Why Your Dollar Buys Less Than It Used To | Coinpicks Live

What's going on? What's going on? Come one, come all. To the free crypto training course. I'm joking, but I'm not. We're gonna have a great day today. We're gonna be going over two different lessons. These lessons are a little bit longer, so we can only get two done today. And the other lesson that we're gonna be going over is gonna be really cool. That's why I want to spend a whole day on one specific lesson. But if you guys are new here, my name is Alex. I've been doing crypto for eight years, running this company for about five and a half, and we've trained people on crypto excellence. And now AI is Part of the crypto excellence. So we're like training people on the cross section between crypto and AI, which is the most lucrative industry on the face of the planet. There is nothing better and bigger than that cross section there. So the future of finance is here. We're at the bottom of the bull market. I believe in the next two years there's going to be a lot of people that make a lot of money. And what we're doing now is setting the the financial foundation or the knowledge and understanding of crypto on a deep level. So when things get crazy. Crazy, and you have to hold the coin through a loss, or you don't understand how to send a transaction, or literally any problem that could possibly happen. We're addressing it now while it's quiet because in the future it's going to be crazy when the bull market comes. You're going to. I always say this analogy: You're going to be able to put a bandana on your eyes, pick any coin, and you'll probably double or triple it. It's going to be that chaotic. And you might think that's cool and all until your overexcitement leads you not sell. Not treating it in a possible disciplined way, not treating it rightly, and losing all of your money, which about 85% of the market does every single cycle. So don't just think you're part of the 15% and you're special. What you need to do is offset that by putting in the work and doing the diligence of understanding crypto so you can profit on this bull cycle in a serious, meaningful way. Now, if you don't take what I'm saying serious, Let me help you understand why this is serious. Number 1, we have never had a financial shift like this in the past 100 years, not even close. Number 2, if you want to break generational poverty off your family, you got to do something about it. Number 3, the school never taught you money at all, yet you spend 1/3 of your entire existence working for a paycheck. Number 4, inflation and the appreciation of stocks are destroying your purchasing power in comparison to what you're currently making, And you wonder why you're in poverty nonstop and everybody around you is also in poverty. Number 5, how are you going to get an inheritance for your children's children? How are you going to set yourself up for retirement? Why do I keep hearing the excuse from all the people above 65 that they can't retire and they're forced to work till they're 75 and enslave their lives away? All of these are on the line due to the lack of diligence and discipline and understanding finance. And so what we're going to do is we're going to take a permanent stake, put it in the ground, and destroy that immediately in this live stream, and specifically every other live stream after, from 3 to 4 PM Eastern Standard Time. So if you can kindly pull out your phone right now, go to your calendar and put a little notification thing— and I'm not going to explain how to do it, you should know how to do it because you scroll on social media and waste 2 hours of your life every single day, so you know how to use the phone— click the freaking button and turn on the notification to show up every day At 3 to 4 PM Eastern Standard Time. And if you're having a hard time because of time zone, well, that's right now. Right now, tomorrow. Whatever time it is in your time zone right now, tomorrow, click the freaking button and show up. And I'll give you a pro tip. We'll put some like extra credit on top of it. Share this with your friend group so you can stop hanging around people that don't have money and they're broke and bringing you down with them. How about you bring them up with you? Share with your friend group. Pull out your phone, take the link, like the livestream, and share it with 3 people right now as we speak and run this livestream up for the algorithm because we're doing a lot of good for the world and we're breaking a lot of poverty. So share this, like the video. I don't care what platform you're on— X, Instagram, YouTube, wherever you like to destroy your time and consume random stuff on the internet. At least this hour is occupied for a high-leverage hour to where you actually make your money back. So do me that favor. I give you free content, free course, free everything. You share this video and we could just go back and forth like that. So we're going to get started and I want to quick make a quick announcement before we get started. It's going to be a really good lesson today. It's one of the biggest announcements we've done in a long time. A lot of people are not believing it. Even my own team didn't believe it at first. It's actually really absurd and it might rub people the wrong way. We are giving the autonomous trader— I'm talking about the full version, uncompromised, not the lite version where I get you to upsell and buy something. Don't worry, I have other things you can buy, but I'm talking about the full version of the Autonomous Trader. And then what we're gonna do is we're gonna do our ver— we're gonna, we're gonna give you that and run it on the website ourselves and get profitable and show you right in front of your face that it is profitable. But this is AI, it's different from algorithmic training, so the testing methodologies are different. But the full version right now is on coinpicks.app. Go to coinpicks.app, C-O-I-N-P-I-C-K-S.app, and we're going to have somebody put the link in the actual chat box. And then what I'm also going to do is I'm going to tell you to sign up for the actual consultation call. So as you go through that form, you can do it by yourself if you want to be the guy, the loner in the corner that doesn't want to take help from nobody, or you can get on a call with one of our people. And we have a very easy process. All you have to do is click a button. They'll tell you when to call them. And when you show up, there's a little box. Check off the marketing so we can contact you and we can show you that there's real humans in crypto that are not AI trying to help you for real. You should get in this room. Get in this room as aggressively as you possibly can because there's prosperity all around us. Get out of your room and get in this room. So click the button. For marketing and services, select the time, and then I'll have somebody reach out to you to help you with your personal situation so we can advance the kingdom of God. As you guys know, I'm Christian, and break financial poverty off of your life. That's it for the announcements. So let's get into the actual training. Let me see if we have anything in the chat box. Run it up! How many viewers we got, Victor? How many viewers we got, Victor? Victor. It says it's must. Where are you at? Okay, why is it muffled? You good? Is audio good? Yeah, I don't think it's muffled. It could be like a small muffle, but it's fine. And YouTube as well sounds loud enough for me. Okay, you're just talking about the audio. Volume is good on my end. All right, guys, we're good to go. I think we're locked in. All right, so pull out your app, CoinPix.app. This is 100% free. Again, CoinPix.app. Is 100% free. In coinpax.app, there's going to be a learning tab here. You click the learning tab, and the section that we are on is why gold and silver became money. And so what we did is we built a foundation of understanding of money from where it first started and why it's important and the properties of money. There's different properties of money. They're like stats of a basketball player or a football guy, and we compare and contrast them. And then we found that digital money essentially took all the greatest properties of money and and forced it into one algorithm. And so what we're doing now is we're reestablishing that understanding by going back into history and seeing why money's working and why money didn't. Again, I'm teaching the core foundational principles of money. The love of money is the root of all evil. That doesn't mean that money is not efficient and good for society because we proved that it was in the last recordings, which was the last livestream. But by the way, there is recordings to the previous stuff if you missed it. Don't worry, it's in the course. We did that too. So why gold and silver became money. Imagine a trader in a fictional town. She has a good year and wants to save some of what she earns. So this is the property of saving. Grain can spoil, animals need food and care. She wants to keep something that will last and that other people will take as payment. Gold and silver could help, but using them as money took more than having the right metal. people also needed ways to check it and agree on its value, right? And so what it means by that is a checking to see its purity, to see if it's really what they say it is, because people would finesse it. And you'll see as we go through the historical lesson that people would chip off pieces of gold and devalue the currency manually, right? Can't you keep it and use it later? Supposedly the trader puts a piece of gold away for the next year. Gold resists the damage that air and moisture can cause to many metals, It can stay in good shape while her grain might spoil. This ability to last is called durability. So this is a property of money. How durable is the money? How durable is the money, right? So in the context, to give you a quick example, Bitcoin is very durable. The only way you could really stop Bitcoin is from like a quantum attack or turning off the entirety of the internet. But in both of those scenarios of a quantum attack and turning off the entirety of the internet, It would destroy everything else as well. So these ultimatum scenarios doesn't take away from the validity of Bitcoin. So Bitcoin is extremely durable. Actually, the durability of Bitcoin, and we'll go into this further in the course when it gets really crazy, but the durability of Bitcoin is in proportion to the value of the entire network, which is worth probably, I think, trillions of dollars. So the only way to really stop Bitcoin is if you spend trillions of dollars to stop it, and we'll explain what that means, called a 50% attack. But it's extremely durable unless you turn off the internet, which nobody will, because if you turn off the internet, everybody would perish. If people in another town accept her gold, she can trade with them too. A buyer— so basically he's talking about if people in another town accept it, right? A buyer still needs to check what the piece contains. Both people must agree to the trade. A yellow surface alone cannot prove that the coin is real gold. Or that somebody will accept it. 2 coins, 2 amounts of gold. Our trader is offered 2 coins. Each weigh 10 grams. A coin is 90% gold. That means that 9 of the 10 grams are actual gold. Coin B is 50% gold, so if it holds 5 grams, the coins weigh the same, but they don't hold the same amount of gold, right? And this is the purity of the gold, and it's pretty straightforward. I think everybody understands that, right? So the purity of the gold is very important, and you'll see how that plays into understanding there's like a different metric in the crypto called liquidity. It's a similar concept. We'll go over that. But the purity, right? And there's a little mini app here that you guys could play with. If they wanted to trade 75% gold coin for another 75% gold coin, it should be an equal transaction. Yeah, both contain the same amount of gold, right? And you understand, I build it off of simple principles. These are simple things to understand in your mind. But as you gradually build on top of that and gets more complex, these simple principles become very complex. So understand. Now watch this. In Lydia, which is now called Turkey, people made early gold and silver coins. The coins came in different weights. They gave people set amounts they could recognize and combine. These different coin amounts were called denominations, like denominations of currencies. Denominations is a principle of money. There's all different types of denominations. There's the one that's stamped with Julius Caesar's face. There's the one that's stamped with this guy's face. There's all different types of denominations. A stamp can stand for a maker's promise about the coin's weight. So when you put Julius Caesar's face on a coin, it's basically Julius Caesar and his society confirming the validity of that coin, right? And purity. People have to trust the maker to keep that a standard. They still need to check that the coin was actually real. All right, so we have old gold and new gold. Now think about all the gold people already have. It sits in jewelry, bars, coins, and other forms. Because gold lasts, much of it can stay in use. The total amount already mined is called stock, right? Remember, we talked about this principle briefly before. Again, this whole lesson is talking about why gold and silver was used for many years. It's because of these principles, right? Mining brings— now listen, Because you'll understand the mining concept of crypto if you can understand this concept. Mining brings more gold out of the ground each year. This yearly addition is the flow from lesson 2. If the existing stock is large, one year's new gold may add only a small share. Now write this down if you guys want to, to get ahead. Gold, this is the flow, but in crypto they call it the issuance because in crypto they're not randomly finding new gold. In crypto, they're on purpose issuing a certain amount of Bitcoin that comes out. It's an issue, like a, like a, like a Federal Reserve that issues currency. It's a, it's the issuance. Opening a new mine takes time, resources, better tools, changing costs. And a chance to earn more can affect how gold gets mined, right? Suppose the trade— so for example, I'll give you a hypothetical. So if we have like a new mining equipment that's revolutionary and it's 100 times better than the previous mining equipment, what will likely happen to the price of gold is the price of gold would drop. Why? Because the new mining is going to probably produce 100 times more gold than before. And if we have 100 times more gold, that means the supply will increase. If the supply increases, that means it's more accessible. It destroys scarcity. If demand stays the same and scarcity decreases, then the value of the coin drops, or the value of the gold drops, right? So there's a lot, but like, you guys should be able to understand that, right? Suppose the trader melts an old necklace into a bar. She has changed its shape. She may offer that gold for sale to a new buyer, But she has not added any new gold to the world's stock. In the case of issuance in Bitcoin, or in the case of flow, that is actual new gold to the stock. So changing the hands or the shape of it is not new stock. Now, real quick, before we go into it, now we're on the subject. The thing about gold is we know we'll always find more. If we go interplanetary, there's likely more gold on other planets. The reason one of the properties of Bitcoin and why it's so advanced is that we know for a fact there's only 21 million in existence. So this is the only thing on the human planet that is the concept of finite in supply. I'll say it again, there's nothing in the natural world that is finite that we know of. There could be something, but we don't know. So that exists only in Bitcoin. It's a programmed scarcity. Very important to understand because it's a— that's why a lot of people say it's better than gold, because it is finite in scarcity, right? Existing gold and new gold. So we have necklace and bar. Mining is new gold, and you have to understand that difference. I think it's pretty straightforward, right? Now silver. So silver is very similar in properties, but the difference is that, um, and I would love— do you have a, do you have a mic for everybody else to answer No? Okay, it's not charged.

All right.

Yeah, so I'm trying to answer some questions, so I'll just hand her off. Okay, well, what's a good question, Victor?

Someone who asked, so the better or faster the miners are able to mine, the faster Bitcoin's value drops because of the new stock?

Yeah, so you think he's talking about gold? So yes, if they mine faster, the value of gold should drop in if demand stays the same. So if demand stays the same, if they mine a whole bunch of more gold, like let's say, let's say the new flow is like 3%— I think last time I checked it's actually like 3 to 5% a year— if it jumps up to 20%, then the value of gold would drop if demand stays the same, which demand will likely stay the same. This is correct.

But what was it talking about? Bitcoin.

Oh, it's talking about Bitcoin. So the issuance cannot change. So for Bitcoin, it's programmed in The issuance is predetermined, and we know for a fact it will never change, ever. It cannot change. It's programmed in unless all of the miners get together and decide to change it, basically, is the only way it could change. But that's very difficult and has never happened before in the history of Bitcoin. Basically, it's very difficult. When we get into Bitcoin 101, we'll go over those mechanics. But yeah, for Bitcoin, it is a finite max supply. And the issuance— listen, it's a finite max supply. 21 million would never go past that. And the issuance is fixed. It will never change. And it changes only every roughly 4 years through the Bitcoin halving. There it is. That's all it is. It splits the issuance in half, not the new supply. New supply is not for Bitcoin because we already know that it's 21 million. If they all get together and collude, and they're like, hey, we're going to change the supply to 22 million, that would be an extra million of new supply, not issuance. Issuance is them issuing the supply that already existed. That's a completely different concept. If you have a crypto influencer, and they're saying the Bitcoin halving drops the inflation of Bitcoin, run. They don't know what they're talking about. And I said that for like a long time when I first got into crypto. It is not inflation. It is issuance. That is completely different. Inflation is adding to new supply. Issuance is issuing the current supply. That's different, massively different. And if they say that, they don't know crypto yet. And it's okay. Tell them to come to the free videos, if that makes sense. All right. So I have a question for here. Go ahead and raise your hand. I'll give you my mic. So I want you to try to answer this. Why So in this context, we're talking about gold and all this stuff. Why was silver ever used as a metal in history? Jesse, you can't answer. Why was silver ever used in history? What do you think it is? What's the benefits of silver? One sentence. All right, we got Jonathan here. Let's see what he got to say. Was silver a way to increase the value of gold because it's a different metal? I'll give it a 3 out of 10. 3 out of 10. That's a 3 out of 10. Anyone else got an answer? Okay, Jenny. Jenny's over here. Let's see what Jenny got.

I was gonna say because not everyone could afford gold, so they wanted to make something where I guess lower class or middle class people could purchase.

That's like, uh, I'll give that like a 6 out of 10. That's more accurate. Jesse, you want to try to answer? Come on.

Is it because there was not enough gold to spread value around the world, so they had to get something else?

Yeah, that we're getting closer. We're getting closer. It starts with a D. Who can answer it? It's a property of money. It starts with a D. Divisibility. So it's divisible because there's much more supply of silver in the world. And because it's so much less valuable, it has the same properties or very similar properties of gold, but it's way more divisible. You can pay for so much more stuff with gold— I mean, with silver— because it's just worth less. I don't know, I'm making it up, but let's say we have a $100,000 gold bar right here. $100,000 of silver would be fitting half this room. It would be massive. It would be massive. So since it's less valuable, you can break it up into small pieces, right? And that's why we see our coins, like silver coins, that's why they use that, right? In our example, the trader now wants to buy a small bag of flour. Her gold coins are worth far more than the bag. If the seller accepts the smaller silver coins at an agreed value, she can use those to pay. Silver was a major form of money in its own right. Greek cities used— in Corinth and Athens used silver coins. The practice spread around the Mediterranean. Different cities put their own designs on the coins. Mm-hmm. A silver coin can be weighed and checked for purity just like gold. So it has very similar properties to gold, but it's more divisible and transferable, right? You can definitely transfer more silver. People also needed coins in useful sizes that they could recognize and combine. They had to agree on which coin was worth and whether to accept it. Gold and silver both have long histories as money. They played different roles in different places and times. A coin's size and form mattered, so, so did the people using the rules set by in charge. Smaller silver coins can solve this trader's problem. That doesn't mean that the metal was always better than the other. They're just different properties. Does that make sense? Now watch this. This is like a really interesting story. I just put this into the website. So around 1200 to 1150 BC, Right. Let's leave our fictional town and look at real objects from the past. Long before people used coins, they paid with pieces of silver weighed on scales. In southern Levant, along the eastern Mediterranean, some people buried pieces dated around 1200 to 1150 BC. For these BC dates, a bigger number means an earlier year. Okay, straightforward. So tests of pieces of Beth Sheen, and I can't pronounce that, found silver mixed with cheap copper. Hmm. So what they did is they went back and they tested it, and they saw that they would mix it with copper. Some had much more silver near the surface than inside. A piece could look like good silver while holding far less than a buyer might expect. Reducing the precious metal in money is called debasement. Right? And they would— and then there's stories I remember when I first like got into this a long time ago, they would even chip off pieces of gold. So like they would get the gold and like just a chip would be like $50. So they'll chip it and then try to make it look the same and they'll start chipping it, right? Reducing the precious metal in money is called debasement. These finds are early physical evidence of it. They're not recorded of the first time anyone ever tried it. The researchers linked these changes to broken trade routes and shortages of silver. That matters. Trouble with trade could lead people to weaken the money, right? So like, why do people weaken the money? It's because like they're desperate in a lot of cases, right? The objects do not prove that weaker money causes a country to fall, right? So this is another story here. 406, uh, 405 BC, Athens turns to cheaper coins. Centuries later, Athens faced a money shortage during a long war in 406 to 405 BC. It issued emergency coins with copper core and silver on the, on the outside. And you'll see this trend, remember this trend, right? So like usually it's around war, but it could be like any catastrophe. You'll see the government force people to adopt the same currency, but they'll weaken the value. This is debasement. Right? The coins use less silver than sold silver pieces. We have more than the coin— we have more than the coins to help tell the story in this play. The frogs performed in 405. What is this? Hold on. New report: coins praising other goons. So whatever, we just move through here. Athens lost the war to Sparta in 404 BC and lost its empire. The city itself continued. The war had begun in 431 BC, long before the emergency coins. The order of those dates does not prove the debasement. The useful lesson is about the promise inside the payment. Gold and silver— I was trying to input a story, but long story short, you'll see a trend, and we're going to go through a lot of trends in this course, of people that literally just like countries debase the currency. And what they do is they offset the liability to the people. So what I mean by that is we're in war, we need to finance the war, we're going to lose the war. And so they're like, okay, they're going to conquer us, so we need to do something dramatic to where we can provide the necessary forces. There's, there's sometimes they'll go to the people and they'll do like a campaign rally, right, to purchase like notes that are redeemable after the war so you can invest in the war. But a lot of times what they'll do is they'll just, they'll debase the currency. They'll debase the currency so that everybody else's currency is valueless. Does that make sense? And we've seen historical Parts of that. All right. The trouble carrying metal. Our trader still needs a safe place to store their metal. A large payment may mean nothing— maybe, maybe moving heavy coins or bars, guarding them and checking their weight and purity. A very small payment may be hard if there's no coins in the right size. Sorry about that. What if she leaves her gold with someone who promises to give it back? She could carry a receipt instead. And this is where we're going to move on to the next section. If others agree to accept the receipt, she could pass it to a seller as payment. So what is that receipt? Who can answer? So in this example, I know we're kind of going all over the place, but in this example, right, if she leaves her gold because it's so big and someone who promises to give it back. So if I'm like, here, Carlos, here's a big bar of gold. He's going to promise me that he'll give it back. But instead, he's gonna hold the gold and give me a receipt instead. If others agree to accept that receipt, she could pass it to the seller as payment. The seller would then hold the claim to the stored gold. So this receipt is a claim on stored gold. Next, we'll see what changes when that promise travels from person to person. Who can explain what that is?

Is that like one of the first Banking systems?

Correct. That is, that is the banking system. So the banking system was basically like, yo, we got all these gold and silver coins and I don't want to travel with it, so I'm going to store it with this guy over here and he's going to give me a receipt to basically get that money back. Like, basically, if I bring him that receipt, I can get that money back. That's how it started. And then what they did is now that receipt started getting accepted as payment in places. Like a check? Yeah, it's like for like cash. That's the cash. That's what he did in the Bank of England. That was like one of the first. So we have a test here, guys. Go through the test on your own time. What time is it? 3:20. Yeah, go through the test on your own time. We have half an hour for the next section. But it does save if you guys have an account. It saves, and then you can refer to it later as you get better in stacking your knowledge with money. All right, any questions real quick before we go to the next section? We got a minute. Demand. Yeah, we historically went from rocks to beans and shekels. Yes, correct. There's, there's been all different types of money. If I'm not mistaken, pretty sure it's true, the word salary, it's originally, it's originally from, um, the word, uh, rice, I believe, because they used to use rice as a form of payment. And so if you look at— I remember doing research on this The word salary is actually derived from rice. So they used to— and the rice is obviously hard, like bundles of rice to trade is like extremely difficult. There's all different types of money. There's— people have tried to use money for many years. People have made different types of money all throughout history. It's a common thing. And whoever creates the money and controls the money, they control human labor. So I want everybody to kind of write this down and you understand, I'll prove it. Salt. Salt. It was salt, not rice. I'm sorry, it was salt. Yeah, the word salary comes from the salt, correct. So I was gonna say, I wanna prove this statement. So forget the Christian stuff. All the most powerful people in the world, the elite, are all after one thing. What is that one thing? It's more powerful than money itself. It starts with H. It's 2 words, starts with H. Don't say it, Victor. He watches too much of my content. It starts with H.

Human labor?

Yes, correct. I don't know how he knew that. He got it. The human labor. So human labor is more important than money because— I don't know where— that's the Holy Spirit or something like that. I don't know how he knew that, but human labor is basically like— you'll notice that human labor is the most sought-after thing because once you have all the money in the world, the next question is you're trying to buy back your time. That's all it is. You're just trying to buy back your time. And the best way you could do that is by getting another person to do the thing that you're going to do. So it's basically the concept of power, right? Every human, like, billionaire guy is all trying to get as much power as possible. Now there's 2 ways that you can get human labor. Who can tell me the 2 ways you can get human labor? Don't tell me. What do you got? Hold on. Wait, wait, wait, wait, wait.

Payment or slavery.

Yeah, I guess slavery would be one. Slavery would be one, but we got to go a little bit higher than that. So like slavery is technically a right answer, but it's not the fullness complete answer. Here, investor.

I would say one of them is influence.

Yes, she hit it on the head. So the Bible says that reputation is worth more than gold. So you can get somebody to do something you want by saying, hey Carlos, I'm gonna pay you $100 an hour to go clean my car. Or it could be his best friend and I could be like, hey, can you do me a favor, bro? I have a car, I need you to fix it for me. Can you clean it for me? And you can influence him to actually change. It's the same exact concept. So you'll see that they'll use those 2 and then further, we said slavery. Slavery is technically right, but you have to get the society to agree that slavery is real. which would take influence. So influence would get them to change policy for slavery to exist, and then it would be like buying— it's like a lower point of buying somebody's time, but like forcing them in a horrible way. Wow. So, um, yeah, so like I'm gonna prove to you in this course that pretty much every single economic value leads to one in one point, which is pretty much getting someone's agenda completed, which before that is human labor. That's basically the gist. It's a perception war. We are living in a perception war. Whose truth is the ultimate truth? And I'll prove that everybody's trying to instill their truth. That's pretty much the top, the tippy top of everything, if you understand what I'm saying. From gold— and I'll tell you the ultimate truth too at the end of this video. I'm gonna show you the ultimate truth. I'm just kidding. From gold to paper government. How many people we got in the live stream? It's kind of cool. I'm having fun. It's so good. Probably close to 200. Dun dun dun. All right, so from gold to paper government money. It's how paper claims became money, from early Chinese notes to London's banks and today's currencies. Carrying a large payment in metal coins could be heavy and risky in different places and times. People found ways with paper instead. The paper was easier to carry, but its value depended on the promise behind it. Did you— I know I can write on this board, right? I wonder if it'll stay. The promise. What is a promise? A guarantee. A promise is like a guarantee, but it's not guaranteed. So what is a promise? It's a deal. It's a deal. When I promise him something, I'm instilling a perception into his mind. Mm. It's a perception that you're, 'cause you don't have to fulfill the promise. You cannot fulfill the promise, so that's, the truth is you didn't fulfill the promise. The truth is you did or didn't fulfill the promise. But before that happens, it's a perception that you're gonna fulfill the promise. So this is just literally a, hey, can you accept my dollar? And then I'll give you your money back as a promise. Just, you know, just accept it. In like 5 years, you might or not, like you'll get it back. That's a promise. It's not actually real. First, follow the two real parts of history: early Chinese paper money and London's goldsmith banks. Then use a made-up banker's payment to see how a promise works before following the move towards modern banking money. So paper money came before London's banks. In China, merchants use paper receipts to avoid carrying large amount of coin. During the Song Dynasty, the government took over a system of issuing these notes and. 1020s. This was hundreds of years before London's goldsmith banks. Paper money did not begin elsewhere as a receipt for gold. Now move to London in the second half of the 1600s. Goldsmiths worked with precious metals and also kept customers' money safe. So what they mean by goldsmith is actually the original banks were started by people that were handling precious metals, right? Obviously, because we were just talking about metal was used as a form of currency for a very long period of time because of the properties that it has. They gave depositors written promises to repay them. People began to use those promises to actually make payments, so the money did not have to actually move each time. So it's very simple. I'm a goldsmith. I handle metal. I'll store it for you too. I can make the metal, polish it, whatever, whatever. I'm actually going to handle it and store it for you as well because I know how to store it better than you. But here's a promise. Here's a piece of paper. You can redeem that with me anytime you want. That's a promise. Then what happened is that person would like go to another person at the pub and be like, hey, you know the goldsmith? He gave me this piece of paper to redeem it. I want to pay for this drink. Here's the piece of paper. You could just redeem it yourself. That's how it started, right? The goldsmith also lent some of the deposit money. They were becoming bankers. They held money for customers, made payments, and made loans. This is where they got greedy. A promise to pay on demand was useful, but it depended on the banker being able to pay. Right? This is where they got— because you could have 100%, for example, if you are promising, I don't know, $100 million in gold, if you have $100 million gold in the physical safe, there's no way you can lose. You're 100%. You could redeem it at any time. You have the gold. But what they started doing is they started making loans and they didn't have all the gold in the vault, but the money was still out there. That's again another form of debasement. The Bank of— you know, in other religions they ban interest because of this. There's other religions that ban interest, and I'll explain what I mean by that. The Bank of England was founded in 1694. It began as a privately owned bank serving government, not as a government-owned bank. Hear me out. It's a perception arbitrage, and you'll see the Federal Reserve—it sounds like super official, right? It's not part of the government. It is a private company. What they do is they like the Bank of America is not part of the government, but it sounds like the Bank of America. Why do you think they did that? They did that to gain the perception trust. They want the people to think that it's literally America, but it's not. It's literally a private corporation. They have the same— they're trying to finesse the same authority of America. So they did that. The Bank of England is not actually— has nothing to do with the government. It accepted deposits and issued its own notes. A surviving note dated June 18th, 1697, it's like a historical account of it, promises 22 to its holder who can exchange it for the value in gold. These are different parts of a long history, not one invention copied elsewhere. The key change in London's story is simple. People could pass a trusted promise instead of carrying the metal itself. The coin stays in the vault. See how it can work. Return to our made-up baker. She leaves one gold coin in a trusted vault keeper. She gives a receipt. It promises that whoever holds the receipt can bring back and collect the coin. The miller trusts the keeper, so he accepts the receipt for flour. The banker has paid him without moving the gold. The miller can, can collect the coin later or pass the receipt To someone else who trusts the promise. The coin is an asset, something of value. The receipt is a claim, a right to ask somebody for what they promised. The paper works as a payment while people trust the promise. This small example explains the idea. It is not a record of one's historical banker. Now suppose 4 people, right, leave each coin and receive a receipt. Now suppose Now suppose 4 people each leave a coin and receive a receipt. The vault has 4 coins and owes 4 coins. The keeper lends 2 coins to a borrower. The 2 coins remain in the vault, and the borrower owes 2 more. All 4 receipt holders can ask for their coins today. That's like a— they call this a run on banks. And what I mean by that is, so for example, a made-up historical vault. There's 4 coins actually available. I think you could switch it to— Oh, it's right here. Oh, sorry. There you go. Lend out 2 coins. So he lended out 2 coins. Here, promise. 4. I'm sorry? Yeah, there should be 2 left. So essentially, I'll do my own, but basically if there's 4 coins and you lend out 2, There's still 4 receipts out in the public. Here's the 4 receipts, that's what I'm gonna say. So each of these 4 receipts are still out, but he only has 2, and what they're doing is, and this is why a lot of lending is banned, is if I lend out 2 coins to somebody else, I'm getting interest on the 2 coins without having to redeem it, it's free money, because it's not my money to begin with. So the 2 coins, there's 4 in there, right? There's 4 in there, 4 receipts. Lend out 2, 2 coins. So it's literally not my money that I'm lending out. Does that make sense? And the interest that I'm accruing is based off of a promise that's not actually even being fulfilled because there's only 2. If all 4 receipts came back to redeem, you couldn't even redeem it if you wanted to. It's a promise. So they're literally getting free money on a promise. Does that make sense? Yeah. And that's where greed comes into play. You have a question?

Yeah. So is that like the FDIC insured thing, like where it kind of tells you you're insured and then like, but they're lending out your money without you knowing? But then if like everybody goes at once to claim it, technically they might not have all of that.

Correct. So basically what she's saying is there's something called FDIC assurance because this is a massive problem in our current banking system. If everybody tried to withdraw their money, it would essentially not— like, you couldn't do it. So there's an insurance to pay off that if that happened, and this is called a run on banks. Now, the run on banks— write this down real quick, I'm gonna answer your question. The run on banks can only happen if what? Starts with F, ends with an R. Run on banks can only happen— you think run on banks happen because the bank don't have— there's only one— it's a perception. There's another. Fear. The run on banks don't happen because they don't have enough money in the deposits or anything. It's just simply a whole bunch of people getting scared, all going to the bank and trying to withdraw. Fear. Again, perception. How many times you got to say perception? We're talking about money, but we're talking about perception, right? Did that happen with— did that happen with FTX and Voyager? Correct. So FTX exchange, basically what happened is— all right, I'll explain it because I was there for it. So basically, FTX exchange, They were doing the same exchange practices. I was there right in the midst. I'm talking about the day that they started going at it. Like, I was right there on Twitter, right? So FTX Exchange was doing the same exact crypto practices as every crypto exchange, which is they were loaning out like crazy and doing crazy stuff, right? And so it's like a massive Ponzi where they inflated the debt like crazy between all of the exchanges. They're all doing the same thing, bro. Binance, all of them the same thing, right? Then basically they were offering 20% APY on— what's the coin name? There's a specific stablecoin. It's a USD stablecoin. It was from Luna, Terra Luna. It was TUSD or USDT or something like that. I forgot the name. But basically there was a stablecoin where they were offering 20% APY, annual percentage yield, which is unsustainable. It was a Ponzi scheme. But it was from the most legitimate exchanges that were offering it. So one of the guys that were providing liquidity to it, they're like, this Ponzi scheme's coming down. We're removing— they removed like billions of dollars from it. It wrecked FTX because FTX had a whole bunch of money in there. They got hit for billions of dollars and they would've been fine if nobody saw it. But the fact that it was so public and everybody saw it, everybody's like, oh snap, FTX is collapsing. They all went to FTX and started withdrawing all of their cash. And then to put— I'm not going to go into too much detail because I might be talking to him soon, but CZ goes on and puts a freaking campaign. You can go look it up for yourself. It was on the internet. Maybe he had a good reason for it, but he put a whole campaign on the internet literally saying that they are probably going to default. Like, and the timing was impeccable. It was like day one, money removed. Everybody in the crypto trenches knew. Nobody in the public knew. Right? Crypto removed. Then there was like these specific hits that nobody could really put the 2 pieces together. And then CZ came out of nowhere and he was like, yeah, they're probably going to go bankrupt. We're not doing business with them. That instilled fear into the market and then everybody's trying to withdraw their cash, which led to them to actually default. And then guess who bought the bottom? CZ. CZ and his conglomerate. There was other people too that got involved with that. Crazy. Yeah, so they wrecked— they perception arbitrage. So like for the day traders, and we'll go into this, but the day traders and the guys that are like freaking, I want to technical analysis the freaking coin on this, and I got the support and resistance, all these crazy— they don't mean nothing when you got a billionaire coming for your throat perception arbitraging you. This happened recently with AI. There was this big— I forgot the guy's name. But he was one of the smartest AI traders. He turned like a couple million into like $2 billion. It was all over news. And he was like just the hotshot guy. I got leverage. I'm an AI master. It was a dude actually from FTX. It was like one of the previous FTX employees. What was his name? Leopold Aschenbrenner. Yeah, Leopold Aschenbrenner or whatever the case is. And then what was the company that got him? Institutional awareness? No. Are you talking about— There was basically a banking company that put out an article Citadel. Citadel. If you look at where Citadel puts out an article from their PR company, not even their official bank, they own a PR company. They put out an article about how increasing of interest rate from the Federal Reserve is going to wreck the market. They literally put it and they instill fear into the market. The dude's overleveraged billion dollars drops, goes to the point of liquidation to where he's like, I'm about to lose every penny. Guess who buys the position? Citadel. So the people with the trader guy, oh, I don't need to know how to do social media. I don't need to understand the mechanics of virality, is like, bro, you just won't want to make money. Because the whole thing is perception arbitrage. The game is not being the smartest guy with the algorithm. The game is understanding the true game. To really understand what it is, it's perception arbitrage. I'm going to keep proving that. over and over again. And so why we— that's why we go that direction. That's why we're using narrative economics to assess coin values. We don't use anything else but narrative economics because it is the truth, right? So let's get back to the training. So all 4 people arrived today, right? So all 4 people is the concept we're extending. They're trying to redeem their coins, but there's a shortage. You can't redeem them because you loaned out 2. That's a liquidity problem. Too little money Ready when it's needed. Did you hear that? Right, bro. Liquidity problem. Isn't that sound familiar? I feel like there's a lot of people that watch my content and they hear me scream specific words. They don't understand it, and now they're understanding it. It's a liquidity problem, isn't it? Right, the liquidity word, right? We use the heck out of liquidity word. Liquidity problem. All right. Now ask a different question. Is everything the vault owns worth enough to cover everything it owes? This is called solvency. They're insolvent because you can't pay it back. A vault can own a good loan and still lack coins today. A shortage of ready cash does not by itself prove the vault cannot cover its debts. And we kind of went into bank loan. Yeah, we went into bank loan to understand it. Now, this is where it gets real. Okay, so you guys understand, we'll just really quickly give you a brief breakdown because I want to get into this. But a brief breakdown, you understand a bank loan. So the bank holds your funds, but they don't actually for real. What they do is they loan it out, and their business model is they get interest on your loan. So they can loan it out, for example, to a real estate deal, and that interest could be, I don't know, like 8% a year. So they're getting the 8% a year, but they risk nothing because the original loan was your deposit that you gave them for safekeeping in the first place. It's a riskless business decision. It's riskless, meaning that there's no risk involved, but they're getting 8% yield. So all they have to do is get as many people to trust them as possible with their bank deposits. That's their whole thing. Trust, I got it safe, safe, safe, safe. Bank of America, I'm part of America. Get them to trust as much as possible, and then all they do is just loan out 100% of it. You know, and we'll talk about this, it gets really crazy. They actually try as hard as they can to make themselves insolvent on purpose. Here's why. They do it on— they call it too big to fail. So on purpose, the bank loans out and accepts bank deposits on an absurd level. They'll offer deals, credit card deals, please come to us. And they'll loan out beyond their capacity purposely, knowing that if there's a bank run, they can't pay it back. Why? Purposefully. Purposefully. Like I'm talking about, it is their strategy to do it. Why? Who can answer? Jesse, you can answer if you can answer. Go ahead, Jesse.

Because if they don't, they will be beaten by competitors that are, and then they're going to go out of business.

Nope. Some— it's close, but nope, that's not the answer.

Because then maybe the Federal Reserve can bail them out and then print more money.

Correct. So the original purpose of the Federal Reserve is to be the lender of last resort. So when we have these big exact catastrophes, what happens is— and he's right, Jesse is right. So what happened is they have all these banks that are competing. They're all competing, right? So they're trying to get bigger than one another. And the biggest one has the most jobs, the most money. So if I go bankrupt with like $100 billion, it will drop the American economy. It would destroy millions of jobs, and it would be such a massive catastrophe that the Federal Reserve is like, no, that can't happen. Hey, take a whole bunch of money. We'll devalue the entire supply of money. Take this money and shut up and stop doing that. And so what they do is— it's literally a feature, not a bug. They do it on purpose. They do it. It's literally they're trying to get as big as they possibly can so that they can't lose, because if they lose, it would cause like massive devastation. So not only do they get this massive client base of new customers, not only do they get all the interest on all the loans that they're paying out, but also they almost have a guaranteed riskless investment. The Federal Reserve would just step in. That's what happened with FTX Exchange. So FTX Exchange led to a whole bunch of banks collapsing. And Silicon Valley Bank was because it was more Silicon Valley Bank had a lot of investment into FTX, and Silicon Valley Bank was significantly bigger. They were like the bank of of what is it called? Not Wall Street. What's the other one? Silicon Valley. I'm sorry. Wow. Silicon Valley Bank was banking a lot of the Silicon Valley projects, which is like the entire tech industry. So essentially, they were so big they actually got bailed out by the Federal Reserve. Now we have a specific video in the course that we took down. But there's a video in the course where I proved— I can't say definitively, but to a high percentage chance— that the $12 billion that was used to bail out Silicon Valley Bank went directly into Ethereum and was used to control the mechanism of Ethereum. I have so much proof on this. We have so much proof. I have the proof to the point where I showed it specifically with on-chain metrics. We came back 6 months later and he took it out of the metrics. They have video proof of everything. So what I'm saying is, hear me out. Big FTX exchange— this is probably not good for the internet— but big FTX exchange goes bankrupt. Silicon Valley Bank is a more legitimate bank. FTX is crypto scam stuff. Even though they were big, everybody would consider it crypto scam stuff. They get crucified. They get thrown on the cross and made a ridicule to the public. Silicon Valley Bank's perception gets saved Federal Reserve comes in, bails out Silicon Valley Bank, and the exact 48— it was like 48-hour window. It was like 48 to a week. I remember it was either 48 hours to a week. It somehow, in 48 hours to a week, the biggest purchase of Ethereum, like $12 billion. This is not normal. In one day hits on-chain. We see a massive purchase of Ethereum, and that same Ethereum gets injected into the mechanism that controls the entire Ethereum network. With voting power. If you control enough of Ethereum, you can determine the monetary policy on Ethereum. Who the heck did that? And so I'm telling you, these people with crypto, they're using— they're literally subsidizing and taxing the general public to increase their control on holding crypto. They're like, we need a whole bunch of Ethereum. We don't really have a good reason, or how do we get billions of dollars into Ethereum? And how do we do it? And you'll start to realize, as Warren Buffett says this, uh, people get rich in, in, um, blood, not in bull markets. They get rich when everybody's freaking out. It's like a natural law of like, like when you, when you suffer, like things— value gets produced. It's a biblical principle. And so like what happens is they on purpose hemorrhage the market down. Everybody gets caught with their, with They call it swimming naked. So when the tide goes low, you see who's swimming naked, and then they just freaking take over. It happens every time. It's rinse and repeat. You get rich in the bear market, not the bull market. They just destroy people's positions, take absurd advantage, and because of fear, they use the fear and they instill anything they want— monetary policy, $12 billion into crypto, Ethereum. They literally do what they want because everybody's freaking out and panicking. That is the financial system you live in. So as a strategy, and we'll go into it more— what time is it? As a strategy, do you want to offset for fear, or do you want to optimize for the bull run? Which one? Optimize for the bull run. Yes, but more offset fear. Because if you have— if you buy Bitcoin at the bottom, it's significantly easier than doing anything in the bull market. You're just buying Bitcoin at the bottom. So extreme fear, you have to train yourself in extreme fear and extreme pain to buy and get aggressive with buying and like OD on buying, which is what happened in the community. Do you remember? So in the community, right, the recent top, everybody's free. I sold, but then when we came down, it was crickets. I was the only one buying, and I wasn't the only one buying, I was aggressively buying, and then I was trying to tell people to aggressively buy. Nobody wanted to buy. So I always tell the concept, nobody can sell when I sell and nobody can buy when I buy. Not because you don't have the physical capabilities, you're just not ready for that. You're not. Does that make sense? And so that's why we build these specific— the strategy we build is very specific. It's for, it's, it's for the truth, but it's boring as heck and nobody wants to do it. All right, all right, this is actually very important. How the goal promise changed. We have like five minutes, right? Should we save this for tomorrow? I'm gonna save this for tomorrow. We're gonna pick back up here tomorrow. It's gonna be really good. This is like the inception of all money, of like basically it's like the starting point of all modern currency. We'll go into that before. But yeah, if you guys are here, thank you guys for coming to the live stream. We do have a free autonomous trader. It's 100% free. What I mean by autonomous is it buys, sells, does the research. The profitability determined by you and how you train it, how well you can keep it running, what coins that you teach it to buy. The whole point is it's like an assistant. It's an assistant that does the work for you and, uh, you train it. And it's really cool. It's free. It's on our website right now. You can click the button, go get access. And if you want help train— uh, training it, you know, building it, we, we also sell services for that as well. Dude, this class is literally Enlightening me. What about exchanges like Bittrex? Bittrex is like, bro. Yeah, so you'll start to realize that basically the way it goes is you have one financial guy that has the balls to do something the other financial guys can't with innovation in unregulated territory. They go super aggressive, and at a certain point, because of how much money they make, the law decides if they're good or bad. And if they're good, they have just refined an industry for the rest of their life. If they're bad, then they probably go to jail and have to pay billions of dollars back. That's basically the gist. Let me say it again. You go to uncharted territory as far as you possibly can. You keep a good reputation so that nobody considers you bad. You innovate beyond what they innovate on. And then at a certain point, you get determined if you're good or bad. If you're good, you have just revolutionized an industry and probably a multi-billionaire. If you're bad, you're probably going to prison. And you have to try it again. And it's funny you say there's a guy, the Bitrix, he's— I think his name is Arthur Haynes, and I think that's what he did, if I'm not mistaken. Arthur Haynes was like sued, and like he's— some people like flee countries and go to different jurisdictions, and then they try it again. Basically is how it works. Red days equal discounts. Arthur Haynes. Arthur Haynes, yeah. And look up his like legal history. And there's a couple other people, it's like the same thing. It's like the same. I've seen the same pattern. He was the owner of Bittrex, right? Yeah, he was the creator of Bittrex. Oh, BitMEX. I don't even want to go into that, bro. USDT is a, is a Ponzi. Pretty much like, bro, you guys will start to understand with the creative finances, it is straight scams. That is like, it's over. Like, it's, it's like bad, like from the beginning. No matter where you go, no matter where you go, you'll start to feel, realize how corrupt this system is and It's super corrupt, and then you have to live in it. So you could take dominion over it, or you can just do nothing and get wrecked. Basically, you can do nothing and get enslaved. It's modern slavery. It's basically, um, it's slave— it's enslaving you through ignorance. So because you're ignorant, you have no idea what's going on, you're being slowly but surely enslaved, essentially, is what's happening. All right, any questions? What time is it? 1:30. All right, that's pretty much it for the live stream. Thank you guys for coming. We're gonna have another live stream tomorrow from 3 to 4 PM Eastern Standard Time. Today is Tuesday. This Friday we're also gonna have a really cool internal live Q&A where we get more dirty with the strategy stuff. We get into the depths of the strategy. We're doing Crypto Beginner. It's getting our, our obviously really crazy. And so come tomorrow, 3 to 4 PM Eastern Standard Time. Set your calendar, set the notifications, bring your friends, actually do the course. And if you want the free Autonomous Trader, click this button and you might get Carlos on the other side of the call or something. And I'm not joking, it's like really free. So if you come over here, you can download the Autonomous Trader and then you connect to our Smart Beacon 100% free. If you click this button, it will literally take you through the process of connecting to the actual beacon. Again, 100% free, which costs us a lot of money and it costs you nothing. It's really cool and we did it for a reason. So go to the website coinpicks.app, and through that process you're going to be asked