*****
Summary of Transcript:
The video discusses the recent developments in the FTX saga, which has been plagued by fraud and liquidity issues. Crypto has been particularly affected as central banks are taking liquidity out of the system. June was the worst period as leveraging in crypto caused massive balance sheets to blow up, particularly for Alameda, which was hidden but was in the hole for $9 billion. FTX gave them FTT tokens and a loan against it to paper over their losses. However, it is now becoming clear that FTX was just a front for Alameda to capture customer order flow and give them an advantage. It appears that there was never any proper accounting and no customer positions that weren’t being used by Alameda. Additionally, the persona constructed by Sam Bankman-Freed, the CEO of FTX, was not real. Investors had invested in the cult of personality surrounding Sam, but it is not clear what allowed him to pull this off.
*****
Summary of Description:
Raoul Pal, co-founder of Real Vision, discusses the current state of the crypto market and the role of psychology in investing. He explains why FTX using customer money is not as unusual as it may seem and why demographics have played a significant role in shaping the current financial climate. Pal emphasizes that investments are a manifestation of one’s future self and urges listeners to minimize their emotional responses and play the long-term game when it comes to money management. He also addresses the need for central banks and the challenges of managing the business cycle.
*****
Invest in Yourself Now: Understanding the Cryptocurrency Market
The current financial crisis has led many people to act out of desperation and emotions, particularly in the realm of cryptocurrency. To help us understand what is happening in the crypto market, Raoul Pal, macro investor, former hedge fund manager, and co-founder of Real Vision, a financial media company, offers his insights.
What’s Happening in the Crypto Market?
According to Raoul Pal, the first thing to understand about the game of money is that it is a game of psychology. In any game, you need to know the players and the rules. In the crypto market, leverage and crypto do not go well together. The key takeaway, therefore, is to play the game well and minimize any emotional response.
The Emotional Cycle of Money
The emotional cycle of money is an important concept to understand. As Raoul explains, the cycle consists of people entering the market, followed by a phase of euphoria as the market increases in value. This is usually followed by a period of anxiety and panic as the market decreases in value, leading to people selling their assets. The cycle then repeats itself.
Inflation Vs. Debasing Currency
Another issue that Raoul addresses is the debate between inflation and debasing currency. Quantitative easing, for instance, is a way of saying that we are going to debase the money. What is important to understand, however, is that demographics are deflationary and inflationary, depending on where you are in the demographic cycle.
Do We Need Central Banks?
Raoul also touches on the question of whether we need central banks. He argues that there are a lot of structural issues here that cannot be solved without government and central banks.
Future Economies with Tech
Finally, Raoul delves into the future of economies with the help of technology. As a former hedge fund manager and macro investor, Raoul sees technology as a game-changer in the future. However, it is important to understand that these changes will not happen overnight.
Investments are Just a Manifestation of Your Future Self
Perhaps the most important takeaway from this episode is that investments are just a manifestation of your future self. As Raoul explains it, understanding the game of money requires you to know what your future version of yourself wants. This includes your debts, your risk tolerance, and what your next financial move will be.
Register for a Free Live Workshop on How to Make Any Goal Stick
To help you better understand how to invest in yourself and achieve your goals, consider registering for a free live workshop entitled “How to Make Any Goal Stick.” You can register for the workshop by visiting the link provided in this video.
Conclusion
Understanding the current state of the crypto market requires a holistic understanding of the game of money. By understanding the players and the rules, as well as the emotional cycle of money and the debates around inflation vs. debasing currency, you can better position yourself for success. Ultimately, investments are just a manifestation of your future self, so invest in yourself now to achieve your financial goals in the future.
*****
See Original Source
Source Description
INVEST IN YOURSELF NOW: https://bit.ly/3WUKBTh
FREE LIVE WORKSHOP HOW TO MAKE ANY GOAL STICK, REGISTER NOW: https://bit.ly/3X5xHlE
On Today’s Episode:
What in the crypto is actually going on? In the middle of the financial crisis we’re experiencing, people are acting out of desperation, and emotions are possibly leading the charge.
Raoul Pal is back to help us understand what is the current state of crypto, why FTX has been using customer money and more importantly, why is this not as unusual as you may think. Raoul’s insights as a macro investor, former hedge fund manager that retired at 36, and co-founder of Real Vision, a financial media company, takes us to a high level view to string together how world history and demographics have brought us to this point.
The key takeaway here for you is that, “the game of money is a game of psychology.” Tom Bilyeu Once you understand that this is a game, we need to know the players, the rules. The ultimate indicator of how you play this game, as Raoul explains it, is the future version of yourself and what that version wants. It indicates your debts, your risk tolerance, and what your next financial move will be following this interview.
Whatever you do, do so from a place of minimizing your emotional response and play the game well.
Mentioned in this episode:
Homo Deus by Yuval Noah Hariri: https://www.amazon.com/Homo-Deus-Brief-History-Tomorrow/dp/0062464310
SHOW NOTES:
0:00 | What In The Crypto Is Going On?
14:02 | The Emotional Cycle of Money
23:46 | Inflation Vs. Debasing Currency
36:37 | Why Velocity of Money Is Slow
46:54 | Do We Need Central Banks?
56:34 | Future Economies with Tech
1:16:42 | Can Debt Stimulus Solve This?
QUOTES:
“Leverage and crypto, don’t go together.” [1:57]
“Investments are just a manifestation of your future self.” [16:05]
“It really is a psychological game, and it’s a long-term game.” [19:20]
“Quantitative easing is a way of saying we’re going to debase the money.” [22:37]
“Demographics are deflationary and inflationary depending where you are in the demographic cycle.” [27:01]
“Babyboomers, the same people who caused the inflation are causing the deflation, […] because they’re holding money.” [40:56]
“Nobody wants the debasement of currency, but if you don’t, what is the outcome?” [47:43]
“There’s a lot of structural issues here, and I don’t think you can do this without government, and I don’t think you can do it without central banks.” [49:27]
“Nobody’s ever managed to get the business cycle flat, it’s a degree of what volatility you’ll accept.” [56:22]
Follow Raoul Paul:
Website: https://www.realvision.com/
Twitter: https://twitter.com/RaoulGMI
Instagram: https://www.instagram.com/raoulgmi/
YouTube: https://www.youtube.com/channel/UCBH5VZE_Y4F3CMcPIzPEB5A
Comments are closed