. You can go to worldcryptoneetwork.com. We've got lots of other shows like this. We've been making YouTube videos since 2013 about Bitcoin. Always hold your own keys. Don't keep your money on an exchange unless that's your trading money. And even then, a lot of people used to check in and out. They used to take their, even their altcoins off the exchange at night. They'd

be like, well, you know, it's just not safe. Just don't know. So thanks to everybody in the chat for hanging with me. We had a good time. Just want to check in with the community. See how you guys are doing. Now I'm going to try to gracefully end all of the various things. So goodbye to Twitter spaces. And goodbye to everybody else. And we'll be back

again tomorrow at 12 noon. Pacific time for the Bitcoin Group. It's pretty much like me and some other people talking about this. I'll talk about some other issues as well. Thanks so much for joining us. Until next time. Bye. Bye.