 Okay everybody welcome to the show. We got a ton of stuff to go over so let's not waste any time just jump right in First of all, I know that There is a lot of things that are going on But as a general reminder and we talked about this yesterday is to be hyper focused on the things that you can change Now the things that you can't change. We all know there's a lot of things going on in the Middle East. There's a lot of Problems that are happening between Multiple sides and we don't know where things are going to pop off and I'm not a geopolitical expert So I'm not gonna weigh in but again as our reminder Try to focus on the things that you can actually control and all the things you cannot control what we can control It's the things that we do in our reactions to events now. We talked about Possible recessions possible depressions and possible different other things that could potentially happen yesterday and we took a look at Markets traditional markets and of course crypto and gelasset markets and how they fare in Times of panic and times of war and went all the way back to World War two and I have to tell you Again the things that we can control during times of war. There is a positive correlation with returns So I know everybody talks about, you know, these things will you know tear everything apart. Well Just watch yesterday's video and we go from there also, I know there's a ton of fake news out there and a lot of things that are being passed around on Twitter on Tiktok on Instagram whatever place it that you can find it. There is a individual journalist of BBC and he's done a great job Cheyenne So does idea I think I said that right out of the UK And he takes a look at all these difference if you're looking at all these pictures and things that are really just going down A rabbit hole first go and find this guy and I linked him in the description and he's debunked a ton of different things so far about What's going on so again all these things that are that are happening who knows if it's real who knows what it really is But this gentleman here he's actually will show you the pictures and the videos from one image And I'll show it to you from like a year or two or three years ago So just be aware that a lot of things that are out there are just fake So having said all that Before we get into the fidelity report, which I got to tell you fidelity has 4.5 almost 5 trillion assets that are management It is an enormously bullish what they just put out and this is the type of report that you can give to anybody Doesn't matter how down that rabbit hole traditional finance They are doesn't matter if they're gold bugs doesn't matter if they're in the stocks or bonds over else It is a great report to show them and just a really for them to dig in and lays bare a lot of the truths That is Bitcoin before we get into that I just want to talk about a little bit of a other bullishness in the markets and what is going on I'm not a very big. Hopium type of person But when we got a ton of negative news and try to balance things out a little bit of positive So this was Paul Tudor Jones and he was on CNBC and he talked about what's going on with the equities and how everything's in a fair as far as like with a recession which is potentially coming in and This is a minute and a half. This is from documenting Bitcoin I linked their Twitter account in the description so you can check them out But what he says right here is great and again Paul Tudor Jones multi-billionaire guy and and he was the one that has really got his nose what's going on in the world He was the one that in 2019 with the Davos and pretty much told everybody that The surveys of iris was right at our doorsteps and he was right because he essentially has some type of information The normal people like us don't have so I'm gonna have you I'm gonna play this real quick I'm gonna bring up the tab itself so you can actually hear it Just take a listen. It's about a minute and a half or so. So here we go. You take I think I Think now the barbers relics and I would lump gold and Bitcoin together. I think they probably take on a Larger percentage of your portfolio than historically they would because we're gonna go through both a challenging Political time here in the United States and we're gonna go through we've obviously got a geopolitical situation So I would I would say but high interest rates were supposed to be the thing that was actually gonna be unhelpful to Bitcoin Well, and I think on a relative basis. Look what's happened to gold. It actually has been clearly. It suppressed it So you know that more likely or not, we're gonna go into recession There's some pretty clear-cut recession trades the easiest are The yield curve gets really steep term premium goes into the back ends of Of debt markets, right into into 30 year and 10 year and seven year paper The stock market typically right before recession declines about 12% That's probably gonna happen at some point from some level and You look at the big shorts and gold more like than not in a recession the markets typically really long Assets like Bitcoin and gold. So there's probably a 40 billion dollars worth of buying It has to come in the gold at some point between now and if that recession actually occurs So, yeah, I like Bitcoin and I like gold, right? Great, so your permission lays it out. He's like look the recession is probably gonna come and there's a couple of reasons Why and of course because of that actually happening There's gonna be some type of store of value that we're going to get into him being one of them And of course a lot of his buddies and that would be digital gold Bitcoin and just regular gold I own both. I still understand the problem With people Especially with the gold bugs as they talk about like hey, you know, you shouldn't own Bitcoin like we're on the same team I'm pretty sure I don't I just don't get it. We're here to make some, you know Have a little bit of profitability, but whatever so what he talked about there and he's right He talks about the different The yield curve as it inverts and uninverts This is the treasury yield spreads against his Ben's website in the crypto verse link in the description 10% off the first month There's no sale right now, but maybe next month. Maybe then will will be so kind As to as to limit the and I'll drop the price a little bit, but anyhow, so we take a look at the the Yield spreads you can see that yes right before a recession when we blow this up They will invert and they will go down they want to invert and of course things are going good And then we'll go in this great part, which is the recession itself and that happened during the surveys of virus I stole that from George Gammon. I even check out a channel. It's great stuff. Also, let's see over here in December Oh, is this oh one during the Dot-com crash and you can see here that of course again treasury yield Inverts and an unverts everybody's happy and then we're going to go into recession And of course that is happening. All I'm getting to is that it's happening right now It's going down. It's inverting now. We're uninverting, but we aren't at that very point where it's actually at base so we're waiting for it to actually happen and then we'll probably get a recession and You know when that happens It is a natural there's a natural cycle and not only that and if you take a look at the United States with their debt to GDP ratio You know, we're at a hundred twenty two percent hundred twenty nine and we're writing things pretty high We should be around sixty sixty eight percent. Of course, that would be the ideal But of course, we're America. We love debt. We love the print money So here we are and of course in I think a couple years are the the interest on the debts Which is over trillions or trillion is the more that we're actually going to spend Into the military industrial complex. So if we think about it, there is a ripe time for that But don't despair because as a reminder and we talked about this about a week ago or so Recessions don't last forever bear markets don't last forever and bull markets They don't last forever either Everything is a cycle and we average these out going all the way back to the 50s The average for a recession is roughly 10 months now some last a little longer Some last a little bit shorter But you're looking at about 10 months and if we go into q3 and we have a recession What does that lead us into all it leaves us into roughly 2025 what happens after a Bitcoin having? I think you know the answer So not to be outdone Fidelity this was a great report. It's 23 pages. I'm gonna try to I'm trying to breeze through this as fast as possible I highlighted the good stuff left out the kind of boring stuff, but I linked this Document in the description. I'd love for you to share it with everybody who you think would actually be able to understand it A little bit and here's what it says and again fidelity if this is what they're telling their clients 4.5 roughly 5 trillion assets that are management. I think we're in good hands So this was released the end of September 2023 and just heard about it today Bitcoin first for visiting here is let me see if I can blow this up a little bit. Yeah, perfect. Here's the summary One of the first concerns investors have regarding Bitcoin is as the first digital asset It may be vulnerable to innovative destruction from competitors such as like my space and Facebook Of course They're talking about in the good old days in social media before we ever knew Facebook was gonna be a juggernaut We're like, you know my space will take over or some other thing that was our our friendster offer people remember that and of course It was Facebook so they're getting to the the crux of it Which is I know people they think that something better is gonna come along, but it's not I know people right now are screaming at that the screen going but Rob You're an idiot because there's much better technology than Bitcoin. Hold on. We'll get to all that. I got you So Bitcoin is best understood as a monetary good one of the primary investments these Thesis for Bitcoin is as a store of value in an increasingly digital world No other digital asset is likely improve upon Bitcoin is monetary good because Bitcoin is the most Relative of our digital assets secured decentralized sound digital money and any improvement will potentially face trade-offs other non Bitcoin products should be evaluated from a different Perspective and this is very true. Let's be honest Bitcoin now is the most essentialized It's the most battle tested it's been around forever and it's building number one for everybody talking about the flippening It hasn't happened yet. So I'm just waiting for that day Investors should hold two distinctly separate frameworks for considering investments digital asset ecosystem Second consider the addition of other digital assets and exhibit venture capital like properties again We start with Bitcoin then we get to the degenerate stuff, which is fine. I just think that with them telling all their customers I think this is a catalyst for growth So Bitcoin the network versus Bitcoin the asset I like how they did this because they pretty much laid it out as like this is What you have to understand and we're gonna talk about this in a second as far as like the network as it compares to like TCP IP and the asset which is the Bitcoin that we all know and love and have in our ledger or our Tangent on our ellipel walls and they said we can why we believe Bitcoin is best understood as a monetary good and they Put out pictures because it's a mixed thing simple Historians suggest the answer lies in several characteristics that make good money and you can see very very clearly here They they compare gold Bitcoin Fiat very nice durable divisible fungible portable verifiable scarce and a track record and Bitcoin has everything except for the track record We can't beat out in gold for the tens of thousands of years has been on the planet And we can't beat out Fiat currency yet as far as like a track record But if you take a look at all Fiat currency throughout the entire existence of mankind all Fiat currency Inevitably goes to zero and I don't know when the Dow is gonna go to zero I don't think it's gonna be tomorrow like like some people say but at some point it will so again durable Very it's non-destructible very hard to destroy especially the tens of thousands of knows that we have it's divisible 100 millions of satoshis per Bitcoin. It's fungible. Of course, you can have one Bitcoin for one Bitcoin one goal for one gold It's portable. I do all that to remember is my 24 word mnemonic phrase I can take it anywhere very tough for gold to do but pretty easy for cash Verifiable which is on-chain. It's scarce to 21 million actually. It's not scarce. That's not that's not the right word It's finite because gold is scarce, but Bitcoin is fine. It's only 20 million. We keep finding gold for some reason It's amazing and of course the track record So again as I'm going through this just think about all the people that get to read this and are gonna go through this Especially the people that are in traditional finance. They just don't get it yet They're like, why would I invest into nerd money which I've been hearing about for a decade now I know it's the best performing asset class so far, but why should I do it? That's what this is actually for and I'm again. I'm excited that we'd only put this out Bitcoin's values are imbiots enforceable scarcity and finite. It's provable finite 21 million and of course it talks about Why it's so good first is Bitcoin's centralization Don't to tell you about that and it talks about if the network is operated by mirror code Can this code be changed again? I love this because they put things in there because people are probably thinking themselves if this is just code Why can't we just change it and make it 42 million or a hundred billion? Yes, you can but only through consensus of the network participants or the node operators a change in Bitcoin supply schedule It's something that could happen in theory, but almost never will an actual practice I know people talk about this, but if people are going to vote and say, you know what? We should make it 42 million or a hundred billion You're taking away the best aspect of Bitcoin itself And you have to get all the node operators or at least 51% to agree to that and that's not gonna happen second the Bitcoin network is censorship resistant, of course because it's on an open ledger and We've seen what happens when different blocks are our fudges around with I think the Mara or riot blockchain We're doing some kind of Experimentation and they tried that and it was immediately rejected the Bitcoin network works just like it's supposed And then we get to the good stuff why you believe Bitcoin is the potential to be the primary monetary good We will not be as so bold as to predict there will only ever be one money But we do believe that one monetary good will come to dominate the digital asset ecosystem Do the very powerful network effects if investors are looking for a digital asset as a monetary good One with the ability to actually store value then they will naturally choose the one with the largest most secure Decentralized and liquid network now right now. I know you're thinking to yourself, but Rob my crypto is awesome You don't understand. It's great. It's super fast transactions per second can do all those things again Can you go through this and say that is the most secure it is the largest the most decentralized and the most battle-tested no Because Bitcoin was the first and it'll probably continue to be I'm not a Bitcoin maximalist I'm just saying I understand what they're coming from So for the case for Bitcoin the reflexive property is even more pronounced because it does not just include passive holds the asset It includes miners and I like how they break this down is so people understand that actively increase the network security As more people believe Bitcoin has superior monetary properties and not to store their wealth in it demand increases And it's just a continual effect more computing power devoted to Bitcoin mining leads to higher network security which in turn Makes the asset more attractive leading once again to more users and investors And this would have been a great time for them to put the hash rate, which is at an all-time high Which means if we're at an all-time high for a hash rate some at some point price will follow Which means that all the Bitcoin miners they're just talking about this little snippet Really believe in Bitcoin and are putting their money with their mouth is which would paint the price at some point go up Any subsequent monetary good would be reinventing the wheel and they go to some They're gonna talk about it here But I skipped it because when I talk about Bitcoin cash as far as like reinventing the wheel for Bitcoin You're gonna see why it works and why it doesn't work They talk about the Lindy effect Lindy's law is a theory that the longer some non perishable thing survives The more likely this is to survive in the future take a Broadway play if it's run for 10 years It's likely running another 10 years Compared to one that's only been around for a year and think about that for all the grip and cryptos that you're into And we actually did a report to take a look at how many different cryptos back in 2017 Were hit their all-times high in 2021 out of the top 53 only 11 did so again Battle tested and it makes sense as the risk goes down Makes more sense for people to invest into it And then it gets into the trilemma and this is where it talks about how Bitcoin of course Does have a flaw Security well the the trilemma is very simple security decentralization and scalability, right? So the more the more secure it is this is how likely it is a network can be attacked or compromised how secure is it? Bitcoin the main concern is a 51% attack which when I got in 2017 all the different miners and the nodes that were out there It was feasible It was actually plausible that that actually happened because we didn't have as much Security that we do right now and as much as many as many nodes as many Miners that are out there so the security was an issue It was a much riskier bet back then but we believed in it now here We are so and it talks about how it's way more Oh, here's the it's way more secure because the hash rate going up to talk It would take billions of billions of dollars to to attack at 51% as far as Bitcoin now other cryptos I can't say Decentralization how much control any one person entity or group may have on a system or network? Banks very centralized Bitcoin, Ethereum and a bunch of different ones much more decentralized Bitcoin the most essentialized So the less decentralized it is the user it is to change things on a system or a network because they can do what they want It's a one section and lastly scalable or how well the network can handle growth And this is where they said scalability has notably been the Bitcoin networks Achilles heel, and it's true Have you seen the transaction fees in 2017 in 2021 for Bitcoin? It's close to the roof and that was the whole point of the Bitcoin white paper a peer-to-peer transaction At that point it didn't really make sense and that's just the truth I know some people say well, Robert if I'm you know moving millions upon millions of billions of dollars I have to spend You know 50 75 bucks. I don't care. That's true, but I don't know how many of you've got millions of millions of dollars and billions I don't have billions so for me. That's not really a good state As far as a you know for a peer-to-peer I think for the majority of people that I want to spend 75 bucks to move 10 bucks of Bitcoin around just saying So then to move on not be a dead horse It's the Achilles heel because it maximized the centralization and security, which is a little bit, but as a result In the network with one of the slowest transaction throughputs. That's very true However, we believe Bitcoin is going the most secure and decentralized monetary works network So I like how they they say yes, here's the positives, but there is one downfall, but then they get into store of value And actually before they get that they go and they talk about improving Bitcoin the block size war And of course when they talked about changing the code, this is what they're getting to where they talk about Bitcoin cash And I got nothing against Bitcoin cash. I don't I know people hated Roger beer's guts when he did it in 2017 But I've had on the show nice guy and I can see why I did it Bitcoin cash case study advocates of this hard for believe Bitcoin should First and foremost be a literal peer-to-peer electronic cash system or a system that can handle large amount of transactions We emphasize that there is nothing wrong with this approach But it once again demonstrates the trade-offs made for scalability once you make things more scalable There's a problem with other parts of that with decentralization and security. I Have no problem again with Bitcoin cash. I'm just saying that even when the transactions go up The transaction fees do go up But it is a peer-to-peer transaction you use it and don't worry. We'll get the lightning network. So stop screaming at Bitcoin's market cap over a hundred times greater than Bitcoin cash Which means that investors have continued to choose Bitcoin as the preferred monetary network and therefore it appeared to be value-a-secure and Sounds store of value over faster or cheaper payments. And that's the thing. I Know when we talk about this and people will say well damn it. This wasn't supposed to be a Store of value This was supposed to be a peer-to-peer Transaction and I get it I understand exactly where you're coming from because it's easy to say right because that's what the white paper said And of course Pierce will say I am not I don't want to go outside of this because that's exactly what it is So when I think about it I really dig deep into it. I think to myself well, what about iron Well, actually, I'm gonna blow this up so you can see it and steel Think of it this way Bitcoin is a very new technology. It's only 13 14 years old, right? 2008 the white paper 2009 rolled out first blocks Genesis blocks But if we take a look at iron and steel, I mean iron was 5,000 years ago. I went early man Found it out and smelt it and started to break it down. They're very the most easy things trinkets jewelry Press plates some swords not very good though, right then around 1800 BC. We figured out. Okay, if we take iron Makes it with carbon we can make steel that was 1800 BC and of course what happens then well in the medieval times We use those for protection then as we moved on to the later 1900s. We made Look a motion We made steel tracks. We made buildings and everything else on top of that So even though in the beginning, I'm sure these guys medieval times this new technology iron They're like, this is it This is the greatest thing of all time and we can use these for just these little things as time progresses The technology catches up and they go, you know, we can do a lot more things. I think that's the same thing here With Bitcoin and moving forward so To finish up with this report Bitcoin superior monetary good The market shown a preference towards Bitcoin, which is slower as a payment system compared to the digital assets and blockchains Signals the market currently values a highly secure decentralized to revive. Okay, I read that. Sorry and then Okay, how Bitcoin positions itself against the rest of the ecosystem Bitcoin is currently the most secure decentralized network But at the base or native network layer, it is not the most scalable. That's why we have stuff like Ethereum That's all your stuff like Cardano and Solana and Cosmos and whatever your coin is don't Don't yell at me too hard if I didn't mention although no one knows exactly where what Bitcoin may become We may think it is we think it is instructive to examine two dominant narratives That have growth potential one is a multi-chain world, which we can tell right here. There's a multi-chain Maybe when it will take some maybe when it will take all maybe when it will take most But with Bitcoin we kind of see what it actually is and then of course on Ethereum Smart contracts stable coins defy NFTs all that stuff, right and of course there's other different chains So it could be a multi-chain world But they said something pretty interesting here They said just be careful with this multi-chain because people use tokens in an arcade for ease of use and utility And attribute value to them because they know they represent a certain dollar amount or can be traded for other goods and prizes However outside of the native arcade environments the tokens have no value little to no value So again think about that when you're investing into crypto and digital assets I can't give you financial advice, but think yourself. What's the utility here? What's really being used and if I get out of this little system. Is there any kind of value outside of this? This world leaves non Bitcoin tokens battling to do other viable use cases Yeah, and then a winner take all or most world another scenario that could arise if the ability for apps and scaling solutions To be built on top of the base layer or layer one if apps can be built on top of an existing blockchain network Rather than be forced to start a new network users would arguably want to build on top of the strongest Most secure network out there. This is what Adam back's always talking about. I couldn't really understand Till I read this Bitcoin is arguably the most essentialized and immutable blockchain and exist and appears as a prime candidate to be one If not the main winner, and this is how they compare it and it's beautiful. I did it TCP IP is the internet space layer provides the perfect example TCP IP is an open source base layer for communication to flow through and Subsequently applications and content on top of which it was built TCP a protocol is not owned by anyone It's open source allows the internet for a flow of information Does not allow ownership of the base layer. I mean it's here right here. TCP IP was created I was around that time and what was built on it everything that you see right here YouTube Facebook Amazon Google Apple Netflix all the webtoons that are out there, but you couldn't own the base layer But you could build on it Ownership is only possible for the applications and technology construction on top of it right ownership the base layer is Possible in the digital asset world. So again, the base layer will be Bitcoin or whatever layer one is zero that you got Then there's Bitcoin the actual network and you can be a part of that too You can be a miner. You can be note operator or you can build on top of that with something like lightning An investor can own part of the base layer of this new tech and be relatively agnostic about what apps are built on top This is why I like Ethereum too because whatever is built on Ethereum. That's a use case. There's utility there I know we just talked about it But I just want to bring that in so people don't think that you know This is the only thing I'm talking about as far as Bitcoin, but for this report makes sense It will be akin to being able to own the base layer of the internet and getting exposure to all the innovation built on Top of it Google and Amazon without having to try to pick specific ones Won't that be awesome if you get on TCP IP and then everything that's built on it You get some got a cutback. Ooh Good thing you were early, right? Bitcoin lightning is built using smart contract functionality allows off-chain transactions between persons with the ability to make a final Settlement settlement on the base layer. All it is is this me and you want to open up a channel We trade back and forth. Okay, Pete. You owe me a dollar. Okay. Here's two bucks. Here's $3 Here's $1.75 and we go back and forth for like a month. Then finally we settle off on the base layer, which we Bitcoin That's lightning in a nutshell. Hopefully it works out but It comes out of this Where people should Expand their portfolio so they make a base case for everything and this makes sense digital assets placed in the full portfolio Investment in the space are likely to benefit from segmenting Bitcoin and all the digital asset instruments as separate decisions allows for two simultaneous yet separate decisions made by allocators the importance of holding exposure the scarcest monetary assets or Other types outside of Bitcoin and then they talk about the risks Many of the risks and criticisms that could have been used to create a case for this demise of Bitcoin are gone or diminishing And each day the network grows stronger with more users miners and infrastructure is being built Which is what they laid the groundwork in the very beginning of this report There's also a problem with protocol bugs and I didn't know this Did you know there's a $1 trillion bounty for anyone capable of exploiting Bitcoin and no one's collected yet? I didn't know that so there's a protocol bug and it says the Bitcoin's case It is arguably the arguably the least likely protocol to encounter a major bug at this stage Have you heard of any double spend? Have you heard of blocks not being produced? Have you heard of any kind of hack in Bitcoin? I haven't In its life because it has existed longer than any other project and it holds an Intentionally simplistic code and again a trillion dollar bounty I didn't know that was even existed and it talks about nation-state attacks and in 2017 I kind of saw this would work But I mean now it's just I don't think it can happen potential for large countries to oppose the growth of digital assets Now actually that can happen because America is not too keen on Bitcoin and crypto Good old Joe Biden and good old Gary Gensler kind of despise it In other words, it's not that we think an allocation of Bitcoin does not come without risks But we think some investors are overestimating the downside of Bitcoin when compared to the digital assets And it talks about the growth of digital asset economy and everything's gonna happen Not Bitcoin risks and return drivers and it takes a look at Between what I looked at 2017-2023 Actually, if you go back all the way Bitcoin's always number one and it takes a look at and just reminds people that yeah In 2017 these were the top 10 steam Number nine was mates. I don't know what made save coin is And I was around 2017 auger a counter member dash. Yeah, he's classic. Yeah, I'm an arrow. Yeah Like coin XRP Ethereum Bitcoin 2023 Bitcoin Ethereum XRP BNB doge Which has been the top 33 since its inception in 2014. I might remind everybody Cardano, Solana and Tron so Jazz it kind of just points out and then they talk about the conclusion. They said look As a monetary good Bitcoin is unique therefore not only do we believe that investors should consider Bitcoin But that Bitcoin should be considered first and separate from all the digital assets that have followed it And that is it a nutshell. I know that was a little bit long That was a great report again. I linked this report in the in the Section underneath so you can find it very easy The description That's right today comments, but that is what we have for today and then lastly as a quick reminder I'm giving away sweat coin and that's gonna be in three days amazing how things Sneak up on us So we're gonna have the giveaway on October 13th or she was a cut-off is October 13th I guess isn't well going today October 14th. We'll give you the giveaway I'm giving away a hundred thousand total sweat coins. That's five thousand to 20 lucky people Also, we're giving away ten of their NFTs and then as a little snippet of Interesting pieces because I'm biased and I own a bunch of sweat coin You know sweat coin was ranked 548 or 534 depending if you're looking at coin get her a comarcap in June and now it broke into the top 300 So just saying on top of that. We take a look at DAF radar. It's number four In all the wallets and all the apps being used and the only one that's beating them is Pancake swap and a couple of games Stargate and Galaxy. I don't know which they are but looks interesting So that's all we have and that's what we have for today. So I know it was a bit long, but I do like that That document so look like today's video give it a thumbs up consider subscribing I'm gonna talk about this very time sensitive. Thank you so much for stopping by I do really appreciate