Although this flash crash does look like a classic liquidation wave in which investors stop losses, get triggered triggering even more selling, which causes more stop losses to get triggered, causing more selling, and the cycle continues on. Another reason that likely contributed to the crash was some news. Shared by coinbase, the largest united states based cryptocurrency platform sharing on twitter, the ceo brian armstrong, detailed, some dodgy behaviors from the securities exchange commissions in dealing with crypto related products. Although the thread is quite long in a nutshell, the sec put a ban on coinbase offering yield or interest on crypto assets. They also subpoenaed coinbase and demanded testimonies and threatened to sue coinbase if they proceeded with these products. There are a few more details in his thread. However, it is a 21 part story. If you want to read the full thing, ill leave a link to it in the description. To sum it up, brian armstrong tweeted were being threatened with legal action before a single bit of actual guidance has been given to the industry on these products. Although this wasnt fully responsible for the crash of cryptocurrency, it definitely contributed what this signaled is, that theres still a lot of regulatory risk and not much clarity when it comes to the crypto space and it definitely spooked a lot of investors mark cubin, who is a Billionaire and is also very bullish on cryptocurrencies had this to say on the matter. Brian. This is regulation via litigation.

They arent capable of working through this themselves and are afraid of making mistakes in doing so. They leave it to the lawyers. Just the people you dont want impacting the new technologies. You need to go on the offensive, so definitely some drama brewing in the space and an all too familiar reminder of how scared and confused the legacy financial system, as well as some governing bodies are of cryptocurrency. In todays, video michael saylor speaks on why everything has to evolve in the darwinian system. We live in or it will not survive. Bitcoin is the natural evolution of money and michael sailor reminds investors to not worry about small movements in price, but rather in the long term vision. Also, only a small percentage of my viewers are actually subscribed if you enjoy crypto content, consider subscribing or liking the video. Its free and you can always change your mind, but before we get into the video todays, video is brought to you by the channel sponsor blockfire the leading provider of financial products and services for crypto investors at blockfire. You can put your crypto to work earning up to five percent interest on bitcoin and ethereum and 10 apy on stablecoins. If you are a crypto holder like me, you may as well be putting your holdings to work and earning passive interest on your stack. Blockfy is backed by some of the biggest names in the industry, such as the winklevoss twins and coinbase ventures.

Blockfly has also recently released their block 5 bitcoin rewards credit card where you can earn 3.5 back in bitcoin for all purchases in the first 30 days and then 1.5 percent thereafter. They also recently ditched their annual fee and there are no fees to use the card to start putting your cryptocurrency to work and earning interest and also earn up to a 250 crypto bonus with a deposit of a hundred dollars or more go ahead and check out. The referral link in the description right down below one thing, thats pretty clear, is that most people cant get their hands around bitcoin because its an utter paradigm shift, and why is it a paradigm shift? Well because i think bitcoin is the first digital money. I mean its the first digital money, gold, wasnt, digital money and and fiats, not digital money, either um, and so economists and politicians and investors. They all lack the right mental model to understand bitcoin, because science and engineering were so intrinsic to gold that we took it for granted, because gold was a its a 10 pound lump of something, and if you, if you get slugged in the head with it, nobody Had to explain that science and physics mattered and then science and engineering kind of became like quasi irrelevant in the fiat world, every just kind of they ignored science and engineering and there were no immediate, clear consequences. There were just the hyper inflations and the collapses of those fiat systems, but but because, because they abandoned gold – and there was no digital money, they were the only alternative to one fiat.

You know the weimar republic, fiat currency was the next the pound and that alternative. You know was an alternative to the next thing and the next thing, so we were comparing fiat currencies or fiat monies to each other, and so there was no real need to embrace science and engineering and bitcoin. Is this paradigm shift where we have uh digital money crashing into uh? I guess what well call uh uh analog money, or maybe a political money is a better way to describe it, and now we start to ask the question again: what is money – and i think, tokenized energy isnt good enough to explain what is money another way to Describe money is by coming back to the ideal model. What is the ideal model of money? Ideal money is a shared immutable, correct ledger. You know, youve heard the phrase you know. Bitcoin is a shared immutable, ledger and people debate about whether its truly immutable or not but but uh. You know a crypto asset network fully decentralized and mature is the closest thing we can get to an immutable shared ledger in the history of the world. I think a lot of times when people describe it as a shared immutable ledger. They leave off the correct or the mathematically correct, because its almost implied. But i think that if you were to focus upon the three critical dimensions of ideal money, you would say its a ledger: thats shared everybody, everybody in the um and the political system has to have the same access to the ledger.

It has to be immutable. No one can doctor it, but it has to be correct: mathematically, complete or mathematically proper because, if its incomplete or incorrect, then its not ideal money. So if i take that as a model, money is a shared immutable, correct, ledger right then i can imagine the perfect money would be. You know some godlike being comes down on earth and they create this perfect uncorruptable system and they telepathically they telepathically drop that shared immutable, correct ledger into the heads of every human being and every time you incur a debt, it updates the ledger and when you incur Credit, it updates the ledger and no one can corrupt the ledger. So if we look at if we start with that model, right shared immutable, correct and now we go back to all the monetary systems in history start with ancient coins right coin networks. Well, theyve been so many coin networks right, starting with the lydians each each coin network is well. I have a, i have a gold coin. I have a silver coin. I have a copper coin: oftentimes theres, three different coins. You know one for a thousand one for ten one for one. They have to be at three different scales and the shortcoming is you know: you create a system of coinage or custom tokens, and then you start shuffling them around in a network. You can only trade to the extent that you have those tokens and if people lose the tokens, you know the money is gone, but then people try to counterfeit the tokens.

They try to cut the coins different ways. Eventually, the coins might wear down. The coins have to be carried um and uh. So why do all these coin systems fail? I i guess on one hand, theres never enough of them right, theres, always a limit. On the other hand, theyre discrete, so you can go from a thousand to a hundred to a ten or from a thousand to a ten to a one. But how do you get to a point, one or .01? You know when you want to get to. You know to orders of magnitude more or or you want to make change in the middle. You end up with all these money changers and the result of the money. Changing is a huge amount of friction or impedance and um for thousands of years, people couldnt figure out how to manufacture coins that couldnt be cut or counterfeited or they were durable, and so, ultimately, ultimately, every single and every single mercantile system right has its own internal Coin system and when you, when you swap from one system to second theres this money, changer in the middle and they take you, take you for ten percent yeah. I remember traveling from um from london uh to rome back before the eu was formed robert and i showed up with dollars and i converted my dollars into pounds and then i think i took uh. I took a a plane to netherlands and i converted my pound to whatever the dutch currency was, and i went to belgium and i converted the dutch currency to the belgian currency, and then we went through france, i converted again and then we went to italy.

https://www.youtube.com/watch?v=o1pcqMBsLc0