GREATEST Crypto Investing Opportunity of a Generation (Teeka Tiwari DeFi Breakdown)
To us, this can be one of the nice things concerning DeFi. Look at any luck is usually a die adventure svenska online casinon. If we glance at the standard money business world, simply in fees, they suck out somewhere like 6-8% of all world gross domestic product. It goes to huge investment world banks. That is insane! In fees! We tend to mean, that is like having a leech on our neck our whole life simply intake our life-force away, that is why we all know that DeFi is as huge because it is.
Teeka Tiwari opinion about the current Crypto’s situation (Why HOLD):
Being in the market for so long, I take a lot of my knowledge for granted. So there are a lot of people that are in the space for the first time, and they're seeing negative news, and they lose their mind about it. They say, “Okay,” you know, “the king of Tesla is saying that Bitcoin was good.” Now, Bitcoin is bad. Now, we get a news announcement this month saying that China says banks must block crypto transactions, and, of course, the market is falling. But the thing is if we've been in crypto for a few years, we've seen that China has banned Bitcoin and Bitcoin miners and Bitcoin trading multiple times since 2013. I mean, more than five. And every time, the market freaks out. What I do know is that a lot of these Bitcoin miners in China, a lot of them have been forced to move, and it makes sense that some of them have got to sell and get some money in – so they can move their miners into another country. – Yeah. So when we have all of that coming together, guess what happens? We have fear, sentiment collapses and so does the price. And so what we're in right now is a mid-cycle bear correction in an ongoing bull trend. And I went through this multiple times in 2017. I saw GBTC for instance, which is a trust that tracks the price of Bitcoin. We saw it go from $1 to $3 to $1.50 to $6 to $2 and change from $11 to $5.50 to $12 to $8 to $18 back to $12 and then to $38. And that all happened in one year. In one year. And in that year, what happened? You had every central bank say that Bitcoin was the devil and was the end. And it was only being used for crime. You had Jamie Dimon, the most powerful banker in the world, call it a tulip craze, a bubble, saying that he would fire anybody who would get involved.
We had China ban all trading. All trading was banned. They came and went after the miners. We had the central bank in Russia come out and say, “We're never going to allow crypto trading.” India banned crypto trading. So again and again and again, we have these assaults against this asset. Now, ask ourselves. I've been involved professionally in the stock market and finance since 1989. I have never, in my career, seen any asset be the product of such an orchestrated attack by traditional gatekeepers. Ever. I've never seen gold get attacked like that. I've never seen silver get attacked like that. I've never seen exotic options like credit default swaps even in the depths of the financial crisis. It wasn't– people didn't come out and say, “We're defunding anything to do with credit default swaps, and we can never trade a credit default swap again.” And they crashed the entire global economy.
So there's a couple of things that we need to take away from that.
One is Bitcoin has still managed to thrive in the face of more regulatory pressures external pressures than any other asset class. And the fact that it's continued to thrive in the face of that says a lot about this asset.
Two, you’ve gone from a guy like Jamie Dimon saying that this asset has no value
too, now, his firm is offering Bitcoin as an investable asset to his end-users. – Think about that. – Yeah. Think about how far we've come. You've got Goldman Sachs doing the same. Morgan Stanley doing the same. Citigroup doing the same. So why is this important? What everybody needs to understand is that the way that the incentives of Bitcoin are created. Is that their network protects itself. And now that you have JPMorgan, Citibank, Morgan Stanley, the OCC all on Bitcoin's side, guess what, you now have all those lawyers on Bitcoin's side. You now have all that lobbying on Bitcoin's side. So you can hate on the central bank, you can hate on the big banks all you want, but they see the money to be made in Bitcoin, and so they're going to defend the network.
DeFi vs Traditional Banking:
So again is we have to look at incentives. Everything around big money is driven by math. So if the global settlement cost for transactions between big banks and brokers is $20 billion a year, meaning you're bank A, I'm bank B, we want to buy and sell a security, so that cost of settling those transactions and figuring out that you have the security, I have the money, that's a $20 billion friction. So DeFi takes that down to virtually zero, right? When you move that all to a blockchain. So if we're on an interbank network and all of our assets are on a blockchain, including your capital in the form of stable coins and my stock, you can tell that I own the stock because the blockchain can't be hacked. I can tell you have the money because the blockchain can't be hacked, which means that we can do instantaneous settlements. That means that we can drive our fees literally down to zero. A fraction of a penny. So if you follow that economic incentive to its logical conclusion, – it tells us that this has to be the future. Any time we can take a high friction series of events and reduce the friction down to virtually zero, the world's going to flock to it purely based on their self-interest, not because they think that blockchain is the second coming of freedom, – which it is, – Right. But they're just seeing the dollars. They're like, “Oh, my God! We can save $20 billion in global settlement costs each year.” Done.
Role at Defi.tech:
Just to be very clear, I (Teeka Tiwari) do have an investment in DeFi.Tech. I'm an investor and an advisor. So anything I say about them is going to be considered biased, so please keep that in mind. So what I've seen over the years is that value aggregates around people that make it easier to get access to crypto-assets, right? If you look at Coinbase, if you look at Kraken, if you look at any of– Gemini, enormous value has aggregated to these companies because they make it easy for the everyday person to get exposure to these assets.
I believe that decentralized finance, that trend is, in my opinion, the biggest wealth-creating trend that I've ever discovered in my entire life because if you look at traditional finance, it hasn't been disrupted. They're still using the same technology from 60, 70– you know, from 1960, 1970. All those old machines are running on FORTRAN, COBOL, and Pascal. Anybody that's my age will know what those words are, right? These ancient machine code languages, they're using an ancient series of tech to do all this plumbing. Well, decentralized finance comes in there, and it fixes all of that. And so, when I was approached by DeFi.Tech, I loved what they were doing. They were making this space more accessible to the everyday person. And they do it by creating products that have zero fees that allow you to get access to DeFi protocols, so everything from Ethereum to Cardano and Polkadot and even Bitcoin. They're creating these exchange-traded products that allow people easy access to buy and sell them.
The Future of DeFi:
It would be a slow rot. We mean, there's enormous demand for the core services – that these big banks offer. Or if you're doing multibillion-dollar underwriting types of business, you're not going to do that in a decentralized way. Not yet because the infrastructure isn't there. What I will say about Jamie Dimon is he said that we should be scared, his quote it was, by this fintech. And he's right. He knows that he's got to start embracing some of these changes if his company will last beyond his lifetime. I mean, Goldman Sachs and JPMorgan and Citibank, – they're not going anywhere over the next 10 to 20 years. – Right. But here's the way that disruptive tech works. You're in business. – You're out of business. – Yup. That's how– just ask Blockbuster. Just ask Woolworths. Just as Kmart. Just ask any of these companies that just had these incredible franchises for so long, and then there's this tipping point, – and then they're done. – Yeah. So to me, this is one of the great things about DeFi. If you look at the traditional financial business world, just in fees, they suck out somewhere like 6-8% of all global GDP. It goes to big investment global banks. That's insane! In fees! I mean, that's like having a leech on our neck our whole life just sucking our life force away, which is why I know that DeFi will be as big as it will be.
Palm Beach Research Group:
We have about 160 employees in our company. And so it's a large publishing company. And the key thing that I want everybody to remember about Palm Beach Research Group is that we only have one avenue for how we make a profit. And that is our subscription cost. That's it. We don't sell our lists. We don't rent our lists. We don't even sell any advertising to our lists. And we never own anything that we recommend. There are only two coins that I'm allowed to own that we've recommended. One is Bitcoin and the other is Ethereum. Because, you know, if you can't own Bitcoin and Ethereum, – you can't operate in this space at all. – Yeah. So I must want everybody to understand that we don't have any conflicts of interest. So if I recommend something and it shoots up, I'm not the beneficiary of that. My readers are the beneficiary of that. And so this was critically important. We want it to always have in place. Because you know as well as I do when you have a large audience, if you like something, it can have an impact on it, and the world thinks that you're there – promoting it specifically for yourself, – Yeah. But I need to tell everybody that's just not the case. That's just not the way we operate. We have a large publishing business that employs a lot of people. And our business is publishing and selling these letters for a premium. We sell them for a premium. To create that level of research, to find those ideas, to research to that degree, I need a big staff. – And those people have to get paid