Banks Need Bitcoin Now (More than Ever!) - Last Week Crypto
We've tested and rejected new all time high price levels, but we still keep coming back for more. This week I was in Seattle and forgot my shirt. So today we're rocking purple. Hello, I'm Crypto Casey and welcome to another episode of last week crypto. Every Sunday, we review the performance of the largest cryptocurrencies top gainers as well as the latest global news stories affecting the crypto markets this past week. This week, we will discuss what the US government is up to how there is a litany of downright bad financial advice floating around out there. How retail and institutional adoption, like in most previous episodes at this point continues to grow. And more bullish news for the crypto space at large that never gets old week to week. To
check out the links of articles we discuss. Go to cryptocasey.com/last-week-crypto. This week's episode is brought to you by crypto.com. An exchange with over 55 different cryptocurrencies on crypto.coms mobile app. You can buy crypto with bank transfers, credit debit cards, or crypto
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market to the public. The more adoption of the tech we will experience awesome. Also every Wednesday I conduct a weekly AMA or ask me anything at instagram.com/CryptoCasey so use the link to my one and only official Instagram account listed in the description area to follow me and ask me anything you want every Wednesday. sweet! It's time for last week crypto.
Looking at the performance of the top cryptocurrencies by market cap Bitcoin up 1.1% ETH down .01% Cardano up 16.4% and Binance coin down 8.4%. Looking at the top gainers this week ECOMI up 310.5% Harmony up 176.2% Holo up 168.2% and Pundi X of 131.8%. a wild ride in the crypto markets this past week for sure. Let's jump into the wild ride
that government has imposed upon us. The Fed will not extend a pandemic crisis rule that had allowed banks to relax capital levels. The Fed declined to extend a pandemic era exemption that lowered bank capital requirements. relaxing the so called supplementary leverage ratio allowed banks to exclude treasuries and deposits from the reserve requirements. Wall Street had been lobbying for an extension for a move widely seen as calming volatile markets in the early days of the pandemic. Let's unwind and explore this more basically after the last great recession courtesy of banks taking on a ton of unnecessary risk to make large quick profits at the expense of all of our livelihoods. Because there was no incentive
not to seeing as how the government will always undoubtedly bailed them out. The supplementary leverage ratio was instituted to ensure banks would pretty much not be able to do that again by forcing them to keep a certain amount of cash reserves to offset any risky assets they invest in. However, when the pandemic hit, the government decided to lift some of the restrictions imposed by this regulation by allowing banks to hold treasury bonds in deposits without requiring them to have any capital to back them up. The feds did this on April 1 of 2020 in
an effort to calm the hectic bond market that unraveled during the onset of the pandemic, and keep banks lending to struggling US citizens with a set deadline of the lift on March 31 2021. So the government set a deadline for this regulatory lacks basically a year in advance yet Wall Street and big bankers want to play dumb. It is surprising you can see it to some degree from the market's reaction. I think some people figured if the Fed was going to kill it, they would give it more than 12 days said Michael Schumacher had a great strategy at Wells Fargo 12 days, Michael, they gave you 12 months. So why is Wall Street pitching a fit over this? Wall Street had been lobbying heavily for an extension of the exemption as banks have been flooded with deposits that require them to hold offsetting capital against customer money. Translation for
the past year, big banks have had hardly any reins on their ability to invest capital where they see fit. And since they are big banks, when they are allowed to invest capital as they see fit, they take on big risk to make big money fast because there's no downside. They'll be bailed out by the government and by the government. I mean us the taxpayers. So what's going to happen next? Well,
the banks don't want to all of a sudden hold cash they weren't required to a year ago. As a result, they will probably sell their treasuries so they don't have to maintain reserve requirements, which will increase interest rates. But can you blame them none of the smart workers Money wants to hold cash especially since all the reckless money printing I mean stimulus that's been going on, and the market knows it too. As a result, shares of the largest us banks fell on Friday. By mid morning JPMorgan Chase and co shares were down 3.4% Bank of America corpse were down 2.6% and Citigroup Inc was down 1.4% Wall Street bank stocks will get punished because now they will have to put more money aside Edward Moya, senior market analyst at foreign exchange brokerage Atlanta sent in an email and let's take a look at how this money has been performing over the past several decades.
You need $6.5 million dollars in the bank today to feel like a millionaire in 1971. Building generational wealth through Fiat Ain't it hashtag Bitcoin. Why? Because the value of the dollar has been printed and inflated away since we got off the gold standard. To make matters worse, or better, depending on what side of the coin you're on. A fourth stimulus check might be on the way the government is debating on another round of stimulus that could include a $2,000 one time payment, or even a $2,000 recurring monthly payment to American families.
Either way, we all know what this means the printer will continue to endlessly Koper at this point, leading to more inflation on top of inflation with the eventuality of hyperinflation like we've been discussing for months on end. Pretty soon, there will be nowhere to hide from the inflation fears as commodities join route. Even commodity futures aren't safe in the inflation fears that are gripping global markets. Crude oil plunged 7% coffee at its biggest loss in two months, while corn and copper also tumbled. Fresh concerns that the Federal Reserve will let
inflation accelerate sparked a sell off and most risk assets on Thursday, US equities dropped from records and Treasury yields jumped. Those moves spilled over into commodities with physical demand heavily tied into global growth expectations. Still, it was a bit of a paradox for commodities, the market can sometimes benefit from an inflationary environment since investors think of the raw materials as a good place to find yield. But the inflation equation needs to be just right too much, especially if it's coupled with concerns over economic growth and a higher dollar. And the inflation boost quickly turns into a drag amid deflated demand expectations. So with commodities, investors buy futures, which is basically buying a commodity like crude oil at a cheaper price now to sell at a higher price in the future to make a profit. However, with inflation concerns looming,
the cost of goods like commodities will increase as the value of the dollar decreases, and less people will be able to afford to buy the commodities, therefore decreasing the future demand of those commodities. So investors are thinking why buy something now that we probably won't be able to sell later, because people won't be able to afford it with their dollars becoming more and more worthless as time goes on. Crazy. So what are all these institutional investors and banks going to do since the Fed has essentially told them the party's over March 31? I don't know about you, but more and more going forward. It's looking like the banks need Bitcoin
more than we need the banks. And so do we, as the government continues to permeate and push its centralized agenda further into our lives and environment? How so? Biden may propose $1 trillion in new taxes, says a former aide and here's how Congress will react, the White House will propose $1 trillion worth of new taxes according to Sarah Bianchi, head of US public policy and political strategy at Evercore ISI and the former director of economic and domestic policy for then Vice President Joe Biden, officials, including Treasury Secretary Janet Yellen have started suggesting what will be in the White House plan beyond he says hiking the corporate tax rate to 28% from 21%, establishing a global minimum tax in raising what's called the Global intangible low tax income rate to 21%. We'll be in this plan. The plan will probably include nearly doubling capital gains taxes on those with income over $1 million, and likely will include taxing unrealized gains at death and being carried interest in raising the top individual income tax rate. I mean, sure, we need to start paying off this debt somehow right? And our only hope is the taxpayers after all, because when you really think about it, it's totally fine how the government databases our currency in order to print new money out of thin air to keep their corporate puppet masters rich, fat and happy. But what else our current taxes and future taxes paying for? Is there something
else going on that most of us aren't privy to check out this interview with Max Keiser the taxpayer is going to pay all the student debts right that because all that money went to the the universities and the administrators right they've already collected the cash and bought houses or, or stocks or whatever. So they've had it that cash is being paid off, the debts are being paid off by the taxpayer. Here the taxpayer is going to pay off all the rents mortgages, so pretty much everything in the economy is state owned, all the bonds are state owned, all the debts are state owned the houses mortgages are state owned student debts are state owned. So that's the situation we find ourselves in. Well, what you're describing there are the minimum monthly payments. They Forgiveness of rent, state ownership of everything. I actually read a book in college that explained the whole thing. And they kind of like laid out exactly what you just said.
It's it's not read often now, it's kind of famous, though it's called the Communist Manifesto. And it explains this exact political theory. Well, I mean, our founding fathers as well, again, you're not allowed to teach the founding fathers in America anymore. But nevertheless,
they did predict that once the once a taxpayer wants to citizens realized that they could control the printing press, then we were doomed. So I'm just saying like, once you give people free rent, and once you give people free, you know, monthly weekly payments into their bank account where they don't have to do anything. Like, who doesn't want that, right? I'd love to not pay a mortgage or rent I would love to pay be just people send me money for no reason. Like, I would love that.
But you know, I just think once it said, Santa, it's going to be hard to unwind. Just like QE it's hard to unwind, the sort of policies will be hard to unwind a tough pill to swallow for some. But how did we get here, the same way we got into every financial crisis, the banks, and at the end of the day, the most widely used financial tool for crime is the dollar. The second most widely
used tool for financial crime is the US banking system. And these aren't just regular crimes. These are crimes against humanity and the planet Earth at large. A few elites get rich at the expense of all of us and our entire world. And the government lets them get away with it time and time again. Awesome. And just when we think the government had a ton of extra time to do stuff with all these tax extensions, and forcing people to work from home during the pandemic, we continue to see stuff like this IRS pushes filing deadlines and may 17th. As agency grapples with backlog of returns, change comes as agency since third round of stimulus payments and prepares to implement other parts of the American rescue plan. Whoa, whoa, whoa, whoa, whoa, wait kit out of town,
you have a backlog of returns because of the new implementation of the American rescue plan that came out last week. What were you doing all of 2020? There was one stimulus check issued last year, and not a whole lot going on. Otherwise, what was the IRS doing? Why do they have a backlog? I mean, I'm not really complaining because now I have more time to get my tax situation together. Put really, there are no words. But maybe you have a word or two to complete this sentence named one thing more useless than the Fed. Oh, wait. Okay, you continue to think on that. And if you have something, leave it in the comments below.
So with all of this government incompetence in the legalized banking crimes happening on our watch, fed easy monetary policy means it's time for active management Mohamed el erian. It's going to be an environment for very active management, building portfolios from a bottom up perspective. lRn tells Yahoo Finance live. The president of Queens College Cambridge University and chief economic adviser to Alliance is known for his writing and opining on macro economic issues. That thinking of course remains relevant even as investors have to closely scrutinize their choices. We've had a very unusual situation where the economy was struggling, and you made money on both your risk assets and on your risk free assets. That's what we did last year,
he said, but the situation has now reversed even as many economic measures are improving. In March, for example, an index of business activity in the Philadelphia area rose to its highest level since 1973. volatility and risk assets has increased lRn points to three issues that investors must now consider. Well, the Fed lose control of the bond market. Will this completely change the psychology of the market? Will this spill over in a negative way to the economy? In my opinion? Yes, yes. And
definitely yes. But even so you can't really take my word for it or anyone else's. I agree that this is a very unusual market. And so we all need to do our own due diligence in research in order to make the best wealth management decisions for our unique situations. But be aware because there are a lot of so called financial advisors out there that don't know what the hell they're talking about. Take this one. For example, Suze Orman do not spend in Don't you dare invest your stimulus checks. Here's what to do with the cash. This should be interesting. Take it away, Suze? Hi, everybody, Susie Orman here better known as the world's personal finance expert. Many people like
to call me the money lady. I like to think of myself as the person you need to go to to find the correct answers to your questions. Do not rush to take that money and pay off your credit cards, a down this do that. You know, for years, I always said to eight months and four years and do how many other people went you don't need eight months. All you need is three months 80 to six
months. Haven't you all heard that? So it's 12 months minimum is what I think you need. Continue to pay the minimum on your credit cards, or whatever it is and just play it safe. So you pick key to your freedom is having that security that amount Emergency Fund. Keep it right there Do not spend it And don't you dare use it to invest in the stock market. So the world's personal finance expert, the money lady, the person you need to go to to find correct answers to your questions says to pay the minimum balances on your credit cards and save the rest of your stimulus check in a bank in the form of an emergency fund for at least 12 months. Oh, and don't you dare put your money in the stock market? Okay, I can get behind that one
as the whole rodeo has been artificially propped up for far too long. But don't you dare keep your cash in a bank where it will hyper inflate into worthlessness over the next 12 months. do your own research and figure out what's best for you. But as for me, I'm investing in Bitcoin, ether and other cryptocurrencies and hodling it myself. And if you've determined that's the right course of action for you, while hodling your cryptocurrency for the long term, make sure you are transferring it off of the exchanges onto cold storage hardware wallets, you can scroll down to the description area below to access the correct and official sites of my recommended hardware wallets. Bc vault is my personal favorite. Another option is the ledger nano backup pack, so scroll down to check them out. Or if you would rather make income from your idle digital assets
you're planning to hold for the long term, you can safely earn interest with services provided by block by with a block by interest account your cryptocurrency can earn up to 8.6% APR. Interest accrues daily and is paid monthly, there are no hidden fees and no minimum balances. So if you're interested in learning more about block phi, you can get up to a $250 Bitcoin bonus when you use the link in the description area to sign up all while supporting the channel. Protecting your ability to generate income will be another way more important factor than keeping cash in a bank over the next 12 months. So if you'd like to learn more about the advanced technical concepts of blockchain technology and become a developer in the space, check out Ivan on tech Academy.
If you use the link below, you can access the Academy at a discounted price. So scroll down, check it out. Cool. And just to further illustrate the point about not trusting financial advisors, Reddit founder Alexis ohanian on his biggest money mistake hiring a financial advisor. This is the advice I would give to anyone which is to take the time and there are so many amazing resources online now to do the work to understand this stuff yourself before entrusting it to someone else. ohanian says, This is so true. A lot of these financial advisors one
don't make more money than you. So why would you even trust them in the first place to have no idea what they're talking about. They just sell prepackaged garbage for a commission. And three, they think they know everything already and don't keep up with new developments in the financial and technology space, let alone the global economy at large. As someone who studied
finance, I can honestly tell you most people in finance are sharks that just prey upon people's lack of financial knowledge for their benefit. And the other people in finance think they're helping people but they actually have no clue what they're doing or talking about, in my opinion. Here's the current situation. Not financial advice, investors compounding 5% pa to retire by the time they're 70 versus me putting my life savings into eat to retire by next year. Quite a stark contrast. We can talk about that more in another
video. But for now let's quickly hit a rapid fire of bullish news for crypto from the past week. we've crossed the line why Goldman Sachs says crypto is here to stay. Matthew McDermott, the bank's most senior crypto exec says there's no going back on digital assets as institutional investor clients pile in next. jp morgan is eyeing Bitcoin and crypto Clearing House options amid
huge price rally. Also, Visa anticipates cryptocurrency becoming extremely mainstream, working to allow Bitcoin use at 70 million stores then Coinbase valuation soars to $68 billion dollars ahead of highly anticipated crypto listing. Finally, Bitcoin is now too important to ignore. Deutsche Bank says and they ain't wrong. Bitcoin is third largest world currency by market cap. At its current market cap Bitcoin is number three among all global currencies. And just in
case you were wondering, Bitcoin adoption is about one to 2% of the world you haven't missed the boat. So if you haven't hopped on the boat, yet, you better stuff to it, as a supercycle may propel Bitcoin to over $1 million cracklins dan held says cracking his head of growth Dan held thinks Bitcoin could reach $1 million within the current market cycle. At the end of the day, we either all go broke or become the new financial elite. no in between. Awesome. Well, that was last week crypto with me crypto Casey. If you enjoyed the episode, please make sure to like this video and subscribe to my channel for more crypto content. To check out the links to all the articles we discussed. Go to crypto kc.com forward slash last week crypto. So what do you think of the feds recent
monetary policy decisions? What experiences have you had with financial advisors? Do you think we're headed towards the supercycle? Let me know in the comments below. Be safe out there.
2021-03-24 15:30
