 Great well, the visual asset news they get top stories and crypto bring down a bite-sized piece So today you hear probably because of the thumbnail and the title which is Ray Dalio Talking about how cash is trash and it was a little snippet of an interview on a play for you We talked about cash trash talks about the collapsing markets and why everyone's selling today and the future So that's the bad news then we're gonna take a look at some good news We're talking about 0.3% of households of wealth is into crypto and knowing that I think we've got a very long way to go And then we're gonna talk about why we're here extremely early and the upside That is in crypto and the last that's in the very end. We'll go over Q&A So just so you know if you're here for the live stream, welcome Thanks for stopping by on a Tuesday So we do Q&A at the very end goes kind of long sometimes But what we do is we we cut the Q&A and then we make that for a separate video So if you're here for the Q&A, I'll answer all your questions at the very end So let's just jump into it real quick and take a look at What is going on with the market today? So today Is a correlation day and in all honesty and yesterday Uh, a couple people notified me that I was looking at the five day for the s&p and the nasdaq So thank you guys so much for letting me know about that. But today I mean, we're down yet again. So, uh, negative 3% ethereum 5% our market cap is 1.3 trillion just barely holding on and it's down 4% tether And let's say what else everything's down except for tron 2.7% good job tron holders Making that mini bull run Just kidding and everything else is down for 24 hours anything up. Geez I mean, there's something up in the last hour zero point stable coins Yeah Five something like that. So no Just a bad day overall just the red day. That's just the natural swing of things these these markets Uh, they go up they go down and uh, sometimes there is is an extension of what is going on So that is happening right now and let's just take a look real quick at just a little bit of macro of what is going on so yes, because uh The s&p 500 down almost 2 we are down 4 percent and also Nasdaq is down almost Three and a half 3.26 and of course we're down 4 percent. So, you know, I think it feels like we're kind of in lock step Unless something Catastrophe happens or some major huge news comes out like, you know, the uh fed reserve In america starts to embrace bitcoin or the imf says bitcoin's gonna save everything I uh, I don't see much of a reversal anytime soon and we're gonna be here for a while also just know that We're in a macro environment. So we it's not just like we're in a bubble Everything affects us, especially with the traditional market and then of course our market. So there's some uneasiness going on Especially with this little news article. I I drummed up I found that uh, chinese and russian nuclear bombers are flying over the sea of japan as Joe biden visits tokyo And uh, I thought well, that's a coincidence maybe but of course it states here mako said mako Moscow said the 13 hour flight Was carried out strictly in accordance with the provisions of international law and not directed against 30 countries Japan's defense minister condemned the exercise as provocative and acceptable. Yeah, if i'm gonna fly out 13 hours There's gonna be a pretty good reason for that. That's just a show of force and that is what is happening also Um, that's uh, not the greatest news. I think that's just a big flex situation But also, uh, this to me is actually good news new home sales are down And uh, to me, I find that positive because if you've seen the reports, uh, there is just not enough inventory and the prices We're just going just astronomically high. So when we see these types of thing new home sales I know this lady looks like You know, she saw a ghost or something but in all honesty These home sale prices have to go down. So people can actually get affordable houses and they can't be You know buying houses that are 200 300 percent over market value. I'm not just an exaggeration. You know what I mean So that's actually good news. So that's what we have in the macro environment. Let's take a look At my man ray dahlia. So ray Uh, one of the most important and probably, uh most revered traders or investors of all time And uh, what he's what he's here to talk about is how cash is trash. He says he talks about You know that you should get out of cash and then talks about collapsing markets and he talks about why everyone's selling I thought it's a It's a good backdrop to kind of understand exactly why things are the way they are So I cut out the first minute where he just pretty much, you know Talks about Cash and trash whatnot, but he really gets into the details here the next three minutes So I'm gonna share that with you. Let me share my My tab Let's see here brave tab Cash is trash. So you can actually hear it And let me mute myself and let's just take a Uh, when there's a lot of debt One man's debts are another man's financial assets And they have to balance both of those things And so they will not be able to raise interest rates to a high enough level To adequately By a real return To investors. So if you think about the rising rates and we say three percent is an interest rate Right or even four percent an interest rate That is not going to be an amount of money that's adequate to compensate for the inflation rate And we're in a paradigm shift. I think a paradigm is You know Something happens for 10 years an environment for 10 years And at the end of that 10 years people believe everything that happened in the prior 10 years And then they get a surprise right and then they start to change and something like for example Do I cash is a safe investment or bonds are a safe investment after a 40 year bull market and those types of things That begins to shift as they start to think am I getting a real return? So there's going to be a supply-demand balance most importantly the federal reserve is going to sell Individuals are selling Foreigners are selling and the u.s. Government is selling because it has to fund its deficit So there's going to be a supply-demand problem That means that it produces a squeeze because so much money was put out at such cheap rates And so much financing was taken that it'll be difficult to achieve that balance So I remember when you would tell us the cash is trash. Yeah, is cash still trash? Of course cash is still trash Cash I'm asking you or is your interest you know how fast you're losing buying power in cash I feel that in terms of inflation every day. However, I'm also for those who are own equities out there They're feeling it even worse. Well, it depends what But depends what cash is equities are trashier Okay, the question is what's going to get you a real return, right? And so we've shifted it into an environment where assets that do well almost like in the 70s Are in those types of things real assets real return assets in various ways are the best investments I think the world is Long that here's a dynamic. I think that's a problem everybody's long equities and so on and Everybody wants everything to go up and the federal reserve wants everything to go up So what they do is they give you money and credit lots of money and credit that helps hyping it And when the more they hype it the more it becomes somebody else's financial asset They're holding yep, and so the world is holding all these financial assets and so on you can't have that So you're going to have an environment. I think of negative real returns and so That's the thing right there where he talks about and he said about perfectly he goes there is I mean cash is trash but equities are trashier And the problem with equities being trashier is that people don't they still believe that we're in 2011 2012 2013 and that this will just go on forever But what they they fail to realize and especially people who are younger who just got in who are maybe in your your late 20s early 30s You don't remember that the dot-com bubble. I mean things can go to zero things get wiped out 2008 2009 people were losing their houses left and right and people don't remember that because we've been in this Magnificent bull run for so long. So when ray talks about look Cash is trash debatable But these equities are trashier and they are over inflated because of the bottom line That's being printed and put it into it and of course the ETFs that are being bought by the Federal Reserve Which leads me to my point The good news 0.3 Of households and this was a An article from fortune And they talk about the 1 trillion crypto collapses crippling digital coin bulls But the rest of us will hardly notice. This is from this section from Goldman Sachs friends of crypto. I'm just kidding So here's what it comes down to Adding up america's crypto losses. Goldman's chief economist jan Hotzias Nellitt and his team say that america's crypto hodlers have lost about 300 billion Okay, that seems like a lot in the great crypto collapse the past six months That may sound like a big number, but it makes up a tiny portion Which is 0.3 percent of american household wealth and contrast america's heavily invested in stocks Which represents about 33 of household wealth. So i'm just think i'm just it's like i'm taking crazy pills I'm thinking myself. Why is it that everybody is so caught up in In equities and stocks and they think that that is the only way when in all in all honesty We're in a market cap in crypto of one point Well, we're gonna probably go to 1.2 something trillion today And if we can take a look at the over inflated stocks that are out there, why do people get into that? 33 percent of their wealth is that just don't really get it or is it is it education? That means this is all just a big scam or something like that I mean, there are some very smart people coming into crypto and bitcoin. So when we when I see this it just makes me think Why aren't people getting it? Why aren't people going? You know what if it's over inflated like that We know that cash is trashed. Maybe we get into something and like bray was talking about maybe there's some other things That are a little bit safer like in the 1970s and like I mean my wife We love to get into real estate. You know that I say all the time this channel So like when I see stuff like this new home is over down 60 percent That's not a bad option But what's an even better option in my personal opinion not financial advice I'm not a financial advisor is once you get into a little exposure into crypto and digital assets And I think once we start to get a little bit of regulation in there then some of these big institutions will come in then they will actually Uh Recommend it to their clients go look We don't know what's going on with these equities But this is an underappreciated class. Maybe we can do one to three percent and go from there and as a reminder Uh, I know people I know I say this I I show this a lot, but it's a good reminder That look this little square is a hundred billion Here's coins and bank notes. Here's us right here. First of all, it's nothing And then we've got the feds balance sheet. No, it's way higher. This is what it's in 2021 I think billionaires here's gold 11 trillion Why fortune 500? Alphabet amazon da da da stock market is almost 100 trillion money supply is way higher now at 35 trillion by 50. Who knows global debt You're looking at 253 trillion global real estate again 280 trillion and then uh, what's the big ones? Oh, yeah derivatives almost a quadrillion So when I see that these types of stories come out, I'm like and then I I hear Ray Dalio talk I'm like, why don't people get it like If they just want to save a little bit of wealth and maybe Conserve it and then go in here for the long haul This would be the better option But that's just me and I can't tell anybody what to do because I'm not a financial advisor And then to finish up these patterns imply that equity price fluctuations are the main driver of changes in household net worth Well, cryptos are only a marginal contributor exactly. I think it should be a bigger one, but we don't have unfortunately the uh, the clarity that some of these these big name money people are are into and also I forgot to put this up, but jp morrigan Just added like make another hundred or 200 different financial advisors to their roster because they're gearing up for some big thing I wish I would have put it in here, but I know that If they're gonna do anything in the planning right it would be right now So maybe these financial advisors who they talk to their their clients might say something like hey, maybe get into Fill in the blank. So anyhow, that's What we got for that little section. Let me know what you think in the comments And let's talk about this why we're early so This was this comes down to a graph that blockworks had shared and it didn't make a lot of sense at first And they said 12 of us adults have used crypto in 2022 And of course in the comments people like use what do you what do you mean? Like like they use an centralized exchange like they use it for for payments like they use it for Whatever whatever and of course it's just twitter. So you really can't get the whole story So you got to go to the actual article and which is this Income impacts how consumers use crypto the federal board say only three percent of us adults using crypto for purchases or money transfers and they're most often low-income earners. So this is what we got Fed report shows that people who use crypto for transactions are twice as likely to be unbanked Which makes a lot of sense, especially if you're trying to move funds around or I mean, if you're from bank, how are you going to do it? Right? Or if you're trying to send money back to another country that you may be from Higher-income earners are more likely to use crypto as an investment tool. That is very true So here's what we got digital investors are going to be using crypto to make money Digital asset holders think about tokens Come down to their income level 12% of adults in the us reported holding digital assets, which I believe would come down to this 12% of us adults So 12% are holding digital assets 12% that's nothing 3% reported using crypto for purchases or money transfers according to feds economic well-being of us household report And in 2021 almost 60% of adults use crypto for transactions Had an annual income of 50k or less and then of course 24% of transactional users Report an annual income of 100k or less and then to finish up Those who hold crypto purely for investment purposes are disproportionately high income Which makes a lot of sense because the high-income earners are the ones that actually can afford those crazy gas fees from ethereum Just saying In 2021 46% of us using cryptos only for investments had an income of 100k or more Well 29% had an income under 50k and then it's my personal opinion that The 29% who are under 50k who are dollar cost averaging and may be waiting a little bit longer Will probably be the ones that are are having the 100k or more as time goes on So that's just the first part of why we're early And then you have to remember first of all I'm old And I remember times before the internet and I remember times using Do we decimal systems and actually mailing a letter before emails because who would use emails? I mean, why would we that makes no sense? So the things that we do today are just commonplace. They're just commonplace like I remember There was an interview with bill gates and uh, david letterman In the early early 90s and david just made fun of bill gates. He goes that makes no sense Why would I use the internet when I have a radio or a tv to watch a baseball game? Why would I watch over there? That makes no sense. He's like well, you can record it He goes, I got a recorder. I used to use my vhs So like that's laughable these days and the same thing Are these big companies that are just kind of emerging and one of those, you know Give coinbase a hand is that coinbase today? Well, not today just reported enters the fortune 500 list of the biggest u.s companies the first one The first corporate company to join the list recorded record a revenue of over 7 billion almost a billion in fiscal year 2021 And placed 437 now. I don't know if they're going to keep that Because q1 of 2022 is pretty brutal, but this is this is what it is The nasdaq listed crypto exchange posted revenue of over a billion Uh having first listed on nasdaq in april 2021 imagine that In q2 of 2021 They just got listed on nasdaq and they entered the fortune 500 Within a couple of quarters. That's pretty amazing The fortune 500 represents two-thirds Of u.s gross domestic product gdp with revenue totaling 16 trillion dollars. I did not know that so Hey, I know I've been pretty critical of coinbase. Congratulations them for making them to the top You know 500 so great and then also I know we're early because the different services that were in the past Uh, it seems ridiculous now to thank yourself Um, yeah, I'm just going to go To the store all the time and get everything that I need. I'll never shop online. That's why we have amazon or I got I'm just going to go walk down the street and pick up a A dvd of the latest movie that just came out and then we'll pay some rent fees from netflix That seems ridiculous because now we have the you know now we have netflix or If you're you're only stock, you don't really have netflix. You probably maybe have disney plus or something Hulu, so it's just just goofy. So like these this is why I think I know we're early because the products of of of buying equities or stocks and then going to another app And purchasing crypto. I think those days are numbered Um, we had talked about this last week fdx seeks acquisition in brokerage space Uh Sources remember discussions told cbc that the bahamas-based firm has spoken with weeble apex clearing in public In recent months and just so you know they already ruled out this option I don't know why this this article says like this, but we've covered this last last week They had already rolled it out to us customers On a case-by-case basis and they could actually purchase stocks on on the fcx platform so again This is going to be like the normal thing as time goes on people like well I'm not going to open up robin hood to get tesla And then I'm going to open up coinbase to get bitcoin or or cardano or solana or whatever else I'm just going to do it all in one place because I use two apps. It makes no sense And then just to finish this article up Uh, this was from the president of fcx on any given day A person might want to buy bitcoin or then I want to buy some tesla exactly They're not going to want to open two different accounts the reported conversation with brokerage companies Also follow ftx CEO sam bakeman freed buying almost eight percent stake and robin hood I think we've heard about that, but this is also interesting ftx us last year bought digital currency futures and options exchange address And it moved to bring crypto derivatives derivatives to its us user base It bought a stake in stock exchange operator iex and enough to establish a simple and transparent market structure ftx also revealed february 1st was set to acquire fin tech firm liquid group in a bid to navigate japan's crypto exchange laws, so if you're looking for any Company that probably go public at some point might be ftx might be an idea to take a look at their token too But that's not financial advice. It's just something to talk about and that's it So look, I know it was a little bit. Hey, we hit 20 minutes. Great