WILL STABLE COIN ENSLAVE OR ENRICH YOU?

➡ The Common Sense Show discussed the concept of stablecoins, a type of digital currency tied to the US Dollar, designed to be less volatile than other cryptocurrencies. The show’s guest, Guy Godslak, explained that stablecoins can be issued by various entities, including banks and private companies, and are now regulated by the government due to the Genius Act. He also discussed the potential of stablecoins to create competition for banks and reduce the likelihood of fractional reserve banking. However, he expressed concerns about potential government overreach and emphasized the need for legislative safeguards to protect digital ownership rights.
➡ The discussion revolves around the use of stable coins, a type of digital currency, and the need for regulations to prevent government overreach. The speaker believes that while there may be short-term challenges, the adoption of stable coins will increase, benefiting the dollar and leading to more companies entering the crypto space. They also predict that within a year, stable coins will be widely used for transactions, including online purchases and money transfers. However, they caution that users must be careful not to transfer their stable coins to places that might freeze their assets.
➡ The discussion revolves around the impact of stablecoins and their potential to reduce the U.S. debt, increase the value of the dollar, and create demand for U.S. Treasuries. However, concerns are raised about government overreach, potential misuse of the system, and the need for diversification of issuers. The conversation also highlights the role of Bitcoin as a safety valve and a means to build wealth, likening it to gold. The importance of legislation and decentralized technology to prevent misuse and protect individual rights is also emphasized.
➡ The article discusses the potential impact of stablecoin on Bitcoin’s value, suggesting it could increase due to enhanced liquidity in the digital world. It also mentions the strategy of companies using reverse mergers to go public with their digital asset holdings, which can increase their stock value. The article further discusses the potential for stablecoin misuse and the need for legal clarification around asset seizure. Lastly, it suggests that despite potential challenges, Bitcoin remains a good investment option, and diversifying with other cryptocurrencies like XRP could also be beneficial.
➡ If you’re older and considering investing, consider a Roth IRA for tax-free gains. You can also transfer existing IRAs if you don’t need the money immediately. Investing in cryptocurrencies like Bitcoin can yield high returns, but for even higher returns, consider altcoins like XRP, Solana, and Ethereum. However, this platform is not for day trading, but for building long-term wealth. For more information, visit mydigitalmoney.com or call 833-636-2008.

1 hello, America, to our friends around the world. Welcome to the Common Sense Show. We are the show, freeing America one enslaved mind at a time. And we’re gonna try to keep you free economically. And. And we asked Guy Godslak to come on. He’s the CEO of my digital money, and that’s Bitcoin, xrp, and the whole thing with crypto. But Stablecoins, oh, my. I’ll tell you, I’m a little nervous about this. I know Lynette Zhang is having a tirade about this. She says it’s the end of everything. And so we want to turn to the voice of moderation and reason here.

Guy got slack. And Guy, the genius act, as they’re calling it, very clever names. Big, beautiful Bill, the genius act. Is this genius, or should we be worried about the passage of stablecoins? And first of all, let’s start with this too. Basically, tell the audience what a stablecoin is designed to do and how Trump expects to use it. Yeah, Stablecoin, essentially, it’s a digital currency that is pegged to the US Dollar. It could be other fiat currencies, too, but the US Dollar is dominating in terms of stable coins. So, yeah, it’s basically designed to not be volatile like Bitcoin and some other cryptocurrencies.

So the. The. That’s where the name stable comes from. Right. The. The value of one stable coin will be $1. And so it’s essentially a way to transact digitally more efficiently. Right, because you have a lot of the same properties as cryptocurrency, where you can transact on a public ledger. So there’s transparency. You have settlement that’s instant, so you can get your money right away. And then you could also build a lot of innovative applications around it where you can, you know, transact. You could put it in your own wallet and. And do things like that so it doesn’t have to, you know, always go through a bank.

Although the initial issuance does happen through a bank like entity that is now regulated because of the genius Act. But. But anyway, reserve, that’s controlling it. Well, you could say that they can overreach at some point, depending on, you know, law. Right. But they are not issuing the stable coin. That’s. That would be a central bank digital currency. That would be direct control. Right. But now there’s, you know, issue issuers, a lot of large ones, but also there could be small ones that are more regulated now by the government. So just like, you know, banks are regulated, you could say that the government can you know, overreach and freeze your account or do something like that.

But, but they’re not issuing it directly. Okay, so the federal reserve is not issuing it directly. Then is it the treasury department, Congress, who’s in charge? Well, the, the fed and the government basically are, have oversight over the regulation. But issuers are the ones that are actually creating the stable coins. They’re holding reserves because now part of the regulation is you have to, you know, hold u. S. Treasury bonds or cash equivalent. So if you have, you know, a million stable coins that you’re issuing, you have to have a million worth of u. S treasuries. And the government basically, or in, you know, there’s an auditing firm that has to come in and make sure that you’re, you’re, you know, you’re backed.

And you know, that’s meant to protect the consumer, of course, but, but also there’s, you know, anti money laundering, you know, standards that the issuers have to meet. Right. And basically there’s oversight from, from the federal government. But if you’re a smaller issuer, part of the genius act says that it could be the state that oversees it. So if it’s a big enough issuer, then the fed, the federal government oversees it, otherwise it’s the state. So there’s a limit. If you’re below a limit, the state can produce stable coins and put them into circulation. But if it goes over a certain amount, then the federal government takes over the oversight.

Yeah. And it’s not the state that’s issuing it. Just to be clear. It’s. They would just be overseeing, they would just who issues it. So it could be any, any kind like a bank or it can be, you know, a company like so of the biggest stable coins is tether. I don’t know if you’ve heard of usdt, that’s the biggest stablecoin issuer and that’s a private company. Right. And, and then you have circle as well, USD, you have PayPal, even that issues stable coins. Right. So that’s, that’s an example of an issuer, but that’s a big issuer.

So, so they would be regulated by the federal government if now you can have smaller issuers that now that it’s regulated, you, you can be sure you’re going to have a lot of new issuers coming up, new companies. Right. That are going to decide to issue their stablecoin. And if they’re small enough, they will be regulated by the state that they, that they’re in. They just have to have that backing behind the stable coin. $1 per stable coin. That leads me to another question. One of the things I hate with a capital H hate about the Federal Reserve is fractional reserve banking.

If you’re a banker guy, not that you would be, and I give you a dollar, you can loan out $9. Are you kidding me? You just inflated my money, okay? And you’re costing me money while you’re making money. Fractional reserve banking is what they call it. If it’s indeed a one to one correspondence, does this do away with fractional reserve banking? Or, or will the Federal Reserve preserve that? Right. And we’ll have two systems independent of each other. So it does not necessarily get rid of fractional reserve banking, but it will make it, in my opinion, over the long term, less likely to happen.

Or it’ll happen on a, like a reduced scale. Right. Because even though banks are still going to be able to do fractional reserve banking, right. They can issue a stable coin and then if you decide to custody your stablecoin with them, they can take a certain interest on it, right. And they can lend it out and do the same things that they’re doing now. But because now you have stablecoins in a digital form, that opens up a whole slew of applications, right? Now you can have decentralized financial applications where you can use stablecoins to lend out your stablecoin directly to someone else without the bank being in the middle.

So now you’re going to have alternatives to the fractional bank reserve banking system, right? Where you be your own banker. Yeah. And, and you know, what I would advocate for, and I, and I hope that this happens is that you can actually like private wallets, can, can custody stable coins. Right. I think that’s part of what, what has to come with this, right. Is the ability to put stable coins in your own wallet and then be able to use decentralized financial applications, you know, outside of the bank, with stable coins. And at some point, if you want to redeem, you know, you want to get cash for it, then you have to go through a bank or something like that.

But, but the, the bottom line here is that it’s going to create more competition for banks, you know, and if the banks are going to engage in this fractional reserve banking, they’re going to be less likely to get the business. Right? There’s going to be alternatives out there. But that’s part of the, the core issue with this, you know, genius act, right, is that that’s one of the biggest challenges is you Know, how do we prevent government overreach? And I think, you know, there’s a lot of ways to mitigate that, and I think there’s going to be a lot of work that has to be done to mitigate that.

Absolutely. One of them is, you know, we have to put more legislative safeguards for digital rights. So I think we have to amend the Genius act to make sure we protect digital ownership as a constitutional right. So that’s going back to what I just said. In other words, protect people from being the victim of social credit overreach. Yeah. So enable you and I to put stablecoins in our own private wallets so then they can’t just be frozen. Right. That’s one example. And then maybe we can require court orders before blacklisting or freezing assets, limit executive powers for censorship or seizure.

There’s things we can do from a legislative standpoint and then from a technical standpoint, you know, we can do a lot. Right. We could promote defi decentral finance rails over traditional integration. So that means that we encourage the use of stable coins and decentralized protocols instead of just with. With banks. Right. And also, you know, when you do that, you increase the censorship resistance. So. So we can do more of that. Right. We can do put transparency around, you know, around some of the controls like, like multi sig wallets and things like that. There’s things you can do.

But of course, this does have a danger of government overreach. So. Yeah, let me be specific. Government overreach. I’m going to get right down to it. I don’t like what you’re saying, Guy, and I’m the government. I’m going to take your stable coin away from you. That’s the fear that I would have with a digital currency. And you’re saying we need amendments to make sure that doesn’t happen. So in other words, the guardrails aren’t there. Yeah. To make sure that we have. First of all, we’re able. You’re able to hold your stable coin in your own wallet so no one can take it from you.

Right. But then of course, there’s. There’s off ramps and on ramps. So if you want to, you know, liquidate and get money for that, you have to, you know, transfer that stable coin into something like a bank or an issuer. And so if they’re really tightly controlled, then yeah, then you might be prevented from cashing out. Right. So we got to make sure that there’s enough decentralized alternatives so you can actually transfer your stablecoin to a decentralized application that would maybe allow you to cash out. And no one can control that decentralized application. So we gotta make sure that the government allows for the development of these decentralized applications.

And I don’t think they can stop it. I think that the people will demand that. And there’s so much benefit. Again, we’ll be left behind if we don’t allow decentralized applications. Right. So I do try to take the optimistic view. I think that, you know, it’s going to take time to get there, but I, I think, you know, there’s always a risk of a little bit of overreach, but I think that eventually with technology and the right legislation will mitigate that, you know, and, and so, but right now, as it stands, we’re not protected from government overreach.

It’s going to take additional legislative action. Is that what I’m hearing? Yeah, I think. But, but I mean, there is still protections from a technical standpoint, right? Because, you know, you will have wallets that support stable coins and things like that. It’s just that you would have to be careful. You would have to not transfer your stable coin to the wrong place that might freeze your assets. So there’ll be ways around it, around overreach. But yes, there could still be overreach in the short term, but I still see this as a positive development because it will increase adoption overall for, for crypto.

Right. I think more companies will now get into it. And I think, you know, aside from that, it’s good for the dollar. Right. Just speaking as an American, I think it does help mitigate the de. Dollarization that’s happening with bricks. Right. I think bricks just had a conference beginning of this month and there was barely. The attendance was really lacking there because I think part of it is, you know, Trump, you know, threats with, with tariffs. Right. For people that support BRICS activity. But I think the stable coin also, I mean, it makes the need for BRICS currency much less.

And yeah, I think it helps cement the, the dollar dominance. So, yeah, there’s always like a conflict in my mind between, you know, wanting the dollar to be strong but also wanting, you know, less government control. Right. Crypto. So I think this is a good way to get to a middle ground, right. Where you get both, but it’s not going to be painless. Do you know anything about implementation, what we’re looking at? You mean in terms of bringing it into existence? It’s one thing to have legislation, it’s another thing to actually Be doing it. Yeah. So we already have stablecoin issuers.

Right. So now there’s going to be new issuers that come on board. And I mean, there’s probably going to be some pain points in regulating. Right. Like, a lot of the issuers are probably going to need to do extra work in the beginning to make sure they’re compliant. So there’ll probably be some, some pains around that. But I think we’re already here in terms of having stable coins. Now it’s going to be a matter of, you know, within like one to two years, we’re already going to see crazy adoption. You know, we’re going to see all kinds of applications being more mainstream, like decentralized applications, you know, ways to lend out your stable coin.

You know, transferring money overseas. Right. Will be much easy, much easier. That could happen within a year. I mean, I think it’s relatively quick timeline. Okay, so you think it’s going to be about a year? Yeah, well, the technology is there right now. It’s just a matter of, you know, figuring out how to work within this regulatory framework. Will people spend stable coins or dollars? I’m kind of confused about that. Well, I mean, you can do both, right? So you can basically buy stable coins with your dollar. And then, you know, there’ll be applications where you can transact digitally.

You know, like even, you know, if you have like a metaverse or you have, you know, all kinds of new innovative applications that are online, you’ll probably use your stable coins there. In a store, you would probably, you know, have to convert to dollars. But I’m sure that even at stores they’re going to start, more merchants will probably take stable coins at some point. Right. What about credit cards? How’s that going to factor in? I’m sure, I’m sure it’ll be easier to use because you can already, with some merchants, spend Bitcoin. So I think, you know, stable coins, it’ll be pretty easy to.

No, I, I get that, but I’m just saying, okay, I pull out my Visa. Is that still going to be a viable instrument to transact with? Well, I don’t know. I think over time, as we’re going to move to more like crypto credit cards, because the merchants have to pay like a big. It’ll be a debit card, basically, not a credit card. Yeah, yeah, because the merchants have to pay, you know, a pretty big fee to, to use Visa. That’s right. That’s right. I think, I think with crypto, you know, now the, the fees will Be less.

Right. Because the technology basically is there to be able to transact instantly and cheaply. When I order from Amazon, I’ll have to do stablecoin in all likelihood and not use my credit card on file. Yeah. I mean, unless the car, I mean, I, I don’t know. I haven’t thought that much about it. The credit cards could adapt and, you know, lower their fees and provide some kind of benefit. Right. Like the fact that you can use credit instead of, you know, needing to have the money. I’m sure people will still need credit. Right. But I think that Visa MasterCard is going to have to, you know, change what they’re charging.

And I’m sure they’re, they’re still gonna, they’re still gonna be around. It’s just that they’re gonna, you know, they’re gonna have a little bit different, you know, they’re going to be operating differently. I mean, we won’t have to pay 29 interest, maybe. Yeah, I think, I think it’s. This is all going to be good because we’re moving towards a world of, of efficiency. Right. I’ll tell you, it’s going to make it hard not to pay your taxes and I think that’s a good thing. And it’s going to be hard. Harder to money launder. Yeah, yeah. So depending on who you are, you might say that’s a, you know, a disadvantage or an advantage, but yeah.

And generally I think it’s good. I would agree. El Chapo’s family doesn’t like this. No. They’re not going to build a launder into your local restaurant. And I mean, you’re still going to be able to use dollars, right? I. I think so. Just like you can now, you can use a credit card or you can, you know, use dollars, but I don’t know what you’re going to buy drugs with. I mean, illicit drugs. Not that I do that, but I’m just projecting this out now in organized crime because it’s a cash and carry business and so you take stable coins.

How are you going to tell the government, well, it was a cocaine deal I did. That’s going to be kind of hard to justify. Yeah, yeah. I’m sure that’s going to be harder for, for drug dealers. So I’m still have, you know, I think I have the basic concept, but I think I’m where probably most of my audience is at. It’s really hard to get your mind completely around this now because it’s so different. Yeah, it’s so different. It Takes time. But I think as, as some of the applications will become mainstream, it’ll make more sense because people will be using it.

But the thing is, it’s not going to look so different than the applications you use now. Like a lot of times you do transact online, right? Like you’ll go and buy something on Amazon and you’ll use like your payment method. And, and so now you might use this new issuer or like you, you know, like circle or whatever, you know, to get your, your stable coin and you’ll just choose a different option, right? And so it’ll be, you know, it won’t look so different, but you’ll know that under the hood you’re, you’re, you know, you’re passing stable coins from one end to the other instead of, you know, using your, your bank.

Right. Sometimes takes time. Here’s a big one. Here’s a really big one. We’re $37 trillion in debt because irresponsible legislators, okay? And it’s the only reasonable way to put this. It’s their fault. Now having said that, I hope they’re not going to build an exceptions for government spending. I’m hoping they’re going to have to live by the same rules. And you and I do you got, you got a stable coin, you better have a dollar behind it. Is that going to be equally applied? What do you think? I mean, I think so. I think the, the law, you know, mandates that and, and there’ll be transparency around it, I think, because you, you know, it’s on the blockchain so you can see what’s going on.

So, you know, if they’re not held to the same standards, we’ll know. And yeah, I think that has to be part of the legislation. Right, but, but yeah, that’s, that’s what it says is, it says that, you know, everything has to be one to one backed up. So I think that applies, should apply to everybody. And, but I think the good news is that it will create massive demand for U S Treasuries. So it’s good for the US I think. And, and it’s, it’ll build the value of the dollar and it will technically bring down the value of the debt.

Yeah, I agree with that. I agree with that. That’s true. You know, I forgot to take my paranoid medication this morning, guy, so I gotta ask this question. Okay. All right. As long as the treasury department, Congress, you know, shall coin money according to constitution and maybe even a little of the Federal Reserve, okay. If the involvement with stablecoin stops there, I’m fine. But the minute this goes into the bank of International Settlements, the Bank of London, and these international globalists, if it’s tied into that, I want nothing to do with it. Okay, that’s my paranoid question.

Yeah, I think, obviously, I think that they would be involved too, but I think the key is to diversify across issuers and jurisdictions. Right. And so, you know, you don’t want to have a single issuer like USDC Circle or PayPal. So now that we have this framework, you can have a lot of different issuers. The actual genius act doesn’t say, oh, you can only have two or three. Right. It’s giving you a framework as a company to create your own stablecoin. Right. And so I think as long as we have diversification of issuers and you can have issuers outside of the US as well, then I think you have options.

Right. Oh, wait a minute. Because does that mean that foreign governments could move to control our currency value? No, it’s just like, you know, foreign governments can. Can have, you know, US Dollar as well. Right. So they would just be. They would be creating the stable coin, but they still have to buy dollars. Right? They have to buy dollars and hold dollars or U. S Treasuries, just like they do now. Oh, my gosh. So if we have a trade balance over a country, they literally have to use the dollar or stable coins as a reserve currency.

Yeah, it’s just. It’s just the same as now is just that. Now I get it. Yeah, I get it. It’s why Trump. See, I thought Trump was pushing tariffs for concessions politically and stuff, and I’ve seen evidence of that. But I think this is also about reestablishing world reserve currency. That’s what it is. That’s what, that’s. That’s what this is about. Wow. Okay. I’m half sold on that point right there. Yeah. And then that’s what it’s meant to do. Right. And that’s why the, the, the tariff threats went alongside this. Right. You know, like, if you start supporting bricks and, and, you know, trying to get away from the dollars of world reserve currency, we’re gonna hit you with higher tariffs.

Right. And now we’re making it much easier to, you know, transact with the dollar. Right. So this becomes kind of the de facto, you know, engine. Right. Of the digital world. So I think, you know, there’s risk, but it’s a good thing overall. And I think. What do you think the biggest risk is, Guy? If you were to look at it and say, okay, this is my biggest concern as a citizen, then I’m going to ask you also, what’s your biggest concern as someone who works in bitcoin and crypto? So kind of a two part question.

Yeah, I think the government overreach would be that, like that, you know, that they would be able to see more of my transactions. Right. Because I’m doing everything more digitally now. And yeah, it would just be easier for them to see what’s happening and freeze my account. But, but I’m not so concerned that I don’t think it’s a good idea. I, I just think that we should push for legislation and you know, make sure that we innovate on the decentralized side of things. So I’ll be a proponent for that as a way to mitigate this. So, but that would be my, my main concern, I would say.

But I think bitcoin is still a great thing, Right, right. In terms of protecting your wealth because, you know, the dollar still could still be devalued, it could still be overprinted. So I think bitcoin is limited supply and so it does still serve as that digital gold and it will keep us more honest on the stable, stablecoin side of things. Because, you know, if the government completely does the wrong thing with stable coins, people will just flock to bitcoin. Right. And so that’s part of why we have the stable coins too is because people were going more towards bitcoin because they didn’t have that instant settlement and the transparency and all those things that bitcoin was giving, you weren’t getting and now you’re going to get that.

So if we now completely misuse that system, then people will still have that alternative of bitcoin and other cryptos. Right. And so I think bitcoin serves this really important role to really keep us honest and also to help build your retirement. I’m always, you know, preaching that because that’s what we do at my digital money. Right. We, we always preach, you know, having bitcoin in an IRA as a way to build wealth, not just protect your wealth. And I think bitcoin serves that really important purpose. And the genius act now makes it even more, you know, more important to invest in an ira because, you know, now this has really become legitimized and mainstream.

And so now you have fidelity getting into it. You know, I think employers will get into it and I think it’s the IRA is now going to become mainstream. So you know what this reminds me of a little bit. When gold has historically been used to counterbalance the loss of value in the dollar, you know, as the dollar dies, gold will rise. The stable coin situation sounds like it’s transferring some of that to Bitcoin as a safety valve. Yeah, Bitcoin serves the same, the same purpose. Right. It’s very similar to, you know, precious metals in that respect, only, you know, it’s more, you know, it grows at a faster rate, at least right now.

So that’s why it’s a good time to, to get into it, because it’s still early now, it’s legitimized. So the risk is much lower now, right now that we have legislation, this is like the Bretton woods moment here. Very good analogy. Let me tell my audience what that means real quickly here, because they. A lot of people don’t learn that in history. Bretton woods was 1943, and it was clear the Allies were going to eventually win the war. How are we going to rebuild what’s going to be the universal currency to help rebuild? And that’s when the dollar was decided.

It will be the reserve currency. And everyone said, well, nations are going to industrialize, they’re going to need oil. So to buy oil, you got to buy the dollar, and there’s your backing for the dollar. That’s effectively what happened. And I agree with you. This could be a Bretton woods moment. Here’s what. I don’t mind if the visibility of stablecoin is such the government can detect clear and present money laundering, okay, illegal activities, I am fine with them freezing assets, just like they do now under rico. But if you say president, so and so sucks, whatever, and then they go after you for that.

That’s where I have a problem. Right. Yeah. And I think, again, I do think that we can mitigate that, but there’s always that risk, right, that, that, that could happen. Would you trust Hillary Clinton with this? I mean, that’s what I’m really breaking it down to. Yeah, I wouldn’t trust, you know, any one government. That’s why I think it’s important that we don’t allow, like, you know, executive power overreach on this. And so we need to have the right legislation in place. You need to have court orders and whatnot to freeze assets and, you know, valid reasons.

And, and also, again, the technology, we need more decentralized technology. So even if the government does misbehave, a new administration comes in, tries to overreach, at least there’s ways around the freezing of this. Right? At least you have, you know, alternative applications, you know, and issuers even abroad. Right. Or, you know, you can hold it in a private wallet so no one can reach it. Right. You can put it in a cold wallet so you still have your stable coin, you know, and maybe you go and redeem it in a different country. Right. Or you, you know, you wait for the next administration.

Right. But you can protect your stablecoin in a private wallet. In a perfect world, the guardrails would already be in there. That’s in a perfect world. Yeah. And what I don’t know, and I suppose we’re going to have to wait to see what greater legal minds than you and I are. I’m not a lawyer, but what would constitute an unconstitutional behavior from seizure of assets? Could you do it based on First Amendment rights? Or would it just simply because of criminal activity, where the RICO laws apply? That’s where I think this really needs to be clarified.

Yeah. Let me bring this down to your business. Okay. Because you’re one of the good guys on the Bitcoin side, one of the best. Okay. What is the implementation of stablecoin going to do to the value of Bitcoin, in your opinion? I think it’s going to skyrocket. I think it increases liquidity in the digital world, which can then be transferred to Bitcoin, and it legitimizes this world of cryptocurrencies. It’s going to create a lot of innovation. Right. And that innovation will be. Will basically allow for multiple currencies to be transacted within those new applications. Right. Bitcoin and crypto included.

And so bitcoin is still the number one cryptocurrency. And I think it’s really been skyrocketing since, you know, not since the Genus act was passed, but since we kind of knew it was going to pass. Right. Like, we already saw that it passed, you know, the Senate and, you know, was going to pass the House. Like we, I think last time we spoke, I even told you, probably before the August recess, it’s going to pass. So I think the market already started, you know, to price that in. And also, you know, there’s been a lot of institutional adoption.

Charles Schwab is now providing Bitcoin as an option to their client. And you have this phenomena of treasury reserve strategies. It’s like the microstrategy strategy where organizations are keeping Bitcoin on their balance sheet. And what a lot of people are actually doing is they’re doing reverse mergers. Do you know about this? No. I’m not familiar. We’re basically people, different companies, private companies are using blank check companies or reverse mergers to go public with their digital asset holdings. So they basically bypass the six month plus process of going public. So they basically buy a public company that is not really doing much, it’s a shell company.

And then now they can issue stock and they can raise money that way. And then they can buy Bitcoin and then that sells at a premium, right? So it’s about a 200 premium over the net asset value. So then they can, you know, char. Then they can issue more stock at a higher price and then buy more bitcoin and then this continues, it’s a cycle. And when you look at MicroStrategy, their stock went up 3,000% from 2020 because of this strategy. And so basically the, the value of the stock goes up at a higher rate than Bitcoin.

And a lot of companies are doing this right now. I don’t know if it’s a good idea during a bear market, right. Just as fast as they go up, you know, maybe they can crash. So I would be careful to invest in these companies. I would still be a proponent of investing in Bitcoin directly instead of these like, you know, bitcoin treasury companies. But if you do want to make a quick, you know, buck, just make sure you get out at the right time. Right. If you’re going to invest in these. But when you look at these companies, we have like hundreds of companies now that are doing this and now they’re starting to do it with Ethereum and other cryptocurrencies as well.

What about xrp? Are they doing it with that too? Not yet, but I think that will be next. But right now they’re doing it with Ethereum and Solana and a few others. And you know, I, the market now is over $4 trillion and Bitcoin actually just hit a milestone. Even It’s a, it’s 2.5 million around in market cap, but it hit the million dollar in an investment milestone. So that means that not a million. Sorry, did I say million? Trillion. Trillion. So a trillion dollars has gone into Bitcoin so far. So that was a big, a big milestone.

I just, yeah, we just went through. But that’s huge. That’s absolutely phenomenally huge. Can Bitcoin stay independent of stablecoin abuse? Yeah, I think bitcoin is independent. You know it is, can be really controlled as I’ve said in the past. So yeah, I think it’s independent and I think it’ll keep us honest on the stable coin side or help at least. But there’s going to be a challenge, like, just like with any new technology. Right. You know, there’s going to be a period of time where we have to iron out the kinks and we’ll get through it.

Have they announced implementation dates that are firm? Have you seen anything? I, I think there’s a bunch of private companies that are now like, doing things, but I haven’t seen anything. This just happened Friday, so I’ll definitely keep you posted for the next time. I’ll have a list of implementation developments. I’m sure companies are gonna be coming in left and right with new issue, you know, issuances of stable coins and new applications and they’re going to be coming out of the woodworks. Well, I think this is inevitable and I think it’s incumbent upon all of us.

How are we best going to survive and thrive in this new environment? Sorry, I forgot to take my paranoid medication, but this is a big departure from past economic practice. I think there’s some positives in this, though. Excuse me. And I want to congratulate you for being so well informed because I came at you with a barrage of questions today that I know my audience is going to wonder about and I think they’ve walked away. But I, I think regardless of where this goes initially, and I think it’s going to take off quickly, Bitcoin is really a place to be.

Would you still highly recommend XRP too? Yeah, I think XRP is good in that even though it’s not as decentralized as bitcoin, it is used by the big banks and it’s kind of like used within traditional finance. So if you’re what we call bitcoin maxi, you would be against xrp. And I understand that. Right, because you’re kind of subscribed to the whole satoshi philosophy of let’s prevent a 2008 crash and let’s have a completely decentralized currency that’s outside of government control. So you’re probably not going to be for xrp. But at the same time, if you want to be pragmatic, it takes time to get to an ideal world.

So I think xrp, you know, starts to provide a lot of the, the ethos of, of crypto, but it’s still within the traditional finance. So it’s more likely to take off. Right. Because you have big banks that are adopting it. So you’re not fighting against the big banks, you’re working with them. And there’s a lot going on there on the technical partnership side and you know, it’s taken off. Right. So xrp, you know, it just hit an all time high. It went up about 70% in the past month or so or even in the past two weeks.

So. So yeah, it’s definitely up there and something that you should diversify with in my opinion. I, I’m not just for having one currency, so I think it’s a good way to diversify. But Bitcoin, if you want to be conservative and you’re just starting, is always a good option. And I think the crypto IRA is a conservative way to start because you’re not paying taxes. Right. Like you can basically trade, you know, swing trade, sell. When we get to an all time high, which I think we’re probably, you know, gonna hit in the fourth quarter of this year, you know, then you sell at that point, you know, then maybe during the next cycle you kind of like buy back in when we’re again at a low.

And you can keep doing that without paying taxes for a while. Right. So unless, unless you’re 73. I’ve learned that now if you’re 73, you got to begin to take out a distribution and pay tax on it. Right? Yeah, but for people. But with a traditional ira, with the Roth ira, you don’t have to pay taxes because you’re putting post tax money in it. That’s right. But yeah, things change when you’re in retirement age for sure. Yeah. But for people who aren’t in retirement age, I mean it sounds like the IRA is a real good deal.

What about people who are creeping up there in age and they go, well, I may not be 73 yet, but I’m going to be there pretty soon. What would you tell them to do? I mean, if you could still contribute to an IRA and, and have it like a Roth IRA and then be able to, you know, have tax free gains, I would do it. And, and a lot of times, you know, people have IRAs already that they can transfer in and they don’t, they don’t need the money. Right. Like a lot of times they have already their cash flow, you know, from their normal jobs or you know, properties or whatever it is.

And the IRA is kind of just like extra for when they retire. So for me, I had an IRA sitting there. I forgot about it. A 401k from an old employer. So to me it was much easier to start that way rather than taking money I depend on. Right. I was able to just transfer over to Crypto ira. And I was able to see it grow. And then, wow, I gained confidence. I was like, wow, I just doubled within a year. That’s crazy. Okay, let me do this with cash now because I feel confident. So that was a good way for me to start.

That’s really how I started. That’s, that’s. Yeah. A lot of people wish they could do that. With regard to. If people say, okay, IRA is nice, but I want to do something directly with crypto or bitcoin. What’s hot right now? What would you tell them to do? Well, you can do the same thing with cash on our platform, so you don’t need an Iraq if you’re. It depends on your risk tolerance and your financial goals. So it’s always different depending on who I’m talking to. But bitcoin is a good thing to start with. It’s more conservative and that it’s less volatile than a lot of the other ones.

Now, if you want a really high return, then you got to get more to all coins. Right? Because even though bitcoin is still early on, it’s not going to be, what, the same returns. I just read an article that someone put in. Someone just cashed out $9.5 billion in 2014. They bought in at 50,000. Wow. They bought $50,000 worth of Bitcoin and now they sold it for 9.5 billion. That kind of return is not going to be there anymore with bitcoin. Right. But you will get, you know, that 200, 300%, you know, over a few years, which is really good.

It’s still better than most other asset classes. But if you want a really high return now, then you can start looking at the, what we call altcoins, which is every crypto other than bitcoin. So XRP is great, Solana is, is great. Ethereum is still really good. It’s the second biggest cryptocurrency. And then you have a lot of other ones like Chain Link. And you know, I would do research on these. Like, they all have their own utility. So it really depends, like, what you think, what resonates with you. Right. You know, like Chain Link is basically about providing real world data to smart contracts.

That’s probably going to lose a lot of your listeners. So we would have to. No, I hear you, but you got people there that’ll explain this to them if they call. Absolutely, yes. That’s one of the advantages with us too. Another question I have is you hold this in cold storage for people, don’t you? Yes, so the security is absolutely there, you know, so we’re, we’re, our platform is more for retirement. So you, it’s not really for day trading, right. Like you can’t buy Bitcoin and then, you know, sell it like a half hour later. You have to wait till the next day.

And that’s because we have cold storage. So in order to day trade, you would need to keep your crypto in a hot wallet, which means it’s online and it’s more susceptible to hacks. You can have security in place and everything, but it’s not going to be bulletproof when you have a hot wallet. But with a cold wallet, you’re offline. Right. And so that’s how we store people’s crypto. And we’re able to do that because, you know, we’re not offering day trading. But you can swing trade. You can buy crypto today and then turn it around tomorrow.

But you can’t do it with a pretty quick turnaround, you know, because you get into a range. Let’s say that you went from just round numbers here, let’s say 110,000 and it jumped to 120,000 over a week. And you come in towards the end of that week, you could cash out a certain amount, couldn’t you? Yeah, you can do that. Yeah. But if you’re a day trader, that’s really. Yeah, if you’re a day trader that’s within the same day making a bunch of trades, that’s not going to be the platform for you. This is more for.

I don’t think of crypto that way though. I think of the stock market that way, but I don’t think of crypto that way. Well, some people do it, I mean, because the volatility allows you to gain a lot with, you know, J trading. Right. But, but you have to really like look at technical indicators and you know, that’s not like the common person is not day trading. Right. They’re not making a living out of like, it’s more swing, what I call swing trading, which is, you know, every few days or every week or every month. So our platform is good for that and it’s, it’s more for building long term wealth.

Like we believe in holding on, you know, over longer periods of time because, you know, we, we still think this is going to skyrocket. Right. Every cycle you’re, you go up at least five times and you know, so yeah, and you don’t need to be a day trader to take advantage of these great increases that are Coming, you can just say, okay, this is time for me to take something out here. It’ll be interesting though down the road. Are you going to be paying it out in stablecoin or dollars? So that, that I think that’s still probably up in the air somewhat and undefined.

Tell people how they can get ahold of you because it sounds like your people really will be on top of explaining all these things. Yeah, so it’s mydigitalmoney.com you can find our number there. But if you want the number it’s 833-636-2008 but the number’s on the website and you can always open an account, you know, online mydigitalmoney.com and we have US based people that you know, you can talk to. If you have any questions about signing up or you know, about cryptocurrency in general, we can help, help you get started. We started this, you know, for the common person that may not be comfortable with cryptocurrency.

So, you know, that’s why we have a US based customer service which, you know, is hard to find usually but we’re here to answer your, your questions. I think it’s terrific. This, this has been one of our, I think most impactful interviews because we’re covering something so novel but blending it into how people can jump in and take advantage right away. Our guest here has been Guy Gotslak of my digital money. And you go to mydigitalmoney.com and you can also call at 833636 when the economy fell out 2008. So that’s where you can call. I like how you chose that number though.

I’ve referenced that before when I’ve talked about your company. Well, Guy, really interesting stuff. I appreciate you handling, you handled the barrage of questions I gave you really, really well. I, I would say so considering I’m a tech guy, not a, you know, I’m not a legal guy, not a lawyer or anything but, but you understand the trends. That’s the thing. You understand the trends, you understand the laws. You know, there’s no hint of any FTX ever with your company. Thank goodness. Absolutely. So I would encourage people, if you’re going to do business in this, want to look into it.

This is a really good place to start my digitalmoney.com guy. Thanks for joining us my friend. Good stuff. Yeah, thanks for having me. Take care. You too.
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