Hello Folk. What is going on with the viewers across the two? I’m sure you know by now, but if not, my name is Tyler. Welcome to the channel that is more vocal than this little pooch stuck in a drive-through line. This is how lines work, Walter. You can’t just go to the front because you’re Walter Jeffrey. That’s not what it is. You know, you’re not even popular here in Austin, Texas, to be honest. You know our Hounddog. How? It’s time for Chico Krypto. If you didn’t know the real fun began yesterday, my friends, miners in the Bitcoin industry started to realize their profits were being slashed in half. The reward is now officially six point two five BTC per block, or just 900 new bitcoins per day or at current prices, over seventy-nine million dollars per day. Although over the weekend it was twelve point five BTC per block or eighteen hundred new bitcoins per day, or at current prices over one hundred and fifty-eight million dollars. So some miners out there are definitely feeling the pain. But when you check out the hash rate chart over the past seven days, it’s not a terrible miner purge. Yet as a hash rate dipped from one hundred and thirty-six million Tarah hashes to one hundred and twenty-five million hashes, a purge of just eight percent. And with the hash rate staying where it is with the network difficulty‘s where it is up. Prices have to stay here or above for a significant majority of the miners to stay profitable. A ton of operations in the US, Europe and Australia are actually losing money at these current prices. But even with the dips into the seven K and high six K range operations in Eastern Europe, Russia and China even become unprofitable. But only if the hash rate and difficulty are around the same level. And this can be seen with pretty having break-even data with miners and certain electricity costs. If you are paying one cent per kilowatt-hour, you were extremely profitable. Pree having even when 25 percent goes to other costs like cooling as break-even was still under fifteen hundred dollars. But not too many places pay that cheap. Even in China now up to the seven percent kilowatt-hours where miners would break even or begin to lose money based on an additional cost. But now with having you have to realize that the costs have doubled for the BTC miners and those break evens have all been multiplied by two, which means prices for these operations have to increase or the miners will be subjected to Bitcoin prices below their break evens, which means they are then forced to sell not only all of the coins they mine on an ongoing basis, but they may also be forced to tap into their balance sheet reserves, causing additional selling pressure on top of their persistent ongoing sales. And you know, what that mining data showed was taken by coin chairs and investment and research company and their chief strategy officer Milton de Meir’s, who is a total babe, by the way, said this when referencing the firm’s observations of the mining industry. I think miners are looking to opportunistically offload some of their Bitcoin inventory to add operating capital to their balance sheet. We’ve been talking to a number of miners on coin shares, capital broker-dealer side. Are looking at raising capital to build out new facilities, to buy new machines and to extend their capacity, raise capital. That means selling more BTC than usual unless the price goes up. What could make the price go up? For the short to medium term? Well, the Federal Reserve said in a press release, New York Fed announced the start of certain secondary market corporate credit facility purchases on May 12. Yep. Yesterday, some crazy brand new thing the Fed and the Treasury Department conjured called the secondary market corporate credit facility s.M CCF went live. Of course, it was established because of the virus. But according to the Fed’s own documentation on what it does, the s.m CCF they purchase in the secondary market, corporate bonds issued by investment-grade U.S. companies or certain U.S. companies that were investment grade. As of March 22nd, two thousand glens. So the key here is they need to be investment-grade corporate bonds or ETF, which means A rating of triple B minus or above. No junk bonds. But there is a loophole or certain companies that were investment grade. As of March 22nd, 2020. So they can currently buy junk bonds as long as they were investment grade before the viral panic. Now, Bloomberg also covered the launch of this facility and they covered a certain ETF in their article, forty-four point six billion shares, ie box investment-grade corporate bond ETF rallied point eight percent after the market opened on Tuesday at twenty-one point three billion shares. Eyeborgs high yield a.k.a. junk corporate bond ETF climbed point five percent. Who is behind the icebox. Corporate ETF BlackRock. Financial is. And guess who is a key player in the response to this pandemic. BlackRock Financial is Bloomberg covered it last month. BlackRock. Becomes a key player in crisis response for Trump and the Fed. And in the article, BlackRock has a premiere role in helping Federal Reserve stabilize markets. The central bank has hired the firm to help manage its economic relief efforts, which the Fed admits from another press release of theirs about the s.m CCF on March 24th, 2020. The New York Fed retained BlackRock Financial Markets Advisory as a third party vendor to serve as the investment manager for this facility. Then Steedman Nugent again moves in. Let the world know too, and that they wouldn’t be making money off of them. Let’s listen in. Well, any of the people who are working with us have already agreed to work at very, very, very reduced rates, making sure that, you know, this is a special situation. So we’re not going to be paying big fees to any of these people and we’re gonna make sure there aren’t conflicts in any of the people we hire. And as I said, they’ll be full transparency. So the president is right. He’s asked me. I’m sorry. Go ahead, sir. Do you have names for any of those individuals who will be doing this? Would be the Federal Reserve has already announced that they’ve hired BlackRock. BlackRock is one of the largest asset managers in the world. BlackRock was involved in the financial crisis last time. Larry Fink has enormous experience. So that’s one of them that has been disclosed. And as we hire more people, we will fully disclose. OK. Snoots my news then. What is this from a detailed document about the facility? A fee structure for the SNCF is based on the value of corporate bonds and loans acquired and held by the facility. BlackRock will charge one an asset management fee and two program administration fees for setup and operation of the facility. So Stevie Boy, don’t be a CBS or we know BlackRock is going to make bank off of this and become even more powerful. You said it yourself. They helped in the 2008 financial crisis. The CEO, Larry Fink at the helm. It was called BlackRock Decade when Bloomberg in 2018 said how that crash forced a six-point three trillion dollar giant. Yet from this chart, we can see they managed just over a trillion in 2008. By 2017 was over six trillion. I wonder how much they manage in 2004? Well, from a corporate media release, assets under management of three hundred and twenty-one billion. Wow. Now, that is some real growth from three hundred twenty-one billion to today, over seven trillion in just 16 years. Now, if we want some perspective, what BlackRock manages is twenty-nine percent of the national debt of the United States of America. A debt clock shows just over twenty-five point one trillion. But tik-tok, tik-tok. It’s growing by that second, although who brought BlackRock on in 2008 to help with the financial crisis? Well, it was that George W. Bush presidency, as it was May 2008 when they got the call to fix Wall Street. But Obama took over in November of that year. How many times did the Obama White House and BlackRock exact mean? Well, according to BlackRock Transparency Project’s Web site, there were 98 meetings between Obama White House officials and BlackRock executives. Hundred and eighty-five meetings and phone calls between senior BlackRock executives and Treasury secretaries spanning the Bush and Obama administrations. And finally, Obama and Larry Fink CEO personally met 16 times. But what is weird, there is not a single picture of the two together can be found online. But we are doing it all over again with the Trump administration. Now, like for those who are still blindfolded and don’t see each administration from the Bushes to the Obamas to now that Trump’s all have the same damn goal and work with the same damn people. I feel sorry for you, Trump, and think our best friend. They like to play schoolboy push and shove. And now this facility has put us on a dark timeline. It was in 2008 dark. It was just hidden better because of Obama’s squeaky clean image. But now we have shifted to where the dark is clear as day by giving Blakroc full control of this debt buyout program. The Fed is further entwining the roles of government and private actors, and in doing so, it makes Blakroc even more systematically important to the financial system. Yet BlackRock is not subject to the regulatory scrutiny of even smaller financial institutions. All doom and gloom. I know. And I said there could possibly be demand from Bitcoin, from all of this. Remember? Well, back in July of last year, Larry Fink said this firm is evaluating cryptocurrencies. The article states chief executive Larry Fink on Monday said the world’s largest asset manager has assembled a working group to look at blockchain technology and cryptocurrency such as Bitcoin. But caution, he does not see massive investor demand. No demand. Then why just a few months later, in October, the head of your working group said this on a podcast. So we talked about how there was a lot of enthusiasm about crypto in 2008 with the initiation of the first and of Bitcoin if you will. A lot of excitement in 2015, 2016, and then now people kind of roll their eyes. It feels like flashing is a tired password. So where do you think we are in the hype cycle and where do you think it’s going? Even though blockchain and crypto are, you know, fundamentally distinct concepts that may ultimately have different endings, blocks and hype cycle is very much tracked Bitcoin’s cycles. And we’ve had three of those in its 10-year history, the first being from Inception basically through 2011 and the second peaking in late 2013, troughing in 2015. And then, of course, the third peaked in December of seventeen as over the last year and a half. That’s where this trough of disillusionment has really set in, where people have started to tire of the buzz and question whether this is going to be anything but just as is typical INJ or that classic Gartner hype cycle as that is happening on the ground, fundamentals are actually improving. So speed, privacy, security, scalability and real development is happening. And then going back to 2018, the head of your working group, Robby. He has been putting out work regarding Bitcoin and crypto. He co-authored this research paper in June of 2018, a fundamental valuation framework of crypto assets. As we can see from the BIOS, the authors are both connected to that ripple. Susan serves on the board of directors and Robby, he worked for them in the summer of twenty seventeen. And what I find funny from the report is even though they are a rip, had they give Bitcoin a better chance of succeeding, as we can see from Section three-point one model application estimating a fundamental value for BTC and X Arpey, they assign Bitcoin a success rate of 30 percent and a failure rate of 70 percent. End with X our P. We can see they assign success at twenty-five percent. Well, failure is seventy-five percent. They think BTC has a better chance. And what I love is their conclusion. We have demonstrated the practical application of the model on two leading crypto assets, BDC and SRP, and arrived at a fundamental value range day for BTC of thirteen thousand six hundred twenty-eight thousand one hundred four x Arpey of a dollar fifty-nine and eight dollars and twenty-three cents. This result, through calculated using imperfective early precise estimate, suggests that both BTC and ex Sarpy may have significant upside from the current price levels, despite the spectacular price appreciation in both currencies since early 2017. So some doubt Ripple Heads will say, Hey Robby, you work for a ribbed ball for US armour. It means BlackRock and the Fed are now going to be using them. No. As you can see, since they made that evaluation call in June of 2018, that tokens were at forty-five cents. They are now at 19, a one-year loss of nearly 60 percent. Bitcoin, it’s basically where it was actually a tad bit higher as it was below AKCA at the beginning of June in twenty-eighteen. Bitcoin has increased by 10 percent. You would think Robbie, an investor at heart, notices things like that. And here’s a little piece of information we need to come and put together. So we found out in March Brian Brooks, who was Coinbase is chief legal officer, was joining the Treasury Department, reuniting with his old one West friend, Manute Chin Katz, who has been advising Coinbase for the past 18 months. BlackRock and they began exploring a crypto ETF together back in June of twenty eighteen, which suspiciously came one month after Coinbase was the first fintech company to speak with U.S. regulators, the Treasury Department, about acquiring a federal banking license, which was unfortunately stopped by. Yeah. We covered this two weeks ago and the video proof that the dollar is going digital, which the Treasury Department specifically Brian Brooks, has held, Office of the Comptroller appealed, and we are still waiting on that decision. But in the meantime, they want to get things are all in for Bitcoin and crypto. Why do you think yesterday JP Morgan announced they are now providing their banking services to Jemini and Coinbase. So if you take the time to find and connect the pieces, they go right together, like IKEA furniture, no solid directions. But once it’s put together, you realize this is some good shiz net. Cheers. I’ll see you next time.