CryptoBasic Podcast

Your source for all Cryptocurrency information, made for the novice investor. 

Episode 196 - Flagship Friday #83 - A (Justin) Sunny Day in San Francisco

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Another Friday, another Flagship, another excuse to dive into all the crypto shenanigans and goings-on of this past week. What has Justin Sun been up to again and how is it related to the word "chicken"? What do recent stats show about the future use cases of Bitcoin? Could it become the global reserve currency of the 21st century, replacing the gold standard and becoming the basis for a worldwide system of Cyber-Keynesianism or is the person writing this just a closeted bitcoin maximalist? What more could Karim possibly have to say about macroeconomics and politics and what's his new segment all about?

Additionally, today we talk once again about our favorite subject of the month, the Ministry of Truth's cryptocurrency, Libra. Did I say Ministry of Truth? I meant Facebook. Did I quote George Orwell? In the times we live in, can you even blame me?

Dive into the cryptoverse with us on today's Flagship Friday. 

  • Rapid Fire

  • (Story 1) (Adam) Justin Sun is definitely in the news and this is getting murky.

    • A Yahoo article reported that at 3:30PM UTC Justin Sun was not facing formal charges but was not allowed to leave the country. Three hours later Justin was doing a live periscope in SF.
    • He also postponed his Warren Buffett lunch over "health issues"
    • Allegations of illegal fundraising for Tron's ICO back in 2017 but Sun claims he complied with all financial regulators and refunded investors on Sept 20. 2017

      Tron Founder Justin Sun Posts Video Showing Him in San Francisco

      Tron Crypto Founder Accused of Money Laundering & There's Much More To It

      Update (K) -

      Lol So he says kidney stones, then Chinese media outlet Caixin - nha gov is looking at him for money laundering, illegal fundraising, and pai wo shadiness.

      He posts on Weibo

    • It originated because I admire Buffet and his love of charity, and wanting to promote blockchain

    • now says his own “selfishness” and “immature words and deeds” detracted from the effort.
    • his “mouth” got in the way of his good intentions
    • He refers to his own efforts as “failed over-marketing, which has generated a lot of consequences that I completely did not expect.”
    • To be clear he did pay the money
    • He's scared tho from what he wrote, apparently Caixin is aligned with gov and taken very seriously, and this type of thing can be a "call out"
      • In the past few weeks, I had my darkest moment with sickness and tiredness. I suffered the biggest drama ever in my life from people’s doubting and questioning.
      • I bought the Warren Buffett lunch because I admire him a lot and I have a huge passion for charity. The original reasons are good and simple. I cannot deny that I want to promote blockchain related business at the same time. However, because of my immature words, behavior, youth, and vigor, I spoke without thinking twice.
      • He praises Caixin for being a great journal, helping reform, being media teachers
      • "For the elders, leaders and regulators who care about me, I would like to express my sincere apologies to my premature marketing and words and deeds! I am deeply afraid of the adverse effects caused! I am young, not deeply involved in the world, and the blockchain belongs to the emerging industry. I am immature. It is the big pattern of the elders of the regulatory agencies and their great vigilance makes me understand the importance of social responsibility and social influence!
      • he praises Chinese socialism and the reform and just tries to appeal to the party
  • (Story 2) Discussion: Attorney General Barr speaking out against encryption

    https://apnews.com/7423e1ef65a144e6a47e4da63683b3c1

    • There have been some articles here and there about this and it keeps popping up. AG Barr spoke at a cybersecurity conference to push tech companies to provide law enforcement with access to encrypted devices. What are your takes on this
    • (Story 3) Bitfinex & Tether Respond to NYAG Allegation
  • Bitfinex’s general counsel Stuart Hoegner disputed the NYAG’s accusation that New York residents were using the platform for longer than previously stated by saying it “contains a number of inaccurate and misleading assertions”.
  • It also ceased trading in 2017 and that no NY customer has been identified.
  • Bitfinex & Tether claimed these allegations were misleading.
  • They do not transact with any NY ECPs (eligible contract participants) and are claiming any reference to NY-based trading or virtual currency firms refer to foreign entities.
  • They are also claiming they have not been proven to be a commodity.
  • (Story 4) -
  • (Bitcoin Not Moved for at Least Five Years is at an All-Time High)

    • Summary of Findings from Coin Metrics' State of the Network: Issue 9
    • The amount of Bitcoin (BTC) supply that has been untouched (i.e. not transferred) for at least five years recently reached an all-time high.
    • Store of value > medium of exchange?
    • Chart

    • Even tho supply keeps growing, percentage also ATH at 21.6%

    • Untouched supply tends to mirror Price movements

      And Bitcoin really is special compared to the rest, price change stable while others getting slaughtered.

    • "Several narratives explain the strong relative outperformance in bitcoin over this period"

      • US Regulators
        • This year Poloniex, Bittrex, and Binance all started restricting US traders in certain markets
        • June SEC filed a suit against Kin, CFTC investigating Bitmex, Libra panic
        • Theory is this drives traffic to btc since it gets most "regulatory charity" (we did see this with people praising btc)
      • Geopolitical
        • heightened geopolitical tensions and a growing acceptance that Bitcoin serves as a digital store of value and hedge in uncertain times
        • US-China trade disputes, increased threat of disruption of oil supplies in Middle East, Euro-zone fragmentation risk, tensions in Hong Kong, etc
      • Macroeconomics
        • Environment has shifted towards monetary easing
          • real interest rates down in most major developed countries, on all terms
          • Pockets of weakness in forward looking macro indicators (probably talking about the yield curve for for example) has people expecting recession
          • "It now seems nearly certain that the four major central banks of the world (the Federal Reserve, the European Central Bank, the Bank of Japan, and the People’s Bank of China) are on the cusp of another monetary easing cycle"
          • As interest rates go down, opportunity cost of holding non-yield asset declines
          • And since rates are so close to zero, theyll probably have to do some "unconventional" monetary tool like QE
  • Shots Fired!

    Ramesh Gopinath on LinkedIn: ""What's important is that Food Trust is a community approach. Farmers, breeders, logistics providers, supply chain participators, retailers - they are all putting their best efforts together." https://lnkd.in/egWA-wk #supplychain #foodtrust #foodsafety #blockchain"

  • NEW SEGMENT - DOES IT MATTER? (k)

    Survey finds adults couldn’t care less about Facebook’s Libra ‘cryptocurrency’

    1799 US adults

    Interest

    Do you trust FB?

    Compare trust for Libra vs Btc

Ledger Nano S - The secure hardware wallet

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The members of the CryptoBasic podcast are not financial advisors, and this information is provided for entertainment purposes. Please do your own research, and don't listen to these idiots.

The CryptoBasic Podcast is owned and operated by Cipher Consulting Group LLC.