 Welcome to digital asset news to get top stories and crypto currency digital assets and bring it on to bite-sized pieces today Wow, there is a lot going on. So let's jump in. So first up Here's why Bitcoin flash crash and what to expect next. This is a good article by Akash Jermoth Grimoth, but it doesn't tell the whole story also Mike Novograd's talks about this being one of the most important years for crypto And I got to believe him. I got to think that he's correct. How I don't think it's just this year I think next year coming up in the first two quarters is gonna be massive And I like to hear from guys who have been there also Bitcoiners are transitioning from maximalism to centrism and If you look at some of the different social media outlets, you will not see it But I believe that this is going to become the mainstay That'll also lead us to cue the day over go over two different questions That'll be at the very last part before you that let's take a look at what the heck is going on with the market So today it is September 2nd. It's about 2 p.m. Texas time hoping to get this video off pretty quickly. But what the heck happened? So Bitcoin down 5% which yeah, you know in this market not too big But we haven't seen that too well We haven't seen it lately because of the bullish sentiment towards cryptocurrency most importantly Bitcoin and most importantly DeFi But it took a big tumble now It's down to 11372 down 5% in 24 hours and on top of that and you also have bigger hits 8 almost 9% for Ethereum 6% for XRP tether is tether. Nobody cares chain link almost down 10% poke it out poke a dad poke a dad down 6 Bitcoin cash, I mean everything across the board is down Bitcoin SV Finally drops out of the top 10 EOS down 10 2.2 and so on and so forth. So not a great day For the cryptocurrency market, but a pullback like we have always said is healthy The question is why this is not just a pullback, but it feels like more than that and how far will we go now? It's anybody's guess we can kind of take a look at what's going on However, I will tell you this that there was an article that was written that talks about how Bitcoin doesn't doesn't control the market anymore and it doesn't really matter and I got I'm here to tell you I don't think that's true because as we see Bitcoin tumbles everything else tumbles However, maybe the real question is was it Bitcoin that tumbled or was it DeFi that tumbled first? That's the real question because DeFi in my opinion It's There's opportunities for massive gains. Do not get me wrong. I think it is it is phenomenal I think DeFi is the future for sure. I just don't think that going up, you know 200 500,000 X in a week is It's sustainable. I just don't think it is. I mean call me crazy But that's just how I am now a lot of people out there will be like, you know what you're crazy This is something new. It's never been like this and this is how it is Well, let me tell you something as long as I've been around the more things change the more they stay the same and I've lived through a lot of different things in my 40 Some plus years on this planet and I can just tell you right now that nothing really surprises me anymore And when I saw cryptocurrency come about in 2017, I thought this was it. This is gonna be fantastic It's go to the moon. How can people not see how fantastic it is? That was in 2017 and guess what happened 2018 Huge bomb and it just went down like crazy. I'm like what the heck's going on the more things change the more they say the same So where does DeFi gonna go? I don't know again. I think it's gonna be awesome I just don't know if it can just sustain going up a hundred two hundred five hundred percent every single time There has to be a little bit of a drawback. So you may we see that there What else we got your end up finance which was up a hundred seventeen percent for the week in seven days That is phenomenal. However, I think it was at 38,000 somewhere around there now It's at 29,000. So if you got in you fumble it in don't kick yourself. It happens. Even happens to me It not as much as they used to but you know, just just reset yourself no big deal And then what else we got six point six four OMG network. I don't know why that's down. That was fantastic Thankfully, it took some of the fees off of the theorem. Thank you OMG. I appreciate that and then also where is that? I'm looking for sushi sushi. Here we go down 34% But I gotta tell you massive run hasn't been it been up a week and we see it's almost doing what is this 24 hour volume 597 million and it isn't it hasn't been around a week. So if you got in a sushi congratulations It's just down a little bit today, but hey, I think not too long goes like a three bucks. So what are you gonna do? All right, let's jump into today's top stories. So this is by Akash Jerema, I'm sure I screwed it up. But first of all, who's this guy and what you know Should we listen to him as far as what he writes? Well, Kosh here Full-time crypto writer, analyst at AMB crypto He's an engineering grad with an avid interest in finance and economics economics attracted to the chaos of trading Who isn't Akash has a vested in Bitcoin ETH and XRP for educational purposes. Sure wink wink. Not not look I'll take a I will definitely read an article from somebody who is in our space. So I'll give this guy a pass. What do we got? So Bitcoin witness they flash crash or a crash a pullback will say cuz I know that's gonna be in the comments section It's not a crash. It's a pullback. Hey, great. 117 111 are great But it happened less than an hour and it's taken down a lot of all coins with it Everything's down about 2% 2.2 to 6% in the last hour and as we just took a look It is even more so than that with the exception of polka dot. How is it actually I didn't really go over that I think I did but let's just make sure polka dot. That's still on 6%. What are you gonna do? All right, so going on this has caused a cascade of liquidations that range as much as 45 million with about 9 million worth of Cell liquidations for all my traders my heart goes out to you What doesn't kill you make you stronger and hopefully you can bounce back Perhaps the crash was just a fud from the circulating news about the Korean exchange That was reportedly being seized by the police According to South Korea's newspaper the soul Shin Mun bit hums or bit thumb. I want to say it Offices has have been raided by the authorities in addition the exchange is reportedly being accused of Pre-selling 30 billion worth of BXA tokens to investors Whatever that is to make matters worse after the tokens were sold the acquisition deal with Singapore's BK group Didn't go through and the tokens were never listed leading to investor losses So that's part of the story and it could be true. It could not be it's fun I mean it might not be I have no idea and over the next couple days. We're gonna see we're gonna hear about the truth However, I will say this Akash gives us some good information. Here's what I think I think sometimes that we are in such a small pool of Different whales and different investors and institutions that just a little bit here can Look like if okay, here's the thing if I was a whale and I had a ton of money, right? Cuz I mean what are at we're under 400 billion right and for some well That's not that's not a lot of money They can just you know go in there liquidity and just you know do a bunch of different trades and it could Screw up the market or what they could do is go You know what? I'm gonna hide my all the different trades that I'm gonna do and I'm gonna pinpoint it to some you know innocuous article, you know, maybe this this Bit thumb actually is going down and I'm gonna hide it right there I'm gonna do some trades let it crash and I'm gonna buy up everything cheaply Which is probably what's happening in the background and even if they weren't responsible for it It's the same thing that's gonna happen. I always feel like That these whales out there are super manipulating the market and it's just a game of these big entities and there's only one way for me to beat these guys and it's not trading It's not looking at technical analysis. Even though if you want to do that, that's cool. I don't care But for me, it's just buying and holding and waiting till I have my exit points and for Bitcoin It's around a hundred thousand maybe even 200,000 for Ethereum that to me is a ten thousand dollar coin for chain link It's a thousand dollar coin You just keep going down down the line I will not sell my hands are as strong as you can possibly get them because I live with the 2017 crash 2018 crash. I just don't care and I'm too damn stubborn to let go and that's how I got it So let me know what you think of the comment section. Let's move on next up. I like this I like listen like Novogratz some of you don't like them some you do but I gotta tell you one thing this guy's been around the block and The things that he's talking about I'd like to hear from people who have been there I do not want to hear about versions talking about sex. That's these way I can say it So when this guy's talking about, you know, look, this is what's happening. See if I defy sushi Tesla and the bubble I Find it and thrallings. So let's just take a listen how it's pushing a lot of people into different assets But what has it meant? Do you think in terms of the viewpoints on crypto currencies? So listen, you know crypto like any any of the other speck of the assets has benefited immensely from Perception of zero interest rates forever and central banks just jamming liquidity in like they're trying to feed a four-grad duck You're jamming the food into the into the duck and And so we've seen a Nice move in the bitcoin price. We've seen a stellar move in the ethereum price That's based around this burgeoning new space in crypto called decentralized finance And what you're seeing in defy, which is really Interesting is really reminiscent of what you're seeing in tesla just a speculative frenzy There are new projects that are doing really cool things, but they're getting such a surge of liquidity so fast It's changing at a speed. I've never seen in markets There was a new project called sushi that was only launched five days ago And it's over a billion and a half dollar market cap in five days And so that worries me some, you know It's while it's early in defy to see speculative frenzy like that. I mean, I think about tesla today Right tesla is a stock that's up 600 on the year. It's trading at over a thousand times earnings Uh was up 13 percent yesterday after being up 70 percent because of a split and they announced they're going to sell five You know billion dollars worth of stock and the market wants to trade up You know, that's the power of this frenzy. We're in right now It's it's a rational exuberance. You can call it what you will I'm a little worried that we're going to have a big correction in a lot of risky assets soon I don't think it's a correction that lasts for that long because The liquidity machine is not being turned off But I think we're going to go through a series of these bubbles and It feels close to being a peak bubble right now So I don't know how you feel But when I look around and I see all the things that are going into the defy space And I see other things that are going into the actual the regular stock market. I'm looking around going What's going on? Is this is this reality? Is this something that that really should happen? I just I just don't see it and um There's a lot of people out there that uh disagree with me They think that you have to get on now and it's going to be fantastic forever And it's just I'm telling you This is the way that I see it is just like the ICO craze in the 2017's if you get in early It works out pretty well But the people who stay around too long are the one holding the bags and then those are the ones that get hurt So if you're in this space right now Just be careful and that's that's all I can really tell you there's a lot of money to be made out there If you want to be more risky, I'm not that risky of a person I like to just play it, uh, you know slow and safe And uh just invest but for other people out there, this might be your opportunity that is not Obviously not investment advice. Just be careful All right, so on that that trend Let's take a listen to mike and what he's talking about here as far as just advice This guy has been around since I mean the cryptocurrency space. I remember him in 2017 He's one of the reasons why I actually got into it Because he was more of the traditional space and he got into cryptocurrency and just talked about this is gonna be big And he still has that vision But there's a little caveat. Let's take a listen Key word with some of these new the these new coins. What what's your ultimate takeaway for investors on These new names these new coins that are coming to market You know Do your work have fun be careful Uh, listen, I I I lived through and profited through the 2017 crypto bubble And this feels somewhat reminiscent to it There it was the ICO was back then, you know a new ICO every day And the herd would would swim to that ICO and jam the price up And there'd be a frenzy of liquidity and price And then it would collapse and they move on to the next thing And it feels a little bit like that. I I think defi is going to be around longer I think that you are building infrastructure, you know compound might exist in 20 years and we might trade Interest rates not a jp morgan what on compound or I think some decentralized Uh, baby, but these are still we're a sandbox right now And it's a sandbox that's getting liquidity like it's an adult industry. And so it's it's it's be very careful What's interesting is the bitcoin the new bitcoin buyer Is an institutional buyer. It's a high net worth buyer. They're coming in methodically and slowly And they're not stopping and so that's keeping the bitcoin price up a lot of the traditional crypto people Right are selling their bitcoin buying the sexier sexier objects and so in this move of This kind of mania which we're seeing in decentralized finance It's pushing ethereum price up because it's built on the ethereum network and other protocols It's probably putting a little a little weight on bitcoin Which tells you how powerful bitcoin is that even with that selling pressure It's still going up based on the macro story So yeah, and there it is and I can just tell you that I think that again A lot of money to be made in the defi space I think defi is going to be here for a long time And the reason why I think that is because the banks have screwed us over for so long And they have made a ton of money off us. It is time to take that power back There is no reason why they should make all that the fractional reserve or for Finance and and lending out our money and just you know just raking everything in and they were the reason Essentially for the 2008 collapse. So there is no reason why they should be in that much power. So defi is a magnificent play Do I think that it is it is a bubble right now? Yeah, I do. I think it's going to go up So, uh, you just have to be careful because if you're the one late, you're the one holding the bag It's like it's like when they talk about poker If you don't know who the sucker is in the room, you're the sucker Last part is just a minute and he's going to talk about the future of crypto in 10 years And this is what you know kind of gets me excited. And so as an investor I like to go, you know, three five 10 years out to see where I'm going to be positive in 10 years The ecosystem around crypto currencies bitcoin ethereum the whole space blockchains is going to be Multiple times bigger than this today And so that's a big deal. And that's why I think this will be one of the most important years of the space It still doesn't mean that from time to time The speculative frenzies get carried away. I love I have owned two teslas I think it's one of the best auto companies in the world. I think it's going to be around for a long long time I think Elon's a genius. It doesn't warrant the 500 billion dollar market cap trading at, you know, 1300 You know times earnings It just doesn't and we will look back at this episode in tesla in the textbooks of one that goes up with tulips and you know 1999 Detect bubble. This is a tesla bubble. Is it going to pop today tomorrow the next day? I don't know. It's going to pop soon Because you're you're there just too many markings of You know what a top looks like and so you know i'm trying to Stay as optimistic and bullish as I can on crypto because it's really early in the cycle But give the warning that you know, there are other things in the markets that have me worried So I think he's wrong here. I I don't think this is the year that everything's you know pops off I think next year This is the momentum building phase And once we get into quarter one quarter two 2020 I think that's when it all takes off because all the rails have been built All the different problems have been addressed. There's a lot more main nets out there We're making inroads with these institutional investors and you and me who are retail investors Know exactly what it is and we've been educated. I think next year is the big year So having said all that and what he talks about as far as tesla I will still buy tesla and dollar-cost average and later Because I think it's a fantastic company and also the same thing with cryptocurrency and I still believe it All right, let me just think of the comment section. Let's move on So last article before we get to the queue of the day and I'll make this one short Why more bitcoins are transitioning from maximalism to centrism and I was going to You know highlight the whole article and go through it, but it was boring and the only thing I want to say about this Is that when I got in 2017 There was nothing but it was like it was like the tone vase and the max kaiser's and all those different people who were like Shot from the rooftops that bitcoin is the only thing and all the other shit coins out there Uh, we're just there to take money from bitcoin And I try to see their mentality and I kind of get it because it's because I mean we talk about cryptocurrency Cryptocurrency so with bitcoin currency. I get it, right? We're not using Ethereum as currency, right? We're not using for the as the u.s. Dollar or the or the you want or anything like that So I kind of get that whole mentality, but I mean it's been it's been time. It's time to move on and I consider myself What would be this term centrism? I think bitcoin is going to be the first to pop off. I think it is It is an old technology I think it's like the netscape navigator as far as like a browsing apparatus But you know, you have to have that netscape navigator To get to google chrome and you have to have google chrome to get to the brave browser So I do think this is going to make a lot of sense and I think as time moves on even these huge Bitcoin maximus have to bow down or bend the knee and go look This can't do everything. I mean even trace mayor who is like the og of og's bitcoin maximus has said He says these there may be a number of all coins that can perform specific functions better than bitcoin And we'll have a reason to exist and thrive bitcoin is needed to satisfy all the needs of all the people because that is ridiculous and stupid Sometimes you want a knife sometimes you want a fork sometimes you want both so we have to keep it open mind And he's right. I do not see bitcoin as an oracle. I do not see bitcoin for defy. I do not see bitcoin for tracking merchandise and Doing all the things that v-chain like for instance can do and to identify frauds and I just don't see it Maybe i'm missing the point, but I sure as hell do not see bitcoin as being an actual currency Just look at what happened 2017. They couldn't handle what we did back then as far as the market so Bitcoin centrism that is my new phrase. All right, let's move into cue of the day Everybody welcome to the office for cue of the day. So got a couple great ones It's actually two two questions that i've been putting off answering until I found the right time I think this was the right time So there's two first one is from uh, thomas and thomas asks a pretty pretty great question He says hey dan, enjoy your perspective and I want to get your opinion on hot wallets like celsius We're splitting bitcoin into an ira and we don't realize we did a pretty intensive or extensive video which goes over Roth and sep and traditional iras and how that can work out for I mean massive massive tax savings For cryptocurrency it's not just for the traditional market anymore. You can put it over into Cryptocurrencies, bitcoin, ethereum, even gold stuff like that. So So thomas asked then I didn't realize crypto ira ira existed until your recent video. Thanks to heads up How does taxing bitcoin now? And locking it up compared to these huge compounding interest rates we are seeing which is uh, 6 percent 12 percent 18 percent yearly For cryptocurrencies on platforms like celsius as with most things in the mix of the two is probably the best way to go But if you only had a small to moderate amount of crypto, would you lean more heavily towards taxing it now or the weekly interest? So Here's my answer in a nutshell. Yes It is great to do two things at once the things with and we talk about this in the video I'm going to link that i'm going to have it pop up right now But it's also going to be at the end of this video the things with with iras. Uh, they're great um traditional seps and roths The things that suck about them is that you can only put about six thousand dollars depending on your age If you're 49 and a half or lower, it's six thousand per year. Uh, if you're 50 or above it's seven thousand per year So that's pretty much it which if you think about it, uh, could be pretty substantial Especially moving forward if you could have bought like like like let's say ethereum in uh, 2015 2016 One is around 100 bucks or 10 bucks Uh, how great would that be so if you could invest six thousand that fantastic now six thousand to bitcoin Unless we get another huge Sell-off, uh, you know, you're gonna get like maybe half or you know, depending on the end of the year Might not be that much So it really depends on how you want to do it. I see the ira as putting it into certain cryptocurrencies that could You know exponentially grow. I think ethereum is a ten thousand dollar coin And uh, I would probably put the money into that if i'm going to get the six thousand But again, it's a combination of both. I will max out my ira with iTrust And I will put the rest of it into a you know, in this not the rest of it I'm not going to say like I'm going to put everything to Celsius. I'm not I'm going to put a partner Celsius Maybe 25 percent some somewhere that I can get a type of interest alex mischinsky um, he is the CEO of Celsius and he is also the godfather of voice over internet protocol v o ip And he talks about how his mission and he's a very very, um open guy His mission is to make sure that you can all retire on the interest and this is the very early days. So if you think about it Okay, well, how much would I need if I if I'm if the interest rate is like, you know, 8% 9% 12% 15% or whatever else it is Depends on where you're at, right? I mean if you're in Costa Rica, you don't need squat If you're in new york, Manhattan, uh, you're gonna need a ton of money So it just depends on what you want to do. But uh again for thomas to answer this question It's a combination of both me personally. I'm going to max out the ira I'm going to put into money yielding things and then also take a hard look at defi and the rest of them I have my exit plan For bitcoin, ethereum, xrp, chainlink, cardano, everything is out there I will never ever sell all of my cryptocurrency. That'll be ridiculous because you never know It could be a moonshot just depends on which one. So hopefully I'd answer your questions That thomas is that's the first one And now for the second one, let me bring it up All right, this is from Chazz Chazz, that's a good name, Chazz Says, hey Dan, love the videos being tore here. I can't decide to keep my eth on trade into dot He says he mines eth at about four corns a month. It's pretty good money actually I mean look for for ethereum. Who knows how much that could that could mean in the future Um, which I think will leave me with my next question Like with the eth 2.0 coming out and it's proof of stake How's it gonna, you know Impact Chazz's business model there because he's gonna have to find something else to Mine. Anyhow, he says I mine eth at about four coins a month Holder, not much of a trader thoughts. Chazz, I'm right there with you I am more of a hold on type of person. I'm more of an investor And I like to to buy up things and just hold on to them. My favorite holds are land I love to buy land and just hold on to it for years and just see it appreciate You don't have to do anything, you know, you don't have to do anything You don't have to look at any charts. You don't have to do too much. So land is fantastic I think cryptocurrency is the same way you can you can buy it and hold on to it and uh, you know A good amount are going to go up some will not uh xrp being one of my one of my um reminders of uh Of when you should actually let go of something, but I'm just too damn stubborn to let it go Just I just am I've already lost 90 percent. So 10 percent ain't going to kill me Let's see what happens. Let's roll the dice, baby. Anyhow to answer chazz's question If you're looking to Keep the ETH or trade in a dot here's honestly what I would do is if you're mining for Ethereum a month, right? And I don't know what your overhead is You probably have to sell some ethereum to actually pay for the for the electricity cost and whatever other overheads you have Great. So let's say you have to sell to ethereum I don't know so you're left with two what I would do is I would hold on to a good amount I would if I had to ethereum I'd probably hold on to One and a half ethereum per month and the other half in ethereum. Let's say it's 400 bucks I've put 200 dollars into dot and you know my slogan dollar cost average So I'm not going to take the 200 bucks and drop it on a wednesday and go. Well, I hope that's the you know The lowest price it is and hopefully it goes up. I just don't do things that way I have a strategy and the strategy is just to be slow and sure and that means that I'm going to put it in For you chas this might be a good one every three to seven days Put about 25 bucks in and then see what happens Other people who have a lot of you know a ton of money. They might say, you know what I'm going to buy dot I'm going to buy I'm going to put 500 bucks a day into dot I know people to do that Just because they have the money and they're like, you know what I'm going to dollar cost average in I'm going to see where it all leads me and it's just depends on what you want to do So dollar cost average like I said Instead of taking the whole watt of money that you have 200 a thousand 100 thousand dollars and just dropping it all in one day Space it all out and just buy it at either like daily every three days four days every week every two weeks every month And then take a percentage of it. So, you know, if you if you had a thousand bucks 200 bucks We'll say every Monday and then off you go or 100 bucks every three days off you go and that would that would be it I think that's that's the safest thing because right now There are so many fluctuations, especially with beefy and things like that if you drop everything right now You're down 30 tomorrow or you're up 100% who knows but I would rather be a little bit safer than a little bit Loose with the money and I think over time. That's the winning strategy. It's boring. But guess what? Boring works and that's usually what happens with investors. So you never hear too many Investors crying like oh man, I lost so much money over the last 20 years because I dollar cost average Usually it's traders. All right, so that's it for question of the day. Let's jump back All right, and that's it. So hope that answered some of those questions for those two people Really thankful that you made to the end of the video. If you don't know there's a join now button underneath You don't get anything special. It's just like a tip. I just do random shout out So for all my level ones, uh, there is only one level I used to have two But I just said that it's probably best if you just keep that money and spend the crypto So johnny henderson joey serena margaret bonnet Uh, kelly church who we got frank wine hammer. That's a good one. I am not I berry blasco And metals man 75 so thanks everybody for joining I really appreciate it if you like these types of videos There's gonna be two months gonna pop on your left and right not sure because youtube controls all that stuff But uh, I'm trying to do my best and um, yeah, go ahead and check those out. All right. Thanks so much for watching. See you on the next one