Keiser Report: New Era of Cryptocurrency (E1221)

hi this is Max Keiser Stacy Herbert of the cosna report yeah we're in Toronto check out what we did on our live stage act you know the story begins in 1971 actually you know President Richard Nixon entered a new era in global finance he abandoned the Bretton Woods Agreement and the gold was no longer anchoring the global economy we entered a period of very interesting experiment of fiat currencies anchoring fiat currencies anchoring fiat currencies anchoring it's Turtles all the way down we entered into the modern financial era of no reference value at all no gold nothing just the country's flailing about entering into spurious wars economic theoretical policies based on nothing and a lot of money printing the rise of the central bank the wholly central bank the Ben Bernanke's the Janet yellen's of the world who we worship was priests in front of the cathedral of money printing now that era is coming to a close the era of the u.s. dollar is world reserve currency is coming to a close with the rise of Bitcoin and crypto currencies is it an asset class or damn right it's an asset class how do we know that because as people abandon the fiat currency nightmare that was given us nothing but misery for 50 years they are plowing into fiat currencies is it going 100,000 you're darn right it's going under a thousand because there is trillions of dollars sloshing around in a cesspool called the global financial markets there's absolutely no rhyme or reason to valuation on any of these assets whatsoever and I saw a headline coming up here today which immediately got my attention so the exchange cracking right cracking Jesse Powell jesse powell at the Krakken exchange they have told Snyderman in new york to pounce and to base like you know they're trying to dig into all the market making that goes on in these exchanges they wonder how price discovery works on these various exchanges and so all these exchanges are saying look we are a post regulatory framework we're opposed to beyond currency framework we're entering a new era we don't need the SEC the CFTC any of these regulators because we're taking the sink to another level and it's based on a whole different valuation model and just to give you some context of you know my history and all this and how I got into it was back in 1995 1996 I started the company in Los Angeles called the Hollywood Stock Exchange and we were trading virtual assets with a virtual currency on a virtual exchange and to build that technology which was pretty new at the time I had to invent a technology so I invented a technology called the virtual specialist technology it has a US patent I think it's five nine five oh one seven six is the patent number and so we were having to do price discovery on virtual assets this eventually was sold to Cantor Fitzgerald in 2001 and they moved the entire thing to their office in New York the top floor of the World Trade Center a few months before 9/11 so there was an inability for them to really capitalize on that going forward they wanted to introduce box office futures contracts and I told them at the time that this would never happen you would never launch box office futures contracts because the MPAA the Motion Picture Association of America is a very guarded monopoly in the United States without any competition and they don't like the idea of price discovery on box office they like to control that market with an iron fist e6 Studios in Los Angeles and sure enough they didn't listen they know they spent twenty million dollars trying to develop a box office futures contract and at the last minute for the Granville or as a Graham Dodd or is it Graham touch they introduced a rider into that law saying out long box office futures contracts so Hollywood is the only industry in America that has this kind of protection from financialization you can't trade a box office features contract but you can trade futures contracts on almost any other industry in America because they don't want the competition they don't want the price discovery they don't want to interrupt the flow of their model to market their way into a box office event and I find this a bit disturbing because it says that free-market economics and price discovery is selective in America we like it in certain markets but not other markets and being in the news business that I that as I am we're constantly because of the regulator's who are trying to tell us which news is approved by the regulator's so this idea of free market capitalism being selectively applied to some industry not and not others it's now also applied to the news business so some outlets their news is considered to be more truthful than other news and they don't allow the public to decide what they want to see and for the public to make it up their own line about what is informative and what is relevant to their lives another word for this would be propaganda so we live not only in a price propaganda and a fiat currency propaganda but we live in a news propaganda the major outlets in America are in to the most insidious vicious propaganda and war mongering than we've seen in decades the idea of free markets which I'm totally in favor of right it goes back to the Enlightenment it goes back to Adam Smith it goes back to the transition of power from the freakin Catholic Church to the Enlightenment to the individual sovereignty to the rights of man he needs to be preserved and markets are a way to get there free trade is a way to get there anything that interrupts free trade interrupts freedom and anything interrupts freedom is a reversion back to neo feudalism and we see that happening right now in the United States and presumably here in Canada as wealth is concentrated in a few or fewer hands we have a risk of neo feudalism on the horizon crypto is is is the answer in my view and it is an asset class and it is gobbling up market share and the u.s. dollar is doomed all fiat money is doomed and any money that you keep in fiat money only keep money and only have fiat money keep money and fiat that you're willing to lose is gonna vanish the biggest bubble in the world is the US dollar the stock markets in a bubble the bond markets at a 300 year bubble we haven't seen bond prices sovereign bond markets aside 300 years in Britain and in over 240 years in America think about that it's at a multi hundred year bubble when those bubbles bursts and they well because interest rates can't remain near zero for a perpetuity to help keep insolvent banks looking like they're solvent every single Bank of bust Deutsche Bank is leveraged at five thousand to one there's nothing collateralizing Deutsche Bank put some hamsters in the in a wall somewhere in Munich it's absolutely nothing it's a mirage damn it damn those banks all right what else we got here oh yeah so what's that that's the that's the Genesis block let's see some applause already this is the beginning that's it true it all started notice that the headline is Times in London Chancellor on the brink of a second bailout of banks is that random did they just put that in there as a time stamp or is Satoshi making a comment well it could be both but I interpret it as a comment the banking system is in jeopardy and it's a reaction if you will there's a very political element to Bitcoin that is not talked about that often and I think that probably to put in context of where we are historically it should be mentioned all right so there's a Jamie Dimon suicide banker and people say why do you call it Jamie you know a terrorist a suicide banker when you think about it banks on Wall Street they they're cut from the same cloth as she hotties they misinterpret their basic texts right so in the case of finatus fanatical jihadist theocracy a chronically driven psychopaths they kind of misinterpret the Koran hear Jamie Dimon totally misinterprets Adam Smith I mean he selectively reads books on economics to support his maniacal psychosis they go to terrorists might go to madrasahs Jamie Dimon and his crew go to the Ivy League schools which are the madrasahs of our hero who teach them economic models that are dangerous and fanatical he's willing to kill himself and others for his beliefs so he has no compunction about putting his entire society or himself at risk by pushing weapons of mass financial destruction as Warren Buffett calls them derivatives it's going to blow himself up kill himself and anyone around him so he's just terrorists with a nice suit initially he was very anti Bitcoin then he came around a little bit now he's a little bit more probit going because the markets moving against him and he says he has no morals or ethics or any kind of soul he's just gonna go with the market he's just like a dead fish we'll go with the current right he's not gonna swim against the current because he's inside he's dead he's a parasite he's a tapeworm on society well I'll spare you my jamie dimon the tapeworm impression because it's too vulgar but does it give you night well yeah you know it's pretty sick move on you know we've been doing our show for like thirteen hundred episodes and this is kind of the reaction to get people are understanding that the enemy are the banksters and it's not the concocted skirmishes you know the world with the war the scapegoating that goes on right now you know when the reed emma-crats were in charge that you remember the muslims or the the enemy and now that the republicans are charged the the russians are the enemy so it's all about the enemy of the banksters that's our common enemy so we got to get above the parochial regional nonsense and scapegoating and bigotry wachovia 380 billion dollars in drug money for mexican of course they were bought by wells fargo wells fargo big position by warren buffett wells fargo caught recently going into millions of customer accounts and stealing money they got a slap on the wrist the price of fraud and terrorism in america is roughly you get penalized ten cents on every dollar you steal that's the penalty that's the business model in terms of kobe laundered 380 billion dollars how is that compared to Silk Road which was used as an excuse of see headlines like this all the time that Bitcoin is used for money laundering or buying drugs or things like that right so Ross Ulbricht it was with the Silk Road he's in now serving life in jail anybody from Wachovia in prison mostly from HSBC they just received built this was in the the revelry they never went to court so I was gonna say the court case but there was never a court case so this was in the discovery what happened with HSBC is that they actually physically designed like the interval of a tracer or a ledger they created a physical box uniquely for the Mexican drug cartels to deliver money to HSBC branches in Mexico City and here they don't go to prison they they never were charged with anything they are given huge bonuses and the bonuses are driven by stock options that go up in value based on the stock price based on stock repurchases and buybacks funded by 0% interest rates from the central banks so the central bank is a is a complex so again Bitcoin is fighting this fight that's what bitcoin is putting these guys hopefully six feet under bitcoin is the revolution Bitcoin is the means by which there will be a lot of as we saw in the 1930s bankers jumping out of windows that that's that's part of the the goal that was really fun max oh I enjoyed it immensely well don't go away stay tuned for much more after the break stay there welcome back to the castle report on Max Keiser our special guests stunning ray from you two coy sunny welcome to the Kaiser report days we have me it's great to have you on you know I've been following your career really for a long time and you're one of the earliest guys into Bitcoin and of course in India it's a great place for Bitcoin to flourish because it is a next generation of financial technology in a country that's looking for next generation financial technologies and of course it took off like gangbusters it's hugely successful and then I was just reading that the Indian government they're not being friendly ray what's going on so the RBI the Reserve Bank of India has recently announced that it's I mean in short they don't want banks and payment companies to be working with cryptocurrency companies like the surprise was it a surprise I mean I've read the Bitcoin white paper like six years ago so not a complete surprise but yeah I mean a little bit I mean a surprise okay so here's how much contact you have with the government now at this time with unicorn which is one of the largest crypto exchanges in India how much interface you have with the government I mean quite a bit quite a bit we know almost every regulator there's like maybe 7 or different departments that are looking very closely at Bitcoin we have relationships and many of them but you know the different government bodies don't always work together they're like you know a multi-headed monster where one had you know kind of does things without knowing what the other one does to some extent and so yeah so this this was a little bit out of left field with the RBI's announcement but like you said you know in December you know it's not just you know coin like we started the show in India but there's like 2025 exchanges all by really really smart people backed by smart investors but the RBI decided that you know that they didn't now one thing that important to note is they did not ban Bitcoin so even there's politicians on YouTube saying hey if you want to buy Bitcoin with cash you want to trade it between yourselves go ahead we just don't want the banking system interacting is this a period of maybe a bit of transition from Bitcoin naivete to a Bitcoin real politique what I mean by that is that when we all start in the business when it got started there was a feeling that it would solve problems and that was a fantastic paradigm shifting technology that would bank the unbanked particularly in countries where in India for example where you know this would be such a step up for a huge portion of the population that didn't have access to bank accounts and so and and is it in a case of now a slightly different mental attitude toward Bitcoin if my if my question makes sense in other words the promise of Bitcoin is so fantastic and yet it's being in my view I'll say this in my opinion it's being stifled by a bureaucratic machine that maybe is not really gonna take on all the warm and fuzzy aspects of this technology and why it's so great right what do you think about that what I just said first they ignore you then they laugh at you then they fight you then you win I think we're at the den they fight Indian who said that I think yeah I think we're kind of at that stage I mean look at the last three months since December I mean the price of Bitcoin I'll just take a big hit but you had like some of the biggest companies in the world like Google Facebook Twitter saying that they're gonna ban ads you had banks you know coming down on Bitcoin globally and so I think it's you know it's it's hard but I think at the same time it's kind of good why because you talked about banking the unbanked so I don't know coin up until you know even now we only deal with people who have bank accounts because we're forced to but if we now cannot work with people in banks we're only going to be working in the unbanked sector so in a weird way it's gonna accelerate our progress towards towards our goal so yeah like I said you know in Bitcoin nothing ever surprises you like I had a desk job for ten years I could go back to that but I chose this space because it's difficult it's hard and and there weren't enough people you know working on these big challenges and so you're ready to work around anything and the obstacle that comes down and your crypto to cash we're doing we're looking at crypto to crypto we're looking at you know white labeling we're looking at you know moving our order book outside of India and maybe you know like there's like I could list 20 different things that we could do we're not gonna die we're a cockroach right okay now it's similarly in China you know they've they're now going down the path aggressively of decentralized exchanges right because the government's like trying to attack the exchanges the exchanges you know as I've said from the beginning I've always been the point of failure because it's the interface with Fiat and if there's gonna be a clamp down that's where they're gonna go that's really going to attack moving along too now some comments made in New York about going after exchanges and just looking at their price discovery mechanism how they how they maintained their order books they want cracking and other exchanges to start answering to regulators cracking the response has been basically we don't care what we don't reckon answer your letter we're not a good answer you inquiry we're glad we're not part of New York and you know we can exist with that this regulatory framework and they've taken a very that approach of like the damn the torpedoes we're going straight ahead you know very aggressive are you guys part of that movement is that is it mean it's just a global movement it can't really be derailed at this point can it no but I what will happen is entrepreneurs like myself and capital and we have 150 employees and millions of users we're gonna have to focus our attention towards decentralized exchanges and guess what that's not such a bad thing because when I think back to five six years ago when I first got in a Bitcoin all.we obsessed about was building a decentralized exchange but I think it was early you know but I think now the texts come a long way I'm not saying it's gonna be easy but we are seriously considering that path as well okay so the unicorn is I'm making news right here considering that model right it's it's in the warehouse it's on the shelf you can pull it off put its engineers to work on it and keep keep keep that will lights on and keep rolling believe it alright fantastic so now let's talk about the conference blockchain economic event B and how many years has it been running I've been doing events for six seven years and starting in India that's how I met my co-founders sattvic and Irish and IB and started to know coin and so about a year and a half ago or two years ago I started living in Canada again because this is where I'm from and I noticed a disconnect I noticed that there was a lot of Bitcoin events but it was like in coffee shops and bars and basements and I wanted to do an event once every three or four months where people would look forward to it and they would kind of remember back and be like hey remember when Mac said and and so that was the initial goal that was kind of the bigger goal was we wanted to be the catalyst for 10 unicorns out of Toronto and and like I just said on stage you know there's this like miss notion that that I that we try and make money on these advances the truth is is firstly I don't even make money on this and I'm telling you that because nothing like the other thing wrong with making money but I literally do these events because I love Toronto and love blockchain and I want the smartest people in the world like yourself like Adam back like Chris I said it I want people like you to come here and and you know and share the gospel of interesting the way these events are kind of taken on different characters so in the Miami event this past year it was very Lambeau oriented a lot of icos and the chesty busty women you know you know it's very like Playboy Mansion meets Satoshi okay then this event is more as you say you've got some original gangster types Adam back this year you know he's one of the solid guys he referenced in the white paper you know you've got other really hopeful profile folks and I met here – 15 year old kids that came to the event they're into blockchain they're figuring out how to apply blockchain to genomes and artificial intelligence and this is the this is what gives me hope sunny is that this next generation coming up is completely empowered by blockchain and they are ready to take this to the next level are you seeing that as well so for this event tickets are four hundred dollars a head if you're a student you got a free ticket I should probably say that on camera but that was our kind of secret deal was that we just wanted young people in here yeah because they're the future and and yeah so anyways a big little emotional but definitely that's a big part of it right so the event itself it kind of operates it's a think tank and a gathering place and try to help the ecosystem in whatever way you can where as a unit coin you know that's you're more of your day job and you're you know pounding that forward and bring it through the startup cycle and and how is the startup environment now is it the DI Co market is that we had a huge I co market in 2017 regulators came in they really put on a huge amount of service you know not surveillance but looking at all these times where are we in that cycle so our last when December I did another event where we had Edmond Moy the 38th director the US Mint was also a Bitcoin evangelist as our keynote that sort of things we try and get like like oh geez like you said and anyway so he came and he you know he shared some some insight with us and he did say that look the hammer was gonna come down on ICO is and look I'm a big fan of the free market so from that perspective I love you know everything but personally as someone who spent time in the financial services sector I worry a little bit about I SEOs and and what's happening now and and you know could be argued that a lot of the the clamp down now is happening not just because of Bitcoin goes Vic was been around for 78 years but it's because of this ICO phenomenon again I caution people like that's why I do these events is because I try and find some of the better projects and then put them on stage so people can interrogate them and ask some questions but like I think it's not it's not the secret I'm I'm personally not super bullish on on icos but I do believe there will be a few that will succeed and might change the game the word around the street has always been that you know you can buy Bitcoin on an exchange but do you very quickly put it off exchange into into cold storage into a paper wall into a hard wall because these exchanges they tend to be vulnerable going back to the mount Cox which everyone still remembers because it was a huge event so at you know coin where is the industry on the security front so that people have more of a confidence that when they go to exchanges that they're going to be getting the security that they need so just just honest I know we partnered with blockchain dot info blockchain calm and we have a partnership where through our API a customer in India can buy and sell bitcoins straight from blockchains meaning they're holding their own private keys and they just hit our API to make the purchase and as soon as the bitcoins become the account essentially like the money market became with Jax we're partnering with mycelium and so yeah we see that as like the the next evolution right where people hold their own private keys but we act as just the mediator for for liquidity right well that makes a lot of sense how is volume and trend being analyzed single I mean volume is ridiculous right up until December we were onboarding 10,000 users a day a day like we literally couldn't keep up with it but yet obviously everyone was like in the last few months the the markets you know definitely calmed down a bit personally I kind of like it when things are not like through the roof and everybody and your neighbors talking about but I like it when everyone's like nah this is never gonna work and it's failed that's when I get most excited what's the next event we can look forward to um three or four months we get another one I'm trying to do something called blockchain Expo okay maybe later this year much bigger more grander and yeah that sounds exciting yeah I do have to go back on Steve I love you guys thanks Manny and that's gonna do it for this edition of the Cosmo report it's me max keiser Stacy Herbert I'd like to thank our guests on array of Unicoi trying to catch us on Twitter which guys the report until next time bye y'all

24 thoughts on “Keiser Report: New Era of Cryptocurrency (E1221)”

  1. Paramayning is the key advantage of PRIZM before the rest of cryptocurrency. In the basic mechanism of Forzhinga, developers was added a unique, linear-retrograde mechanism of determination of the award for storage of funds, aimed at economic attractiveness and gradual substitution of mass of all existing Financial instruments of the world Keiser Report: New Era

  2. the only thing i have seen is cryptocurancy lure people in and steal their money and that is the bottom line.

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  4. What is the best Cryptocurrency Portfolio Manager ??? Is there a list of CPMs with reviews, out on the web?

    Has anyone tried… M y C r y p t o . L i v e

  5. Max you da man! Electra coin decentralized currency new wallet! "Not your typical crypto currency" – J Mcafee

  6. BTC is no longer bitcoin. its #BCH The devs are about to show that its more than money.

  7. Gandhi did not say the "First they laugh at you…" quote Its was actually a union leader

  8. IBM and Stellar Network having central banks join their network to use stellar lumens for international transaction… Some central banks will be on the stellar network before the end of the year. I am always asking myself why keiser dosnt talk about this? i know he knows about it. Google"Jesse Lund, IBM stellar central banks" and do some research!!! will this comment be deleted?

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