 Welcome to Digital Asset News to get top stories in cryptocurrencies, digital assets, and break them down into bite-sized pieces. Today, we've got some interesting stuff, and it's a continuation from the stories we followed up on yesterday. So first up, PayPal stock shoots to record high after introducing cryptocurrencies to the platform. When we covered this yesterday, we talked about PayPal adding cryptocurrencies to digital assets, but there's a ripple effect for what is going on with PayPal. On top of that, there's questions that need to be answered, such as, are exchanges going to be effective massively by this? Will merchants actually get paid in cryptocurrencies? And where is PayPal buying their cryptocurrencies and digital assets actually from? Also, on the heels of the presidential debate for tonight, we've got a great article where it talks about Bitcoin proponents, bemoan, or do not like Joe Biden's proposed capital gains hike. And I'm going to explain why there's no need to be afraid of what is happening in the presidential race, what is happening with legislature, what is happening with regulation, as long as you are proactive versus reactive. And before we get into that, I want to make a huge announcement on this channel. I'm very leery about doing any promotions. I must get between 20 and 30 suggestions every week from crazy exchanges out there to some ICO crazy coin from nowhere stand. So to date, I have only had one other promotion on this channel, which is CryptoTrader.tax. And I love them. I encourage everyone to check them out. Their link is in the description below. But today is historic as we welcome in our second sponsored video. And it is from iTrust Capital. I've been talking about iTrust Capital for months and we finally iron out a deal. So I am very proud and happy to have them in as today's sponsor. And this is going to go hand in hand with the article we just talked about with Biden and his tax proposal. So if you're interested in not paying taxes, stick around. But before we do all that great stuff, let's take a look at what's going on the market. And it is a fantastic day. Look, Bitcoin is at 13,000, so it broke open the trend. I'm really happy about that, as I'm sure most people are. We're up 2.3 percent in 24 hour time period, 14 percent for the week. And that is massive. Ethereum up 6 percent to 417. We might be nearing that 450 mark. And that is great news for everybody. 10 percent for the week. Wow. Ted is up .3 percent. Nobody cares. XRP is actually up. 3.7 percent just on the news of PayPal. But the question really came out, which is why did PayPal choose Bitcoin, Ethereum, Bitcoin Cash and Litecoin and just totally leapfrog. XRP. Interesting. Let me know what you think in the comments section. That should be a hot topic. Chainlink up 12 percent in one day, 12.1 for the week and at 12,027 cents. And remember, Chainlink, I think it's all time high was around 18, 19. Double check me in the comments section. So we'll see if Chainlink can actually meet or extend past that over this nice little mini bull run. Finance come 2.5, Polkadot 4.4, Litecoin 4.8, which I thought there would be a much bigger pump for Litecoin as they are one of the four that PayPal has agreed to list on their platform. So interesting. Cardano's up. Everybody's up. Let's see who's down. Crypto.com again down 30 percent for the week. I know some people talk about, I don't know why people are spreading the thought about Crypto.com. Well, there's got to be a reason because down 30 percent almost. Tron up 1.4, Tesla's up 3.6. Everything is up. What's down? Well, OK, be the token for OKX. But that's just because of their horrible policies that they have set in place for the founder to be the only one that holds the private key. Yeah, fantastic idea. Beaching up 8.7. Great for all you beaching holders like myself. Theta's up 1.8. I just did a live stream today. I usually do it 11 a.m. to about noon, 11 a.m. Mountain Standard Time. So if you got time, check me out on Theta. A lot of good interaction, a lot of good questions and try to answer the best I can. Uniswap up 4.2 and someone had made a mention like, hey, Uniswap's down majorly. Why don't you talk about your mistakes? If I talked about my mistakes all day long or on this channel, we would never get anything done. There's a ton of mistakes I make. So in Uniswap, I did say it would go up, but I didn't say it would like go up every single day. So remember, we are in Cryptocurrency as an asset, so just be patient. You don't like the price, just stick around for 30 minutes. It'll change maker at 4.9. OMG, everything's up. Anything that's going to go. Wow, hey, Celsius now work up 12 and a half percent. Holy smokes, but they are down 1.8 over the seven day period. So at $1.28, so congratulations to Celsius, one of my faves. And Ave finally breaks through up 8% to $38. I like to see that year in whatever. That's it. So I'm not going to dwell too much on this. Looks like it's a pretty good day. Let's take the W and go on to our first topic. So first up, PayPal stock shoots the record high after introducing crypto to the platform. And of course, everybody's been talking about this. We even talked about this yesterday on the channel. But there are some lingering questions that I think we need to answer. So PayPal holdings plans to allow customers to buy crypto through their accounts and use cryptocurrency for merchant payments. A move that helped power its stock to a record high and was a trading. And I can tell you right now, I will definitely be putting this on my websites to take payments because this is fantastic. However, as far as customers like me and you being able to buy and hold and sell crypto, this is going to be rolled out in the coming weeks in the United States. I actually reached out to PayPal to ask if it was live right now. And the rep said, no, of course, I did the same thing with my USA Bank. When I had this the same issue come up about, hey, are you going to actually integrate with Coinbase? Like, we don't know what you're talking about. Of course, it was been integrated for like a year. But maybe that's just how customer service is. I don't know. But the big news here is that you have to understand why it's big. It's big because not because I'm a big fan of PayPal. I could care less if they make a bunch of money. But their stock price went from 210 all time high to 213. Just an announcement of crypto and digital assets. Why is this important? Well, it's important because the different companies that are looking at what is going on, they're looking at Michael Saylor, MicroStrategy. They're looking at Square and Jack Dorsey. They're looking at NYDig or the other one that purges 110 million worth of Bitcoin. It wasn't NYDig. They're actually holding it. And all the rest of the people that are already in there, Fidelgeal Assets and Ameritrade and Paltier Jones, and they're looking at PayPal and they're thinking to themselves, hmm, maybe there is something to this crypto currency assets. Maybe Jamie Dimon doesn't know what he's talking about. Maybe they're reluctant some of the governments to get in and provide regulation isn't something to be feared, but something to look as an asset. Maybe these things are actually something to get into now and be in the beginning as opposed to being in late. Again, nobody wants to be first, but I guarantee no one wants to be last. So this is huge for companies looking from the outside in going, you know what? If this is the big push and this is what is happening to the different stocks, we should look into it. When PayPal had announced they were actually dipping their toes in the water and looking at it, I was like, why wouldn't they do it? I mean, PayPal and Jack Dorsey. I mean, half of their revenue is generated from Bitcoin to the cash app. So if you're looking at it as a payment processor, why wouldn't you look at this and go, you know what? You're telling me that we can essentially double what we do just by offering this crazy cryptocurrency? Well, I guess so. Well, of course, you're going to do it because that's the bottom line. And you have to be holding to your shareholders. So of course, you're going to do it. And that's why PayPal is involved, not because they believe in cryptocurrency assets, no one is foolish enough to believe that. They believe in making money and they know they're going to make a lot of it. So again, if you've got a big company like this, how many, how many big companies are right on their heels? How many mid-sized companies right on their heels going, you know what? We should get into that. I think this is the beginning. I think it could be huge, but there are some lingering questions we need to answer. So moving on, starting early next year, PayPal users will be able to use crypto to pay for goods or services from merchants who accept PayPal. And there's a lot of them. You're looking at around 360 million active users for PayPal, roughly 220 billion in transactions in the last quarter, the last quarter. So I think this could be pretty darn big and we'll just play it by ear. To continue on, consumers will be able to instantly convert their selected cryptocurrency balance to fiat currency. Let me read that again. Consumers, consumers will be able to instantly convert their selected cryptocurrency balance to fiat with certainty of value and no incremental fees. So the question is, can consumers and also can merchants just keep their balance in cryptocurrency for whatever they buy? I would think yes, as far as like a consumer. But for a merchant, if I'm going to get paid in cryptocurrency, I want to keep cryptocurrency. I don't want to convert it over to fiat. Money's on fire. Do you want me just to lose money? So the whole way, that'll be the case. But then the next question is incremental fees. It's very interesting because for every transaction for PayPal, it's usually 2.9, 2.99 percent plus 30 cents for a transaction. So the question then is, is that's what's going to happen when people are transferring back and forth? If it is, look for PayPal to make a massive amount of money, even more so than Coinbase. Anyhow, it states that PayPal argued that this move will significantly increase cryptocurrency's utility. Well, of course, they want to say that because they want everybody to go on. So we'll see. So now it comes out of the questions. And the questions that I have is, does this actually do anything for a cryptocurrency digital asset in our market, in our field? Is it positive or negative? And I think it's a little bit of both. I'm going to tell you why. Because positively, obviously, people are going to be exposed to it. How many people have their PayPal app? And it is when they look at like, oh, I can pay in fiat. What's this? Bitcoin? I heard of Bitcoin used to be a lot of money. And now it's, oh, it's on the way up. Well, what's going on? Maybe I should invest into that theory. I don't really know what that is, but maybe I can look it up. I don't know what Bitcoin cash is. That sounds cool. And then also like, I have no idea what that is. So I mean, when people are exposed to it more and more and more and they see these things happening, then again, they get more interested into it. So I think just for us, I mean, obviously it's a slam dunk. But there's another there's a flip side to that. I think that it also becomes a negative. And I'm going to tell you why. Because when people get into into Bitcoin, they don't really know about it. And they start to invest into it. What happens when we see a slippage? What I'm not slippage, but you know what I mean? When we see like an a reduction in the actual percentage of the value of Bitcoin, it goes from, you know, so let's say 13,000 people buy it and they really get heavy into it because they're so excited about it. They don't really know that, hey, this market is super volatile. And they're like, whoa, I just lost a thousand bucks. What the heck is going on? That's what happened in 2017. So I see this part of it as very negative. Plus when they look at it like, well, I know about Bitcoin, but what does Ethereum really do when they look it up and there's, you know, they hem and haul over it? So not a big thing. And then here's another problem I see is that when you have Ethereum and you don't really realize what it's for, you just know it's like, it's kind of like when retail gets in there, look at it like, oh, it's just like a stock. I'm just going to buy it like a stock because it's going to go up in value. But they don't understand the whole ramification. They don't understand like ETH 2.0 is coming. They don't really know about decentralized finance. They don't know anything about smart contracts. And then here's another caveat. Who's going to get the staking rewards? Because if we can't take cryptocurrency off of PayPal, which that's not going to be offered that I know of, then who's going to get the staking rewards? I can tell you who it is. It's going to be PayPal. So when they look at that and like, well, that's kind of a dirty thing if they ever figure it out. And hopefully they can, hopefully they can find a channel like this or the awesome channel over at Crazy for Cryptos or Coin Bureau or Crypto Noobs or Alex Maskioli or Unchained or any ones that I listen to all the time. If they don't find those places, what's going to happen? And I think it's going to be a little bit of a negative as time goes on. However, it is good for the average retail investor who's like, hey, I ain't got, I don't have time. I got 10 kids run around. I got three jobs. I got four side jobs and trying to have a social life. I'll just put some money in and that's it. So that's good, I suppose. But I think for the ones that really want to learn and know there, hopefully there's resources out there, but we will see. And the next one I had to think about is, well, how the exchange is going to be affected? Not that I'm like really crying over the exchanges and, you know, what's going to happen in these billion dollar companies? I think about it and I think, well, are they going to be shut down? Because I mean, everybody's going to go to PayPal. But I thought I'm like, that's, that's stupid, Rob. It's dumb because people like us, me and you right now, we're not going to PayPal. Let's just be honest. We're not going to pay those fees because we know that we can shop around and get some good fees. We also know that if it's not your, not your keys, it's not your coins or not your crypto. So we know that PayPal is a non-starter for us. So where are we going to go? We're going to keep going with the same exchanges that we do to you right now. We're also going to go to these things called decentralized exchanges, which I guarantee these new people have no idea what that is, or will they ever are for a while at least. So they're not going to lose us. And then as people start to get into it and then they start to realize what this is all about. Oh, well, Bitcoin is good because of the quantitative easing. It's actually quantitative hardening. Oh, it's censorship resistant. It means no one can take it. Oh, it's divisible. And I can, you know, buy a certain amount of shares. Oh, it's actually better than gold. And I can send it to anybody anywhere in the world in under 30 minutes. So I think once they start to realize it, then it'll be big. Just right now, I think there's going to be a problem. Um, and as far as exchanges go, I think they're all going to actually do very well, because once people realize what it is, then they're going to find the exchanges and off they go. So I think the crappy exchanges that are really not doing so hot right now anyhow, because they have poor liquidity, they're going to go away anyhow. But that's just how free market works. And the last two is, you know, who, who is PayPal purchasing the crypto from? I've reached out and nobody seems to know right now. So once I figure that out, I'll let you know. But I will just say that I believe it's probably like an OTC type of situation, just like MicroStrategy did. And in case you don't know MicroStrategy, of course, they bought $430 million with a Bitcoin just a couple of weeks ago. And the reason or the way they were able to do it without massively pushing the price up is they had a team of people that would actually go out and buy Bitcoin every three to five seconds. And it wasn't like, I need 100 Bitcoin. It's like, I need 0.1 Bitcoin. I need 0.08 Bitcoin. And they did that all day long, all night long for weeks and weeks and didn't move the price at all. I mean, very, very little. But now that they did it, I think the cat's out the bag and these other companies are like, I want to do the same thing too. No, not so fast, Charlie, because guess what? There's only so much Bitcoin to go around and people like me, I'm not selling. I think you, you ain't selling either because you know exactly what's going to happen. So we're going to hold on and we're going to have that Kung Fu grip. So good luck getting this Bitcoin out of my cold hands. It's not going to happen. And then of course, the last one I talked about will Merch be able to keep their crypto or be converted to fiat. Again, not for sure about that one. But if it's, if it's my choice, I'm keeping it in the crypto because money's on fire. Anyhow, let me know what you think of the comment section. Let's move on. So next up, there's a presidential debate tonight, so I thought I would throw this in. Also, it ties in perfectly for the sponsors of this video. I trust capital and I've been talking about them for months. And the reason why I accepted what they had to offer was because I use the product. I believe in their products. I'll be using it for the next 20 years. That's just just how it is. So when I see this article and I see the complaints in it, I think to myself, why is everybody complaining? Because here's the thing. Just because Biden might have a higher tax plan, does that mean that you're screwed over? No, it means you're screwed over if you're not proactive and you're just reactive. Do you think that Warren Buffett and Bill Gates and all the big money players out there that they're just sitting around going, well, oh, geez, I hope this guy does get elected. Are you out of your mind? What they're doing is they're talking to all their accounts and their lawyers and everybody else like, how can I avoid all these taxes? Find me the way. Well, guess what? You don't need a bunch of accountants and lawyers. I'm going to show you exactly how to avoid the taxes, which is exactly what I'm going to do. But first, let's get into this article. So what's going on here? First up, the U.S. presidential election is only 14 days away. Man, two weeks. Time moves fast. And a number of Bitcoin proponents have been discussing the capital gains tax implications. Joe Biden plans to invoke if he wins the American presidency. So check this out. Capital gains will go from 21 percent to almost 40 percent for certain income brackets. That's important to remember. Two weeks ago, Donald Trump said, you know what? I'm going to cut long term down to 15 percent. Sure, you can try that. But with all that quantitative easing, everybody did good luck not trying to get some kind of tax revenue. Anyhow, when people discuss the term capital gains tax, they're talking about the levy taken by the state when someone makes gains on the sale of any asset. After the original purchase, long term capital gains apply to levies taken by the state after the asset is retained by the owner for more than 12 months. So that's true and false. So here's the thing. There's a video I did. I've been talking about this for quite some time. It's talking about how to avoid crypto taxes. So if you have a traditional IRA somewhere else or an old employer plan, like a 401k, 403b, military TSP or 457, then you can move them over tax and penalty free to a crypto IRA, at I trust. And just to be clear, you can't move your cryptocurrency that you presently have into the crypto IRA. It has to be something like this or cash. So just so you know, but what I did months ago was I saw a little bit of my profits from Ethereum and I put in a cash and I rolled that into my crypto IRA. And now I'm hoping that I think I should be close to maxing out. So anyhow, onto the whole thing that we talked about as far as capital gains tax. So yes, capital gains tax, there are short term and long term, short term, less than less than 12 months, long term, more than 12 months. Okay. But the thing is that there are state taxes like what they just talked about. And I live in Texas, so I don't pay squat, which would be great, right? If that was the only case in California paying 10 percent, that sucks. So that's a bummer. But what a bigger bummer is, is the federal capital gains tax. So I'll go over the short term, which is the worst one you can get. So it's all dependent on how you file. If you file your taxes, a single head of household, Mary Fongioli, Mary Fongioli separately, and it's all progressive, meaning it's based on how much you actually have it as an income or what you claim your taxes. So for me, let's say I'm head of household, hey, and then I made, I don't know, 14,000 last year, right? So I'm going to pay 12% in short term capital gains because, hey, I don't make that much. So don't tax me so much, right? Now, if I make more, if I'll make between 84,000 and 60, I'm going to get taxed 24%. So remember, it is progressive. So it's not like once I reach 84,201 dollars exactly, bam, everything's 24%. No, it's just on a step scale, 10% and 12 and 22 and 24, depending on what you make. Okay, that's short term, anything less than a year. Long term, a little bit easier. So if you're, let's say you're single and you make, I don't know, 40,000, let's say you make 200,000. You make 200,000 dollars a year. You're between 39,000 and 430,000, you're going to pay 15% of total. Let's say it's a real bummer and you make a boatload of money, you're going to tax on 20%. So you're probably thinking to yourself right now, well, who cares? Because guess what? I'm going to be a millionaire. I'm going to make so much money in cryptocurrency, which you, hey, I'll be honest with you, you probably will make a lot of money. But here's the problem. Let's say you make 2 million dollars. Okay, you make 2 million, you're like, great, cash out, bam, done. What's 20% of 2 million? That's like 400,000 dollars. Do you think it's fair? That you have to pay 400,000 dollars on all your hard work that you did to invest? Well, that's what's going to happen unless you're proactive. So in this video about no crypto taxes, I talk about what I did, which is moving your cryptocurrency into an IRA. There's three types I talk about in this one. Or excuse me, traditional SEP and Roth IRA. And it's either you're going to pay taxes now or you're going to pay taxes later. Me personally, I'd rather pay the taxes that I get right now. Let's say that I make 20,000 a year and I get taxed 10%. Okay, I pay 2,000,000 taxes. I roll the rest in the Bitcoin, Ethereum, Chainlink, Cardano, US, everything that I really want to that I can do it on I trust. And then when they go to 10 million dollars, well, guess how much I have to pay in taxes? Zero, bupkis, nada, zero, zilch because I chose a Roth IRA. Now, the difference is, again, just check out this video or take a look in the description of every one of my videos. There's a link that looks just like this. You click on that link, it'll take you to I trust capital. It's got all the information that you want over there as well. If you have any questions, which I did myself, I just scheduled a call and I sat down with those guys for an hour and they answered all my questions, which is great to actually talk to a real life person. If you use the link in the description below, it's going to give you 30 days for free. So check that out. And again, I want to say I'm very happy with I trust capital. I'm glad they're a sponsor and I can't wait to work with them for the next 20 years. So back to the article, let's talk about the minutia. So here's what we got. And this is one of those things that I think about when I read it and I was like, why is this even an issue? If you would have been a little bit more proactive as opposed to reactive. And this is why I talk about make sure that you get things set up. If you fail the plan, you're planning to fail. So this was a quote from an individual on Twitter. They state, hey, Biden wants to raise the capital gains tax significantly. This screws over the majority of seniors who live on fixed income. That's very debatable, because I'm going to tell you right now, when I was working as a nurse in home health care, I saw low income, fixed income senior citizens, because that was our primarily our demographic. And I can tell you, capital gains tax above 400,000 didn't affect these people. But I get what they're saying as far as a fixed income. If you have a fixed income and it does reach back below 400,000. Sure, I understand. But again, it's all comes down to were you proactive or were you reactive of what's going on? Are you a Warren Buffett, Bill Gates type of person? We're like, you know what, I'll figure it out now as opposed to figure out later. Or are you something like, you know what, I'm just going to wait for the government to tax the hell out of me. And then I'll figure it out. Well, good luck. Anyhow, he states, it also impacts anyone taking profits from Bitcoin earning investment for that matter. We just talked about how you can avoid those things. According to Biden's tax plan, the long term capital gains taxes for individuals to make a million per year or above will increase from 21 to 39.6 percent, which we just looked at. It could be up to even more just depends on short term versus long term capital gains tax plus what state you live in. And it states media always try to claim that the income bracket proposal is concrete. The Biden tax plan is not 100 percent set in stone. This is what I'm talking about. Biden could say I want 40 percent, but then they come back and you know what, we're going 50. You know what, we're going to go 60 percent. And then where is everybody? So do I think that's going to happen? No, can it happen? Probably not. But hey, I mean, hey, anything's possible. So the thing I'm trying to get through is make sure that you are planning ahead and it's not like you're beholden to the government. You are smarter than that. You can do things. You can make plans and you can get yourself out of your own messes or out of these messes. Excuse me. So finishing up, there was a recent report that notes that Biden has repeatedly said that the increased taxes and capital gains hike will not affect certain income brackets. People under 400,000 to one million. But again, that could all change. So you never know. The report also implies that Biden's tax proposal has not yet been tailored to meet that objective. The fact of the matter is, Americans cannot take any politicians promises seriously and Biden can change the capital gains requirements on a whim. Yeah, who believes in politicians? You know, they're a bunch of liars. Is that like a secret to anybody? Of course, they're all liars. That's how they're politicians are supposed to be. Meanwhile, a team of Goldman Sachs analysts led by Arjun Menon wrote a note to investors saying that Biden's capital gains hike could also spark a massive stock sell-off. Goldman's investors note detailed that the last time the capital gains taxes were increased in 2013, it fueled a massive 100 billion stock sell-off. There's a couple of ways to look at that. If you've been on the channel for any length of time, you know that I do not care about dips. I do not care how deep it goes. I know exactly where it's going. Well, not exactly. I know where the trajectory is. I can't give you precise numbers. Obviously, nobody can. Nobody knows redamus. However, if we saw 100 billion sell-off in our market, I would be super happy because guess what? That means all the people that are weak hands anyhow are selling. And if they're selling, guess what I'm doing? I'm buying. So do you think the same people that know the exact same things that we do aren't going to do the same thing in the traditional stock market? They're like, yeah, go ahead and sell it all. We don't care. Guess what? We're going to buy it up because we know how to be proactive instead of reactive. We know how to get around these taxes. We have people in place and we're just waiting for you suckers to sell. Now, I could be wrong. Let me know what you think in the comments section. And then to the last piece that says here is that just remember that Trump doesn't like Bitcoin. The individual said Biden will probably raise taxes on capital gains. I don't know. And that's true. Donald Trump is not a big fan of cryptocurrencies in 2019. He states I'm not a fan of Bitcoin and crypto, which are not money and whose value is highly volatile and based on thin air. Unregulated crypto assets can facilitate unlawful behavior, including drug trade and other illegal activity. Well, it's a good thing that's not paid for by the US dollar. And again, the flip side of that, you could look at Biden, go, why is he going to raise taxes? Again, it doesn't matter. It doesn't matter either way. Who's who's put into place for cryptocurrency assets? Make sure that you're prepared and you know what to do. So again, I'm going to link this this video on the very end of this video and you can check that out. Also, don't forget about the link in the description. Thanks to I trust capital and that is it for today. So thanks for sticking with me through the end. Know a lot of information, but a lot of good stuff is happening these days. I just want to give a random shout out to people just for being members. I just want to say thanks to Sean Black, Ignacio Mela, David, Dr. Russ, Brian Pryor, Jesse Kirkland, Sebastian, Marguerite Bonnet, Dad Bean, Modern Samurai, who's always make it fun of my pink salmon shirt. It's a good shirt. I will tell you that. Grant Sharman, Jarkie Bajorgasen, I'm nailed it. And Noel Flippin' Vegas and Taydemont. So thanks so much for being members. Really appreciate it. If you like those videos, there's going to be too much going to pop up. One's going to be the one we just talked about as far as voting crypto taxes. And the other one, I'll let YouTube do their magic. But that's it. Thanks for sticking with me. I appreciate it. See you on the next one.