AI, Bitcoin, Crypto Regulation, and Congressional Gridlock

[Part 1 of 3] [00:00] it was two and a half billion dollars. I couldn't have done any of it without AI. If if we had not had AI, we would be $8 billion less. We five IPOs, none of them would have happened because I used AI to design the securities and solve all the tax problems and all the securities law issues. You know, so I like I'm a big believer in using AI to design new things. And look, I'm just I I focus upon digital credit and security, but there's someone there thinking about how to make the car drive and cure cancer and like like aren't there like 100 million problems the human race has to solve that we've that you're like, well, you're going to need a thousand people with PhDs to solve that. Well, guess what? Now every 16-year-old has a thousand PhDs at their fingertips. And so I'm very bullish. The world's going to be a much better place and and we're going to see an age of empowerment and abundance because of digital technology. [01:03] And we could see a resumption of the primary trends in gold and Bitcoin, meaning gold resuming the uptrend and Bitcoin resuming the downtrend. And I think it's also interesting that the main driver of the Bitcoin enthusiasm now and the buying is coming from strategy, selling 11 and a half% uh, you know, preferred in basically the equivalent of a Ponzi scheme, but creating a lot of demand by people who either go know it's a Ponzi or don't care. They want 11 and a half% yield and so by offering people an 11 and a half% yield, Sailor has raised billions of dollars, which he has then used to buy Bitcoin. But had he not bribed people with 11 and a half% yield, he would not have had the money to buy all that Bitcoin. So that's interesting that the demand for Bitcoin is not because people want Bitcoin, it's because people want 11 and a half% yield. Now, they're they're not going to get it in the in the long run because the whole thing is going to collapse. But that's what's driving Bitcoin, not demand for the Bitcoin itself. People aren't buying strategy or or stretch because they want Bitcoin. If they wanted Bitcoin, they'd just buy it. They're buying stretch because they'd rather have 11 and a half% return than Bitcoin. [02:26] Plus there's a lot of unique technology in Midnight that's going to make the use of Cardano safer. Like Midnight passport will be the fastest, safest, easiest for you to use Cardano. So we gain all the usability enhancements and everything. Plus I'd argue Midnight is an essential component for Bitcoin. That Bitcoin users, when you look at that side of it, you're like, okay, Bitcoin users, they want privacy. So Cardano could do a lot of the heavy lifting on the programming side, but where it's the private coordination layer is just for all that. So we're actually working on this programming part, the Bitcoin D5 setup, what we call it the the circle. So you start with Bitcoin, Capry and I'm going to put 50 Bitcoins of my own money into this free Bitcoin. Works. So you start with Capry and uh Bitcoin. You lend it to stable coins. So that all occur on Cardano. So specialized transactions through the protocol bridge. And then that stable coin would then be deployed into a yield bearing instrument. And then as you make yield, the yield is converted to Bitcoin and then it's set to your Capry. And then Midnight coordinates all of it, makes it private. So you you have like all three networks working together, and then you have this circle, and then from the Bitcoin user's perspective, it just gives them a button, make money, click the button. And then it locks their Bitcoin and you start generating a yield. The security actually anchors with Capry on the Bitcoin network. So it meets my three rules that I have for Bitcoin D5. One, there's only Bitcoin. So that is something. Bitcoin, Litecoin is better money than than Fiat, obviously. It's also better money than gold. I think it's I believe it's the best form of money that um humans have ever come across. Right? Money being good, meaning that it's um it's inflation proof, right? No one, no single person, company or the government can print more money, right? Can't print money and play with the money you're holding. Uh you're storing, right? That's that's kind of one of the key things about money is if you work hard, you make money, you don't want that money to kind of disappear over time, not from your own doing. Right? So that's that's key and Bitcoin and Litecoin and uh most cryptocurrencies um is able to to do that. [04:33] I could have the argument that real estate's better than Bitcoin for a number of reasons, by the way, depending on who you are. Um, your audience will probably disagree because they're probably a bunch of, you know, Bitcoin maximalist. They don't have as much Bitcoin as the real estate guy, by the way. No, I I'll tell you right now, hold on one second. See, that's the funny thing, dude. That me and my brother were talking about this yesterday. You know, the guys that know the most seem to have the least. [05:02] 100%. That that I can probably agree with you on. [05:06] I think it should be a bigger issue within the crypto system and the ecosystem. What do you think? [05:11] I think it will be. I think privacy is going to be the the new if you want in my view, and this is what I'm tasking the investment professionals at Millstream to sort of figure out. I think that the stand out shitcoin or, you know, few shitcoins of 2026 to 2028 will be related to one shape or form to privacy. We already saw the, you know, amazing move of Zcash over the last few months. Zcash is down 50% from the 780 high, but I think again, my goal is, you know, my mental models 10 to 20% of the value of Bitcoin. That's what Zcash ends up. So much higher than where it is today. But, you know, you know, taking away Zcash, what is the token project or protocol that's going to utilize some privacy technology. I'll be something related to ZK zero knowledge proofs to do something whether that's quantum resistant, you know, the AI overlords can't de-anonymize our data or, you know, see what we're doing. Whatever it is, right? These are the things that we're literally afraid of of what bad things that could happen with the proliferation of big tech, big government. [06:20] Trump getting elected and knowing that we share friends in the White House for all the populist party is of Europe who are under attack. Every single populist leader, if you look at the leaders, and my last documentary was called Silence. I got 18 months in prison for my last documentary. The reason I aired it is because the documentary was so bigger than me. It's exactly what they're doing. Lawfare has been waged against if you go through, I'll pick any. Pick Herders, the leader of the Dutch party. Pick Marine Le Pen, any politician in Europe, yeah, anyone. Pick any one who has stood up and tried to speak against immigration, and you will see a history. Matteo Salvini, I was with him two days ago, the deputy Prime Minister of of Italy, was prosecuted in 2020. They said he collapsed because he stopped the boat. He was prosecuted in 2021. He's in charge of other crimes. The process is the punishment. Every peaceful leader who's tried to step up was charged. You saw what they've done to Bannon. You saw what they've done to Alex Jones. You saw what they're trying to do to Trump. That's happening across the board. They're trying to of the state. I think it's probably they can for on. I'm very optimistic for the future. More not because they're not in. the public already. The public is awake. [07:38] So the other thing about it here is a lot of political power still in crypto. You know, it's going to have a meaningful impact in the 2024 election and certain races that were just absolutely going to be lost are still in play have just so much coming. And I think things like Cardano has been doing a lot of that getting conversation to try to get it into a better shape and hopefully September is going to actually be able to get it up and running. And that's a lot of fun. And then the actual system that the roll ups, the 100 pages of adjustments and clarifications and other things. And I don't think anybody realizes how much work's gone into it. I was talking to Senator Scott. I said, is terrible. He said, you know, we worked on this three times longer than Obama worked on this. And that was in response to the 2008 financial crisis. [08:23] I've talked about Solana and how I've felt about Solana. They started to win me over a little bit with, you know, Goldman Sachs talking about how much money they have on Solana now. You know, like all these major companies coming out and talking about how much they're they have on Solana or how or what you're building on Solana and using Solana as rails. I mean, when you start hearing that, you you at some point you have to reinvent yourself or you have to adapt to the current situation and the landscape. There is no traffic on Ethereum. So projects like Bobo and others have no other choice but to leave. [08:59] Well, there's more to I think your assessment is on point for the most part, but it's also it's a double-edged sword because it's it's a it's a fucking stomping ground for people to go to and make trade um and take advantage as well. And that we've seen that on full display. And that [09:15] What first got you excited about blockchains? Think about it. Oh, wait. I bet it wasn't multi-million dollar hacks, exposed data, or finding somewhere safe to store your seed phrase. Was it? Maybe it was the idea of decentralizing a broken financial system. Maybe it was imagining a world where people own their own data and get to sharing the value it creates. Or maybe it was the promise of a fundamentally better way of connecting, communicating, and transacting. The next phase of the internet that empowers us instead of exploiting us. So, why hasn't it happened yet? Why are we still living with the same broken system that blockchains promised to fix? It's because blockchains can't keep a secret. Enabling open transparent systems was only the first half of the challenge. For blockchains to really change the world, they also have to be able to protect our sensitive data when it matters. And that's why we build Midnight, to bring down the final barrier to mass adoption and unlock the full potential of the decentralized web. Let's build the internet we deserve. Together. [10:35] Ladies and gentlemen, we all know this in crypto, ownership matters. That's why Cake Wallet. Cake Wallet gives you full control of your digital assets, all in one easy to use application. You can store Bitcoin, Litecoin, Zcash, Monero, and many more with just one secure backup. Swap between coins in seconds. No copying addresses, no complicated steps, and even includes Bitcoin Lightning for fast payments. And with Cake Wallet built in, you can use crypto in real life through debit cards or gift cards. Simple, secure, self-custody. Download Cake Wallet and take control of your crypto. [11:19] This is Houston. T minus one minute until full data blackout. All eyes are on you. Breaking news. There's an astronaut conducting an emergency repair on a global communication satellite that could go dark at any moment. We have a second angle on this. Is that guy on FOMO? Oh yeah. Yeah, let's get back to it everybody. Opportunity cost is simply this. Every position you take is a position you choose over something else. This just in. According to the astronaut's FOMO account, highest in the room, the satellite has been restored. Yes. For now, the crisis appears to be over. Breaking news. There's an astronaut conducting an emergency repair on a global communication satellite. Satellite's up and running. Positions looking good too. [13:08] There we go. United States of America representing. Socialism does not work. Digital assets. Is it better to move money at the speed of light? People are greedy when they also try to acquire gold. I'm here providing electricity and that energy that is necessary. I'm the modern day Tony Stark. [13:38] There we go. United States of America representing. Socialism does not work. Digital assets. Is it better to move money at the speed of light? People are greedy when they also try to acquire gold. I'm here providing electricity and that energy that is necessary. I'm the modern day Tony Stark. [14:08] There we go. United States of America representing. Socialism does not work. Digital assets. Is it better to move money at the speed of light? People are greedy when they also try to acquire gold. I'm here providing electricity and that energy that is necessary. I'm the modern day Tony Stark. [14:38] There we go. United States of America representing. Socialism does not work. Digital assets. Is it better to move money at the speed of light? People are greedy when they also try to acquire gold. I'm here providing electricity and that energy that is necessary. I'm the modern day Tony Stark. [15:07] I already put the overlay as call in. It's crazy. What are we doing here? Damn, where's the other God damn it. God damn, did I not download it? Did not one one two three four No, I downloaded everything. What the hell? Anyway, welcome, welcome, welcome to the breakdown. Episode 785. As a true professional, I will As a true professional, I will keep going. Hold on one second. Let's see if I can get this up here. Let's see if I can get it up. Hold on one second. Hold on. This is live. Of course, of course when I go live, I got to go ahead and freaking do this crap. All right, give me a cuz I I got I got like I think I got OCD, man. It's it's kicking in right now. All right. Uh, no. No. No. No. No. So hold on. No, no. No. What the hell? Did he not give me one? This fool not give me one. What the hell? All right, that sucks. All right, I guess uh I guess we keep going. Anyway, welcome to the breakdown. You you guys know the overlay that's usually on here. You know the overlay that's usually on here. By the way, I I got some news, so it's really cool, really cool news. I'll go ahead and talk about it. Uh, this show obviously is sponsored by Midnight. What do I why did I say obviously? Well, this show is sponsored by Midnight. Episode 785 sponsored by Midnight. Midnight is the title sponsor of the breakdown. Also, Polymarket. Polymarket is the official prediction market sponsor of the breakdown. Get the latest data. Seriously, get the pulse of the ground on on Polymarket. Also, Cake Wallet. Cake Wallet one of the most secure wallets that we have in the crypto industry. So if you're looking for a wallet that you could feel secure in, that you could secure your assets like Bitcoin, Litecoin, Zcash and Monero in. Go to cakewallet.com. Go to the App Store or go to Google Play to go ahead and download it. Also, if you want to go ahead and I mean get away from some of these cold storage products. You can go ahead and refurbish or not refurbish, but you can take a phone that you currently have, probably sitting on your desk or somewhere in your closet. You can go ahead and factory reset it and you can download Cupcake. No, not the stuff that you eat, okay, while you watch this show or you listen into this show, and I'll get to that part too. Um, you can download that on to a factory reset phone and put your assets on there and feel secure. FOMO, shout out to FOMO. FOMO is probably the fastest growing social fi trading app that you have in this industry. Shout out to the boys over there that are working hard. So a video clip that was sent to me. A day in the life of working working on FOMO with the boys working extremely hard. So shout out to them. Love seeing people work their asses or be delusional about about winning. Also, for those uh and this is this is a good one. This is nice. This is nice. Uh, if you there there are people that do replay the breakdown every single day. I have an international audience, so uh that's a that's a pleasure. But, I know there are a lot of people that go to the gym. A lot of people go running and they can't watch, physically watch the breakdown. So, we are now on Apple. We're on Apple. We're on Spotify, we're on Amazon. Okay, and we're on I Heart Radio and more. So, We're cooking things up. We're talking to people. So if you want to go ahead and listen to me while you work out, which you should be listening to me while you work out, you can go ahead and go on to Apple. Apple Podcasts and Spotify and I Heart Radio along with uh Amazon Music. So shout out to them boys. Two of the four we've spoken to. Two of the four we've had a conversation with. Anyway, All right, let's get down to it. Let's get down right down to it. I wrote an article about this yesterday about how disappointed I am with Congress. Democrats or Republicans, it doesn't really matter. These these individuals do not work for us. Uh, clarity, where does crypto go after the Senate setback? They couldn't even it was sad. They couldn't vote to have the bill just pass for discussion. That's what the the vote was for yesterday. Just to pass it into the chamber so they can go ahead and discuss and talk about just talk about the bill itself. The Republican Party for the most part made all the concessions. Trump made all the concessions that the Democrats wanted. They got them. And then at the last hour, they said, nope, not good enough. They moved the goal posts. I said this yesterday. Sad and disappointing. Really sad and disappointing. You you can't take it's mind-boggling. You can't take a bill and move it forward. What does that say? When you can't take a bill, when both parties, okay, now I'm going to just say both parties. I'm a proud Republican, okay? But I am somebody who can I I feel I can work with everybody. Democrat, Republican, independent, it doesn't matter. When you can't take a bill that you guys have been discussing for fucking months. When you can't take something, I should say years. When you can't take a bill and move it forward for discussion, when you've already been discussing it or you want to have more discussions on it, there's a fucking problem. There's a big problem. Huge problem. And we need to look at who voted no. We as a crypto industry need to look at who voted against moving the discussion forward to look at the bill, make maybe changes to the bill. So we can finally pass this bill and give clarity give clarity to the people of the United States of America. We didn't do that yesterday. We failed Americans. Not us the people, but the people that represent us have failed us. And that is the truth. My Republican friends won't want to hear this. Democrats won't want to hear this, but what I am saying here is 100% fact. If you're in crypto, you can throw out your party affiliation. You should care about crypto. A lot of people like myself will say, well, the Clarity Act is really for the banks. Well, fine. There are provisions in there for retail, but mostly for the banks. And and okay, no problem. No problem. But moving the Clarity Act forward would have brought or will bring in money into this industry. Now, will this industry survive without the Clarity Act? Yeah. Like we will we've we've survived with mud being thrown on us constantly. Okay, we've survived scary Gary and and and and a bunch of people that have done everything possible to destroy us. PayPal, all these people that came out and called called crypto rat poison and Bitcoin dog shit. Like we we've been through all this stuff. We've been through hell with collapses within inside this industry and we've come back. So that that's not the worry here. The worry is me looking at and zooming out and and and having people say, you know what? We're going to be the crypto capital of the world. Well, how does that happen exactly? You you can't pass a you cannot pass a bill for discussion. Like hear me out. Republicans and Democrats could not pass a bill to where they could discuss the bill. This is how bad it is. This is this is not normal. When you can't take a this is not passing a bill into law. This is just passing it into another chamber so you can talk about it. You have Elizabeth Warren who has no idea what crypto is and she's out there preaching and advocating and saying, do not my colleagues, my my fellow colleagues, please do not pass this. Because of Trump. See, that's what it comes down to. The biggest issue here is the Democrats outlined everything that they wanted and they got it. 95% of the things that they that they asked to go ahead and amend on this goddamn Clarity bill, they got it. But why didn't they pass it for discussion? Because I want to make that a key point here. Why didn't they pass it to the next level for discussion? Because of Trump. Because Trump they cannot allow Trump to get a victory. They cannot allow Trump under his presidency, under his administration for the Clarity Act to pass because that means victory for Trump because in the future, and I think the Democrats understand this too. And there are some Democrats that did vote for this to pass through. They understand that crypto is going to be a big thing. We're moving into the digital world. And and there's nothing you can stop. Like you can't stop this. This is a stupid argument. Because the entire world continues to move forward while we continue to stand still and fight. And the people that are fighting and representing us, they don't know anything about crypto. They have absolutely no idea what the fuck anything is. They're just voting based on, we don't like Trump. I have to say this also. I mean, I love Trump. No, did he. No, baby. I love Trump. I voted for Trump. Trump coming out with the Trump token and I I get I tip my cap to Charles Hoskinson. When we spoke about this, when we speak about this, I tip my cap to him. The biggest thing, the biggest failure here was Trump coming out with a token. That's look, this is a free market, so anybody can do whatever they want. But Trump as the president coming out with a token allowed the Democrats to have this to have a talking point. Because if Trump never comes out with a token, then they have no talking point. They have nothing that they can go ahead and talk about. And the people and the people would see it. Like even people who dislike Trump would see like, yo, what what is happening here? Why can't you just why can't you take a bill and just even pass it for discussion? Let's break it down for those who come uh that are coming in. The Senate failed to advance clarity yesterday because it didn't it didn't reach the required 60 votes. Uh, you can't get 60 votes just for a just to discuss. Just for a procedural vote. So describing the legislation as permanently dead would go too far. It's not, you know what? Then at the end of the day, the bill is still there. I I'm really upset. Like I'm sitting here. I'm more upset. Crypto will go on and crypto and and and I heard a lot of people talking about, oh my God, what does this mean for crypto? It means nothing. Crypto will survive. Crypto will continue to thrive and grow and there's nothing there's nothing to be worried about. We will have the bull run. We will have an amazing bull run. And look, the SEC and the CFTC, they plan on making the rules. And and some say that them making the rules will be better than whatever the clarity has in it. The Clarity Act. So like I I'm fine with that. But that's two years. Next administration comes in, new senators and new House representatives come in and things change. You know, if if if Vance doesn't win, if Rubio doesn't win and a Democrat comes in, let's say it's AOC. I'm just throwing names out there. Let's say it's a Democrat that comes and takes over the Oval Office. They're bringing in their own people and they're going to rewrite the script there. Do you know how many jobs we're going to lose because we don't pass the Clarity Act? Private sector jobs will be lost by not passing the Clarity Act. This is what I mean. We we are too busy playing around with people's lives, with the American people's lives. Here you have an industry, a thriving industry. This is a thriving industry. I think the CEO of Coinbase, Brian Armstrong said something cool that I that I caught. It was, we're not going to what was it? uninvent ourselves through this bill. And I agree with him. We we can't take something we can't we can't we can't go ahead and take 10 steps back with crypto just to go and please people who don't understand crypto. So while the whole world is moving forward, we stand here still. And we watch. And we wait. And we wait. For our representatives, the people we elected into office to do something. But again, like I said, for the next two years, you have this you have a pro SEC, you have a pro CFTC that will make the rules. They will give us clarity, but that's two years. I guess it's enough time for us. Bull runs coming. They make the rules. Obviously, they make it pro crypto for us to be able to operate in this space, knowing how to operate in this space. But then, you know, I I got excited because you have the Genius Act. I thought we could have had the the Clarity Act. And then I thought we could have had like a crypto tax Act. Okay, so we could have had like three things move in to really allow us to understand what the fuck is happening and how to operate. But we you got to get about the crypto tax Act. that that's a pipe dream right now. With given that the state of how our representatives have acted here with the Clarity Act, can't can't even couldn't even goddamn it, y'all couldn't even pass it for discussion. I've said that like 19 times right now. It is just mind-boggling. You couldn't pass it for a you want to discuss things. You want change. You know what's crazy? Democrats, you you are asking for changes. You got the changes. You've asked for more changes. So why don't you go ahead and push the bill forward and have the discussion with your counterparts and make something happen. No, you don't want this bill to pass. Like I said, you don't want it to pass for many reasons, but one reason that you do not want this thing to pass is you do not want to give Trump a victory. Trump came out and said, you know what? I agree. You know, a sitting president, family members should not be participating in like what else do you want? What else do you want? It's really mind-blowing. And and that's why I say, guys, at the end of the day, the midterms are coming. And I speak to the Democrats. And this message is for Democrats. This message is for for Republicans and independents and whatever other fucking party you're in. If you're in crypto, and there is there is data out there that says there are over 50 million people in the United States of America that own crypto. Let's say if it's even 20 million. Let's even let's let's let's drive that number down. Even though all stats say 50 million, let's say 20 million people. 20 million people own crypto. Midterms are coming. We need to look at the roll call and see who voted no and vote them out. It's that it's that simple. You cannot have people who represent us not represent us. Like it is it's stupid. We are one most of you guys are one issue voters. The only reason you voted for Trump, a lot of you guys, the only reason you voted for Trump is because of crypto. It's because you knew Trump was coming and he was going to get rid of scary Gary, get rid of this whole system that was anti-crypto, and he did that. For let's call it for what it is. Trump Trump has made America pro crypto. Now people will joke and say, well, Trump is the only one who's benefited from crypto. You know what? You could have benefited as well if you were paying attention and you weren't fucking around and dicking around this entire time, okay, fighting on spaces, fighting on Clubhouse, fighting and trolling on platforms and you don't even get paid for that stuff. You could have won too. Okay? Yeah, Trump won big. He has a brand and people who have platforms, obviously, are going to have a better chance of winning. Okay? If if you want to win big, then fucking make a platform, grow a brand, do something. Stop complaining, stop being lazy. You have the same opportunity as everybody fucking else. If you want to win, you can win. The opportunity is there for anybody. Okay? I know a lot of people that are not in the Oval Office, not related to Donald J Trump, and guess what? They won big last cycle and last cycle was dog shit. There's a lot of excuses that are made. It was time to look in a mirror and say, why am I not winning? Maybe it's time to look in the mirror and ask yourself, why am I not winning? And maybe just maybe you'll get that answer. You're not winning because you suck. You lack focus, you lack determination, you lack any sort of motivation. You're not delusional enough. You don't want it bad enough, okay? I know that because I know who is here. You know, when we were talking about this whole movement situation, we had the first day, oh my God, we had like thousands of people. Oh my God, I'm a part of this. And today, they're hibernating. Social experiment always works. Taking your time and being patient and watching people as they say one thing and do another thing, it is a beautiful thing. You get to weed out who's real and who's not. And that is plain and simple. But to focus on clarity here, look, for me, I'm going to be 100 on here. Like I don't care either way. The the pro about passing clarity is that you will have an injection of money. And I'm talking about trillions of dollars will pour into the space, not into your shitcoin, but it will pour into the space. You need regulation from this standpoint. Not for mainstream, okay? Like we I don't give a shit about it. I know you guys don't care about it. Nobody nobody in crypto cares about it. We know how to operate, okay? We know how to behave like adults. It's our money. We could do whatever we want with our money. You know what's funny? Elizabeth Warren talking about, oh my God, crypto and the Clarity Act will put families and millions of people into danger. Well, let's talk about casinos. Why don't you guys so adamant about casinos? When you got people, young people walking in there, okay, with their life savings and betting at a blackjack table or craps. You guys aren't so worried about that. You're not worried when a 21-year-old walks into a casino and and takes all their money and loses it. You're not worried about the 36-year-old or 40-year-old that walks into a casino and loses life savings and goes bankrupt. You're not worried. You know why? Because you get the city and the state and and the you're getting paid taxes on it. And that's not what I mean like, you want to talk about gambling? You want to talk about people putting themselves in harm's way? Well, then let's talk about casinos. Let's talk you you cannot crypto you guys are putting crypto in the wrong fucking category. You want to talk about gambling? Let's talk about casinos. Why isn't Senator Warren starting an anti-casino fucking army and a campaign against casinos? You know why? Because again, I'm going to repeat it. The government, the state, they earn taxes from you going in and playing. And that's bottom line. Why aren't we so adamant about alcohol? I mean, a 21-year-old can walk in and buy a bottle of fucking vodka, drink, jump in a car and destroy their lives. Why why why aren't we so adamant about that?

[Part 2 of 3] [David] [00:00] I think those are like I can name a bunch of stuff that I think is more dangerous than crypto. [David] [00:08] I can legitimately name a lot more things that are absolutely more, more, way more dangerous. How about the OTB? [David] [00:16] You have people losing their life savings going and betting on horses. [David] [00:26] But guess what? When you bet on a horse, [David] [00:30] the government receives a check from that. They get you people get taxed, they get you get it, you get where I'm going, right? [David] [00:40] Mega Ball, Power Ball. [David] [00:44] Scratch off tickets. [David] [00:47] You can walk in there, lose your ass. [David] [00:50] A dollar and a dream. That's okay. You know why? The state [David] [00:55] and the federal government, they make money. [David] [01:02] Here's crypto. A once and a once in a generation type of movement, industry. [David] [01:14] And we're doing the same thing that we did in the dotcom era. We're doing everything to you remember the internet popped off, the regulations trying I don't know what the fuck you were trying to do. [David] [01:25] And now the same thing with crypto, but this is the difference. Crypto is unstoppable. [David] [01:32] So if the United States don't move, guess what? Every country is already moving. I'm not saying the globe to move, they're already moving. [David] [01:41] Dubai is like, come to Dubai, come live here. Zero zero cap gains, zero taxes, zero everything. Come build. [David] [01:52] What is the incentive for innovators to stay here rather than go to Dubai? People have already moved to Dubai. [David] [02:01] There's no incentive. There is zero. [David] [02:07] Absolute zero incentive. [David] [02:12] All there is is is constantly we have it's gotten so bad. It is gotten so bad in Congress. [David] [02:22] That we we all as Americans need to sit back and take a look at what's fucking happening. [David] [02:28] Like it is bad. [David] [02:30] When when when we can't pass a bill forward for discussion, it is bad. [David] [02:39] This is not normal. We have elected people to make our lives better, yet they don't. [David] [02:48] They can't pass a bill. [David] [02:56] We'll be right back after this commercial break. We'll talk more about these subjects. [David] [03:00] What first got you excited about blockchains? Think about it. Oh, wait. [David] [03:10] I bet it wasn't multi-million dollar hacks, exposed data, or finding somewhere safe to store your seed phrase. Was it? [David] [03:17] Maybe it was the idea of decentralizing a broken financial system. [David] [03:24] Maybe it was imagining a world where people own their own data and get to sharing the value it creates. [David] [03:34] Or maybe it was the promise of a fundamentally better way of connecting, communicating, and transacting. The next phase of the internet that empowers us instead of exploiting us. [David] [03:45] So why hasn't it happened yet? Why are we still living with the same broken system that blockchains promised to fix? It's because blockchains can't keep a secret. Enabling open transparent systems was only the first half of the challenge. For blockchains to really change the world, they also have to be able to protect our sensitive data when it matters. [David] [04:05] And that's why we built Midnight, to bring down the final barrier to mass adoption and unlock the full potential of the decentralized web. [David] [04:13] Let's build the internet we deserve. Together. [David] [04:20] Ladies and gentlemen, we all know this in crypto, ownership matters. That's why Cake Wallet. Cake Wallet gives you full control of your digital assets all in one easy to use application. You can store Bitcoin, Litecoin, Zcash, Monero, and many more with just one secure backup. Swap between coins in seconds. No copying addresses, no complicated steps, and even includes Bitcoin Lightning for faster payments. And with Cake Wallet built in, you can use crypto in real life through debit cards or gift cards. Simple, secure, self-custody. Download Cake Wallet and take control of your crypto. [David] [05:02] This is Houston. T-minus one minute until full data blackout. All eyes are on you. [David] [05:16] Breaking news, there's an astronaut conducting an emergency repair on a global communication satellite that could go dark at any moment. We have a second angle on this. [David] [05:27] Is that guy on FOMO? [David] [05:28] Oh, he's just like me for real. [David] [05:30] He's crazy. [David] [05:31] Yeah, let's get back to it everybody. [David] [05:46] Breaking news, there's an astronaut conducting an emergency repair on a global communication satellite that could go dark at any moment. [David] [05:54] Opportunity cost is simply this. Every position you take is a position you choose over something else. [David] [06:08] This just in, according to the astronaut's FOMO account, highest in the room, the satellite has been restored. [David] [06:16] Yes. [David] [06:19] For now, the crisis appears to be over. [David] [06:33] Satellites up and running. Positions looking good too. [David] [06:47] There we go. United States of America representing. [David] [06:49] Socialism does not work. Digital assets is it better to move money at the speed of light through people are greedy when they also try to acquire gold. I'm here providing electricity and that energy that is necessary. [David] [07:04] I'm the modern day Tony Stark. [David] [07:17] There we go. United States of America representing. [David] [07:20] Socialism does not work. Digital assets is it better to move money at the speed of light through people are greedy when they also try to acquire gold. I'm here providing electricity and that energy that is necessary. [David] [07:34] I'm the modern day Tony Stark. [David] [07:47] There we go. United States of America. [David] [07:50] Welcome back to the breakdown. I think we got our first caller. [David] [07:58] We have our first caller. Maybe we could talk crypto or the Clarity Act. Who's on the line? [Caller] [08:05] Good afternoon, Noah. How are you doing today, David? [David] [08:07] Noah, what's going on? I'm doing good. How are you doing? [Caller] [08:12] I'm doing fantastic. I'm actually at work. I try to pay attention a little bit here. I was able to short the market yesterday. What do you think's going to happen today? [David] [08:22] In terms of uh uh the Fed coming out whether they're coming out with a rate cut or not? [Caller] [08:29] Yeah, yeah. Yes, sir. [David] [08:31] I I I probably I hope we we leave the rates as is, but I you know, I'm looking at Polymarket. Polymarket has it somewhere in the 80s in terms of percent um that the Fed will go ahead and, you know, raise the rates by 25 basis points. Uh, the markets will probably react bearish to the news for a few days. But but then I think everything will settle down. So if I'm going one way or the other, I I I think we're we're going to get a a rate cut. [David] [09:03] But again, I mean, this this Fed chair keeps everything close to the chest. So it's not like the previous Fed chairs where you kind of knew where where everybody was going with this. But um 25 basis points, I can see it happening. [Caller] [09:17] Sure. [Caller] [09:22] Yeah. That's the word on the street. [David] [09:26] I I mean people are you know, good trade. [Caller] [09:27] I got one more tip for you. [David] [09:29] Go ahead. [Caller] [09:32] The tap name coin, T T A P. We've worked at this thing for about seven days. We've got all the geeters out and uh check out that green God God candle. [David] [09:48] All right. Today. I appreciate I appreciate the the shill live on the show. Appreciate you, brother. Thank you, Noah. [David] [10:00] Oh, boy. You got you got to love you got to love the free shills. You got to love people coming on and and and shilling their tokens. You know, I I thought you guys can call up 917-259-4417 and we can discuss crypto, obviously, and we could talk about the Clarity Act. Feel free to go ahead and chime in. Um, but yeah, I started off the show us yeah. I I was uh I'm a little bit frustrated. I'm not I'm not going to front. I'm a little bit frustrated that we are here. I'm frustrated at the fact that we could not pass a bill for discussion. Like we we couldn't vote for the bill to pass to have a discussion about the bill. That was weird. That that that that's what's mind-boggling. It's just you could not take a bill and move it forward for discussion. I think that that's the biggest like I can give a shit about the Clarity Act. I've said this before. I I don't I don't want the only thing or the only people that get clarity from this bill are are the banks and institutional players. Now, again, I'll go back to it. The only positive is that the influx of money that comes into the industry is a great thing for everybody. But ultimately, the bill is not what the bill was when they first introduced the bill. So the bill is like it's obviously dog shit. [David] [11:53] What the hell is going on? I'm getting blitzed. I'm getting blitzed out here. [David] [12:00] Don't read your text messages while you're live. Let's go now back to the phone lines. Again, you've tuned into the breakdown episode 785 sponsored by Midnight, Polymarket, Cake Wallet and FOMO. Uh, you're on you're live on air with me here. What's going on? [Caller] [12:23] What's happening, David? It's Rocky. How's it going? [David] [12:25] Rocky, what's going on? Good to hear from you. [Caller] [12:29] Yes, sir. It's always good to hear from you for sure. What do you think about Kate? [David] [12:35] What what do I feel like uh feel about what? [Caller] [12:40] Kate, C A T E. The coin that Trav always talking about. [David] [12:44] I I've gone into those spaces. A lot of people have asked me, hey, David, uh, you know, I see you in those spaces. I've gone in just to the reason I've gone into those spaces is to see number one, it's interesting. You have in a pre-bull market, you have 12 to 1300 people in a space that are actually there for for Kate and the real people that are there for Kate that are talking about the project. So I find that interesting. I you know, you got poor goat who is completely daily just, you know, working his ass off to go ahead and send this project. Um, I I listen, if they continue on this path, if if that community continues to grow and the holder count continues to grow and the people just continue to not look at the chart, but they they're there for the right reasons and they're there for a cause, then it'll win out. Again, it's we're still in a pre-bull. We're not in a bull market. We're still in the bear market until we flip it on the charts. There's bullish sentiment, but when we talk about bull market, we're not there yet. [Caller] [13:57] All right. What do you think about Solana? Where do you think it's going to go in the future? [David] [14:01] I I think Solana hit $600, $700. [David] [14:05] I I am so bullish on Solana. [David] [14:08] 100% bullish. [David] [14:10] Like You think Pepe's going to get any more movement or like Dogecoin or anything? Or do you think like those kind of memes are done and we'll get like a new wave of memes? [David] [14:21] I I don't think the OG memes are done. A lot of people said that Dogecoin was done and Doge many times and many cycles that they said Dogecoin was done. And Dogecoin proved otherwise. Shiba Inu proved otherwise. Pepe will prove otherwise. I think the real OG memes will will run along with these new memes that do come out. I I think at some point though, everybody's going to have to sit back and say like, I am tired of chasing dog shit. And and I want to like if you're talking about the meme economy, I I want to go back to the real memes. Like I want to go back and feel like everybody you know, you know what's funny, Rocky? Everybody talks about 2021 for those that did not participate in 2021. They're like, what was it like? What was it like to be a part of something in 2021? Well, if you want that, then stop chasing because what it was like was people actually believed in one or two or three assets and they held them strong, diamond-handed those things. And there was a community that was built out and everybody was having a good old time. Now, there are no communities. Maybe a few out there, but there really aren't any communities. Everybody's fucking chasing the next dog shit. We had we have things that are coming. We have now lost sight of everything. I we ran out of memes. People are now meming insects. This is how bad it is. [Caller] [15:51] Here's an important one for you. With the Clarity Act coming out, do you honestly think that we'll ever have a coin like the Pepe like the Pepe coin was, like how it came up in a bull like a bearish cycle and all the communities got behind it. Do you think with the Clarity Act coming out that will that happen? Like basically let the poor get rich again, like like they did with that coin or do you think that'll be done? [David] [16:15] I I think that we are we will have a Pepe. There the next Pepe is out there. We don't know what it is. It's kind of one of those things like the next Pepe's out there. We don't know what it is. But once we get behind it, [Caller] [16:29] Okay. [David] [16:30] the whole industry will will once again point the middle fingers at the institutions and the and whoever. Because those people aren't coming here to go ahead and be our friends. [Caller] [16:41] Yeah, because I know in the past you always said that like the stock market people and the people that are passing these laws are like, you know, they're way ahead of us already. They already know what's going on. So I was just wondering your opinion on that if you thought that with them being already know what's going on, they're not going to let a coin get out there that makes the poor people rich again. [David] [16:59] There's more of us than them. [Caller] [17:00] The ability to make them. [David] [17:02] We we we saw what happened. We saw exactly what happened when we all came together, Wall Street Bets 2021, and we destroyed we destroyed Wall Street. And we could do that again. It's all about people finally coming together and saying, you know what? We want to win. I'm tired of chasing. I'm tired of being told what to get into. I'm tired of these stupid metas. Somebody lead us. When we finally group together as a as one cohesive working unit, we will win again. Okay? It won't be the first time, but we will win bigger than we won when Wall Street Bets and Roaring Kitty, deep fucking value came out. We will win bigger than we won last time. It's just all honestly, the only thing we're waiting for here, and I'm speaking to the entire crypto industry, is for us to rally together. Okay? We don't got to like each other, but we can rally together and send this motherfucker. [Caller] [18:05] Yep, that sounds great. So you heard it here first, folks, if we get them $5,000 dividend checks, we all need to rally together, pick a coin, go into it and just mess the market all up. [David] [18:16] Let's go. Rocky, I appreciate you. You've been following me for a long time. [Caller] [18:20] And have a good one, David. [David] [18:22] Uh, I hope everything's well. Hope you're doing well. Hope everything's good, man. [Caller] [18:27] Oh, man, speaking of that, it's 88 degrees in my house right now. My compressor went out and I'm waiting on maintenance to come fix it. The maintenance guy dropped the compressor he was bringing to our house on his leg, cut his leg open, had to go and get eight stitches. So now he can't come till tomorrow. So I have to sit here and endure 88 degree 88, 89 degree weather. It's brutal, man. [David] [18:51] Man, Rocky, I I I hope you get that situation fixed, man. That that is brutal. I've had that before where my my AC went out and I was dying and I was doing the show. So I I I I know it's unbearable. [Caller] [19:04] Oh, wow. [David] [19:06] It's unbearable. Uh, but I appreciate you. Thank you so much for always watching the show. [Caller] [19:15] Yes, sir. All right, have a good. [David] [19:20] That was Rocky. Shout out to Rocky. Uh, again, we'll take in calls today because I want to talk about crypto, I want to talk about the Clarity Act. Um, you're live on the air on the breakdown with Dave Gox, what's going on? [Caller] [19:33] Um, hello. [David] [19:34] Hello. [Caller] [19:37] Why are you waving your hands around for me? [David] [19:42] What? [Caller] [19:45] What? [David] [19:47] This is what happens when you have people who are mentally ill that want to call up onto the show. Waving your hands for me. [David] [20:00] This ain't comedy hour. [David] [20:05] This ain't comedy hour. And let's go back to the discussion with Rocky. Rocky, you know, asking some asking questions that are good questions. At the end of the day, we win, we win by rallying together. I don't know how many times I got to say this. [David] [20:27] I really don't know how many times I have to say that in order for us to go ahead and get the victory, we got to rally. [David] [20:37] You imagine if if the House and Senate is held by the Republican Party and Trump actually sends out a $5,000 dividend check to every single American. Do you know what would happen? [David] [20:53] Do you understand? [David] [20:57] Do you understand the insanity? It would be wild. It would be absolutely fucking wild. [David] [21:05] So, yeah, 100%. Uh I am my biggest thing has always been Oh my, this bro, I am not I'm not answering whoever this motherfucker is. So, uh y'all you can keep calling. You can enjoy the show. Um, moving on. [David] [21:25] Moving on to the Fed and uh actually, let's talk about the SEC and the CFTC move forward. Uh Senate Banking uh Chairman Tim Scott is now calling for the SEC and the CFTC to establish clearer rules while Congress continues its work. [David] [21:44] This is his stated next step, not proof that Congress is no longer needed. So Scott, Tim Scott is out there. Shout out to Senator Tim Scott because he's done a lot of work to try to pass pro-crypto bills. He's he's really I I got to tip my cap to him. Let me give him a round of applause. He's done a lot to try to be to try to get things done for crypto. 100%. So Tim Scott says, who is the Senate he's a part of the Senate Banking, oh well, he's the chairman of the Senate Banking Committee. Um, he's calling for the SEC and the CFTC to establish clearer rules while Congress continues its work. And they have. And they have. They absolutely have now moved to where there have been comments from the SEC and the CFTC where they are going to work to establish rules, clarity. Give us the clarity that they've been trying to pass in Congress. So shout out to I got to I got to say shout out to them. [David] [22:50] By the way, I will be on the street today, I believe at 4:00 p.m. to discuss uh to discuss what happens with with the Fed's uh with the FOMC uh meeting today. Hold on, I just got to check this. Okay. Okay, 4:00. Okay, so at 4:00. 4:00 p.m. Eastern Standard Time, I will be on the street uh discussing um or giving my thoughts on whether or not, you know, we get a rate hike or what not, I'll give my thoughts on it. [David] [23:26] Um, the Fed. So we talk about the Fed. What are they the rates? The rates. 2:00 p.m. Eastern Standard Time or excuse me, at 2:30 p.m. Eastern Standard Time, we will know because during that press conference, we will know if they hike rates or not. We will know from Kevin, okay, the Fed chair, whether or not the rates go up or not. Okay? [David] [23:51] Morning's report shows markets heavily expect the markets are heavily expecting a quarter point increase with the existing target at 3.5 to 3.75% that would take it to 3.75 to 4%. A quarter point is 0.25 for those who don't understand math, percentage points, okay? [David] [24:21] Why could they raise it? August core consumer prices rose by 0.3% month over month, above the 0.2% people expected. [David] [24:34] The strength uh or the or the argument, I should say, that inflation wasn't cooling quickly enough uh to some people was valid. So again, is it is it cool to raise rates? I I would love them to not raise rates, but I guess like Landy says, there's enough room to go ahead and raise rates. [David] [24:58] Landy, by the way, he's traveling, he can't join us. I promise you, me and him are cool. And I'll be right back after this commercial break sponsored by Midnight, Cake Wallet and FOMO. [David] [25:10] What first got you excited about blockchains? Think about it. Oh, wait. [David] [25:20] I bet it wasn't multi-million dollar hacks, exposed data, or finding somewhere safe to store your seed phrase. Was it? [David] [25:27] Maybe it was the idea of decentralizing a broken financial system. [David] [25:34] Maybe it was imagining a world where people own their own data and get to sharing the value it creates. [David] [25:44] Or maybe it was the promise of a fundamentally better way of connecting, communicating, and transacting. The next phase of the internet that empowers us instead of exploiting us. [David] [25:54] So why hasn't it happened yet? Why are we still living with the same broken system that blockchains promised to fix? It's because blockchains can't keep a secret. Enabling open transparent systems was only the first half of the challenge. For blockchains to really change the world, they also have to be able to protect our sensitive data when it matters. [David] [26:15] And that's why we built Midnight, to bring down the final barrier to mass adoption and unlock the full potential of the decentralized web. [David] [26:23] Let's build the internet we deserve. Together. [David] [26:28] Ladies and gentlemen, we all know this in crypto, ownership matters. That's why Cake Wallet. Cake Wallet gives you full control of your digital assets all in one easy to use application. You can store Bitcoin, Litecoin, Zcash, Monero, and many more with just one secure backup. Swap between coins in seconds. No copying addresses, no complicated steps, and even includes Bitcoin Lightning for faster payments. And with Cake Wallet built in, you can use crypto in real life through debit cards or gift cards. Simple, secure, self-custody. Download Cake Wallet and take control of your crypto. [David] [27:12] This is Houston. T-minus one minute until full data blackout. All eyes are on you. [David] [27:26] Breaking news, there's an astronaut conducting an emergency repair on a global communication satellite that could go dark at any moment. We have a second angle on this. [David] [27:37] Is that guy on FOMO? [David] [27:38] Oh, he's just like me for real. [David] [27:40] He's crazy. [David] [27:40] Yeah, let's get back to it everybody. [David] [27:56] Breaking news, there's an astronaut conducting an emergency repair on a global communication satellite that could go dark at any moment. [David] [28:04] Opportunity cost is simply this. Every position you take is a position you choose over something else. [David] [28:18] This just in, according to the astronaut's FOMO account, highest in the room, the satellite has been restored. [David] [28:26] Yes. [David] [28:29] For now, the crisis appears to be over. [David] [28:43] Satellites up and running. Positions looking good too. [David] [28:58] There we go. United States of America representing. [David] [29:02] Socialism does not work. Digital assets is it better to move money at the speed of light through people are greedy when they also try to acquire gold. I'm here providing electricity and that energy that is necessary. [David] [29:16] I'm the modern day Tony Stark. [David] [29:24] Welcome back to the show. Midnight the sponsor. Also Polymarket, the official prediction market sponsor of the breakdown, Cake Wallet and FOMO. Shout out to everybody who sponsors the show. Appreciate it. Also, you can [David] [29:47] Guy, we already got your number. So like you calling up here, it's not going to work. How's it the how's it dude? Here I'm having serious discussions with the general public. We're talking about the Clarity Act, we're talking about Fed you know, rate hike possible at 2:30 p.m. today. Could go ahead and drive the market insane. But again, we're talking about some serious subjects. Somebody calls up to the show and says, I'm waving my hands or they want me to wave their my hands at them. Like what what what what is what is wrong with you? You need help. You need therapy. Okay? Instead of this is what I'm talking about. Like instead of calling up and saying, hey, man, like I just I am I've done horrible in this market. Like, can you give me some tips? How how can I do better? Nope. I'm going to call up and ask you to wave your hands at me. What what is what is happening? What what is fucking happening? By the way, I just want to let everybody know before the show, I was taking my vitamins. And um, I hate soft soft gel shit, bro. I hate it. So I was taking like, I was taking vitamin C. And that shit got stuck in my throat. Ah, man. No diddy, bro. No diddy. But it did. I thought I was dying. I I honestly thought I was dying. So I I I fucking got a bottle of water, man. I started drinking that shit like nobody's business, man. I was going ham on that water, bro. I really I thought I thought it was over. I saw the light. Except that it's sunny outside, so I I I got probably confused with the with the light light, you know what I'm talking about the light. Um, again, at 4:00 p.m. Eastern Standard Time, I will be live on the street today. Uh, talking with with Jackson about um, the outcome of today's meeting at 2:30 p.m. Eastern Standard Time, the FOMC meeting where we will know whether the rates stay the same or if we will have a hike. I have a feeling that the rates are going to go up. The market is saying that the rates are going up. And they're it's reacting that way. So I'm I'm thinking that we're going to get a 0.25 or 25 basis point jump here. Um, taking the rate to from 3.75 to 4. I think that's what's going to happen. [David] [32:41] I I mean like, hey, call me up and let's let's talk about it. And I'm answering here questions. And by the way, uh before I get into that, we are now on Apple, on Apple Podcast. We are now live on Spotify. So Spotify Podcast, Amazon, and also I Heart Radio. Two of the three we've talked to. We'll have more stuff on that in the next coming months. Uh, but you can go ahead and play this show while you're driving somewhere and listen to me talk about the latest within the crypto markets, AI, politics, etc, etc. You can hear Landy when Landy decides to come back here. Landy breakdown the markets. And you can tune into me talking to some of the guests that come on to the show. Uh, to chop it up about the markets and whatever the subject is. Also, people can call in. Again, 917-259-4417. Again, 917-259-4417. You can call in and hopefully, if you're not a moron, I'll bring you on here and we can go ahead and chop it up. Okay? We can go ahead and chop it up. I think the podcast the the the show being on the on Apple, on Spotify, I think it helps a lot of people because a lot of people have been asking me, hey Dave, man, love your live show, but I can't catch it all the time. Uh, and I when I go to the gym, I'm not going to put on the live like so I get it. So now there's no excuses. You can go ahead and tune in and listen to the latest discussions that we've been having on the breakdown. [David] [34:31] Um, you know, you know what's funny? I was thinking about this also. You know, you would think you would think that AI would be getting slammed the same way that crypto's being slammed. You would think that AI would be getting destroyed the same way that digital assets are getting destroyed. It's not. It's funny. That AI really hasn't been touched. You want to talk about the data centers. You want to talk about a few things that happened, the squabbles between Anthropic CEO or Anthropic in general with the Trump administration, we could talk about that. But for the most part, AI has been given the green light. Hey, do what you got to go ahead and do. We're competing with China, we're competing with the entire world. We're moving forward. Okay? Let's make sure that we win the AI race. That that's all that you hear. And yes, Trump says that about the, you know, the digital asset space. He says that about crypto. But you have Congress people that also say that about AI. Let's push besides Bernie Sanders that doesn't want anything. Bernie Sanders doesn't want any innovation. Okay? Bernie Sanders is just out there every day asking you to go ahead and tax people to the point where we tax the wealthiest at 99%. And and and I don't even know what it By the way, what incentive does anybody have to be successful in America when you're trying to tax them at 60, 70, 80%? Like what's the incentive? What's the incentive for Jeff Bezos or Elon Musk and others to be here in America, innovating when you're trying to tax them at 95%? And then you're counting their money that they don't have. You count Elon Musk became the first trillionaire and these people were literally, this is how stupid they are. They're counting his money that he doesn't have. It's on paper. It's paper money, okay? He can't pull out a trillion dollars. And here we have we got Bernie Sanders, Senator Warren, all them coming out. Every single one of these people who fly on private jets. We caught you we did we not catch Senator Warren coming off of a goddamn G5? Yes, we did. Okay? We're talking about save the environment, all this bullshit. Yet we got the same people talking this rhetoric coming off of private jets. And that's the craziest part. You know, the the the fucking craziest part about all this is the people that don't want to go ahead and pass the Clarity Act that would give Americans opportunities to get jobs. Americans a chance to invest into certain projects and things to maybe better their lives. God forbid we give the American people the opportunity to win. God forbid. [David] [37:45] You see how I'm stuck on this subject today? I am stuck on it because it doesn't make sense. I was blown away. Like it was literally blown away when people there they are literally saying, we're not going to pass this bill for discussion. Mind-blowing. It's just absolutely mind-blowing. [David] [38:07] Vic from Cake Wallet said something. I got to I got to look this up. He said something that really hit. I agreed with him 100%. He said, let me look this up. Vic said, [David] [38:37] This is what he said. The Clarity Act does not passing the Clarity Act not passing should give you more of a reason to buy and hold Bitcoin and be in control of your own destiny and not rely on the government to act in your best interest. [David] [39:00] I'll read that again because I thought that was a I thought that was a really good a really good take by Vic. And Vic, the creator of Cake Wallet, the founder and creator of Cake Wallet, also Radar Chalis, not forget for Bitcoiners. Okay? For anybody who loves Bitcoin,

[Part 3 of 3] [David] [00:00] and once encrypted chats, okay, radar chat. Go ahead and check that out. The clarity act not passing should give you more of a reason to buy and hold Bitcoin and be in control of your own destiny and not rely on the government to act in your best interest. And I said this all the time. The Democrats want you to rely, to rely on them, on the government. That's the problem that we got into where too many Americans relied on the government. And that's not how it should be. We you should not rely on the government. You should be in control of your own destiny. 100% agree with Vic on that. How many times have you stated that on this show? Opportunity is there. The opportunity is there. It is there for you to go ahead and win and win so big. Win absolutely big. You know, before we go into other topics, it's 1:50 p.m. Eastern Standard Time. 2:30, we get to find out the Fed's decision whether or not rate goes up or it stays the same. It's definitely not going down. So we get to find out whether it stays uh as is or if it goes up by 25 basis points. I don't think it goes higher than that. That would be crazy. Um, this is a time for all you guys to take to take crypto seriously. There will be, I've said this how many times? Landy said this, I've said this. There will be a pullback. There will be one more pullback and it looks like it's happening right in front of our eyes. A pullback. And I don't believe we're going to $40,000 Bitcoin. I don't believe we're going to $45,000 Bitcoin. Okay? I don't believe that's going to happen. But I think we are going to pull back and there is going to be an opportunity for those who have liquidity that they have put away to the side on a red day, you will have an opportunity to win the fuck out. Take the opportunity instead of fighting. I keep on saying this. If you're surrounded, you are who you hang out with, right? Your mama used to tell you this. You are who you hang out with. You are who you surround yourself with. Bottom line. You are absolutely the person you surround yourself with. If you surround yourself with fucking dog shit, then you become dog shit, okay? You surround yourself with millionaires, you become a millionaire. Not because somebody gave you a million dollars, because you're surrounded by people that know how to or know what it takes to become a millionaire. You surround yourself with billionaires, you become a billionaire. That's just how it works. That's the energy. It's not because somebody gave you money, it's because you got knowledge, okay? You see how people work, you see how hard they work to get to that point of becoming a billionaire, a millionaire, okay? You surround yourself with crackheads, you become a crackhead. It's that simple. You go after dog shit, you get dog shit in return. Same analogy you can use for crypto. You chase dog shit, you get dog shit in return. That's really it. That is what happens, okay? Bottom line. Surround yourselves right now before the bull run starts, surround yourself with people that know what the fuck they're talking about. That know what they're fucking doing. Okay? You might not like them. You don't have to like the person either. You don't have to like the people that you Right now when the bull run starts, you don't have to like anybody. But you can go ahead and you you all share a common goal and that is number one to make gains and two to escape the centralized system. So like it's time to jump in the same foxhole with your brother and sister and and you start working together, okay? And then if you don't want to go ahead and kick it with each other after the run is done, then it is what it is. Then it is what it is. I'm telling you right now, you have a hell of an opportunity. You have a absolutely a hell of an opportunity to win big. Bottom line. And if we can, if we can just, and I said this in the beginning of the program, if we can just come together and unite, I'm trying to build a foundation, but I'm just watching people with limp wrists and lettuce hands all around me. It's lettuce hands, limp wrists, people that don't hold their pee pee when they go pee, okay? Like, I know. I've seen it. I've watched it. I've got to watch it for two to three months now. People don't have conviction in anything. Maybe 1%. The rest don't. They say that they do. They say that they're about that life. You know what? A lot of these people contradict themselves. One minute they say they don't want all these tokens to be out here. Why do we have so many tokens? And then the next minute, they're talking about another token. Which one is it, player? Do you want to go ahead and bring back the the the culture that we had here where we looked at one thing and we believed in something, or do you continue to want to run around in this fucking rat race where it is absolute dog shit being sent out to you every single day? Which one do you want? You got to pick one. Do you even know what the word conviction means? Do you know what it is to go ahead and actually believe in something? When did you guys lose your belief in actually believing that a project could be successful? There are so many good people in this space. I've talked to so many people. I have so many people that follow the brand. I've talked to you individually on spaces or even on this show. I believe that you are good people. And that you want more. You want you you you want to go higher. You want to seize the opportunity that you have in front of you. Why aren't you trying harder? What's stopping you? Why do you keep watching these PNLs that come out every single day? You you know what happens? You guys get infatuated with these PNLs that come out on the timeline. On the timeline that shows you, oh, I got a million dollars. I I made a million dollars on FOMO. That's great. Congratulations. Somebody made a million dollars. You think it's easy? It's not. And you don't know how many times have I said this? Somebody might have a million dollar PNL, but they can only take out 400 grand, okay? There's not enough liquidity in the goddamn token that they're in to go ahead and pull money out. The saturation of tokens is real. Now, me and Toli had a conversation on X, if you guys watch, and I don't want to stop because we are in a decentralized space. I don't want to stop the creation of tokens. Everybody should be able to create tokens and then people should put value into said token. People should deem what is valuable and what is not. So I don't want to go ahead and turn our space into a centralized fucking entity, okay? But there has to be a way that we can create incentivize our innovators who actually are out there building rather than just being deployers. There there is no there it is not complicated to deploy, okay? It is hard to build. When you're trying to build, especially in this type of environment, it is especially hard, especially when you have other platforms that don't believe in building, that don't believe in holding. They are telling people, new people as well, to go ahead and trade. They are literally telling people to trade. And that's the crazy part. Don't hold. Don't believe in anything. Just trade. And guess why they say that? Cuz they need people trading because they need people getting into their metas. [David] [09:22] We'll be right back after this commercial break. [Guest: Midnight] [09:25] What first got you excited about blockchains? Think about it. Oh, wait. I bet it wasn't multi-million dollar hacks, exposed data, or finding somewhere safe to store your seed phrase. Was it? Maybe it was the idea of decentralizing a broken financial system. Maybe it was imagining a world where people own their own data and get to sharing the value it creates. Or maybe it was the promise of a fundamentally better way of connecting, communicating, and transacting. The next phase of the internet that empowers us instead of exploiting us. So why hasn't it happened yet? Why are we still living with the same broken system that blockchains promised to fix? It's because blockchains can't keep a secret. Enabling open transparent systems was only the first half of the challenge. For blockchains to really change the world, they also have to be able to protect our sensitive data when it matters. And that's why we built Midnight to bring down the final barrier to mass adoption and unlock the full potential of the decentralized web. Let's build the internet we deserve. Together. [Guest: Cake Wallet] [10:45] Ladies and gentlemen, we all know this in crypto. Ownership matters. That's why Cake Wallet. Cake Wallet gives you full control of your digital assets, all in one easy to use application. You can store Bitcoin, Litecoin, Zcash, Monero, and many more with just one secure backup. Swap between coins in seconds. No copying addresses, no complicated steps. And even includes Bitcoin Lightning for faster payments. And with Cake Wallet built in, you can use crypto in real life through debit cards or gift cards. Simple, secure, self-custody. Download Cake Wallet and take control of your crypto. [Guest: Fomo] [11:25] This is Houston. T-minus one minute until full data blackout. All eyes are on you. Breaking news. There is an astronaut conducting an emergency repair on a global communication satellite that could go dark at any moment. We have a second angle on this. [Guest: Fomo] [11:50] Is that guy on FOMO? [Guest: Fomo] [11:52] Oh yeah, just like me for crazy trades. [Guest: Fomo] [11:54] Yeah, let's get back to it everybody. [Guest: Fomo] [12:10] Breaking news. There's an astronaut. [Guest: Fomo] [12:18] Opportunity cost. It's simply this. Every position you take is a position you choose over something else. [Guest: Fomo] [12:32] This just in. According to the astronaut, FOMO right now is highest in the room. The satellite has been restored. [Guest: Fomo] [12:40] Yes. For now, the crisis appears to be over. [Guest: Fomo] [12:57] Satellite's up and running. Positions look good too. [Guest: Fomo] [13:07] There we go. United States of America representing. [Guest: Fomo] [13:10] Social optimism does not work. [Guest: Fomo] [13:13] Digital assets is a better to move money at the speed of light. [Guest: Fomo] [13:16] People are greedy when they also try to acquire gold. [Guest: Fomo] [13:19] Came here providing electricity and that energy that is necessary. [Guest: Fomo] [13:24] I am the modern day Tony Stark. [Guest: Fomo] [13:30] I'm glad to be here, man. [David] [13:34] Welcome back. Breaking news, the Fed raises rates by 25 basis points. So there you go. Uh, I don't know applause. I don't know what to do here. Let's see what the market thinks about this. Let's go ahead and go right to the market. I'm going to go ahead and pin this in quickly. Um, where is where is the share button? Let's go ahead and look. But the rate has officially gone up. Knew that was coming. You just had a sense the entire market kind of knew it was coming too. Um, so there you go. You got um, you got to see a red besides um, besides Zcash. You got things really turning red. So, as usual, you you will see the first few days after the announcement, you'll see the markets kind of kind of be shaky here. But Landy has said this also that there is room there's absolute room here for a rate hike. So again, the Fed chair probably and the Fed in general, they they probably feel like inflation might be rising a bit and and they need to cool it down or it hasn't cooled down. So we are here. We are absolutely here and the crypto market obviously has been affected by it. As you can see here, all red. All red right now. It's been a red day. Uh, people have already expected this. Uh, but now Ethereum's down 2.2%. You got uh, XRP is down 10%. XRP is absolutely down 10% today. Uh, Bitcoin 1.7%. We got Monero down 4.2%. We got Ada down 5.7%. Link is down 6%. BNB down 1.4%. Dogecoin down 4%. XLM down 10%. So, for the people, here's the here's the bright side. For the people who have, for the people who have liquidity on the sidelines, you're not tripping. You're not tripping about this. You're looking at this as holy shit, I might have another chance to go ahead and buy in. But again, also at the same time, I feel like 25 basis points was priced in the entire time. The 25 basis points 100% has been priced in the entire time. I'm trying to find this thing here, man. It's been priced in. So let me let me check. I want to check the markets and see what's like really. Shout out to Polymarket. I mean, Polymarket, let's go to Polymarket real quick. They got it right. Again, Polymarket's people sleep on Polymarket, but they consistently they're very accurate. They are absolutely accurate. They had yesterday if you tuned in, they had it at 88%. Obviously, it's at 100 now. But if you look here, they had it at they had it right here. It was like right here. 87, I'll say I thought it was 88, but it was around here. And then boom. 25 basis point increase in the rate. Again, all priced in. And to me, because I I if it wasn't priced in, I think we would have gone down harder than we did. You know, I I believe we would have gone hard down harder than we did. You know, this could also be bullish. I'm thinking about it. This can also be very bullish. It's crazy that I say that with a rate hike, but it could be bullish. It could be bullish. Ave is down 10%. Pump is up 3%. Pump is up 3%. It's crazy, man. It's crazy. Yes, sir. Got to connect here. Of course, my laptop goes out on me. Of course, it goes out on me. So, just so you guys know, the Fed delivers its first rate hike since 2023. It was unanimous. It was a 12 to zero vote. And the Federal Reserve expects one more 25 basis points rate hike this year. So that we're not done yet. We have another rate hike apparently coming from the Fed. That's what they expect. The Fed chair approved its first interest rate hike in more than three years. Hold on, one second. I'm just reading the Goxian newsroom right now. The the the Fed approved its first rate hike in more than three years and indicated another to come as part of an effort aimed to combating inflation brought on by spiraling oil prices and other factors. So, here we are. Here we are. And you know what? I I don't know. I don't know how Trump feels about this. And we're expecting one more hike. One more rate hike. And shout out to Polymarket. Again, Polymarket for for a while had it at 25 basis points. It was in the in the 50s and 60s and 80s as we were leading up to this moment. Um, and they nailed it. So shout out to Polymarket. Polymarket is the official prediction market sponsor of the breakdown. That is um, that is crazy. I you know what? I I don't know. Yeah, inflation's real. You have to stop inflation somehow. You hike up rates. It's going to lead to people not spending. I I I I really want to hear what Trump has to say. Cuz this is Trump's guy. Trump went ahead and put Kevin in. So, I'm wondering what Trump is going to say about about the rates. And a second hike. Second hike is not is not what I expected to hear. But now, talking about a second hike. A second hike. Wow. Absolutely crazy. Anyway, I'll be on the street at 4:00 p.m. Eastern Standard Time to go ahead and talk about this, to have a conversation about now what I think. Listen, I I really I'm I'm kind of like sitting here because I'm I didn't expect a second uh a potential second rate hike this year. So you got one right now, 25 basis points. And now you're going to potentially have another one by the end of the year. That's crazy. That to me is crazy. That means that that that means that, you know, inflation is they they probably feel like inflation's about to go to go to all-time highs. I don't know. This this war I this is why I keep saying the war got to end. The war got to end. That's it. We got to leave. We got to it is what it is. We we took out their we took out their nukes or or their ability to create a nuclear weapon in Iran. We got the fuck we got to leave. Cuz now with rate hikes, what happens? It's it's people people are going to get starved and that's what they attempted to do. They attempted to do this last time. So here's the plan. This is how I this is how you eliminate this fucking problem. I mean, this is not going to be solved overnight either, but you got to get the fuck out of there. That's it. We got to get out of Iran. Done. We got to get out. We got to get out of Iran. We did everything that we needed to do there, okay? We're done. We leave. Take the W and L. Let let people debate whether it was a win or loss. To me, it was a win from the standpoint that Iran can't go ahead and develop nuclear weapons for at least a few years until they can build back their infrastructure. Their leadership has been demolished. Leave. Because midterms are around the corner. Okay? And now every single Democrat is going to run with, look, they're raising rates. You can't pay your bills. You can't do this, that and a third. This is exactly what is going to be talked about during the midterms. It's all about perception. Bottom line. That's what it's all about. So, get out. It's not as bad. The inflation is definitely is not as bad as what we had on the Biden. Biden and and I almost feel bad about when I almost feel bad when I talk about Biden because Biden had no clue that he was even in office. You know what's funny? Inflation was off the hook under Biden and they cut rates. Here, inflation is down compared to where Biden had us. And we're raising rates. But I understand, man. Anyway. This is something to talk about tomorrow. This is this is I'm going to outline everything about what I think. But at the end we got to get the fuck out of Iran. That's it. We're done. End this shit. Done. The operation's done. Who gives a shit how it goes into the goddamn history books? Done. We need to focus on us now. We got midterms. I'm telling you the messaging is going to be, look what's happening. Gas prices are up because gas prices are up. Uh, diesel prices are up because diesel prices are up. Okay? Californians are paying $6 per gallon, okay? For gas. You have all these things. People are going to look at that. Now you're going to have to you know what? Products are going to go up because of how they get delivered because they need energy and energy's high right now. We need to get the fuck out of Iran. Let them open up the fucking the stray, okay? Fucking get out of there. You know, sometimes we got sometimes in a sense you got to take I I don't want to say that we lost in Iran, but sometimes you just got to say, you know what? This ain't working out. We're out because it becomes a forever war like goddamn fucking Afghanistan. We got to be out. That's it. We won in Venezuela. We won in a lot of places. We got to be out, okay? This is what I talked about where Trump came into office. He had a lot of victories. He was just on fire, steamrolling. Everything was going in the right direction and Iran hit. That was the fucked up part. It's Iran. Everything was going fucking great. Iran. Iran into a problem. That's that's what it is. The problem was that if Iran has a nuclear weapon, you're fucked. So yes, I agree with the fact that we made sure that they cannot build a nuclear weapon because it would be horrific for the entire world. But holy shit, where the impact here, we're having an impact here and we need to start looking over here. Here is where we have to look at. And I'm a Republican and I'm not panicking. I'm not a panicking, anything like that. But this again, we're going to lose the midterms. We're going to lose the midterms because if I'm a Democrat, that's how I'm presenting it. Look, guys, Trump came into office and look what we have here. He promised us he would not go to war. He went to war. I I'm I'm speaking I'm a Republican, but I'm telling you how the Democrats are going to speak. They're going to say that Trump has dragged us into a war. We're in wars. Gas price they're going to inflation they're going to hit it from every Do you understand when they say these things, even though inflation is lower, gas prices are lower, all the lower under Trump. All these things are lower. They're still high to where people can't afford certain things. So they are going to absolutely feel it. People that are voting in the midterms, they're going to feel this. And they're going to say, hey, you know what? Maybe it's time to vote for somebody from the DSA. Maybe it's time for us to bring in new people that represent us. And then we're going to completely have a stalemate. Like we are going to completely have a stalemate. Every single fucking thing that is attempt We can't even pass bills now. Can you imagine the House and Senate is held by the Republican Party and we can't even pass bills now? We have a hard time. Do you imagine when the Democrats get into office? We ain't passing anything. All they're going to be doing is trying to impeach Trump. We'll have government shutdowns. We'll be doing nothing for two years. For the next two years, nothing is going to be done. And people are going to say, oh, Dave, you're panicking. I'm not. It's just it's it's just that Congress should be working for the American people and that is not going to happen. You're not going to see that. Anyway. I want to give a shout out to everybody for tuning in to the breakdown today, okay? Episode 785 sponsored by Midnight, sponsored by Polymarket, sponsored by Cake Wallet and also FOMO. Shout out to everybody who tunes in every single day into the show. Also, we are now officially on Apple Podcast, on Spotify, I Heart Radio and also Amazon Music amongst other streaming platforms. So if you guys missed the show, if you guys can't tune into the live shows, if you guys want to rock out at the gym and listen to the latest takes from the breakdown, the latest guests that come on to the breakdown, you can go to Apple Podcast, Spotify and turn that shit on while you're working out. Okay? You can go ahead and turn it on and listen to the latest while you're working out. Well, a lot of you guys don't work out. While you guys are doing your thing. Whatever you guys are doing, you can go ahead and listen in and hopefully you get some value out of it. I'll be back tomorrow, same time, same place, 12:00 p.m. to 2:00 p.m. Eastern Standard Time. 4:00 p.m. today, I will be on the street. I'll be on the street and we will be talking about the hike, the 25 basis points hike that came a few minutes ago. Um, and apparently, uh, they're looking to go ahead and hike another 25 by the end of the year. So, we'll see what happens. Anyway, thank you very much for tuning in and see you tomorrow.