Crypto and Bitcoin Collapsed the Banks | More to Fall

next up we got to talk about how Bitcoin

may have been the contributor to the

bank runs right yes literally crypto may

have killed the banks what an incredible

irony that is because after all that is

maybe not ironic that's kind of been the

point of crypto is get away from

centralized Finance get away from funny

money and Fiat but I don't think anybody

actually thought that crypto would end

up causing Bank runs in America but

that's exactly what's happening and if

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little in as little as five minutes and

Apple or Android pay for so what do we

got well first of all we know that the

justice department is now investigating

some stock sales at Silicon Valley Bank

by Executives but what's more actually

interesting is what happened with

signature bank and how that relates to

silvergate and Silicon Valley Bank get

this so silica or silvergate which was a

bank in New York was frequently

considered quote a place of ambition not

Prestige what's really interesting is

how they went from basically a bank

doing deals for people like Donald Trump

cab owners and quote-unquote slumlords

they were saying to crypto now they've

been always trying to figure out how

could they grow what's the best way for

them to grow in fact one of the big ways

they tried growing at Signature Bank was

doing loans for taxi companies

Unfortunately they made those loans

right before the pandemic they also made

a lot of loans for Donnie T Donald Trump

and the kushners were frequently

questioned about their relations with

Signature Bank Signature Bank ended up

dropping them as clients closing about

5.3 million dollars worth of deposit

accounts uh that the Trump and Kushner

ended up having over at Signature Bank

and this bank has had a lot of drama and

a lot of backlash from both sides even

the Democrat Leticia James who's the New

York public Advocate or then public

Advocates and she's got another job uh

still over there obviously but anyway

she ended up calling uh this Bank the

city's worst landlord or actually they

put the bank on the city's worst

landlord and the reason for that was not

that Signature Bank actually owns

properties but they do so many loans to

office and apartment building landlords

that they basically called this Bank

such a bad bank because they enable bad

landlords to own buildings that don't

provide for basic living conditions that

doesn't sound good so signature Banks

got some pretty interesting history when

it comes to trumps the kushner's taxi

companies right before the pandemic uh

landlords for office and apartment

buildings but this is where things took

a shift

in 2015 the winklevas brothers Gemini

Gemini exchange got one of New York's

first licenses to run a cryptocurrency

exchange brokerage

that means you go to Gemini you're like

oh yeah I will give you a thousand

dollars of cash please give me your

Gemini token so I could go buy Bitcoin

or crypto or whatever right

guess where that cash went

signature

so Signature Bank ended up taking crypto

clients not just Gemini but they ended

up taking on coinbase and circle as well

at one point coinbase has had about 240

million dollars at Signature Bank and

paxos which also provides a stable coin

a USD base style stable coin paxos ended

up having about 250 million dollars in

uh deposits at signature so basically

signature was basically the way uh that

people would deposit cash and then get

crypto the exchanges whether it's paxos

coinbase Circle gemini or sort of what

you see but when you put your money in

the cash went to go sit at signature in

many cases so there's a chance if you've

used one of those platforms there's a

chance your cold Hard Cash was sitting

at Signature Bank and this bank brought

in tens of billions of deposits tens of

billions that's a lot of money the they

were able to bring in tens of billions

of dollars during the crypto boom they

made lots of money during the crypto

boom a whole heck of a lot of money and

they made so much money that

unfortunately when things started

flip-flopping in the crypto Market in

2022 they started seeing exactly the

opposite happen but it wasn't just

signature take a look at quarter on

quarter changes in total deposits at

these Banks look at and then look at

some of these names right here oh sorry

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St Patty's Day link down below quarter

on quarter total changes in deposits q1

you add silvergate also a crypto related

uh on-ramp Bank lost about 6.3 percent

of deposits in q1 signature and svb

Silicon Valley Bank were still gaining

by the second quarter almost all of them

were losing deposits with the exception

of silver date slightly flat there and

by the fourth quarter the deposit

withdrawals here were massive deposit

changes massively negative and a lot of

this many say had to do with the crypto

Market slowing down as the crypto Market

slowed down less people invested into

crypto as less people invested in the

crypto people also had less and crypto

prices were falling people also had less

money to invest into venture capital or

other businesses they're losing money in

the stock market long and short of it

what ended up happening well while uh

Silver Gate ended up having billions of

dollars of deposits especially for

example 1.5 billion dollars of deposits

in the first two months alone of 2022

they plummeted to all of a sudden seeing

massive withdrawals in fact at one point

they were collecting nearly as much as

three times as many deposits from crypto

as they were from regular depositors

that actually ended up leading some

entrepreneurs to argue they didn't want

to do business with a bank that has

basically become a crypto bank because

again the bank at one point was taking

in three dollars of crypto deposits for

every one dollar of actually what made

the bank notable working for

entrepreneurs and uh landlords for

example but all of these industries

obviously got hit we know taxis got hit

we know uh thanks to Uber Lyft we know

crypto got hit we know uh apartment

buildings and landlords and Commercial

landlords have all got hit

mortgage-backed Securities are getting

crushed and now all of a sudden hundreds

of millions of dollars started getting

pulled out of the bank as it seemed like

the bank was potentially running out of

money last week and that led them to

fall into f cic receivership on Sunday

now part of the reason Signature Bank

was seized was because of what they

called a crisis of confidence that's

what regulator said a lot of people in

the industry say no the bank was

actually seized because it was a crypto

bank and whatever they can do to punish

banks that were related to crypto is

what they wanted to do and it's kind of

interesting because

silvergate was a crypto Bank

signature was a crypto bank and even

though Silicon Valley Bank wasn't

technically a crypto Bank it did provide

loans to startups in the crypto space

and guess what all three of them failed

we now have the two biggest bank

failures that have happened since 2008's

WAMU failure in just the last week these

are pretty big banks that failed and

they happened in just the last week and

they all three of these two of them

being some of the larger two but all

three of them happen to be involved in

crypto now to show you the scope of kind

of where these failures are on the time

frame it's worth looking at this uh this

bubble chart over here and really it

shows you here's Washington mutual's

bank failure bubble chart shows you kind

of how big the bubble is right and then

you could kind of see how big the

bubbles are of Silicon Valley Bank and

Signature Bank based on how many assets

they have under management so it's a

pretty big deal but it's very

interesting that crypto almost somewhat

feels like the virus that is killing its

host from within think about that for a

moment crypto goes in and gets money

from Banks or deposits money with banks

crypto Market crypto in the first the

whole point of crypto is to get away

from Banks and Fiat money right and the

more crypto deposits there were the more

at risk of collapse these Banks actually

became

some articles and authors like over on

Bloomberg are now suggesting that quote

the crypto Bros are getting pushed to

the brink of banklessness but it kind of

makes you wonder is it almost crypto

becoming more valuable and more

brilliant by being associated with banks

killing their hosts the banks sending

people into more of a fear tail spin

around Banks and potentially into crypto

it's kind of brilliant now whether it's

orchestrated or not look at what Bitcoin

is doing on Weeble uh by the way if you

want to sign up for Weeble they're doing

a 12 free stock offer right now just go

to metcaven.com free or click the link

down below that's

m-e-tkevin.com free but anyway take a

look at this since the banking crisis

was resolved with an unlimited bailout

crypto has exploded uh over about 25

percent here here from about 1950 to 24

9 or at least Bitcoin over here uh

Bitcoin huge recipient of of this

recovery here uh you've got ethereum

still sitting around nearly 1700 also a

nice bounce here of course a lot of

people bag on crypto and say hey you

know what crypto is just another risk

asset but I do think it's really

interesting that the three banks that

were really associated with crypto all

just happen to be deleted

or receiverships should I say uh while

at the same time reiterating the whole

purpose of Bitcoin and crypto it's kind

of brilliant now of course there were

other things that led to the potential

failure of these Banks remember the

government is saying well signature

failed because they were supposed to

give us a reliable and consistent data

we didn't end up getting that from

Executives on Sunday morning they lost

20 percent of their deposits just Friday

alone it's worth noting that Bank of

America is bragging about how 15 billion

dollars have has gone to Bank of America

how excited they are about how much

money has gone to Bank of America but it

kind of makes you wonder how much of a

trojan horse crypto has become to

actually eating the banking system alive

from within

kind of incredible so anyway that's

that's very interesting about uh yes as

Alvaro here says that's a very

interesting theory about crypto I hate

to say it but it's it's very interesting

to me this is the smartest meet Kevin

take I have heard in like five years

I don't know if that's a compliment

uh and then of course somebody else

replies here love me some gold

all right very well so there you have a

crypto update

okay uh

uh all right what else do we want oh boy

this is fun

all right so uh next how about we talk

about the Russian jet yeah oh God