 Digital Asset News, the top stories in cryptocurrency and digital assets, and break them down to bite-sized pieces today. We've got some stories about mass adoption, but underneath, the real question is what's really going on. So first up, MicroStrategy buys more than one billion worth of Bitcoin, adding to massive holdings. This was published on Wednesday, February 24th, which is today. And the real question is, what was going on as everything was crashing, and was this a coordinated event? Not to talk about MicroStrategy doing it, but all these other big players, as far as like F2 pool, BitMEX, and the shenanigans that were going on over at Kraken. So we'll take a look at that. Also, the MicroStrategy and Tesla stock and how this has affected what is going on with their shareholders. On top of that, we're going to talk about failure to report crypto. On your tax returns can lead to trouble with the IRS. And it's not just me saying that, it's this new form for the 2020, 1040 US individuals on top of the fact that I just received an email where one of my subscribers is getting audited by the IRS. So we'll take a look at both of those things and what is going on in the world. But first, let's take a look at what's going on into the market. So first of all, today is February 24th, 9 AM, El Paso, Texas time. Welcome. Good morning or good afternoon, wherever you're at. Thanks for stopping by. I really appreciate it. Here is what we got. Now, as we were talking about yesterday, it was one of those kind of cruddy days and crypto yesterday when everything just kind of fell down. And here we are now, we're just below 50,000. Actually, when I woke up today, I usually wake up around four o'clock, just a big sleeper anymore. And I look, I rolled over and I'm like, man, it's pretty good. Bitcoin, I think it was like at 52,000, 53. And everything was in the green, it just looked fantastic. And then right around six o'clock, when I got back from walking the dogs, then all of a sudden it just kind of dumped out. And my friend, George, texts me and goes, yep, morning dump as usual. And I have to look at this and I'm like, I think he's right. Seems like every single morning, it's like things go pretty well over in the overnight. And then in the morning times, you just see like dumps. Now, there's no always happening like this, but this is where we're at. But we are back below 50,000. Bitcoin's at 49,7 Ethereum, well below that's 2,000 high. And now it's 16,53. But if you notice one thing, everything's in the green. And that's fantastic. And it's something with the mentality of what is going on in the market. And people see green like, well, good, everything's great. But you have to remember, we were almost touching 60,000 just a couple, what, three, four, five days ago. So when we take a look at this, it's just a mental way to look at things. And a friend of mine, friend of the show, Diddy over there at Bitcoin family, he says it very, very smartly. He says, when in doubt, just zoom out. And if we just zoomed out of what is going on in the market, we can tell that this is just one of those blips of the day. Now, what's great about this is it didn't last too long and we're already back to a recovery. But the real question is, what the heck is going on as far as what happened in the market? So actually, before we do that, I want to just talk about how yesterday I said that I really didn't care that Bitcoin was going down and the entire market was going down and I still don't care. So you have to understand that in the grand scheme of things, if you're a trader on positions and you're leveraged, you're going to care a lot. Right? That's why I don't trade too much. First of all, I don't think I really have the mentality for it. I'm mostly just a buy and hold guy. And when I see these types of situations come about and just like, well, you know, it is what it is and it'll just rebound and here we are. So what I talked about was I was going to buy the dip and I did. So when I see these dips happen, I will increase my dollar cost averaging by at least 20%, if not more, and just start to pour my money in as I see these dips and then the next day, the next day, next week, next month, usually, usually it rebounds and here we are. So if you don't, first of all, never take my advice. I'm not a financial advisor. This is not financial advice whatsoever. But if you did do that, your dollar cost average, you're feeling pretty good today. You're like, well, you know, if you got in pretty high and you dollar cost average, everything's pretty great. Now the next question is how did I do about what I bought? So we always want to take a look at how everything goes against as far as like in Bitcoin. So this is over at CoinGecko. I switched this over to not into dollars, but into how we would do if we just invested in Bitcoin. Well, if you invested into Ethereum, you're up almost 3%. If you invested in Binance Coin, BNB, you're up 7% or 88%. Over a week, Cardano, 15% for the week, 3.4 for the day. And on and on we go. Oh, hey, why does this always just kind of pops out? And then Uniswap, 0.2%, 0.3% for Doge in a day. Doge, 2.5. So when you're looking at these things and you're trading and you're doing all this stuff, some days you do pretty well if you go against the grain and don't put everything into Bitcoin and you go into the vaults, like a Cardano, like a Uniswap, like a Voyager, like those types of things. So it just depends on what you want to do. So just be aware of that is what's going on. Anyhow, let's jump into today's top story, shall we? All right. So first up, MicroStrategy buys more than a billion worth of Bitcoin. Time to massive holding. So I was watching this video over at CryptoZRS, George, friend of the show, nice guy. There's a lot of great reporting and he talks about, he's the one that talked about the F2 pool dump and what's going on with BitMEX and all their positions and these whales moving things around. And it is a shady thing, but it just happens. So it doesn't matter if it's shady or not, it happens. So you just have to pretty much deal with it. And that's it. So when I hear about people going, you know, this is totally different. Totally different now. Look, like I said yesterday, there's always going to be greedy people. There's always going to be whales. There's always going to be manipulators. So you just play the game and if they're going to manipulate and they're going to crash the price, what do we talk about yesterday? I said, nothing, there's no changes in the fundamentals. Nothing changed with Bitcoin. There was no double spend. Like I said, Satoshi Nakamoto didn't come out and it was RuPaul or something crazy. It just, it doesn't matter. It's the same thing across the board is true. So when there's no fundamental differences, there's no big hacks like a Mt. Gox and then what do you left with manipulation? So my question here is micro strategies bought more than a billion worth of Bitcoin. Smart move. There's what happened. Bitcoin paid an average price of 52, 765 per Bitcoin, including fees and other expenses. The total holdings of the digital token is now at 90,000, almost 100,000 for Bitcoin. So you have to ask yourself, and I'm not saying micro strategy is part of this manipulation effect that is for you to decide. I don't personally, I don't believe that, but I do know that they were Coinbase does pretty much their heavy lifting and they do all the micro transactions. So when, when they see all the things that are going on, when they see a huge amount of influx or dump of Bitcoin onto an exchange, when they see a bunch of whales that are, you know, just dumping all their positions, they know, and hopefully when you look at this, you should know, and I try to figure it out. It's like, okay, well, you have to take a step back and take the emotions out. Did anything change? No. Fundamentals the same. Yep. What really happened? Whales. And then you just had to sit back and go, what, what's my position? So my position yesterday was just to buy increased 20%. I didn't buy any Bitcoin. I already have my positions in that, but I bought a bunch of Cardano, I bought a bunch of Polkadot and I bought a heck of a lot of Voyager, which are the things that usually I buy every day. Anyhow, I just increase what I'm doing. And then today is a pretty good day. So when these things happen, just remember that usually it's just a bunch of manipulation that's going on behind the scenes. And remember that we're still pretty early and it's a pretty small market, even though we're at 1.4 or 1.5 trillion, it's still pretty small. Whales manipulate and that's just what's going on. Anyhow, that's what's happening here. I want to talk about this. This is the micro strategy stock price and you can see over a day, you know, just a little bit, not really too much, right? 737.40, 727. This is what's going on. Not really exciting, right? But when in doubt, zoom out, what do you want to see? Well, you want to see what's going on with the shareholders. Are they responding to micro strategy buying up the stock? Well, over five days, well, not so much. Look, we've had almost a thousand and he took a bit of a dump, 7.10, and this was just a day, probably 24th. So of course, as Bitcoin crashes, takes a little bit of a dump, what happens to micro strategy stock goes down, but how did it do over the last month? Not too bad, actually, as they started to, you know, increase their positions, they went from 540. That was their price. And in a very short amount of time, they increased their holdings of Bitcoin, their positions as far as like their stock went up to, wow, 1000, let me blow this up so you can actually see it. There we go. $1,272. That's amazing to go from, I mean, in the stock market, that's all, that's pretty crazy. So 540, this is over a one month period, 1272. Now we're down to a measly 765, not too bad. But remember, their first buy-offs or buy when they started to buy Bitcoin. If we take a look back at six months, that's what we're talking about. That's nice growth. And that is why micro strategy will continue to buy Bitcoin like crazy. And they don't care whatever happens as far as a dip because they know if they hold, they'll be OK. Now, this is what micro strategy is doing. Let's take a look at what Tesla is doing. So Tesla here, so I can get this in the right right-hand-hand angle, there we are. So Tesla, the darling of the traditional stock market, they have actually, there's a story here, Tesla drops as much as 13% turns negative for the year. So this is over a day and it went from 711 all the way down to 697. Well, that's great for me because guess what I do is I buy Tesla stock and I dial across the average into that too. So today is a great day for me. It was a great day yesterday. Let's take a look over five days. Yeah, this is around where I got it at. And you can see that as Bitcoin drops, so did Tesla. Right. Interesting enough because they put 1.5 billion. But let's just take a look over a month. Not so much about six months. Pretty good year to date. Yeah, up and down, up and down and over a year and off we go. So is this because that they bought Bitcoin? Well, some of it, but not really. It's a great company. They put out their earnings report has been pretty positive. They're doing a lot of great things. So Tesla is a pretty good winner here. But again, there was a gold bug. I will never say his name on the show. He is just a shill. That's just what it is. I just don't understand. I don't understand the point of gold bugs and why they're so and not all of them. Let me just say that. Not all gold bugs are like anti cryptocurrency. I own gold. I own silver. I just want to heck of a lot more Bitcoin. I just don't understand what the problem is. If you are looking to hedge your bets, your bets against the traditional market, why wouldn't you put it in the gold silver Bitcoin? I think that's the new savings plan in all honesty. So there was a back and forth between this gold bug and Elon Musk because of the positions. And he talks about how well now the shareholders are going to ride against you because of what you did. And after 24 hours, it went down. It's just a marketing ploy. Really, if you take a look at it, what are the shareholders going to say when Bitcoin goes up to 100,000, 150,000 at the end of the year? And the stock price skyrockets not just because of what Tesla is doing as far as pushing out all those all those great cars and vehicles and things like that, but also the actual price of Bitcoin. They're going to go through the roof and everybody's going to be happy. The real question, and this is what I, my question is this, what happens when there is a bigger dip, 30%, 40% drop? Because I know it's coming. I believe it's coming. Some people disagree with me, but I think it is the things we talked about. That'll be interesting with Michael's strategy. That's not going to happen because they're going to hold everything because Michael Seller owns the majority of the stock and Tesla. It's a bit different. So let me know what you think in the comment section about that piece. And let's move on to our next section. All right. So next up, if you go to poor crypto and your taxes can lead to trouble. This is mostly for Americans. So that's what's up. But I just want to tell you that people are getting audited already here in America. I don't know your tax laws over where you're at. Some people have it great. Some people do not us. And here we are. So what's going on here? Well, Catherine Howard, financial planner with Wilson Day, an investment said this. And this was a good point. I never thought about this. She states, just because in one year, an entity that paid you doesn't report that payments a year from now, when that when the entity when that entity gets audited and issues a late 1099 form, the IRS will expect you to have reported what you earn. So what is she talking about here? What she's saying is that if you have dabbled in Cryptocurrency assets, pretty fair guess if you're watching my big face right now, that you probably have at some point got into some type of cryptocurrency at some point, or a virtual currency as they as they as they call it. So if you don't report that, that yes, I have dabbled in or I have some. And then some one of the exchanges reports it or somebody that paid you in Cryptocurrency reports it or some service that you paid in Cryptocurrency reports it, not just, you know, two years ago, but says, oh, you know, we got to do that because we just got audited. And then here we go. Now you're on the hook for that. And that is never good. Take it from me, someone who has been audited before. You do not want to go through that. It's awful. It's, it's takes you out of your whole rhythm for what you're doing as far as your businesses. You're sitting down there with the IRS agent, you're pulling in all the different taxes and forms and receipts and junk that you're like, I don't know where it is. And you have to go back and just it's just awful. So just make sure you do things the best way that you can legally. And things usually work themselves out. So to finish this up, the IRS has put crypto front and center for this tax filing season, but high up on the first page of your tax return. There's a yes or no question is posed that says this at any time during 2020. Did you receive sales and exchange otherwise acquire any financial interest and any virtual currency? What they are talking about is this form right here. So in 2019, this question was on the form, but it was buried in the 1040s. Now let me blow this up so you can see it. It's pretty much front and center right here under the standard deduction. Very middle here at any time during 2020, did you receive sales and exchange or otherwise acquire any financial interest? Yes or no. So you have to answer that, unfortunately. So here's the thing. Just know that there are four times when there is a taxable event and just buying and holding cryptocurrency doesn't mean you will be taxed on it. That's not, that's not how it works. So the four times is this when you exchange crypto for another crypto. So let's say you hold Bitcoin, exchange it for Ethereum. That's a taxable event. If you take Ethereum and you exchange it for a stable coin, that is a taxable event because it's crypto to crypto crypto. The second time is when you, when you take your crypto and exchange it for cash. That is a taxable event. The third time is when you exchange your crypto for a goods or service, which is what I was under the impression I could do and not get taxed. And I was totally wrong because I was so excited when Tesla came out like, oh, we're going to, you know, you're going to be able to use Bitcoin. I was like, great, I could just use Bitcoin and not pay taxes. Not so fast. There's a good, so you have to pay the taxes on that if you use Bitcoin for a Tesla. Or if you pay like a contract or something for what they did in crypto, you get taxed on that. And the last one is if you get paid in crypto. So like if you're a miner and you get paid in crypto, you are taxed on that event. So those are the four times. If you just buy, sell and hold, if it's in your ledger, you don't have to, it's not a taxable event, but you do have to just still say, did you receive sell, send or exchange any crypto? You just say yes. And then in the rest of the forms, it'll tell, it'll talk about what you need to do. So in that situation, this is what is going on. But let me just tell you, I got this email last night and from a subscriber and he says, Hey man, I'm going through a 2008, 2018 audit because of my Coinbase 1099K form. They use any suggestions. So again, this is just what Lee was talking about. They didn't say it and maybe Coinbase didn't report it. And now all of a sudden they're going back and going, Oh, here's your stuff. Coinbase, huh? How about that Coinbase? So in this situation, what do you think is going to happen? Not good news. So you're going to have to pull all your information out. So you're going to have to go through everything here. So show them what you did. It's just a big pain in the a. So just make sure you get things going. So I will say this, if you have that come up, just use perpetrator.tax. This is, these are friends of the show and I use them. This will be my second year using them from the time that I actually signed up and did it, took me 30 minutes, went over my CPA, done. There's a link in the description. There's two links. Actually, there's three links. One is a link that'll show you exactly how to use it. I did a walkthrough guide. The second one is this, you can win a free tax report, unlimited, $300 value. Just go to this page, again, links there, put a first name, email, enter to win. They've drawn one every single week. And the last thing is if you don't want to wait, you get 20% off for viewers or Dan, just use that link and that is it. And then also, I will say this, if you were tired of paying taxes on everything, there's an option, which is what I use, which is iTrust, where I take some of my post tax money, I put it into iTrust and I buy cryptocurrencies and it's not taxed. So just to make this clear, if you, first of all, if you have a traditional IRA, old employer plan, like a 401K, a 403B, military TSB or 457, you can move a tax and penalty free over to iTrust. Talk to those guys over there. There's a link in the description. Gives you a discount. Go ahead and use that. Again, I've been using them for like 8 months now. And I maxed out 2020 and I just maxed out yesterday, 2021, where I put over a big chunk of money and I bought Bitcoin. Actually, what I, no, no, I didn't. Yeah, yeah, I bought a little bit of Bitcoin. I bought Ethereum, but I also bought a lot of Polkadot. And the reason why I did that is because, first of all, whatever the gains are from here to whenever I withdraw, they can't tax me on those gains. So Polkadot goes to $1,000 per dot, whatever it is today. They can't tax me on that because I've already taxed my dollars that I get from my businesses, right? So that's great. Also, in quarter two, iTrust, you're going to be able to stake your Polkadot and your Ethereum and all the different staking rewards. We'll go back into your Roth IRA or iTrust account and you won't be taxed on either. So that's why I try to max out Polkadot and Ethereum. I think they'll be big as far as staking rewards. All right. So that essentially is, well, that is pretty much it. I mean, lastly, I'll just say this. I'm going to be attending this event. It's a virtual one. But you got Mayor Francis Suarez, City of Miami, Senator Cynthia Loomis, Wyoming, and some other people, I guess. And it's all going to be about the great crypto transition. So I want to see what's going on as far as in the cities and local governments and in the U.S. government, what they plan to do as far as Bitcoin. So I'll let everybody know how that works out and what's going on. And that is it for today. So if you made it all the way to the end, first of all, thanks. I appreciate it. Once you hit the thumbs up, that really helped the channel and the algorithm. Also, if you like these types of videos, consider subscribing. A lot of things we talk about are time sensitive. And if you like this video, it will be two months going to pop up on your left and right, let YouTube do its magic. And that is it for today. So thanks for stopping by. I appreciate it. And I'll see you on the next one.