Cryptocurrency for Beginners: with Crypto Casey

Fed Calls Tether Stability Risk (ETH Upgrade Soon!) - Last Week Crypto

June 27, 2021 Crypto Casey Season 2021 Episode 26
Cryptocurrency for Beginners: with Crypto Casey
Fed Calls Tether Stability Risk (ETH Upgrade Soon!) - Last Week Crypto
Show Notes Transcript Chapter Markers

This is another episode of a weekly cryptocurrency news series called Last Week Crypto.

We cover the latest global news stories affecting the cryptocurrency markets June 20th through the 26th of 2021.


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This week we will discuss the current state of the economy, ethereum’s big upgrade scheduled for next month, and how though stablecoins are what will drive massive global adoption of cryptocurrencies, it can also vastly threaten mass global adoption of cryptocurrencies.


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Brutal week for crypto, and I expect more brutality going forward, in not just crypto, but pretty much everywhere.

Hello, I’m Crypto Casey, and welcome to another episode of Last Week Crypto.

Every Sunday, we review the performance of the largest cryptocurrencies, top gainers, as well as the latest global news stories affecting the crypto markets this past week.

This week we will discuss the current state of the economy, ethereum’s big upgrade scheduled for next month, and how though stablecoins are what will drive massive global adoption of cryptocurrencies, it can also vastly threaten mass global adoption of cryptocurrencies.

To check out the links to all of the articles we discuss, go to CryptoCasey.com/Last-Week-Crypto.

This week’s episode is brought to you by Crypto.com, an exchange with over 100 different cryptocurrencies and over 20 different fiat currencies.

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If you use the link below to sign up for Crypto.com, you will receive $25 worth of cryptocurrency for free when you use the referral code “CryptoCasey,” all while supporting the channel.

Also, every Wednesday I conduct a weekly AMA or an “Ask Me Anything” at Instagram.com/CryptoCasey.

So use the link to my one and only official Instagram account listed in the description area to follow me and ask me anything you want, every Wednesday.

Awesome. It’s time for Last Week Crypto

1 - Looking at the top cryptocurrencies by market cap, bitcoin down 12%, ETH down 20%

Binance Coin down 19.3%, and Cardano down 13.2%.

2 - Looking at the top gainers this week:

Quant, the top gainer again this week, up 12.4%, and Shiba Inu up 1.4% after Elon Musk shares or jests, who really knows at this point, in a tweet: 3 - My Shiba Inu will be named Floki.

Hmm, amusing. You know what else is amusing, this week 4 - Hedge Funds Launch Efforts to Boost their Image as DC Scrutiny Mounts.

5 - Hedge funds have long stayed out of the political fray. Now, as lawmakers and regulators increasingly put the firms in their sights, the secretive industry is reversing course.

6 - The main hedge fund lobbying group -- which represents 135 funds including Citadel, Elliott Management Corp. and Renaissance Technologies -- 

is launching a multi-million dollar campaign Thursday to better explain to Washington what its members actually do.

7 - Dubbed “Investing in Opportunity,” the effort will feature online advertisements, videos and a new website that highlights the private partnerships’ work for charitable foundations and other non-profits in every U.S. state and congressional district.

Translation: Hedge Funds are launching a massive advertising campaign to proliferate propaganda about all their “charitable work” that they totally don’t engage in just for tax incentives or anything, in an effort to convince us that they aren’t the evil, greedy market manipulators that they 100% are.

Check this out: 8 - “The bury-your-head-in-the-sand approach doesn’t work today,” said Bryan Corbett, president of the Managed Funds Association trade group. 

“We haven’t done a great job demonstrating our impact beyond Wall Street, and through this campaign we’re looking to start telling this story in a sustained way.”

9 - The association plans to use data to help show that hedge funds are not just vehicles for rich people to make more money. Its research, for example, found that pensions, charitable foundations and endowments have almost $1.4 trillion invested with them.


10 - “Most people would be surprised to learn that it’s millions of American workers – like teachers and firefighters – who benefit from hedge fund investments,” said Corbett. “This often gets lost in the conversation about our industry.”

Very interesting. Can’t wait to start seeing the ads, stories, and narratives they bombard us with to prove how they are totally on the same team as the “little guys” like us, and not just helping the rich get richer through legalized financial foul play.

Alright, let’s touch on what the US government has been up to this week. 11 - Biden renews foreclosure ban one last time. Foreclosure, eviction protections to remain in place through the end of July.

12 - The actions are intended to “stabilize homeowners and support a return to a more stable housing market,” the White House said.

Is it helping to actually achieve that though?

13 - ‘The eviction moratorium is killing small landlords,’ says one, as the ban is extended another month.

14 - The majority of the nation’s landlords are individual investors. They own about 23 million units in 17 million properties, according to the U.S. Census. More than 6 million renter households are behind on rent.

The US housing market is absolutely insane right now. And since covid has rocked the world, a ton of investors turned their attention to acquiring property and houses to get out of cash and diversify their investments. 

This is preventing individuals from being able to compete in the housing market, and at the end of the day, increasing the gap between individuals owning property and big institutional investors owning property. 

And when the moratoria ends, and people can’t afford to pay their rent or their mortgages, there will be a massive amount of foreclosures and even more properties will be sucked up by big institutional investors, 

there will be a massive increase demand for places to rent, and will there be a lot of people that literally end up on the streets with no where to live over the next few months?

I don’t know, but that would be a major problem. Especially as we continue to experience increases in prices of people’s basic needs in addition to shelter, like food, used cars, gas, etcetera.

Scary. So I’m not sure what the US government is going to do to mitigate that impending catastrophe, but as if there couldn’t be more impending catastrophes they’re pontificating about, check this out:

15 - Yellen warns Congress of 'unthinkable' U.S. default risk without debt limit hike.

16 - U.S. Treasury Secretary Janet Yellen on Wednesday warned Congress that the United States risks a debt default and a new financial crisis as soon as the August recess if lawmakers fail to act quickly to suspend or raise the federal borrowing limit.

17 - Yellen said that to avoid uncertainty for financial markets, Congress should pass new debt limit legislation - allowing the Treasury to continue borrowing - before the latest suspension expires on July 31st.

18 - An unprecedented default on U.S. government debt obligations “would precipitate a financial crisis, it would threaten the jobs and savings of Americans at a time when we’re still recovering from the COVID pandemic,” Yellen said.

“I would plead with Congress to simply protect the full faith and credit of the United States by acting to raise or suspend the debt limit as soon as possible.”

Translation: we need more treasuries so we can make more *play 00:15 to 00:20 of this video: https://youtu.be/O1hCLBTD5RM* - Otherwise the government would just have to rely on tax income to pay obligations, which wouldn’t be enough to cover everything.

But let’s be honest 19 - Using critical thought, tell me why your money being worth less each year is required for an economy to function. 

Inflation is merely a theft perpetrated on most of society for control, and advancing technology is making that theft impossible to ignore.

Yeah, not good. Alright, let’s switch gears and talk crypto. Since China has banned bitcoin mining, it caused a chain reaction of people with mining operations having to liquidate some of their bitcoin to pay for the costs of moving their operations elsewhere, 

and with the massive sudden absence of miners, 20 - IS THE LARGEST DIFFICULTY ADJUSTMENT IN BITCOIN’S HISTORY INCOMING?

21 - At the time of writing, Bitcoin is expected to have a -20.8% difficulty adjustment, with 651 blocks to go. 

Listed below are the largest difficulty adjustments in Bitcoin's history, making the impending difficulty adjustment the largest downward adjustment in history if blocks continue to be mined at the same pace.

22 - Mine revenues have decreased by 64.5% from the all-time high of $67,434,000 per day (seven-day moving average) made on May 10. The pressure this has placed on the remaining miners on the network has led to further downside in the bitcoin price.

Another factor at play with the mass migration of miners from the East is that many of these firms and operations kept nearly all of their reserves and liquid cash balances in bitcoin, and as a result, these entities have had to sell to cover the high cost of moving operations.

So that was one of many reasons why the crypto market has been red. And July will be an extremely telling month for how crypto will continue to perform the rest of the year as a major upgrade to the Ethereum network launches, that will cause the supply of ETH to decrease, 

as well as cause the gas fees to transact on ethereum to decrease. Just this week the: 23 - Ethereum London upgrade launches on testnet as 100K staked in a day on Eth2.

The Ethereum community is anxiously awaiting the mainnet launch of EIP-1559.

24 - Ethereum’s London update will prepare the network’s evolution to what is called Ethereum 2.0 — a full transition from the proof-of-work (POW) consensus model to proof of stake (POS). 

The London hard fork will introduce new Ethereum Improvement Proposals (EIPs), which are set to make the blockchain more competitively priced as well as user-friendly.

Awesome. Super bullish for eth and its ecosystem going forward, provided the upgrade stays on schedule and is successfully implemented. 

Super bearish for crypto at large though is just this week 25 - US Fed Official Calls Tether a ‘Challenge’ to Financial Stability

26 - A senior U.S. Federal Reserve official has called Tether’s USDT stablecoin a risk to the stability of the financial system.

In a slide presentation Friday, Eric Rosengren, president of the Federal Reserve Bank of Boston, listed Tether among the “financial stability challenges” the U.S. central bank is watching.

27 - “I do think we need to think more broadly about what could disrupt short term credit markets over time, and certainly stablecoins are one element,” Rosengren said. 

“I do worry that the stablecoin market that is currently, pretty much unregulated as it grows and becomes a more important sector of our economy, that we need to take seriously what happens when people run from these types of instruments very quickly.”

Yes, so essentially crypto is in a very precarious position because of tether because of how large its market cap is in relation to the entire crypto space, how much its lent out, rehypothecated, how little regulation there is about its underlying assets, how tether is created and distributed into the crypto ecosystem, 

all of these things amongst others we will break down in a separate video dedicated to this topic, basically have tether as the bottom row of a card house. A card house being the entire crypto ecosystem.

Now, if we think about the 2008 financial crisis when Lehman brothers went under, the government was able to step in and prevent a systemic collapse of the entire global financial system with the bail out. 

In crypto with show tether logo: tether being pretty much a centralized private company that prints tether as recklessly as the fed, there is nothing in place that would prevent a complete systemic collapse of crypto. 

Is tether potentially the greatest ponzi scheme of all time that has become so entrenched in, not only crypto, but the entire global financial system due to large amounts of it on private companies like exchanges’ balance sheets that it could be one of the first dominos to fall that starts the next global financial crisis?

Is crypto a card house on top of a card house? The underlying card house being the US dollar, US treasuries, and the reverse repo market?

We will find out in a video this week. So stay tuned.

And as the value of crypto increases or decreases in these uncertain times, make sure you are transferring your crypto off of exchanges to hold safely in a cold storage hardware wallet.

You can scroll down to the description area below to access the correct and official sites of my recommended hardware wallets.

BC Vault is my personal favorite, another option is the Ledger nano backup pack. So Scroll down to check them out.

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So if you’re interested in learning more about BlockFi, you can get up to a $250 bitcoin bonus when you use the link in the description area to sign up, all while supporting the channel.

Protecting your ability to generate income so you can buy more crypto is another important thing to consider. So if you’d like to learn more about the advanced technical concepts of blockchain and become a developer in the space, check out Ivan on Tech’s academy.

If you use the link below, you can access the academy at a discounted price, so scroll down, and check it out.

Awesome.

Well that was Last Week Crypto, with me Crypto Casey.

If you enjoyed the episode, please make sure to like this video and subscribe to my channel for more crypto content.

To check out the links to all of the articles we discussed, go to CryptoCasey.com/Last-Week-Crypto.

So how do you think the price of ether will respond when the London hardfork is implemented?

Is the eviction moratorium affecting you at all?

What do you think about the federal reserve setting their sights on crypto?

Let me know in the comments below.

Be safe out there.

Introduction
Crypto.com Exchange
Wednesday Ask Me Anything
Market Movements
Hedge Funds Launch Effort to Boost Image
Biden renews foreclosure ban one last time
Eviction moratorium is killing small landlords
Yellen warns of 'unthinkable' U.S. default risk
Money being worth less each year...
Largest Bitcoin Difficulty Adjustment in History
Ethereum London Upgrade
US Fed Official Calls Tether a ‘Challenge’ to Stability
Get a Hardware Wallet ASAP!
Earn Interest with BlockFi
Protect Your Ability to Generate Income
Outro