# 25 Sept - RV - Daily briefing with Raoul Pal

## Raoul thoughts on China extending ban to Crypto
- Cleaning the leakage and preventing illegal capital flight
- Not big news as we have seen similar news in the past
- Competition for electricity and other commodity resources in china
- China CBDC is coming soon

## Bitcoin following path of 2013. ETH, SOL, following path of 2017.
https://twitter.com/RaoulGMI/status/1441559246705942528

## SEC Gary Gensler
- People trained in negotiation skills will set the boundaries high and then look to the negotiation table.
- Several agencies might regulate crypto. Internal fight and politics within the agencies.
- Security laws written in 1934 are not suitable for this current time. Security laws might have to change.
- 99% and 1% and consumer safety. SEC should not prevent the 1% to access tokens
- Risk warnings should be included.
- There will be court cases and might scare occasionally investors and impact the market.
- Eventually SEC will work with everybody in the industry
- Similar issues happen with the internet in 1997

## Leverage & Crypto
- It's a feature of the markets. Recently it's coming down.
- Leverage in Crypto is fully collateralize and it's a key feature to make market robust. In Crypto there are no margin calls like in the future markets.

## Crypto Conferences
- Pivotal moment. Most of the attendees were Hedgefunds, large Banks and funds. Most the contents were related to Crypto.
- World is combining between crypto and financial world.

# Risk on tightening by the Fed
- We are not at that point of the cycle. When it happens, it will be a trade off.
- Shrink the balance sheet might happen in 2022, then is when you have to worry about it.
- Markets don't fall from raising rates until a year after that.

# Closing thoughts.
* Network adoption is strong. Correction might finish in the next following days and.
* Oct and Nov December could be ridiculous.
* Raoul is paying attention to ETH/BTC ratio. He has no cash left to add on the market :)