<h2>How Financial System Is Structured Part 3</h2>
<h3>Part 3 Of Beginners Guide To Structure Of Traditional And Crypto Finalcial Systems</h3>
Casey has done a lot of work in researching this subject and she lends a sharp insight into the possible future problems for the cryptocurrency system. Our thanks to Crypto Casey for allowing the repost of these videos by us here at <a href="https://cryptogrizz.com"><em><strong>CryptoGrizz.com</strong></em></a>

https://youtu.be/pILNFu0bxx0
<h2 style="text-align: center;"><strong>Crypto Collapse Soon? (Sell or Hodl?) - Beginners’ Guide</strong></h2>
9,496 viewsPremiered 4 hours ago

<a tabindex="-1" href="https://www.youtube.com/channel/UCi7RBPfTtRkVchV6qO8PUzg"><img id="img" src="https://yt3.ggpht.com/ytc/AKedOLSKrzM5r_kcuqz4ER0gUpKy2Ikyk1G3-1wqT3C4=s48-c-k-c0x00ffffff-no-rj" alt="" width="48" /></a>

<a dir="auto" spellcheck="false" href="https://www.youtube.com/channel/UCi7RBPfTtRkVchV6qO8PUzg">Crypto Casey</a>

219K subscribers

This is the third video of a beginners' guide where we will break down step-by-step how the traditional financial system is structured, how the cryptocurrency market is structured, what stablecoins are, their role in the cryptocurrency market, and why stablecoins will both drive massive global adoption of cryptocurrencies, while also potentially threatening mass global adoption of cryptocurrencies. Our goal by the end of this video series is for us to understand the traditional financial system’s relationship with the cryptocurrency market, and if a crypto collapse can happen, how and when it could happen, and what we can do to protect ourselves as investors in the space. ======== VIDEO SUMMARY ======== <a dir="auto" spellcheck="false" href="https://www.youtube.com/watch?v=pILNFu0bxx0&amp;t=0s">00:00</a> - Introduction <a dir="auto" spellcheck="false" href="https://www.youtube.com/watch?v=pILNFu0bxx0&amp;t=97s">01:37</a> - Recap <a dir="auto" spellcheck="false" href="https://www.youtube.com/watch?v=pILNFu0bxx0&amp;t=164s">02:44</a> - Tether vs Lehman Brothers <a dir="auto" spellcheck="false" href="https://www.youtube.com/watch?v=pILNFu0bxx0&amp;t=275s">04:35</a> - Tether’s Majority Holders <a dir="auto" spellcheck="false" href="https://www.youtube.com/watch?v=pILNFu0bxx0&amp;t=387s">06:27</a> - Tether in Trading <a dir="auto" spellcheck="false" href="https://www.youtube.com/watch?v=pILNFu0bxx0&amp;t=442s">07:22</a> - How Margin &amp; Leverage Trading Works in Crypto <a dir="auto" spellcheck="false" href="https://www.youtube.com/watch?v=pILNFu0bxx0&amp;t=625s">10:25</a> - Tether Printing <a dir="auto" spellcheck="false" href="https://www.youtube.com/watch?v=pILNFu0bxx0&amp;t=765s">12:45</a> - How &amp; When a Crypto Collapse Could Happen <a dir="auto" spellcheck="false" href="https://www.youtube.com/watch?v=pILNFu0bxx0&amp;t=991s">16:31</a> - Worst Case Scenario: Crypto Collapse <a dir="auto" spellcheck="false" href="https://www.youtube.com/watch?v=pILNFu0bxx0&amp;t=1240s">20:40</a> - Crypto Casey’s Play <a dir="auto" spellcheck="false" href="https://www.youtube.com/watch?v=pILNFu0bxx0&amp;t=1394s">23:14</a> - Outro ***************************
<h2 id="count">397 Comments</h2>
<a style="font-size: 16px; background-color: #ffffff;" href="https://www.youtube.com/channel/UCKQPt53R4PPFmbEqgczU-qg"><img id="img" src="https://yt3.ggpht.com/ytc/AKedOLQ3cDgXmcNNHuyBVZNgik71Zyi7bsE8DZUcBMli=s48-c-k-c0x00ffffff-no-rj" alt="Paulson" width="40" height="40" /></a>
<h3><a id="author-text" href="https://www.youtube.com/channel/UCKQPt53R4PPFmbEqgczU-qg">Paulson</a></h3>
<a dir="auto" spellcheck="false" href="https://www.youtube.com/watch?v=pILNFu0bxx0&amp;lc=Ugw1JjH0gK0eq4CyON94AaABAg">2 hours ago</a>

&lt;🌘 I admire the efforts u put in your videos mate, digital currencies continues to reshape the world globally, its hard for for anyone going against them these days, though from a trader's perspective i feel we really need more experts in the field updating newbies / lnvesttors on how the community works. crypto currencies are gradually moving towards something big and the price surge over the past few months is just the beginning of greater things to come. lots of persons are skeptical on when to buy-in the market and whether it isn't too late to buy an asset, when you're hodling it could be but when trading its never too late to buy. a trader with the right strategy and indicators earns big regardless of market price (bulls or bears). I trade using signals from trade expert Mrs Michelle Rene Lucy with her guide and signal service i 've made over 27B TC worth of crypto assets over some months. only for crypto inclined issues ,, connect her on ͲҽӀҽ ցɾ ąʍ @ (Renelucy)

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87<a style="font-size: 16px; background-color: #ffffff; color: #3a3a3a;" tabindex="-1">View 5 replies</a> <a href="https://www.youtube.com/channel/UCaFX5US_cwfkxjTQ7rE4wNw"><img id="img" src="https://yt3.ggpht.com/ytc/AKedOLRxjeLthnNY_3hNOOdNeQ4M5jUnZ1wlSCrYjw=s48-c-k-c0x00ffffff-no-rj" alt="Steven Curtis" width="40" height="40" /></a>
<h3><a id="author-text" href="https://www.youtube.com/channel/UCaFX5US_cwfkxjTQ7rE4wNw">Steven Curtis</a></h3>
<a dir="auto" spellcheck="false" href="https://www.youtube.com/watch?v=pILNFu0bxx0&amp;lc=Ugyhaysup-3d6M-J_SN4AaABAg">3 hours ago</a>

It sounds simple, but I’m a HODLer. Been in for a while and I know where my bail out point will be on my major holds. I’ll never dump it all even at a bottom out. I’m confident that this will be the future of peer to peer economic transactions world wide.16<a style="font-size: 16px; background-color: #ffffff;" tabindex="-1">View 2 replies</a> <a href="https://www.youtube.com/channel/UCBJNsv2ZiarJF0F_yF4QnuA"><img id="img" src="https://yt3.ggpht.com/ytc/AKedOLRc6f4txb603ECLhWBw0VOeOcPcpTp5g0db5IYavBE=s48-c-k-c0x00ffffff-no-rj" alt="DIMA Dmitry Fedotov" width="40" height="40" /></a>
<h3><a id="author-text" href="https://www.youtube.com/channel/UCBJNsv2ZiarJF0F_yF4QnuA">DIMA Dmitry Fedotov</a></h3>
<a dir="auto" spellcheck="false" href="https://www.youtube.com/watch?v=pILNFu0bxx0&amp;lc=UgypHlJ-Bm6EAmGsDKZ4AaABAg">3 hours ago</a>

I'm glad to have watched it just now. Thank you Casey!9<a style="font-size: 16px; background-color: #ffffff;" tabindex="-1">View reply</a><a style="font-size: 16px; background-color: #ffffff;" href="https://www.youtube.com/channel/UC2dJ-vZPa7U7VtXM8X6AAXQ"><img id="img" src="https://yt3.ggpht.com/ytc/AKedOLQAQAaxjpAMR3iLi6AC0Z7n2ciEvGMe7T--Zf3ZtQ=s48-c-k-c0x00ffffff-no-rj" alt="Amed Alberto Sanchez" width="40" height="40" /></a>
<h3><a id="author-text" href="https://www.youtube.com/channel/UC2dJ-vZPa7U7VtXM8X6AAXQ">Amed Alberto Sanchez</a></h3>
<a dir="auto" spellcheck="false" href="https://www.youtube.com/watch?v=pILNFu0bxx0&amp;lc=UgyZPdldHBt-DpUDa5p4AaABAg">5 hours ago</a>

I’ve been waiting all day for this. You are torturing us Casey! Looking forward to the video.7<a style="font-size: 16px; background-color: #ffffff;" tabindex="-1">View 2 replies</a> <a href="https://www.youtube.com/channel/UCUXAo6FqigQog-C09ccqroA"><img id="img" src="https://yt3.ggpht.com/ytc/AKedOLSH7bucebLfQIoxoJzErzXGYZqkCQ7nwUqrrBWQ0g=s48-c-k-c0x00ffffff-no-rj" alt="XxlCJlxX" width="40" height="40" /></a>
<h3><a id="author-text" href="https://www.youtube.com/channel/UCUXAo6FqigQog-C09ccqroA">XxlCJlxX</a></h3>
<a dir="auto" spellcheck="false" href="https://www.youtube.com/watch?v=pILNFu0bxx0&amp;lc=UgwauiIIngL1AoYB9BB4AaABAg">3 hours ago</a>

<a dir="auto" spellcheck="false" href="https://www.youtube.com/watch?v=pILNFu0bxx0&amp;t=548s">9:08</a> (US financial system) Inverted card house and Crypto card house form Ethereum logo. So Ethereum is the key with DEFI and NFT.. I see where this is going.. Nice9<a style="font-size: 16px; background-color: #ffffff;" tabindex="-1">View reply</a> <a href="https://www.youtube.com/channel/UC-1snKlAaceZs0Pb0c2GbXg"><img id="img" src="https://yt3.ggpht.com/ytc/AKedOLQt37GyLd9bXQW7FLZF-3jSZpEXch6_l7KeMw=s48-c-k-c0x00ffffff-no-rj" alt="Ed Ch" width="40" height="40" /></a>
<h3><a id="author-text" href="https://www.youtube.com/channel/UC-1snKlAaceZs0Pb0c2GbXg">Ed Ch</a></h3>
<a dir="auto" spellcheck="false" href="https://www.youtube.com/watch?v=pILNFu0bxx0&amp;lc=UgxfQve1VcN5jq255Wx4AaABAg">3 hours ago</a>

Could the crypto market not survive with USDC if Tether failed?*************************
<h2><strong>BROUGHT TO YOU BY CRYPTO GRIZZ</strong></h2>
<h3><img src="https://cryptogrizz.com/wp-content/uploads/2021/01/LogoMakr-8Z7fRG-e1609784903328.png" alt="How Financial System Is Structured Part 3" width="300" height="170" /></h3>
<h3><em><strong>How Financial System Is Structured Part 3</strong></em></h3>
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<h3><strong>COMPLETE VIDEO TRANSCRIPT</strong></h3>
00:00is the cryptocurrency market a card00:01house that could collapse at any moment00:03and if so what's underneath the card00:04house well if you tuned into the first00:06two videos of this series you know that00:08it might00:09frightfully be another card house hello00:11i'm cryptocasey and this is the third00:12video in a three-part series where we00:14investigate whether or not the00:15cryptocurrency market00:17as well as the entire global financial00:18system is indeed on the verge of00:20collapse00:21this is a beginner's guide where we will00:23break down step by step how tether00:25the largest and most pervasive stable00:26coin may have become a metastasized00:28cancer that is too large and pervasive00:30to simply remove00:32without causing the entire crypto market00:34to collapse here's a visual00:35representation of the current structure00:37of the cryptocurrency market00:38a card house with tether as the bottom00:40base level propping up everything else00:42for now in this third and final video00:45we're going to pull it all together and00:46explore why the structure of the00:48cryptocurrency market00:49may be a card house on the verge of00:50collapse courtesy of00:52tether other stable coins lack of00:54regulatory oversight00:56and the fact that its foundation is the00:58inverted card house that is the current01:00traditional financial system01:02our goal by the end of this video series01:04is for us to understand01:05the traditional financial systems01:06relationship with the cryptocurrency01:08market01:08and if a crypto collapse can happen how01:11and when it could01:12happen and what we can do to protect01:13ourselves as investors01:15in this space if you haven't yet click01:17on the link above to check out video 201:19where we learn about the structure of01:20the cryptocurrency market and the01:22crucial role that stable coins like01:24tether01:24play in its system awesome let's hit01:27video three01:28[Music]01:37just a quick recap for a more seamless01:39transition between the first two videos01:41currently the crypto markets are still01:43highly correlated with the traditional01:45markets01:46and on an abstract conceptual level the01:48crypto markets are still01:49utilizing the traditional global01:51financial system as foundation01:53and here's a visual representation of01:54the current state of the u.s financial01:56system01:57an inverted or upside down card house01:59the lowest rows representing less risky02:01assets and the highest rows representing02:03the most risky assets02:05from bottom to top we have a few real us02:08treasury bonds02:09above those we have rehypothecated bonds02:11and real estate02:12then mortgage-backed securities and02:13commodities next stocks bonds and02:16equities02:16and finally options futures and02:18derivatives and as we reviewed earlier02:20the structure of the cryptocurrency02:22market is a right-side up card house02:24whose foundation02:25is the traditional financial system02:27inverted card house02:28which when we pull it all together looks02:30something like this in this video we are02:32going to focus mostly on the bottom row02:34of the crypto card house02:35tether so let's break down the situation02:37together in six sections so we can get a02:40better understanding02:41about the current state of affairs in02:42the crypto markets02:44section one tether versus lehman02:46brothers if we consider the straw that02:48broke lehman brothers back02:49in the last global financial crisis02:51which was 1.2 percent of their portfolio02:54that consisted of02:55commercial paper going into default that02:57should be extremely02:58worrisome as we discussed in the last03:01video 50 percent of tethers reserves03:03consist03:04of commercial paper which is unsecured03:06corporate debt03:07to which companies we don't know and03:09unlike a regulated entity like lehman03:11brothers that has to list asset values03:13using amortization schedules and similar03:16to ensure accuracy of the assets current03:18valuations03:19tether is able to list the value of its03:21commercial paper as the purchase price03:23not what the commercial paper is worth03:25at this time so they very well could be03:27reporting that 5003:29of their reserve assets are commercial03:30paper at the price they initially03:32purchased it for03:33meanwhile since then the loans are in03:35default making them03:36worthless so we've got a regulated03:38entity lehman brothers that had 1.203:41percent of their portfolio03:42go into default which triggered the last03:44global financial crisis03:46and we have tether with 50 of their03:48portfolio of the same type of assets03:50that destroyed layman03:51except we have no idea who the03:53corporations are that tether lent out to03:55and we have no idea about the current03:57status of the loans03:58a 1.2 default affected the entire global04:01financial system04:02by triggering a run on lehman brothers04:04which was stopped and mitigated by the04:06government04:07stepping in and guaranteeing the loans04:09the bailout consider the size of the04:11cryptocurrency market04:12compared to the entire global financial04:14system which is quite insignificant at04:16this time04:17and then consider that the third largest04:18cryptocurrency by market cap04:20is tether and 50 percent of its reserve04:22assets04:23could be worthless that is more than04:26enough to cause a systemic collapse of04:28the crypto market at any time04:30and there is no government that is going04:31to step in and save the day04:33but wait it gets darker section two04:36tethers majority holders so we know how04:38pervasive tether is in the crypto04:40markets04:40but what's even more disturbing is how04:43most of the tether tokens in circulation04:45are in a very small number of addresses04:47who owns those addresses04:49and where they are located check it out04:51over 6504:52of tether tokens are currently held04:54through chinese exchanges like04:56wabi in binance which is lovely04:58considering the massive drama with china05:00versus crypto05:01and the massive drama recently with05:03finance if china bans tether05:05meanwhile over 65 of all tether is held05:08up in chinese exchanges05:09what do you think they're going to do05:10with all that tether yeah they're going05:12to get rid of it05:13not good also out of the 3.3 million05:16total tether addresses05:18the top 100 addresses hold more than 4505:21of all circulating tether that means05:24then less than 0.000305:28holds over 45 of all tether tokens it05:31would not take many people liquidating05:33their tether05:33to end the musical chairs game that is05:35the cryptocurrency market right now05:37but it's even worse than that get this05:40the top 1005:40addresses which accounts for a whopping05:440.000305:46of all the existing tether addresses05:48holds and controls over 25 percent of05:51all the circulating tether tokens05:53this means if one person or entity or05:55whoever is in control of one of these 1005:5710 only 10 wallets decides to liquidate06:00all of their tether it would start a06:01massive run on tether06:02to redeem for dollars that are most06:04certainly not available06:06for redemption thinking back to tether's06:082.906:09cash in reserves so when the music stops06:11there will not be enough chairs for06:13everyone to sit in06:15the fate of the entire crypto market is06:17extremely concentrated06:18among a few people likely in a country06:21that is on a war path to ban06:22cryptocurrency at large06:24big yikes guys big big yikes section 306:28tether in trading so 50 to 6006:31of all bitcoin trades are for tether06:33which considering the fun facts we just06:35shared together previously06:37is a scary situation for the price of06:39bitcoin06:40trades aren't just back and forth06:41between tether and bitcoin and other06:43cryptos06:44trading can also consist of margin and06:46leveraged trading06:47and due to lack of regulation and06:48oversight there is an unknown amount of06:50leverage in the crypto markets06:52right now and as we go through this06:54section also keep in mind how we06:55discussed in the last video06:57how rehypothecation of crypto like06:59tether via lending is absolutely07:01out of control and if you haven't07:02watched that video yet you can do so by07:04clicking on the link above07:06okay cool so as if lending out the same07:08tether a million times over07:10isn't bad enough let's talk about how it07:12relates to margin and leverage trading07:14and how it exponentially multiplies by a07:16staggering factor how bad a systemic07:18collapse of crypto07:19could be if there was a run on tether07:22how margin and leverage trading works in07:24crypto07:25margin and leveraged trading in crypto07:27is gambling with money you don't have07:29people borrow money that has likely been07:31lent out five times over to make a bet07:33about the future price of bitcoin or07:35other crypto07:36and then sit and pray for massive07:38massive profits that nine times out of07:40ten07:40do not materialize quite the opposite07:42actually check it out07:44let's say this person has one thousand07:46dollars that they decide to gamble07:47and the exchange they go to use offers07:50to lend them an additional 25007:52to gamble with for free awesome free07:54money to gamble with07:55sign me up right and that they did they07:58took the 25007:59loan and gamble a total of 1 25008:03on the unknown future price of bitcoin08:05nice08:06and just to further set the scene when08:08this person gave the exchange their one08:09thousand dollars08:10the exchange credited their account with08:12a thousand dollars worth of fugusi08:14fugazi fairy dust teller tokens08:16and took the real one thousand dollars08:18cash to either reinvest in likely08:20rehypothecated treasury bonds08:22pay for real expenses like office08:23supplies payroll etc08:25or similar oh and that 250 they lent to08:28that person08:29was lent to them from another exchange08:31where they also took some poor souls08:33real cash in exchange for tether08:35plus 10 interest to let them borrow it08:37out so who actually has the real08:39original tether tokens in lending08:41situations08:42nobody knows but does it really matter08:44because in the end08:45if an extremely small amount of people08:47with an extremely large amount of tether08:49decide to get out08:51no one will be able to redeem the tether08:52for anything anyhow08:54awesome back to the example so on the08:56original exchange where the gamble in08:58question08:59is taking place on their balance sheet09:01they show one thousand two hundred fifty09:02dollars worth of09:03assets one thousand dollars of which is09:06tether and 250 dollars of which is a09:08re-hypothetic09:10and the total 1 250 of tether09:13is only as good as its reserves which is09:15largely unknown but probably worthless09:18see how the card house situation is09:19starting to play out09:21right so let's say the gambler in our09:23example bet that the price of bitcoin09:25would09:25increase and at the time of the bet the09:27price of bitcoin was 3009:29000 but as luck would have it09:31unfortunately the price of bitcoin falls09:33to 2209:34500 which is a 25 decrease09:37what happens well the 250 they borrowed09:40becomes due and is instantly wiped out09:42the 1 000 of tether they gambled is now09:45worth 75009:46and considering that they had to pay the09:48250 back that they never had in the09:50first place09:50they only have 500 of tether remaining09:53also notice how the balance sheet of the09:55exchange09:55went from a cool 1 250 asset to a paltry09:5950010:00asset now imagine this on a large scale10:02where tons of crypto is being10:04rehypothecated10:05a large percentage of the trading is via10:07tether lots of entities have been10:09borrowing against one set of real10:11dollars to create digital10:12representations of dollars out of thin10:14air10:15and then a flash crash happens in their10:17underlying asset values10:18drop very unstable the antithesis of10:21what stable coins should be capable of10:23in crypto section 4 tether printing10:26it was once believed that for every10:27tether issued into circulation10:29it was from someone else depositing a10:31real us dollar into tether's bank10:33account10:33so when lots of tether was entering the10:35crypto markets people believed it10:37signaled lots of money coming into the10:39space10:39new investors with new money or existing10:41investors with more money10:43people and companies choosing to invest10:45more capital in the space is a great10:46thing10:47however over time and since we now know10:49that each tether token has never10:52ever once in its entire existence been10:54backed one to one by real dollars10:57and since we know it's shady characters10:59business structure and foul play11:00it's become quite clear that tether has11:02adopted fed chair jerome powell's go-to11:05move11:07[Music]11:09that's right printing tether out of thin11:11air and every time there was a massive11:13increase in the supply of tether11:15it perfectly correlated with a massive11:17increase in bitcoin's price11:19in fact if you remember from the last11:20video over 5011:22of bitcoin's price increase was due to11:24bitfinex and tether manipulating the11:26price11:26also suspiciously but rather11:28unsurprisingly tether is the only stable11:30coin that only increases in supply11:33and doesn't decrease people aren't11:34redeeming their tether for dollars11:36or other crypto please they are but11:39tether tokens have been lent out and11:40rehabilitated so many times11:42there's no regulation or oversight and11:44so tether prints to their heart's desire11:46to their few cronies that hold ungodly11:49amounts of tether tokens11:50and what are they doing likely buying a11:52lot of bitcoin and other crypto11:54and then what holding or selling for11:56real dollars11:57who knows but either way this is the11:59main thing that vastly concerns me12:01in the short term we don't know how much12:04crypto valuations are propped up from12:06debt12:06and not just debt debt upon debt upon12:09debt12:10debt issued upon something that's12:12underlying asset valuation is12:13unknown risky commercial paper junk12:16bonds rehab propagated treasuries where12:18the same treasury12:19simultaneously exists on who knows how12:21many other entities balance sheets12:23all as collateral for loans so both12:25aimless printing of tether tokens as12:27well as rampant rehypothecation of12:29stable coins at large12:30is absolutely propping up the current12:32prices of crypto today12:34and when either people get scared and do12:36a run on stablecoins or when stable12:37coins get the smackdown from governments12:39it will likely affect the crypto markets12:41let's talk about how12:43and when section 5 how and when a crypto12:45collapse could happen12:47let's talk about how a crypto collapse12:48could happen i think the most likely12:50scenario12:51is that one or many of the few addresses12:54holding large amounts of tether tokens12:56dumps causing a mass liquidation of12:58tether12:59and crypto at large why because everyone13:01a part of the tether scheme13:03knows they do not have underlying13:05reserve assets backing all the13:06circulating tokens13:08they feel the heat from regulators13:09worldwide and yes for years and years at13:12this point there has been tetherfud13:13but it's coming to a head and coming to13:16an end soon13:17they know it their buddies running13:18exchanges know it so what would you do13:20if you were a criminal committing a13:22crime for so long13:23that's about to come to an end do you13:25just let everyone else that's not in on13:27it13:27pull out of the market first or do you13:29and your cronies13:30pull out first right so i think they13:33will orchestrate a13:34d-day and get out causing a mass13:36liquidation13:37and mass crash of the crypto market it's13:39either that or the market loses13:40confidence first13:41and starts pulling out or the government13:43could wield its sword and cause a run to13:45begin as well13:46but i think they are less likely to do13:47that because they know how inextricably13:50intertwined crypto has become with the13:52traditional markets13:53and a crypto crash could cause a13:55breakdown in their precious13:56stock market as well so when could a13:58crypto collapse happen14:00it could be sooner than we think here14:01are some reasons why14:03tether's next audit is due this month14:05and as we all know the very first audit14:07they produced for q1 was extremely14:09alarming14:10also congress has given the sec a july14:122814:13deadline to address crypto regulations14:15and you know they are especially keen to14:17sort out the stablecoin fiasco14:19the us is approaching its debt limit and14:21congress is running out of time to14:22address that14:24also the fed continues to buy treasuries14:26which is increasing the money supply14:28reverse repo activity that we discussed14:30in video 1 suggests that there is14:32way too much counterparty risk for14:34financial institutions to park excess14:35cash anywhere14:36except for the fed which is creating14:39deflationary pressure14:40in the economy we also have way too much14:42liquidity in the financial system14:44without adequate collateral in14:46circulation which is causing banks to14:48choose not to lend14:49stifling economic stimulation we have14:52asset prices bubbling14:53prices of goods and services increasing14:56supply and demand for goods are14:57simultaneously dropping14:59and as always the last friday of each15:01month options expire15:03on top of it all we are in the midst of15:05typical summer doldrums15:06and lots of uncertainty awaits as the15:08northern hemisphere enters into flu15:10season15:11in the wake of the cobia delta variant15:13situation look15:14the tether thing has been a long overdue15:16long time coming thing15:18but there is a perfect storm of events15:20converging over the next couple weeks15:21and months that has me confident that15:23something will happen15:25a crypto crash maybe a slow bleed out15:28over time in crypto15:29maybe lots of boring sideways movement15:31keeping us relatively stable15:33maybe a massive bull transcending crypto15:36prices parabolic15:37sure anything is possible tether hasn't15:40been printing any new tether tokens15:42in a while which is probably most of the15:44reason we've been sideways15:45now but they could decide to start15:48printing tether by the millions15:49massively stimulating the crypto market15:51for a final hurrah15:52to drive up prices before exiting or15:55better yet15:56i think this would be the best case15:57scenario tether is slowly carefully16:00extracted from the market16:01while regulation and oversight are16:03imposed allowing more16:04trustworthy stable coins to take its16:06place and preferably16:08a lot of different ones so we don't have16:09one stable coin that can corner the16:11entire market16:12like tether has either way i'm going16:14with a crash or slow bleed out i'm16:16bearish on crypto for the short term16:18especially uncertain about what the16:20coming weeks and months hold16:22i'm still super bullish for the years to16:24come in the space16:25but for now let's talk about how we can16:27protect ourselves as16:28investors in the space during these16:30uncertain times section six16:32worst case scenario crypto collapse so16:34what happens if crypto collapses16:36well some entities go insolvent and16:39people that have lent out their money16:41who have zero clue how many times it has16:42been lent out and rehabilitated16:44when they go to redeem their loan there16:46may not be and probably isn't16:48enough actual dollars in the system to16:50cover everything and it's the same16:52situation for most of the other stable16:54coins16:54as there is no regulation or oversight16:56at the moment and even if decentralized16:58stable coins are available16:59like die the volume associated with them17:02isn't enough to keep things afloat17:04if tether goes bust and we discussed in17:06the last video17:07there is no fdic insurance behind any17:09stable coins17:10and any stable coins stuck in the market17:12when a mass run on them occurs17:14it will likely affect their dollar peg17:16as we've seen in the past17:17this happened with bitfinex exchange17:19back in october of 2019.17:20bitfenix froze withdrawals and stopped17:23allowing deposits of dollars17:24into tether and the dollar peg went down17:27to 85 cents17:28sure there was no market crash but the17:30value of tether went down by17:3215 the same and similar would happen17:34again17:35tether withdrawals will be frozen17:37exchanges could halt trading activity17:38and likely all deposit and withdrawal17:40activity17:41people will freak out and the price of17:43stablecoin could fall below17:45the one dollar peg anything you have on17:47exchanges17:48be prepared to have access deposit and17:51withdrawal restrictions17:52all while the price of everything drops17:54significantly17:55and quickly to the tune of could be 8017:57to 90 percent17:58literally be prepared to watch the value18:00of your accounts drop while there's18:02nothing you're able to do about it18:03as entities like exchanges go insolvent18:06lawsuits get filed18:07people sign up for them but in the end18:09lawsuits take years and if there's18:11nothing to recover18:12there's nothing to recover no stablecoin18:14or crypto is backed by the fdic18:17the government will not come in and save18:18you and with lack of regulations18:20in most of these entities existing on a18:22global scale the legal system is18:25far too behind to rely on if you lose18:27your funds18:28if restrictions are lifted people will18:30be so desperate they would take 50 cents18:32per stable coin18:33then nothing at all if that's the only18:35option either way we all need to make a18:36decision18:37if you are comfortable with the18:39possibility of an 80 to 9018:40pullback and would hold for the long18:42term anyways talking18:44a year five years and want to avoid the18:46tax implications of selling18:48and want to keep your crypto get it off18:50the exchanges18:51yesterday and onto cold storage hardware18:54wallets18:54bear in mind that even if you have your18:56crypto on a hardware wallet18:57the value in price that you see on the18:59market will be the same value and price19:02of your investments in your wallet19:03the only difference between leaving them19:05on the exchange versus your own wallet19:07is if the exchange goes bankrupt and19:09your crypto is still on the exchange19:11you will probably lose them forever and19:12not be able to recover your funds19:14on your hardware wallet sure the value19:16drops but you still own the crypto you19:18can scroll down to the description area19:19below to access the correct and official19:21sites of my recommended hardware wallets19:23bc vault is my personal favorite another19:25option is the ledger nano backup pack19:27so scroll down to check them out if you19:29choose to stay in your crypto positions19:31also consider what you're invested in19:34could small and medium cap projects19:35survive if posts crash we have a long19:38nuclear bare winter19:39most won't so i would assess my19:41portfolio and hold on to the larger cap19:43main cryptocurrencies19:44if that's how you choose to play out a19:46potential crash bear in mind that even19:48if the crypto is on your hardware wallet19:50if a project fails and the token becomes19:52worthless or if the project is very19:54small19:55after a crash there may not be enough19:57buyers available in the market19:59if you choose to sell rendering it20:00worthless so consider that possibility20:03if you are not comfortable with the20:04possibility of a significant crash in20:06the short term20:06consider consulting with an accountant20:08about the tax implications of selling20:10and trade your crypto for cash and20:12withdraw the cash to an fdic20:14insured bank account if you're a high20:16roller consider only putting a max of20:18250 00020:19per bank account as the fdic only20:21insures up to 250 00020:23per depositor if a crash happens or slow20:26bleed out happens20:27it would present great opportunities for20:29jumping back in after we know more about20:31what the heck is going on20:33or if we rise and continue the bull20:34cycle sure you may miss some games20:36but at least you got some sleep over the20:38next coming weeks and months20:40right section seven crypto cases play20:42this is not financial advice20:44this is what i decided to do based on20:45what i think may happen20:47and on my unique current situation20:49tether is so entrenched in the crypto20:51market20:51and considering the totality of all the20:53information we discussed20:54over the course of this three-part video20:56series i can't in my wildest imagination20:59figure out how we can avoid a21:01substantial collapse21:02if or when tether goes bust i also can't21:05in my wildest imagination21:07see how tether would be able to continue21:09on its current path21:10for much longer considering the current21:12perfect storm brewing we discussed21:14earlier21:15at the end of the day bear markets are21:17perfect for building21:18we shake out all the crypto tourists the21:21fundamental investors stay21:22like we always have been the last21:24several years and we build21:26we build our knowledge about technology21:28about finance21:29investing economics psychology21:32the government business structures21:35geopolitical relations21:36history everything that affects21:38cryptocurrency where it's headed21:40and how it will get there with that21:42knowledge we can build income streams21:44that help us maintain our wealth over21:46time regardless of what market cycle we21:48are in21:49if we enter another extended bear market21:51most of you will quit crypto altogether21:53and only come back for the next bull21:55cycle if you would rather use a bear21:57cycle to build your knowledge in crypto21:58consider protecting your ability to22:00generate income in the space by learning22:02more about the advanced technical22:04concepts of blockchain22:05to become a developer in the space ivan22:07ontax academy is a great resource to22:09consider22:09and if you use the link below you can22:11get access to the academy at a22:12discounted price22:13so scroll down to check it out so my22:15play considering all of the uncertainty22:17ahead in the short term22:19that may create extraordinary buying22:20opportunities if you're a long-term22:22fundamental investor in the space22:24is selling all small and mid-cap22:26altcoins22:27cashing out 60 of my positions and22:29keeping the cash on the side22:31for the short term the 40 i'm holding22:33consists of bitcoin22:34ether chain link polka dot and matic and22:37yes i know i'm a big proponent of22:39don't try to time the market but again22:42it looks like a weird perfect storm22:43may be underway so i'm acting more22:45cautiously for the time being22:47if i lived in a country with22:48untrustworthy banks and an already22:50hyper-inflated largely worthless fiat22:53currency i would probably just keep my22:55bitcoin and major crypto22:56on a wallet getting it off exchanges if22:59you want to keep crypto23:00is imperative right now in my opinion23:02again not financial advice23:03this is the play i put into action for23:05my unique position23:07hopefully this video series will give23:08you some things to consider when23:09assessing your own23:10unique position during these crazy times23:13and behold for the last time in this23:15series23:15the structure of the current traditional23:17financial system in the form of an23:19inverted23:20card house that also currently serves as23:22the foundation of the entire23:24cryptocurrency market23:25card house the crypto card house that is23:27most certainly23:28courtesy of tether awesome23:31congratulations for making it through23:32the final chapter of this video series23:35i hope it helps us all better understand23:37and appreciate the current state of the23:38crypto market so we can all23:40implement ways to protect our23:41investments this is the final video in a23:43three-part video series23:44so make sure to check them all out to23:46get the full scoop if you enjoyed this23:48video please make sure to like this23:49video and subscribe to my channel for23:51more23:51crypto content so do you guys think23:53there will be a crypto market crash soon23:55or am i being too bearish what's your23:57plan of attack over the next month or so24:00let me know in the comments below be24:02safe out there24:04[Music]24:22you
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