 Right welcome everybody to the Sunday stream So today a lot of things to talk about and the first one being the big one will be crypto contagion in Gemini And this is a concerning, but I think there's Probably a darker Hole Going through in the background. I think it's gonna be more important to talk about What could potentially happen? Also, we'll bring back a fan favorite clown news as we talk about no more prize winner Paul Krugman and his assessment of crypto and lastly I'll tell you the good news to just stick around and of course last last we'll do a little Q&A So first things first crypto contagion and Gemini and here's what's going on that came across so Crypto broker Genesis owes the Winklebosch exchanges customers, which would be Gemini about 900 million dollars And like we've been talking about in the show for quite some time There's been quite an issue with contagion, especially with what's going on Of course with the FTX collapse which started with really three O's capital and a lot of dominoes have fallen now Here we are. So here is what's happening with Gemini, which is not surprising I think people take a look at this and not that they file for chapter 11 It's not we're talking about but you can just see how this domino is teetering. So here's what we got digital asset training group Genesis The one that is essentially almost going through chapter 11 And if parent company digital currency group, which is huge and we'll get to that in a second O customers of the Winklebosch twins crypto exchange 900 million as the collapse of FTX Gemini's bid to recover the funds underscores other crypto lending market where investors lend out their coins in exchange for high rates of return Set to the center of the industry's credit crunch Genesis the main partner Let me say that again. Genesis is the main partner in Gemini's earn program Which you're not familiar It's where retail investors people like you or I Lend out their coins in exchange for a fixed stream of returns and I gotta tell you I don't see that really Coming back in mass. I mean we saw the problem with a voyager First we saw with Celsius now we saw in a voyager and now of course here we are seeing with Gemini Gemini halter withdrawals from the scheme last month the scheme I guess you can say it like that. It's kind of a very very negative way to say it, but it is what it is Gemini has now formed a creditors committee Which how many times have we heard about this to recoup the funds from Genesis and its parents dcg? Genesis has been scramming to raise funding and its hand has hired investment banking boutique Moellus and co. Let me just talk about Moellus and company real quick and then we'll get the dcg and why I think this is a bigger issue What's coming down? So Moellus and co? It's a banking industry. It's new york-based investment banking giant They launched a global blockchain group that provide We'll provide advisory services to blockchain and crypto firms, which I gotta tell you Pretty good time to do that since everything is collapsing Not everything, but the the ones that were swimming naked We might say is having harping issues And if you remember who Moellus and is Moellus and co. They've already dipped its toes in the sector with recently bankrupt crypto learning firm voyager digital Acquiring its advisory services at the start of july Following its alphated temporary suspension of withdrawals. I gotta tell you I think I'm in the wrong business I should just go into Advisory services because it works. It doesn't still get paid. So that's if you remember Moellus and co I'm sure they're doing great things behind the scenes, but uh, you know voyager now dcg group, who are they and we've talked about this before but the dcg or digital currency group They've got their Hands in a lot of things and this is the one that really concerns me Here's their subsidiaries genesis When we just talked about grayscale The one that has a grayscale bitcoin trust coin desk man foundry Luno trade bloc. These are the subsidiaries hq and of course if we take a look at the portfolio I mean, it's massive. I'll just do this real quick It's so big. It's got this is just investments that it's done. It's it's so large that it has uh It's alphabetized so Abra being one of them akala already abron axoni big time studios So on and so forth so dcg Just to get into it. This is the one that concerned me Of course, we talked about genesis, but really concerned about grayscale, but they say they're okay. I mean that's what every Central life player has said so far and then foundry. I'm like, what's foundry? And then we talked about this before but foundry If you take a look at a bct.com explore it up btc.com You can take a look at the pool distribution You know what the largest pool is right now in the world? foundry 23.44 percent good old us of a so When we talk about contagion things that are going on I know i'm not saying exactly that everything's in a collapse. That's what i'm saying. I'm just saying that there's a lot of interconnectivity with a lot of things that are going on As everything started with the collapse with 3ac and and it may be that ftx was more of Of a heavy hand than what we realize and the truth is going to come out But I see this as an issue moving forward, especially with contagion That's why i'm not really certain that we've seen a bottom Anyhow, so moving forward in this article dcg itself owes money to its subsidiary genesis These intercompany loans have complicated the picture for creditors. They're just moving funds back and forth. Oh, you have a problem We'll cover that. Oh, now you want to give us some money back? You know the money back? That's okay We'll just learn it over here and and we'll keep going down and maybe it's them Damn, they shut me down already. Sorry about that. That's a beautiful Puerto Rico Wi-Fi my apologies Over the summer genesis lost 1.1 billion on a loan to collapse hedge fund three hours capital dcg took our genesis slide It was in the process Subsequently subsequently owing 1.1 billion to genesis and of course dcg declined to comment as well as genesis declined to comment And that's pretty much where we're at so Look, I don't know what's going on the background, but it's just concerning to me Let me know what you think in the comment section. This is do you think this is a big deal? This isn't really a big thing. This is just a a sunday in crypto No big thing carry on citizen or do you think this could potentially be something massive? Anyhow, I want to think about that in the comments of the live chat and now Let's get into a little brevity as I have to call it which is Clown news And I do this because you have to understand don't take yourself too seriously. It's going to be all right This is just how things work here's what we got So Nobel prize-winning economist paul krugman, which I have no problem with I got no problem with paul Just some of the things he says says the crypto era may be ending fascinating So here's what? paul No, well prize winner has an opinion that the crypto era might be nearing its end based on the fact that his most recent Anti-blockchain piece attracted very little crypto bro outage our outrage I guess that's a good way to quantify it Krugman argues that the term crypto winter, which is widely used by the media to describe the ongoing crisis might be an Understatement I actually have to agree with them on this one. I think it is an honest I think we're going to see some some pretty big pain across the board, but there's good news. I'll get to it And this is according to him Krugman claims that blockchain the tech that underpins bitcoin has proven to be basically useless Distracted by the headline grabbing fcx drama many people failed to notice that many institutions starting Uh ditching blockchain after attempting and failing to use it for solving real life problems and he goes on to talk about how a A day of shipping giant mersk recently abandoned enterprise blockchain project that was supposed to improve global trade. Look now we're gonna work out In january the prominent economist wrote that bitcoin had virtually no legitimate users Which I find interesting because if you look at there's a great website in the block I don't have a link or anything, but it's a great website. You should check it out Here's a token summary uh, I find it fascinating that Who is in the money? Who is out of the money now right now as we as For where we're at we're in december 5th summer 4th 2022 you have more people out of the money than in the money And what's also interesting is that the holders composition by the time held or how long you've you've held your bitcoin You know 68 percent are a year or more. That's a lot of people Holding bitcoin because they believe in it. They think it's gonna do well And I think uh, there's a little utility moving forward and that's uh, that's what we got also If we're talking to look at like like uh crypto itself, I mean just take a look at stablecoins stablecoins are people something to say they're s coins whatever else But if you're making 300 dollars per month in a third world country and your government inflates it away And you can use the blockchain for stablecoins. I think it actually works out pretty well and you can actually retain it also crypto itself I like a project called world mobile token it's built on cardano And they are bringing connections to the unconnected Telecommunications to people who don't have it and it's actually working right now in zanzibar in different island places here in africa And you got a total network consumption of almost a terabyte 966 gigabytes, which we do think is it much but remember when we first started with With internet service nobody used that much either. So I gotta applaud that part Also, take a look at bitcoin I'll take a look at a thereme and the different layer one solutions and all things that you can do as far as Define nfts. Yes, I get that and then also There's one that I am uh, totally biased. It's a sweat economy The sweat coin is 100 free and I just paid out 50 sweat coins Which you can do use to redeem different items on the app itself or if you're out of the united states You can cash them out If you want to join that All you got to do is walk and download the app There's a link in the description looks just like this and that's pretty simple every month I give out winners of 50 sweat coins whoever beats me in the daily walking challenge And that's it. So again, let me show you a thing about that in the comment section I just find it fascinating that this gentleman here Krugman talks about it even though It's not like he's been a hundred percent correct all the time Krugman also said this By 2005 or so it will become clear the internet's impacting the economy Has been no greater than the fax machines So take it with a grand assault. That's why I like to hear from Krugman when he talks about technology as an economist I love it great insights and That's what we have. So again, let me show you about that in the comment section And remember the things that are going on Out there the people who talk about crypto Take a look at their track record. See where they're at and now we'll conclude that one now I know there's we talked about some bad news and some Some possibilities that could potentially come on the pipe doesn't look too great in certain situations as far as contagion Let's talk about some good news and that is With this Bear markets are here. I think we can all agree on that. How long do they last? Well Not that long. It just it seems like it's forever This is from my fast link in the description bear markets historically perceived multi-year bull markets And just to break it down how we want to quantify this Bull markets are associated with rosy or healthy economic activity Where prices have risen by at least 20 and expect to continue to rise Bear markets are the exact opposite like they drop 20 and we expect them to continue to go down so This is a great one chart one s and p 500 index and we can see Index bull and bear markets. One thing you'll notice is that Data can be manipulated. This is true. And of course you can make this look super tall and super short. It doesn't really matter But just remember this the average bull market Average is 1162 days and that's the truth. Average returns about 137 percent during the whole bull market not in like a day Average bear market about 225 days average drawdown 31 does that mean that it can't go longer? Well, it's an average So of course, so just remember this when you're going through the bear market like we're going through it right now It's normal. It's a cycle. It's not a big deal and uh Bear bull markets don't last forever, right? I think we learned a lesson I learned my lesson in 2017 And then 2018 people are learning the lesson now in 2021 and of course 2022 they're like, hey These bull markets don't last forever neither the bear markets So again, this is an opportunity to do what you want to do as far as accumulation or selling or what do you want to do? I can't tell you what to do. I'm not a financial advisor nor your dad But the data doesn't lie And there's some short times and also we even take a look at it a little bit clearer Here's the us bull and bear market cycles I'm a homer an american So I always talk about us just how it is But this one over here for ifast it only goes down to 1950 or go backwards to 1950 This one takes it all the way back to the great depression 1929 1939 And you can see that even the great depression. I mean it was a long time. Let's be honest 33 months Then we had a little bit of a run Then 61 months at last but ever since then you're looking at a downturn of a bear market of Roughly about two and a half years or so Two two and a half years. Maybe 37 months here. Of course, this was during uh World war two, hopefully don't get no even if we went into world war three Look how long this this bear market lasted three years roughly Not too bad 14 months For 1950s 1966 six months eight months 18 months 21 to the 70s 21 months And of course, this was the one of the bigger ones 31 months for that 2001 collapse For the dot-com era and of course the big one the great recession 17 months, which I think is not bad honestly a little longer But it just take a look at the at the bull economic expansion and that's it. That's the good news So don't get too worried about things and things are going to work themselves out Over time just depends on your time horizon if you were here to be the doge coin the next doge coin millionaire I'm surprised. I'm not surprised to tell you that it's not going to work itself out so far but Given the adequate time horizon things should work out. Okay, and this leads me to my last point balance You don't have to do this you can put all your money all your Your eggs in one basket you can buy Let's see dash. I don't know and hopefully it outperforms everything in the market. I'm not sure it may be a will I have no idea but for me. I just try to balance things out and this is my portfolio Balance I try to diversify as much as possible and a lot of cash right now because I expect More pain I expect next year to be either a soft landing Maybe or a heavy crash landing depending what the Fed does. I don't know But I just here to I think that we're going to see some some pretty lower prices on a lot of assets one of those being real estate so cash is heavy 1% and 2 stables 5% and some dgen plays which uh sweat coin is one of them 4% and some masterworks fractionalized shares of art 5 in land 35 in Real estate 5% in my business amazon 15% in crypto staking 1% in the itrest capital and 5% equity and also I'm unsure about the housing market right here and right now We're even talking about selling one of our our rental properties here in in Puerto Rico I don't know what's going to happen But I'd rather be a little bit cash heavy as things starts to subside than anything else But we'll see and then also masterworks, you know, I've got banks in a basket I'm doing pretty good 40 up over a year Here's a performance of fractionalized shares of art pieces. I'm not bad and then just so you know Art is crushing Traditional stock market and it's also crushing crypto just so you know and they just sold a bunch of art pieces Oh much of our pieces one of those 1.5 billion dollars worth And just you know, I know this may put some people's minds at ease But uh, it's registered with the sec because it is a security and all good news I'm gonna have somebody from masterworks come on the show because people have questions like hey How can we trust you and second of all, well, he's paying that you buy Where do you store him? Where can I see him? What's happening you're gonna rug pull us great question I'll bring somebody from masterworks on they'll answer all your questions But again, they are registered with the sec take that for what you will There's a link in the description Looks just like these and you can find out all the information about that But again to reiterate to make this crystal clear I don't have a hundred percent In masterworks it's very small Diversification that's all I'm saying that's it So look that's it for today for the news Thanks for stopping by and if you want to First of all you get out of here. I don't know what the world cup's on but The game is looking pretty good. So you got to take off watch football or soccer You know american football soccer get out of here. You've been here for 18 minutes or so Now if you want to go over the q&a, I'll answer all your questions the best my abilities and we'll go from there If not, thanks so much. I appreciate you for stopping by on a sunday. That's awesome Now let's get into a little q&a, which is And here we go John cutter had a good point Every day is something new. It's something new. I think that's a negative one but Expect this to keep happening expect this contingent to happen. So in all honesty Don't be surprised when it does focus on the things you can change and other things you can't change You can't change these companies collapsing. You can't change The markets imploding what you can