 Welcome visual asset news or Dan for short. My name is Rob and today we got to go over a couple of Issues I think is it gonna come down the pipe as far as regulation and we're gonna talk about what that means How fast it's actually coming and we're gonna hear from somebody who has their head in the game Senator Ted Cruz as he talks about the things that are coming down as far as regulation and what to watch out for Also, we'll take a look at the break even point for Bitcoin mining. Let's talk about who is DCG Digital currency group and then lastly we're gonna do a follow-up to the I trust question Which is what happens if I trust capital and coin base and or coin base become insolvent and the very end We're gonna do with the shield folio or the stone book giveaway So we'll do at the very end also a Q&A so the first things first The giveaway of course it will be at the very end This is the beautiful shield folio or stone book where you can write all your mnemonic phrases in Wish I would have this couple years ago or actually four years ago when I wrote down my mnemonic phrase for my Daedalus wallet lost It's and now 20,000 Cardano will never ever Be into anybody else's pocket because it's stuck forever. So again, we will check it out Also, if you don't win which chances are you probably won't but if you don't 50% off Starting on Thursday continue on Friday for anybody who wants a stone book or a shield folio to do all that great stuff Okay, so Speaking of which, why is there a big giveaway for shield folio? Well, it's because Thanksgiving's up and they're having a big Black Friday sale actually Black Friday and I guess great Thursday. I don't know and Some things that are come about as you go through To Thanksgiving dinner now, of course, not everybody's from America here here in America We celebrate Thanksgiving, of course, maybe expats across the way And of course you're gonna steal all your family members and they're gonna make funny Let's just be honest because you told your family members a little bit too much You were too ambitious about the prospects of crypto perhaps last year So you're gonna see this and it's okay. I know it's gonna be tough So you got two options, of course when this happens and people are Raging on you for recommending crypto and of course talking about crypto and Bitcoin and things like that You can just you know, say one or two things one You can say shut your lip and just pass me the stuffing or you can start to talk about some other things and Just if you're gonna get go down that That's a conversation We're just remind people and this is a good reminder for me to not just not just our family, but Just how much cycles come into play. This is from Alistair Milne Like I said his name right and he makes a good point He goes, you know everything happens again and again again. It's all cycles 2015 2015 everything and everyone is a scam, of course I don't know if you remember this but Ethereum all the Bitcoin maxis would say that the only reason that that Ethereum was around it was because it was a scam It was only to take money away from your Bitcoin. Everyone is lying and about to go bust I think that's is actually true right now especially with Genesis and and whoever knows what other other companies may be imploding Bitcoin is going to zero. I've heard that many times There's an eternal bear market a super cycle bear market, which we talked about now because I mean we are in a different cycle Now we're not in a endless quantitative easing or money supply. We only we only pump because of a scam FTX Regulators will destroy the industry, which we're going to talk about today. Just remind them if you're gonna talk about this go look Maybe I was a little bit ambitious last year But everything is in a cycle of learn that now and I think things will improve as time goes on Just like in the comm era and we saw a lot of businesses go by the wayside But Amazon and Google came out of that everything works out pretty well Also remind them that's you know, I'm here for the long haul I think Kripper's gonna do pretty well. I think it's a it's a game changer even senator 10 crews talks about it And just like we've seen in the different cycles of four years. It's the same thing repeating itself 2012 we had a having Then came an all-time high in 2013 dip reset same thing happened 2016 and 17 So they just happened 2021 and we're gonna have a having coming up in mark 2024, which isn't that far away and then Sometimes well actually so far it's always happened. We've seen an all-time high after that So just remind them that yeah, it's it's a bummer right now. It's a pain But I think there's better days than horizon. Okay, so that takes care of that little piece of sage advice. Let's talk about regulation so On this channel, I've talked about regulation. I really just want clarity. What's a security? What's a commodity? What's a currency? That's the big thing. It's I'm not asking for much Unfortunately because of FTX just like Milton talked about Because of that scam or that Ponzi, it's not a scam. We call everything. It's a Ponzi. Maybe it's not don't sue me If you have the money to sue me, I don't know FTX but Here we have here we start so it begins three US senators urged fidelity investments to end Bitcoin exposure on retirement plans So, you don't know for those gonna roll out Bitcoin Investments opportunities for for their clients. That's just you me Joe Schmoe and everybody else and Fidelity if you don't remember they've got I want to say 3.2 trillion assets under management So it's a pretty big pretty big squeeze to go through that But unfortunately senators Durbin Smith and good old Elizabeth Warren Wrote a letter to fidelity and investments saying do not do this because of what happened to FTX Now this is one of the things you have to understand FTX is not Bitcoin. Bitcoin is not FTX. Obviously, I think most of us know this but it is shocking to me just how little senators on Both sides the aisle don't understand exactly what it is. It's not that we collapsed It was because FTX collapse because it was essentially running a Ponzi. So this is Understood by the few not the many and you're gonna see it right here from senator 10 cruise from the great side of Texas Where I'm from and you know, just lay it out like this is what's gonna happen Here's the problem and here's where I see things moving forward So just take a listen. This is about a two-minute clip or so and I got to tell you I got a if you're gonna follow anybody I know you may not like senator Ted Cruz stance on certain things But on crypto, I think he's spot-on. So let's just take a listen to the interview quickly Happen with FTX on the face of it. It appears to be serious fraudulent And there's going to be Investigations there's going to be countless lawsuits and if there was criminal conduct Anyone who committed criminal offenses can and should be prosecuted You know, I got to tell you just listening to that. I just thought to myself Maybe I was a little bit too hasty in my assumption of what is happening here with with these three senators With Durbin Smith and Warren because they're saying and of course, this is a little bit biased over here on Benzinga Maybe what they're saying is I'll give them the benefit out. I'll give them the benefit out. Tell me where I'm wrong here Maybe they're like, look, we don't understand exactly what happened over here And before we go forward or we have other people exposed We want you to put the brakes on it and then hopefully come talk to us Maybe that would I think that would be the best case scenario. What's happening? Of course, everybody's laughing at me right now because they're saying Rob You are naive and understand these senators don't want any of it to go forward But I'll give them the benefit out. Unfortunately. I think it is a problem But I will say it is quite concerning that at least I mean Ted Cruz can get it pretty easily and say look that FTX isn't Bitcoin and Bitcoin is not FTX So we should be able to allow people to invest into it as massive potentials and a really great thing for Texas What he's talking about there. He's talking about job creation Senators and politicians love job creation and boy It is a boom over there for the different mining operations that it has done We're talking about a second and just of course job creation and of course what's happening with the electrical grid and doing the grid things So I think that's I mean as long as like a Ted Cruz alumnus Hilda brand Rep Tom emmerer and there's a couple other ones that are out there that can actually speak up for us I think we're in the we're in a good position and another thing. I will say is this I am glad That's here in the United States So Congress we have the Senate and we have House representatives Democrats retains control of the Senate however For the House of Representatives is it is favored towards the Republicans. What that means is that they can't ram Bills through now. You actually have to talk about things and let them understand and say okay Maybe this isn't the right the right choice here. So I see this as a potentially a good thing, but unfortunately if If time is has taught us anything. It's usually when something goes wrong and goes bad That's when regulation comes comes forth and it is the wrong because they try to really just Ram it in and it's the wrong one. That's why I was kind of pushing for regulation a while back When things weren't so crazy and we could actually talk to these regulators without them having to deal with the emotion of their constituents Coming to them and going I lost everything FTX You got to stop them. You got to stop Bitcoin. That wasn't the problem. The problem was lack of education Anyhow, let me think about that in the comment section and then this was another interesting piece same video actually I'll link this in the description below This is the break-even point for Bitcoin miners now this right here this gentleman This is Jason less excuse me of riot blockchain If he's a CEO and he's gonna tell us what the break-even point for Bitcoin mining is and this is a thing about Bitcoin mining I know people have told me that you know Celsius wants to do this and they want to you know Come out of bankruptcy using this method. I'm like, I don't know. That's the right thing So just take a listen here this again It's about a cash only about 30 40 seconds to talk about what Jason talks about from riot blockchain as far as the break-even point Let me know if you think it's a it's a it's a tough industry to be into take a listen What is your break-even point? at your facility are for Q3 so we just realized our Q3 results and All factors considered into our power strategy and cost of revenues our cost for Bitcoin was approximately $8300 that's great. Yeah, and then that that's a testament I really will attribute that to the power strategy and the grid balancing efforts that riot participates in we own large blocks of power and We are able to sell those powers sell that power back to the grid and stabilize that grid when demand is high So that's market forces dictating the allocation of supply not a master regulator great coordinator It's a very efficient system and by us taking that financial risk We you know both stabilize the grid and support our communities and get the financial benefit from doing that Yeah, so it makes sense to me. I mean $8300 is a pretty good price point. I think I can go pretty low some people were talking about 3600 300 900 dollars I'm not sure where those numbers come from but that is just again That is just one mining operation telling us that's that is their their break-even cost and what he talked about there as far as electricity is When the grid gets stressed here in well not here in Texas. I'm Puerto Rico in Texas and They're able to shut off operations and sell back or just really just not use the electricity and they make money So that would be in their cost basis So when we're talking about things as far as like the Bitcoin mining operation if you're pretty big and you do those things I think it's obviously more favorable to you But it just makes me nervous as far as like Bitcoin mining and the operation itself again That's not my my forte. Tell me where I'm wrong Bitcoin miners I'd love to hear from you, but there is one a couple of things to talk about first of all There's a reason why on the show we talk about the Puel multiple every so often and it goes back to Bitcoin miners What this metric is it looks at the supply side of Bitcoin's economy miners and revenue because Bitcoin miners They have to sell their Bitcoin to pay the bills keep the lights on right and of course It's very simple period of time and the value of bitcoins being mined entering the ecosystem is too great or too Too little relative to historic norms the PEL multiple is the upper red band to show and the miners is is super hot or the green one It's just a bit too Below and a value situation. So again, we take a look at the Puel multiple and we talked about this Numerous times also. This is part of the 2025 Exit strategy or it could be earlier. It could be later on I know but I'm taking a look at these and a lot of different different factors and the RVZ score Pi cycle top and some other ones But you can see that once things start to reach a higher point. Well, you know, these Bitcoin miners They don't have to pay so much. So, you know, they're at, you know, 6.59 for the Puel multiple It's been really high in 2011, but now we're a little bit more stable down here Anyhow, that they all seem to be all just like I don't know Bitcoin miners sell when the price goes up too high. They're in profit They're a massive profit when it gets in this red area Maybe you should think about taking some profits when it's down this green area like it's been for quite some time Maybe you could think about I don't know. Maybe picking up some Bitcoin. Is this the bottom? I don't know Nobody knows and we've got a crystal ball But it's just play the average play the probabilities and just go from there And also I found it interesting about riot blockchain, which is this Again about the business. I think it's a tough business to be in This is riot blockchain.com. They're they're fiscal operations. They increased the 2021 total revenue by 1000 plus percent To 213 million which makes sense because back then bitcoin price was pretty darn high And electricity costs were pretty darn low, right? They at 213 million compared to 12 million 2020. That's quite a hellacious amount of growth. However They still reported a net loss of 7.9 million 2021 So you'd get up 1665 but you still have a net loss as compared to net loss of 12 million This is for the fiscal year 2021 They were significantly impacted by non cash stock based compensation expenses Of 68 million and the unrealized loss of 36 million on impairment of cryptocurrencies They increased the hash rate Bitcoin on balance blah blah Maybe one of the reasons why they had uh this a little bit of a loss is they acquired winstone in may 2021 North america's largest bitcoin mining facility And commenced in immediate expansion 700 megawatts. So I mean that could be the the thing but I just again I look at bitcoin mining That's not my that's not my forte but I did Rolled down a little bit of rabbit hole and I started to think well, how big is is is riot I took a look at uh explorer dot btc.com. We can take a look at the pool distribution again a little bit differently I was just curious to see how things were because I come back I come from the day when china was uh, just crushing it as far as like pool distribution, but not anymore I don't know if you guys have realized this. I mean, some of you have and some of you haven't but Foundry usa that's the bulk now. That's where all the bitcoin mining is done foundry usa Then you got an pool and binance f2 pool via bitcoin and some other stuff I don't know what they are So I was like, well, who's foundry because I'm not mining. I don't really know you can click on here brings you to Foundry their website foundry digital You scroll down a little bit and it says right here as a dcg company Foundry taps unparalleled institutional expertise digital currency group dcg interesting so you click on that Here's dcg. You know who dcg owns and is part of it as far as tentacles Genesis and grayscale and coin desk moon and trade block, but I just found it interesting that This is their subsidiaries genesis, which is the top which is on the chopping block right now They're looking for a billion dollar bailout. Don't know if they're gonna get it and grayscale Of course, we covered yesterday where coinbase came out and said yes, they do have Those proof reserves. We're just not maybe the addresses trust us And of course there's a video yesterday with me and jerry hall excellent video. Thank you jerry for coming on Just makes me a little bit A little a little nervous about what's happening. So let me just think about that in the comment section interesting and lastly My job here is to give everybody the truth And calm some nerves and call out things when I see him And uh, my job, I know people say don't spread fud. That's not my job My job is to make sure things are accurate. So there was a question that came about Because I have I trust capital I use it as a Roth IRA a lot of questions when I had Uh, I had kevin meloni CEO on not too long ago And kevin came on also david kemmerer from uh crypto trader or coin ledger, excuse me from the tax service Which is a good, I mean the bullock rate services. I love them. I like them But the question that came up is they said first of all because kevin was talking about For custody because remember this is a Roth IRA and this is the big question I had that everybody should know Where is our crypto? Is the co-mangled what happens if you guys go under because that's the same thing with ftx so The thing that we talked about of course where the revenue generation is from revenue generation, of course is from fees right one percent That's what you got to pay Yeah, but they don't do other stuff But the other question was what about where's the custody and what if you guys go under because that's what happened ftx And voyager in celsius. Let's be honest. I was talking about them So I put out a tweet. So this what's going on. There's a link. I put him in also in the description from their terms and conditions Also the uh, well the faq also linked there. How are my crypto assets stored and secured? So How are they stored? We utilize a third party custodian. Who are those fire blocks in coinbase? The other question was well, how do you tell or how do you allocate that? It's like 60 40 50 50 and the answer really is is as things come in We just move them to the ones that we deem fit and go from there And they're both in cold storage. So it's not like it's like a precise one But they keep them in one of the two but the thing that question was people were scared about coinbase What would happen to my ira and assets if i trust capital and Or the custodian coinbase We're to go out of business The custodian i trust capital maintain a business continuity plan to address business wind down and account transition When a wind down is required clients retain ownership and control of their accounts. So again, unlike Celsius which screwed us You're going to be able you of course you always retain control of your assets With sales is some other players. It's like no no those assets are ours as soon as they they got over here kind of a jerk move whatever Uh, so you retain your assets and we require you will be required to transfer their funds to another custodian if There was an issue Client assets are never mixed with operating funds. I think that's pretty important Which is what you know really gary ginsler and the whole gang should have been looking out for As far as with spf and ftx. Oh uh fun fact The sec was investigating uh ftx for months before this whole thing went down Would have been good for them to pull the trigger just saying Anyhow client assets are never mixed with operating funds and therefore are not available to satisfy the obligations of i trust capital Or it's custodian meaning we can't do anything It's yours all you got to do is something happens to us with our business itself. We go under You have to your assets are still there. It's in the cold storage, which is coin based custody Different than coin base you get the access to those and but you have to move them to another provider Whoever that is Do you lend against my assets? No, they don't lend against assets. They never takes custody Storage digital currency or store by the custodian using an institutional crypto wallet cold storage And precious metals because you can buy gold and silver which i did are held the the royal canadian mints physically But they're managed via blockchain distributed ledger Uh, who is i trust capital regulated by i trust capital the software platform allows clients to buy and sell crypto precious metals blah blah i trust capital is on exchange custodian or trust company license broker together or investment advisor and they're not Regulated as such so if they go down well, they're not regulated by anybody. However, remember Your funds aren't with i trust. They don't keep them in their desk drawer They send it over to coin base custody or fire blocks The custodian is regulated as a state chartered trust company. Therefore subject to regulatory oversight. The question then becomes Who watches the watchman? Who is the regulators for coinbase? Well, if you go to coinbase.com forward slash legal I think I'll link this in the description. If not, let me do that now Let's see Coinbase legal there They are regulated as a money transmitter by all 50 states money transfer money transfer money transfer And that's pretty much how it goes. Maybe not new york. Oh, wow. They are new york money transmitter Okay, so there's that and then to finish this off. This is the big one FDIC insurance and I learned my lesson with voyager on this one. I think we all did FDIC federal deposit insurance corporation insurance applies to dollars usd assets held by us FDIC and short banks remember dollars FDIC has nothing to do with crypto and digital assets. You cannot do anything with the FDIC As far as the requirements to back up bitcoin or ethereum or tomato coin or whatever you have It's only for dollars. So if you hold dollars in your Roth IRA FDIC And it's intended to protect your money in the event of a bank failure It does not protect your your money or assets from losses relating to your investment decisions or market conditions So FDIC insurance of usd health and client accounts Isn't the role max on your considering so if you hold dollars For some reason you hold dollars in your crypto roth IRA. I mean you can And it's not Outside of throwing possibility. You will lose that if they go down. However, you're crypto crypto, which I think is what most of us have That's coin base and fire blocks and that's where it goes here. There's no intermingling. There's no nothing like that Now having said all that could they be lying? Yes Because nobody's Perfect and and we'll like Sam Beckman lied right to our face. I'll excuse the camera to show live right to my face This is what they're telling me. So the thing you have to ask yourself is this Do I want to go forward this? Is this within my risk tolerance? Do I want to do this? Well, this is what's been laid off from this is the information I have and if you still say no, I don't don't do it I'm just giving the information that I have and I will tell you this. I am still using it trust Full full full transparent. I've used one of two years think if I have like just a little under 6 000 Because I can only put 7 000 in per year. That's it That's it So let me just think about that in the comment section if you got more questions I'm sure you do I'll answer them in the q&a now. Let's do what you're all here for Well, for some of you, I think most of you are just here for the for the dan community And the wrenches Let's give away a shield folio. Shall we? It's a good idea rob. Let's do that so Shield folio I do this Blindly I'm going to copy this. It was a great website called twitter picker And I I do this like every blue moon this light recently load the tweet And then that's it. So let's see Winner one must follow you have to follow me. It's okay Picture description Twitter count tweet count Let's just say 50 the account age At least a month you should be around your month latest tweet within the past month because it's November that makes sense and uh, let's go and continue Who look all these people 180 people? Uh now we will draw it And begin the drawing Well, look at that. That was fast At dp clutch Who are you dom Dom congratulations. I just it's a weird. That's a crazy picture. So dom. I just followed you. So don't if you're if you're trying to scam me and you dm me With what something looks like dom. Uh, it goes to my dms, but the ones that are unofficial So I don't mean read those so dom since I follow you you can dm me directly I'll get your information. I'll send you out a a uh, a stone book shield folio and off we go and That will conclude it for today for the news and the giveaway all the good stuff I will be doing more shield folio giveaways. I think they're worth it and also We probably should do another ledger We probably should do another ledger giveaway. I'll do that. Uh Maybe this week. Yeah, maybe this week and that's it. So look if you got to get out of here get out here It's been 27 minutes have been here for a long time. I appreciate you if you want to stick around We'll do the little q&a. I'll answer all your burning questions the best my abilities go from there But if not, thanks for stopping by appreciate it now Let's get into it the q&a