ABOUT THIS EPISODE

n this episode of Buy or Sell, JJ, Alec, and Dee discuss the possiblities of decentralized exchanges and what they have to offer. What would markets behave like when the order book was global? Also, is the proposed ETH cap an April Fool's joke by Vitalik, or actually just a good idea? Also, we go into a bit of detail about our new publication, The Distributed Post. A publication that aims to provide gripping articles from all aspects of the crypto community. You can find the twitter here: https://twitter.com/DistributedPost Here are two examples of articles that you can find on The Distributed post: https://thedistributedpost.com/2018/03/23/decentralization-meets-exchange/ https://thedistributedpost.com/2018/04/01/next-week-today/ If you liked this show you should subscribe to The Bitcoin Podcast Network! Also, JJ gives excellent trading advice and we have a community of traders that are highly active on a daily basis. Come and join us here: http://www.jenkinsrm.com/chat-room Also if you would like to know what we've been up to when we aren't recording podcasts...check this out!!! https://rhythm.network/ Enjoy!

English
United States
explicit content

TRANSCRIPT

00:00:00now entering this client all caps Network
00:00:12welcome to buy or sell what the hell with Jesus Jenkins Alex z and d
00:00:19gjb got his scooter at Charles Schwab is treat her in that way with over a decade mysterious Intruder us treasuries and building out institutional analysis dealers Marge by side money managers and how do you buy or do you say
00:00:55welcome back to another show another episode and horse Jason at the maitre d here Alec Z as usual your last name doesn't start in case you forgot over the Easter weekend how you guys doing little slow Monday today long holiday weekend but trading slow or are you guys up to
00:01:23this weekend I got a little sick actually and I'm just now recovering I was a nice relaxing Easter weekend help my niece find some eggs and try to get some rest cuz I got a little sick got the t-virus for my niece trying to rest up whether it's been outside so yeah oh yeah
00:01:54I sent beautiful of them same here I'm playing some golf later so I guess we'll keep the show kind of short and sweet trading just been really slow I mean we look at just Global macro markets but specifically the crypto markets the amount of energy this is this is probably the slowest I've ever experienced it
00:02:22I'm so technically we're still pretty patient there's you know I'd like to make it more exciting with 10 different names that we want to jump on and be aggressive it's just not that markets so we're we're still Planet Bitcoin on the short side of the near-term we would plan it an intermediate term Hedges well so we have our models X multiracial model so we can long longer-term and then you can be intermediate-term hedge and obviously there's any art room picture where we date right around but Ulta near and short near-term an intermediate term I've been playing it on the short side here this morning and over the weekend
00:03:03so that really hasn't changed since last week that you know if we do test 6000 I think that's a good spot to add some of your long as you like longer-term
00:03:13but that's that's kind of where we're at I mean April 2nd monthly closes always matter so what kind of I'll do some work on where we closed out March but there's some big levels it and I was just doing some analysis for our team and then I'll Alec I'll let you kind of talked about the distributor post a little bit
00:03:34but I think it's important that BTC we talked about the majors 5873 was a big level that's the insured and should we close from February
00:03:45that's the US held Assyrian broke it so I call that electing level over the weekly reversal that was at 465 and then Litecoin still holding it at a hundred or par so that's the weekly reversal so we've got the market testing some really big weekly levels 148-a Monero 48 on Neo
00:04:10but I still have everything on the intermediate-term is bearish when I run these pivots from ether like going Bitcoin cash Monero Neil Ripple or Donald salt Dash all all in the red so we're still in the same immediate term
00:04:29what Kleenex type of trading
00:04:35Trayvon cordingley
00:04:39yeah so
00:04:42whole lot of level updates we wanted to talk Alec I let you talk about the distributed post yeah before we get to inject here recently launched an online publication called did she read your post so you can go to the distributor post.com to view all original articles we just kind of started up and we're still looking for contributors to so if you like to write anything really related to blockchain news technical analysis opinion op-eds or even you know some market analysis just sent an email at contact this. Post.com will post a link in the podcast description like always but you can also search for it on Twitter with the handle at distributed post you want to keep up-to-date but that's been fun watching that you're going to start writing some analysis on their people shouldn't expect to see you at Jason
00:05:42I guess so
00:05:44mouthpiece mouthpiece for writing
00:05:51I don't know podcast we like to talk obviously I shoot a lot of video but I do want to write some more writing always takes a little bit longer but you can really
00:06:01do a lot of teaching and make some points and there's some things on the visual side of them are now so I'll be post there but I've been really impressed with all the other people write some really great articles and so the whole goal is just to collaborate and bring up so much of the information is kind of scattered across the web so it's it's always nice if you have a place that you kind of trust that you can go to and get up to speed without having to I guess check a million different spots for your thoughts d
00:06:37I think it looks great I like just a diversity of articles that were kind of offering up there
00:06:43especially I'm looking forward to like the legal illegal tab getting built out cuz we're approaching that time in like the Natural Evolution of this industry where people are scrambling for legal guidance and maybe legal tips or whatever and we got feeling his team riding some good articles kind of help out there so excited about it please come join the collaborative process and bring your best writing skills and I will be working as an editor so if it's not your best writing skills we will it'll never hit the post
00:07:33well I know other than the distributive post I like you you wanted to talk about the centralized exchanges to today I wrote an article on this evening post recently about decentralized exchanges so I mean as Traders decentralized exchanges are pretty important for a few different reasons
00:07:58I mean when you start look at you no trusting and institution with your money I mean
00:08:04any Slayer of centralization puts your funds at risk is a traitor so being risk-adverse is something that I know Jason you preach all the time anyway to be if you know proper risk management risk adversity
00:08:21yeah you know it's kind of an interesting I don't know if the Bates the right word but we're kind of come to this Crossroads were you know I've seen some of these these professional brokers in the space that are that have all come out some of them on the floor I said some of them were Futures Brokers for the most part but they starting to add Bitcoin in some of the only seen a few Brokers that are
00:08:51I guess they're not even on the independence side but anyway there's there's some of these shops that are trying to offer like cfds which is which is kind of a derivative contract off of a 4X product through a Commodities product but anyway the euro versus the dollar dollar trade gold will now they want to offer see if to use on on bitcoin or just outright trading wouldn't call the cash Market which is which is how most of crypto come in do you know if you know if you buy BTC on coinbase and putting her wallet but the point is is that kind of the old wall they're saying hey you know now you can trade with a trusted broker and no longer do you have to keep all these coins out of an exchange that's not regulated and you don't need to worry about keeping them on your computer
00:09:48they're already posturing the say that trust trust the broker we're regulated you know we've got the capital
00:09:57and so it's going to cause I think this this debate which is which is better to do you want to trust yourself and your own
00:10:06your own security protocols with your Ledger Nano or do you want to trust the firm that says they're regulated which they might be and maybe they do have Capital but you never know because you can look at it for an like MF Global they were one of the biggest Futures firms trading firms and Eddie had course teen absolutely you know making a mess of the repo markets and blowing up and trading Greek bonds and bankrupt it is firm nobody else until you one day you wake up and there's no money in your account
00:10:45it's a debate I mean
00:10:48I but I think the future technology in the blockchain is you're not going to have the course teen guys of the world around baxla and what the politicians and do whatever they want and not knowing there's going to be accountability of the blockchains either have the funds you don't you're not you're not trading you know and that's what's great about the technology is hey do you have the funds yes or no it's on the blockchain cake then then anybody else that wants to trade with that firm not only do they have before we have to call and you like you have to have compliance people you never really knew reformers in trouble or the market was really getting clobbered like who has what positions who has what risk who has what derivatives you never know so there's always a risk that you traded you know if I bought a hundred million bonds from bear Stearns and then next week later I don't know if they're going to be able to deliver the bonds I'm screwed like my friends at risk now
00:11:48so what the what's great about the blockchain and
00:11:56did your Ledger Technologies is that and the smart contracts is it we'd only have to call up to back off or so you don't have to make a call as a risk manager and say hey nobody can trade with burst bear Stearns were shut them down nobody can you know there's too much counterparty risk or not trade with him the smart contracts will just be able to say
00:12:16now we can't even execute a trade with them unless we know there's x amount in there their account then that's the future
00:12:25I definitely agree with you are they come especially if the volume can continue to pick up and those things can scale out I mean that's definitely definitely going to be a direct competitor to your bitch Rex's in your biffen x's and even your gdax exchanges
00:12:47that's all just verified in powered by by the blockchain so
00:12:54I don't know why do you need to trust that Central entity that they're saying and doing what they're saying and doing one of the watching is just going to verify it so I mean even more so than just the trust things kind of obvious with everything but then when you look at what some of these you sent us exchanges look to offer when it comes to like liquidity and just trading options in general when I can't stand all these people like glued to their social feeds like trying to figure out what coinbase is going to add next brinson's screenshots and a decentralized exchange can just list everything automatically these institutions have so much power and then people are questioning insider-trading is just so messed that doesn't even need to be there
00:13:50what's all that
00:13:53decentralized exchange it's all so much I mean it's just going to be a blending process right now it makes sense that if you want to start trading Futures you go with someone they are retail person or independent but you don't trade with thinkorswim you want to trade Bitcoin Futures that makes that makes sense I mean they're pretty trusted you know you you don't have to open up an account with a clearing firm I mean there's going to be a process before the wall moves over to the blockchain on everything trading but now I look at it like if you want to hold gold or silver
00:14:42or save it that's what you can do with crypto as I can hold it in my Nano and not have to stick it inside a bank or
00:14:54what's what's kind of cool tubes were you talking about these old you know the institutions like you saying the brokerage firms and it's not easy to start a brokerage firm like you need a lot of capital liquidity you need the market there with and what they're doing with solving liquidity problems for these exchanges because decentralized exchanges is not a lot of liquidity even even centralized exchanges it's hard to start one because illiquidity problems but it would like Xerox is doing friend since they're creating a whole base layer is the structure for all these decent size exchanges so making sure order books so you could you know put a Buy on this your favorite decentralized exchange and the other side that order could be on a nother exchange specifically can benefit from
00:15:54it's just competition you can start a decentralized exchange because you have a new idea or take on it and you could have instant liquidity for your Traders so that barrier-to-entry I prefer more competition I wouldn't want to just stick with three of the major
00:16:13exchanges coinbase binance bitrix24 down and I can't trade will just happen too much do you think that like things are going to be so different for these institutional traders that they're never going to fully adopt it
00:16:34like I think it's like like you say Jason like everything has to be so regulated and so structured for them and you call him back offices and Olcott does this process is that everybody's trying to follow and then maybe even I'm just speculating maybe even like having to take tests to get certified to follow does it is it going to be so far is it to them like the things that Alex talking about where is like you put a order on one exchange but since it's built on a decentralized protocol it gets filled on a different exchange like that I mean it seems like some of these processes might be way too far and for going to take the people that are bold enough to take a chance and learn something new I've only benefit from this
00:17:22was going to be just a wave of decentralized exchanges yeah no you're absolutely right I think
00:17:30it is going to take awhile for
00:17:33the older institutions one for what you said because it's overwhelming it's tough for what pill was saying that you stuff for the lawyers to want to switch what they've been doing and they don't have time and they have these practices put them to go out to learn the blockchain when was just like now I don't have the time I don't but they don't want to end a lot of things to Traders have been on desk for 15 years with some of the older Traders are you know they trade been in the business 20 years there in management positions they don't they're not in front of the screens all the time those guys don't care to learn new market what part of why I left takes income side was I saw this change I saw how miserable trading pics in Euro
00:18:23animal activist taking and then I saw how much Capital was flying around in this face and I want to be a part of it so that the guys want to make the switch I think there's a lot of opportunity for him
00:18:35but I think what you'll probably sees all the Innovation will come in the cash market so meaning
00:18:41just for a listener so that the cash Market this is the
00:18:47is what you call when you're actually you know buying and selling actual crypto right so you're taking dollars from into coinbase getting Bitcoin or etherium maybe you're transferring that two different exchanges and trading altcoins did you actually trading cash for the coin so that's different than the Futures market right we are trading at the cashier spot prices on gold rate you can you can trade the actual physical gold or you can trade Futures which is a derivative of the cash price but so my point is that I think all the Innovation on like with to Alex talking about Medusa size exchanges that's all going to come from I think the cash market and then you'll have the older Wall Street it's going to want to participate in the asset class of Bitcoin
00:19:39okay just going to stick the good doing it for the Futures and I think there's a place for that I think there's a place for Big Money Trade in the future side and see if he see but all the technology that starts to happen between doing trades on the blockchain all that stuff's going to happen cash market and that's what we want to do with rhythm to it like right now we have already started trading teachers but we're doing that for the old the old Route you know through other old broker old Wall Street brokers and then we're setting up CTA ourselves so we can meet you at the old way there also but then Rhythm which is design that same vision we had as the future is
00:20:25trading on the blockchain the future is the computers talking to each other like we're just talking about that the funds are you don't think you can only execute on the smart contract if that exists and I know that's what we set out to is that hey pewter pewter is great but you still going to have to bring buyers and sellers together you know you can't just say why own a bunch of Bitcoin and I want to I want a peer-to-peer sell that to someone I don't even need an exchange well what you going to do you do you like it on Twitter and start asking people if they want to buy you know cuz you want to sell I mean you got to still have to bring those
00:21:09people together in some fashion and sounds like zero X
00:21:17that was pretty long-winded
00:21:21it's always going to discuss those things those because with all this everything seems like
00:21:28it has to be Converse a lot in order to make sense sometimes in the boxing everything was so quickly so you kind of kind of
00:21:39talk through how the stuff supposed to work in a lot of I think it's good for the people that are new to the space to understand
00:21:48and to dig dig a Little Deeper like that so yeah for sure I mean it's going to get interesting
00:21:57to see how everything Blends I mean we don't really have we had very hardly any Futures Trading going on we have no options on any of our cryptomarkets for the most part unless you're over what's the name of that term
00:22:16the match letter
00:22:29and I saw that headline I didn't get to dig into it you guys did I was really could that be good to discuss I didn't didn't think to you well I think I think there's going to be more firms doing that cuz it's big business so they're going to be like what are we waiting for you know this this is like I've talked about before people that worked on the under the original Spider and the original GLD ETF I mean they're saying how just crazy it is to get approved to do any yeah 6 7 years on smoker really longer ones that's crazy that you need to be no reason for that technology is changing so quickly
00:23:27ETS here by the end of 2018 I don't see why I should take what you were in April
00:23:34the biggest there probably just needed the Futures Trading for a little bit longer have some good some good rolls and settlements make sure it's dark Sprouts make your ass look big business
00:23:50takes him forever to do anything but I guess
00:23:55that's just the way it is I don't know that's probably a good Catalyst for the market though you know that it would regulations taking us down keep saying the regulations going to be the next really big Catalyst take us to new highs
00:24:11is that once the institutional spigot starts to get turned on but if we start get that etf's approved that's another step in the right direction now you can start saving more money or into the acid space grades even more interest
00:24:27so yesterday just to change the topic a little bit it could be an April Fool's joke that couldn't be no was too sure but the tallest proposed the cap on The Ether
00:24:43add somewhere near hundred twenty million either
00:24:46and I don't know if it's April Fool's joke or not if it is then I guess I'm fooled but I don't know I thought it'd be a good idea is it supposed to be bullish
00:25:01so I would say it's bullish Market didn't do anything on it then you got yeah that's what that's why I think you're right Alec it could be April Fool's joke you know it probably really doesn't even matter because he might have said it in an April Fool's, just butt
00:25:21it's still conversation in private needs to be at right I mean I don't know where that conversation is right now but I mean that's something that's been talked about for a while and I'd love to hear the communities take on in Developers
00:25:37I mean I think it'd be a good idea just my opinion just because most of these cryptos that have that cap for for the best I think the incentives are aligned I think if they're supposed to be an infinite amount of ether like if we could just keep making either and keep making either then it's inflation rate is always higher
00:25:59yeah and the U2 that you own always end up being less every time you eat Source created so
00:26:0820 million is like what that's like 5 times now it's like 6 times the cap is Bitcoin almost a little less than six times
00:26:20so I'm still since probably small though if you consider if we want to talk in terms of these what is etherium going to be a huge part of the the new internet I mean
00:26:33not just the amount of
00:26:37currency circulating within small small countries is a lot more than 129
00:26:47yeah that's that's what I think the big push back on bitcoin is too cuz it's only 21 million it's got 221 million so if you for like that's just not nearly enough for Converse not knowing that you can take it down to the million decimal point but then things get weird with math not really natural you know so
00:27:10I know I did I leave you good idea that's just my vote my devote is that a cap on either would be great
00:27:18I think it'd be a good idea what's the what's the ProForm let me know why would people say now we we don't want to cap it with all the quantitative easing and you need some sort of you need to have a mechanism to introduce more currency in to trike ease
00:27:44easy economy I'm guessing like that's a quantitative easing is all about you guys know the stuff that works slow if everybody is holding their ether people need to build on top of business developers need to do stuff and say say 70% of The Ether out there is gobbled up by speculators or put me out Wall Street for example that was a strong argument last year towards the end of last year with the network fees and Bitcoin is that the people needing it to build with couldn't build anymore because the cost to do a minimum transaction was so high
00:28:29like it was a stuck and I work was just officially stuck so there is that aspect of yes I think I think I just seen Market at the store value cap it right that's obvious if you need something that like for a theory and that's going to have to hold its value obviously but we got to use it for a lot of transactions and not so sure I don't know if if it does and does want to become the world computer that's a lot of people using it a lot of aetherium that needs to be used because because I see a pair of this is true in economics
00:29:17and I'm not so sure that maybe some of the Bitcoin Community understand all this exactly but we need me like if you take a country for example it's very deflationary if you have your population growing and growing and growing in your money supply doesn't keep up with that population it's massively deflation her so you so the idea of printing money is okay we actually don't do that and you ask me everybody's throws up turn around but we actually borrow which is even worse so we're printing bonds which then pays out we have to pay interest on that and which type is Apple China on the most part. So we borrowing putting that on her children ramping up the interest expense and then all that cash. Doesn't even stay in the US and send me like it's just the whole the whole thing is
00:30:10broken we be actually better off printing but the drinking is not the issue it's controlling the government cuz you even when gold was even when we had different monetary systems and we were always pegged to the dollar doesn't stop Congress from Printing and printing and printing and borrowing and borrowing an exact and eventually they had to break with the gold standard because so that the real issue is always more with
00:30:35the government side in the government borrowing but that that's the example that you keep got to have the currency keep Pace with your your group of people otherwise it is actually gets the point where is deflation Aaron so you could, maybe make that same analogy would you got a network that's just exploding users and apps and people using in computers using it
00:31:03velocity of money would collapse to where it's deflationary in the sense of growth I think you soon as you put that cat people view it is deflation Airy because it is and I don't know personally I'd be I'd be thinking well why would I spend it right now when tomorrow could be worth more so if I think that I think other people think that and I think it just I think you're just slow the entire system just the growth of it I mean if one person says I'm going to hold on to it now because it'll be worth more tomorrow that's one less person spending their etherium and growing the world's computer soon as that like the speed of that I mean more people go that mean the adoption rate so it's going a little slow or slower slower and that's the best you basically
00:32:03how to find the velocity velocity of each other there
00:32:15it's a good conversation I think I think there was more of a deflation your ass back to either I don't think it would hurt price long-term honestly I like the original plan which is like to have like an ice age like only so much ether was going to be mind and then there was going to be a long Ice Age were known as created and then it would spark up again
00:32:42I kind of think that I think that was the original plan of things which is why I think it even goes more to say that this probably April Fool's Alex cuz it's kind of against the original either roadmap but I think that that Ice Age strategies pretty good because you introduced like a whole bunch of inflation is inflation inflationary
00:33:07I think that's where I'm going for inflation deflation yeah and then it becomes deflationary after this Ice Age so I don't know
00:33:23I don't know maybe we should let the people in our like Chase group speak on it if you listen to this episode and you think yes either should be capped then just let us not be like at the idea if not then let us know as well I mean we're always hanging out in that River chat so speak on it or I mean this episodes going kind of long already but who gets to make that decision I thought we were supposed to come to some sort of agreement I mean it's interesting unlike Bitcoin I think you're in the conversation with the community should decide next meeting is going to come to a consensus I don't keep up with those metrics on what's consensus her if she's going to have X amount of going to get x amount of votes
00:34:23judge it is hard to judge somebody different different sides of it everyone fighting for what they think and who really controls what who controls sense consensus yeah that's my big one so slow because I think it needs 90% consensus
00:34:43after a hundred after 2440 block or something like that so it's like that stuff 90% consensus on anything is really tough especially without some sort of figurehead in do you know there's no one that everyone points do or what should we be talking about next or what does he think you know it could be good or bad I think it's be taking both ways. Move so quickly but again it was quickly so well
00:35:18any other things you guys wanted to talk about or should we just kind of bring up the quick movement of the majors and then wrap up I think that's good I mean we can I think later this week we'll get some better price action we can talk when were cats see what opportunities are out there or you know come join us in our chat room or answering questions in there again level specific I'm talking about ideas we like long and short different Generations you know Skit Guys guys and gals in their day trading with a longer-term ideas and the best way to join that Jenkins rm.com chat room on the top right for you to come on in we have some more Educational Services there as well
00:36:08that's it that's it this should be a post I think was something big that we've been focused on so with everything really so you should be sure to search for it on Twitter that distributed Post in the river chat and I will take you to that process and get you able to write and research and contribute articles to the distributor post but go ahead Alki kind of roaches here
00:36:46no I just wanted a heart bun give us a follow yeah
00:36:52follow up
00:36:54well what about so we've had a lot of growth in our general chat and it was just Coeur d'Alene to draw to the crypto team chat vajayjay you weren't outlined the difference between the two and why if you're in the general tried it might be a good push to get into the crypto team chat so just get involved with us one of our trading talk room is just I'm talking about recipes once you are talking about GDP or growth or PlayStation or just markets in general but then we have a crypto team that specifically designed for people that are in their trading crypto that we have a real-time alerts product we have analysis put it in there or Nice Shot probably 20-30 minutes of video for the team this morning just covering all the different pivot breakpoints and where we want to add and where's the risk and what we're looking for next that's that's the Pedro
00:37:54what's going on in box so I know that's more than my cable bill I think that room can
00:38:03all right look at it well
00:38:10for slightly more than your daddy say more than your cable bill or less than maybe I'm at 126 my month I don't know what are you guys I'm probably right there at 1:15 somewhere in there so Less in the cable bill to get more than a cable bills value cut out there's like a hundred channels I don't even watch so there you go we wrap it up because it episode gentle talk to everybody later this week
00:38:43alright so guess who the easiest way to get involved in our community are traitors and what we're doing and markets really on a global macro perspective is going to Jenkins rm.com we have on the top right of Link chat room it's free to join that area come in ask us questions and see what our communities all about you got a couple paid runs and Eric Rippetoe team is in there for 99 bucks a month probably one of the best real-time alert signals across the entire digital asset space and then follow the value that all the the other paying subscribers and their brains it's more than pays for itself so that's available you can also see again Jenkins rm.com the top right we have some of our Educational Services
00:39:3210 years of Mines tuition of model that I built out on trading cash treasuries that whole nine hours video-on-demand teach you everything three pillars of our model covers analysis risk execution we talked risk management position sizing trading plan psychology trading that's all there and then we also have some information on on some of our group coaching and mentoring we do we have a live room and we trade together 2 days a week nothing like being Detroit's Together live making some money together but also really learning everything in the emotions that are involved with being inside a trades and all the girls that comes from that so that's their Jenkins rm.com you guys can follow us at my Twitter handle at BJ's and Jenkins
00:40:27and you can also search Jason Jenkins on YouTube that will get a sewer blockage Capital YouTube channel
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