 Welcome to digital asset news to get top stories and cryptocurrency digital assets and break them down to bite-sized pieces today. We've got some positive yet concerning reports. First up 65% of traders on PayPal ready to use Bitcoin to pay for goods and services. And this is both great news and frightening if it was actually true. Also Bitcoin gets 600,000 hits on the 7 trillion assets under management BlackRock website. But the real story is why they were actually tracking this. And last we'll do a quick follow-up on the Bitcoin miners getting shut off as far as the power supply in China and how that has affected the hash rate of the Bitcoin network. And we'll get in all that but first take a look at what's going on the market. So quickly it is a December 3rd 9 o'clock a.m. in the morning and everything's up so it's looking pretty good. Bitcoin's at 19.3 maybe it's 19.4 maybe 20k the end of the week. Who knows? Ethereum is above 600 and Ethereum 2.0 has been launched and I don't see or haven't heard of any hiccups or problems so that is a good thing. XRP is at 62 cents congratulations XRP army looks like it's going up again so maybe it'll hit a dollar at some point. Who knows? Tether's rocking around 19.5 billion for the market cap. Litecoin I tweeted this out today and I want to congratulate all the Litecoin holders. I sold this a long time ago and if you have held this for this much time I mean tip of the hat to you and not even the founder could actually hold it that long. Charlie sold this a long time ago and there was a reason for that but for again all you Litecoin holders congratulations. Chain links up almost at $14 and I keep seeing this like Zeus capital nonsense on Twitter and they're always talking about a fraud and a scam but I gotta tell you every time I see that ad from Zeus I'm like oh I mean the chain link's gonna pump and here we are 1.7 Bitcoin Cash 0.2 Polkadot. Wow Polkadot it's almost gonna hit six dollars pretty great. Cardano 5% I like that update on the Cardano staking pool we're still going through the process let me tell you it is very difficult it's not easy whatsoever there's a lot of things that have to be put in place a lot of monitoring a lot of different trends just everything has to be done has to be done in a very certain specific way and set up the right way the first time. I am not a person that just leaves things up to chance and just says oh yeah it's good enough it has to be a certain way and I'll let everybody know when it's completed. Finance coin running up the top 10 spots so looking pretty good nothing really fantastic moving out there there was a pretty big pump I think for VeChain it's almost gonna hit up to two cents that's pretty great and then as always I want to take a look at how everything is comparing to to Bitcoin of course if you're comparing them to Bitcoin you want to know if your investment if if you would have been just better to invest in Bitcoin well Ethereum is up 1% that's pretty good 2.7 Polkadot 2.8 for Cardano hey not too bad and 6.9 for NEM NEM has just been pumping you know radically so good for that 30% for VeChain and so on and so forth. The more you get out of the top 100 the more you see more of these gains like Elron what else is up there six and a half for Band 9.3 for Curve Dow token and off you go the real question is finding those those those gems and that's not my game all right let's jump into today's top stories so first up this is good and bad and I'll explain a bit so 65% of traders on PayPal are ready to use Bitcoin for to pay for goodness services and so what's happening here is that there was a survey put out by Mizzou with securities and it was a very small sample 380 PayPal users but it gives you an overall you know feel of what is going on with the rest of their 346 million active users I guess I don't that's just how you know surveys work but whatever 17% of the respondents said they have already traded Bitcoin via their PayPal accounts since the firm started offering crypto in October and as a reminder it was supposed to be only a small rollout and then Q1 2021 was going to be the big one but there was so much demand they just said just give it all to them because it's going to be huge of these the majority are the ones who showed readiness to utilize Bitcoin for purchases the finding is significant to the extent that it bolsters Bitcoin's credentials as a viable means of payment something that Bitcoin opponents have routinely used to discredit the digital asset so there's a lot to break down here first up when they talk about these people who are ready to use this for payments that's a bad idea because when you start to use Bitcoin for payments and that's great I mean it keeps the whole narrative of a cryptocurrency as far as Bitcoin but it is bad for tax purposes and this is the same thing that people were telling me when I did a video which talked about it was an open letter to PayPal users and a couple of people said hey you didn't mention the fact that every transaction that you do as far as like Bitcoin to pay for goods and services is a taxable event so you have to keep a record of all that and because of that fact I was actually able to go back and put that into the video that I have hosted over at DanTeachersCrypto.com and I talk about what is a taxable event and non-taxable event if you want to sign up for Bitcoin for DanTeachersCrypto.com there's a link in the description it's 100% free website simplifies everything very simple super easy and gives you some pretty good advice I think so when we talk about these things that are actually taxable this is not something that is really well known and right now since it's not being offered until Q1 of 2021 PayPal really hasn't talked about it now I assume that they are going to have some kind of app or some type of monitoring system so people don't get you know screwed and you know later on when they're when they're doing their taxes because whatever you do through PayPal I know for 100% fact that it's going to go right to the government as far as a 1099 so they're going to know all your transactions that you're doing and you better pay those taxes because if not there's going to be a nice little letter coming to you saying you OS X Y and Z so next I want to talk about this where it says here something that Bitcoin opponents have routinely used to discredit the digital asset that it's not a good means of payment they're right it's not a good means of payment and we're talking about taxes that's one thing and you can get around not get around but you can monitor that and you know have apps and they can you know check you and you know record all that stuff but the big thing is that and this is a big thing and why it's actually not even a big thing later on I'll tell you why that if everybody on PayPal starts to use Bitcoin Bitcoin Cash Ethereum or Litecoin for transactions all 346 million users of them we'd have a huge problem we'd have a huge problem and things would go off the rails I'm gonna tell you why this is from why charts these are the Bitcoin average transactions fees or BATF and if you can see what happened here this is 2017 everything was cool until it's not and you're gonna get like 27 cents in 2016 18 cents back in you know wow where we go 15 73 cents but if you take a look at when the craziness that happened which was December 23rd 2017 it was 55 bucks to send a transaction with Bitcoin so you're trying to send $25 that's there's no point in that and this is all historical data you can all look it up and this is what it was I remember and not only was it super expensive it was super slow because there's so many transactions so Bitcoin can't do that now people talk about the second layer solutions oh they got lighting now working well guess what still not really working that hot and that's just how it is so right now and this is just averages okay just averages over time you're looking at December 2nd around it says 730 but I don't think it's that high I think it just depends on how congested the network is and everything else so it could be lower but I mean if you're just over here and that was in a what was still a parabolic bull run it was a little crazy but what do you think's gonna happen when you have 346 million people and like 65% of those are like hey I want to use it for transactions you're gonna see this go all the way up here and you're gonna see people say what the heck I can't it takes me a couple days to send Bitcoin I thought this was supposed to be super fast well now you know but here's why it doesn't matter and the reason is because of what was stated in this article and been stated in numerous articles and that is that PayPal plans to use fiat as an intermediary when users make payments to merchants in Bitcoin so when you are purchasing Bitcoin you're not purchasing Bitcoin you're purchasing paper Bitcoin and they are scooping that up through their partner at Paxos and their exchange so like me as a vendor I'm not going to get Bitcoin when people transact in Bitcoin I'm going to get I'm going to get dollars I'm going to get that's it fiat so when we talk about like an actual payment system they're not going to be using Bitcoin as a payment system not going to use Bitcoin cash or Ethereum or Litecoin it's just going to be on paper essentially and what they're going to give me is paper that's it so they're going to buy a ton of Bitcoin and they they're buying a ton we're getting that in a second but just to see this as an actual currency and it's actually you know motive of transactions it's not going to do that and then what I fear is that people are going to come back and be like oh well this is great because now Bitcoin can be used as a transaction and then they're going to go and try to do that on a exchange or they're an analyzer if they get that far and they be like why why why is it so slow what's going on I understand this it's so much better at PayPal they understand it's not going through PayPal like that it's going just as fiat so I think people will be uninformed and they'll be blissfully happy to be ignorant about what is what is going on and that's one of the reasons why I created Dan Teaser's crypto to help people understand why it's important to custody your own crypto and digital assets and that's why I made this it is the first video in the first module and again there's going to be a lot of people who are like I don't care I don't want to do that and that's fine for those people you do whatever you want to it's a free world and and I salute you at least you're here I'm happy for you but for the ones that want to know more and want to understand that why decentralization is a far superior option that's why I created the website so go ahead and check that out at the very end and then moving down to finish up it states PayPal bought or is buying up to 70% of all the newly minted Bitcoin since the payments giant started offering crypto in October so between them and and the cash app or square they're buying they're buying more than 100% of all the newly issued virgin bitcoin and that's on top of everything else that just the retail person the institutions that are actually trying to get into it and of course with that I mean grayscale so there's a big competition I think there's going to be a big supply crunch coming up soon I'm surprised the the price hasn't broke past 20k already but it is what it is so that is is that portion now to move on I need to just to clarify some things and verify something so I invited Shihan Shanshikara he is a crypto CPA and he's going to let us in and just to verify something you're talking about also I need him to answer a couple of questions that I've been getting a lot of which one of those is can I just take out a loan on my cryptocurrency to minimize or totally avoid taxes so let's get Shihan in here in the office and he'll answer all those questions all right everybody so so the question always is and this is this all comes on the PayPal article that we just talked about for transactions are we going to be taxed and you know I told you my opinion but it's best to get a expert and that is why I invited Shihan Shanshikara to come on Shihan thanks for coming on to answer this question before we start just give like a like a for people who don't know you who don't know you tell us a little about yourself and then we'll get to that question yeah sure so I'm a CPA you can follow me on Twitter at their crypto CPA I mean coming from public accounting background I'm with a company called Coin Tracker which help you know calculate crypto taxes but yeah I mean if you have any question reach out to me I get a lot of questions and happy to answer and very active on Twitter perfect I'll I'll link Shihan's Twitter handle and also the company works for and then our works with and we'll go from there so Shihan that is the question right now so as people go into PayPal and they're using Bitcoin Bitcoin cash at their in the Litecoin and they're starting to do transactions on the merchants like myself what happens as far as like the trends are as far as a taxable event yeah it's good question so every time you spend cryptocurrency because it's really that's a property as opposed to a currency at least in the you know in the eyes of the IRS that triggers a taxable event so which is kind of bad because it's kind of it's it's bad meaning like you know every time you spend something there's a there's a taxable event and you don't want that but that yeah that's what we had to deal with unfortunately until the law change one day okay so it sounds to me just to make sure so every time these guys send some spend something it's going to be a somewhat of a taxable event it's it's okay if you're like like we like I have thought about buying Bitcoin really fast and then you know spending it really fast which I think would be crazy or as opposed to like something like me who's invested like three four years and I take that Bitcoin from a long time ago and then start to transact yeah correct I mean the symptom I just don't understand like why would anybody spend Bitcoin to buy like you know day-to-day stuff I think the PayPal story like it's good for creating vanity you know in this space but if you're in the right mind like you wouldn't be spending you know Bitcoin to buy stuff so I would say if you really need to use a cryptocurrency like you know transact you know use a stable currency so you're not losing out or there's no tax implications makes sense and I guess I will retract why I said because my Bitcoin that I purchased years ago I can't put down the PayPal network because you can't move cryptocurrency between PayPal it's all paper Bitcoin paper B cash and all that stuff all right so all right thanks again so this that answers that here's the big question and I think this is the most confusing thing I get this a lot and the question is well I don't want to deal with IRAs I don't want to deal with anything else what I'm going to do is when the bull run comes I'm going to take out a loan and with that loan I'm going to pay off everything and that's why I won't have to pay taxes because you don't have to pay taxes on loans however you have to pay back the loans at some point so she hand how would that work out we don't want to avoid taxes or you know like be a tax dodger because no one wants to be that guy or that gal but how can we minimize taxes and is this even a possible type of thing we could potentially do yeah yeah there's no ECS and no answer I guess for me there are two types of loans you know you have you appreciated you know Bitcoin or whatever cryptocurrency you just give it to some party and then you get USD as a loan proceed so that type of you know loan structure is pretty clear but what complicates is that you know you put your Bitcoin with another party and as loan proceeds you're getting another type of cryptocurrency then the question is when you spend that second cryptocurrency which you received as proceeds what's the cost basis for that do we assign a zero cost basis or do we assign a cost basis equivalent to the fair market value of that second cryptocurrency you received but it doesn't make any sense because you didn't actually pay for it again I might be a little confusing but think about the situation from the IRS point of view like why would the IRS allow you to put your appreciated Bitcoin let's say let's take an example you got into Bitcoin when it was like 10 bucks and now you're sitting on like let's say million bucks of Bitcoin so you're essentially putting then million dollars for the Bitcoin to some third party and you were creating liquidity without triggering a taxable event right now think about how the IRS would see it so I've actually asked about this question from the IRS you know they're still catching up they're still trying to figure out the laws around you know airdrops and etc they haven't even thought about the if I space it but that's very yesterday so it is doable I think the you know the practical approach is to kind of you know because there's lack of guidance you know just really has a non-taxable event but there's a huge exposure for you when it comes to taxes especially if you're sitting on large amount of underage gains and you keep taking loans and keep accessing liquidity without ever paying taxes so it won't work in the in the eyes of the IRS in the long run in the long run I think you can keep taking loans and loans and loans but that would be detrimental to yourself as time goes on because at some point you have to pay all this stuff back with the percentage of whatever it is I think that would be the big issue for me and then some people have said in the comments like well what I'll just do is I'll just like I said like I will take out a loan for Bitcoin or Ethereum whatever else it is and then I'll just pay it back in USDT or Tether or whatever else but again taxable events are when you cash out your cryptocurrency as I assume as I as I see it also a taxable event is when you go from cryptocurrency to cryptocurrency Bitcoin to Ethereum Ethereum to USDT or Tether or whatever else and then when you're paying for goods and services because the next thing I get is well I'm not going to even pay taxes because in the future everything will just be I will just pay Bitcoin for that car or I will pay Bitcoin for someone to mow my lawn which sounds ridiculous right now because of what we're just going to go over a little bit but yeah I just don't see that to be an option yet. Yeah I mean unfortunately again every time you spend your Bitcoin even though like it doesn't make sense unless like you know you're in the weeds for taxes if you got the Bitcoin for 1000 bucks and if you're getting a car like you know five years later when that Bitcoin is 20,000, IRS is going to tax you on the 19,000 dollars of difference because in there is you created 19,000 dollars worth of wealth and IRS being a you know revenue collection agency they want to tax it unfortunately so that's the law today. There's always a way around it and if you want to find not a way around it if you want to find the best options I will say contact Sheehan I'll put his information in the description. Sheehan thanks so much for stopping by I appreciate you answering this question and taking the time. Thank you. All right so thanks Sheehan let's break into our second piece here I'm going to go over these real quick Bitcoin gets 600,000 hits on BlackRock website so if you don't know BlackRock they got like seven or eight trillion assets that are management they're pretty big and Lawrence Fink is a CEO he was on the he was with Mark Carney and he states that on his BlackRock website Bitcoin has been the most popular subject so far so just to reiterate they had 600,000 hits and I don't know the exact time frame but whatever the time frame is on their website they're also tracking Chinese pandemic and monetary policy and those were the second and third most hits that they get for their website and it's a paltry three thousand three thousand so you got number one six hundred thousand number two is Chinese pandemic and a very close third is monetary policy so there's a reason why they're tracking this and it's really pretty much put up just like what uh Raoul Pal says he goes look when the CEO BlackRock knows the exact number of website hits about Rick Ryder's interview where he mentioned Bitcoin it shows it wasn't a mistake but it's a test they're monitoring this at the highest level to get involved he knows and sees there's huge demand and everybody knows that it's just a it's just a matter of time before this really just blows up and like I've always said 2021 is the year I think it's going to be enormous and we'll see where it all goes let me know what your thoughts in the comment section let's move on then last up I just want to do just to follow up to this story this was from November 30th and it was a Bitcoin miners in Chinese Yunnan province were cut off from the electricity supply so just to reiterate what they did was the CCP Communist Party of China they went to the electrical company and said hey if anybody is doing any kind of Bitcoin mining shut them off right now and they did that so that was what happened this was in China's fourth largest Bitcoin mining hub uh after some other cities I can't even pronounce so what we got here is another instance of well what happens if China the government cracks down on the mining pools remember they're mining pools not individual miners mining pools now here's another thing there are individual miners that do live in China but you have to understand these individual miners also individual miners live outside they live in South Carolina they live in Texas they live in the United Kingdom they live in Canada they live all over the world so I don't know how many individual miners are actually living in China but I know that the China the mining pools which pool all the individual miners from all over the world 65 percent of them are actually in China so the question is what will happen when you shut down individual miners in this region well so the big thing would be the hash rates so did the hash rate fall if we take a look over here at blockchain.com this is these are the raw values for 30 days so this happened on November 30th this is November 29th this is November 30th and then we take a little bit of a retracement here on December 1st I don't have December 2nd or 3rd data but as you can see it looks pretty much all over the place and there wasn't like a massive huge drop off to where everything just went to the floor it's because this is actually good for miners because when miners don't have so much competition the difficulty rate adjusts so it's not as difficult to mine bitcoin and if that happens then I think maybe more bitcoin miners will actually turn on their rigs and go hey it's not so difficult now I can actually get some bitcoin in there and this also gives an opportunity for other mining pools who are in wherever to actually be more competitive for bitcoin so it's actually good to shut down it's like if you have like four stores and they all sell books and then you know one of the big ones like just totally shuts down like we can't do anything like great the three are like fantastic less competition for us and it works out great so that's what we have so far right now but there's an article and I'm going to get this tomorrow because there's really going over but it talks about there's a US Intel official talks about we cannot allow China to dominate digital currencies and I don't see the fear that China has with bitcoin only that's the that's the case they want bitcoin gone they don't want to destroy this want to go on thinking of digital yuan the big thing is CBDCs and a digital yuan to actually take precedent because all the other countries us included is dragging its feet I'll go over that tomorrow also if you're looking for the next cryptocurrency it's going to outperform bitcoin I recommend trade the chain there's all the different data points that you possibly need what they really look at is they have a direct API into twitter and they parse through millions of tweets and data points and all different websites and exchanges to look for one of the nearest or the next murders and acquisitions when is the next listing going to happen any kind of negative news like any kind of hacks and this is a great website but what makes it even better is the alerts that you get on your phone via the slack app and they come to you and tell you exactly that same information at the drop of a hat so I definitely recommend to check that out there's a link in the description there's a 14 day no questions ask refund if you don't like it just to check it out because there's a lot of gains we made out there and I think this one could be great all right so that's it for today so thanks for sticking with me through the whole video I really appreciate it if you like these types of videos and be two months gonna pop up on your left and right I'll let YouTube do their magic on that one and that is all so I will see you on the next one