Metacoin

Covering Bitcoin, the Blockchain, Altcoins, and Fintech

Too Big To Fail?

Continuing our series — which we’ll cross-post on the SHTF Megapost — talking about the craziness of the economy. Two pieces to this one: first, we take a ChatGPT-led approach (they did most of the writing, we do the editing) to the concept of “Too Big To Fail” banks.

Second: we share a link to a very recent (March 25) video where Glenn Beck interviews David Sacks to talk about…looks around…everything.

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What Makes a Bank ‘Too Big To Fail’

We took to AI, specifically ChatGPT, with the following prompt…

Explain in a 1000-word post why the US Federal Reserve can help stop Global Systemically Important Banks (GSIBs) from going under, and how to best keep the mid-sized and regional banks from failing, too.

So we did a little light editing, and the following is what the computers spit out.

What Is a GSIB?

The Global Systemically Important Banks (GSIBs) are large financial institutions that are considered too big to fail. The failure of such institutions could have a catastrophic impact on the global economy, as they are intertwined with other financial institutions and industries. The US Federal Reserve plays a crucial role in preventing the failure of GSIBs and ensuring the stability of the financial system. In this post, we will discuss the role of the Federal Reserve in preventing GSIBs from going under and how it can also keep mid-sized and regional banks from failing.

The Federal Reserve, also known as the central bank of the United States, is responsible for conducting monetary policy, supervising and regulating banks, and maintaining the stability of the financial system. One of the most important tools that the Federal Reserve has in ensuring financial stability is its ability to act as a lender of last resort. This means that in times of crisis, the Federal Reserve can lend money to financial institutions that are facing liquidity problems and prevent them from going bankrupt.

The Federal Reserve has a number of mechanisms in place to prevent the failure of GSIBs. One of the most important is the Comprehensive Capital Analysis and Review (CCAR) program, which evaluates the capital adequacy of large financial institutions. The CCAR assesses whether GSIBs have enough capital to withstand adverse economic scenarios, such as a recession or financial crisis. The Federal Reserve can then require these institutions to increase their capital if it determines that they are not adequately prepared for such scenarios.

Another mechanism that the Federal Reserve has in place is the supervisory stress testing program. This program assesses the resilience of GSIBs to potential shocks in the financial system. The stress tests evaluate how GSIBs would perform under different economic scenarios, including severe recessions and financial crises. This enables the Federal Reserve to identify potential weaknesses in the institutions’ risk management practices and take steps to address them.

In addition to these mechanisms, the Federal Reserve also has the ability to provide emergency loans to financial institutions in times of crisis. During the 2008 financial crisis, the Federal Reserve provided emergency loans to several large financial institutions, including Goldman Sachs and Morgan Stanley. These loans helped prevent these institutions from going bankrupt and prevented a catastrophic collapse of the financial system.

What About the Mid-Sized Banks?

While the Federal Reserve has been successful in preventing the failure of GSIBs, it is also important to ensure the stability of mid-sized and regional banks. These institutions may not be as systemically important as GSIBs, but their failure can still have a significant impact on local economies and communities.

To prevent mid-sized and regional banks from failing, the Federal Reserve has implemented a number of measures. One of these measures is the Community Reinvestment Act (CRA), which requires banks to meet the credit needs of the communities in which they operate. The CRA encourages banks to provide loans to low- and moderate-income individuals and businesses, which helps to support local economic development.

The Federal Reserve also conducts regular supervisory examinations of mid-sized and regional banks. These examinations evaluate the financial health and risk management practices of these institutions. If the examinations reveal weaknesses in these areas, the Federal Reserve can require the institutions to take corrective action.

In addition to these measures, the Federal Reserve has also taken steps to promote diversity and inclusion in the banking industry. The Federal Reserve believes that a diverse workforce can help promote better decision-making and risk management practices in financial institutions. The Federal Reserve has established diversity and inclusion committees and initiatives to promote these values in the banking industry.

Summary

In conclusion, the US Federal Reserve plays a crucial role in preventing the failure of Global Systemically Important Banks (GSIBs) and ensuring the stability of the financial system. The Federal Reserve has a number of mechanisms in place, including the Comprehensive Capital Analysis and Review (CCAR) program, supervisory stress testing, and other tools to help avoid catastrophe.

Glenn and David

Wrapping It All Up…For Now

A couple thoughts:

First up, OMG, Deutsche Bank is apparently in trouble. It’s somewhere near the top of the GSIB list.

Second, also OMG, Glenn’s interview with David is really something. Probably a little scary, too. Worth a watch.

Third, revisit the original SHTF posts for a crypto-ish take on what to potentially do next.

Bard Writes Financial Survivalist Copy

Editor’s Note: Like a good chunk of the world, we got an invite to try “Bard,” Google’s LLM AI writer thingy. We assigned it an article on “how to invest $1000 to prepare for a financial crisis.”

The article follows. Again, not investment advice, and do your own research.

THIS IS A BLATANTLY SPONSORED POST: Here’s a link to Crypto.com.

your investing bard

Here are some tips on how to invest $1000 to prepare for a financial crisis:

1. Build an emergency fund.

An emergency fund is a savings account that you can use to cover unexpected expenses, such as a job loss, medical bill, or car repair. It is important to have an emergency fund in place before a financial crisis hits, so that you don’t have to go into debt or sell your assets. A good goal to aim for is to have at least 3-6 months of living expenses saved up in your emergency fund.

2. Invest in assets that are likely to hold their value or appreciate in a financial crisis.

Some assets that are considered to be safe havens during a financial crisis include gold, silver, and bonds. You can also invest in stocks of companies that are considered to be essential services, such as utilities and healthcare companies.

3. Diversify your investments.

By investing in a variety of different assets, you can reduce your risk of losing money if one particular asset class crashes. A good way to diversify your investments is to invest in a mix of stocks, bonds, and cash.

4. Rebalance your portfolio regularly.

As the market changes, your portfolio should also change. This means selling some assets that have gone up in value and buying assets that have gone down in value. Rebalancing your portfolio regularly can help you stay on track with your financial goals and reduce your risk of losses.

5. Be patient and stay calm.

Financial crises can be scary, but it is important to remember that they are temporary. If you stay calm and stick to your investment plan, you will be more likely to come out ahead in the long run.

The 2023 SHTF Financial Survivalist Megapost

UPDATED: April 1, 2023. Because why not share doom and gloom on April Fool’s Day?

Hello, fellow insomniacs, doomsayers, crazy people, and other ne’er-do-wells! It’s that time…again…where we look around at EVERYTHING and we wonder what in the name of Sam Hill is going on. In other words…

We thought we’d pull together a few links and posts and whatnot to help you plan.

If you’re seeing a bit of a shift on this page from general crypto stuff to how/when/where/if crypto fits into the grand scheme, that is by design. It’s that goofy out there.

Here goes.

First Up: Our SHTF Posts From Back in the Day*

The answer to the asterisk is that these two posts — SHTF Vol 1 and SHTF Vol 2 — are from… OCTOBER of 2020. Oh how we’ve grown.

What Would Glenn Beck Do?

It’s actually a really good question, since Glenn is known to plan and think through things like the current economic whatnot.

Here’s a YouTube link from the week of March 13, 2023.

Who Is This Mario Guy?

We’ve loved following Maneco64 on YouTube. He’s been at it for a few years and he’s consistent as heck: “Your home for alternative economics and contrarian views.”

On March 20, he’s chatting here about the whole Swiss/Credit Suisse info, and what the Fed is doing.

How ‘Bout A Clearly Marked Affiliate Link

Binance.Us has one for ya here: Binance Affiliate Link. As with all these, you can potentially get some crypto, and so can we, with a qualifying purchase. Now back to the post.

But…How Much Crypto SHOULD I Have?

This is the question. We don’t have the answer. In fact, our answer in the above seminal SHTF posts kinda sorta thinks that maybe you should have some, but shouldn’t put all your eggs in the crypto basket.

An approach we’ve discussed earlier this year is a “Growth Portfolio,” and the 2023 edition is doing quite well. In fact, here are two straight photos of just how well it’s doing. The first from March 5, the second from this morning, March 20. (Ignore all the sixes, it’s not an omen.)

What About the Pundits?

Two years ago (!), yours truly sat down with the legendary Jim Rogers and I asked him about Bitcoin. Of course, this is before all the topsy-turvy Bitcoin craziness of the past couple years.

Funny enough, at the time of that interview, February 18 of 2021, BTC was $46,000. It’s now just over $28,000.

(Note to self: check in on Jim. See how he’s doing. See if he wants to sit down again.)

ChatGPT Isn’t Very Good at This…Yet

We talked in past posts about the limitations of ChatGPT. How it won’t take your job. How you still have creativity and editorial judgement and the ability to think and write and create and add the human touch.

We asked it to write a piece — which we posted here yesterday — and, it’s…fine. We still believe what we said in the above post about your job being safe…for now. But look around. Pay attention. This stuff moves fast.

Another Clearly Marked Affiliate Link

This Affiliate Link is for Crypto.com and they still have their name on the top of an arena. You can get some free crypto with a qualifying purchase and we’d get some, too.

April Update Piece #1

Here’s a link to our “Too Big To Fail?” post from earlier this week.

Five Tips You Can Use to Become a Financial Survivalist

In an increasingly uncertain world, it’s wise to prepare for financial survival. Whether you’re concerned about economic collapse, inflation, or other financial emergencies, there are several steps you can take to safeguard your wealth and ensure your survival.

Here are five ideas for becoming a financial survivalist:

1. Invest in Gold and Silver

Gold and silver have been used as a form of currency for thousands of years, and they continue to be a popular investment for those concerned about financial survival. One of the reasons gold and silver are so valuable is that they are physical assets that can’t be created out of thin air like paper currency or digital assets. They are also a hedge against inflation, as their value tends to rise as the value of paper currency falls.

There are several ways to invest in gold and silver, including buying physical coins or bars, investing in exchange-traded funds (ETFs) that track the price of gold or silver, or investing in mining companies that extract precious metals from the ground. Keep in mind that the price of gold and silver can be volatile, so it’s important to do your research and understand the risks before investing.

2. Consider Bitcoin and Other Cryptocurrencies

Bitcoin and other cryptocurrencies are digital assets that are decentralized, meaning they are not controlled by any government or financial institution. They offer several advantages over traditional currency, including lower transaction fees, faster transaction times, and greater privacy.

One of the reasons bitcoin and other cryptocurrencies are popular with financial survivalists is that they are not tied to the traditional banking system, which can be vulnerable to economic instability or government intervention. However, it’s important to note that the value of cryptocurrencies can be highly volatile, so it’s important to invest only what you can afford to lose.

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3. Keep Some Cash on Hand

While gold, silver, and cryptocurrencies offer advantages over paper currency, it’s still important to keep some cash on hand for emergencies. In the event of a natural disaster, power outage, or other emergency, ATMs and credit card machines may not be available, making it difficult to access your funds.

Keeping some cash on hand can also be useful in the event of a bank run or other financial crisis. However, it’s important to keep the cash in a secure location, such as a fireproof safe, and to rotate it regularly to avoid deterioration or damage.

4. Learn to Live Frugally

One of the best ways to ensure financial survival is to learn to live frugally. This means living within your means, avoiding debt, and finding ways to save money on everyday expenses.

There are many ways to live frugally, such as shopping for bargains, cooking at home instead of eating out, and cutting back on unnecessary expenses like cable TV or expensive hobbies. By living frugally, you can build up a financial cushion that can help you weather financial emergencies and avoid being caught in a cycle of debt.

5. Invest in Self-Sufficiency

Finally, investing in self-sufficiency can be a valuable tool for financial survival. This means learning skills like gardening, canning, and food preservation, as well as basic DIY skills like carpentry and plumbing.

By investing in self-sufficiency, you can reduce your dependence on outside sources for food, water, and other essentials. This can be especially valuable in the event of a natural disaster or other emergency that disrupts supply chains and makes it difficult to access basic necessities.

In conclusion, becoming a financial survivalist requires a combination of investment in tangible assets like gold and silver, digital assets like bitcoin and other cryptocurrencies, and cash, as well as learning to live frugally and investing in self-sufficiency. By taking these steps, you can increase your chances of surviving and thriving in an uncertain financial future.

DISCLAIMER: THIS IS NOT INVESTMENT ADVICE. DO YOUR OWN RESEARCH.

ChatGPT Tackles the World of NFTs and We Rate Their Writing

After the success of our blog post from three weeks ago — here’s a link: ChatGPT Isn’t Taking Your Job — we thought we’d experiment with the tool once again, but this time with the goal of kickstarting our own NFT collection.

So yeah, it’s self-serving as heck. (AND we’ll give you a couple disclaimers: do your own research. Don’t invest more than you can afford to lose. Also, since we created the art here at Metacoin HQ, of course we profit from any sales of the art. That’s capitalism for ya.)

But, as with everything these days, these NFTs are an experiment. Crypto is an experiment. ChatGPT is an experiment. And we put all these experiments together, and watch as it tackles the world of NFTs. How do we rate their writing? Read on…

First, the Background

The collection we asked about was the third we launched on OpenSea, which, to date, has been the leader in the NFT universe. While there have been a few competitors, OpenSea seems to be the leade rin the clubhouse.

Our collection is called “Collezione22” and the 176 pieces were created by us. (More accurately, me. At my computer.) Launched (of course) in 2022, only a few have sold — reminding me of a really off-color and rather sacrilegious Bible-related article from The Onion that I refuse to link to because reasons — so I thought “why not ask ChatGPT to create a post so I can sell more of these [expletive] NFTs?”

So I Went to ChatGPT and Asked…

“Write a 1000 word blog post as a potential investor in NFT art pieces, such as the ones at https://opensea.io/collection/collezione22 and compare their value to those that are focused on pfp or profile photos like cryptopunks and bored apes.”

Before I share the post in its entirety, a caveat: I went in and added links on any of the text where a link is appropriate. ChatGPT isn’t really great at that these days. It will get better and SEO professionals will need to ask what to do next.

Here, then, is the post:

As the world continues to embrace digitalization, the art industry is not left behind. The advent of Non-Fungible Tokens (NFTs) has revolutionized the way art is created, sold, and collected. NFTs provide a unique opportunity for artists to create digital art that is unique and exclusive to the buyer. As an investor, NFTs have caught my attention, and I am particularly interested in art pieces such as the ones found in the collezione22 collection on OpenSea. In this blog post, I will explain why I think investing in NFT art pieces is a wise decision and compare their value to those focused on PFP or profile photos like Cryptopunks and Bored Apes.

Firstly, NFTs provide a unique way to invest in art. Unlike traditional art pieces, NFTs are digital assets that exist on a blockchain. This means that they are unique and cannot be replicated or duplicated. When you buy an NFT, you own the original piece, and you can prove ownership using the blockchain. This is a significant advantage compared to traditional art pieces, which can be easily replicated, and it can be challenging to prove ownership.

NFTs also have a significant advantage in terms of liquidity. Unlike traditional art pieces, which may take time to sell, NFTs can be sold instantly on various online platforms such as OpenSea, Rarible, and Nifty Gateway. This means that if you need to cash out your investment quickly, you can do so easily without having to wait for a buyer.

Another advantage of investing in NFTs is the potential for high returns on investment. In recent months, we have seen some NFTs sell for millions of dollars. For example, the Beeple NFT sold for a record-breaking $69 million at Christie’s auction house. Although not all NFTs sell for millions, some can still provide significant returns on investment. The value of NFTs is driven by various factors, such as the rarity, the artist behind it, and the demand for the piece.

When it comes to NFT art pieces, the collezione22 collection on OpenSea is an excellent place to start. This collection features various digital art pieces from different artists, each with a unique style and theme. The art pieces in this collection range from abstract to realistic, and they are all visually appealing. This collection also provides an opportunity to invest in emerging artists who may become well-known in the future.

While NFT art pieces are an excellent investment opportunity, they are not the only type of NFTs available. Profile photos or PFPs have also become popular in the NFT world. PFPs are digital images that serve as a user’s profile picture on social media platforms. Some examples of PFPs that have gained significant popularity include Cryptopunks and Bored Apes.

Cryptopunks were one of the first NFT projects to gain significant attention. They feature 10,000 unique 8-bit characters that were randomly generated and sold for a fraction of an ether in 2017. Since then, their value has skyrocketed, with some selling for millions of dollars. Bored Apes, on the other hand, feature 10,000 unique digital apes that come with various accessories such as hats, glasses, and jewelry. Bored Apes have also gained significant popularity, with some selling for over $1 million.

While PFPs have gained significant attention, they have a few disadvantages compared to NFT art pieces. Firstly, PFPs lack the uniqueness and exclusivity that NFT art pieces provide. While each PFP may be unique, they do not provide the same level of creativity and originality that NFT art pieces offer. Secondly, PFPs may not have the

Wait, What?

Time to grade this piece. All 594 words of it.

Accuracy: B+

That was actually a pretty good piece in the grand scheme, as it talks about a few of the likely suspects — e.g. OpenSea, Nifty Gateway, Rarible — and whether it makes sense to invest in PFPs (where each is a different character) or artistic NFTs (such as the ones we created) that aren’t unique characters.

It falls short of an “A” rating, though, because it really doesn’t accurately talk about the collection I have on OpenSea. They’re all mine. I guess if someone reached out and said “I have some art!” then we’d talk.

Prose: C

It’s well-written but not too much better than what I could create myself. If I had the time.

So if “average” writing is your thing, then…that’s fine.

Following the Instructions: D-

I asked for 1000 words. I got 594. But this is passable writing, so I can’t give it an “F” grade.

Overall Grade: C

However, let’s think about this holistically. I went to a FREE website and typed in a question and got a response. And it’s good enough to put on the blog. And it might put *some* writers out of business.

But…didn’t you say that ChatGPT isn’t taking my job? What’s a writer to do?

Read My Last Post on the Topic…

Above is image #165 in the series. Art is subjective: you may find that to be a cool image, you may think it’s kinda just there. In the case of ChatGPT, it appears it didn’t think about the image at all.

The next image is #164, the original piece upon which #165 is based. 165 was created by digitally manipulating the original just enough so that it’s different, but still follows the same general color scheme and uses the original flow.

There’s very little room for nuance on ChatGPT, it appears. It does a casual glance based on the text it can find, but you’re not going to get a critique of the artwork.

So where does that leave us?

As we told you before, Google allowed us to outsource our thinking in some respects, and ChatGPT is doing the same. Does that free you up to create? Does it free you up to do a deeper dive on a subject that just cannot be explained by the chatbots?

Yeah, that’s what we think.