CARE HAS IMPLODED.
DOESN’T MAKE SENSE TO BUY
BITCOIN NOW?
THE COVER STORY OF THIS WEEK’S BARON, DARREN, THANKS FOR
BARON, DARREN, THANKS FOR
COMING ON THE SHOW.
UGLY TIMES FOR BITCOIN.
ARE WE GOING TO LOOK BACK AND
SAY THIS CRYPTO CURRENCY THING
WAS JUST FAT OR IS IT JUST A
TOUGH TIME? ALL ASSETS GO THROUGH BEAR
ALL ASSETS GO THROUGH BEAR
MARKETS.
>> CRYPTO, HIT BIND TIGHTER
MONETARY POLICIES, RISING
INTEREST RATES.
THE FED TRIES TO FIGHT HIGH
INFLATION AND DEMAND FOR RISKY
ASSETS, CRYPTO IS ONE OF THE.
YOU DON’T GET CASH FLOWS, IT IS
HARD TO VALUE CRYPTOS BY STOCKS
OR BONDS.
THERE’S A LOT OF FEAR GOING ON
IN CRYPTO MARKETS, DOWN 50%.
THAT’S FACING A LOT OF
QUESTIONS WHAT IT IS GOOD FOR
OTHER THAN TRADING.
JACK: THOSE WHO WOULD LIKE TO
MAKE BIG PROFITS WE USED TO SEE
IN BITCOIN ARE WONDERING WHEN
THE FED STOPS HIKING AND THINK
RATES NOT GOING TO GO UP
ANYMORE IS THAT BULLISH FOR
BITCOIN?
WHEN SHOULD THEY GET BACK IN?
>> IT IS EXTREMELY DIFFICULT, I
AM TOLD IT IS VOLATILE AND NO
INTRINSIC VALUE.
SOMEWHAT ARGUE IT IS LIKE
DIGITAL GOLD AND HEDGE AGAINST
INFLATION.
WE MAY NOW BE IN A CRYPTO
WINTER.
CRYPTO HAS BECOME HIGHLY
CORRELATED TECH.
IF THAT CONTINUES TO BE THE
CASE, DON’T ADD DIVERSIFICATION
BENEFITS FOR PORTFOLIO.
>> I WANT TO TAKE A LOOK AT
ANOTHER SPOT IN THE CRYPTO
SPACE WHICH WAS THE BLOWUP OF
THE STABLE COIN TARIFF.
DOES THAT MEAN STABLE COINS ARE
NOT REALLY STABLE?
>> IT WAS AN UNUSUAL ANIMAL,
AND ALGORITHMIC STABLE COIN
TRYING TO HOLD A PEGA BY
LINKING ANOTHER STABLE COIN
CALLED LUNA.
THE WHOLE THING WIPED OUT
AROUND $40 BILLION AND RAISED A
LOT OF QUESTIONS WHETHER
ALGORITHMIC STABLE COINS CAN BE
TRUSTED TO HOLD THEIR VALUE.
NOT NECESSARILY THE CASE WITH
TRADITIONAL STABLE COIN WHICH
ARE USB SEE.
THEY HELD THEIR PEGS BUT
THERE’S A LOT OF QUESTIONS
HOUSE STABLE STABLE COINS WILL
REALLY BE AND WHETHER THEY MAKE
A LEAP FROM CRYPTO MARKETS
WHERE THEY ARE USED FOR TRADING
AND LIQUIDITY TO STANDARD
FINANCIAL PAYMENTS FOR
REMITTANCE.
THERE IS EVIDENCE THAT IS
HAPPENING BUT A TRANSACTION FEE
COULD BE QUITE HIGH.
JACK: I COULD BUY ONE OF THESE
STABLE COINS AND EVERYTHING
GOES RIGHT I GET MY MONEY BACK,
IT DOESN’T JUST GO PROOF.
WHAT’S THE POINT?
>> I DON’T KNOW IF THAT IS THE
CASE.
IT IS TRUE THAT THINGS WENT
PROOF IN TERROR.
I DON’T THINK THAT IS GOING TO
HAPPEN WITH USDC.
TETHER IS A BIT OPAQUE ABOUT
ITS HOLDINGS BUT THERE
DEFINITELY IS RISK IN STABLE
COIN.
THAT SAID THEY ARE TAKING OFF
EMERGING MARKETS, SO THE CASES
ARE INCREASING BUT THERE ARE A
LOT OF QUESTIONS ABOUT IT.
JACK: I’M A CRYPTO SKEPTIC SO
I’M DOUBLING DOWN ON MY OUT
LOCATION OF 0 EVER.
IF SOMEONE IS ASKING ME, THEY
WANT TO BUY SOMETHING BUT NOT
TAKE TOO MUCH RISK, FORGET THE
BITCOIN, BY SOMETHING TRASHY,
HE AT LEAST YOU DON’T PUT UP
TOO MUCH MONEY.
WHAT WOULD YOU TELL THAT
PERSON?
>> I WOULD SAY BE CAREFUL.
DON’T TRADE ON THE MAJOR
EXCHANGES.
YOU CAN STILL LOSE YOUR SHIRT
IN THEM.
YOU DON’T WANT TO PUT A LOT OF
MONEY INTO ANY OF THESE THINGS.
BITCOIN IS THE LARGEST AND MOST
LIQUID CRYPTO.
A LOT OF ADVISORS WOULD SAY YOU
CAN’T GO WRONG PUTTING 2% INTO
YOUR PORTFOLIO WITH BITCOIN BUT
DON’T WANT TO PUT MUCH MORE
THAN THAT IN THERE.
THERE’S ANOTHER WAY TO GAIN
EXPOSURE TO CRYPTO WHICH IS
THROUGH STOCKS.
A LOT OF STOCK OUT THERE HAVE
BLOCK CHAIN EXPOSURE, COMPANIES
LIKE COIN BASE, ROBIN HOOD THAT
ARE EXCHANGES, PAYMENT APPS
LIKE PAYPAL AND COMPANIES LIKE
NVIDIA WHICH MAKES CHIPS AND A
BANK THAT IS TRYING TO BECOME
ON A CRYPTO SERVICES BANK, MORE
TRADITIONAL BANKING.
TO PLAY THE GROWTH IN BLOCK
CHAIN TECHNOLOGY AND THE TOKENS