Idiots In Congress NEED TO STOP Trying To Ruin Crypto
The stakes are as high as theyve ever been. Trillions of dollars are on the line here as people battle it out online bitcoin, ethereum, shiba inu, all of the best currencies in the world battling it out for their share of the marketplace and whether youre a citizen of the us or assistant of the world. There is one group of people with complete and total control of that future, but luckily, for us its only the best, the brightest, the strongest and the most technologically savvy group of people the world has ever seen. Google knows that i am moving over there. Users dont pay for your service. Senator we run at us. Will you commit to ending fence stuff? We are totally okay. Lets take a deep breath, take a step back and try and figure out exactly what weve got going on here, because look it doesnt look good congress is going to make laws about cryptocurrency and these people probably not holding their own private keys. But regardless we need to calm down and act. Rational congress is no stranger to making dumb comments about technology. In fact, some of you might remember this. I certainly do from back when i was in high school, but the internet. If you really think about it, its just a series of tubes, the internet is not something that you just dump something on its, not a big truck its a series of tubes, so wise so ahead of his time.
But regardless here we are today – and i know its 2022 now, but we saw a lot of congressional hearings over the last month or so. And i want to dive in and take a look at some of the comments that were made because theyre pretty funny and theres no better place to start than with someone thats, always popular in the cryptocurrency streets as elon musk put it senator karen lets. Take a look at some of the stuff that elizabeth warren recently had to say about d5, because i i want to just underscore this point that if tethers tokens were actually backed one to one, it would be one of the 50 largest banks in the country. But we know that it is not and thats because, according to tethers own report, only about 10 of the assets backing its stable coin are real dollars in the bank. 90 is something else i swear to. God were gon na have to talk about usdt until the end of time. It will never stop. It will never end doesnt matter what happens, death taxes and tether fud warrens moving into two categories? Look i i dont know how many times ive had to say this before im going to say it again. Obviously, ufct is not 100 safe. Of course not all right. Most of these things are not going to be. However, the amount of people that think its unsafe versus the chance of it imploding are two totally different things and ive seen this for so many years in this industry.
Yes, tether released its holdings as a pie, chart that show what part liquid reserves, but just because only a small fractious liquid of reserves doesnt mean that they dont have the money in assets. These assets that theyre in tend to be very safe and can be liquidated in fairly short term so that they could actually pay out more people. This is the pie chart that tether released and what was finding me when this happened a few months back. I saw people use this as oh, my god, its all scam. But when you look at this, it actually makes a lot of sense about three fourths of the portfolio are cash and cash equivalents under short term deposits and commercial paper, and if you look at that more specifically, you can see its 65 commercial paper 24 fiduciary deposits. 4 cash reverse repo notes and treasury bills. Out of the main pie, you can see theres 13 secured loans and 10 corporate bonds. These are not super risky investments where they can lose everything. These are things that tend to be quite liquid. That can be resold in other marketplaces, have very low interest rates, yet theyre. Quite safe usdt is the fourth largest cryptocurrency, with 78 billion tokens existing. Now. Yes, if people cashed in 78 billion tokens at once, there would certainly be a run in the bank. There would probably be a big drop in usdts price and they simply couldnt pay it out, but over a short period of time they could pay out most, if not all, of that balance, so just because they couldnt pay the whole thing out today.
Its kind of a silly point i mean u.s banks dont, have the entire amount of money on hand at any point to pay out every single person, their entire balance. So i dont really see why tether is being held to this kind of ridiculous standard that were not holding traditional banks to also i really dont have a dog in this fight im, not rooting for the long term success of a coin thats going to stay at One dollar im, not some big tether bag holder waiting for my one dollar tokens beca to become worth one dollar. I have no upside here. All im saying is be very careful when it comes to tether. Fud weve seen this for so many goddamn years and were going to continue to see it. That doesnt mean that its invincible, but it is much safer than people are leading you on to believe. In troubled economic times, people are most likely to cash out of risky financial products and move into real dollars. Stable coins will take a nosedive precisely when people most need stability and that run on the bank mentality could ultimately crash our whole economy. Just a quick point to interject here. One thing that weve seen in cryptocurrency is that, typically, when asset values plummet, we see slight raises in the value of usdt of usdc uh of the main stable coins. Because what happens is people that are holding cryptocurrencies, get scared and won a whole dollar, so they buy these stable coins now im, not saying that if theres, some tremendous financial event, these things are going to hold up.
I it remains to be seen what it would look like. They did hold up during the covet crash, where we saw the markets plummet uh just about a year a year and a half ago. However, historically, when there have been very bad events in cryptocurrency, these things have tend to hold their value and maybe even slightly increase until they return back to their normal dollar value. All right enough enough education lets get into the complete nonsense. Defy is the most dangerous part of the crypto world. Thats right guys defy is the most dangerous part of the crypto world. As we all know, there are very dangerous people in crypto theres, some dangerous, dangerous young people in crypto. Look at that face stone, cold killer its where the scammers and the cheats and the swindlers mix, among part time, investors and first time, crypto traders – hmm – where am i in that mix? Well, im not a first time, crypto investor – and i wouldnt say i do this part time so im gon na say im a swindler. I think i like that one shoot in defy someone cant even tell if theyre dealing with a terrorist ah were gon na blame. This one as terrorism, its a story as american as apple pie. I can imagine now what was going on over at elizabeth warren hq: hmm, okay, we have two options. We could try and break down one of the most complicated financial systems that weve ever seen.
That includes technologies that we dont understand on different blockchains. We also know understand into various protocols across the space using tokens that we dont know what they are. So we can bring in experts that dont have a clue about cryptocurrency to begin with, and we can try and break that down a way to explain to congress as well as the rest of the world, the intricacies and the best policies moving forward on how to Regulate this industry correctly or terrorism im going with terrorism stable coins provide the lifeblood of the defy ecosystem. In d5, people need stable coins to trade between different coins to trade derivatives, to lend and borrow money all outside the regulated banking system without stable coins defy comes to a halt. This might be elizabeth warrens main good point that shes made here that stable coins are essential for the success of d5, because otherwise there would be no way to transfer your tokens into dollars very easily. You would have to actually use centralized exchanges or find otc counters uh, instead of being able to just transfer tokens and exchange them through various decentralized aggregators, basically, would make it a lot harder to get in and out of dollars, which would put a serious damper on The dfi ecosystem, luckily, for you, if you dont, want to risk usdt, you dont like it, you dont want to be a part of that. Well, you still got plenty of great stablecoin options.
Probably your best one is usdc, which is a stablecoin issued by a consortium called center, which has various members in the cryptocurrency space. Uh uscc is widely widely regarded as the absolute best stable coin you can hold in terms of the chance it will maintain its peg, which, of course, is the most important thing with a stable coin. The fact that it ends up being a one to one rate, you also have some other uh great options like, for example, die where it is secured by assets in the protocol. So you know that these dollars actually have real assets like bitcoin and ethereum that are used to secure them same thing with mim, which is another example of a collateralized stablecoin. Oh, you know what i also forgot to mention another great option. You have for stablecoins flex usd by coin flex, okay, not to get into a silly sounding pitch here for a moment, but i do want to say: coin flex has their own stable coin called flex usd? I am sponsored by coin flex, so full transparency there, but basically you mint flex usd using usdc. So all flex usd is backed one to one by usdc, so its basically secured by the safestable coin that exists and you get paid 10 to 20 into your account daily every eight hours. The way they make that money is a repo market. They take the money that is made on their exchange using the ebook market and they just give it out to the holders of their stablecoin.
So if you dont want to be doing active, investing and said, you want to look for a stablecoin that just straight up pays you money to have it in your wallet. I would check out flex usd moving on lets. Take a look at some other interesting takes on cryptocurrency in the congressional streets. Lets hear what aoc has to say. This doesnt seem like a new financial system per se, but really an extension or perhaps expansion of our present one. Well, i would disagree with that um. I think what what i believe were seeing is a new open infrastructure layer on the internet. You would argue that that is distinct, uh, not an expansion or an increase in the sophistication of our current financial system. Uh. I believe you know for this to take uh. Take hold, it needs to be well integrated with our existing financial system and weve weve long believed in a kind of hybrid model that does that to be totally fair to aoc. Here she is more asking questions which seems kind of what you should be doing with experts on panels. Instead of just issuing your opinion on things, you dont understand not going to name any names here, but at the same time she doesnt really seem to fully understand whats going on here. The reason that this is different from the traditional financial system is that you, the end user control your own money and can interact directly with the buyer.
No longer do we need to have an intermediate intermediary or multiple intermediaries in order for online customers to transact with merchants or even to just trade person to person that sounds complicated. So let me draw up a little explanation, so you guys can understand all right. I know you guys like it when i bust out my ms paint skills so um lets see this would be the old system, so lets just draw this up. Music. The green lines represent money. The black circles represent entities Music. Here you can see the difference between the two systems. They are very similar when, with the old system, the old traditional financial system and the new cryptocurrency system, but theres one big difference, you see cryptocurrency. It goes straight from the buyer to seller, but there is an important step added in here in the old system: Music thats, really the difference between the two. You have the extra added intermediate intermediary here of uh before the money gets to the seller. Youre welcome aoc, im sure thats gon na help. You understand things a little bit better. Moving on lets see what congressman brad sherman had to say when it came to cryptocurrency. What they share is a culture, a vibe, a stick it to the man moniker a belief that somehow this is new and hip and a attack on the powers of society. Thats right, dude, im fighting the man with this picture of a penguin, slightly overweight, with a nice cool hat also were using the word hip.
Is it the 70s again now the number one threat to crypto currency is crypto. Bitcoin could be deployed displaced by ether, which could be first placed by dodge, which should be placed by a hamster coin and then theres cobra coin, and what could coin do to crypto coin? Oh uh! Where do we start with that? One? I guess, for starters, if mongoose coin blows up its probably pretty good for everyone, because when certain coins do end up bringing in new investors to the space, well, the entire space grows and thats. Why weve seen the market crap grow so much over time when projects come in, are successful and rounded up capital from outside crypto and enters the ecosystem, and it tends to be pretty good for everyone now, of course, sometimes certain money rotates out of one coin to Another and, of course, that hurts the one that left but crypto as a whole wins in this scenario. It doesnt lose what could mongos coin do to crypto coin. Also, at this point, im not sure if sherman even really knows what hes talking about. He talked about. Crypto coin in there, which isnt a thing and, of course, hes listing off all these random currencies and pronouncing those wrong, but i will say this: it has taught me one valuable thing: im gon na need to get myself some mongoose coin right now i used to Be more of a hamster coin guy, but i felt like i was just spinning on the wheel.
You try to use crypto to buy a sandwich today. I dont know where you can go in washington to use a bitcoin to buy a sandwich. Cant be done at all shermans, probably right here, you probably cant use bitcoin to buy a sandwich at your local shop, but its not because the technology isnt there to be able to use blockchain to buy these things its because merchants dont offer the opportunity for people To use them so its kind of a weird argument really the its not about the tech, not being there its about the fact that these businesses arent getting enough customers that want to use them so kind of kind of a reasonable point. But at the same time we are we, we should be comparing it to what they can do today, not to what hasnt been implemented yet okay, so i could lose six bucks in two days: uh. What about tether, buy a hundred bucks worth of tether. Two days later sell a 100 bucks worth of tether or sell the tether. Could i lose six bucks? Yes, sherman went on to attack some of the fees on coinbase, which is actually good. We should try and fight to lower fees, but then he kind of stumbled at the end, not really sure about one of the things he brought up. With regards to one percent interest rate on deposits. Uh, you have a uh deal with uh um. My time has expired, look at this mans face when he ran out of time pure joy.
Have you ever seen someone more happy to run out of time my main takeaway from this im sick and tired of getting treated like im, some kind of criminal? Oh so i used bitcoin to buy drugs on the internet and now im a criminal. I thought this was america wait. I am a criminal. What did elizabeth warren call us again, the scammers and the cheats and the swindlers? Oh, my god. We need to warn people about the dangers of d5 theres, some dangerous dangerous young people dealing with a terrorist, its all hustlers, at least the at least the youtubers theyre theyre legit, guys right just so were gon na use. Clickbait. Oh no whos left um media agencies. No, those arent gon na work, uh a mainstream media theyll have our back. No one believes in defy anymore. You use money to make money that must be illegal. I wan na warn everyone out there im going to say it loud and clear: if you think that theres a chance to make money online, you might be right, but remember youre, becoming exactly what elizabeth warren warns. You against you are becoming a part of the problem. So, unless youre a first time, crypto, buyer or a part time investor know who you are, or else youre gon na face the wrath of these guys thats gon na.