Crypto Grizz

How Financial System Is Structured Part 3

Part 3 Of Beginners Guide To Structure Of Traditional And Crypto Finalcial Systems

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 CryptoGrizz.com

Crypto Collapse Soon? (Sell or Hodl?) – Beginners’ Guide

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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 ======== 00:00 – Introduction 01:37 – Recap 02:44 – Tether vs Lehman Brothers 04:35 – Tether’s Majority Holders 06:27 – Tether in Trading 07:22 – How Margin & Leverage Trading Works in Crypto 10:25 – Tether Printing 12:45 – How & When a Crypto Collapse Could Happen 16:31 – Worst Case Scenario: Crypto Collapse 20:40 – Crypto Casey’s Play 23:14 – Outro
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<🌘 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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Steven Curtis
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.
 
DIMA Dmitry Fedotov
I’m glad to have watched it just now. Thank you Casey!
Amed Alberto Sanchez
I’ve been waiting all day for this. You are torturing us Casey! Looking forward to the video.
 
XxlCJlxX
9:08 (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.. Nice
 
Ed Ch
Could the crypto market not survive with USDC if Tether failed?
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BROUGHT TO YOU BY CRYPTO GRIZZ

How Financial System Is Structured Part 3

How Financial System Is Structured Part 3

Check Out Our Crypto Privacy Site: CryptoGrizz.com

Check Out Our Crypto Trading Site: CryptoGrizzTrader.com

************************

COMPLETE VIDEO TRANSCRIPT

00:00
is the cryptocurrency market a card
00:01
house that could collapse at any moment
00:03
and if so what’s underneath the card
00:04
house well if you tuned into the first
00:06
two videos of this series you know that
00:08
it might
00:09
frightfully be another card house hello
00:11
i’m cryptocasey and this is the third
00:12
video in a three-part series where we
00:14
investigate whether or not the
00:15
cryptocurrency market
00:17
as well as the entire global financial
00:18
system is indeed on the verge of
00:20
collapse
00:21
this is a beginner’s guide where we will
00:23
break down step by step how tether
00:25
the largest and most pervasive stable
00:26
coin may have become a metastasized
00:28
cancer that is too large and pervasive
00:30
to simply remove
00:32
without causing the entire crypto market
00:34
to collapse here’s a visual
00:35
representation of the current structure
00:37
of the cryptocurrency market
00:38
a card house with tether as the bottom
00:40
base level propping up everything else
00:42
for now in this third and final video
00:45
we’re going to pull it all together and
00:46
explore why the structure of the
00:48
cryptocurrency market
00:49
may be a card house on the verge of
00:50
collapse courtesy of
00:52
tether other stable coins lack of
00:54
regulatory oversight
00:56
and the fact that its foundation is the
00:58
inverted card house that is the current
01:00
traditional financial system
01:02
our goal by the end of this video series
01:04
is for us to understand
01:05
the traditional financial systems
01:06
relationship with the cryptocurrency
01:08
market
01:08
and if a crypto collapse can happen how
01:11
and when it could
01:12
happen and what we can do to protect
01:13
ourselves as investors
01:15
in this space if you haven’t yet click
01:17
on the link above to check out video 2
01:19
where we learn about the structure of
01:20
the cryptocurrency market and the
01:22
crucial role that stable coins like
01:24
tether
01:24
play in its system awesome let’s hit
01:27
video three
01:28
[Music]
01:37
just a quick recap for a more seamless
01:39
transition between the first two videos
01:41
currently the crypto markets are still
01:43
highly correlated with the traditional
01:45
markets
01:46
and on an abstract conceptual level the
01:48
crypto markets are still
01:49
utilizing the traditional global
01:51
financial system as foundation
01:53
and here’s a visual representation of
01:54
the current state of the u.s financial
01:56
system
01:57
an inverted or upside down card house
01:59
the lowest rows representing less risky
02:01
assets and the highest rows representing
02:03
the most risky assets
02:05
from bottom to top we have a few real us
02:08
treasury bonds
02:09
above those we have rehypothecated bonds
02:11
and real estate
02:12
then mortgage-backed securities and
02:13
commodities next stocks bonds and
02:16
equities
02:16
and finally options futures and
02:18
derivatives and as we reviewed earlier
02:20
the structure of the cryptocurrency
02:22
market is a right-side up card house
02:24
whose foundation
02:25
is the traditional financial system
02:27
inverted card house
02:28
which when we pull it all together looks
02:30
something like this in this video we are
02:32
going to focus mostly on the bottom row
02:34
of the crypto card house
02:35
tether so let’s break down the situation
02:37
together in six sections so we can get a
02:40
better understanding
02:41
about the current state of affairs in
02:42
the crypto markets
02:44
section one tether versus lehman
02:46
brothers if we consider the straw that
02:48
broke lehman brothers back
02:49
in the last global financial crisis
02:51
which was 1.2 percent of their portfolio
02:54
that consisted of
02:55
commercial paper going into default that
02:57
should be extremely
02:58
worrisome as we discussed in the last
03:01
video 50 percent of tethers reserves
03:03
consist
03:04
of commercial paper which is unsecured
03:06
corporate debt
03:07
to which companies we don’t know and
03:09
unlike a regulated entity like lehman
03:11
brothers that has to list asset values
03:13
using amortization schedules and similar
03:16
to ensure accuracy of the assets current
03:18
valuations
03:19
tether is able to list the value of its
03:21
commercial paper as the purchase price
03:23
not what the commercial paper is worth
03:25
at this time so they very well could be
03:27
reporting that 50
03:29
of their reserve assets are commercial
03:30
paper at the price they initially
03:32
purchased it for
03:33
meanwhile since then the loans are in
03:35
default making them
03:36
worthless so we’ve got a regulated
03:38
entity lehman brothers that had 1.2
03:41
percent of their portfolio
03:42
go into default which triggered the last
03:44
global financial crisis
03:46
and we have tether with 50 of their
03:48
portfolio of the same type of assets
03:50
that destroyed layman
03:51
except we have no idea who the
03:53
corporations are that tether lent out to
03:55
and we have no idea about the current
03:57
status of the loans
03:58
a 1.2 default affected the entire global
04:01
financial system
04:02
by triggering a run on lehman brothers
04:04
which was stopped and mitigated by the
04:06
government
04:07
stepping in and guaranteeing the loans
04:09
the bailout consider the size of the
04:11
cryptocurrency market
04:12
compared to the entire global financial
04:14
system which is quite insignificant at
04:16
this time
04:17
and then consider that the third largest
04:18
cryptocurrency by market cap
04:20
is tether and 50 percent of its reserve
04:22
assets
04:23
could be worthless that is more than
04:26
enough to cause a systemic collapse of
04:28
the crypto market at any time
04:30
and there is no government that is going
04:31
to step in and save the day
04:33
but wait it gets darker section two
04:36
tethers majority holders so we know how
04:38
pervasive tether is in the crypto
04:40
markets
04:40
but what’s even more disturbing is how
04:43
most of the tether tokens in circulation
04:45
are in a very small number of addresses
04:47
who owns those addresses
04:49
and where they are located check it out
04:51
over 65
04:52
of tether tokens are currently held
04:54
through chinese exchanges like
04:56
wabi in binance which is lovely
04:58
considering the massive drama with china
05:00
versus crypto
05:01
and the massive drama recently with
05:03
finance if china bans tether
05:05
meanwhile over 65 of all tether is held
05:08
up in chinese exchanges
05:09
what do you think they’re going to do
05:10
with all that tether yeah they’re going
05:12
to get rid of it
05:13
not good also out of the 3.3 million
05:16
total tether addresses
05:18
the top 100 addresses hold more than 45
05:21
of all circulating tether that means
05:24
then less than 0.0003
05:28
holds over 45 of all tether tokens it
05:31
would not take many people liquidating
05:33
their tether
05:33
to end the musical chairs game that is
05:35
the cryptocurrency market right now
05:37
but it’s even worse than that get this
05:40
the top 10
05:40
addresses which accounts for a whopping
05:44
0.0003
05:46
of all the existing tether addresses
05:48
holds and controls over 25 percent of
05:51
all the circulating tether tokens
05:53
this means if one person or entity or
05:55
whoever is in control of one of these 10
05:57
10 only 10 wallets decides to liquidate
06:00
all of their tether it would start a
06:01
massive run on tether
06:02
to redeem for dollars that are most
06:04
certainly not available
06:06
for redemption thinking back to tether’s
06:08
2.9
06:09
cash in reserves so when the music stops
06:11
there will not be enough chairs for
06:13
everyone to sit in
06:15
the fate of the entire crypto market is
06:17
extremely concentrated
06:18
among a few people likely in a country
06:21
that is on a war path to ban
06:22
cryptocurrency at large
06:24
big yikes guys big big yikes section 3
06:28
tether in trading so 50 to 60
06:31
of all bitcoin trades are for tether
06:33
which considering the fun facts we just
06:35
shared together previously
06:37
is a scary situation for the price of
06:39
bitcoin
06:40
trades aren’t just back and forth
06:41
between tether and bitcoin and other
06:43
cryptos
06:44
trading can also consist of margin and
06:46
leveraged trading
06:47
and due to lack of regulation and
06:48
oversight there is an unknown amount of
06:50
leverage in the crypto markets
06:52
right now and as we go through this
06:54
section also keep in mind how we
06:55
discussed in the last video
06:57
how rehypothecation of crypto like
06:59
tether via lending is absolutely
07:01
out of control and if you haven’t
07:02
watched that video yet you can do so by
07:04
clicking on the link above
07:06
okay cool so as if lending out the same
07:08
tether a million times over
07:10
isn’t bad enough let’s talk about how it
07:12
relates to margin and leverage trading
07:14
and how it exponentially multiplies by a
07:16
staggering factor how bad a systemic
07:18
collapse of crypto
07:19
could be if there was a run on tether
07:22
how margin and leverage trading works in
07:24
crypto
07:25
margin and leveraged trading in crypto
07:27
is gambling with money you don’t have
07:29
people borrow money that has likely been
07:31
lent out five times over to make a bet
07:33
about the future price of bitcoin or
07:35
other crypto
07:36
and then sit and pray for massive
07:38
massive profits that nine times out of
07:40
ten
07:40
do not materialize quite the opposite
07:42
actually check it out
07:44
let’s say this person has one thousand
07:46
dollars that they decide to gamble
07:47
and the exchange they go to use offers
07:50
to lend them an additional 250
07:52
to gamble with for free awesome free
07:54
money to gamble with
07:55
sign me up right and that they did they
07:58
took the 250
07:59
loan and gamble a total of 1 250
08:03
on the unknown future price of bitcoin
08:05
nice
08:06
and just to further set the scene when
08:08
this person gave the exchange their one
08:09
thousand dollars
08:10
the exchange credited their account with
08:12
a thousand dollars worth of fugusi
08:14
fugazi fairy dust teller tokens
08:16
and took the real one thousand dollars
08:18
cash to either reinvest in likely
08:20
rehypothecated treasury bonds
08:22
pay for real expenses like office
08:23
supplies payroll etc
08:25
or similar oh and that 250 they lent to
08:28
that person
08:29
was lent to them from another exchange
08:31
where they also took some poor souls
08:33
real cash in exchange for tether
08:35
plus 10 interest to let them borrow it
08:37
out so who actually has the real
08:39
original tether tokens in lending
08:41
situations
08:42
nobody knows but does it really matter
08:44
because in the end
08:45
if an extremely small amount of people
08:47
with an extremely large amount of tether
08:49
decide to get out
08:51
no one will be able to redeem the tether
08:52
for anything anyhow
08:54
awesome back to the example so on the
08:56
original exchange where the gamble in
08:58
question
08:59
is taking place on their balance sheet
09:01
they show one thousand two hundred fifty
09:02
dollars worth of
09:03
assets one thousand dollars of which is
09:06
tether and 250 dollars of which is a
09:08
re-hypothetic
09:10
and the total 1 250 of tether
09:13
is only as good as its reserves which is
09:15
largely unknown but probably worthless
09:18
see how the card house situation is
09:19
starting to play out
09:21
right so let’s say the gambler in our
09:23
example bet that the price of bitcoin
09:25
would
09:25
increase and at the time of the bet the
09:27
price of bitcoin was 30
09:29
000 but as luck would have it
09:31
unfortunately the price of bitcoin falls
09:33
to 22
09:34
500 which is a 25 decrease
09:37
what happens well the 250 they borrowed
09:40
becomes due and is instantly wiped out
09:42
the 1 000 of tether they gambled is now
09:45
worth 750
09:46
and considering that they had to pay the
09:48
250 back that they never had in the
09:50
first place
09:50
they only have 500 of tether remaining
09:53
also notice how the balance sheet of the
09:55
exchange
09:55
went from a cool 1 250 asset to a paltry
09:59
500
10:00
asset now imagine this on a large scale
10:02
where tons of crypto is being
10:04
rehypothecated
10:05
a large percentage of the trading is via
10:07
tether lots of entities have been
10:09
borrowing against one set of real
10:11
dollars to create digital
10:12
representations of dollars out of thin
10:14
air
10:15
and then a flash crash happens in their
10:17
underlying asset values
10:18
drop very unstable the antithesis of
10:21
what stable coins should be capable of
10:23
in crypto section 4 tether printing
10:26
it was once believed that for every
10:27
tether issued into circulation
10:29
it was from someone else depositing a
10:31
real us dollar into tether’s bank
10:33
account
10:33
so when lots of tether was entering the
10:35
crypto markets people believed it
10:37
signaled lots of money coming into the
10:39
space
10:39
new investors with new money or existing
10:41
investors with more money
10:43
people and companies choosing to invest
10:45
more capital in the space is a great
10:46
thing
10:47
however over time and since we now know
10:49
that each tether token has never
10:52
ever once in its entire existence been
10:54
backed one to one by real dollars
10:57
and since we know it’s shady characters
10:59
business structure and foul play
11:00
it’s become quite clear that tether has
11:02
adopted fed chair jerome powell’s go-to
11:05
move
11:07
[Music]
11:09
that’s right printing tether out of thin
11:11
air and every time there was a massive
11:13
increase in the supply of tether
11:15
it perfectly correlated with a massive
11:17
increase in bitcoin’s price
11:19
in fact if you remember from the last
11:20
video over 50
11:22
of bitcoin’s price increase was due to
11:24
bitfinex and tether manipulating the
11:26
price
11:26
also suspiciously but rather
11:28
unsurprisingly tether is the only stable
11:30
coin that only increases in supply
11:33
and doesn’t decrease people aren’t
11:34
redeeming their tether for dollars
11:36
or other crypto please they are but
11:39
tether tokens have been lent out and
11:40
rehabilitated so many times
11:42
there’s no regulation or oversight and
11:44
so tether prints to their heart’s desire
11:46
to their few cronies that hold ungodly
11:49
amounts of tether tokens
11:50
and what are they doing likely buying a
11:52
lot of bitcoin and other crypto
11:54
and then what holding or selling for
11:56
real dollars
11:57
who knows but either way this is the
11:59
main thing that vastly concerns me
12:01
in the short term we don’t know how much
12:04
crypto valuations are propped up from
12:06
debt
12:06
and not just debt debt upon debt upon
12:09
debt
12:10
debt issued upon something that’s
12:12
underlying asset valuation is
12:13
unknown risky commercial paper junk
12:16
bonds rehab propagated treasuries where
12:18
the same treasury
12:19
simultaneously exists on who knows how
12:21
many other entities balance sheets
12:23
all as collateral for loans so both
12:25
aimless printing of tether tokens as
12:27
well as rampant rehypothecation of
12:29
stable coins at large
12:30
is absolutely propping up the current
12:32
prices of crypto today
12:34
and when either people get scared and do
12:36
a run on stablecoins or when stable
12:37
coins get the smackdown from governments
12:39
it will likely affect the crypto markets
12:41
let’s talk about how
12:43
and when section 5 how and when a crypto
12:45
collapse could happen
12:47
let’s talk about how a crypto collapse
12:48
could happen i think the most likely
12:50
scenario
12:51
is that one or many of the few addresses
12:54
holding large amounts of tether tokens
12:56
dumps causing a mass liquidation of
12:58
tether
12:59
and crypto at large why because everyone
13:01
a part of the tether scheme
13:03
knows they do not have underlying
13:05
reserve assets backing all the
13:06
circulating tokens
13:08
they feel the heat from regulators
13:09
worldwide and yes for years and years at
13:12
this point there has been tetherfud
13:13
but it’s coming to a head and coming to
13:16
an end soon
13:17
they know it their buddies running
13:18
exchanges know it so what would you do
13:20
if you were a criminal committing a
13:22
crime for so long
13:23
that’s about to come to an end do you
13:25
just let everyone else that’s not in on
13:27
it
13:27
pull out of the market first or do you
13:29
and your cronies
13:30
pull out first right so i think they
13:33
will orchestrate a
13:34
d-day and get out causing a mass
13:36
liquidation
13:37
and mass crash of the crypto market it’s
13:39
either that or the market loses
13:40
confidence first
13:41
and starts pulling out or the government
13:43
could wield its sword and cause a run to
13:45
begin as well
13:46
but i think they are less likely to do
13:47
that because they know how inextricably
13:50
intertwined crypto has become with the
13:52
traditional markets
13:53
and a crypto crash could cause a
13:55
breakdown in their precious
13:56
stock market as well so when could a
13:58
crypto collapse happen
14:00
it could be sooner than we think here
14:01
are some reasons why
14:03
tether’s next audit is due this month
14:05
and as we all know the very first audit
14:07
they produced for q1 was extremely
14:09
alarming
14:10
also congress has given the sec a july
14:12
28
14:13
deadline to address crypto regulations
14:15
and you know they are especially keen to
14:17
sort out the stablecoin fiasco
14:19
the us is approaching its debt limit and
14:21
congress is running out of time to
14:22
address that
14:24
also the fed continues to buy treasuries
14:26
which is increasing the money supply
14:28
reverse repo activity that we discussed
14:30
in video 1 suggests that there is
14:32
way too much counterparty risk for
14:34
financial institutions to park excess
14:35
cash anywhere
14:36
except for the fed which is creating
14:39
deflationary pressure
14:40
in the economy we also have way too much
14:42
liquidity in the financial system
14:44
without adequate collateral in
14:46
circulation which is causing banks to
14:48
choose not to lend
14:49
stifling economic stimulation we have
14:52
asset prices bubbling
14:53
prices of goods and services increasing
14:56
supply and demand for goods are
14:57
simultaneously dropping
14:59
and as always the last friday of each
15:01
month options expire
15:03
on top of it all we are in the midst of
15:05
typical summer doldrums
15:06
and lots of uncertainty awaits as the
15:08
northern hemisphere enters into flu
15:10
season
15:11
in the wake of the cobia delta variant
15:13
situation look
15:14
the tether thing has been a long overdue
15:16
long time coming thing
15:18
but there is a perfect storm of events
15:20
converging over the next couple weeks
15:21
and months that has me confident that
15:23
something will happen
15:25
a crypto crash maybe a slow bleed out
15:28
over time in crypto
15:29
maybe lots of boring sideways movement
15:31
keeping us relatively stable
15:33
maybe a massive bull transcending crypto
15:36
prices parabolic
15:37
sure anything is possible tether hasn’t
15:40
been printing any new tether tokens
15:42
in a while which is probably most of the
15:44
reason we’ve been sideways
15:45
now but they could decide to start
15:48
printing tether by the millions
15:49
massively stimulating the crypto market
15:51
for a final hurrah
15:52
to drive up prices before exiting or
15:55
better yet
15:56
i think this would be the best case
15:57
scenario tether is slowly carefully
16:00
extracted from the market
16:01
while regulation and oversight are
16:03
imposed allowing more
16:04
trustworthy stable coins to take its
16:06
place and preferably
16:08
a lot of different ones so we don’t have
16:09
one stable coin that can corner the
16:11
entire market
16:12
like tether has either way i’m going
16:14
with a crash or slow bleed out i’m
16:16
bearish on crypto for the short term
16:18
especially uncertain about what the
16:20
coming weeks and months hold
16:22
i’m still super bullish for the years to
16:24
come in the space
16:25
but for now let’s talk about how we can
16:27
protect ourselves as
16:28
investors in the space during these
16:30
uncertain times section six
16:32
worst case scenario crypto collapse so
16:34
what happens if crypto collapses
16:36
well some entities go insolvent and
16:39
people that have lent out their money
16:41
who have zero clue how many times it has
16:42
been lent out and rehabilitated
16:44
when they go to redeem their loan there
16:46
may not be and probably isn’t
16:48
enough actual dollars in the system to
16:50
cover everything and it’s the same
16:52
situation for most of the other stable
16:54
coins
16:54
as there is no regulation or oversight
16:56
at the moment and even if decentralized
16:58
stable coins are available
16:59
like die the volume associated with them
17:02
isn’t enough to keep things afloat
17:04
if tether goes bust and we discussed in
17:06
the last video
17:07
there is no fdic insurance behind any
17:09
stable coins
17:10
and any stable coins stuck in the market
17:12
when a mass run on them occurs
17:14
it will likely affect their dollar peg
17:16
as we’ve seen in the past
17:17
this happened with bitfinex exchange
17:19
back in october of 2019.
17:20
bitfenix froze withdrawals and stopped
17:23
allowing deposits of dollars
17:24
into tether and the dollar peg went down
17:27
to 85 cents
17:28
sure there was no market crash but the
17:30
value of tether went down by
17:32
15 the same and similar would happen
17:34
again
17:35
tether withdrawals will be frozen
17:37
exchanges could halt trading activity
17:38
and likely all deposit and withdrawal
17:40
activity
17:41
people will freak out and the price of
17:43
stablecoin could fall below
17:45
the one dollar peg anything you have on
17:47
exchanges
17:48
be prepared to have access deposit and
17:51
withdrawal restrictions
17:52
all while the price of everything drops
17:54
significantly
17:55
and quickly to the tune of could be 80
17:57
to 90 percent
17:58
literally be prepared to watch the value
18:00
of your accounts drop while there’s
18:02
nothing you’re able to do about it
18:03
as entities like exchanges go insolvent
18:06
lawsuits get filed
18:07
people sign up for them but in the end
18:09
lawsuits take years and if there’s
18:11
nothing to recover
18:12
there’s nothing to recover no stablecoin
18:14
or crypto is backed by the fdic
18:17
the government will not come in and save
18:18
you and with lack of regulations
18:20
in most of these entities existing on a
18:22
global scale the legal system is
18:25
far too behind to rely on if you lose
18:27
your funds
18:28
if restrictions are lifted people will
18:30
be so desperate they would take 50 cents
18:32
per stable coin
18:33
then nothing at all if that’s the only
18:35
option either way we all need to make a
18:36
decision
18:37
if you are comfortable with the
18:39
possibility of an 80 to 90
18:40
pullback and would hold for the long
18:42
term anyways talking
18:44
a year five years and want to avoid the
18:46
tax implications of selling
18:48
and want to keep your crypto get it off
18:50
the exchanges
18:51
yesterday and onto cold storage hardware
18:54
wallets
18:54
bear in mind that even if you have your
18:56
crypto on a hardware wallet
18:57
the value in price that you see on the
18:59
market will be the same value and price
19:02
of your investments in your wallet
19:03
the only difference between leaving them
19:05
on the exchange versus your own wallet
19:07
is if the exchange goes bankrupt and
19:09
your crypto is still on the exchange
19:11
you will probably lose them forever and
19:12
not be able to recover your funds
19:14
on your hardware wallet sure the value
19:16
drops but you still own the crypto you
19:18
can scroll down to the description area
19:19
below to access the correct and official
19:21
sites of my recommended hardware wallets
19:23
bc vault is my personal favorite another
19:25
option is the ledger nano backup pack
19:27
so scroll down to check them out if you
19:29
choose to stay in your crypto positions
19:31
also consider what you’re invested in
19:34
could small and medium cap projects
19:35
survive if posts crash we have a long
19:38
nuclear bare winter
19:39
most won’t so i would assess my
19:41
portfolio and hold on to the larger cap
19:43
main cryptocurrencies
19:44
if that’s how you choose to play out a
19:46
potential crash bear in mind that even
19:48
if the crypto is on your hardware wallet
19:50
if a project fails and the token becomes
19:52
worthless or if the project is very
19:54
small
19:55
after a crash there may not be enough
19:57
buyers available in the market
19:59
if you choose to sell rendering it
20:00
worthless so consider that possibility
20:03
if you are not comfortable with the
20:04
possibility of a significant crash in
20:06
the short term
20:06
consider consulting with an accountant
20:08
about the tax implications of selling
20:10
and trade your crypto for cash and
20:12
withdraw the cash to an fdic
20:14
insured bank account if you’re a high
20:16
roller consider only putting a max of
20:18
250 000
20:19
per bank account as the fdic only
20:21
insures up to 250 000
20:23
per depositor if a crash happens or slow
20:26
bleed out happens
20:27
it would present great opportunities for
20:29
jumping back in after we know more about
20:31
what the heck is going on
20:33
or if we rise and continue the bull
20:34
cycle sure you may miss some games
20:36
but at least you got some sleep over the
20:38
next coming weeks and months
20:40
right section seven crypto cases play
20:42
this is not financial advice
20:44
this is what i decided to do based on
20:45
what i think may happen
20:47
and on my unique current situation
20:49
tether is so entrenched in the crypto
20:51
market
20:51
and considering the totality of all the
20:53
information we discussed
20:54
over the course of this three-part video
20:56
series i can’t in my wildest imagination
20:59
figure out how we can avoid a
21:01
substantial collapse
21:02
if or when tether goes bust i also can’t
21:05
in my wildest imagination
21:07
see how tether would be able to continue
21:09
on its current path
21:10
for much longer considering the current
21:12
perfect storm brewing we discussed
21:14
earlier
21:15
at the end of the day bear markets are
21:17
perfect for building
21:18
we shake out all the crypto tourists the
21:21
fundamental investors stay
21:22
like we always have been the last
21:24
several years and we build
21:26
we build our knowledge about technology
21:28
about finance
21:29
investing economics psychology
21:32
the government business structures
21:35
geopolitical relations
21:36
history everything that affects
21:38
cryptocurrency where it’s headed
21:40
and how it will get there with that
21:42
knowledge we can build income streams
21:44
that help us maintain our wealth over
21:46
time regardless of what market cycle we
21:48
are in
21:49
if we enter another extended bear market
21:51
most of you will quit crypto altogether
21:53
and only come back for the next bull
21:55
cycle if you would rather use a bear
21:57
cycle to build your knowledge in crypto
21:58
consider protecting your ability to
22:00
generate income in the space by learning
22:02
more about the advanced technical
22:04
concepts of blockchain
22:05
to become a developer in the space ivan
22:07
ontax academy is a great resource to
22:09
consider
22:09
and if you use the link below you can
22:11
get access to the academy at a
22:12
discounted price
22:13
so scroll down to check it out so my
22:15
play considering all of the uncertainty
22:17
ahead in the short term
22:19
that may create extraordinary buying
22:20
opportunities if you’re a long-term
22:22
fundamental investor in the space
22:24
is selling all small and mid-cap
22:26
altcoins
22:27
cashing out 60 of my positions and
22:29
keeping the cash on the side
22:31
for the short term the 40 i’m holding
22:33
consists of bitcoin
22:34
ether chain link polka dot and matic and
22:37
yes i know i’m a big proponent of
22:39
don’t try to time the market but again
22:42
it looks like a weird perfect storm
22:43
may be underway so i’m acting more
22:45
cautiously for the time being
22:47
if i lived in a country with
22:48
untrustworthy banks and an already
22:50
hyper-inflated largely worthless fiat
22:53
currency i would probably just keep my
22:55
bitcoin and major crypto
22:56
on a wallet getting it off exchanges if
22:59
you want to keep crypto
23:00
is imperative right now in my opinion
23:02
again not financial advice
23:03
this is the play i put into action for
23:05
my unique position
23:07
hopefully this video series will give
23:08
you some things to consider when
23:09
assessing your own
23:10
unique position during these crazy times
23:13
and behold for the last time in this
23:15
series
23:15
the structure of the current traditional
23:17
financial system in the form of an
23:19
inverted
23:20
card house that also currently serves as
23:22
the foundation of the entire
23:24
cryptocurrency market
23:25
card house the crypto card house that is
23:27
most certainly
23:28
courtesy of tether awesome
23:31
congratulations for making it through
23:32
the final chapter of this video series
23:35
i hope it helps us all better understand
23:37
and appreciate the current state of the
23:38
crypto market so we can all
23:40
implement ways to protect our
23:41
investments this is the final video in a
23:43
three-part video series
23:44
so make sure to check them all out to
23:46
get the full scoop if you enjoyed this
23:48
video please make sure to like this
23:49
video and subscribe to my channel for
23:51
more
23:51
crypto content so do you guys think
23:53
there will be a crypto market crash soon
23:55
or am i being too bearish what’s your
23:57
plan of attack over the next month or so
24:00
let me know in the comments below be
24:02
safe out there
24:04
[Music]
24:22
you