 Welcome to digital asset news to get top stories and crypto current digital assets and break them down to bite-sized pieces today It's all about a follow-up to a story We had covered a couple of days ago where the CCP or the China's Communist Party had shut off electricity to miners residing in China and we're gonna go over and quickly Reexamine the Pompliano podcast which featured Brad Garlinghouse the Bitcoin mining map and concentration the hash rate and how it was Affected and finally how the SEC and the US government at large sees China as a verifiable threat as they start to dominate digital currencies Also a follow-up to the gold story that we had done just a couple of days ago Where we talked about how people were dumping gold to get into Bitcoin and the whole thing about this was that people were dumping gold And it wasn't just physical gold. It was ETFs But we're gonna take a look at Raoul Powell when he's talking here to Michael Saylor where he pretty much states Exactly that it was physical gold on top of Subscribers who are gold owners who have said that they are doing that exact thing which is dumping gold And lastly, I'll tell you a quick story about how I lost 20,000 Cardano and we'll go over all that before I say let's go on the market So tonight it is December 3rd It was 6 50 at night and yes, I am recording this before tomorrow And the reason for that is we are leaving Houston going back to El Paso, Texas For businesses and whatnot. So we have to take a a day-long trip, which is about 10 11 hours And I just wanted to pre-record something for tomorrow's video. So tomorrow Bitcoin could be up to 20,000 or it could be at zero. I'm just kidding. It's not one of zero, but right now on a Risk Thursday night. We're looking at 19 five. It's up 1.6 and 14% for the week And again, we had just looked at a story about PayPal how they were buying up Bitcoin at a massive rate on top of square on top of grayscale and That's just those those guys not to mention the retail investors So I just don't see how this price can go down in any way shape or form Also a theorem 2.0 is going on with how to hitch looks like things are going well So they're up 3.7 XRP watch out 63 cents not too bad 19% for the week can't beat that Ted is almost at 20 billion. Wow, that's crazy like going again like going holders You got some strong hands if you held that for the whole time you guys are up big time So good for you guys chain link up to 14. That's a bummer. I thought I would go up to 15 But hey, I'll take the 14 in Cardano's up 2.8 20% for the week And I'll tell you that great story about great story great story to tell you guys not a great story for me lost 20,000 card out what a bummer and then some other crypto currencies that are Fantastic I own some of them, but I want to delve on this. Let's just jump in the stories today Huh, so first up. This was an interesting story. We covered days ago, and this was actually November 30th The China's Communist Party came in and said hey cut off all electricity and Bitcoin miners We want to deal with them and I said I the whole reason for this is The CCP they can do anything they want to right and they will do it and they pretty much control everything I mean, I don't think anybody can can really dispute that people that live in China told me People that are have connections over there have told me and it only makes sense that they do what they want to do and they rule In with impunity so that's what they can do and any miners that reside in China, of course any mining pools that were done in China Of course, they're doing that and this is one of those stories So this all comes down to also a pretty funny exchange between Anthony Pompliano and Ripple's CEO Brad Garlinghouse where it's just like five seconds. I had to play it I always laugh when I see it but it's pretty good. Do you think the Chinese Communist Party could if they wanted to control those four miners? No That's always funny I mean every time I see that it's a hilarious because Brad's like you think you think you're so smart You're not so smart, but it's just it's just a pretty good one and we talked about this in the last video I don't want to beat a dead horse But it was an interesting exchange and there's a lot of a lot of variables and it's not just a cut and dry case It just isn't however, I will say this if you look at the the Bitcoin mining map This is where all the hash rate resides from and you can see there's a pretty large portion here Asia a little bit of stress South America North America not too much right here But you can just see right here as we scroll down the hash rate the majority 65% is coming from China the United States is Way behind at 7% hopefully layer one you can fix that that is a mining organization That's up popping up in West Texas where I'm from or where I'm at actually and We'll see how it all works out, but yeah, China does have the lion's share now remember that is mining pools and Individual miners can connect to those pools and they can change anytime they want to so There are miners in the US That's connect to these mining pools in China. There are miners individual miners that Connect to, you know, wherever they want to go and that's just how it is So but right now the top four pools are definitely in China because they have the cheapest by far Electricity I think it's a lesson of one cent per kilowatt hour and that was given to them essentially by the government They said hey, we're going to reduce the cost so you guys can mine well now what they're doing, of course Is they're saying hey? Shut it down. We don't want you guys here Which is a pretty crazy thing to think about imagine the government came to you and said hey We're gonna give you a loan To make shirts right great and there are these great shirts and you're having a great time everything's good And then like you know a couple months later. They go hey Want you to give us back all the money and we want you to sell those shirts for a penny and We don't we can't make any profit and we want you to essentially just go out of business. That's what's coming on here I mean, it's a loose interpretation, but that's the problem and it's just a very odd thing And I think the reason that I saw this happening is because with the digital you on coming into effect and the success that it's had Across the country and they're in the different provinces. They don't want any competition So why would they want another type of currency that is harder that is better is decentralized That is not what they want they want to control the narrative and that narrative is a digital you want So Bitcoin you got to go and they want it out of here and they just don't want to deal with it I that's that's how I think it is if they wanted to destroy it as people talk about I think they would Really try to super concentrate everything, you know, just make all these miners, you know Give them even less per kilowatt or like maybe like half a cent You know point two five and say mine all you want to bring all the miners in here And then when we have just the right opportune time when we have which they do have 65 percent Let's just crash the whole network and however way that they can do that I don't know if they can actually do that do that because there are some miners that do Definitely watch what is going on at all times. They have a monitoring system So not for sure that they could do it, but people say that they could so okay I personally don't think they can do that honestly, but I will say this Brad smart and He's almost like a politician. He has these talking points and if you've heard him make the rounds He says the same type of thing about China and it's just an accelerated narrative of what he's already talked about He's first. He's talked about look if you're gonna talk about climate control global warming That's going to play negatively into the Biden administration because they're going to go after those types of industries then he starts to talk about how this China controlled currency is a Detriment to USA and then they really need to take a look at it Do you really want to support a Chinese currency? And he says these things a lot a lot a lot and it really starts to sink in it's a great marketing ploy Really it is whether he believes it a hundred percent or not whether you believe a hundred percent or not It still works out pretty well because guess what happened now US Intel official says hey, we can't allow China to dominate and he's talking about digital currencies, so They're gonna the first part was with with Bitcoin and now it's gonna go into CBDCs But it was a great idea Just to say that we need to attack this in this specific situation And it worked out great and now he's got the ear of the US government It could really all come down to that or it could come out of something different But it was great and we'll go over that in a second But the one thing that I wanted to go over was the hash rate So you have to understand that when these miners shut down This is good for other other miners that are out there they can say hey, we don't have that competition in a whole province of China because they can't mine because they have no electricity and That's good for them. So the whole network will self-adjust because the less hash rates you have the difficulty Starts to adjust a little bit downward So it's a lot easier for miners to mine Bitcoin when the hash rate starts to decrease Which is the same thing that we saw when we had the halving Before that, you know miners really working really hard then after the happening for you know a couple of months or couple weeks or however long it was they had to shut down because they just weren't profitable and That was great for all the big corporations or big entities that do the mining signal great We have less competition and the difficulty rate is down. So this is fantastic for us. Same thing is happening here So I just took a look at this is from blockchain.com and you can see this is November 24th And you can see there's pretty massive dips here about what's going on with with the miners But there was a massive dip here and remember second and then we're pretty much taking a pretty good high right here Never 21st now we see a dip. Here's the 29th. Here's the 30th and that's the day when all the electricity was shut off to these provinces So you would think okay, that's what happened We're gonna see a drastic fall in the hash rate Well didn't happen like that because December 1st and today it is December 3rd, right? So there's always like a lag of like a 24 to 40 hours, but it actually increased a little bit. So Again, this is actually good because then you can distribute this hash rate power to all the different miners all the different mining pools And it actually works itself out. So that part's great Now let's get into a problem and the problem is is that US government is now really looking at this is like Hey, this is a national security issue. This is one of the topics that I brought up if you're gonna have one country Who is doing so much of the mining pool of Pooling all these miners together. That's a lot of power No matter how way any way you shape it or slice and dice. It is a problem. So what's going on here? Well, the director of national intelligence John Ratcliffe Contacted SEC chairman Jay Clayton regarding the matter which he's talking about CVDCs and Bitcoin and a senior intelligence official told the Washington Washington examiner for their details There are serious national security concerns about Chinese control over Bitcoin and Ether So beautifully played Brad was making the rounds. He was talking to people, but it's not just that They have a lobbying group in Washington Which is one of the things that the kudos that I give to Ripple to actually put that forward and actually go to these Legislatures and go and say hey We have an issue. We want to get Blockchain Cryptocurrency digital assets Into the the public consciousness and have you guys vote in this? Here's what we'd like to see and they open the discussion, which is great But doing that they can bend the ear and go look if you want to deal with a Chinese cryptocurrency Which is Bitcoin then be on be my guest whether that be right or wrong or whatever else else it is It's again. It's a great play. So the bottom line is that we cannot allow China to dominate the technologies And innovations that are going to decide who runs the world for decades to come from AI to digital currency and everything in between And when we're talking about AI and we're talking about cryptocurrencies and blockchains and we're talking about the actual What is going to run the world? We're really looking at the Industrial revolutions. So, you know, you have your your agricultural Revolution which is in the 1800s then you have the industrial revolution 1920s 1930s You had the internet revolution in the early 90s and 2000s and each stage of those Different countries started to take effect and really take power America they got into the industrial revolution and took over and then from there They also made a great play and went to the internet revolution and they dominated that now Who is going to dominate the next one with artificial intelligence with blockchain and these digital currencies? That is a real question because that's gonna what's gonna term who's gonna run the world in the next 20 to 50 years So Ratcliffe's concern relates to the fact that 65% of Bitcoin miners located in China. This is the exact same thing that we just looked we just took a look at He says but what of a nation-state attack could the Chinese government have a worrying influence on Bitcoin? Through these miners the worst case scenario is that the government seizes all of the mining equipment and they definitely could do That any time but even in that event the repercussions are limited as pointed out by Bitcoin engineer Jameson loop Bitcoin network operates well enough that any suspicious activity is immediately detected. I beg to differ on that one I don't think that every single miner it is monitoring what's going on I think things could you know actually happen and they'd be like what happened because you know They're gonna mind a block every 10 minutes Hey, if things get reversed or transactions get flubbed, maybe they miss that that block may go on again I'm not a miner. I asked I asked boss can boss coin He's not a youtuber to come on guys really busy hasn't made it yet, but hopefully he gets on here But they say Caesar of these mining resources would only result in short-term outages That would see the equipment rendered and ineffective and I think he's talking about a mass scale What we just saw actually was good for a lot of minors like we just talked about so I think it was actually it was a good thing and we just saw that that hash rate actually increased But what about central bank digital coins and general innovation here? China has more influence only because it is taking steps to innovate the country has already run multiple Research and development initiatives leaving others behind and that's the truth and this is why they're doing it Chinese Premier Xi Jinping has been a fintech a key area of his agenda as they're as revealed by the digital Yuan's documentation and that 300 million figure is indeed impressive for the short time that the pilot has been Active, but that's the overall strategy to it includes logistics administration and smart cities So what they know? They're like look if we can lock this down as far as blockchain technology because he's even come on said like look I'm not about Bitcoin, but I'm all about blockchain and they're going heavy into it So and they're also doing that and research a new artificial intelligence if they dominate that China Dominates the world and that is a fact Jack lastly Goldman Sachs predicted that digital Yuan could reach one billion users By the end of the decade, it's not too far away at the current pace of China's competitors That could very well be the case. So I mean if we think about 10 year increments As I get older time just goes by like in an instant So when I see about 10 years, I mean 10 years to start to dominate the entire global landscape It's it's an obliquem and I and it can happen a lot faster than you know, we realize So that is what is going on with Bitcoin miners But looking at the entire global picture, it's a much bigger game and there's a lot of at stake And let me know what you think in the comment section. Let's move on. So before we get to how I lost 20,000 cardano This is just a quick follow-up to the story. We did a couple days ago about gold being put into Bitcoin This was a quick Interview from it was Rao Powell to Micro-Strategy CEO Michael Saylor and in here Raoul, we already know that he's actually taking all his gold and put it into Bitcoin, which is pretty ballsy move, honestly I don't think you should have done that. I'm not gonna do that. I still have gold. I still have silver I still have Bitcoin. I just have a lot more Bitcoin than I do golden silver because there's just more upside potential But what you're gonna hear here is people have all had told me that no, no, no Nobody is getting rid of their gold bullion. They're not taking out their their safes. They're not melting it down They're not physically bringing it in and I'm here to tell you here's a couple points where that's not true People are actually doing that. So just take a listen $250 trillion worth of stuff. This is not about gold, right? Gold fixed income sovereign debt cash Equivalence every other treasury assets got a negative real yield What am I gonna buy with it? No, there's no other asset to buy with it And that's why I got into the irresponsibly long thing and then I just looked everything and said, right fine You can trade around this stuff, but it's anything you actually want to put a real position in for an extended period of time There is only one thing I can really say, you know, I've got gold and a storage vault So I'm like I've got gold and a storage vault So if you had a golden storage vault and he got rid of all his gold, you know, we did have ETFs He still had to sell his physical gold. That's that's all I'm saying. So there's that and it's a pretty great interview But it's long. It's like two hours. But in one of those Michael talks about How he just doesn't doesn't respect traders. He goes, why would you trade this asset? It is so valuable. He goes It's going to shake up the whole world. It's gonna control everything. He goes You don't want to sell any of this. He goes, you can take a loan out on it He goes, but don't sell any of it because it's you know, the things you're selling it for are worthless And I thought that was pretty good point So there's this piece here and then and a subscriber Brian had actually sent that to me and he timestamped everything So thank you Brian. I really appreciate it. I got to tell you I've got a lot of smart really dedicated subscribers So I thank you for watching right now and for for you commenting and for you sending me stuff I appreciate it, but Brian says hey on top of what he sent me goes a lot of people are definitely selling physical gold and silver And rolling those dollars into Bitcoin. I'm one of them I've sold off 7,000 ounces of physical silver over the last three months Sell order emails attached sure and reallocated those funds to Bitcoin My friends have made the same move with their physical gold and silver holdings people are underestimating the outflows From metals to Bitcoin cryptos just another legacy sector denying obvious changes coming so really I'm just gonna say like this I would think that if you saw the upside potential for Bitcoin You'd be like wow well gold can't go up 10x, but Bitcoin can and also a theory we can go up You know 20 30x and also v-chain go up a hundred whatever it is right you might want to say I'm gonna you know decrease my position in gold and then go this other way is is gold bad No, I own gold I own silver and it's like the ultimate hedge. It's been around for thousands of years So I think if you're looking to you know really hedge your bet and you know get into all three I always say that that the new savings account is gold silver Bitcoin. I know said gold bugs who have come on the channel They hate my channel because I'm always talking about cryptocurrencies, but I don't really Tell them the whole story and that is that there is still a place for gold There is it's not gonna go away. It's been around for thousands of years We still still be around when I'm gone and I still think there's a place for it However If it's all about what you want to do with it And I think if you're looking for those asymmetrical returns and you have to take a hard look at Bitcoin and get into it I just don't see any other way around it But let me change the comment section and let's move on so real quick as I play this video in the background I lost 20,000 car down on the way I did it was because I had written down on a nice piece of paper the Daedalus wallet the test net the test net passphrase and I'd written those 24 words down and I put it in a because I used to just put everything on pieces of paper and This was like one of my first Wallets that I had because Binance was this is back in the day when Binance used to let Americans on and then they said no We you're not gonna allow you to so that's where I got my first cardano So I had to take everything off and the only place I could find to put it was in a Daedalus wall But that was in the test net So I had a bunch of different papers and I could have sworn I put them here in my Houston home And when we came back three weeks ago, I was looking ever for it. We could not find that paper I found it for a lot of other worthless Worthless crypto currencies, but they're all gone and if I just would have known about shield folio I would have which is where I have all all of my passphrases now I actually have two books one is at my house in El Paso And the one is in a safety our security box in my bank because I have them all backed up But the one that I never did was cardano because I knew I had it here in Houston And I would get it back, but I've been over there for like nine months because the coronavirus and it's gone And you you can't get it back because remember this is the Daedalus wall That was in the test net and once it went live to the main net I was like, I'll get to it later. Never never did never can and it's gone. So cautionary tale Get a shield folio It's it's if you use my link in the comp in the description get 20% off I use them their grades like like you just watch the video. It's the tear proof and Waterproof it's not fireproof, but you know pretty pretty darn tough type of booklet And it's just right there and it kind of like just reminds you so don't lose 20,000 cardano That's the big story. All right, so that's it for tonight I'll be traveling tomorrow, but I'll see you guys on Saturday and that's it So thanks for sticking with me through the whole video. I appreciate it If you like these types of videos me too much gonna pop up on your left and right Not sure what YouTube do their magic there and that is it. So thanks a bunch I'll see you on the next one. Bye