what's up welcome back to our live tuesday night uh live stream here episode number 31
this is bitcoin center brought to you by bite federal my name is cedric young woman i'm paul
tarantino man uh it's been another week huh yeah dude all right uh yeah how was your week i was
good busy i mean it's just non-stop stuff going on yeah i want to read this uh tweet thread here
This is what I thought was interesting.
Is Nicole Shanahan the most successful sexual entrepreneur in the world?
She was engaged to be married to a guy in finance.
This was answered by Simon Dixon, by the way.
That's why I'm reading this.
Shanahan then met and began an affair with Google co-founder Sergey Brin,
one of the richest men in the world,
a month before her wedding at her own bachelorette party.
Her husband ends the marriage after finding out she then marries Brin.
This causes all kinds of problems.
at Google and causes Bryn to neglect his work and personal responsibilities.
Larry Page, his co-founder, disapproves of the relationship, and this causes much turmoil
at the company.
Did you know this?
No.
Her marriage with Bryn falls apart when she sleeps with Elon Musk.
Shut the fuck up.
One of only a handful of men in the world richer than her husband.
Musk publicly begs Bryn for forgiveness at a party.
Bryn is so hurt he sells $336 million in Tesla stock.
And his friends stop driving Teslas in solidarity.
Bryn gives Shanahan a billion dollars in the divorce, I guess, according to this guy, to go away.
Shanahan uses her money to run for vice president and spread anti-vax conspiracy theories.
This is all verbatim.
The RFK movement helps Trump reclaim the White House.
just because of who she was able to sleep with this woman caused major turmoil at google destroyed
the friendship of two of the richest men in the world implausibly determined the outcome of a
presidential election just an amazing story and goes to show how the the maga movement is like a
dream team of apex grifters uh it's such you have a reality tv star taking over a major political
party the king of pseudoscience the biggest influence is able to give the brain rotted
masses what they want and the woman who became a billionaire influential political operative just
by sleeping away to the top.
That's a little rough.
But this is Simon Dixon responds.
This is what the dollar is backed by.
It's a proof of weapons network.
Sex is now a weapon that impacts share prices
more than earnings per share.
This is what the late stage of an empire's debt cycle
looks like.
Anything to pump up stocks at the expense of the dollar.
Wow.
Yeah, I thought that was interesting nuance.
That's wild.
She's decentralizing the tech.
Well, right now she's out sort of speaking for,
uh i guess like tech wives or you know yeah yeah a lot of philanthropy she seems super smart
um and she was really influential and i think rfk's run yeah so i don't know i don't know i
had no idea i mean i didn't know the backstory generally agreed with everything she has said
but i had no idea all this was behind all that no i had no idea either yeah so it's interesting
Wow.
Yeah.
Well, it's not the worst thing in the world if two tech billionaires aren't buddies.
No, I mean, that's kind of common.
I mean, how many rock stars in a band stay friends over 30, 40 years?
Rock stars in a band, baby.
All right.
Well, let's get into the show.
This is Bitcoin Center brought to you by Bifederal.
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ATMs, wallets.
Point of sale.
Use Bitcoin as money.
Do it.
Let's be real, right?
Praising Telegram for launching a Bitcoin wallet.
I've always felt like, with Haley, Bitcoin, this digital currency that's out there that
people say, oh, it might be the next big thing.
What do you think?
I think it's rat poison.
Bitcoins.
You never heard them a few weeks ago.
Now everybody's talking about them.
But is it a currency?
I don't know.
Or is it more like a stock?
Or is it a tulip bowl?
We're going to debate that.
Stupid.
To me, it smells like Ponzi scheme and the greater pool theory writing.
You do like five minutes of freaking research.
Well, thanks for coming to my set talk.
Yes.
Don't buy shit quits.
Oh, man, I was getting that wrong.
All right.
Bitcoin's recent rally.
Do you agree?
Is crypto finally dead?
Go to the next one.
Matter of fact, they're kind of in the ethernet.
What are they?
Some rumors that it's a Japanese guy,
I better say no, that he's a fake name.
It was a pseudonym.
I mean, you're literally putting real money
onto a system that we don't even know who created it.
It will come to a bad ending.
Is this the most exciting bull run ever?
Not for me.
No, it's not.
Welcome to Bitcoin Center,
the fast-paced show where the debate is the story.
Dude, I just realized you're going to have to change the intro from the flying RV to the chicken coop landing in the backyard.
All right.
Francis, get on it.
We're going to take the intro there.
All right.
Let's get into it.
The top story of the week.
The world's largest corporate Bitcoin holder is now worth less than its Bitcoin.
Strategy holds 650,000 Bitcoin worth 55.9 billion today.
Its market cap is only 45 billion and change.
does this officially signal the end of the bitcoin treasury company playbook no and why not or what
are you thinking like uh as as mnav goes below one on yeah yeah the biggest pioneer in the space
I think you you're seeing momentum pile on you're seeing um people trying to really understand these
companies uh you I mean there's definitely going to be some train wrecks there's definitely going
consolidation. There's definitely going to be changes to business models, but it's going to
sort itself out. And at the end of the day, Bitcoin will go to all-time highs again, and the FOMO
will start again, and MNAVs will expand. Will they go to five, seven times? Probably not, but
I don't think it's going to stay here. You think we get above two?
I don't think it's going to stay here. I think there's people that are probably looking at this
right now saying, wait a minute, I can buy this at a discount.
What about the potential delisting from indexes?
Yeah, that's interesting.
And do you think this is a concerted effort by the likes of JP?
Yes, I do.
I do think it's on purpose.
I think they're going to be rolling out similar credit products.
And they would like nothing more than to take some of that market away from
sailor because he's been so successful with it so yeah i mean that's just you know i it's a war
it's you know bitcoin is rattling the cages all right well yesterday uh so this is peter schiff
chiming in today is the beginning of the end of mstr sailor was forced to sell stock not to buy
bitcoin but to buy u.s dollars merely to fund mstr's interest and dividend obligations the stock
is broken the business model is a fraud and sailor is the biggest comment on wall street
those are those are those are rough words yeah um i don't know but what about the deeper question
i think i think um right there's been pressure for from him to sell bitcoin if he needs to and
now he's saying he would do that there's been pressure for him to uh have a cash reserve so
that he could pay these dividends and now he's getting that so like he's figuring this thing out
but no one's going to be happy no one's going to be happy but at the end of the day
smart investors buy deep what do you think of them raising cash and sitting on cap i mean we
went from you know 500 million dollar i think okay my only my only criticism of that is why
where we were why weren't you raising cash when bitcoin was higher and buying dips right so
So maybe that model will change over time, right?
Maybe they thought that they could corner so much of the market,
they could drive Bitcoin up forever.
But obviously they can't.
There's been a significant wall of selling over this last year,
and it's hurt their performance.
But I don't think it changes the long-term vision for what he's building.
I think his vision is going to evolve.
I think you put him under the pressure of an attack and I think you get pretty
creative.
Yeah.
He seems to be a survivor,
bobbing and weaving.
I think they're going to bounce back strong strategy.
This is a bit pure chart.
Okay.
I'm did strategies,
new fiat reserve for dividend interest payments,
checks a box for institutional credit due diligence and rating agencies,
near-term coverage of fixed obligations.
Long-term,
this will likely attract more capital for the preferred preferreds,
more business bitcoin accumulation and increasing amplification for the common
at a lower cost of capital this would outweigh the opportunity cost of not holding marginally
more bitcoin right so it looks like the strategy is evolving i think we're all learning here yep
um the last one i want to bring up is uh dan hillary chimed in here and i thought this was
interesting let me bring this one up so holding mstr is a call option on them lending out their
bitcoin and creating exponential bitcoin yield into the future the reason mnav is not able to
be sustainably high above 2x is because bitcoin yield based on current tactics is naturally
diminishing if instead strategies bitcoin stack yielded four percent annually via some form of
lending this would be an exponential bitcoin yield in a world of pe ratios there could be a high
multiple in this exponential yield and could be a significant catalyst for sustained higher mnavs
How do you get the MNAM higher?
People think we are close.
This is Fang Li talking.
How do you get the MNAM higher?
People think we are a close-ended fund, but we're an operating company.
We should trade at some premium that represents our ability to grow our treasury reserves over time.
Over the course of the next year, big real banks are going to offer services.
We would consider lending with large banks.
Have had a lot of productive conversations with large U.S. banks, and they're excited to partner with them.
And that was in response to Fang Li, CEO of Strategy, going on Bloomberg TV today.
and just referring to the 1.4 billion in US dollar reserves.
So, you know, it's an interesting about that.
You know, that would coincide with like,
of course, JP Morgan would want to attack strategy
if they're going to get into that business.
Yeah, definitely.
And a lot of other, I think, like-minded allies of theirs.
So let's jump into the next one.
Yeah, let's do it.
All right.
Topic number two, miners' pivot to AI infrastructure.
Major miners are now partnering with AI firms.
Microsoft's $9.7 billion deal with Iris Energy, Amazon's $5.5 billion deal with Cypher to repurpose high-power mining facilities for AI GPUs.
Could this pose a risk to Bitcoin security?
No, I don't think this poses a risk.
I think this enhances Bitcoin's position in the infrastructure of the country and sort of power.
I want to read more from this article.
The future of power-integrated AI infrastructure.
The convergence of Bitcoin mining and AI infrastructure is reshaping the global energy and tech landscape.
By 2026, Bitcoin miners could control over 20 gigawatts of AI-ready power capacity, with companies like Iran and CleanSpark leading the charge.
This shift is not merely about repurposing hardware.
It's about redefining how digital infrastructure interacts with energy systems.
So, and I think this is also in response to, you know,
sort of hash rate going out of control at all time highs,
Bitcoin's price plummeting.
The commitments from these AI companies for this power usage,
and that all essentially these companies are doing selling power is astronomical I a little suspect on whether going to deliver the actual revenue from all these contracts but I think this makes perfect sense and I think this integrates AI and Bitcoin uh a lot or as it should and I
hopeful that Bitcoin will be the thing that kind of bends AI towards truth I mean I think it's good
for energy production yeah at large which is going to be good for Bitcoin mining it's going
good for the United States in general.
I think it's going to lead towards nuclear.
Yeah, I do.
I agree.
All right, let's move on to the next one here.
All right, let's go talk about Elon some more.
Some fundamental currencies, if you will, that are physics-based.
So energy is the true currency.
This is why I said Bitcoin is based on energy.
You can't legislate energy.
You can't just pass a law and suddenly have a lot of energy.
It's very difficult to generate energy, especially to harness energy in a useful way to do useful work.
So I think that probably we won't have money and probably we'll just have energy, power generation as the de facto currency.
that was a little confounding when he says we're probably not going to have money i've actually
heard this kind of theory before from others that eventually all money would go away and it would
just be energy but it's hard what does that mean like how do you trade would you trade bitcoin
if you're going to trade an energy token then you're going to be trading bitcoin right so
So there's still tokens.
They're just I don't know what he says.
There's not going to be money at first.
I'm thinking that he's conflating that with fiat and saying currencies are going to go
away.
Maybe.
And then he's saying something like Bitcoin's an energy backed token when that's just money.
So it's still I'm still not blown away by anything he says.
When he changes his mind, he's just going to apologize.
Is that a new clip?
I'm not positive that's a new clip.
No, it's old.
That's old.
Okay.
That's why it's not.
It's just going around.
No, it's pretty new, guys.
That's pretty new.
Sure.
nose flash like anytime he's ever ever mentioned either things like doge or bitcoin right and i
don't think it's making as big a noise as it used to um but i don't know uh it's interesting he still
seems like a word salad to me well he's he's a complicated guy right i mean he goes all over the
place he's like like he'll change his tune all the time like next week he could be talking about
fucking ripple far we know yeah right but um i mean i think a lot of the times when he was talking
when he was talking about doge that was on the back of all the repercussions he got from moving
to bitcoin during the the green energy attack on bitcoin or you know that it was going to burn the
world and it's it's like he he has a lot of masters to please in his world so you're excusing
his flip-flopping i don't know what i'm saying i'm not excusing it i'm just saying like i think
don't know he plays those games he speaks to different audiences for different things yeah
exactly sure all right let's move on to the next one here all right revolutes lightning integration
revolute announced lightning network support via light spark for its millions of users can
this fintech giants move finally ignite consumer bitcoin payments no i don't think this is a big
deal at all i don't think it's gonna like ignite lightning or consumer payments i think this could
be some sort of uh big development and this is not guaranteed to actually happen uh but i think this
is a real partnership from what i looked into yeah yeah uh these are big companies in terms of
revolute they have about 55 million users across the world i think this is good um i think that's
great i mean this is like any time a big fintech platform sure integrates lightning or in this
case like spark yeah which spark is spark is cool and it actually moves it's actually moving legit
Bitcoin. It's not
plugging in. I think it's battle-tested over a Coinbase,
I believe. I don't know about that.
I think Coinbase is implemented.
From what I read in this article. But I don't think this
ignites consumer
payments. It's not a... No, I don't think so.
It doesn't flip the switch.
And I think the real problem
there is that they're dealing with
European regulations. They're dealing with Mika
or Mika, however they pronounce it.
Yeah, which has shaped this company a lot.
This company's only been around about 10 years, and they're already
a $75 billion privately held
company in europe yeah yeah uh but they are shaped a lot by the regulatory uh framework yeah yeah and
that's in flux and in development and trying to you know so this isn't going to roll out quickly
but the fact that they're committing to rolling this out and that they are going to make this
happen that's like the cash app of europe right i mean yeah it's like the paypal of europe yeah
they're competing with these major companies so that's that's great they've announced this deal
in may they touched upon it recently in november we we don't know when it's going to come out it
could be a test case or trial run here in December,
or it could be sometime in Q1.
But it would be great to see.
I don't think it's a game changer.
It is a end run to the end zone before the EU kills.
Well, I also don't think this is not all about Bitcoin.
There's a lot.
No, I understand.
It's about crypto and stable coins.
Yeah, yeah, yeah.
All right, let's move on to the next one here.
I think we have a clip from Farida Nambarima.
where is uh okay the african bitcoin conference kicks off the fourth edition in uh africa as
africa's bitcoin community gathers in africa i can't see december 3rd to 5th under the leadership
of togo activist farida nabarima many attendees are calling it one of the highest signal events
on the global bitcoin calendar how might this summit shape the narrative around financial
sovereignty and decentralized infrastructure across the continent well i mean if this oh
we're gonna play a clip no okay if this summit just reflects what's happening in africa then it
it says a lot about sovereignty and bitcoin adoption i just had a conversation last week
it'll be on our by federal podcast here uh coming coming shortly with stafford mossy from africa
Bitcoin Corporation, which is the first Bitcoin treasury company that's really developing in Africa.
And when you hear the stories he tells about the adoption, the amount of real life commerce that's
taking place with sats, it's so exciting. Africa has just said, you know what? Bitcoin volatility
is nothing compared to 3% daily inflation.
Like 20% drop in bicker, we don't care.
We're going to use Sats.
And they come from a culture where,
I guess a very large percentage of their economy,
like larger than the,
I guess the cash economy is like much, much bigger
than the so-called banked or legitimate economy.
So they come from a culture of banking themselves
where you had somebody in your community that was the human ATM, that was the human bank account,
that was your lender. And so they very much have that trust and peer-to-peer system built.
And now they have a digital format that goes straight to your phone. And they're adopting it
at a massive pace. I mean, it's so exciting. I think what's happening in Africa.
What do you think is going to have a bigger impact on Africa than sort of the storing of value and whatever sats they're able to acquire and keep?
Or is it going to be more using Bitcoin as payment rails and not so much the fees that are saved, but connecting Africans with the rest of the world as entrepreneurs?
It's all the above.
But it's starting in this part of the world, right?
It's starting as medium of exchange.
But that medium exchange, because it's not devaluing, because it's not inflating away to dust, now they have savings.
Now they're able to fund future growth and future projections and grow their businesses, pursue passions, start things that they never fathomed that they could start.
So starting there with MOE and moving to store value, we're obviously in the West where we have a banking system that works.
We have payments and credit cards and everything that works is starting a store of value and moving to MOE.
But it's, I don't know, man.
What's happening in Africa when you start hearing these stories is really cool.
Awesome.
All right.
I'm stoked.
Hit like and subscribe.
This is Bitcoin Center brought to you by Byte Federal.
Go bank yourself.
Let's head over to the lightning round.
All right.
so this is a cool little battle going on here stock exchanges versus crypto tokenization
global stock exchanges nyse nasdaq etc have warned regulators not to let crypto platforms
bypass regulatory principles by tokenizing stocks is this pushback a savvy defense of investor
protection or entrenched finance resisting legitimate blockchain innovation inequities?
I think it's actually a legitimate pushback. I mean, if these regulations are needed,
I think, you know, I don't see what's needed. Every tokenized stock has already registered with
the SEC, gone through all the proper filings to register their stock on a stock exchange.
So they're already legitimate reporting corporations.
So everything just...
So now it's just the SEC.
Because if it's just lift and shift, I'm with you then.
Then this is just bullshit.
Well, it's lift and shift.
And the global stock exchanges are pissed off.
They're pissed off because there's other entities.
Other custodians and there's other players now.
There's no custodian because it's blockchain.
That's what I'm saying.
So how...
Right?
This is awesome.
You think this is awesome?
I think this is great.
I think it's inevitable.
I don't see how anyone's going to be, how consumers are going to be safe in this environment.
You've got the SEC, and then you've got broker-dealers.
You've got the...
And this is all trust me, bro, though.
Like, hey, we have the stocks that we have on a token.
You cannot register security without going through the SEC.
I was on the assumption this would be like existing securities.
Right.
That's what I'm saying.
So they're already...
All these individual stocks.
talking about more the custodianship the sort of like that all goes away that's why they're
panicking that's why they're pissed off yeah okay you and you think that there's there's gonna be
no sort of rehypothecation or like um illegal like like we just because it's if it's a tokenized
security and you can take self-custody changes you're gonna allow self-custody i have no idea
but this is a crypt this is a token that you could i mean i have no idea that doesn't mean
you get to have custody of it just because it's okay sure i don't know what the sec laws are going
to be i don't know what they're they're uh going to approve right right but if they approve pure
security tokenization if they get the green light because the securities the actual stocks are
already registered with them they're already meeting all the criteria so 500 million micro
strategy shares have been issued yeah okay and we tokenize some of those and we stick them at coin
base and how do we know we don't have that into your we don't end up with 900 million shares when
well they these mount like who's auditing across all the different platforms
if you have some tokenized someone they would have to take some of their float and they'd have
to tokenize it right but if you're going to question that if you're going to if you're going
to measure not lead to dark pools and hold on a second if you going to measure the actual number of securities that are out in the world it much easier to measure those on a blockchain Wouldn they have to all be on the blockchain
Well, that's what I mean.
But all the fraudulent activity is happening off the blockchain.
The blockchain is actually the better source of clarity because it can be audited.
What's happening at the DTCC, what's happening with...
Sort of like GameStop, you're saying, and sort of like the short selling.
naked short selling, et cetera. These are all the creation of paper securities
that don't really exist. That all happens because
it's off-chain. So you move that to tokenization
and of course these guys are going to panic because that's where they're making
a bunch of money, is lending securities that don't exist.
But I still think that we have to make sure that we don't issue
more tokens than there are securities and more.
Right. So that's up to the SEC, right?
Well, I think that's where the exchanges are begging them to say,
can you take a look at this and make sure they don't go run wild here?
Well, the SEC hasn't done a real great job in the traditional markets.
Yeah, no, they're not great at doing their job.
So, I mean, you know, I mean,
I think the legacy claims are saying at least do it.
When I was working at Payne Weber in the first major financial crash that I went through,
and Dole went through a bankruptcy, and they're like,
oh, there's 30% more Dole shares in existence
than we knew about.
So at least if it's tokenized and on a blockchain,
we can audit it.
Oh, after 9-11,
I was in Bank of New York disaster recovery site.
We had stacks, I think from the DTCC
and then stacks from like the banks that made the trades.
And we were just trying to match by hand piles.
I mean, rooms full.
Oh my God.
of books.
And we were just doing it by hand.
30 shares here, 30 shares here.
Okay.
Yeah.
Wow.
To reconcile after 9-11 and all the sort of pausing in the tape.
Yeah.
All right.
Let's move on to the next one.
It's going to be interesting.
Okay.
Cash apps lightning yield.
Block disclosed that its lightning node operations are earning 9.7%.
If corporate Bitcoin services are yielding high returns,
is this a breakthrough sign or one off from optimized routing that won't last?
No, I think this is really cool.
And I mean, yes, it is related to optimized routing.
Sure.
It is related to the fact that they have giant nodes and they're running huge volume.
But there are other companies out there getting high yields as well.
Now, what, like, does this last is going to be interesting, right?
How much does LightSpark, how much does Spark take over?
How much of this starts to move to liquid?
Like, you know, there's different, there's different.
so I guess what I'm saying is I don't think these high of yields last.
Yeah.
But there will be a yield.
Yeah, I agree.
And will that be considered the risk-free rate?
I mean, that's what we, as Bitcoiners, kind of anticipate that this is where this is going.
But, I mean, it's a payment routing network, right?
In this environment.
It doesn't become a risk-free rate.
Okay.
What do you think the risk-free rate would be in this environment?
In TRIFI, you mean?
No.
Let's say lightning usage just blossomed.
Yeah.
And there was enough liquidity to like, this is the new risk-free rate.
Do you think it would be 7%, 8%?
Anything would go down to like 2%, 3%.
I have no idea where it's going to go down, but I know it would go down.
It would go down.
Because that high of a yield, if it's replicatable over time, will be pursued.
But we are in a high interest rate environment.
Yeah, but the interest rate, the SOFA rates, Fed rates have nothing to do with this.
Right.
Well, do you think they would be related at some point?
Meaning like this would always come in lower or higher at some point?
What would be the relationship over a long period of time at full?
This is a pure volume game.
These fees are super low.
Like if I was Visa or MasterCard, I'd be going, oh, shit.
Yeah, that's interesting.
That's interesting.
Right. So I don't know if this, you know, becomes the, the, you know,
the love, the no risk rate or the, the, whatever you want to call it,
but it is a really interesting business model. People,
other companies will pursue that. And I think the fees will compress.
And then once, you know, the world wakes up to payments over lightning,
light spark and other l2s and the benefit and the low cost of that relative to visa mastercard i
think they should be thinking about this all right let's move on to the next one here all right this
is interesting the smp downgraded tether the smp cut tether's transparency score to five which is
their weakest right they go one is the best five is the worst over lack of reserve disclosure what
you think i think this is part of the sort of the coordinated attack i mean this is absurd i mean
if anything tether loaded up on bitcoin and gold and u.s treasuries uh so i yeah i i think this is
just sort of more of the battle between the traditional system and tether yeah um so so
look at there's there's an administration and a treasury that's saying we want stable coins to go
global we want to sell treasuries via stable coins globally that means that the banks are going uh
what's our purpose now right uh s p you should maybe do something about this yeah jp morgan
and step in i mean we've seen this before right where we like when they downgrade the u.s debt
that we've seen how off these rating agencies can be, right?
Like you don't get downgraded until you're at the bottom of the great financial crisis, right?
Like there's, it doesn't take too much time in TradFi to figure out that the rating agencies are a part of the game.
Sure.
So I just kind of chuckle at this.
Yeah, I think it's a nothing burger, but I mean, Tether's trying to fight back.
I wonder how much it actually affects their business.
i would venture to say at this point not much but it's not how they're yourselves how much of their
their standards offshore yeah do you think anybody offshore buying tether cares what the
s p thinks no no yeah but i think institutionally this is not this is just like like you know don't
worry b of a jp morgan you guys are going to be okay i got your back yeah i think it's a bunch of
that yeah yeah we saw that in a great financial crisis all right let's go through this next one
Bitcoin treasury stocks slump shares of companies hoarding Bitcoin.
You know, for example, MSTR or Marathon have tumbled on the market dip.
Is this a healthy de-risking of aggressive balance sheets or will we start seeing the big fish eating the small fish soon?
Yeah, I do think we're going to see mergers.
I think we're going to see acquisitions.
But I think this is just the market sorting itself out and finding what's going to work and what's not going to work.
finding out, you know, who's when the tide goes out, who's got shorts on and who doesn't. Right.
So I think this is part of the process. Equities markets go through this all the time. Whenever
you get a trend, something that really takes off and everybody chases it, you're going to get a
consultant. We're going to see the same thing in AI, right? The AI, the AI boom and the, like,
it's going to be trillions and trillions of dollars of AI transactions. Like they're not,
Like that tide's going to go out on that too.
And everyone's going to be like poo-pooing AI.
And then two years after that, it'll be back.
This is just the nature of markets where people can see the future faster than they can build the future.
So yeah, we saw a future.
It got extended.
It's being sold and it'll get built again.
So yeah, it's a more volatile asset than Bitcoin.
Imagine that.
Do you think that Bitcoin treasury companies were sort of diluting and causing a bear market this year by taking $10 for every $1 was bought?
Or were they the support all year long propping up the price this year?
That's a good point.
How much money that flowed into treasury companies would have instead flowed directly into Bitcoin?
Yeah.
I mean, I don't know the answer to that, but I think it's a great question.
because you go stick $100,000 in Bitcoin,
it's directly impacting the price.
You go stick $100,000 in strategy
and you're getting a fraction of that Bitcoin.
Yep.
So that's a great point.
Yeah, especially with the smaller companies
if you're buying at 5, 10, 15, 20 MNAV.
Right.
And yeah, I mean,
I think a lot of Bitcoin has got burned that way.
Yeah, MetaPlanet burned a ton of capital
that could have gone straight into Bitcoin.
Yeah.
Yeah, that's a good point.
All right, moving on.
coin shares pulls shitcoin etfs coin shares abruptly canceled its planned xrp soul and
litecoin etfs on nasdaq does this retreat signal a pivot no they're not going to bitcoin only
they're still going to come out with some wild stuff and some interesting hybrids uh some bitcoin
and sort of like traditional uh assets merged together probably in etfs they got a whole slew
of things coming for the next uh year yeah i think this was just a reaction to a lack of demand
Yeah, they thought altcoin season was coming,
and they were going to milk it and capitalize on it,
and it was here for like a month and then evaporated.
So they're going to pull it.
They'll reintroduce it if they see an opportunity.
Yeah, and I think there's a lot of risk there for them.
Shitcoin are going to shitcoin.
There we go.
All right, so Venezuela crypto payments.
Venezuela's retail sector predicts crypto will account
for 10% of gross repurchases by 2026 amid hyperinflation.
what does this mean for the future of bitcoin in venezuela i think that's a low estimate
especially especially if the administration i think this is all stable them out yeah sure
it's all stable i mean the vast majority is stable coins yeah but um i think if our administration
has anything to say about it it'll probably be more like 50 of the grocery bill it just seems
like we're seeding latin america in stable coins oh 100 yeah i mean this is where this is the new
trading corridor for the United States,
you're going to reshore.
You're going to reshore to the Americas,
not just America.
And you're going to get their people
to adopt the currency, which is happening,
whether the government's like it or not.
You're either going to be like the district manager
of the US dollar stable coin in XYZ,
Central South America,
or you're going to be up for a battle.
like we're seeing in Venezuela.
Yeah.
All right, let's go to Latin America here.
This is a similar,
but Latin America digital asset boom chain analysis
found Latin America saw nearly 1.5 trillion
in crypto volume July 22 through July 25,
June 2025, sorry.
Is Latin America quietly becoming Bitcoin's
proven ground for parallel financial infrastructure?
I think this is still all about stable coins, remittances, and dealing with inflation.
I mean, what's interesting, right?
Brazil, 90% of their crypto volume is stable coins.
It's stable coins.
So it's selling fiat.
And over that period of time.
It's selling their fiat to get a USDT.
And over that period of time, out of the 1.5 trillion was 300 billion by Brazil.
And 80%, 90% of that was stable coins.
Yeah.
and only like three and a half billion was right Salvador right so if you're
going to be I mean if this is this is gonna be the new trading corridor the
America corridor right we got we buying basic materials and and whatever the Argentina yeah from argentina so deal yeah we doing that we we we got el salvador housing our our tether criminals that we
exporting we're trying to get venezuela to clean up their act so it looks to me like
the administration is attacking the deep state through attacking cartels this is my tinfoil hat
if you're sitting there in the world saying,
how's the deep state getting all their money
and there's a big chunk of it that's against America?
Well, what are they doing?
They're bringing in illegal immigrants.
They're bringing in drugs.
They're killing people with fentanyl.
On and on and on.
Let's take out the cartel,
which is generating the revenue for the deep state.
And by clearing that away,
we can legitimize trade with the rest of right we're shifting from let's oppress
latin america right to let's build up latin america and clean it up so that we can do business
together because we can no longer do business with china and uh you know europe is dying so
what are we going to do right yeah this is this seems to be the move that's interesting yeah and
tether is based in el salvador yeah yeah so all right we'll see which is our first u.s dollar
general manager right i agree all right uh rsi is this a capitulation or a trap
bitcoin's rsi has plunged to 33 a multi-year low is this a textbook bear market uh bottom
signal or another cunning bull trap uh i so price can still drop while the rsi strength while you're
talking right it's it's diver it's called divergence right so when a momentum indicator
like the rsi signals a very bearish trigger hits a very bearish trigger that puts a lot of people
in a position where they're going to sell rallies.
And so the price could still continue down
while the RSI strengthened.
So this isn't, I tend, I mean, is it the bottom?
Could be, but my tendency would be to say no.
More than likely, we're going to rally out of this
and we're going to go test those bottoms again.
But I don't see this as,
and guys take this with a grain of salt
because I'm a horrible trader, a horrible trader.
so everything i'm saying here is a bunch of bs but i tend to feel like this is not going to be
your normal bear market and i the reason i say that is because i think it's going to be based
on how fast is liquidity re-injected into the system like you remember covid how fast liquidity
hit the system and how we were all like whoa like we're in a bull market now when the world shut down
it like that showed you that liquidity can change asset prices very very quickly and so
when i look out into 2026 i see how much debt has to be refinanced i see the conflicts and wars that
are building liquidity is going to be mad like it's going to be necessary for the trump administration
to make it through the midterms yeah so i think like if you could tell me how fast liquidity was
coming then i would be like able to tell you what i think the bear market's going to be over but i
i don't see it being like a normal four-year cycle bear market no i i one i i don't really
believe in cycles yeah i think it's been correlation but uh i i don't think we're in a bear market
actually i mean i think we as much as we've been in a bear market i don't think that this is
the beginning of a longer sort of uh crypto freeze here but ben workman wrote long leverage gets
flushed from the binance exploit bitcoin is a 30 drawdown mstr fud amplifies banks banks start
marketing structured bitcoin notes vanguard opens bitcoin etf access qtns qtns now i don't know if
you believe in coincidence or not but wow what timing trade fi has yeah i mean on the day uh
vanguard opened up sort of the etfs eight percent up right this is after sort of the jp morgan attack
the s p attack on tether uh on on mstr uh on and on so yeah yeah all right let's move on to the next
one the texas bitcoin reserve purchase texas made its first allocation from the new texas
bitcoin reserve spending five million on black rocks ibit so i mean it's just bitcoin price
exposure yeah it's not right i know there's no sovereignty here for texas in this it's a start
I mean, I don't know how a state would hold Bitcoin in a sovereign manner, but this is not.
How fast will these states turn if somebody's Bitcoin reserve gets confiscated through Ibit?
Sure.
I mean, I don't know.
Like, well, how hard is it for, I can't think they're just so afraid of self-custody or maybe they don't administratively have to change a bunch of their documentation around their governance.
if they buy ibit versus if they buy a commodity they have to self-custody maybe that has more to
do with it but you know it's a start and um it's better than nothing and uh i'm glad to see that
they're pushing in that direction i have mixed feelings about it but it's probably a net positive
but uh it's not real bitcoin yeah 100 all right bitcoin etfs breakout of outflow spiral
after hemorrhaging over 4.3 billion in four weeks u.s spot bitcoin etf saw their first
net positive inflows since october is december going to be green well what's your guess december
i'm gonna give it 60 chance of being green all right i'd go with 90 chance all right
but i'm just a bullseye where we go all right i want to read another on the bitcoin ai
from uh maryland hodl here in the end bitcoin has already won it will be the tool that enables
the rise of the sovereign individual that battle is still years away but it's coming i could see it
clearly now ultimately governments will eventually become automated via blockchain and ai reflecting
for the first time the true will of the people bitcoin and ai ai are not separate stories they
are chapters of the same narrative their convergence is by design it was always inevitable
bitcoin will reintroduce truth into the fabric of society becoming the force function that drives a
moral and ethical realignment ai will serve as the productive and scientific miracle that demonetizes
nearly all forms of monetary value together they form a unified arc bitcoin as the anchor of truth
ai as the engine of abundance let fiat minds play fiat games my message stack sats into cold storage
and heat up some popcorn because things are about to get very interesting very interesting
i agree with everything there if ai is decentralized
Do you think it will be?
I don't know.
If it's not, I think AI becomes the Vatican Library of Knowledge.
What does that mean?
The Vatican Library has all these ancient books and ancient knowledge
that nobody's ever been able to read.
So it becomes this, like, we collect all the information,
we know everything, and then we only unlock what we want you to know.
And you could see that today, right?
If you know a lot about a specific topic,
and you talk to chat gpt about that topic you'll instantly realize that this thing is just pandering
to me and you have to keep going no you're wrong you're wrong this is this and they go oh yeah and
you were right that's very intelligent of you cedric to to point that out to me like so like
what do you think that's designed like uh by a human to talk to humans a certain way or it picked
it's designed because I mean,
it's designed not to give you what you're looking for.
It's either it can't discern the difference between a lie and truth or it's
built.
Cause I've seen that on,
on Twitter where someone's like,
no grok,
that's wrong.
Yeah.
Look at that picture again.
And it's like,
thanks for going to talk to it about anything that you're really knowledgeable
about.
You'll find out that it's dumb as a box of rocks until you point it out.
And then it goes,
Oh,
you're right.
I thought a little bit more about that.
And,
and then it,
but it panders to you.
So if you're,
not smarter about the conversation that you're having with it,
it's real easy to think that you're being told the truth,
but you have to assume that you're not.
I think the idea is most people are going to get dumbed down by it
and not think for themselves and take it all as sort of like...
Well, and if you can trap all the...
If you can get people to rely on it
and you can aggregate all valuable information that's truthful
and only spit out what the end user is willing to accept...
Yeah, that's fucked up.
But if it's decentralized and really smart people are building specific agents around specific topics to make sure that it really knows the truth about a specific topic.
And those agents get decentralized.
And then those agents start communicating to each other.
Then truth will be spread.
And it will be aligned with Bitcoin.
but right now i kind of see it like the vatican library do you think these ai things are alive
no no no it's a large language model it's not alive all right no some people think yeah no
they're delusional all right do you think do you think or i'm delusional do you think that could be
true like a potential to be like the most negative force in sort of human existence no i don't think
uh i don't think that's the way the world works when things get really negative a good counter
like a good and powerful version arises that will offset it it's i think that's just human nature
good and evil black and white yin and yang well it's like we need the threat of an ai overlord
to do the right thing otherwise we just kind of passively go yeah this is great right you need
the threat of uh of you mentioned it pander too a failed financial system a failed financial system
like they couldn't get banking their currencies like it had to get so bad that they just rapidly
adopt bitcoin like that's the way humanity works that's why i always say nothing gets fixed until
it's broken because if you really view the way humanity reacts to things it takes eminent threat
to create action to offset it.
So I mean, maybe we are going to have like,
you know, we'll start with the AI overlord
and all the oppression that that creates.
And then people will steal the, you know,
open and open source it and start creating the alternative.
So I think in the end, it's a win,
but it depends on where you're at in the cycle, right?
Yeah.
But I don't see them.
I don't see AI and Bitcoin.
I think AI will use Bitcoin,
but I don't see them aligned for truth.
Bitcoin, definitely.
Nice.
I hear you.
All right.
Well, Francis, do we have any comments or questions?
Nothing tonight, boys.
All right.
Sounds good.
Well, if you guys are enjoying the show,
hit like and subscribe.
We'll see you every Tuesday at 8 p.m. Eastern.
This is Bitcoin Center brought to you by Byte Federal.
Go bank yourself.
if you got the point of sale hopefully what like the price of bitcoin goes back up so we can get
the rv back or no we're staying in here all right i'm gonna do it up and uh stay in the swamp shed
here the chicken coop all right thanks guys all right peace