 Good evening everybody. Welcome to the late night stream now. Usually we don't do streams this late Usually we don't do streams actually during the week, but this is a special occasion What I want to talk to you tonight about is This gentleman right here Jamie Diamond who is the CEO JP Morgan before we get into this. There's a couple reasons Well first I have to say this I apologize if you hear anything in the background Those are called Koki they are the frogs here in Puerto Rico and they make this noise Constantly in the evening and I really can't control that now I've got a noise dampening on but if you hear a little bit may sound a bit squeaky. Sorry can't do much about that The reason why I want to talk to you about this we're gonna talk about this We're also gonna talk about the court case of the coin of coin base versus the SEC now The first day was in my personal opinion a loss of another L for the SEC But I wanted to bring this to everybody's attention Because these are the things that as we move forward into this next bull cycle Bitcoin having is coming up. I think we've roughly got 92 days. Correct me in the comment section and there's gonna be a lot of people asking you a lot of questions and Some of the questions are gonna come about or the same thing that Jamie Diamond is gonna talk about and it's a Misconception about what he says it's a master class and fun I need you to be on board with the things to say back when people ask you because let's be honest It's up to us to educate everybody and you know, that's just really how it goes now This is there's four little parts of this and we'll go over those in detail But this is the first section so Jamie Diamond here is on CNBC and he's talking about Bitcoin his favorite topic So just take a listen and we'll go from this is like a couple seconds or so 30 seconds or so I would this is the last time I've ever talked about this in CNBC First of all, he said this is the last time I talk about Bitcoin in CNBC This is like the 10th time he said it is gonna say it like three more times. Just be ready. So help me God Blockchain is real. It's a technology We use it. It's gonna move money. It's gonna move data. It's efficient We've been talking about that for 12 years to and it's very small. Okay, so I think we've wasted too many words in that Cryptocurrencies there are two types. There's a cryptocurrency which might actually do something Think if a crypto currency has an embedded smart contract in it and then we can use it buy and sell real estate to move data That may have value the idea of tokenizing tokenizing things that you do something with and then there's one which does nothing I call it the pet rock the Bitcoin or something like that So it's okay. So first of all, he's right. Yeah, when he talks about he goes, there are certain cryptos I don't do anything. Let's just be honest They are supposed to do things and they don't and there's some things that actually do actually work There is over a thousand different cryptos out there and some are just pretty much worthless So on this one, I got to give it to Jamie. He is right now when he talks about, you know, these, you know Bitcoin as a work is kind of ridiculous, but again when we're talking about the things that actually work It's really tough to distinguish between like real world Not just real world assets of what actually is Competing and doing things in the world now. There was a video that I did over on my second channel It's Dan D gen. This is where I talk about the more risky stuff outside of the top 300 and we just talked about this new Project that's coming to light called Ivan pay. I like this one because it has real world use case It's going to allow all the different business to business business to consumers to actually take Crypto or digital assets and you be able to pay for that wherever you are And it doesn't matter what kind of wallet you have or anything else is going to come So it's going to pretty much be like an aggregator and put everything together and oh, yeah This is on 10 cent the launch pad and you've got four days to to take a look at that before it launches So there's a link to the description So when we're talking about things that actually work, these are one of the things that I think actually works And then before we go on as a reminder JP Morgan, he's Jamie's the CEO and he's had quite a troubled history with Bitcoin We just remember where he's come from in 2015 He said a virtual currency will be stopped and then JP Morgan CEO says the fraud and he says, okay Well, maybe the technology behind it's pretty good And then he says it's not my cup of cup of tea even though JP Morgan is warm to crypto and then 2021 JP Morgan says investors should make or could make a 1% of portfolios And they talk about managing Bitcoin fund and then of course they're also in the Bitcoin ETF So it's a troubled history, but it's one that's not uncommon Especially with traditional finance as they come into play. So the next part As we get deeper into this little rabbit hole Is what Jamie talks about as far as the normal stuff and you're going to hear This same thing that's going to be about illicit activity. There's going to be problems that it comes up So just take a listen. This is how to Rebute that And so on the bitcoin, you know, there's First and I'm I'm not trying to make a joke here. There are use cases AML fraud Antimoney laundering tax avoidance sex trafficking Those are real use cases and you see it being used for hundreds. Maybe 50 or 100 billion dollars a year for that That is the end use case. Everything else is people train among themselves all right so I love this one because Elizabeth Warren does the same thing center Elizabeth Warren says, you know, this is just all illicit activity You know, what's the best use or the best? Medium of exchange for illicit activity. It's the u.s. Dollar. I mean, I hate to say if that is exactly what it is So when we're talking about this, you're going to get the same thing because The people that you talk to They're going to hear the same nonsense out of somebody like Jamie Dimon or somebody like Warren Buffett Or somebody like Elizabeth Warren and they're going to just pair at that and say, hey Are this is used for like massive illicit activity? So so what gives here? I don't really understand So just remind them that there was this report in 2021 and it came out by Michael Morrill Michael Morrill is a janitor something not as keen Michael Morrill is the he was the director of the cia director of intelligence the cia And he did a deep analysis in 2021 and the conclusion was quite simple. He said this It's really just two pieces the broad generalization about the use of bitcoin illicit finance are significantly overstated Yes, it does happen, but it's significantly overreached The blockchain ledger on which bitcoin transactions are recorded Is an underutilized forensic tool that can be used more widely by law enforcement I mean intelligence community would identify and disrupt illicit activities. Look, I haven't worked for the cartel for years and I gotta tell you Just kidding, but if you're going to do anything with like illicit activity The worst place you can possibly do that is on a public ledger for everything to be actually Uncovered and this didn't work too well for different parts of terrorism and other different parts of finance So again, this is a master class in fud. I'm just trying to Inform everybody about what to come back with so We're on that and then there was another great question that was asked here I thought that was pretty interesting because you know, Larry fink has come out and uh, you know Runs the largest asset manager, which is black rock with nine to ten trillion assets owner management And when he came out and he said, you know what? I think we're gonna do a bitcoin ETF And of course, I was like, I don't think that's actually gonna happen. It did now. Here we are but The question was asked to jamie which was well, what do you think now because I mean your buddy Larry fink comes out and supports bitcoin. So where are you on this piece? So we're gonna fast forward to Right here. Let's hear what he has to say. What do you think of the other firms the black rocks of the world that that Obviously and Larry fink changed his view of this obviously And maybe he changed his view because you think he genuinely believes in bitcoin or genuine or believed it because he thinks that There's a marketplace for it and he wants to be part of that market But what do you think of the and there's about a dozen big financial companies fidelity number one, I don't care So just please stop talking about this shit First of all, he does care and he's getting a little bit heated Which I understand because it's tough to be wrong all the time. Trust me. I know asked my wife So like all these things that he's saying just take it with a grain of salt and and I don't know what he would say about blockchain versus Converting to do something versus bitcoin. It does nothing and maybe that's not different to me But you know, this is what makes a market people have opinions I this is the last time I'm ever gonna state my opinion gold really Last time he's such a police boy. Like I have nothing. It's Jamie dime very successful gentleman runs, you know multi-billion dollar bank and and He's right here, you know, that's what makes the the world go around. That's what makes markets actually work So on that without that one part I just wanted to say that Even though we have the backing of some of the largest institutions that are out there It's like somebody was kind of passed over like, ah, they're just crazy or ah, they're just doing this thing or whatever else But they're just not really open their eyes and that's just kind of how it is And some people will say well, Jamie diamond's just a liar and he's just doing everything behind the scenes possibly but you know It is what it is And the last piece we're going to talk about and this is going to be a good question It's going to come up which is hey, um Can't bitcoin just be changed because I mean 21 million while they just changed that it's just code, right? And this is something that you really need to understand because when people ask you this question You're going to stumble through like well, it's to decentralize Nakamoto and white paper Method transmission. You're like what are you talking about? So I want to kind of drill this in just take a listen to what Jamie has asked here and then we'll go over the answer to the foot. They didn't do anything either Yeah, the gold's limited in supply. So it's big and it's been used So you think so, huh? I think there's a good chance to win bitcoin when we get that 20 million To go to 42. No that satoshi is going to come on there laugh hysterically go quiet All bitcoin's going to be erased. I think man. How the hell do you know it's going to stop at 21? I've never met one person who told me they know for a fact. They take that Exactly, it's it's not it can't happen because by the last one will be mined in 21 50 And it gets harder and harder every time there's another having but but jimmy Looking back over do what you want. I'll do what I want As for gold you can the six characteristics that make gold valuable for 4 000 years. They're all present in bitcoin That's all i'll say and I love you and I don't want to and I don't know I don't also don't want to be a you may joe you may be right. Yeah, like I don't know in gold either So, okay, that's what I mean a couple of quick final questions. I like the only things they pay me incomes That doesn't cost money to carry anyway, and it cost money to carry bitcoin too, by the way We talked a lot He's so full it doesn't cause any money to carry bitcoin but fine a lot about commercial real estate here In davos. There was a big 60 minutes piece on sunday I think there's another risk to bitcoin if if you can't solve the bad use cases the government's Probably going to have to close it down. So that the thing about the money laundering you can think here's the the number was 20 000 I think for us dollars for dollars in money laundering and it was 35 for how much is done with bitcoin So at this point rance. We're but the dominant where is I know but the dominant know about historically the dominant currency for Money laundering has been I well, thank god for joe saying it. I gotta appreciate that so there's a lot of lots of breakdown there's a lot to break down there and Again, the question always comes up. Well, you know It's 21 million. That's that's that's its best use case right there I mean not the best use case, but that's that's the whole value proposition for bitcoin So if it's made if it's made as a as software, can we just change that software you can Then all honesty you can so when people ask this question like well, how do you know? It's gonna be 21 million forever because can we just change that I can go on there I can I can make a bitcoin on a coin. I can do whatever they want to this is why that's wrong So there's a great website. I linked this in the description. It's called river learn And I need everybody to understand this to a tee and sometimes even I get this a little bit jumbled up about node operators and miners and who actually controls the network So we're going to go through this real quick. So when someone asks you this question, you can answer it A little more thoroughly so can bitcoins hard cap of 21 million be changed? First of all, there's never going to be more than 21 million. It could happen, but it's not I'm going to tell you why It's encoded bitcoin source code and enforced by nodes On the network. What is a node on a network? Well, if you want to Download and be a node operator. There's a link in the description And you can download become your own node operator You just download this bitcoin core and you run on your computer now You're gonna need depending on if you do a full node or are we gonna be a prune node pruned node It's between 500 gigabytes and one terabyte or a lot less if you're doing a prune node But regardless you have everything on your computer. That's what a node operator does Essentially it validates the blocks. It's not the miners So critics claim that since bitcoin is nothing more than software the roles of bitcoin network can be changed easily Which is what I heard when I first got into Miners are the actors who may have the strongest motivation to change bitcoins hard cap I got to disagree actually on this one because yes, they do mind bitcoin But look how much they're making right now Just mining with ordinals and just doing not too much and just processes those transactions. Some days it's more than Ethereum so on that I think there's a longevity case to be to be made But if they did do this and go against it They would destroy a core investment thesis which is scarcity removing the fundamental driver behind bitcoin's value proposition Is not in the miner's best interest or anybody's best interest why even if And we'll get to this in a second even a black rock came out and say, you know what we'd like to increase bitcoins Mass amount max amount from 21 million to 42 million Well, now you just dropped everything in half Why would you do that because you want to issue more more bitcoin you could but the whole value proposition is that it's not scarce It's not scarce Gold is scarce. We're still going to find more bitcoin is finite Not infinite. It's finite. It's only 21 million. That's it. That's all that's all it's ever going to be So here's The the distinction miners do not control the network or its rules. Let me say that again Miners don't control the network or its rules miners produce new blocks Validate transactions or miners submit a new block in the network tens of thousands of nodes each independently verify this block nodes will reject all blocks of all violate these rules meaning miners have no control over bitcoin's rule set in Recourse a little relapse here Miners are great. They don't control the network per se They can all work together and they can fork and all these things but they don't control the network is the nodes So this theory has been validated by reality when in 2017. I had no idea I had forgot about this But in 2017 95 of miners agreed to raise the block size limit in an attempt to allow bitcoin to scale nodes and users however refuse this change And successfully force miners to adopt an alternative scaling solution so This is how bitcoin's hard cap could be changed Then they actually could happen But i'm going to tell you why it's not going to happen First developers have to propose and write the new code. That's one next the community have to agree to activate the path That means that all the nodes on the network would have to adopt the changer before the network. I believe that's not true I believe it's a A majority which would be 51 of all the nodes in the network would have to Adapt the changes or be forced on the network. That would be called a fork both miners and nodes Miners and nodes would signal their support for the change and how do they signal that support? Well, they would update their software and they would download the Correct application because there's no voting. It's just downloading and that would signal that you want to do something new like go from 21 to 42 million, which would be dumb And once a dominant portion network signal support the change would be activated However, I will say this but people will say well, Rob, what about bitcoin cash? And what about bitcoin sv and what about bitcoin gold? First of all, no one knows about bitcoin gold. That's a long time ago Here's the thing. They may change different aspects of that. But look at all three of them. They're all 21 million For bitcoin sv 21 million for bitcoin cash and even bitcoin gold is still a 21 million. So again If you're gonna get this question to say It could happen But all the nodes or a majority of the nodes have to all agree and I'm just gonna tell you right now A lot of these a lot of these nodes Are not Up to date with everything that they actually should be it just how it is and you'll figure it out If you ever download this and actually use it and on top of that, you know, my nodes are out there in the world right now There's 16,635 nodes. You're gonna tell me you're gonna get 8,000 plus to to signal or 9,000 plus to go Yeah, let's go to 42 million or 50 million or whatever else is it's not gonna happen And then lastly before we move on to the next piece of the sec Uh versus coinbase. I found this part quite funny here not here actually Oh here so as they were debating against gold Somebody and the staff of cnbc threw up the bitcoin chart And the gold chart as jamie was talking which I found was was quite hilarious because if you take a look at, uh, you know Gold this is this is the, uh Gc.1 cec commodities exchange Which is where they're pulling this information from and you can see that it's pretty much flat Which is I I think kind of it's kind of kind of funny and then also I thought it'd be better If uh, if they would have thrown up the jp morgan chase stock right behind them and then compare that to bitcoin and see how it's doing for a year to date That's good. We're actually so I'm sorry. We should go for a year still still outperforming 22 Versa 105 percent just saying so anyhow, let me show you Think about that in the comment section and lastly, we're getting the q&a part Coinbase and the sec that's just uh, this was the first day This happened in new york district, uh court case And here's what's happening. So If the sec is claim against coinbase it alleges that uh, 13 cryptos are more I would say Are all securities the list includes tokens like salana cardano and polygon? Which I think this is this is why this is such a big case right now. This is why everybody's covering it So Just to paraphrase what happened You could have actually listened to this live and then which is pretty coy didn't know that was actually happening But it all came out of this Coinbase first sec the judge says we need new laws for the crypto market the old 90 year howie test should not apply to the current market And then sec is getting spoke. This is both the current market and the current market Crypto could be we'll see This is also from ellenor terrett. She's on in fox business And she says to to paraphrase the sec lawyer said the congress 1934 will be surprised that today There would be such an easy work around that carefully constructed regulatory structure They create 1934 with regards to the market coinbase contends that sec has failed to prove that the 12 issues of the tokens and questions made any statements or actions that could be interpreted As engages in contractional obligation And then lastly paul says look the sec and Paul is the chief legal officer at coinbase sec cannot you know allowed to expand and redefine its own regulatory ambit This should be left up to congress and the ongoing legislative discussions about regulatory frameworks And that's actually what the judge asked as well As she came back and said this is judge Uh fight allow she's I think I said that right nailed it She asked the sec council Why she shouldn't listen to senator lumis About dismissing the case And then she says she's not just a random senator. She's someone deeply involved in this space. Why is she wrong? The sec lawyer says senator's opinion shouldn't be able to overrule 90 years of securities And she says well, we had a good run We had 90 years and these securities laws have been able to apply to these markets But now we have something new so again I don't think this is going to go the way the sec thought just the same way that they It didn't go the same way that they thought it would go for ripple And now here they are in another case and it's just like the elves are just kind of stacking up We'll see how it works out, but I get it's like it's looking pretty good for The lawyers that are or paul and coinbase and everybody else and also looks good for investors such as ourselves But that's it for tonight. So look Wow, it went long 20 minutes if you like today's video Late night. Give it a thumbs up. Consider subscribing. Everything we talk about is time sensitive