Watch Out! HUGE Bitcoin & Crypto News
Every day i make videos talking about cryptocurrency, investing if thats a topic that you would like to learn some more about or just want to stay up to date with you should subscribe to the lark davis channel just take a quick second and click on that subscribe. Button and of course, if you do enjoy this kind of content, click on the thumbs up button for the youtube algorithm and do click on that notification bell. So you know i put out a new video a week, my team and i produce wealth mastery. This is a cryptocurrency investor report. Basically, the next best thing to have me as your personal crypto coach, every single issue, youre going to deep dive, altcoin report, step by step d5 tutorial top tier technical analysis, token, sales, trending coin analysis, my portfolio, airdrops and much much more. All of that for less than 10 bucks a week use the link down below in the description to start your account and learn more about becoming a member today now lets get into the news. The big news we have to start off with today is its been a lot of drama over the last 24 hours for some of our key block chains. Lets start off with the least serious stories build up to our most serious story. Ethereum got attacked today, unsuccessfully, so not really. A big deal. Ethereum is a very worn in battle tested, blockchain, successfully fended off this attack, but somebody didnt try to attack the ethereum network.
Those attackers were unsuccessful shows, of course, the power of ethereum, its good, strong, strong blockchain. That being said, ethereums layer, 2 arbitrarum went down for almost an hour today, so it was inaccessible for basically most users. At that point now arbitrarum. This is a very promising layer. 2 scaling solution for ethereum im very excited about arbitrary weve, seen some of the biggest d5 applications in the ethereum ecosystem come into arbitram curve. Finance uni swap sushi, swap loads of big guys, theyre, building an arbitrary, its potentially going to be the biggest layer, 2 environment. For ethereum, its already had a lot of money locked into their layer, 2 environment as well. So its definitely one to keep an eye on these kind of early network. Oopsies do happen from time to time. So arbor trims only a couple weeks: old, nobody lost any money. It was just down for a little bit so not too big of a deal. The big story. Today, though, solana solana, went offline for some hours today, which was definitely not good. Apparently, the network got just overwhelmed: it was trying to process 400 000 transactions per second that was not working, so essentially solana broke for a little bit. It went offline for some hours, its back up now, everythings, okay, but not a great look. I think um. This was probably solanas really big test. Its big battle battle course has been lost by solana on this front. Although the war for market share has not been lost by solana, still lots of good things ahead for the solana blockchain and look just in case youre going.
Oh see this just proves how bad solana is. It went offline for some time, thats, not good. My blockchain didnt do that. Look at this point. Most blockchains have had some kind of drama, ranging from the mundane right up to some pretty serious stuff happening bitcoin. For example, our old golden boy bitcoin, well its also had its fair share of drama in the past, that 184 billion bitcoin inflation bug or the time that the network went down for a little bit in 2013. These things happen. These things happen its. You know part of the growing pains of this innovational technology. We are on the bleeding edge of the financial revolution. Here people are moving fast, things are going to get broken, so solana lives on to fight another day, but its a bit bloodied and bruised after what happened today. Lets move on to our second story here. This is about the big infrastructure bill coming out in the united states. Weve been talking about this. Of course, a lot here on the channel. This infrastructure bill contains the most comprehensive cryptocurrency legislation ever proposed in the united states. It would provide regulatory clarity on a massive level for crypto. It deals with taxes and it also deals with different reporting measures. Now the bad amendments, the original amendments are put forward by the treasury department. Those are still in there. Those amendments have uh not been taken out. Unfortunately, you get this big infrastructure bill where theyre just gon na agree on it, because, oh i got ta pass the infrastructure bill and they jam stuff like this in there, which has no business at all being in an infrastructure bill, but its in there.
Now, if those amendments go through essentially what that means is that, if youre a miner a stake or basically a developer, trying to deploy software, you will have to become a broker. Now the treasury department has said: look, we know thats whats going to be written into law and we gave that law over to be written into law, but were not going to enforce it. I mean come on come on, were not going to force it just because its written into llamas and were not gon na enforce it if thats true its ridiculous. I dont believe the treasury department for a second but theyre supposed to be providing regulatory freaking clarity. What kind of clarity does it say when you write one thing into the bill, but then youre on the other side saying were not going to enforce that thats bad policy or theyre just going to enforce it, which is also bad policy thats, not the main point Of todays story, though, we already know all this theres new tax proposals afoot they need to fund this bill. Part of that is by closing a loophole that currently exists within the cryptocurrency industry. So lets say you do the following: you buy bitcoin at thirty thousand dollars. You sell bitcoin at sixty thousand dollars. You immediately buy bitcoin at sixty thousand dollars. Price goes down, you sell it at thirty thousand dollars and then you re buy it to ride the price back up now.
Essentially, what youve done got a bunch of profits. You sold. You re bought in you made a big tax harvest loss because you saw the market go down, you sold it a loss, so you now get a big reduction in your taxes. You immediately rebuy and ride things back up. This is a loophole. This is kind of cheating the system. This stuff is actually not allowed in stocks youre not supposed to do this in the stock market. So if you, for example, bought tesla 300 sold at 600 re bought it at 600 sold it again at 300. Re bought it 300 with that kind of same idea in mind that youre going to get a bunch of gains. Take a loss, get a big tax harvest loss rebuy ride the gains back up in order to kind of play the tax system youre not supposed to do that in stocks. In that situation, when you sell youre not supposed to rebuy um for like 30 days in that situation, theyre trying to implement the same thing for crypto its, not necessarily a bad thing. You know its uh. This part of the legislation sure close the tax loophole its going to inconvenience some people, its going to inconvenience traders, its some people are going to lose out as a result of this, but its also going to close a big tax loophole, thats currently being exploited by Clever, clever tax arbitragers, i guess you could call them.
The real problem in this bill, of course, remains the broker definitions and everything that currently exists in the bill. These extra tax collecting mechanisms not that bad close the tax loophole. Why not? Why not its reasonable? I would say: lets move on to the third story here, that is about the sec. Our old buddy, gary gensler, the new head of the sec, is out there again trying to crack some heads again talking about how he believes that the majority of tokens currently listed are securities. He said the probability is quite remote that with 50 100 or a thousand tokens any given platform has zero securities make the mistake to the extent there are securities on these trading platforms under our laws. They have to register the commission unless they qualify for an exemption. This is essentially saying that theyre going after cryptocurrency exchanges in the united states, theyre planning on going after them even more that theyre coming for the tokens. So a lot of the tokens currently listed on coinbase on kraken gemini. They will be considered securities by the sec, which means that these exchanges either have to then go and get licenses to become securities exchanges, and some of them may do that, but its a whole extra level of compliance that they probably dont want to do or theyre Going to delist these tokens that are considered to be securities, of course, its not like the sec is going to come out and tell you which tokens are securities because thats not how the sec rolls.
Oh, no, no, no, no theyll! Let you list it and then, if you make a mistake, theyre going to sue you legislation by lawsuit, now theyve also said: hey! Look if youre a cryptocurrency firm come in and talk to us just come on in and talk to us share. Your customer information share. What youre doing come discuss with us and my thought immediately when i heard that was this great scene, urtra trap drop, strap star wars, man, i love that stuff. I love that stuff because heres reality theyre out there saying oh just come on and talk to us. You know who tried to come in and talk to them. Coinbase coinbase sent the letter and what did the sec do when coinbase said, hey were going to give a lending product like so many other companies give us giving you guys a heads up here. They subpoenaed employees, they subpoenaed customer information. They simply did all the um mails and internal memos relating to lending products and then and then then heres the real kicker brian armstrong, ceo coinbase, says the sec was the only regulator that refused to meet with me saying were not meeting with any crypto companies again. Theyre talking out both sides of their mouth or maybe theyre talking about both sides of their butt here. Wait do butts, have two suicides whatever it is, it stinks. It stinks thats thats whats, going on here. The scc is creating a situation for companies and developers in the us where you just cant, win theyre, basically saying follow the rules.
People ask: what are the rules were not going to tell you what the rules are? Arent you guys in charge making the rules. Yes, we are, but were not going to tell you what the rules are, because we dont know the rules are either. But if you try anything were going to sue you. Well, let the courts sort it out bad legislation, man by a bad legislative body, sec man, sec, thats, a bad three letter organization. Fourth story of the day its about inflation, u.s consumer inflation expectations highest since 2013, says the new york federal reserve theyre, looking at 5.2 percent in august, looking forward for four percent, you can see, of course, the massive spike thats happened here in 2021, with inflation rates, Consumer goods are going up, the price of the price of living is rising. We are seeing, of course, a massive inflation right across the board, and this is actually good for bitcoin. Inflation is good for bitcoin because you buy bitcoin, you hold it its your inflation hedge. You escape the savagery of inflation theres, a reason why microstrategy, why square, why tesla bought bitcoin theyre worried about inflation right now in the u.s theres, something like seven trillion dollars in cash sitting in corporate treasury accounts. All that money is getting inflated away. I mean look if you got a thousand bucks in your bank. Account youre, probably not too worried about inflation. To be honest, its annoying youre going to pay a little bit more for stuff with the shops a lot of stuff.
But when you start talking about these companies that have billions on their balance sheets, inflation starts becoming a real real problem and thats. Also in a world where, if you try to lend your money out youre getting nothing for it, you get squat at a bank. You go in and try and lend your money at a bank. They give you virtually nothing in return. Im surprised, theyre not having negative rates yet in the u.s in bank accounts, but youre getting like 0.01 to chase bank count shocking, really shocking, not as bad as europe. Europes got negative rates in quite a few countries. Not all countries are quite a few countries, so literally, if you have a million dollars in the bank theyre going to take 0.5, maybe 1 a year, thats a pretty big number. When you consider again, companies that have billions billions in cash, inflation works in bitcoins, favor theres. Basically, a guarantee here youll be guaranteed that your dollar is going to lose value by the year 2030. Those dollars or euros that you hold in your pocket are going to be worth a heck of a lot less, especially in the 2020 cc. The central bank insanity is going on. Itll work a lot less that bitcoin in your wallet has a near certain chance of being worth a heck of a lot. More choice is pretty obvious for me anyway. Trade in your bad money for good money. Final story of today is about the big picture.
The big macro picture – this is about evergrand now evergrande may have never heard of them, but uh. They are saying that this could be like the chinese lehman brothers lehman brothers, of course, famously the domino that fell over the straw that broke the camels back. That caused the 2008 glow financial crisis now evergrand is a real estate developer, chinas second largest real estate developer drowning in debt. Currently, they are in debt for 305 billion dollars, theyre on the verge of collapse, which means that all of that debt will default thats pretty bad thing, because its not just about one company, its, never just about one company we got ta, remember the entire global economy Is massively massively incestuous, everybodys sleeping with each other everybodys in bed with each other? If this company goes down and look i just wan na say we dont know whats going to happen, the chinese government could very very easily say, hey theyre, too big to fail. Lets step in and bail them out lets make a restructuring plan. Lets make sure this doesnt get to a point where we have a lehman brothers slight collapse. That is, caused the domino effect throughout the economy. But if that doesnt happen – and if this does end up being as bad as some analysts think it could be, then this could be that first domino, the straw that breaks the camels back of the chinese economy right now, because if ever grand goes down, that 305 Billion dollars in debt, all those creditors are out that could take under some regional banks, for example, that could take under some hedge funds, some private funds, these guys that have to liquidate all of their assets at absolute fire sale prices, which puts more pressure on the Equity markets, as things get basically just sold for whatever they can be sold for now, where does crypto fit into all that china, of course, is one of the worlds biggest cryptocurrency markets, and a lot of these guys will be wanting to go into cash because if They think that the equity markets are going to tank theyre going to want to get out and get into cash to rebuy.
Later we already see chinese stocks are down this week. We already see chinese commodity prices are down this week. If that continues. If we see this pressure ramping up, if it looks like this company is going to have a lehman brothers, like effect youre, going to see people moving into cash theyre going to sell their bitcoin theyre going to sell their ethereum, not all of them, but some of Them will some of these people the funds, for example, theyre, going to go looking for cash theyre, going to get out of their more speculative investments that could have the carry on effect and its not just china, its not just china. American companies have exposure to this. European companies have exposure to this now, 305 billion dollars of debt spread out amongst enough players is not a big deal, but it starts to again think about that domino effect. Leaving brothers is only 600 billion, evergrand 300 billion. Will it be a thing were gon na find out over the next few days and weeks? I suppose if it is or not, maybe its too specific, maybe its just its just its just a real estate company, its just in china, its not that big. You know. 300 billion dollars today is not equivalent to 600 billion back. Then the moneys devalued a lot more. So all these things are there to consider, but as weve the theme of this video something to have on your radar, if you are an investor in the markets right now, one of those things just to be keeping an eye on anyway.