 Digital asset news. So today just want to talk about a little bit of things that are going on in the market which is the first thing being that Bitcoin money operation core scientific is now bankrupt officially and they filed chapter 11 yesterday So we'll take a look at what is going on there Also, we'll take a look at which we've been talking about on this channel for quite some time which is contagion SPF SBF and FTX and how it's affecting everything either directly and directly and this is another one that just happened in Australia Where a super app essentially has been failed as a merger falls through Mostly because of the things that are happening here in the States with FTX and SPF and lastly I'm going to talk to you why I'm not too worried about things right now And the question is can we trust to masterworks? This has been a question that's to come up quite a bit So I just hit a little snippets with Alan Sokolitski and we're gonna talk about that a little bit And then we'll do a little Q&A. So first things first before we got the core scientific News welcome. Thanks for stopping by. I appreciate it just so you know that You can still get some pretty cheap Satoshi's what are Satoshi's well Think of those is like the pennies the dollar one dollar is a dollar a hundred pennies and a dollar But of course with Satoshi's those are like the penny versions of the total Bitcoin You don't need to own entire Bitcoin these days So if when you're sitting around with your family and friends and talking about here in Christmas Just know that a dollar can get you roughly 5,910 Satoshi's and actually I'm gonna refresh that because the price changes all the time. Let's see what it is now Wow 6,028 so in the future I think that will actually drop but that's just what I think could happen So let's talk about this core scientific it goes bankrupt and I mean When the shoes start to fall they fall hard and it's very Difficult right now for people to get ahead in the crypto industry, especially Bitcoin money operations I don't know like people like I remember the bear on the bull market people don't think about Rob You're gonna get into Bitcoin money. It's an easy operation. I'm like, I don't know anything about that Why would I even start? It just seems very difficult to me especially with the overhead and it's proven to be pretty right Depending on which one so right now this is what we got so Of course scientific the Texas-based firms cash flow is still positive even though it is just File for bankruptcy and here's the this is from PR news wire Of course scientific announces comprehensive restructuring transaction. That's a nice way to say that we are volunteering for chapter 11 bankruptcy That was yesterday December 21st almost 450 eastern time p.m And here's what we have so of course scientific does plan to continue mining While repaying the company's major debt holders, I guess this way the only way you can do it. Who are the debt holders? Yeah, you know, you'll get to kick out this in a bit It also flag doubts about its ability to raise funds through financial or capital markets core scientific said it expects Existing cash reserves to be exhausted By the end of 2022 or sooner now correct me if I'm wrong The end of this year is coming in roughly Eight days nine days So that's a that's a pretty tight timeframe and this wasn't just like this was just yesterday that this this piece came out Of course scientific said in October that it would skip upcoming payments on several loans If you're a loan holder, that's not something you want to hear and this is the funny part We're not funny for me for us Celsius holders the firm played host to bankrupt crypto lender Celsius Bitcoin mining operation and Claims to be owed five point four million and unpaid fees. So Celsius Who is trying to do this reorganization and for Bitcoin mining operation? It can't even pay these guys who are themselves bankrupt? Are you kidding me? So I know there's a lot of things about reorganization with Celsius. I just don't buy it I don't buy the Bitcoin mining operation either Especially if you have larger entities who know exactly what they're doing or you know could have That are falling by the wayside Of course scientific in in October with 32 million in cash and just 62 Bitcoin worth about a million dollars Which is pretty good. I mean for just an individual but not for a large Bitcoin mining operation This is much better than September when it held 1,000 Bitcoin 17 million and 29 and a half million in cash, which means they were selling the whole time because they had Overhead they had things to pay and that's just how it goes Now if you think they're doing not too great Also rivals marathoner riot have shed 88 percent and 83 percent from their share prices or stock prices this year Don't be confused though because just because the share prices go down doesn't mean that they're going down it just means that Consumers retail investors have lost faith in them and they are pulling out because they do not believe what's going on in those Organizations for Bitcoin mining operations. I personally don't myself. I think it's a very difficult business to have I tip my hat to you if you're into the Bitcoin mining operation That'll lead me to my next point though What's going on With hash rates and the finances behind there's a great website called lick into Bitcoin and we can take a look at One of my favorite which is the Bitcoin hash rates and Bitcoin hash rates Really what this is is of course the more Bitcoin miners that are in operation hire the hash rate goes because the computational power to To mint a block of Bitcoin every 10 minutes takes an exorbitant amount of electricity which costs a lot of money and also mining operation or computational power to solve these These complex Indices So we take a look here as far as the hash rate You can see that it's been going up pretty high since 2021 This is actually the very beginning December 17 21 is the hash rate was roughly 168 I don't know if it's X of hashes tear ashes. I was confused make fun of me later in the comment section But you can just see that we had an all-time high not in 2021 When we hit the the price of Bitcoin all-time high But I believe that people have started to go up forever, which is what we always think in the bit in the bull market We also think in the bear market. It will go down forever. That's not true either So you can see here that we maxed out roughly around November 2022 and then we had a capitulation of some Bitcoin miners and then we we spiked up because they're like, hey people are turning it off. That means the difficulty level has gone down It's pretty cool because it happens every Say every couple weeks or 10 days always forget again make fun of me in the comment section But then of course, you know people turn on their their their Bitcoin miners to mine Bitcoin and guess what happens They're like, wow, this is super expensive to do and the price isn't going up Just saying flat and they turn them off again So there you go for that with the hash rate Also, we take a look back and take a look at the hash ribbons indicator Again, these are all free over at looking at Bitcoin comm Hashrate imbacate hash ribbons indicator use a simple daily moving average So identify when hash rates on a heavy downtrend All you got to know is when the 30-day moving average drops all the 60-day moving average It means miners are capitulating when it's one of the opposite That means that the good things are happening and you can see that in this Pinkish section. That's when you start to see miners capitulate and oh, yeah, and we had talked about this before This just happens the very 26th as we see is the 30-day moving average drops below the 60 And now here we are in a somewhat capitulation section So I don't expect the Bitcoin mining operation to pick up anytime soon unless we see a lot of Bitcoin miners just start to turn off and They're going to have to turn off at some point and that's actually good for other miners because that means that the difficulty rate drops they can keep chugging along and The bigger guy wins unfortunately, it's like that in almost every industry seems like the ones that plan ahead And the ones that can foresee the problems ahead and the ones that actually do things and are proactive rather than the Reactive are the one that wins the day and that's what's going to happen with these Bitcoin miners That's what's also going to happen For investors like you and me. I look at that the very next part. So much thing about that in the comment section Let's go on to some more bad news Contagion And look I don't want to talk about this bad, but it's just that's just how it is There's just a lot of bad news going on, but it's It's all how you look at things friends. That's what it comes down to So australian crypto super app canned along with the 2.2 billion dollar merger swiftx Had hoped to merge its crypto exchange with superhero. Here's what's going on australian investment platform superhero And crypto exchange swiftx have terminated a billion dollar merger That it would have created the country's first digital assets super app Now when I used to think of like super apps I started to think of like apps that can do everything all at once like Like china's line or whatever Wechat They have a super app where you can you can pay your bills. You can transfer money. You can order a taxi You can order food. It's like everything right in one app. That's a super app when I when I hear it So with this one, I'm like first. Well, what the heck is superhero? Well superhero You can invest in aussie australian and and us shares of companies And you can see like there's a little like tesla and apple and things like that And apparently you can also do this with crypto. You can start trading in minutes. This is pretty cool But in all honesty, I mean we have that here. It's called robin hood, but I guess over there. It's called superhero and If you sign up and you can do things like dollar cost average dollar per week you can control it Do all this great stuff, but you gotta you know kyc and aml stuff Which is great And what it was going to be was going to be swiftx, which is a crypto exchange Which I've worked with in the past good guys really good guys. They you know when you sign up They give you a dedicated person to help you out and answer all your questions. It's like way better To have that level of expertise on your side And you know, it's great and they were gonna buy this but just fell through here's why A tightening regulatory environment at home is being blamed for the de merger the cancelled deal comes amid A sensitive time for the crypto industry worldwide wrecked by fraud at ftx and the latest string in a And a bunch of scandalous blow-ups On top of that Because of the problems with ftx and the things that were being done unscrupulously by the geniuses over there Uh, this types of things happen and oh also You know, we see a bear market and to prepare for a prolonged crypto winter swiftx axed or Fired 90 employees at the beginning of the month. It's a lot of people Following up on initial cut of 74 staff in late august. So again When we talk about contagion, it's not just the things that we can see that where it's like, oh this person There's a loan out to the to these people and they didn't pay those things back and and oh, they you know These guys rug somebody directly It's also indirect and these are the things that are happening the things that we were trying to talk about which is why I've been so damn bearish so much because It's gonna get worse. I think before it gets much better and you have to understand that but that's okay. It's okay because These things don't last forever Bull markets don't last forever. We talked about that bear markets certainly don't last forever and usually bear markets Of course, there weren't when all the opportunities are made And I know it's you're you're tired of hearing that but it's just the truth And if you take a look at sunday's video I took a look at what would happen if you If you just invested in the bull run year Of 2021 how much you would make? I took a look at how much you would make if you dollar cost average into the year before in 2020 Which was the big one having and then 2019 and then the worst year was just 2018 I took a look at all those those numbers you can watch the video It's very clear that if you just invest in the bull run, you'll make you'll do fine You'll make a little bit but it's not like it's not like right now and So when people are talking about this these are the days these are the times So what I want to show you real quick is just what I've been talking about forever If you just go to this website dca-cc.com I linked in the description dca-cc.com I want you to notice this If we started on because everything's in four year cycles, right? Four year cycles where 2012 was a having 2013 was an all-time high 2014 was a major dip 2015. There was a reset 2016 having 2017 all-time high does an 18 dip 2019 reset doesn't 20 having 2021 all-time high doesn't 22 dip doesn't 23 reset Maybe you don't have that not for sure But also want you to know I want you to focus on this numbers right here January 1st 2019 Pick anything in crypto and it was awful in January 1st 2019 It was you were pretty getting you just got crushed in 2018 I mean it was just nothing but but bad news and and Government was gonna ban everything and and and of course you were losing and you were really looked at like as a complete moron if you were in crypto I must be honest But if you were to just put 10 bucks in a week into bitcoin Just bitcoin at an all-time high you would have invested $1,500 $1,500 And you would have gotten almost 10,000 back not too bad. I mean if you think about it Now let's take a look at this and I want you to pick any crypto out there take ethereum 10 bucks a week January 1st 2019 You would invest at $1,500 you had $24,000. Okay, let's go down the list. How about b&b coin? if you would invested $10 a week at the all-time high You would invest at $1,200 And you would have got back $42,000 Let's take a look at something else. How about xrp? Well, I shouldn't have gone up because there was a massive They just got sued by the sec. Well ripple not xrp, but you know what I mean You still be doing pretty good 10 bucks a week of xrp Starting in 2019 you invested $1,200 you got $6,800 back and that's in litigation with the sec Let's keep going What about dogecoin? If you had about 10 bucks a week at that's at its peak You would invest at $1,200 you would have got $203,000 back Let's go two more Cardano if you would invest at 10 bucks a week in cardano at its all-time high This cycle you'd invest at 1,300 bucks You'd have got $54,000 back And then lastly you can do this all day long if you want to polygon If you invest at 10 bucks a week all the way back in the day You would invest at 1,400 bucks total you got $153,094 so When I say like I'm telling this bad news to you It's because you have to understand the gravity of the situation that you're in in 2018. That was 19 It was the same things the same things going over and over again. I just thought to myself Well, I'll invest in some things now. There's some all coins that I invest into and uh It was like throwing sand of the ocean didn't really return too well, but that's the risk that we take But over time for me things work out. I can't tell you what to do. I'm not your dad I'm not sure financial advisor obviously, but this is the things that have worked in the past These are things are going on I don't know if we're gonna have a massive bull run in 2025 like everybody thinks it is could be a little later Could be a little bit sooner, but over time things work out now leave me to my last point Which is this one. Can we trust masterworks? There's a thing about diversification And here I don't put all my money into crypto. I think that's a recipe for disaster. You can do that I have fun But I like to diversify a little bit and I'm not talking about everything So what I did was I brought Alan Sokolicki. He is the cfa or the chief financial officer in here And we did a 17 minute roughly almost 20 minute interview I'm gonna play you four minutes from that interview because I want to get this out in the open The video will go live right after this video. You can watch the whole complete interview I just want to show you these four minutes About trust because at some point We're gonna have to drop the whole thing of going. Okay. Well, you know voyage yourself. See his bank block fi Ftx everything's a scam not everything is a scam Not everything's gonna be perfect. Not everything's gonna work out But i'm just telling you that this is what I have done and uh, we'll go from there So watch this this interview. It's four minutes. Then we'll do a little q&a. So let's uh jump into it Well So there's been a little bit of grumblings, especially with the The issue with trust especially in our markets Yeah, which spills over to other parts. So they're gonna go over just the basics First of all, what's masterworks and why diversification? Second of all, we go through proof of reserves We have some kind of proof of art mean that the things that you have bought as far as our pieces How do we know such things? Also 20 fee upon sale seems kind of cheap or kind of steep and then lastly How does the secondary markets work? So the first thing's first Alan just basically people have never heard of you or what's going on. What is masterworks? Yeah, so Masterworks is uh, it's basically the first company to make multi-million dollar works of art So paintings available to invest in on a fractional basis. So You can buy shares in a Banksy a Bosquiat a Warhol all the major artists You can come to our website. You sign up for an account And ultimately you can become a partial owner in in one of these multi-million dollar paintings Somewhat along the lines of how if you buy shares of stock on the stock market You're kind of a partial owner of a company to somewhat along those lines There are a lot of differences, but nevertheless the idea of being a partial owner is pretty much the same You know the art market. It's a nearly two trillion dollar asset class. So we're not talking about something small We're talking about something pretty gigantic You see it around us in museums everywhere And it's a it's a really great diversifier for a portfolio uncorrelated and we think a lot of investors should consider it Yes, it's something to consider and this is just to get everybody's everybody's head perfectly is that it's not about Getting into masterworks and putting your entire life savings. It is a small diversification This is mine right here. I got mostly in cash in real estate But masterworks, I've you know allocated a little bit to it. I think that's kind of how I would like to do things It might be different for everybody else But in this day and age, I mean look the s&p 500 today is December 22nd 2022 And we're looking at almost a 20 drop This year alone in s&p 500 So if you're investing in s&p 500 and just saying set it and forget it It's kind of hurting right now same thing with the nasdaq down 32 and let's not forget our market Let's do this. Let's get into the whole trust aspect. So the first thing is this We've got an issue here in crypto world, which is people say I've got bitcoin I got a three on my exchanges and all of a sudden poop. It's not there. That's called proof of reserves proof of liabilities How do we know alan for everything with mashworks that you guys have purchased the art? You haven't just like said, hey, we've got a banksy and here it is. How do we know? Yeah, so, you know this this actually in some ways takes us back to early days in masterworks history because When we were first trying to figure out What is the best way for us to even fractionalize the paintings in the first place meaning? How should we go about making them available on a fractional basis? the route that we took which is to Have every offering qualified by the sec and have all the documentation documentation on the sec that wasn't the only option We had actually considered using blockchain But what what we quickly realized is because a lot of investors were sort of learning about art for the first time The way that we wanted to make information available about all of our offerings Was a way that would be as public and as transparent as humanly possible to give investors a lot of confidence in what we were doing So that's a lot of the reason why we actually decided we are going to Securitize these paintings. We're going to make them public vehicles with the securities and exchange commission So you can literally go you can either go to our website where you'll see a link for every single painting There's a link that will take you directly to the sec's website And you will get an extraordinarily lengthy document. It is going to talk about Everything related to that particular painting. It's going to give you a history of the artist a history of the painting Um, who owned the painting before and who owned the painting before that person it it's literally going to lay out In exhaustive detail Anything and everything that you would want to know and again The reason why we wanted to do this through the securities and exchange commission is because We knew that because this is an investment that a lot of investors have not thought about before We need to do it in a way that is most likely to give investors the maximum amount of trust And that's why we decided to do it this way Gotcha. Okay. So that helps out a little bit with the transparency part. Let's talk about this one 20% fees now Yeah, 20% fees is pretty steep However, Alan has laid out what those 100% fees are and what I'm going to do. Let me remove this So for this one the 17 minute the total interview with Alan You can see what he talks about as far as that the third Or the secondary market for liquidity for to sell your shares and everything else in between There's a video that we traded that's again about 17 minutes long. It's the whole entire thing. I'm going to make that public now And you can check it out after we do the q&a. So if that's something that interests you again, this is not for you This is not for everyone. There are some people