 What's up guys, so I got Brad here with me again if you guys miss our last video We actually did a podcast and we're talking about cryptocurrency bubble and I will leave a link below this video However in this video Brad, what are we talking about? I think maybe What's been on my mind lately is the ethereum conundrum? Okay, and and the the structure of the cryptocurrency markets in general and Like someone had a comment on the last video Which was how did iota launch at like the number six market cap at like 1.5 billion market cap like how is that possible? Yeah, so we could talk a little bit about How that's possible, okay, and how we might see more of that. Okay. Let's dive into it. Yeah, sure so The you know, there's two separate issues there though. The first one is like how does iota get? launch at this this high valuation so iota was a project that raised some money about a year and a half two years ago and they kind of spent the last little while developing the product and then There was OTC trading happening. So for those of you aren't really traders OTC means over-the-counter right and it just basically means like people on Bitcoin talk or on reddit or trade groups on telegram or skype or whatever start saying hey I want to buy some of your iota how much you sell to me for Secondary markets. Yeah, like and it's just like a Google spreadsheet or something and people just start entering We're asking a bit. So it's like an exchange, but like how they used to do it back in the old days How much iota you smoke with your pipe. That's right. So there's no pipes anymore. Got them But there's still the OTC trade. Mm-hmm. So Iota was OTC trading for such a long time at these really super high valuations that it launched at a billion and a half market cap because that's just what people said it was worth. Yeah, so any any altcoin can launch at like an ridiculous valuation and It's just like how you know when you when someone asks you for the first time like if they know you're into Bitcoin And they say well, yeah, what gives Bitcoin its value. Mm-hmm. It's just it's just nothing And there's nothing that backs it. It's the same as like how an altcoin can launch at like one billion valuation What gives it its value? It's like we give it its value speculation feature Yeah, so like with with Bitcoin it's You go you go deeper into that like what gives Bitcoin value or what gives money value what gives gold value What gives clothes value like what gives anything value? It's like the value is What we give it is what people agreed to give it. Mm-hmm And so that is what ended up happening with iota now. Obviously, it's not just that There's you know, they had the relationship with Bitfinex and Bitfinex is one of the major exchanges So the same thing happened with economy when economy launched Mm-hmm. It is an ICO and they launched on a kraken So when you launch on a big exchange like Kraken or Bitstamp or Bitfinex Then you're pretty much guaranteed to be like the big boy league. Yeah, I owe it. I think was the biggest I'm pretty sure it was like the biggest launch like in terms of valuation. Really? I'm pretty sure it was yeah Plus a lot. Yeah, yeah, it's a lot especially for for an old coin that has no like usage right now Yeah, as far as I know, there's no usage for it. I don't know How's it interesting technology because it's tangled technology Can you explain that or tell me what it is like I honestly I'm not well versed on yet I miss iota ICO my buddy got into it I know a couple guys that got into it and he's like, hey, you want to put Bitcoin into this company I was like, ah burnt out for my ICO I told my Bitcoin and he's just laughing now. Honestly, I'm not well versed. I can't make opinion yet until I Do diligence and talk to really smart people about this technology. Well, I know Iota uses something called a DAG it I think it's called a That I don't know what the D stands for but it's something a cyclic graph and it's like that it's like a knot There's blockchains. There's ledgers and there's DAGs and so there's these I'm gonna google it right now, so I don't What is a DAG? I'm seriously not gonna know what a DAG is. I'm gonna google that I think I've seen a graph though a bit too the tangled tech for you Somewhere here I did a directed a cyclic graph. Yeah So it's a it's a different type of consensus mechanism. Yeah, that's not using blockchain technology not using ledger technology Yeah, I think it's like a play on databases. Okay in some way. I'm not super reversed on the technology behind it But as a tip, I guess like I don't know what should be given tips here. What do you think? I tell everybody, uh, we don't give advice Um, well, I'll just tell you I personally don't give advice financial advice I am a trader. I am not a financial person and I had no fiduciary obligations to anybody And the same thing for me as well But what I look at personally is when I saw Iota pump that much like on the launch and like, okay What's the most unique factor of this thing? It uses a directed a cyclic graph technology What other cryptocurrencies have this DAG technology because I want to put some bitcoins into that as well So whenever there's an ICO that launches or that is raising a big amount of money I like to look at some sort of like Existing project that's already trading on exchanges that has those properties and buy a little bit of that If it's undervalued compared to the the one that's up right now or the one that's launched or whatever my valuation So the one that does also use a DAG is Biteball so g bite is the name. Where the fuck they come up with these names I don't know. That's the stupidest name biteball. Like I ignored it for the first month I heard the name biteball. Like what the hell are they thinking like biteball? It's such a stupid name But hey, it's actually a decent technology when I looked into it in the end. They have these uh, two currencies the the the bite the g bite and then the uh, the gbb some people call it and the black bites and the black bites are their anonymous currency So it has like two different types of cryptocurrency in the uh, in the program and they actually have chat box integrated into the The wall. So it's an interesting one. Yeah. Anyway back to the uh The the question of like how can you how can it launch at a billion some valuation? Yeah, um Well There's there's part of it is market making like one of these things with cryptocurrencies that Not a lot of people know about is market making and it's where these whales in the coin will Sort of manipulate the price up or down. So they do. So they do. Yes And not all these whales do it to make a lot of money right away. Like some of them are very patient And they're willing to lose a lot of money. It's no difference in what carl icon our source does I don't know enough about those guys. That's a whole different video But yeah, I can imagine the in the in the traditional markets. Yeah, and they're Manipulating prices up and down. Yes We're in an unregulated space right now. So things have things are happening in the cryptocurrency space that Are not allowed to happen. Well, you showed that cool graph you want to show people. Yeah, that's a wall street What's it called hype cycle? Uh, there's like the wall street cheat sheet. Yeah, and then there's the uh market structure So here's the the wall street cheat sheet. I don't know if everybody can see that. Yeah, they can see that It's not gonna focus. Oh, there we go. Yeah, it's good. So You know, one of the things that I'm trying to figure out right now is like, where are we on this on this chart here for ethereum and The cryptocurrency space in general Now it looks like we're in that green zone like leading up I mean, they're right from the right before the top. Yeah, right before the top like right right there So what is that someone like what does it say? That's uh, that's the belief or the thrill Okay, so a lot of people are feeling pretty Thrillish right now with the profits that they're getting from in the last year. They never felt pain before Well, a lot of us have felt pain, but then a lot of the new people that came in the last year had not felt any of this Yeah, like I've been through this cycle Probably like three times with with the big one. Yeah, and here's the other one Actually that wall street cheat sheet came from this guy brian shannon's uh book Alpha trends understating market structure or technical analysis. It's good book. You recommend it multiple time frames I do. Yeah, it's a short read and it gives you a good idea of like what drives the bull market and the bear market and There you go message, man. Everyone just saw the message. Need a coin follow him on twitter So I obviously it looks like we're in that green zone there so On both of these charts we're we're in like the green zone right where we're going up high or we're feeling great It's almost to the point of euphoria for some people Um, and it cannot go on like that forever It's this guy coming in now rads I don't know This is my my phone has not stopped giving me updates I do a lot of sentiment analysis by subscribing to traders and then Crowdsourcing the data. Yeah, it's kind of like seeing some patterns a bit of a swarm intelligence Why don't we just have an ai there's more of a social media I love that somebody put a header ready. I'm sure someone does. What the fuck we're doing it manually for I waste all my time right But that's um I mean this structure plays itself out in every market. It's not yet cryptocurrency is not like Okay, so there's some people that Don't believe that this cycle is going to play itself out because they think that because cryptocurrency is An evolution of like money and all that The fundamental demand from people that are exiting the traditional money Space right and coming into crypto is going to support this growth for quite a long time technology aside It all goes back to human behavior It does but like I kind of see their point. We could still be in this like hope phase You know right at the very beginning right in the blue section. We could be there I mean we could actually be in this phase because If the global derivatives like one quadrillion Global derivatives bubble pops and like or if the education bubble pops, which like in north america has 1.2 trillion dollars owed for uh Education tuition So if that pops or like I think I even read somewhere that the car loan industry is kind of like mimicking the Is it the housing bubble like there's derivatives on car loans or the fuck are people thinking car loans in the first place? You gotta get that tesla man Overpriced man. Yeah, I like I love tesla. I love where they're going, but it's overpriced right now for most people It's not not applicable for the majority of society. Well, I don't know. I mean if I My bubble indicator is like lambos when I see when I see people posting lambo pictures from their cryptocurrency products That's my bubble zone like that's euphoria right there. Yeah, I think that would be euphoria teslas I'll let that slide if they start posting teslas, but I think like if people argue that Well, if all this stuff happens, you know You know the the real markets start people start to lose money and the bubble pops in the real markets Like to everything bubble. I think this this guy Jesse Felder. I think his name is I follow. Okay on twitter He's uh, he's like a kind of like um, he does a podcast on on the regular markets And okay, you know he posts the infographics all the time. So I use him kind of as my uh Way to like stay grounded because I'm always tuned into the cryptocurrency bubble because I've been through a choice already Yes, and I see it forming again, and I don't want to get caught. So what are you doing right now to diversify? Like let's give some uh, I don't know your own personal experience right now What are you doing to protect yourself? So this is what happened to me This is the the the pattern that has played itself out in the cryptocurrency before is that we follow this ball three cheat sheet sort of like You know Angler or you know parabolic rise up and then everything like you know rising tides. What is it? What's that thing? Oh Rising tides bring ships up together. I don't know some shit like that Something like ships and tides and stuff the tide goes up all the ships goes up Time goes down the ships goes down right there you go so The rising tide comes and then all this the alt coins rise up with it and then and then the tsunami comes Yeah, and all the ships sink together, right? So that's pretty much what has happened It's played itself out a couple of times already Now you get people that are Kind of like a sovereign man like that guy that I don't know if you know what that guy is His name is he I can't remember his name. I can't believe what does he do? He has a podcast sovereign man, but he's like, you know, it's like um doom and gloom or kind of types of guys like peter The guy the gold guy. Oh shit peter shift. Yeah guys like that like they they sell you gold because they Are banging the blue of the future. You know like on on the fuck a look the future Yeah, the black swan event is gonna come and everything but You know like that that That could happen Yeah, and then we would have a rush of new money like coming into the cryptocurrency space and We'll probably go another 10x to a trillion dollars in total capitalization I don't trillion dollars to me is not a big It's not I'm it's gonna get there no matter what but it's a matter of like is the bubble gonna pop and then get Self back up there or is it gonna shoot there or is it gonna like go up and correct and go up and correct? It's a matter of how we're gonna get there. I think in the next three or five years We're definitely gonna be at a trillion dollars in the total cryptocurrency space. That's gonna look like nothing Like the the dot-com bubble is well like two trillion or something and that was in like two thousand dollars That's right. You got to like take in all the the fractional reserve increases and all the uh Wanted eight of easing that qe baby the qe money that's been pumped in I mean we could get to like five ten trillion dollars before this thing pops if wall street gets in quite possibly or forget we even lost for you seeing the I would say uh hunger in china hunger in russia. Yes all these other four nations That's the other thing about the bubble the the wall street bubble everybody always compares us to like wall street You know the dot-com bubble. Yeah, and saying like we're probably 98 97 98 maybe 99. Yeah, but like It's a the dot-com bubble was like a us based pretty much silicon valley some some other You know vcs the one that had exclusive access around the world But this is more distributed. This is global. Yeah, this is like anybody can get into cryptocurrency Yeah, everybody can sort of like into liquidity is more. Hey, yeah You had on liquidity. Yeah, you had to get a private. No, the only way you got liquidity Is if you had a series b and c Right, you're gonna have to get paid. Yeah, that's true And you had to be an accredited investor and you had to be on an exchange Yes, this is cryptocurrency completely open to anybody whether you got ten dollars or like ten million dollars Yes, and you can start trading these things. So I feel like The the fundamentals are there for us to not have a big pop like as soon as the Like, you know as soon as as soon as it should be now, you know, it'd be like it should have happened already Okay, so I was prepared last month for two months ago for the bubble to pop already I think we're gonna get to 100 billion this fast. Okay, so how I prepared was I was diversified into over 100 different altcoins And I wasn't sure because I'm not sure which one is gonna end up being So I'm diversified. I kind of like run my portfolio as like an index fund on the whole space But I was like turtling into bitcoin more and more sure because I feel like If the bubble pops then a lot of people are gonna fly back to bitcoin. Okay But we just kept going and the Ethereum run caught me by surprise I didn't think that that was gonna happen so fast Even though I kind of knew that like the watch out 20 watch out for the next theater and run in November Yeah, the EOS run. I know the dev con dev con trust me. Yeah, it's gonna be a run Well, that's that the the ethereal summit in new york was the was the first like big big You saw it. Yeah, right? So as soon as that happened, I knew like the next week consensus was happening I'm like if this happened to ethereum, it's gonna happen every crypto early Yeah, so I'd like like no, I came out of my turtle shell It's not different than uh when when Warren Buffett does his bircher hathaway. Yeah, no different exactly the same pattern so It's it's like you got to try to stay ahead of this bubble and be prepared for it and just like I guess Sometimes you just can't be prepared for it But you good you got to be able to be mentally prepared for it because it can happen And we can have that like down section of the of the Wall Street cheat sheet Where the emotions of like fear take over right now It's the emotions of grief that are like causing us run up and when fear takes over That's when you get that capitulation where you just See it. It's like 80 evaporated. Well, it's like that's what's probably gonna happen if the bubble pops Now it's diversify that you can be diversified and try to pick the Good fundamental coins to be in and have like their own unique consensus mechanisms or get yourself back into fiat a little bit And then be ready to buy it in when it does drop but Really, you can't know and The only thing you can do is just be mentally prepared for it and be aware that this is probably gonna happen And if you're like putting all of your life savings into cryptocurrency expecting it to like only keep going up I mean what goes up must come it must come down. Uh-huh. It must come down and a lot of people like these stew and gloom people that are like saying that The real traditional markets are gonna Totally collapse and you get it got to get into gold and now they're saying into bitcoin and cryptocurrency Yeah, there's no way this is a bubble because look at what's happening over all over here in the real world Yeah, like that's coming into cryptocurrency as people get afraid and they start having negative interest rates at their banks and stuff You're gonna come into crypto. Yeah, and so That stuff I don't I don't know I don't know if that's gonna happen the guy. I feel like it's a it's an emotional market It's gonna come up and it's gonna come down. I don't see you just going straight up and not stopping So it's summarized people just need to be educated Don't get sucked up into fulminomics, right if you're missing out economics that brad has a phd in that if you guys are wondering Fulminomics and that's right diversify your phone. I would actually recommend people read Ray Dalio's book principles is really good book. Do you have any recommendation mentioned the book earlier? Well, there's you said George Soros, right? George Soros had this book Alchemy of Finance Alchemy of Finance, yeah It was like in in the in the 1980s. I think he wrote this book and I think I just sent you that didn't it? Yeah, but the audio sucks. Yeah, and it's like it's the first like 45 minutes are terrible Like I could not get I almost gave up on it. I'm like, man, don't listen to my book. It sucks But then he got past the boring like oh look at me big words I can use in a sentence card and he got to the actual meat of it and he was talking a lot about how like You know what drives the markets and its emotions and its news and it's fear of missing out And it's like a lot of the same things that's marketing man Please out in every market and it's going to play out in cryptocurrency and it is playing out in cryptocurrency So that's a good book too. Cool. Well, we'll leave that that I hope you guys enjoyed this video. If you guys have any comments, obviously the comment below this video Best resource to get in contact with you email twitter twitter, right? Yeah, you can give me at brad mills can like canada or or can be a length. Yeah, exactly. There'll be a link below this video All right guys. Peace