Central Banks to MASSIVELY Buy Bitcoin | Binance Collapse.

oh potential game changer for

cryptocurrencies as Harvard comes out

and suggests that central banks should

hold cryptocurrency in particular

Bitcoin will talk about why in just a

moment we'll also talk about what's

going on with CZ and binance why can we

not unwrap our wrapped a Bitcoin and

what's going on with the dpeg we had a

little bit of pain over on the cardano

network and I can't believe this but

next Wednesday the New York Times is

actually doing a deal book a summit

there will be attendees like Mark

Zuckerberg president zielinski from

Ukraine and Janet Yellen from the

treasury Department all alongside Sam

bankman fraud I mean freed yeah for some

reason the New York Times the same

organization that put together a

wonderful puff piece on Sam bankman

freed not at all or remotely calling him

criminally negligent for the failure to

ensure the safe keeping of their

customers ask sets but instead promoting

that he just made a mistake me it all

seems pretty disgusting but let's hit

some of the updates first it is Black

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its lectures today and probably later

this afternoon so with that said let's

get into the updates the biggest issue

of concern today has to do with Bitcoin

and wrapped Bitcoin which is basically

Bitcoin on the ethereum network Bitcoin

right now is sitting at a 16 491 but

wrapped Bitcoin is sitting about 200

below that that is a side of a d Peg and

a lot of folks on multiple different

platforms have been complaining about

having issues moving their wrapped

Bitcoin to bitcoin this is a dangerous

depeg that could be the sign of issues

with underlying wrapped Bitcoin to

bitcoin liquidity what that means is if

all of a sudden some institutions like

maybe let's just say coin list don't

have enough Bitcoin to give you and you

ask them hey I want to trade my wrapped

Bitcoin for Bitcoin but they don't have

enough and they can't facilitate this

transaction we start wondering if these

companies have liquidity concerns which

causes a little bit more of a panic in

the markets and when markets start

panicking they start dumping the value

or they start trying to dump their asset

even if it means dumping it for a

discount that's potentially what you're

seeing with rap Bitcoin when you see a

deep Peg it means some individual are

saying I will sell my wbtc for less than

it's actually supposed to be worth which

it's supposed to be worth one to one to

bitcoin I'll sell it for less just to

get the liquidity to get my money out

the larger that Gap goes the more Panic

you tend to see but what we have today

is quotes from coin list a lot of fud

going around that we would like to

address head on coin list is not

insolvent a liquid or near bankruptcy

we're just experiencing technical issues

that are affecting deposit and

withdrawals this has to smell like the

largest I've ever read in my

life it's almost as bad as FTX saying

we're fine no problems with withdrawals

and then a few days later we're freezing

with rituals and then a few days later

we're going bankrupt it's the same thing

blockfy said literally in one day

blockify went from everything's fine to

we have to freeze all withdrawals it's

not fine

you can't trust this you've got to get

off exchange it's so important of course

coinless says they're working on

updating their internal Ledger systems

and that this is just purely a technical

issue don't worry it's by no means a

liquidity crunch of course it's stuff

like this that is leading to companies

like binance suggesting you know what we

will do whatever we need to do to make

sure we have a Recovery Fund for

startups basically being like the

Central Bank the Jerome Powell so that

way if companies go bust we'll bail them

out of course the problem with not being

a central bank is you could also run out

of money see the old Jerome Powell of

crypto was Sam bankman freed who's now

Sam bankman broke

now the new one in town seems to be

binance and this kind of shady guy seesy

now some people say hey man that's

offensive to an OG let me put it this

way if you're hiding in Dubai you refuse

to come to the United States because

you're getting investigated in the

United States the UK Singapore and

pretty much anywhere else around the

world and when reporters show up to your

offices you tell them oh nobody's here

because of covid in 2022 and then you do

a virtual tour and you tell people well

I mean it's all sparse around here

because people are working from home

let's just say there's reason to be a

little sussed out about your business

operations over at binance but I

understand the desire to be a Central

Bank in fact central banks bail out

Banks so that way customers don't lose

their assets when the banks go bust

because they do stupid risky the

same thing is true in crypto ex that is

companies do stupid and risky stuff the

difference is you could end up having a

binance come in be like oh yeah don't

worry ah we'll bail out FTX let's look

at those books oh God this is way worse

than expected never mind

and then the company goes bankrupt and

people lose their money this is terrible

you can't trust the crypto exchange it's

not your keys not your crypto get off

exchanges we've been saying that for

years on the channel that doesn't mean

you can't use an exchange to transact

and buy but in general get off as soon

as possible now CZ is offering a two

billion dollar now bailout fund but when

you actually look at some of the details

of this bailout fund it starts looking a

little bit more shady again when you

actually look at the details you see

that CZ actually success quote quote

suggests quote we're going with a loose

approach where different industry

players will contribute as they wish and

then when it comes to mentioning

different industry players we get

companies like jump crypto polygon

Ventures Aptos labos uh Anna mocha

Brands GSR Cronus and Booker all of them

together are making a very very large

pledge of

50 million dollars

Which is less than two and a half

percent of the two billion dollars CZ is

hoping to raise

czs indicated they're willing to

contribute one billion dollars

themselves maybe they can raise up to

two billion dollars but in my opinion

this whole Industry Recovery initiative

is a farce I don't believe it first of

all it's disgusting enough that most of

the money in the seifu fund over at

binance is the binance token which the

problem with that is if Finance has

Financial issues the binance token will

go to zero very very quickly just like

we saw the ftt token collapse and then

the value of the safu fund is basically

worthless and if the Industry Recovery

initiative is also funded with binance

token

if even

then there is no Industry Recovery

initiative if the binance token goes

down

scary I would not hang my hat and

certainly put my money which certainly

would not put my money on a situation

like this especially when Genesis is

looking for emergency funding given

their 2.8 billion dollars in debt

reportedly trying to raise at least a

billion dollars just to survive now as

we talked about in my last video I don't

expect that the grayscale Bitcoin trust

will be going bankrupt I actually think

there's potentially an opportunity to

buy the Bitcoin uh grayscale Bitcoin

trust unless of course you think Bitcoin

is going to drop even more the discount

for net asset value is pretty nice

looking at about a 40 to 45 percent

discount uh from net asset value because

of liquidity constraints now on the flip

side though it could also be a warning

sign that what if crypto prices are

going to Trend down even more because

there ends up being a larger bankruptcy

if Genesis goes what if they end up

taking down another brokerage what if 10

other brokerages go down and they end up

taking down Finance the binance token

goes down well then Bitcoin might not be

at 16 000 anymore it might be at eight

or four or two thousand and so that's

potentially what the binance token is

starting to warn us of is that if we see

a 45 decline in Bitcoin prices we might

be under 10k now the good news though is

it's not all bad news in fact Belgium

just announced that they believe that

Bitcoin and ethereum are not Securities

which is actually very huge see they

argue that any issued cryptocurrency

backed or created solely by computer

code are not Securities this is a big

deal because there's been a lot of rumor

around what the SEC is going to declare

a security or not right now it's the

opinion of Gary Gensler the chairperson

of the SEC not an official opinion that

BTC is not a security but that ethereum

could be a security because staking

could be deemed like a Lending Service

and and potentially you're worried about

the common Enterprise concern of Lido

for example holding over 30 percent

control over ethereum because so many

people have staked ethereum 1.0 before

the merge with Lido

however this news from uh from Belgium

is a really interesting argument that

basically something is a security if

it's issued by an individual or an

entity like maybe the FDT token or the

BNB token but not BTC or ethereum

according to Belgium because they are

not issued by an individual or an entity

that potentially suggests these coins

would be more of part of the public

domain which is actually good we don't

want them to be considered Securities

now look at this though hedging

sanctions risk cryptocurrency and

Central Bank Reserves a paper put

together by Matthew F over at the

department of

Economics at Harvard University

published just a few days ago central

banks may consider holding more assets

in cryptocurrency specifically Bitcoin

as a way to hedge the risk of U.S

sanctions consider for example when

Russia was sanctioned when Russia was

sanctioned which is the 11th largest

economy in the world and these sanctions

have never ever been seen before on this

sort of scale Russia had potentially

lost about half of their International

reserves due to sanctions being freezing

their assets had they had some

Diversified risk into let's say Bitcoin

maybe you could actually call Bitcoin a

safe haven asset which you might say

that fiat currency and U.S treasuries

are no longer a safe haven asset

especially if you're a country like

North Korea Russia or Iran countries

that might be interested in actually

holding Bitcoin along with gold to

diversify away from the risk of being

able to control be controlled by the

United States they also talk about how

there is obviously some risk in holding

Bitcoin due to price volatility but that

could potentially be Diversified away

and in addition to this as long as Fiat

does not or send central banks don't

actually control the blockchain there

are a lot of opportunities to transact

both on-chain and off chain in fact

there's a page a piece here by luckner

Reinhardt and rogoff I thought this one

was very very interesting they talk

about how there are peer-to-peer

transfer networks like

localbitcoins.com that allows you to

essentially conduct transactions off

chain that end up getting bundled

together

uh and in on chain transactions but are

actually off-chain transactions and

through these methods you're able to uh

transact and kind of conceal some of the

activity uh that you're performing uh

potentially off chain which could be

kind of useful maybe uh for entities

like central banks who aren't interested

in seeing all of their transactions uh

monitored uh which is kind of

interesting because you'd think central

banks should be transparent but then

they could also as this paper argues

receive a lot of scrutiny for where

they're parking their reserves or what

they're doing with them they also make

the argument that you have to be careful

of other coins like for example axi

Infinity because axi for example and the

uh 600 million dollars worth of ether

that were stolen from the axi Infinity

Hack ended up having the US Treasury

Department sanctioned the digital wallet

used in the hack which shows you that if

the treasure department has that kind of

control it's not as decentralized as it

should be again leading to the potential

that Bitcoin might be the most hack

resistant secure and decentralized Tool

even above the proof of stake system

that ethereum now uses and even though

it'd be very expensive and difficult to

take control of that ethereum Network or

to have any kind of controlling uh uh

essentially uh power within the ethereum

network you'd have to spend a whole

substantial sum of money as they say

here half of ethereum's market cap is

about 92 billion dollars but in theory a

country could take control of a half and

then Institute a hard fork and have a

lot more control over ethereum although

it would be expensive than they would

have control over the very decentralized

Bitcoin Network kind of an interesting

piece here by Harvard honestly and they

wrap up by saying hey you know what this

is a real consideration in the face of

sanctions That central banks Diversified

not only amongst gold but also crypto

and while gold is great and universally

accepted it's really difficult to buy

and store in in its physical capacity

it's heavy to ship around and deal with

and it's easy to lose and it's a lot

less liquid than cryptocurrency which

can obviously be transferred over the

blockchain pretty dang quickly and

inexpensively another risk though to

this idea of using cryptocurrency as a

reserve is the potential rise of the

Renminbi the Chinese currency as a

currency Reserve asset reason for this

is the Redmond B is pegged to the US

dollar so some countries might actually

use the Renminbi as a proxy to the

dollar even though there can be

fluctuations in that Peg but the

countries like Russia might suggest or

or feel safer investing in the Chinese

currency than they potentially might

investing in dollar backed assets like

treasuries fascinating what's also

interesting is cardano's stablecoin

attempt ardana which was going to be

labeled d u s t is apparently shutting

down not enough money to keep the

project going some complaining that the

cardano network is just too complicated

to code on although Charles hoskinson

obviously is uh vigorously defending the

cardano network suggesting he lost about

500 000 on the ardana project and uh is

uh is is still helpful for stable coins

to come to uh cardano and that covers it

that's our news for today check out

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