 Everybody welcome to digital asset news or Dan for shorts today is Friday. You know what that means It means DCA live. So as always my faithful compatriots Ben from any of the cryptiverse and James from vest answers Joining me to answer some of the some of the tough questions the tougher questions that we potentially have and also before we get into it Of course, if you haven't subscribed to Ben or James channel, you can find there is a link in description for both of them Also, check out James's patreon group and Ben's got a banger of a website in the cryptiverse comm where I steal as much Information as I possibly can and go from there. So gentlemen, thanks for coming by Happy Friday Happy Friday get off my lawn kids. All right. So so here's so here's the questions The markets and projects project continue to fall We see it going. It's just just happens and here we are So what errors did you make along the way and what did it teach you? I think it's good for a retrospective especially since I think a lot of people miss the FTX thing What could we have done differently? You know, how how can we move forward? And of course from the lessons learned has it changed the directory of your investing how you do things How you do research and also for you know Your specific channel in general and then this is the one we're gonna probably spend a lot of time on which is knowing what we know now What's the path forward for our crypto market and that and we're gonna go over a litany of different topics regulation Consolidation mean the projects that are actually here and going to collapse or eventually collapse and actually as they get absorbed into whole Unfortunately the Binance ecosystem Retail versus institutional investors and then of course public perception. That's a very loaded question and we'll take that bit by bit Lastly, where's SBF in one year's time quick question? And we don't have to spend a lot of time in that but then the last one I want to spend a lot more time on which is the Q&A I pulled a lot of people's questions From Twitter, but of course we'll take them as they come in live. So Gentlemen gentlemen, let's start with the first one make this make this simple The markets they suck they collapsed on us really because of a couple of swan events, right? So what areas you make along the way and what it teach you Ben? You're just to my right. So I'm gonna start with you my man Well, I mean by the way, excuse my voice. I do have a cold It's a side effect of having three young kids. Yeah, you gotta oh, yeah, yeah the Petri dish that is the kids Gotcha Yeah, so I'll do my best to talk through this but um Look, I first of all, I will say as an investor You're not gonna get everything right and you know, I had a guest on my channel the other day Mark You know, and one of the things he said was if you if you're in the business of getting everything right, you know Investing is not the right business for you There's something like that. Yeah, so I think in general the expectation is that we will get things wrong You know, I've over the years. I've certainly got a number of things wrong Most recently I would suppose that some of the things that Have not really gone the way that I thought are things like I you know I'm surprised that certain coins are holding up as well as they are You know, the Ethereum Bitcoin valuation remains a lot higher than I thought it would be at this point But you know in the grand scheme of things I think we have good years and we have bad years and and for the most part I would say 2022 I've I feel like I've done a better job this year than than maybe other years But it took me so so like if we were to just sort of go through the cycle, right and and for me to walk through Kind of where I went astray so back in 2019 and and 2020 I was quite I was quite bullish on on the crypto market actually Sure, and yeah, and I mean in hindsight that was the the I think that was the the way to go, right? One of the first mistakes I made One of the first mistakes I made back when the bull market started was I bought XRP The day before the SEC announced the Maybe it was like the week before I don't remember Man, I got me right and I mean I got me wrecked right off the bat, right? In in 2021 You know, I I felt like I had a pretty good handle on things back in like the March and April time frame I thought we would go down in the summer and then I thought we would go back up after you know We had a brief bear market and we did but I Assumed that it would it would we would we would have a few more months, right? I thought the bull market would last a little longer past November And so I basically missed the November peak Which I think a lot of people did and even the bears even the bears missed it because I think a lot of the bears Were not calling for for all-time highs regardless, right? I mean after the first peak a lot of people were pretty bearish and and saying, you know, it was it was over And we did go put it in you all-time high but You know at the end of the day, I mean it it it only was a marginally higher price than what we had previously seen and so I mean Essentially for for 2021 like all of the profits that I took for the most part were in in like March and April, right? I Didn't really hit the second peak at all and I finally cut my I finally cut my positions down considerably in in January and February because it took me that long, you know to To accept right that it was over, right? Like it took me until you know, January February to be like, you know what like it's over, right? The bull market's over we're going into the bear market 2020 is gonna suck cash is king You know, if you want to buy altcoins, you shouldn't you should go take a cold shower and reconsider So I mean like once you know once I I was able to come to terms with that that that was where we were headed I felt like I was able to to sort of adapt my strategy and you know I cut out a lot of altcoins back in, you know, January February and March We had that, you know that that first bear market rally up to 48k Bitcoin and you know some of the altcoins went with it I was able to I was able to offload, you know Most of most of the altcoins that I had that that I hadn't already sold in you know in March and April of previous year Well, I mean, you know looking back I think one thing that You know will has sort of it how it how it's how it stood with me is that, you know It's always hard to predict exactly when something is going to occur I might you might have a good expectation on it occurring at some point, right? Like we might say well You know, I think this is going to happen Or I think we're gonna go to the high-risk bands and all that stuff But it's always hard to go exactly when it's going to happen, right? So I would say those I mean those are probably the biggest things like the biggest takeaways and then you know I also in in mid-2022. I was trying to get cute and And in time one of these bear market rallies, right? Yeah, so I put out a video in June. You're like, alright, I think we're gonna have a I Think we're gonna have a rally soon and it took another month, right? It took another month to see that So I mean at the end of the day at the end of the day, you know, I just recognize I'm not gonna get everything, right? But I'm for the most part. I mean, I think you know cash has remained king this year and And hopefully I mean hopefully 2023 will be a better year than 2022 Yeah, in terms of the in terms of the market, you know, I yeah, I totally I totally agree I'm with you on this one It's just the reason why I wanted to talk about about our errors is because I get a lot of people who are in the Chatter and Twitter, you know, like man, I really screwed up. I didn't I didn't take any profits Or I put too much on this exchange or I did this and I'm so stupid. I can't leave. I should have done more my research I should have really, you know, that done been been better and I'm like, you know You understand that no one's perfect, right? And that even, you know, we make mistakes and people above us make mistakes and even mr. Wonderful and and and the mooch scare moochie and people and hire up They make mistakes left and right because it's just like Ben talked about if like like what Mark Yusko said if you want to Be perfect investing is not the category for you because you are not gonna get perfect And the best that you can hold for is that you're right more than 50% of time I there's a stout which talks about different traders and options and that the people that do well the ones that get it Right around 58% as opposed to less than 50 So it's one of those things like if you feel bad about the things or the choices that you made It's not the end of the world You just got to learn from it you pick yourself up and you keep going forward just like the military You show up with the right uniform they raise your hand and go okay I'm here to I'm here to do my job and just keep going forward. That's the big thing So I'll step off my stope box now and then James. What do you got my man? Yeah, that was a great one from Mark Yusko and it's hard and nobody has a crystal bowl But I think first is you know, we we always spoke about self custody and I've got 10 or 15 videos and wallets and stuff like that and the importance of those and having a good wallet But I always felt it was okay to leave 10 to 20% on an exchange for trading purposes Is this kind of you know how you play now? That's that's been shattered like now. I am absolutely terrified of leaving anything on any of these places So the big lessons I think what we've learned in 2022 is nothing is too big to fail Don't trust governments to protect you. I mean the calamity of FTX FTX us SEC private meetings doing SPF and Gary Gensler is just Sickening and I don't know why people aren't more upset about that The other big learning is I think everything is completely related Interconnected everything's a house of cards ripple effect contagion. We've been hit with two black swans But technically they're all a function of the same thing, you know one big liquidation event Ascading leverage wiping everything out. It's just that's that's the big thing. So That leads me to the next point. I think for us all to know is Transparency is key Only trust things that are highly transparent whether they be tokens or protocols or exchanges or you know proof reserves Whatever that's gonna be absolutely critical as we go forward the other one that was kind of stunning and I did not take You know Twitter seriously You know early 2022 that was a mistake Twitter has emerged. I think as the strongest source of truth this season I'd like to hear your guys feedback on that, but it's all the truth all the You know exposure is coming through Twitter people like Dylan the Claire exposing star for us Dome eggs as well Some of the insider some people looking at on-chain transactions. That is something very very powerful and people should take Twitter very seriously Next I think it's you know defy all the way although it's still in its infancy. It is not mature It's not liquid enough but defy over C-fi. I think if anything we've learned in summary is kind of Self-custody and decentralization That's what's required for self sovereignty. Do not trust anybody anywhere the other things like when the smoke this fire I've always said that for years and years, but you know the type of Forest fires that are behind some of this smoke are just unbelievable again going back to that first point again Nothing's too big to fail and I think final note 2023 will be better Despite the recession because it cannot be worse in my opinion. So that's kind of my quick and dirty summary Gotcha, so I mean that was great I mean we I think on that one you talked about, you know What it what it taught you and I think the market in general But stepping back to the question like any anything that you think yourself like man, I kind of messed that up I wish I wouldn't have done it that thing or that that trade or or or or or that Philosophy or or the way it is. I mean is there anything that that's happened like in the last six months or so Well, you kind of think yourself man, I wish I could have I I shouldn't have done that Well, it's it's it's kind of funny because I reflect on this a lot and you know I never touched crypto till 2017 I dabbled with a little bit of Bitcoin time It was not perfect and then slowly accumulated because I was always obsessed with the hardness And then I became a DJ in in March 2020 and bought some ethereum for the first time ever I was like a Bitcoin maxi until 2020 I did I thought everything else was kind of weird and and then I then I got the bug and then I did a lot of fundamental analysis Try identify any threat to Twitter and I came up with the solution and of course here We are so it shows you when when I saw Shiba Inu having a higher market cap than Solana is like okay fundamental analysis doesn't work in crypto It doesn't work at all. So I don't know and then again it goes back to the first point I mentioned before is how the ripple effect of everything being interrelated right is a problem and You know how not having that transparency of You know how dirty people are behind the scenes and the games are playing. Oh, yeah Kind of terrifying so that is kind of a big part But you manage risk by having proper allocations and never having you know I always talk about the risk curve the further you go at the risk curve the smaller your position and That's where I am. So, you know Gosh, I don't know. It's weird. It's been it's been fun I still really do believe in crypto and I believe layer ones will be a thing and I believe people need hard money like Bitcoin So I'm not I'm shaking not stirred. I don't know if there's even an expression But I still remain very bullish and I know the stuff can move fast. We are in you know, we thought June 16th was the dark of the darkness, right? And it's the darker yet again and people are definitely shaking right now I see a lot of people leaving the space a lot of people, you know, they're moving back to gold They're thinking about bonds they're just really badly burnt and That's that's kind of sad the damage that a few bad people have done which is me It is what it is, you know, so all right makes sense forever there and then we'll get to the next one I'll just talk about Let's talk about my errors So I hope everybody's got a little bit of time as we as we go with this this a massive list of my screw ups But I will say this I will start with with June You know what people, you know in June say that's a bottom. It's a bottom It's it that's it's it and I was like it's not the bottom But I thought it was going to be because of macro events because of the Fed because of war Because of the supply chain issues and everything else. I didn't expect FTX to blow up So even though I you know, I got one part of that right. It wasn't the reason for it, you know for for what happened And that's just that part Going back before that, do you know, of course Gentlemen, we have uh, you can't really see. Oh, he can't see right. Okay. So I have these rules You know, I have these rules here I have these rules because I screwed up before and what I am and I made these rules because of when I was talking about Celsius because I thought it was awesome that it wasn't awesome and they were doing it was it was great until it wasn't And then once I figured it out on that day I put out a video nine hours later. They shut down withdrawals Next day after that, I made these rules. It's all gone That which means You cannot invest more you can afford to lose Everything's a scam until proven otherwise. That's the second 100 scams There's no exchanges don't leave anything on exchanges and I messed that up too because when I used to talk about it I used to think them to myself like Okay, these bitcoin max is the thing they talk about they don't know Because we can just put this into these exchanges because guess what they are in the united states They're somewhat regulated a little bit more safer and guess what they weren't So they were right and of course now I think to myself Everybody should be learning self-custing. So I say no exchanges and this was back in this was back in june And of course don't take leverage 1500 x is craziness and take profits along the way and that's one of the things that I try to try to do myself But I still fail on that one and that was Celsius and of course with the voyager I talked about that thankfully I figured it out a little bit earlier when I figured out that hey They loaned three three three hours capital six hundred forty million dollars and it was uncollateralized be kidding me So of course I said stop take all your crypto off of there two weeks later. It was shut down thankfully along the way Here we are and then I think the biggest The biggest thing though that I that has been taught to me recently because of all these these mess ups that I've done And I think to myself, you know what? The the principles of decentralization must live and we must use them And there's a reason why we have these self-custs. There's a reason why we try to get rid of the middleman with the reason why we do these things because crypto is the future and not a a slimy centralized Wall Street type of thing that's been going on the background but true decentralization. So moving forward we'll get to this later I'll try to get into more of those products that are truly decentralized and go from there All right, I'll get up my soapbox yet again second one And james since we just started with you From the lessons learned has this changed the the directory of your investing or the directory the direction I should say because I know you're more of a trader Than me or ben and you've got a heavy experience in these areas So has this changed anything for you as far as like how you invest and potentially your channel itself? Yeah, well, I've been doing kind of the same thing for 30 years kind of like do a lot of research Get in early get in hard Have a few positions high conviction option trade hedge Take profits by selling kind of out of the money coals And then with those profits by real estate. That's been my playbook for 30 years and It's worked but since again since 2017 Crypto, it's it's been a roller coaster You know From from a perspective going back to some of my rules going to get an early get in as hard as you can Like 94 of my crypto is still in the green like if you look at my positions and they're like right now I only hold three things Bitcoin and the ethereum are still positive Solana is 50% underwater But it's still I still very much believe in the space I believe in where this is going. I believe the world needs that hard asset In terms of my would I change what I do? No, like for example I'm always trying to find ways to trade back and You know, I wasn't able to recoup My be 50% underwater on Solana right now and I was layering in during the dip Um It's very weird because I think it was nearly two weeks ago No, it's 13 days ago exactly I made it back into the black on Solana for the first time and then the next day everything went to crap but Just before that about 15 days ago. I got into a position on meta which recouped half of my losses Uh and very shorter again using dangerous options position, but I was kind of pissed off So I think I'm going to spend more time kind of like I Bought as much crypto as I kind of wanted and focused on accumulating kind of solid equities After the summer and and that's kind of what I'll do. I just Focus much harder on Moving around to where the action is that so crypto is out of favor right now Equities are beaten down everything is kind of beaten down But there are things that are hitting rock bottom and bouncing off of that And we saw that early in the summer with my middle of the summer with netflix Yeah, so recently with meta so there's still options to be had but what I'm gonna stress for people is You know Don't have all your eggs in the crypto basket and move to things right, you know When they start to attract money because the money rotates around I did a video yesterday and looked at the kind of the nifty 50 versus the bottom 450 the smb 500 And again, there's even a rotation between those groups But the majority of money actually goes to the black holes the top 10 of the top 50 in the smb 500 and that'll happen again. It's just right now It's a bit of a risk off but that risk on is coming back soon. I believe so the lesson I think is um don't have Don't have everything In bitcoin. I remember a quote actually you mentioned the guy called kevin allyria before but I remember he said I believe in crypto. It's it's going to be the 12th or 11th segment of the smb 500 So I bought the top 50. It's like Every rule of investing when I heard that, you know a year ago. I was like face palm No, you don't do that So again an answer to your question short answer is no, it's just been a brutal year. We mentioned the first First worst first half of the stock market in 50 years You just take it as we've been hit with too many black swans and storms and war and macro and fed and uh next year should be better Next year hopefully should be better which would lead me to Ben Same thing here all lessons learned How has it changed the the investing or or what do you learn? I I guess from it and has it changed your channel You know, I think the Hardest parts are are in a bull market. It's easy to to get on the altcoin bandwagon, you know, and I I spoke a lot about altcoins um Mainly I I spoke about chain link and and cardano and and ethereum Etc, right, but I only had a few that I I spoke about um I think the hardest part is When you when you shift to being bearish Like the the community that you might have built up around you because they Identify as being like a promoter of that project. Yeah, they can feel somewhat betrayed Um, and I I've experienced this myself in 2022 because you know, I was bullish on on the ethereum bitcoin valuation Up until about halfway through this year and and when you when you switch to being bearish on something Um, you know, a lot of the people that were your friends beforehand They're no longer your friends and and you know, they they they chastise you in forums and and you know in telegram groups And in discords because you're no longer You know, you're no longer bullish on on the project that sort of brought you all together in the first place Uh, so I I think it's hard for for a lot of people to understand that you know Fundamentally I can be long-term bullish But I you know, I reserve the right to be bearish for 12 months on a project if I think we're in a bear market and so I would say that the the most likely effect it it'll probably have on my channel Is honestly at least on the public Facing side is I'll probably talk less about altcoins Uh in the next bull market. I'm not saying I won't talk about them at all But it'll probably mostly be discussions around bitcoin and ethereum with occasional occasional videos on on some some altcoins But for the most part It's just a dangerous game to play because a lot of people get married to these altcoins And and as someone, you know, if you have a lot of influence in the space You know, you have to have the courage at some point to say No, this altcoin is going to drop 95 percent or 98 percent like it's just it's gonna happen Even if you were bullish on it, you know, I mean I was bullish on cardano when it was two cents And and you know back in 2019 my my price prediction on it was somewhere between four to eight dollars And it made it to three dollars, you know I mean it went up 150 x But because it didn't go up that last, you know that last little bit It can leave some people upset, you know Sure Because the majority of the people That that are going to stick around at least when it first starts to go down are the people they got in late The people they got in early, they're happy But the people they got in early represents such a small amount of the people that view you in a bull market so That is something that you know, maybe or maybe what you know, maybe I'll talk more about the altcoin market In you know, in what I would consider to be an accumulation year and I've said all year I've said all year that 2022 is not the time to buy altcoins, right? And and so I mean I I think I'll I'll just you know, I'll continue with that sort of mentality of like, you know Maybe I'll talk about him some but as we get further into whatever the next bull market is Like I'm probably just going to stop talking about them until until we get into the next after the next bear market Because they're so dangerous, right? Like they're so dangerous for people because a lot of people just come in really late They buy off all these altcoins and then they ride them down 98 percent because they buy every single dip along the way But in reality, a lot of these altcoins are pure scams Um, I mean that's the truth a lot of them are are are going to zero And the ones that are not going to zero can still correct 95 to 98 percent And we've seen this happen literally every single bear market, you know And I I mean I thought that I thought that by switching my tune in q1, you know, it would help it would help Minimize, you know, how difficult that would be for people But even though I've I've you know been adamant about not buying altcoins in 2022 there still are a lot of people that That experience is the only teacher that they're gonna have like it doesn't matter what I say They're just gonna have to live through it and until they live through it. They're not gonna learn their lesson And once they live through it for a cycle Then they'll then they'll learn their lesson for the next cycle. So probably I just I will talk less about altcoins I'm not saying I will talk about them at all, but I'll talk more about You know, some other things like the macroeconomic stuff Probably more about the stock market Just some other things because I think it's good for people to have like a diversified diversified portfolio and And not to just be throwing all their money at these at these altcoins Which frankly most people have no clue what they even do. I mean, that's the truth That is the truth. Ah, that is it So excellent points both of you So I will just say uh for this one from as far as the lessons learned I wish I would have listened to uh to bend a little bit more on the take a cold shower Because as you know, I've still been doing what's called micro DC yang Uh for alts and I buy it But the majority is the bitcoin ethereum type of thing and and I go on I'm trying to take more profits along the way because I know at some point in the bill when the bear bull market returns That's the point when you're actually going to say I need to start taking more profits and that and it goes from there. So I will say that that is just just one part The second part for me is for is like how it's going to change my channel The things that have been going on I'll be harping more on the rules that I have Down there and the and the next big thing is self custody I think if we want to move ourselves into the next Era of crypto we can't be banks 2.0, which is essentially what what exchanges are We want to get away from them and actually give what it was supposed to be meant for Which is a little bit power more towards the people now Then I'm going to disagree with you. I'm going to still talk about altcoins because Unfortunately people are just looking to buy them But I'd like to get more and talk more about the the products that I really Not about the money side, but I think that they actually do quite well moving forward because let's be honest 99% of those of those cryptos they're gonna they're they don't do anything But they are great when you buy them and then of course you sell them But unfortunately when you buy something And you write it all the way up and you sell it who you sell it to you dump it on somebody And that's really what it comes down to so These are the things that I think about and moving forward. I'm going to be a little more Stringent on the things that I talk about. All right, so Moving past that as we've all cleansed ourselves now Let's talk about What we know now And all the things that you know, we've we've experienced What's the path forward for crypto market and there's a lot of things regulation consolidation retail institutional investors and public perception It's a lot of things to to to talk about then I'm gonna start with you and you can take any of these parts You can take the regulation public perception or just one part however you want to do it But we can bounce back and forth. This is a very loaded question to see where we go. How do we how do we move? into A next to get away from where we are now to a better place in the crypto market So I'll say a few things First of all, we still run the risk of not learning our lessons and and repeating the same mistakes as last cycle because I I remember in 2018 thinking surely people aren't going to fall for the same scams again, and they did I mean and and and for the people that think this whole thing with ftx is is somewhat new No, it's not. I mean we've had this stuff happen before this is not the first exchange to go down And it probably won't be the last I think the where it differs is just the scale of it But These things plague every bear market every bear market the exchanges go down because people make dumb choices They're humans, right? They're greedy. They want to make money So they take, you know, they they do bad things with other people's money. It happens every market cycle You know, so the idea that all these are are are black swans is just not true, right? Like it's just a bear market and and these things happen in bear markets And you just have to you have to learn your lesson and say, you know what? How do we make it better for next time? Well, probably we're going to have to have A significant amount of regulation Before I think it makes any sense for anyone to promote any centralized platform again And you know, I don't promote this stuff But I also I'm not going to say here and say that none of it should never be promoted I do understand that there's like a reason There's no platforms, you know deserve You know promotions and stuff But the main the main thing that keeps me from doing it is because like I I just feel like there's not Sufficient regulation and there's just no transparency. Like you don't know what these exchanges are doing with your money Um, and so I think, you know, I think before before people can really Realistically promote any of that stuff You need more you need a lot more regulation and you need a lot more transparency with what's actually going on And I will say, you know the the exchanges that survive this bear market will probably You know move up a level in my eyes Um, right because it's a pretty brutal bear market to live through Now I'm not saying I'm going to promote them or anything But you know, if you're if you're just trying to figure out what exchange to use Is it is it better to use an exchange that pops up in 2025 to take advantage of that bull market? Or is it better to use an exchange that is weathered multiple bear markets? And you probably want to go the one that has has stood the test of time Um I I am a little bit, you know, I mean with with the split congress now I don't even know how much regulation they're going to even get through now So we we could really run the risk of Of not seeing a ton of new stuff happen between now and and I mean, I I think some stuff will come out But I mean this stuff takes forever, you know, I mean this stuff takes forever We could we could still be sitting here and in the 20 in 2026 still wondering when regulation is going to occur um In any meaningful way, but I will say that um You know, I think that a lot of the altcoin market is likely going to be declared securities Is is my guess I don't know. I don't know where the line will be drawn I mean, I I don't think bitcoin is security and I think there's There's a case to be made for ethereum, but even that I don't I don't think there's any clear guidance that That won't say they won't also declare that as security as well um So I you know, I I think that we we desperately need clarification Because look all the big money like they're not coming back until there's more clarity in my opinion, right? I mean if if you have ftx as you're studying of your crypto and you were an institution Or you know, you were someone with a lot of money or or say like, you know, you had institutional custody of um over on ftx And you lost your money. You're not coming back, right not until there's more clarity um So we need we need this regulation Uh, whether we like it or not because until we get it, it's not going to really lead to to um Overall adoption now. I do think bitcoin can survive Regardless, I mean, I don't think bitcoin is security. I mean, it's I think it's fairly obvious that it's not So, I mean, I I also think that without without regulation You know, you you run the risk of of the scams repeating themselves again and you also Without regulation you also Let me say this one of the good things about regulation Is that it will instantly get rid of Of a lot of the people that can't afford to file for it, right? Like so all the all the bs projects that have no business doing anything It'll it should get rid of those fairly quickly but I think I I mean honestly I I think that it's probably going to take a lot longer than we want And it's going to drag out for years even the stuff with the scc and xrp has dragged out for what two years now It's been some time Yeah, so I think regulation is coming. I think it's going to be relatively slow And I mean once we get through this phase, I think the crypto market will probably be better off for it Uh, but that's just the truth. I mean, you know, they're not gonna I don't think they're gonna sit by and and just let people create Cryptocurrencies and altcoins forever without having any any any type of regulation to protect customers and listen in a bull market Everyone likes to make fun of of them for protecting customers But in a bear market everyone wants them to get you know protect them and get them their money back Exactly, they lose it on these platforms. So Um, yeah, something to think about Yeah, something to think about and and james before before I get get get back to you I uh, I watched uh, jesse pal former CEO of kraken and uh, he was on bank list and he talked about how the ftx Kind of blindside a lot of people and he talked about and jesse pal has has been around in Uh for forever in the crypto space He even talked about going over to mount gox and helping them with their first hack because he goes remember there was two hacks and uh, he said that for the ftx Fraud that that came about he said a lot of people that he knew personally that have been in crypto for Numerous amount of years who were considered the cryptologies They lost a Halacious amount of money because why because they didn't remember the lessons learned which is self custody So like I know ben you said that institutions aren't going to come back and assume before regulation. I think That's true. Unfortunately There's one part of it and it's this This aspect of greed where they put blinders on and they kind of just rush in now that they're all going to come in That'd be ridiculous. That'd be silly But I I I do think like I Like i'm sure the mount gox people like well, who would ever you know leave their their crypto or the bitcoin exchange That's that sounds ridiculous after the after the big hack now Here we are going again and again and again and things just repeat themselves Which is why I put the rules up and talk a lot about and hopefully I can remember to do these things moving forward So james the next loaded loaded question again would go to you the same thing that ben talked about. What do you got? Yeah, well regulation is needed for money to come in but you did mention something important that is greed so I think a lot of the problem is Like just talk about pension funds for an example like pension funds have been hit twice summer And both out of canada believe it or not and then with ftx because The pension funds are trying to make alpha They made a huge amounts of money and they feel they need exposure to something to kickstart their Portfolios because the rest of the stuff is not working and so that could still bring money and I think part of the Money flowing in so fast without proper due diligence is because People are ever just greedy Back to regulation yet regulation is part of my to come in but regulation has also improved not to work. I mean ftx.us Regulated the ceo had personal meetings with gary genzler So can we pin our hopes and regulation sec to protect investors? No um Now bitcoin does have a huge heads up with being a potential commodity under the cftc And that will be good. I think that'll be the first to fall and then money will You know start flowing in there and you've got big names already looking at that the fidelity is the black rocks, etc I think the real if I was Managing this whole space what I think what we need to do is again going back to my first point of transparency It's difficult for people to use defi Because they can't onboard their fiat to trade in the first place without some type of KYC centralized exchange how they you know move money in to get started and then it needs to be easier to use And much more transparent and trustworthy And I think defi the big shining star of this whole season Has been defi and how it's never gone down still works, etc Yeah, certain things have blown up when there's a lot of liquidity and that's just in each of it, but there's no There's no How do I say you can't call up a defi protocol and say hey, what's going on? Anyway But I think what cesi actually did is quite genius You know enforcing that kind of merkle tree proof of reserves is great We need better defi that works across All key tokens that aren't garbage tokens as well and make it easier for people to use wallets People to do KYC people to onboard fiat Into this whole space And going back to the kind of the iphone it needs to be made a lot simpler because a lot of people just aren't comfortable with it And like you I know people who are very sophisticated investors And they had a truckload of money on things like ftx even hearing about all the smoke and fire They still didn't believe it at the last minute and they felt their money was safe Because they didn't trust themselves with self-custry And that is a huge hurdle as well to the whole space so I wouldn't pin all my hopes and regulation. I'm hoping the cryptoverse led by some key leaders can make things Easier simpler safer more transparent to use for the greater market. That's the way forward Otherwise it might be a limbo for a while, but again Bitcoin There's bitcoin and there's everything else as everybody always says This is well, this is true. Yeah. Oh, sorry. It's already cut you off Anything else james? I'm sorry. It's it gotcha. So I'll to say the thing you do we always talk about was regulation I know that that's that's a thorn in people's sides and it is true, you know as far as like ftx was I mean ftx has the the us division Unfortunately, they had a global division the ftx global Binance has a us division and of course they also have finance global However, I will say this I've been harping about regulation and I think I've been a little bit off base Not that we don't need regulation. I think we do but I think it's just the start. I think it's just the beginning There was this story This is getting bernie made off. I don't know if anybody heard him But apparently he's been quoted many a day many times now recently. Did you know that made off? When it ran made up securities lc was investigated at least eight times over a 16 year period by the scc eight times Unbelievable and of course they came in there and they're like, well, you know, let's see what's going on And they did an investigation and nope everything's good to go and then also I believe bernie made off correct me the comment section was that on the chair of the of nasdaq Or the president. I think of nasdaq. So you had the uh, the the top crook in chief And uh, he was calling all the shots and that right there is a problem and and james he talked about it that Hey, you know gary genzer who watched the show gary. Glad you're here that he When when he came about and uh, and he had a meetings with with spf. That's A multiple meetings. That's a problem So I think the merkle tree the proof reserves. That's a good way to start of course But that's only tells us half the story, right? That's your That is your your asset. This is what it kind of asks is yet What kind of loans are going on? What kind of liabilities do you have? What else do we have? Right? So I think it's just like like healthcare Like in healthcare in the united states every single hospital is accredited by jaco The joint commission accreditation for hospital organizations, whatever May and that's just the very base what you have to have as far as like operate as far as a hospital However, if you have other parts of that hospital surgical centers wound care therapy physical therapy What else you can get additional accreditation to show that you have mastery or you are in the top five percent I think if we can do something like that like here's a base case And it's not just me talking about that again that bankless show with jessie pal. He even says he goes You know regulation He said there's there should be some type of oversight That we can all get on board with and just kind of say, okay This we we check these boxes bing bing bing bing bing And if you want to go above and beyond and be that next great exchange Then you do those things to attract a higher caliber of customers I think that I think would really help out Moving for but it could just be it and then lastly i'll say public perception is shot Retail versus institutional. There's still uh, there's still greed and it's going to take some time for us When everybody back, but uh, that's really on us. So last question and james, I just left out with you same thing Um question. Where's where's spf in one year's time? Well, this is uh, again the type of stuff coming to the surface now is staggering. So the guy is either delusional or deranged by one of those d's to pick your choice. Um You know, what what is amazing is how he fooled so many people How he was in cahoots with so many top names, you know, sitting with Former u.s presidents and british prime ministers and the gary gansler private meetings and passing sequoia due diligence, which is Used to be a brutal thing back in the day And even seasy invested. So the question is will he end up in prison? Maybe or in bali or dubai with the rest of the you know Where people tend to end up that are part of a lot of this kind of downfall and i'm old enough to remember The bernie maddoff guy who just mentioned who had a scam that was 100 times more complicated than what sam has done And he was in handcuffs the same day When the feds learned exactly how he used clans funds to cover handcuffs the same day but I question and Literally I question the amount of money and the connections to his parents and super PACs and democratic party Maybe that hundred million dollars he spent on the democratic party is enough for a get out of jail free card Could be wrong, but that's all that's in the subject is a beyond Like he should be life in prison for this guy Yeah, we will he has a good question. We will see we will see if it actually happens that I think is the bigger question Will this happen? Then last question to you sbf in a year. Do you really care? I've never I've never promoted that exchange or talked about it or I I mean, you know, I He probably he probably deserves to To you know to um answer for what he did But I mean, you know, I have no idea if they're gonna actually go after him or not Yeah, sounds reasonable and last and last y'all to say uh in jail. Maybe who knows Nobody really I mean in all honesty nobody really cares. They just want their crypto back. Let's jump into it So gentlemen, that'll take care of the questions. Thanks for stopping by. Let's get into the little q&a And answer people's questions out there in the wild. So first things first. Let me uh, pull this up So everybody if you do me a favor, I should I should have said this on question number four Please start to put in your questions and I'll pick those questions from there as I am waiting for those Questions themselves. Why don't we go to good old twitter? And see what you guys had I even said here. I go. Hey dc alive today got questions put them below trip j Smoky age of sam. What do you think about the slalom ecosystem? I'm gonna say that's probably directed towards uh james james. What do you think? Yeah I talk about that You know, I by it goes back to the thing. I answered at the very beginning is in the crypto verse fundamental analysis Doesn't matter. You got to know what's happening behind the scenes But uh, there there are this, you know, the right before all this happened You know, they did partnerships with google and meta and released a whole bunch of staggering statistics around performance and Showed a lot of new doubts that we've been built like an uber killer and et cetera, et cetera Um, that was all just You know, quite incredible The problem is now is really to come to terms with what type of black eye the ecosystem has gotten What's happening with funding where all that stands is all sorts of rumors that they only had 1 on ftx versus maybe more I don't know. Uh, it will definitely It's a black eye. It's like if they're running a marathon and they broke a toe or twisted an ankle It's gonna slow them down for sure But uh, who knows where this will go The team like I just watch kind of the leaders like raj and anatoly and listen to what they say You know, they they feel they've got, you know, three years or 30 months left to fund this thing Make some difference Hopefully that'll get us through the next bull market as well. We'll see but uh, again I go back to it's trading at 130 second of the market cap of eith Is that cheap? Yeah for what it does. Yeah Very cheap But then again, could the whole thing blow up and go to zero right now We've learned everything can blow up and go to zero real fast And that's the big 2022 lesson So never have all your eggs in one basket the further you go at the risk curve Minimize your exposure. That's that simple Yeah, exactly when the next bull run comes comes comes along don't diamond hands it geniuses Just starts taking profits. All right Ben, this would be more more a question for me and you do you consider dc-ang over the year and bitcoin a mistake? This is from chuck norris So we should probably answer it We got to risk levels and prices that were very wanted for a long time 30 25 20k and now 16k even though cash is king Do you think having a 40 cash position right now is still decent? This would be uh, yeah, then i'll let's take this one Yeah, I would say so I mean like cash is king this year If you if you have a multi-year outlook, I mean, you know, I I do think bitcoin will eventually make it back to 30k and and so on and so forth um Yeah, I think I mean, I actually have more than four. I'm actually at like 63 cash right now. I'm like super happy. Yeah um Just because I've been I've been quite bearish this year, but I you know as we get into 2023 I I'll probably start to to shift my tune. You know, I'm not going to stay bearish forever Just you know want to protect myself in in a bear market. So I mean, you know, if you if you picked up bitcoin this year Yeah, you're you're probably underwater probably still gonna be still underwater for a while to be completely honest um Especially if you were buying it at like, you know 40k and whatnot, but Eventually eventually I think it'll work out I don't know how long I don't know exactly how long I mean if you think back to like where bitcoin normally is At it's having it normally gets back to like its quote-unquote Fair value So, you know, I think I think there's a case to be made that bitcoin will probably get back to the 30 to 40k range in 2024 yeah So, I mean, I I think if you just sort of keep your head down and and You're smart about about accumulating over 2023 Then eventually it'll be rewarded. But again, I mean these things take a long time at 2014 2018 We're both bear markets and then After a bear market, you normally go sideways for a year or longer It's a it's a marathon. So I I wouldn't I wouldn't buy bitcoin with the expectation that it's going to shoot up tomorrow because you know There's still there still is a good chance. We continue going lower it out. I mean, I said earlier I mean, I wouldn't spend too much of your time thinking about if the bottom's in or not in 2022 because It's just a bear market. It's just um, you know, you you wait longer and the price eventually goes down So, I mean, I think 40 cash is a is at least a good place to be because it'll give you some flexibility in 2023 Yeah, I can see that. All right, and then uh, Where are we here you go this one I think this is an interesting point. Oh, well Okay, before I go on to that one, uh, ben this is a question really quick for you again You had mark use go on he was talking about fair fair market value And he talked about a couple different charts and he talked about uh, the ones that he uses and he was talking about 10 000 In 2017 and then he used something else for 2020 did he give you one of those fair market value? Because I know over on on your website in the cryptiverse, you've got the fair market value Over there as well. I mean, he didn't give me anything specific Um, I mean you can you can have like a a logarithmic regression chart and fit it to like, you know Non-bubble data right and try to get a fair value for bitcoin I do think if you if you do that with the current data, it would still say the fair values Is just below 20k or so um But you know, we know we can go undervalued and spend Six to 12 months there before going back before going back up, right? So I think that's what people have to remember is that We can spend a year if we can spend a year being overvalued we can spend a year being undervalued Gotcha, and this one got you so this one is more for geared towards james Pull in here Any this is from Jerome. He says if the regulation comes horribly altcoin market Do you see a possibility of a bitcoin and maybe eith only? Bull market meaning of course people want to stay away from these quote unquote securities and and the collapse And who knows what's going to happen as far as consolidation James, what do you think here? Yeah, if anything I think First of all, there's two ways to answer that one is everything that's happened Has proven the need for bitcoin and bitcoin only everything else is very far at the risk curve Second thing is gary genzer. The sec has clearly Taken shots at ethereum being a security going forward. So there's a lot of chatter around that I think it's Pretty certain that bitcoin, especially with the new leadership in the house, etc Will be listed as a commodity going forward The jury is out on ethereum. But again, like ben mentioned earlier You know the big chains have enough money to You know pass the compliance to be a security But I think everything else would be a security at this stage It's a good chance of that and in terms of what happens and we discuss this actually back in the summer despite The knowledge and everything else people are still yoloing into stuff that is complete garbage So everybody still wants to Buy something for a fraction of a fraction of a cent and hope it'll get to a dollar because if they have A million of them or 10,000 of them it will make them a millionaire and people still have that G or q mentality, which I think is a problem. But I think again, there's bitcoin and there's everything else Juries out on ethereum and the rest of the the bigger chains that can be compliant Will make it as long as they have Value propositions usb's Good point And then we are coming up on the hour long. So i'm just going to just End it with this somebody had a question. I can't pull it up for some reason, but The question is what's the chances of bitcoin going to zero? So anybody want to take that one? I've always said one percent to be safe, but there was a study out of It's mit or yale. I think it's yale and they still have the calculation now down to about 0.35 percent of it going to zero. So It's low. It's still risky. There's risk with everything out there Anything on that one? I mean, I I don't think it's going to zero. I mean, I mean, I'm not going to just pull a number out of my I But I mean, no, I don't I don't think it's going to go to zero. I mean it can go it might go lower than Then a lot of people think it might but I I still think it will be resilient and and it will come back And and to answer your other question as well I mean, I do think there's a case to be made that that bitcoin could experience A rally by itself and and it could it could experience that as early as next year Now Again think back to 2019, you know bitcoin The coin went up like 4x and a lot of all coins did did not do much of anything. Some of them did but um I mean, you know, I wouldn't I wouldn't be surprised if if bitcoin just after After this bear market is over And and we get into some of the all coin regulation stuff And and are they securities and are they not? There's going to be a lot of people that are just going to say to hell with my all coins I don't want to deal with it if they're going to get delisted from exchanges I'd rather just put it into bitcoin And you know, I mean that could lead to bitcoin going higher and and all coins going lower I mean, I I do think you know and and one more thing all coins Normally bottom against bitcoin 6 to 10 months after bitcoin bottoms against the us dollar So yes, yes all coins have gotten destroyed this year No They can keep getting destroyed I guess the us dollar but furthermore even after bitcoin bottoms They'll likely still get wrecked on their bitcoin pairs Until bitcoin Goes through another parabolic run to some degree. I mean some all coins will have many many alt seasons Maybe at some point, but for the most part I I think a lot of the alt coin market it remains remains in traffic on struggle street until probably The end of 2023 at least on their bitcoin pairs. They could bottom against the us dollar well before that Yeah, yeah, and I have I have those exact numbers. By the way, it was Yale. Thank god It wasn't mit or enough crap out of mit Just two things that are important one The implied daily disaster probability for bitcoin going to zero is now 0.3 percent and this is from Yale University professor Alley Tsizvinsky hope I got that right and uh, you can you and also Another guy called Robert Schiller who is a Yale Nobel? Prize winner. He said bitcoin could be extinct in the year 21 18 So gentlemen, we have another what 96 years to go I won't be I won't be around to see that so that's good. All right With your Puerto Rican lifestyle, you'd be just fine. Yeah Uh That's good. It's tough. Well get well guys. I want to say thanks again for stopping by I do appreciate the both of you everybody if you like today's video Give a thumbs up consider subscribing also check out these two guys and then just remember Of course, uh, it wasn't a crypto project. It was a crypto exchanges that failed us So hopefully better things ahead. Thanks so much everybody. Appreciate you. See you on the next one So So