 Welcome to Digital Asset News. Take a top story as in crypto, current digital assets, and break them down to bite-sized pieces. Today, we have one main story, which is going to branch off into two or three different ones. And what it talks about is that JPMorgan, yes, that JPMorgan offers three reasons investors should consider Bitcoin despite its unconventional and highly volatile nature. This is pretty shocking because JPMorgan has been not the advocates of Bitcoin, we would say as far as cryptocurrency assets. But hey, here we are. We'll talk about that. We're going to branch off into a couple of stories. And also, we're going to do a follow-up to my exit strategy. We're going to talk about some new exit strategies that I have for different cryptocurrencies and digital assets that I made a prediction on, as well as what I would do when I actually cash out. So we'll take a look at that. But first, let's just take a look at what's going on with the market. So today, it is Saturday, January 23rd, 11 a.m. on Paso, Texas time. Beautiful day here in El Paso. And what do we have? Well, Bitcoin has taken a little bit of a tumble, as it always seems to do. But it's a little bit of a rebound, I should say. So 32-2. We had gone all the way up to like 41, and then we had dropped down to 29. So hey, 32-2, I'll take it. That's pretty good for what I would consider to be this next big bull run as far as 2021. Ethereum up 1.5%, holding strong over 1,200, so I'm happy with that. USDT, nobody cares unless you're an auditor. Pocodot, 4.3%, and 34% for the week. Fantastic. And then XRP, watch out, almost peg the quarter. Great for them. Cardano, what do we got? 0.1%. It's up to 34 cents. And then we've got 12% for Lincoln. Really, everything's just kind of up across the board. What's this? 13.86% for Ave. Ave is one of those projects, those D5 products that people have been talking a lot about. I've been talking around it for a couple months or so. And again, I said the same thing every time I go past Ave, which is, I really got to get Stanley on this show. But of course, I've been talking to him back and forth. Just haven't had the time. But I will definitely get this guy in there to talk about what they are doing. And from what I've heard, it is really fantastic stuff from people on the inside, like things that are going to blow your mind. So Ave, those are the ones, that's one of the tokens that I've added to my portfolio quite a bit of time ago. So I'm pretty happy with what's going on. So that's really what's happening. Not too many, 7.8% for Uniswap. Hey, Uniswap is almost up to $10, not too bad. Celsius, still a little bit below $5, not too shabby. What else is great? 2% for Ave. Avalanche. He won't talk about Avalanche about how great it is. I need to take a deep dive into it. But sure, could be great just like the rest of the other million projects out there. So that's what's going on. So let's just break in today's top story. I found this fascinating because JP Morgan, like we've talked about before, they have not been a big advocate of what is going on in our crypto space. But all of a sudden, it just seems like everything has turned the corner and they're like, you know what? It's great. It's fantastic. And that is amazing what price action will do. All of a sudden, people become the true believers. Now the big question is have they been doing anything behind the scenes as they've been publicly bashing it? That's always the question that I have. I think it's a lot of the questions that a lot of people have on this channel, which is what are they doing behind the scenes? Because it's pretty amazing that they turn the corner this fast. But here we are. So they had actually sent this as a newsletter out to all of their investors, all the people that they talked to, all the people that are within that JP Morgan family. And that is good for us because that means it is a social proof method. JP Morgan is saying, hey, we think you should allocate some funds into Bitcoin. And as we all know, Bitcoin becomes that gateway crypto and then leads into Ethereum and to other things. So that is good for us. I don't care what they said before. It doesn't matter. It's irrelevant right now. All we want to do is be cheerleaders for JP Morgan, just keep pushing that information out because we love to hear that. So this is what they said. It's pretty good actually. It says, why bother considering an unconventional and high volatility hedge? There's three reasons. Equity and credit valuations look record rich for a very young business cycle. Conventional hedges like DM bonds barely serve as insurance when the US 10-year rates are near 1%. That's awful. And some as yet unseen shocks, which whatever those could be and they kind of lay it out, higher inflation, economic debilitating cyber attacks, climate catastrophe, what have you? And that's one of the things I've been talking about here on this channel, which is we don't know what's going to happen as time goes on. We look at the four-year cycles, you know, 2012, 13, 14, 15, which was the halving all-time high dip and reset, same thing happened 2016 and 2020. So we should have the next four-year cycles, but who knows? Who knows? We don't know if there's another economic catastrophe down the road. We don't know if there's another pandemic just right around the corner for whoever knows what's going to happen. So this is why I talked about my egregious strategy because you have to protect yourself and your family. And you got to make sure that you're doing the right things. And that's just what I'm going to do, not financial advice. It's up to you. But JP Morgan head right in the head, they're right. So JP Morgan also asserts that small allocations to crypto assets can improve portfolio efficiency due to higher returns and their tendency to move somewhat independently of the traditional market. Debatable, but okay. And I say it's debatable because as more institutions get into the game, those institutions now have their feet in both waters. Some have it in cryptocurrency assets. Some have it in the traditional market. So when you have those big guys like a mass mutual, which is, you know, an old school insurance business, or you have something like MicroStrategy, where they're like, hey, we're adding it, we're adding Bitcoin only to our treasury. Then of course, those guys are going to hold it for a long, long time. So when people talk about, well, this cycle is different. Yeah, for Bitcoin, I think now for the other ones on the other side, what about the altcoins? Well, hedge funds get into that into that game. And hedge funds, their job is to make their clients a ton of money. So if they have to short something or long something, sure. So I don't know what that's going to do as far as in 2022, when potentially we see a massive dip, are they going to keep holding on because they're true believers? Or are they responsible to their investors? That is the big question. I don't know the answer. I don't know if anybody really does. And we'll see how it all plays out. But again, take your profits when you can. And that's just what I'm doing, not financial advice. All right. So then it says, however, the firm predicts that the directional correlation between crypto assets and the traditional equities market may increase as the sector sees mainstream adoption. So before we move on to that, when we take a look at like the traditional markets about people going, you should just allocate a little bit of money into it. That is the best thing that we can hear about because it's not like we want these traditional markets to go, hey, take 100% of everything that you have and stick it right into a Matic network or something crazy like that. That would be irresponsible. We're just looking for the small gains. Cryptocurrency, just like football, I think is like a game of inches. And really, if we can get these guys to be on our side, then 5% here, 3% there, 6% there. Before we know it, we're off and running. And we are in the trillion's plural market cap. And that's what's happened. Actually, this is one of the stories I want to talk about with Jim Kramer. Jim Kramer had talked to Anthony Pompliano on his podcast. And it seemed pretty set up, but it made a lot of sense because he's like, hey, I don't really understand Bitcoin. So tell him what's going on. And Pom did a great job. I mean, pom-spom, what are you going to do? So he told me exactly what it is. And Kramer, not really understanding a ton of it. He's like, all right, sounds good. I'll put a little money over there. So recently there was a jackpot winner for $731 million. Good for that person. Congratulations. And the reason why I'm like who is because usually when people come into that much money, usually in like a couple of years, they're either dead or broke. And you can watch any kind of any kind of documentary on those types of things. But yeah, hopefully take some sage advice. And one of these sage advice is Jim Kramer saying, hey, don't invest in anything that has any risk for the vast majority of your newfound fortune. Who needs risk when you're already rich? And that makes sense to me. Like for you out there sitting here, you're probably going to be a crypto millionaire. I mean, you're super early. If you just sit around for like five, 10 years, probably going to happen. So the thing is, is like, don't invest into something goofy. Just, you know, play it safe. And then times on your side, it's better to be a time in than the timing, as my friend Mullet would say. So that is the one part. But then down here, he gives some pretty sage advice, which was this Kramer also recommended putting 5% of the lottery winnings in a Bitcoin, which some investors have been heralding as a terrific inflation hedge that rivals gold. Amazing how they've been saying that because Bitcoin blew past its all time high and doubled it. And of course, you got now these big investors. Now we're suddenly like, oh, that's a genius move. Of course it is because of price action. It's amazing. People like winners. People like winners. And that's just really what it comes down to. So Bitcoin's a winner for right now. And they love it. But they sure do turn on it as soon as that thing rockets down, except for us. Some on Wall Street have even suggested that cryptocurrency could largely replace gold. Oh, I hope so. Because the market cap of gold is around $10 trillion. And if we just hit half of that, that's $5 trillion. That could be at least $300,000 per Bitcoin. Who knows? Anyhow, so finishing up with this story, in November, JP Morgan revealed that deep pocket investors may be ditching gold ETFs for Bitcoin based on vast differences in the volume of demand for gold ETFs and grayscales Bitcoin trust. So two things. First of all, we did this story before about people who were dumping gold. And a lot of people in the comments section were saying, well, some were saying that, yeah, this is only paper gold, ETF gold. Nobody's going to go down there and dump their physical gold, which was interesting because in the comments section, I had actually people who owned physical gold and said, I've dumped physical gold for cryptocurrency, which makes total sense. I mean, if you're looking at the best performing asset over the last 10 years, it's Bitcoin. So I mean, gold does great. I own gold, silver, and Bitcoin. Just I owe the heck of a lot more Bitcoin right now than I do gold and silver. So if you're looking for asymmetrical returns, I think cryptocurrency will be the way to go. If you're looking for a hedge against some huge disaster and where we go into like Mad Maxville, Thunderdome, everybody for themselves and just a huge nastiness that could happen, gold's your bet because gold doesn't go up a ton, not like Bitcoin, but it is a story of why it's worked for thousands of years. So that's why I built. I don't see why gold bugs are so up in arms. Doesn't make sense to me. And then last thing here, it says the banking, oh, no, sorry, excuse me, the grayscale Bitcoin trust. Just real quick, I want to make make mention of this, is that for the longest time, the grayscale trust for Bitcoin has been like the gold standard for people who want to invest and pay a huge fat premium. But what recently just happened is that the premium for grayscale just recently in the last couple of days has dropped below 10%. And it was a pretty good article because it talks about the rate comes just weeks after the premium peaked at 41% pro the end of December. And I was saying myself, I'm like, well, how much premium do people have to pay to get to Bitcoin doesn't make any sense. This is the discount or premium to the actual value. And right now as of today, well, roughly today, it's at 2.79%. That's one of the lowest, almost of all time, even this one's 3%. So we were all the way up here at 40% dropped all the way down. What happened? Well, first of all, two things. Why do people pay a premium to hold Bitcoin? And this is another story that we covered. There was the second richest man in Mexico. And in 2013, grayscale actually came to them and said, hey, you guys want to invest in Bitcoin? I don't know what that is. What do you got to do? Well, we'll handle everything. We'll custody it. You just got to pay us the money. And then you can make returns of whatever they promised or whatever they said. I'm sure they didn't promise. And he's like, yeah, sure, I'll do that because I don't have time to mess around with this stuff. That's what rich people, that's what really rich people do is like, hey, I don't have time to mess around with this credit investors. They don't have time. They don't have time to figure out a nano ledger. They don't have time to get hacked, like what happened with nano with their basic information. They don't have time to like figure it all out. They're just like, I got a ton of money, make it more money. Sure. And they pay a premium for that. And they come out ahead. It's amazing. The biggest advantage in the world is to get rich is already being rich. That's unfortunately how it is. So why is this happening? So that comes down to, let's see, seven days, January 1st, the drop rate. Yeah, Dickerson, this decreased, this decrease. And this is what they're talking about, the actual decrease of the value. So it went from 40%, all the way down to 2%. This decrease indicates the sale of shares by some investors after the end of the freeze period. And when I was talking about, I forgot that guy's name. It's not Carlos Slim. Carlos Slim was the richest man in Mexico. I don't know the second guy. But the second richest man in Mexico said he bought in 2013, but there was a freeze period. He could not sell it for so much time. And he said he really wanted to as it went up in 2013, but he wasn't allowed to until 2017. And that's when he sold it. So the question I have is, what is the freeze time for Grayscale? Because that would be an interesting prospect to look at. But what people are doing is the freeze period's over, they grab their Bitcoin and they sell. And that's just how it is. Also on top of that, other factors such as retail demand leveling off after the recent Bitcoin dip, as well as competition from rival products such as 3IQ or Osprey's Bitcoin Trust could be behind the drop. And again, this is competition. So for the longest time, Grayscale's been the only game in town, but that doesn't always happen. And now they have competition. So of course, the price goes down a little bit. And then on January 20th, but there is some bright news. January 21st, they took in $25.5 billion worth of assets under management. So congratulations to those guys. And then this was the last thing I want to talk about on this piece. Grayscale has filed for six more trusts, including Chainlink, Tezos, Liverpeer, Decentraland, Filecoin, and BAT, basic attention token. So if I was looking at things and I didn't have the inside track to what these guys do, I would start to look at these projects and go, why are they investing in Chainlink and Tezos and Filecoin and basic attention token and one called Decentraland. I know why they're investing in Decentraland is because they've been doing this for quite some time actually. And that might be a huge play because they believe that virtual worlds will be the future. We'll see. Very long play. And then let's see here. And to finish up with this article, the banking institution posits that if Bitcoin is able to capture, okay, of gold, we just talked about that. So let me know what you think of the comment section. Again, this was this was a pretty good article about JP Morgan, but it has ramifications, you know, going out to all these different stories about what's going on throughout cryptocurrency and digital assets. I think it's going to be a great year 2021. So hopefully all we have to do is just hold on, which leads me to my next point. So I did a video. I did a video where I talked about my exit strategy. And the reason is because I don't know what's going to happen. Again, my story is 2017, I held too long. I got in near the top and I'm going to bag holder for quite some time. But I learned my lesson, which was at some point you have to take profits and you can't hold it forever. You can't hold it forever. Here's my question to you and answer this in the comment section. Seriously, do you think that cryptocurrency and digital assets will go up forever? Will the price appreciate forever? Will the price of Bitcoin go to $150,000, which is my prediction, to $300, $400, $10 million, $25 million, $100 million, $1 billion, $1 trillion. Obviously not, right? That wouldn't make any sense. So the question you have to ask yourself, well, it's not going to go up forever. Then what's the point of keeping it forever? At some point, don't want to cash out. And then a lot of people will say, well, I just want to do loans. I'm just going to take a loan against my cryptocurrency. And just real quick on that one. So loans, you can do that. But just remember that these loans you're taking against your crypto, like if you have one Bitcoin, and you say, hey, I need one Bitcoin worth $30,000 right now, roughly. And you say, I need $30,000. Okay, well, they're not going to give you one to one. It's usually like one for two. So you have to collateralize your Bitcoin. It could be one and a half percent in some places, maybe like a BlockFi or something like that. But if you want the best rates, it's usually like a 4x. So let's just say double, right? So you want $40,000 because you want to pay off something. Okay, sure, give us two Bitcoin. So if you do that now, what happens in next year when the price of Bitcoin, the value of Bitcoin in dollars starts to go down? Well, you got to pay back that loan. What happened at $40,000? I paid off my car. Well, okay, well, if you can't pay off because the value has gone down, you know, 60%, like it does sometimes, you're going to pay us back or you're going to get liquidated. So what do you do now? So we had actually talked about this in a video. And it was the cash out alternatives. And I talked about, you know, different things that you could potentially do with that. So check it out. But one of those is instead of when you cash out, you can put your money into stable coins. So just to back up real quick. When I talked about these, my exit strategies, it was all based on my price predictions, because you have to kind of figure out like where things are going, first of all, and then kind of work from there. So these were as these are the most realistic and conservative numbers I could potentially come up with. Again, this channel isn't here to hype everything up and go, you're going to be a billionaire tomorrow. It's that stupid, and it's irresponsible. So these are the most conservative numbers that I could come up with. So what, so I did with that, I put those all together. You can see why I did those, I'll link the video at the very end. And then I also came up with a probability like how much I think this is actually going to happen, zero is a snowball's chance in hell, it'll ever happen. And 10 is like, I am almost 100% sure 99.99% chance. I believe this is actually going to happen. So when we did that, so like with Ethereum, I think it's going to 10k. I think it's going to 10k in 2021. Some people say it's going to, I don't know, 30, 40,000. Some people say it's just going to go to 5,000. But I think it's going to be 10k. I think that's pretty realistic. So what I did was I go, there was a negative strategy before I just said to make it simple for everybody, here's the 80-20 rule, which is you're going to sell 80% or I'm going to sell 80% and I'm going to hodl the other 20%. So you can do whatever you want to do. This is just a down and dirty, super simple way that I figured I would do it for my ego strategy. I had another one, which of them were complex, so I just kind of made it as simple as possible. So again, if I had 100 Ethereum and all these numbers that I have, this isn't what I actually have. I could have more, I could have less, but it's, you never want to tell somebody like, hey, I got a ton of this or I got a little bit of that because that leaves you open for hackers. So don't tell people what you have. So let's just say I had 100 Ethereum. I picked 100 because it's a round number. I'm not good at math. So 100 Ethereum, I figured 80% I'm going to sell, which means I'm going to sell 80 Ethereum and I'm going to hold on to 20. So again, if I had to break that into five pieces or five sell points, I just go, so I'm going to sell 16, 16, 16, 16, 16, which would equal 80, right? I'm going to sell 80, 20, and I just pick some price points. So I said, well, if the probability is high, I'm going to skew it to the higher side, 10,000, 9,000. And I did a video on this. I don't want to bore everybody so you can go watch that video. But what I did was I did this with the Ethereum and I added two more. Here's the theta exit strategy. And here is the Cardano exit strategy. And again, if you go into any one of my videos in the description down here, it's going to say exit strategies. It's just going to say one exit strategy. And when you go there, you can find, whoops, wrong one, you can find all the exit strategies that I just talked about right here. And that's open to the public. You just can't make any edits. That's the big thing. And then, so the question that I'd never really answered, which was, what are you going to do when you cash out? Because you're just going to take that money and do what? Just sit on money, which is, you know, could potentially go to zero. I don't know what could happen with the US dollar. I don't think it's going to zero. But I thought, you know why that's a pretty good one. So if I do cash out, I would do a number of things. First of all, I'll be investing into the things I like to invest into, which is land and property. I think the biggest things you can do is not hold on to money, but hold on to assets. Assets are good, and they usually appreciate, especially land. Especially you've got the right land. And homes are great, especially with rental properties and Airbnb. Once we start getting, you know, vaccinate people left and right, people want to travel like crazy. So they're going to want to stay in one of my homes that I can rent out. So sure, I'll do it like that. But the other part I could do, which is what I will be doing, is that instead of cashing out to dollars, I will cash out into stablecoins. So first of all, if you're looking for a good place to hold your stablecoins when you cash out, in the link of every one of my videos, there's something that looks like this. Where'd it go? Right here, the exchange and wallet recommendations. There's a link right there. It'll take you to my spreadsheet. And my one-two crunch is Voyager Broker. It should be Voyager Broker. I'll fix that later. Anyhow, Voyager and Celsius and all the different exchanges I've ever used and I recommend, and ones that I do not recommend, which are all over here. So if you want to sign up, there's an affiliate link just so you know that you don't have to use those affiliate links. But if you do, it helps to support the channel. But you can go right to the website. But if you do use the links, you get between $10 and $25 depending on which one you sign up for. And then right here, what I just did, I updated it today, if you scroll down, you can see all the interest rates between Voyager Broker and the wallet app. So between Voyager and Celsius, you can take a look at all the different interest. So it's like Bitcoin. For Voyager, you get 5.5%, just for hanging it on there. And then this for Celsius, if you put in Bitcoin, like I have Bitcoin over there, I can't earn in Celsius. So if I could, I would get 6.2% in Celsius rewards. But since I don't, I get 4.7% rewards in Bitcoin, which is not too bad. But the big thing I want to show you is this. If you're in the tether, I'm not in the tether. But if you're in the tether, they don't support it at Voyager, but in Celsius, you get 13.86% paid in Celsius or 10.85% paid in tether, annual percentage yield. That's pretty good. And then also for, where did it go? For USDC, here it is. It's 8%, which is pretty good in Voyager. So I mean, if I wanted to cash out and started just putting in the cash, I can put in the USDC, it's, I will earn 8%. And if I want to go over to Celsius, it's going to be 13% in sell at 10.85% back in the USDC. So it would just be growing and growing, growing. So hope that answer your questions. On some, when I cash out, I believe in diversification. So I will put some in the cash and I'll put it into assets such as land and houses. Also, we'll go to support the other business that I have, which is Amazon FBA. So I'll be putting in that in the products because I can turn those over in two to three months. And then also, I will be putting it into stable coins because I can earn interest. So it just depends on what you want to do. And again, I will just say this, Celsius usually has the best interest rates, usually, usually it does. And Voyager has, so so. But the reason is because they are partners. If no one knew that, Voyager and Celsius, they partnered together to gain yield. Usually it's just Voyager piggyback enough for Celsius. But when I buy things through Voyager, I sometimes get too lazy and I want to transfer over. So I just leave it there. I still get interest. So pretty good. Better than Coinbase, just saying. All right, so that was a long one. I apologize, but it's a lot of information out there. And this is one of those years that I think it's going to be pretty big. So thanks for watching. I appreciate it. Just so you know, all these different news stories and different things I talk about, they are pretty time sensitive. So if you'd be so kind, hit the like button and subscribe, which I usually, I need to start remembering to ask that. I never remember until the end. So try that out. And then also if you like types of videos, I mean, two months going to pop up on your left and right, and I'll let YouTube do its magic. And that is it for today. So thanks for watching. I appreciate it. And I'll see you on the next one.