The Federal Reserve JUST Failed | Cathie Wood & Bitcoin Respond.

hey everyone me kevin here so a couple

crazy things happened in the last 24

hours

that we should talk about regarding a

bitcoin the first has to do with the fed

and the second has to do with it kathy

wood over at arkhan vest so

the first is the fed so yesterday

the fed's exchange system for both ach

deposits and transfers with bank

accounts and the fed's

wire service went down for

somewhere around three hours which is

really bad

because a lot of companies and a lot of

businesses

send wires and ach transfers that need

to go through

on a particular day and when things get

delayed by a few hours

a lot of companies and businesses end up

missing cutoff times and boom

you end up not only losing a lot of

trust in the financial system but you

end up with disasters

from the point of view of accounting and

trying to solve late fees or other

issues now

yesterday was the 24th so it's not like

it was like the first of the month or

the 15th of the month

but still you know it's it's not good

for the fed's clearing system to go down

because usually though

and i'm oversimplifying here but usually

if i go into let's say

jpmorgan chase right now and i go in and

do an online wire transfer

uh to you let's say and i want to

transfer you a thousand dollars

i put your information in your name and

your address and a thousand dollars and

your bank account number and your

routing number

i hit send on that that goes to the fed

first

an analogy that a lot of people use is

kind of think about this like when you

go to into the united states after

traveling from abroad you get routed to

customs

first like my wire doesn't directly go

to you it goes to sort of this customs

agent first

and they're kind of behind that glass

like hmm

is this suspicious here it kind of

explains why every single time i try to

wire money

to a bitcoin service like block fi which

you can get 250 dollars with if you open

an account with block five by going to

medkin.com

bf anyway kind of explains every time i

want to wire money there

the customs people like hmm wiring money

to crypto and currency

delayed yeah it's like really annoying

and

they always push me in for additional

review when i wire money to something

like

a cryptocurrency service but anyway the

the system

the suits don't really love the bitcoins

yet but anyway

uh usually they check and then

eventually they're like okay we'll

approve this stamp and the wire goes

through

once they do that sort of approval the

wires can be

virtually instantaneous they're pretty

freaking fast

like when i wire money to something i've

wired money to dozens of times before

like fidelity because i'm closing a real

estate deal

i send wire oftentimes i'll send an

email after that going i just sent you a

wire

and like within five minutes i get an

email back going oh we already got your

wire

like i feel like a lot of those

approvals are just super automated

they happen fast the system often works

really well

but yesterday the system collapsed for a

total of three hours like the fed's

banking system collapsed really bad

but it's really bad for the fed

it's really good for again blockchain

and the kryptos

and this is what brings up kathy woods

see first of all

the more of these disasters that we have

like robin hood's two day clearing

process

that'll eventually go to blockchain we

won't have those issues

the more we have issues with achs and

wire

and this is oh by the way let me make

this clear like this wire issue that

came up

really rare supposedly really rare so we

heard at robin hood too that this is

like a really rare occurrence like how

can we plan for this

but these really rare issues keep coming

up

anyway this brings up kathy wood so

kathy wood this morning in an interview

talked about how bitcoin should be worth

trillions

of dollars and that we could easily see

bitcoin

blow up in value she's obviously in her

firm they're very bullish on seeing

bitcoin potentially extend a rally

to uh over 400 000 they believe that

in the future we're going to see more

and more firms adopt

cryptocurrency as a treasury which is

just a way of saying rather than keeping

money in cash

or u.s bonds like treasury bonds

basically money that you have that you

can quickly convert into cash

the more we see that transition to

bitcoin the more likely it is

that there'll be more demand for bitcoin

and the higher the bitcoin or price of

bitcoin goes

now but that's not the only thing she

said kathy wood also dropped a little

bit of uh

you know to me this is this is a big big

call here i don't know how much i agree

with this happening but it's a big call

kathy wood thinks that bitcoin might

take the place of the new

60 40. so 60 40

is a reference and it's not one that

i've ever followed but it's a reference

to having

60 of your money in stocks and forty

percent of your money in bonds

sometimes people do this age based so

they'll say okay take your age

uh minus a hundred or take a hundred

minus your age and put that much into

stocks

so for example if you're 30 years old or

you're 20 years old you take 100 minus

your age

so if you're 20 you'd do minus 20 and

that means you go

uh 20 bonds and 80 stocks or if you're

50 you go 50 50 with bond stocks some

people use that age-based split

some people use the 60 40 split 60

stocks 40 bonds and see it's important

to know too that kathy wood is a

bear when it comes to bonds she's really

anti

uh bonds right now because she thinks

the prices on existing bonds are going

to

collapse in other words she thinks rates

are going to go

up which is another reason she's bullish

on bitcoin but anyway

she thinks people might replace bonds in

a 60 40 portfolio

with bitcoin if that happens yeah

bitcoin is not

only going to go to the moon but is

going to exceed

her expectations of the moon

it'll be nuts so

really exciting uh you know a lot of

good news here in terms of bitcoin and

again

the more we see our existing banking

infrastructure crumble or come under

stress or strain

like we saw with robinhood or the fed

yesterday the more

bitcoin goes mainstream it's crazy

personally i don't ever think that

bitcoin is going to

replace the dollar i i think we're

always going to have some form of a fiat

maybe it'll be a token in the future but

it'll

always be some form of a fiat but

people's desire to invest in bitcoin

could continue to go up on these sorts

of fears

especially if we see inflation trends

continue to trick up

trickle up which we did see a federal

reserve board member

bollard this morning mentioned that he

believes inflation is

definitely coming later this year which

is kind of the opposite of what jerome

powell thinks jerome powell thinks

yeah we'll see spikes of inflation but

that'll subside over time so we've

really got a lot of sort of tenuousness

in like are we going to see inflation

are we not going to see inflation

from kathy wood's perspective doesn't

matter bitcoin

is absolutely here to stay oh in fact an

update just came up

uh from a bollard and uh he actually

says

that uh we do not have to be worried

about 1970 style inflation when we had

like

10 to 15 percent inflation uh and he

does say that he thinks we'll get to a

jobless rate of four and a half percent

by the end of the year

uh and that this rise in treasury yields

what we're seeing is actually a good

sign for market

uh recovery but again that could also

uh pressure rates mortgage rates going

up or it's real estate

and gets people more excited about

cryptocurrencies so i wouldn't be

shocked for us to see bitcoin over 100k

uh you know at some point within even

the next few months i'm not

going heavy on that bet but it just

wouldn't shock me

so anyway uh some i would say all of

this here bullish news

on a bitcoin i keep in mind if you if

you were to go 60 40 bitcoin stocks

bitcoin right now tends to trace with

stocks like when stocks go down

bitcoin tends to go down so be careful

with that because the purpose of the

original 60 40 split was that

if stocks do well bonds might not be

doing well but if bonds do well stocks

might not be doing well so you'd have

that sort of seesaw

if you put everything on bitcoin in

stocks you're kind of on the same rocket

ship

to the moon all right folks thanks so

much for watching we'll see in the next

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