 Welcome to Digital Asset News, the guitar stories and cryptocurrency digital assets and bring them down to bite-sized pieces. Today we've got some good stuff but at first glance it just makes me think to myself yeah right because I'm so sick of hearing about Bitcoin to a million but that's not what this is about. This is about what smart money is doing. So Fidelity Digital Assets validates a model that predicts Bitcoin price at one million. Whether you believe that or not is irrelevant because the next story talks about how the Fidelity President files for a new Bitcoin fund. So I am always interested to see not what people are saying but what they are doing and this to me is big news. Also we're going to go over Q and C of the day and I'll explain that when we get to that section but the question of the day just talks about cryptocurrencies and digital assets and the difference between and also we're going to take a look at the Ethereum mafia and where I got it wrong. But before we do that let's take a look at what's going on in the market today August 27th and it is about one o'clock Texas time p.m. and it looks like Bitcoin is taking a little bit of a tumble. Bitcoin down to 11.25 1.7% man seven days down 4% hopefully we can see some better days but look we're early it's going to go up it's going to go down what are you going to do now the cost average just forget about it Ethereum 380 that looks pretty good even though it's down almost 2% it's still teetering on that 400 mark and that's what I want to see and then the two stablecoins tether and xrp here I know xrp isn't a stablecoin but boy it sure acts like it looks like tether's tether and xrp is what 26 cents watch out chain link 1449 again we had a massive run here's the retracement hopefully can get up there and we'll see how that goes but the darling polka dot is it's been flipping and flopping between the fifth and sixth position because it is so close to chain link even though we're looking at the mark cap of 5.1 versus 5.5 and I got to tell you as time goes on I think polka dots can do pretty good we did a video yesterday on that and I talked about how that one in the beginning I wasn't too excited about it but now really looking into it I've got my my hooks in and I kind of see what it could potentially become but only time will tell but I got to tell you it's got a fantastic team it's got a really good direction it's got a lot of experience so these are the things that I like to see as a positive and I talked yesterday I said look I know it's fantastic and I knew it's great but take it I this is not my first rodeo I'll just say that so when I see the shiny new objects I don't get that impressed anymore and I told I told everybody you know don't foma when don't dump a bunch even my friends I was telling my I was telling my friend George I'm like listen man I go polka dots gonna be pretty good you should invest into it he's like well how much should I put in like 10 000 like whoa what the hell no no no it's not what I want you to do I go just dollar cost average and just a little bit every day three days week two weeks whatever you want to do but don't dump everything in because our goal is just to stay ahead of the price action so if we if we dump everything in and the next day let's say yesterday it was six and right now it's five sixty six like damn that sucks just lost whatever you know 11 percent 10 percent or five percent I don't want you to do that so just dollar cost average in safer way to do things you might miss some you know some some gains here and there but it's just a safer way to do things in the end I mean if you only make five million can you live with yourself if you only make five million maybe you could have made seven and a half million at some point it's not gonna matter so today was my day where a voyager took out my whopping $25 as a dollar cost average in a polka dot see I told you I'm pretty boring anyhow bitcoin cash down five percent what are you gonna do litecoin bitcoin sv yeah crypto.com down down down down down down down down down down everything is down oof b-chain down seven percent what else we got eight percent wow a lot of red look at that 13 percent theta network oh my theta what are you gonna do nine percent 11 cute them down 11 six point five I gotta tell you usually when I go this deep there is some green somewhere and it's very rare to see that so look if you're in the red everybody's in the red don't worry about it just uh it's like the weather in Texas if you don't like it just stick around for a bit it'll change and that's it so let's jump into today's big stories first up fidelity digital assets validates model and this is from plan B that predicts bitcoin price of one million I gotta tell you I'm so sick of hearing that bitcoin's going to a million between it's going to a million I remember John McAfee said that what a disappointment that guy is um not for what he's done just for I mean for like you know uh McAfee virus software great stuff he sees that as a kid fantastic but just you know suckering people in by saying it's a million and then calling everybody stupid for believing him so uh you know what are you gonna do anyhow um this isn't about the prediction of it's going to a million because I don't think it's going to I'll just be honest with you I think 250 is the tops and that's gonna be a long time that's just me I'm a very reserved however what I'd like to see is not what people are saying but what they were doing and these two articles go back to back in tandem that's why I want to bring it so fidelity assets reviewed and validated stock to flow model predicts the model the price of a million and expects bitcoin to outperform gold after 2024 because of the stock to flow ratio and this was interesting about they are predicting that all the gold is going to be mined by 2035 I had no idea that was a thing so that's interesting also if you subscribe to the whole thing about what Elon Musk said where they're going to blast off rockets and mine gold out of asteroids how much could the you know gold really be then there's a lot of them out there but what are you gonna do all right so I'm not going to read the whole article because someone's kind of boring but here's the big thing the stock to flow ratio and they're just looking at you know 2025 is when they believe that it is going to hit one million dollars look for me I can wait four years I'm good I got nothing else going on I mean I got other businesses but I mean I have the money just sitting there waiting to accumulate that's why I say cryptocurrency as fast as it is it is not a get rich quick seem just dollar cost average and sit back and wait just kick it what else you gotta do but the thing is that it's not just fidelity the asset management firm grayscale agrees with fidelity the other conclusions as shown in the chart below so grayscale and fidelity pretty much say the same thing look start to flow ratio we're pretty much following the model to a tee we'd like to see it go up and they're going to see it looks like 2021 is a year I mean I can see that definitely happening to 100,000 2022 2023 I don't agree with it's going to stay flat like this though I think it's going to go down a little bit just like it always has just like it did right here and over here and over here and over here so I don't think it's going to be flat I think it'll go to I think it could go 100k then if we hit the 2025 sure like I said I could definitely wait but but the interesting stuff is really in the report I'm going to link that in the description but this is a 19 page report it's fascinating really and it just talks about it's the same thing we've been talking about on this channel for forever and it's just good to see that smart money especially fidelity which I don't know if you realize this but fidelity has almost 8 trillion assets in our management that's trillion with a tee I was a kid I thought a billion was a lot of money but that's just you know paper money these days anyhow this is a nice little quote from Brian Kelly BKCM he says Bitcoin is the most significant innovation in finance since the Medici's invented double entry accounting there's a great documentary on Bitcoin it was just released I think it was in May or April 2020 and it gives an account of the Medici's back in the day how they did the double entry accounting how it just revolutionized everything and if they're saying this is bigger than that hey I gotta agree but here's the points scarcity is the care characteristic cited in reference to a good store of value as it is essential for protecting against the depreciation of real value in the long run one of Bitcoin's most novel innovations is it's unforgivable digital scarcity there's a caveat there it's not just about scarcity it's also about demand if you have a scarcity of a flip-flop like you're like hey I made these purple flip-flops no one else has them that's just you're just scarcing a flip there's no demand who cares here is a difference there is huge demand for Bitcoin and we see it all over the place these big corporations these big entities are getting into the game and even if you took a look at that interview I did with Alex Maschioli where you know he is the the head of Bequant and he's talking about big huge players and all they ask about is Bitcoin now is Bitcoin the one thing that's gonna go up no everything else will go up with Bitcoin that's why I'm always talking about it because if Bitcoin goes up you know what else goes up tomato coin I'm just kidding but you know what I mean like everything in the whole space goes up so that's what I'm trying to say says Bitcoin scarcity was coded in the protocol when it was created the unknown consequences of record low interest rates on precedent levels of global monetary and fiscal stimulus also known as quantitative easing also known as quack economics also known as money printing and the globalization are all adding fuel to the fire of awareness and adoption and I gotta tell you it is interesting how the happening happened in May when all this craziness was happening so that was a big catalyst I think for Bitcoin's price going up the worst the economy does or the worst that everything happens in the world unfortunately the more golden Bitcoin will go up just an opinion and lastly it says longer term drivers include slow and steady inflation and the great wealth transfer to a millennial demographic that is a favorite a very favorable opinion on digital assets so I thought that was pretty interesting all right scrolling down this I always talk about this about the how early we are and how much money is in the space so if you're looking at Bitcoin a whopping 172 billion which is a lot of money let's be honest not for Jeff Bezos he actually is a 200 billionaire so good for that guy but Facebook you know 604 billion so Bitcoin shares only 25% that gold 11 trillion 11 trillion gold that means that that Bitcoin is only 1.6% of that and if you don't think that Bitcoin is coming for gold's lunch you are out of your mind and that is why shift Peter Schiff is always talking about it one I do believe he thinks I believe that he thinks that Bitcoin sucks I believe he thinks that Bitcoin is worthless but that is all formulated inside his mind because he is such a big gold buck I get it and that's it but I think only time will tell I happen to believe that he is incorrect but what do I know stock markets 89 trillion that's 0.2% of Bitcoin global debt global real estate and then if you look at the derivatives market it's like 0.001% so we got a lot of room to grow so you watching this right now I think you're a millionaire already all right let's move down this one by John Pfeiffer of our Pheffer Pheffer capital because most people in the world don't yet see Bitcoin as digital gold as soon as people see it in a different way the price will adjust and if you know if you're on the channel for a while I always talk about this elevator pitch and I say you know Bitcoin is digital gold there's only 21 million on my gold which is you know you could mine it for whoever long and you can send it to anyone anyone in the world for next to nothing it used to be cost to nickel now it costs almost 12 thousand dollars why heavily invest into it so that's my little elevator pitch but there is one one thing I was playing volleyball this weekend and somebody asked me said hey I have a question which is what is Bitcoin why Bitcoin I don't get it and I started off with this question what gives I and I took a $20 bill on my pocket I said what gives this value and she's like I don't know I go what gives a value is it's backed by the US government that's it that's it and it's not even worth that much because you know dollar goes down I said so what gives gold value she's like I don't know I said well we give it value I mean we said thousands of years ago gold is worth this x amount of this and that whatever else just like seashells worth something just like salt was worth something just like buckskins worth something and just like this dollar is worth something it's because we gave it that value and then of course the government backed it up and then I went into everything so I think it's good to kind of frame it that way if you ever want to talk to people about it just say what gives the dollar value well it's the government what gives gold value well it's this and that and if they ever say well you know gold has intrinsic value I can make a watch out of it like really that is true but when people are buying gold they're not buying gold so they can turn it into a ring or a watch or whatever else they're buying gold as a speculative asset and as a store of value which is the same thing as bitcoin that's what I always say and then if I if I really want to go deep I'll say well what's the intrinsic value of google you can't touch it you can't see it google's google I'm sure is valuable anyhow moving forward moving down down down and this was the the stock to flow ratio and this little piece here I'm going to zoom in a goldman sacks report from 2015 estimated that the last of gold from nomer's real mind by 2035 excuse me 2035 and the last of platinum would mind by 2055 the last bitcoin we mined around 2040 so I got to tell you that's I think where they're kind of coming from as far as that stock to flow ratio and their million dollar prediction so okay million dollars I mean I'm not going to be upset if it makes that I mean if it hits it great if it doesn't I'll take 250 and then lastly I just want to talk about this because this is kind of important if so when people are talking about the US dollar and how you know great it is here's the purchasing power US dollar and you can google this and it's all the same thing so that's why like back in the day you know a nickel will buy a loaf of bread right I mean your grandfather said the same thing right however as time is going on and now we're this is just in 2018 2020 what do you think the purchasing power of the dollar is right now how many of you have gone into a restaurant and seen the prices go up how many have you gone to your grocery store to the price and go up how many have gone anywhere as the prices go up well there is a there is a reason for that I think it's the weakening of the US dollar but just just a thought so that's pretty much it I'm not going to beat a dead horse but again I'm not real big on the million dollar theory as far as Bitcoin what I am big on is when we start to talk about these high entities this smart money and what they are doing behind the scenes and this is another proof so the deli president files for new bitcoin funds so putting their money where their mouth is the president director digital funds peter juber hooper today filed paperwork with the us sec our securities and exchange commission informing the regulator of a new fund dedicated to bitcoin the previous unknown wise origin bitcoin index I remember this from a while ago they said there's this new origin bitcoin there's a new wise bitcoin index fund they don't really know about it it was supposed to have like was it half a million a couple million I forgot but now it looks like this was incorporated this year and is being run from the same Boston headquarters where the investing giant manages 8.3 trillion in customer funds that's a lot of money the firm recently published a result of a survey of 800 institutional investors from the US and Europe finding that 36 of respondents were already invested in digital assets 60% said digital assets at a place in a portfolio and this was from fidelity themselves what they actually did the survey and they've got a lot of people to pull that survey into so good information and I think it's just that's the thing when you have access to all this data and analytics you can kind of make a pretty good choice it's like a story we covered a little bit ago micro strategy they do a lot with data analytics and what they did was their CEO came out and they said hey we just bought 21,000 plus bitcoin and this was just this month and it valued at around 250 million they now own 0.1 percent of all bitcoin and the CEO said hey bitcoin's digital gold harder stronger faster and smarter than any money that has preceded it and he didn't beat around the bush he wasn't like well it could be this or it could be that he came out and said it so remember all these high level institutions and all these different corporations they have a lot of data analytics and they're looking at things that you and I are not privy to and I just think why don't just you know jump on the coattails see where it leads me and how to finish up this is the latest development in fidelity showing the seriousness with which it is taking bitcoin as an asset a year after becoming one of the earliest institutional supporters of bitcoin in 2017 when fidelity CEO Abigail Johnson publicly said she'd been mining the asset the company formalized its interest with the launch of fidelity digital assets and this is the story I totally forgot about fidelity a trillion asset under management they're like oh yeah we're mining bitcoin can you imagine just imagine just just think back if we could just remind ourselves of these big huge entities they're like you know what we're mining it because we think it's gonna be awesome it's not like they're out there mining some random nonsense stuff or investing in something random they're like this is gonna be big we're gonna go big and only make sense the following year in 2019 the new york department of financial services granted fidelity a so-called bit license allowing it to run a variety of crypto businesses so again they're one of those that got a bit license it's all about who you know that's just me all right so that's it for that section let me know what you think in the comments we're gonna jump into q and c of the day just so you know I want to ask you a question I broke down and finally got some apple air pods instead of the wired approach but I'm not for sure if the audio is that great and that's the reason why I was using the wired ones because the audio was always good so I'm trying these new air pods out if the audio sucks just say hey the audio is not that great go back to the wires let me know in the comment section then let's let's jump in hello everybody and welcome to q and c of the day I'll get to the c part in a second welcome to the office so this this question which is pretty good one it came to us from a subscriber by the name of mr. jx this can be uh uh twitter so mr. jx says or asked the question hey I'm watching youtube channel for a few months thanks for watching really appreciate it and he says this might seem like a stupid question before we go on let me say one thing uh there are no stupid questions I know everybody hears that and they're like no they're stupid questions that may be true actually but uh in reality if you have the question I guarantee there's like a hundred other people behind you that have that exact same question just ask the question and uh if it's not my can answer real quick uh then I'll probably fire it back but uh for this one I want to do a q the day so the question he has is uh however I feel uncertain about some projects I understand that bitcoin is seen as valuable because it can be seen as a store of value like gold or potentially become a decentralized payment system and is not vulnerable to our artificial inflation that part is very true it is a uh it is a hardening of a digital asset but are all other cryptocurrencies keyword here currencies aiming to replace our conventional forms of money for example products like chain link v-chain and cardano are they products you should invest in because they provide useful blockchain services yes such as supply chain efficiency and Oracle network or because they will use as a form of currency in other words should I buy chain link and bet because they they will replace the us dollar or the pound of the euro or the uon or something like that so I want to make this super simple uh yes that is exactly what they're gonna I'm just kidding no what what it really comes down to is this let me back up first of all in this space we have used cryptocurrencies to describe everything and I think it's a mistake it's why I named my channel digital asset news so and this comes all the way back and from like 2010 you know back in the day when the bitcoin maximals were just getting started and everything was about currency it was about replacing the dollar it was about making not a not a store of value but being able to pay somebody through all over the world instantaneously like that as time has moved on bitcoin is not going to be a currency it's just not now I can be wrong but from what I see right here I think it's going to be digital gold and I've talked about that numerous times so when we keep saying cryptocurrencies people who are new or people are coming in or people who are going to be coming in they will look at this and say uh this is all currency I don't understand what's going on so I think my personal opinion we should always be saying cryptocurrency and digital assets we are in 2020 2020 2021 bitcoin is going to be a store of value that's what I firmly believe XRP may be a form of currency at some point depends on what the government does I don't know right now it seems to be working like a stable coin and besides that stellar could be one of those as well you can also look at Monero and maybe litecoin I I really don't know as far as the currency side but I see a potential upside for digital assets so to answer your question Mr. Jax Mr. Jax Jax we are not investing in these to replace currency that is not what's going to happen I mean later on it could be in a basket but that's a whole other video so if you're going to invest in something like a cardano like an ethereum like a tasos these types of things are for smart contracts and what's great about smart contracts is that they can do a lot of things like decentralized finance like voting like putting different things like your health care records on on a blockchain or like do recording different types of things for mortgages and for different assets so they're just right there and we could even replace you know lawyers to some degree as far as contracts go so think about that and think about bitcoin can bitcoin do that no I don't think so bitcoin couldn't even handle all the people that were coming in 2017 and there wasn't even that many so if you think that it's going to happen like that I mean bitcoin maximus will say that bitcoin's and i'll be all and that's their thing I tend to disagree I tend to think that there is a big room for a lot of different things for this space to really advance so that's the part of smart contracts v-chain I see it as a supply chain metrics or tracking so if you have something like products coming out of china not to get on down on china but let's be honest there's a lot of a lot of counterfeit type of things coming out of there it'd be pretty important to know things like is this a real Chanel bag this is a real mickey golf driver is this really baby formula from the correct factory I need to know all these things because I mean I mean the products are something but like food and baby formula and medicine just the name of you that'd be kind of important to make sure that we know exactly where it is and if we can track it on the blockchain that would be huge and then to get back to the smart contracts that's why I like chain link and the other one bam one starts with b I forgot tell me what it is in the comment section I always forget but that is another oracle and what's great about blockchains is that you know they can they can do a lot of great things one thing they cannot do is pull out outside data so if we want to know things for decentralized finance things like the price of some type of coin or interest rates or weather or whatever else or APR we can't get done the blockchain with the pull that from outside that's why chain link and oracles are so important so all these things that we're talking about let me just make clear they're not going to be currencies they're not going to be currencies they're valuable because they do certain things and I see them as you know doing very well moving forward so hopefully it answers your question if the if you have any other things just put in the comment section I'll do my best answer this so that's the first part of the queue so the queue in the C stands for how would you think correction of the day so the correction of the day yesterday I had done a correction I had talked about the deadless wallet and there was supposed to be a new version version 2.2 and then when I looked on the website it just said 2.1 I didn't realize because I didn't know that on the top right hand corner is a little button called this little tab it says flight and flight is when you click on to get all the different updates for all the different things they are testing and that's what they put 2.2 so yeah didn't know now I know fantastic so that's one thing and then yesterday we did a video talking about how I compared the PayPal mafia all the different guys who had created PayPal and moved on and created things little things like you know YouTube and SpaceX and Tesla and a little little stuff linked in and then I compared that to the Ethereum mafia or what I call the Ethereum mafia which are all the gentlemen that had created or co-founded or founded however we want to say Ethereum and we took a look at that and one of them was Amir Chetrit and Amir Chetrit I did a Google search and I try to find them and there was a couple websites and unfortunately those two websites that I found had the picture of Sundar Pichai who is the Google CEO or sorry Alphabet Google CEO and when I saw that I go up that's him I did a couple more searches and there he was so just misinformation so on the thumbnail of the video I changed it from Sundar's image to just a generic looking icon of a person because I cannot find this guy anywhere and that's it so little mistake but the rest of the information is all good hopefully you like the video and whatnot I think moving forward I will probably be doing these Q&C's every day because let's be honest everybody makes mistakes right no one is perfect it is a weird time we live in though don't you think that everybody who is wrong is never wrong everybody's an expert everybody knows exactly what's going to happen and when you call them on it like no no I didn't say that I said this I said this this and this I gotta tell you sometimes it's refreshing when someone just stands up and goes I screwed up that was my mistake I'm in there I don't know tell me to think about that but that's it for the Q&C of the day let's jump back all right so thanks for sticking with me to the end I just want to say thanks to all the people who've joined up for digital asset news if you don't know on the bottom right hand corner there's a join now button it doesn't give anything special it's just a buck 99 and it's like a tip so I just want to what I do is I just do random shout outs for all the members so shout out Sean Thompson Dawid Brzezinski I know I said Brzezinski right I'm pretty sure I did and then we got Keith K TTP 911 nice gold back crypto interesting all right soft even my shids and then Moe Moe Zainal all right so thanks everybody who signed up really appreciate it also if you like those types of videos or this type of video there's gonna be two more that's gonna pop up on your left and right go ahead and check those out I don't have any control that YouTube pretty much takes care of that just like the ads you may have seen in the beginning middle or end I have no control over that if you saw a scam ad report it to YouTube or just you know give them a shout and say hey this is a scam they'd love to hear from you so that's it for today thanks for sticking with me see you on the next one