 Welcome to Digital Asset News that gets up stories in crypto, current digital assets and bring them down to bite-sized pieces today. Fascinating stuff. First up, Filecoin Token, which was just listed this morning, sees a almost 300% increase in a day as Gemini Kraken announced the listing. Now we're going to take a look at what happened in a very short amount of time and it's going to blow your mind also. Next up, Polkadot's tokenized Bitcoin wants to bring DeFi beyond Ethereum. I'm going to take a look at exactly what was wrapped Bitcoin and what it could potentially be and do. Next up, Bitcoin is getting two major improvements in historic code update. And if you know anything about Bitcoin, it rarely does this, so this is kind of like a big milestone. And finally, how much Bitcoin does it take to break into the 1% club? I'm going to look at different theories about what it could be. Some people say it's 0.28, some people say it's up to 15, and while I'm going to tell you, they're all wrong. But before we get into that, let's take a look at what's going on with the market. So today it is Thursday, October 15th, almost 1pm, Texas time. And what do we got? Well, Bitcoin is almost at 11.5, so not too bad at 1.6%. It's up though, 7.5 almost, or more than that, with a 7-day period. So I'll take those numbers. Ethereum 377, I'm hoping to see a breakthrough at 400, but we will see. However, it is up 10% for the week, so I'll take that W. Tell us, Tether, XRP, watch out, 0.2%, Bitcoin Cash, 3.7% up. And remember, Bitcoin Cash is going to do a hard fork pretty soon, I think it's November. So you could potentially have a big little windfall in your hands, but just be aware that a lot of the things that have forked off of Bitcoin didn't do so hot. So this again is a fork of a fork. If I had to put money on anything, it would probably just be Bitcoin Cash. Binance Coin up 2.7, which is great. Congratulations to the big Binance Coin holders. Chainlink up 20% for the week, and only 0.8 for today, but hey, I'll take that one again. Polkadot, Cardano, Litecoin, Bitcoin SV, everything's up. This is a pretty good day. Not that it's up massively, but just a little bit of a stride, and we will take it. And what's up big time? Ah, Filecoin. Filecoin is up 101%, and if you notice, it's in a 24-hour timeframe, and then of course the 7-day, there's nothing there because this is the first couple of hours that's actually been listed, and it's sitting at around 60 bucks right now as we see it. So let's break into the top story because this to me is fascinating. Actually, before we get into that Filecoin, I want to share with you this video. It was fantastic. It was from CJ. He had shared this, and he's over there at Market Rebellion. And it's actually Peter Lynch, and he's talking about when do you sell? Obviously, he's not talking about cryptocurrencies, but it's sage advice, and it's interesting to see that one of the big players was wrong multiple, multiple times, and really goes and talks about, hey, just be an investor. So take a listen. Funny in the stock, all you can lose is 100%. I've done that. And your great mistake is selling a good company, and it doubles, and it triples, and it quadruples, because you make a lot of mistakes, and so it's ones that go up tenfold. I call them the ten baggers. Some of my mistakes just saying, oh my god, this stock is too high, and I was wrong. And you had to figure out what inning am I in this baseball game. I sold Toys R Us way too early. It went up 20-fold after I sold. I did the same thing at Home Depot. Those are probably my two greatest mistakes I've ever made. When should you sell? Well, you ought to find out why you bought a stock. If you're saying it's a sickle company, and they're doing poorly, and they're doing awful, you wait till things are getting better, and they're doing terrific, and then you sell it. But with a growth company, you have to say, Walmart's case, ten years after they went public, you could have bought the stock and made 500 times your money. Because they're still only in 15% of the United States. And they could say, why can't they go to 17? Why can't they go to 19? Why can't they go to 23? So for the next four decades, they went around the country. So you have to say to yourself, in this stock, I have a 10-year story, a 20-year story, I'll be able to write that down and follow that. That's what I do with the company. And that's your decision. That's how you sell it. No, you still buy a company, and you buy a company to grow. And if it's a textile company, or it's a bronze company, a software company, you better understand what they do. And if they do well, the stock will do well, no matter what happens to the market. If the Dow Jones today was 1,000 or 500, you would have made a lot of money in McDonald's. You would have made a lot of money in Johnson & Johnson. You would have made a lot of money in Gillette. These companies' earnings have gone up a lot the last 30 years. And if the market was 50,000, you would have lost money in Burlington Industries. I recommended that in 1969. I think it's gone from 34 to 2 with no stock splits. These earnings have been terrible. Well, your honesty actually makes an important point, which is people with the best batting averages in the world don't bat 1,000. I sometimes get angry mail, particularly in bear markets, saying so-and-so recommended sets and sets, and it went down. Well, how often did you come up with a clinker? Well, this is a funny business. You don't have to write even 5 times out of 10. If the times you write, you make a double and triple. It offsets all those times you lose 20% or 30%. So when you buy a cycle, it says, how much can I lose, and how much can I make? And you ought to be able to make a lot. So again, the investments that you make, are they symmetrical or asymmetrical? I can tell you right now, in my opinion, cryptocurrency assets are a vastly asymmetrical investment. The downside is, yeah, you could lose a lot of money, but the upside is tremendous. So those are just my thoughts. Now let's go back to the big article. So what's going on? There's a thing called File and it's blowing up. So here's what we got. Filecoin is basically a distributed storage network based on a blockchain mechanism. Unlike proof of work, Filecoin leverages proof of storage itself. In short, the miner's power is in the consensus protocol is proportional to the amount of storage it provides. And you really got to think about, well, what does it do? What is the whole purpose of this? And it was quite a question by crypto personality John Carvalho. I don't know who that is. He asked if anyone could articulate the need for the token for the purpose of cloud storage. And it's a good point. Like, I mean, if there's cloud storage, there's cloud storage everywhere, right? Amazon Web Services, Amazon does that. Android Services for your phone. The iPhone as well and the iCloud. I mean, every place has cloud storage. So why we need this? Well, think about it this way. Where do they store this information? Well, it's on servers and it's in these huge warehouses where they have to either buy the space or rent the space. Then the servers themselves, which they have to also purchase, which will run down because that's massive overhead. You can make a lot of money, I'm sure, but it's kind of, if you really look at it kind of inefficient, but what if you could use the resources that are in everybody's computers or everybody's phones or wherever else it is? And this is how I see it. If you're able to use unused storage so people can store their pictures and data and things like that, that seems like a better proposition and probably a cheaper way to do things than by having a centralized server, which is super high cost. So that's how I see Filecoin. And I have to say that Filecoin sounds super boring, but today it was anything but going back in history, Filecoin event marks one of the most highly anticipated launches in the industry. And rather than waiting for the network and its token to go live, several exchanges hopped on to list the coin, which is kind of funny how some of these exchanges, they're really staunch like, well, we can't list this one because it doesn't have a mainnet. Well, didn't seem to matter here because even for the launch of the mainnet, Filecoin noted an increase of a whopping 270% over the last 24 hours according to coin market cap or as I call it Binance cap because that's who owns it. At the time of writing, token was priced at 110 bucks and it held a market cap of about 24 hours of trading volume. So what really is going on can be just summed up in this chart. Look at this nonsense. So trading went live at 8.30 Eastern time. Looks like it started off around somewhere around 30 bucks. Okay. So when you get in there, I mean, you could have just got in early like, hey, here it is. You know, here's my 30 bucks. And then you see this like, oh, 31, it's going up. And then boom, it goes down 28. I'm losing. I got to sell. And then of course, what happens? $97. And then what happens? 94. Not too bad. And then it hits this big peak. And at this point, this is where everybody kind of goes wrong sometimes. They go, wow, it started off here. I got in here. I'm going to 105. It's never going down. I'm the best trader of all time. I'm a super genius. Everybody look at me. And here's the thing. That's exactly what I thought in 2017 during the parabolic bull run. And look how that turned out. So in 2018, everything crashed down. It's the same thing here. And if you ever meet a person who says, I can time the top run away because they are full of it. And this is a pretty good case. So we have 105. I'm hoping people sold. And it looks like a lot of people did because this is exactly what happened. 95. 86. 84. 72. 68. 63. And now we go to 55. 81. However, you have to understand, even if you're 30, what is that? That's like 50% gain or somewhere around there. 60%. You're still up pretty well. Where will it actually end up at the end of the day? Who knows? But the big thing is don't chase shiny objects as much as you can. Look at the team. Look at what it does. Do you believe in the project? Do you believe it's going to be there for a long time? Now you can trade. I'm sure this was pretty fun if you did it. You know, just like, hey, I'm going to time it and time it and whatever you want to do. But I don't like to do that too much. A lot of stress for me. I got other stuff going on. So I just invest. I'm not going to invest in Filecoin per se, but I just thought it was an interesting example of how things can go a little bit crazy. In the crypto world. And this isn't the first and it's not the last. But let me know what you think of the comments section and let's move on. Next up. Polkadot's tokenized Bitcoin wants to bring DeFi beyond Ethereum. So what is this? Well, this will bring Bitcoin's liquidity to DeFi applications on Polkadot and its network of parachines. When we think of DeFi, mostly it's all built on Ethereum. You're actually 20 tokens and Bitcoin can't do that. They can't just go from Bitcoin or, you know, on the Bitcoin network over to the Ethereum network. It does not work like that unless you wrap it. So Polkadot introduces tokenized Bitcoin blockchain teams are working to replicate the grand success of tokenized Bitcoin products like wrapped Bitcoin. So we have to take a step back and we want to bring everybody up to speed. So what is wrapped Bitcoin? So this was an old article just so you know, in January 31st, 2019, this is not new. But it just goes to explain what exactly wrapped Bitcoin is. So wrapped Bitcoin launched on Ethereum allows users to make Bitcoin based transactions on a different blockchain. Wrap Bitcoin officially became a tradable ERC-20 asset on Wednesday evening as a Bitcoin based derivative token. Wrap Bitcoin is minted when actual Bitcoin is deposited with a custodian. That's the big thing. It's with a custodian, a centralized figure, person, entity, conglomerate, something, a custodian on a one-to-one ratio. So you give over some Bitcoin, they give you some wrapped Bitcoin and it's wrapped in ERC-20 token. This allows traders, and of course this is the question, why? Why? What is the point? This allows traders to effectively use Bitcoin's value on Ethereum and its dapps. For example, on a decentralized exchange like a Uniswap, like a SimpleSwap, like something like that. So I always think is like, what's the point? I mean, couldn't you just take your Bitcoin and then sell it for Ethereum, then take that Ethereum and then transfer it over to your wallet and then use that in the decentralized exchange. You can or you just do a wrapped Bitcoin as they call it. So there are some, there's a little bit of a benefit here and there. And of course, what will be great now is if we are able to do that on Polkadot. Because Polkadot, you're not wrapping it into an ERC-20 token, it's in the Polkadot. And the Polkadot chain or the Polkadot token, what's great about that is Polkadot doesn't just deal with ERC-20. It is interoperability across a broad spectrum of blockchain. So you're not just stuck with going to the Ethereum, which a lot of things are built on Ethereum, let's be honest. But you have a lot more options and that's the big thing. So a cross-chain bridge will onboard the Bitcoin's liquidity, the Polkadot's ecosystem. After the Bitcoin parachain goes live in Q1 2021. And let me just tell you this, that's amazing that they're able to say, hey, we have a, this is what we want to do. This is our project and we're going to get it done like four or five months because, you know, in March, that's the end of Q1. So if they get it done before then, that's amazing. Think about any products out there that are just really lagging behind. And these guys are like, hey, we're going to do this in like four months, no problem. Users will be able to lock their Bitcoin and issue POCA BTC, which is one-to-one backed. Similarly, to redeem their Bitcoin, users will have to burn POCA BTC on the BTC parachain. So to issue it, you go from Bitcoin to this wrap Bitcoin, you can do whatever you want to. But then to redeem it, get your Bitcoin back, you got to burn it, yeah, destroy the Bitcoin back token. So interesting concept. So what's the advantage? Well, the advantage is Bitcoin and POCA DOT is that the network is highly interoperable, we just talked about. This means that Bitcoin can do more by interacting with multiple blockchains all at once. This means that DeFi and POCA BTC could spread quickly beyond just the Ethereum ecosystem. So that is the whole big thing. And just as a recap, I want to go over one thing. What is POCA DOT? And this is from POCA DOT.network, just what everything is. And why is it so great? So POCA DOT is a next generation blockchain. Just know that. And the reason why I invested into this and I believe into it is mostly because of Dr. Gavin Wood, who was one of the founders of Ethereum or the Ethereum Mafia, as I have to call it. This guy's already done it one time and he's got a great idea. And he was essentially the CTO, the chief technical person along with Vitalik and a couple other people. But he was one that really made it go. And I read this book. It is fantastic. If you got an opportunity, pick it up. It's called The Infinite Machine. And it goes over the history of how Ethereum was created, the different bumps and obstacles along the way, and how they got it actually to market. And it was fascinating. And the information about there about Dr. Wood or Gavin, it was essentially why I invested into POCA DOT because of that book. Anyhow, what does POCA DOT do? Well, it scales easily. Blockchains and isolation can only process a limited amount of traffic. POCA DOT is a sharded multi-chain network, meaning you can process many transactions on several chains in parallel, eliminating the bottlenecks that occurred on legacy networks, Bitcoin, that process transactions one by one. And Ethereum 1.0 is one of those as well. So that's big for scaling. And as we start to build up, we need to have those high transactions per second, just like what Visa has. I mean, $150,000 is pretty darn good that Visa can produce as opposed to Ethereum's $17,000 to $45,000 and Bitcoin $6,000 to $10,000. So we need that to happen. And it goes over how to specialize in the work together and self-covering and all that stuff. But to me, that's the big one. It's all interoperability, and it's going to make everything a little bit smoother, a little bit better, and a little bit faster. So let me know what you think in the comments section. Let's move on. Next up, Bitcoin's getting two major improvements in code. That's big because it rarely happens. So what's going on? The much-awaited Schnorr and Taproot proposals, first of all, horrible name, Schnorr, were implemented to Bitcoin Core earlier today as per history available on GitHub to check it out. When activated, they will bring about better transactional capabilities. That's huge to Bitcoin while increasing the network's privacy features. So that's enormous. We're going to have better transaction and more privacy features on Bitcoin. Who doesn't want that? I've been a big negative Nelly about the ability of Bitcoin to be an actual currency because I always talk about in 2017 what happened when people started to use it more and more and more. The fees became outrageous and the transaction times were just ridiculously slow. It sometimes would take days to move Bitcoin. That's not what it was developed for. So if this happens, I will be eating some crow if this can actually happen. But it's exciting time. Hopefully it does. So as far as testing, they've undergone one month of testing. Hopefully they do months, but whatever. The Taproot proposal alone saw over 150 developers reviewing the code. And that's one of the big things about Bitcoin. It moves slow. It moves slow because they're very cautious. And there's two ways of thinking about it. Be cautious and be perfect and then release it. Cardano does the same type of thing. Or just start building, throw it out there and see what breaks. And that's kind of the theory behind Yarn and Wi-Fi. And Kronhe, the developer or the founder that did that. They just say, hey, Kronhe's like, I'm just going to, I'm not going to do a test net. I'm just going to start building, throw it out there and whatever breaks, I'll fix it later. And it keeps breaking. Of course, he fixes it. The problem is it gets hacked and people lose money. And that's a big thing. So there's advantages and disadvantages for both ways of doing it. But I mean, that's above my pay grade. So I kind of do like this conservative approach a little bit more because I'm a little bit more on that side, but everybody's got their own opinion. Anyhow, moving down, Schnorr is an alternative to Bitcoin's current multi-signature wallet mechanism, which as the name suggests, uses multiple private keys to facilitate a transaction from a Bitcoin wallet. However, the Schnorr update combines multiple keys to a single key when a user transacts using Schnorr. This is definitely reduced to the data size of multi-sign payments and helps to adjust the network. So essentially they kind of go in reverse, it sounds like to me, but it does reduce the congestion. Maybe the TPS or transactions per second will actually be increased. And that's good news, I suppose. Taproot takes Schnorr further by introducing a new transaction output version and new ways for users to define conditions for when they spend Bitcoin, which one advantage that of even following users under very certain conditions, they can regain their lost coins. Let me say that again. Under very certain conditions, you can regain access to the lost coins, and this is huge because if you look at how much Bitcoin, this is all debatable, how much has actually been lost. In 2010, 11, 12, people were throwing away their computers with Bitcoin on it because it's only like with pennies, you know? So why would I keep it around? And PCs sometimes break down and it's easier to just throw them away and not transfer anything. So we've probably lost, who knows, two to four million, six million on the high end, if you believe some studies. And we're going to go over that in the next article about the 1% to be a Bitcoiner. But I think this is enormous because this is one of those barriers to entry that we talk about as far as people getting into cryptocurrency. The last that's which is, hey, if I send it the wrong person or the wrong address or just screw up, it's gone, right? I can't call customer service like I can with my bank. Yep, that's right. So if you screw up, it's gone. And that's one of those things about becoming your own bank. It's a pain. It is a little bit of a pain because we rely on the banks to do all these different types of things. But there are the advantages of being your own bank and being in charge of everything and not getting screwed over by the big bankers. And this is just one of those problems. So I think it's interesting that this is going to, they're going to allow to access lost coins. I don't know how it's going to work. We'll see how it all gets rolled out. But again, this is a, it's a pretty big deal because there's very rare times when Bitcoin gets any upgrade or any type of new code because it takes a long due thing. So we'll see how it all works out. Let me just think of the comments. Let's move on to the last article. Last up, how much does it take to be in the 1% club? I always love these stories when I first got in because I'm like, I want to be there. I want to get that. And over time it's morphed into like these wildly ranging numbers between, you know, from now on this article talks about 0.28 to 15 Bitcoin, which I think is ridiculous. But here's what it all says. So 1% club is when someone's in the top 1% of Bitcoin holders. Got it. So there's the first analogy or analysis with my Jake Levison. And this is in 2002. An analyst for BlockWorks Group. He said, if you own 0.28 Bitcoin, you're statistically guaranteed to be in the richest 1% of the world in Bitcoin terms. And the problem with that, and I'll tell you why, is because he took the total amount that would ever be mined as far as Bitcoin and said 21 million divided by the total population, which was around 7.5 billion at that point. And you'd get 0.28. Well, there's some flaws there. First of all, to get all the Bitcoin mined, it's going to be in the year 2140. So I'll be dead. I don't really care. And the second thing is, is that that assumes that everybody is going to have their hands on Bitcoin. That's not going to happen. Okay. 7.5 billion people. Sorry. So 0.28 is on the lowest side. And I don't think that's even remotely possible, but it could be wrong. And also, of course, what we just talked about in the last article where we said that, you know, between 2 and 6 million Bitcoin is just gone and lost forever. And I really wish that would be reflected in the price for these different market caps like CoinGecko. I don't know if they really take that into account because, I mean, I just don't see how it's that low. So, actually, let me go. I want to see something on CoinGecko. So if you click on Bitcoin or any cryptocurrency, whatever else, they'll talk about, yeah, right here, circulating supply, 18.5 million. Well, that's not happening. I'm telling you that right now. That actually applies to 21 million. So 18.5 million. In reality, I think it's more like 15.5, 15 million somewhere around there. And that would drastically affect the price right now. But they can't quantify that. So whatever. Anyhow, and then here's the high end. 15 Bitcoin is the magic figure by BlockLink. This conclusion disregards wallets and address data and assumes no lost Bitcoin again, which is dumb. And they said 15 million. Okay. And then also you have to remember that there are multiple Bitcoin addresses. Like I personally own at least 10. They're in my various nano ledgers. They're on my various exchanges that I use. So on all those different addresses, I mean, it's all mine. If you had them all up, I got more than one, but a lot of them aren't that much. 0.1. So if you had like 10 different addresses, 0.1, 0.1, 0.1, 0.1, you got one Bitcoin. But it looks looks like, you know, this address is this address X, Y, Z, blah, blah, blah, only has 0.1. And that's not how it is. It's just one person has a ton of different addresses. And it's hard to quantify that. I mean, moving down, this was the latest one. This is from bit info chart. And what it comes down to is this, it says, here's the balance of Bitcoin. Here's the, how many addresses, the percent of addresses total and the coins. So if you look at what could be the 1%, here's 2%. It's not bad. And the balances of those addresses, and there are 655,744 addresses that have between one and 10. It's about 2% people. So between somewhere between one and 10 is probably the sweet spot. I have to think really in realistic terms, I think it's got to be somewhere between one and two. If you got one and two between one and two Bitcoin. First, I mean, maybe you're not in the 1% of the 0.1% of whatever else it is, but it's pretty good as time goes on, especially with what's going to happen, everything that we've seen over the last couple of months. I mean, institutions are pretty much fumbling in. We've talked about banks getting into the fray. We've talked about big institutional players. So I think if you got one and two, that's your way ahead of everybody else out there, especially right now, especially right now. And of course, this chart doesn't take to account multiple wallets. So that's also a problem. But yeah, if you got anywhere between one and two, I mean, you are way ahead of the rest of the population as far as globally. So let me know what you think of the comments section. And that is it for today's video. If you're looking at an alternative to Coinbase or whatever exchanges you have, I've got the exchange of wallet fees. It's just a breakdown of all the different fees and all the different interests that you can gain for wherever you put your cryptocurrency. My one, two, three punch. Kraken, Celsius and Voyager. I like Celsius because I have, first of all, the fees. Well, I don't really buy anything. I buy anything from Voyager. But then the fees for Celsius are the actually interest rate that I get. I have over 30%. Now it's over 30% of my portfolio on the Celsius Network, the Celsius platform. And the interest rate is pretty good. I love them. So far, doing pretty good. But you can look at everything. I got Celsius, Voyager, Gemini, Gemini Pro, Binance, Uphold, Abra, SimpleSwap, Uniswap, Cash App. I don't like them. EatToro. Don't recommend them in Crypto.com. So take a look at that. And of course, if you sign up, use the affiliate link. You don't have to. You can go right to the exchange or wallet and download it or sign up. But if you use the links, it gives you between 10 and $25 just for signing up. And that is it. So thanks again for sticking with me. If you like those types of videos, I mean, two months going to pop up on your left and right. Don't know because YouTube does all that stuff. And that's all we got. So thanks again. See you on the next.