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May 13, 2022 - Health Ranger - Mike Adams
11:42
Crypto carnage accelerates as popular stablecoin headed for COLLAPSE
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The crypto world is unraveling at a rapid pace.
We've seen Bitcoin drop below $30,000.
That's a drop of nearly 60% from its high.
And there's another coin, which is a stable coin called the Terra US dollar.
And it's tied to a sister coin called Luna.
And this was created in some kind of complex, creative way to have a new stablecoin that doesn't require dollar reserves.
Anyway, the Terra stablecoin has plunged to about 26 cents on the dollar.
So it's not much of a stablecoin if it's not stable, is it?
And it's supposed to be pegged to the dollar, like it's always the same value as the dollar, which is losing value, by the way.
But it's dropped to 26 cents on the dollar.
And its sister token, LUNA, which is used to help shore up the stablecoin and kind of a complex algorithm that I don't fully understand at this point.
But LUNA has plunged 96%.
And this is all being reported by CNBC. And what it indicates is that crypto is not a store of value, which is a very important point I've been repeating for many years now.
Crypto is not digital gold.
And even though a lot of these crypto people think that they've created a revolutionary new system of money, and perhaps in some ways they have, like Monero is a really amazing privacy coin.
But some of these schemes, like the Terra scheme, the Luna scheme, it's not a revolutionary system of money, it's just a revolutionary new Ponzi scheme in my view.
The founder is supposed to be worth billions of dollars, but the billions of dollars don't even really exist.
Let me explain something.
Do you want to become a crypto billionaire?
You want to become a crypto billionaire in five minutes?
It's very easy.
You can do it.
I can do it.
Anyone can do it.
And here's how you do it.
You pull up a spreadsheet.
Let's say Microsoft Excel or whatever you're using.
And you create a new coin.
You just type in at the top of the sheet.
You type in clown coin.
That's going to be your new crypto.
Clown coin.
And then you have a row that says quantity.
How many coins outstanding?
And there you type 1 million.
Okay, so you've just created 1 million clown coins.
And then all you've got to do is find somebody...
To pay you $1,000 for one of your clown coins, and the reason that you're happy for them, or that they're happy to do that, is because you will pay them back more than $1,000 two seconds later.
So you just go to your friends and say, here, pay me $1,000 for this clown coin, and I'll pay you $1,050 back.
In five seconds.
So your friend says, okay, sure, whatever.
Whatever you're doing, it sounds crazy, but here.
Here's $1,000, and then you pay them back $1,050.
Okay.
Now, You are a clown coin billionaire because you have $1,000, well $1,050 actually, valuation of your coin and you have how many coins?
1 million coins according to the spreadsheet.
Oh, and don't forget to give a copy of your spreadsheet to your friend so that you now have a decentralized spreadsheet.
So you see, now you have peer-to-peer decentralization.
You have a public ledger.
And you should probably enter those two trades there as lines on the spreadsheet as well.
So now you have something kind of a crude, simple resemblance of a blockchain.
You don't have the cryptography in it yet, but this is just a simplified explanation.
But you are now a crypto billionaire.
So lots of people run around thinking they're crypto billionaires.
Um...
Everybody can be a crypto billionaire.
It doesn't mean anything unless it holds value.
And this has been the key question of crypto.
It turns out it doesn't hold value because if you bought Bitcoin up at $66,000 and now it's below $30,000, you know, you've lost well over 50% of your investment.
You've lost coming up on 60%.
But we're always told that you're supposed to just buy and hold.
Hodlers, as they say, you know, buy your crypto and just hold on to it and that's it.
Never sell.
Well, if you never sell, it means you can never use it, right?
Because redeeming it or selling it is supposed to be the whole point that you use the Bitcoin to buy a house, buy a car, or convert it back into, let's say, fiat currency dollars so that you can buy something with it, maybe groceries, maybe gold, silver coins, what have you, or crack if you're a hunter.
But if the advice is that, oh, we'll all get rich as long as none of us ever sell, that's a Ponzi scheme.
By definition, it's like everybody keep buying in, the price goes up, we're all going to be Bitcoin billionaires, or some other crypto, as long as nobody sells.
We'll all be rich.
But again, the rich doesn't count unless you can use it for something.
But if people start using it, then the value collapses, which is what has happened to Terra.
People are selling.
Because they don't trust the system.
Oh, and also on top of that, I forgot to mention, Coinbase just altered their terms of service.
Coinbase, their stock is down, I don't know, what, 27% or something in the last year.
Coinbase holds your crypto in their wallets.
They hold your cryptography keys.
And in their terms of service, they now say that if Coinbase goes bankrupt, you could lose all your crypto.
It would be a bail-in scenario, basically.
They would just seize all your crypto.
You become, what they say, an unsecured lender.
You have no security.
They don't owe you anything.
And it'll go into bankruptcy proceedings and you'll get nothing.
So if you have any crypto with Coinbase...
After hearing this, I mean, you're a fool if you don't move it out.
Just because it's worth nothing if it's not secure, you see.
And once again, this comes back to gold and silver, physical gold and silver.
It's secure because it's real and it's in your possession.
Somebody wants to try to take it from you, they're going to have to fight you for it.
Whereas with Coinbase, they just seize it.
They just take it.
And the value was never even really there in the first place because it's just been propped up by other people buying into it.
There's no intrinsic value behind a lot of these crypto coins.
This is why as much as I advocate everybody understanding crypto and being able to use it and setting up a wallet on your own local computer where you control your local cryptography keys, there are many different wallets out there that you can use for this purpose.
I've said Monero is great because it's a privacy coin.
And there's a couple other privacy coins, like PirateCoin, I think.
But I like Monero.
Because it fulfills the promise of anonymity.
But I don't speculate in Monero.
I don't buy and hold as a, quote, investment.
They're not investments.
It's just speculation.
It's another casino.
It's just been a casino that's been very popular for a while because it keeps going up and up and up.
Well, until now.
Now the casino is beginning to collapse, and this collapse is not going to be pretty.
It's already terrifying people because they've been buying a lot of crypto on margin, and now the margin calls are kicking in, and people are ripping their hair out and banging their heads against the wall, hoping that silver coins come out of their ears or something so they could maybe meet their margin calls.
So even though I'm pro-crypto in terms of the decentralization, I'm anti-speculation.
And where this is going, by the way, I believe, is ultimately that the best crypto needs to be backed by something real, backed by commodities.
It could be backed by gold or silver, wheat, copper, natural gas.
And I believe that the BRICS nations are going to launch a digital coin and a public blockchain, and it's going to be backed by the commodities produced by those nations, which would include food products like soy out of Brazil, for example, or natural gas out of Russia or silver from Russia. or natural gas out of Russia or silver from Russia.
And that coin, whatever that becomes, is going to be wildly successful.
And that might be a very real store of value.
That might be something that I would actually buy and hold if it's backed by commodities, backed by something real.
Crypto backed by nothing is ultimately going to be worth what?
Oh, nothing.
It's just a transactional system, but it's not a store of value.
But crypto that's backed by commodities could be worth a lot.
And as those commodities become more and more valuable because of the supply chain collapse and global inflation and scarcity and so on, that crypto could do quite well.
You know, I've talked for a long time about a food-backed crypto, something that would support local farmers.
I don't yet know what that's going to look like.
I'm not yet sure how to launch that.
But the bottom line is a whole lot of people who have put a bunch of money into these crypto Ponzi schemes are about to get financially raped, basically.
No other way to say it.
Because if you were doing the FOMO thing, fear of missing out, To buy into a get-rich-quick scheme backed by nothing?
Well, history is full of people who bought into those schemes.
Tulip bulb mania, Bernie Madoff, Ponzi scheme, you know, former head of NASDAQ and so on.
And they all collapse because they're backed by nothing.
So remember that currencies backed by nothing, whether it's fiat currency or cryptocurrency, currencies backed by nothing will be worth nothing eventually.
Yes, there can be a bubble.
There can be a lot of hype and a lot of excitement on the upside and then a whole lot of terror and pain and hand-wringing on the downside.
And now it looks like the downside of crypto is upon us.
It doesn't mean crypto will disappear, by the way.
There's still a very strong utility, especially for the privacy coins like Monero.
But the days of crypto being this, you know, get rich quick, buy and hold, digital gold, all that, those days are over.
And People are going to lose a ton of money in crypto, and it has lost its luster as the new thing.
So just be aware of that.
I mean, use crypto for where it has advantages, such as mobility and privacy with the privacy coins and so on.
But do not think you're going to speculate and get rich quick.
Those days are gone.
All right.
Thanks for listening.
Mike Adams here, naturalnews.com.
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