5 Companies DOMINATE the S&P 500. Will Manipulation Lead to Bitcoin Halving ⬇? ETHEREUM 2.0 Launch.
Welcome digital asset news take top stories in cryptocurrency digital assets and break them down into bite-sized pieces. Today we've got some pretty great stuff. I'm gonna give you three stories that are gonna be going over.
How market manipulation is destroying the actual traditional markets and what's going to happen to actually lead us to the net inevitable conclusion that cryptocurrency digital assets are not only here to stay, but they're going to dominate over the next.
Two to thirty years, so let's jump in first up claim. My recap: nothing's really going on to extravagant bitcoins up from 75 76 to 77 40s. That's great. If there's, just on that, just teetering it's almost out of 200, but it's drop a little bit and no one's really been a breakout, so that's.
How it is the S & amp, P, 500, a little bit up. I understand why but sure you know, unemployment rate is through the roof and all these new programs that are coming out are still lacking so whatever. But I think when we go into these articles, you're gonna see why all this stuff is happening.
What's really going on and what's going on behind the curtains and where this inevitably is going to lead us all to so let's, jump in to day right now. So, first up influential investor calls out market manipulation, the US dollar that can tell an effect and the Bitcoin factor in made a tweet storm.
So this is from Preston pish. He's, co-founder host the investors podcast now reckon I was like who's, this guy on this guy, so Preston pish a graduate of West Point great John's. Hopson University! He's, a founder of Buffett's ebooks.
com. His views on financial investing can be viewed by millions of people on the world. So great he's, one of those guys fantastic. So to me it sounds like he's, a buffett guy and he & # 39. S probably got some sound, investing tips to give us or sound investing advice.
I don't expect him to talk too much about Bitcoin and cryptocurrencies, but I was totally wrong. So let's jump in in a new tweet storm. The Bitcoin supporter joins a course of analysts who are pointing to traditional monetary policy and the massive pandemic inspired stimulus packages is a big balls of thread that are bound to unravel through a series of twists turns manipulations.
Pitch believes government's. Efforts to prop up markets and national currencies could trigger blowback social unrest, more monetary abuse and more wealth inequality. I cannot agree more as drastic measures unwittingly reconfigure the global financial system and spur a rush to alternative stores of value which could give Bitcoin legs.
The West Point of John Hopkins University grad, whose videos are investing at reach millions, also references the Cantillon effect, so we don't know it can tell in fact it pretty much goes like this all the big boys, all the big boys and girls.
They all get together and say: hey give us money and the Fed gives them money just like. We just saw right now when it first hits the very top that's when it has the most value and that's when they get all that great money which has all that value and they can do whatever they want with It but then, when it wrinkles down to the to the lower-class people and they get to it and they say, oh, we finally got this - those peanuts that you guys give us with these bread crumbs thanks it's, not worth as much as one Of those first big people got it that's pretty much.
The Cantillon effects in in a nutshell, tell me where I'm wrong. Tell me in the comments section that's, how I that's. What I got out of it so moving on fish says: investors are currently in the thick of manipulated market conditions.
He says: let's face the facts. You are not participating in free and open markets. So what's? An investor? To do here's, a couple of important aspects. I think people should consider based on the current environment.
First, I think it's. Important people realize global governments are providing large amounts of stimulus thanks mass amounts of stimulus. As you can see in this chart the train of steam US has been going strong for more than a decade and it's, not letting up.
In fact, it might even be accelerating. So what does it mean for stocks? Well, the date is meant that the consolidation of earnings power into the hands of the few check out this chart from lynn Alden, and this is gonna break into our next story.
We're gonna start to talk about the S & amp, P, 500, how it should be the top 500 companies, but it's. Not I mean it's. Really not it's, just it's, just five five makes up, you know a vast or a big bulk of it and the rest.
You're, just kind of teetering on the on the outskirts, so it's like what's, the problem or war, not what's, the problem? What's? The? What's? The point and yeah not only that, but it appears the consolidation - is especially advantageous for companies with intangible assets that are difficult for competitors to impair ie, Google, AdWords Apple, strong Network effect for apps Amazon's.
Ai software, which gets smarter with more shoppers and more data, etc. Throughout this period of time, which is the last 10 years value investing has been punished. I suspect the speed of which technology is moving is causing many of the competitive advantages of under capitalized companies to get eroded quicker than historical periods, and I couldn't agree more.
I just when I was growing up. It was all about taking your money and just slowly investing into it or saving. Remember that remember, just just save your money, it'll, be okay, just just put into the bank just put a nice savings account.
You'd, be good! Well, there's. The problem. The problem is that there's. The money. Has you get taxed a second time it's called inflation and every time your money just sits there and does nothing you don't it's like you're, not really saving it'S just a roading away: it's almost like dust.
So, as time is going on, I've, seen just how ridiculous that whole prospect is - and I see how the inequality is - has far-reaching effects throughout not just this country but around the entire globe.
All right, moving on pitch points, the Nasdaq which turned green on April, 6th and of the handful of tech giants again: Microsoft, Apple, Amazon, alphabet and Facebook, driving the quote/unquote growth and sucking the competition in their black hole and an accelerated pace.
He says. Well, I'm, not gonna read the whole thing, but he just says that look all these companies, for some reason are going green and it doesn't make any sense, because what we see that is happening with normal everyday average People is not mimicking what is happening with the actual stock market.
The stock market should be a relative indication of how strong the economy is and it's. Not the economy is stagnant. There's, nothing really moving at it and there's, just a downward spiral. The only that's really saving it is this helicopter money and it's time it's.
Gon na run out it's, going to be what I think is gonna be like a zombie market, because that means wouldn't really be produced. Gdp is going to go not just flat. It's. Gon na start to decline rapidly and it's, gonna be worse than 2000 2008 and maybe even 1929, the Great Depression, but that's, just my thoughts.
So let's just go down here to where it gets good. He says this break will either be complete social unrest due the overuse of quantitative easing and ubi or through the natural transition to a different form of money.
Ie Bitcoin a new gold standard or some Special Drawing rights that could somehow miraculously impose a peg to domestic Fiat, and I couldn't, agree more. We can see that well. First of all, I & # 39. Ve talked about this in my last three or four videos: Bitcoin cannot be the main world reserve currency right now.
It's too slow. If we just stop using the dollar it's, not gonna work like that. It needs to be faster, however, if it could be pegged to something, then that could be a whole new game changer. I believe it's, a great store of value, and I think, as time has gone on the reason.
Why is because I talked about before is his trust: it's, been battle tested and it's, trust as a currency that you can't buy and it & # 39. S been going strong for over ten years. Now it's; unhackable it's.
Fungible it's, divisible its deflationary it's; transferable it's accessible. I mean it's, a it's great I mean for what it is just that we can't. I don't, think we can use it for payments right now. The way it is, I think it would just crumble so moving on, he says.
Even if social unrest happens, first, it & # 39. Ll still result the need for a new form of PEG currency to fix the situation we are currently experiencing. Based on that, I suspect Bitcoin has the highest probability of succeeding simply because it's.
The option. None of the government's want, but it's. Also. The solution they can't easily stop, and it also poses a huge benefit for the first countries that would adopt it effectively. It imposes a tragedy of the common situation for nation states, central planners and fiscal appropriators, alright moving on moving down.
So, to sum it all up here's, what he says so basically manipulated markets here's. My conclusion I like Bitcoin and I like gold until the start of 2021. I see it like this and I said this last time. I see Bitcoin and gold working together and I said I go, I said: maybe it's like Batman and Robin I go now as many cents, maybe like Batman and Batman, and then someone goes knowing what it really is.
It's like Batman and Superman. One has good qualities that the other one is, but they're. Both awesome and I got ta agree. I like gold, been around for thousands of years. I think some of you out there that listen.
These videos, like gold as well, I think it's gonna be here, I think it's, a choice for an older generation or a generation that just takes a look at says. This has been around for a long time. I trust that Bitcoin this has been around for 10 years.
I trust that too, for we just talked about and yeah. If you can use them both. Why not? They're, both a pretty good store of value. So let's. Use both of them - and you know, use those together. He says to bond totally suck Greek 3.
A few stocks will work, most won't for commodities will be in semi-volatile, pish adds that expects bitcoin to start biting into Gold's. Market share in the early part of 2021, with Bitcoin suppressing its previous all-time high of 20,000.
I don't, think II said exactly when, but I can see that so Bitcoin or I'm. Sorry. Gold. Its market cap, is 8 trillion. 7 to 8 trillion, maybe even tan - I can't remember so I don't, see a reason why a Bitcoin can't take at least half of that just by what we talked about.
So remember what we just said in this article, because it's, gonna pay dividends. When we talk about the next one, so let's break into it. Next up, Bitcoin correction fears intensify as Goldman Sachs ones.
A chilling stocks downturn risk of a sharp Bitcoin price correction are growing as US stocks paint a similarly bleak market scenario. Strategists at Goldman Sachs found. The five largest companies now cover 20 % of the sp500 indexes market capitalization 5.
So what are they? Let's, just take a look, so they are Microsoft, Apple, Google, Amazon and Facebook. They collectively added four point: four trillion in the market cap gains since 2013, and the five largest asset B 505 that's.
It five companies are one-fifth of the whole market of the S & amp, P 500, that's, amazing, and that's also scary, the same time, so that is narrowed. The market breadth below levels that historically signal less than expected market returns, followed by Fuld moments and reversals analyst David Kosta noted that the breath fractal appeared ahead of recessions in 1990, 2008 during the slowdowns in 2011 and 2016 and in the tech bubble.
So here's. The troubles Goldman Sachs bear statement followed weeks of growing positive correlation between the US stocks and Bitcoin, and this was actually recorded by a believe. It's. Coin Telegraph yep her coin; metrics Bitcoin S & amp, P; 500.
Positive relationship has hit record highs currently on a scale of negative one to positive one. The S & amp, P, 500 bitcoins correlation efficient sets a record high of 0.1 seven, with some analysts suggesting that of Bester & # 39.
S are using bitcoins profits to cover their margin positions that's awful. So here's, my question: everybody: do you think that's? The case with all the reports that we've, seen such as grayscales reports saying that institutional investors are here in large numbers.
Do you think that these investors on the traditional market will start to dump at the slightest chance of the slightest hint of a reversal in the traditional markets? Do you think that would happen me personally, I don't, see any other way around it, and how do we know that institutional investors are here well, this was actually from greyscale their digital asset investment report.
Q1. 2020. We just came out a couple weeks ago: total assets under management, 2.2 billion just a little measly here's, their first quarter of 2020, the majority of investments, 88 %, came from institutional investors dominated by hedge funds, the previous 12 months.
The majority of investments - 79 percent, came from invested institutional investors dominated by hedge funds, so I personally believe that when the S & amp P 500, the Dow goes down. The traditional market goes down.
We're, also going to see that also go down with cryptic residual assets, because a lot of those institutional investors have a little ace in the hole where they can liquefy all their positions and take money out of this market and cover their other Positions in the traditional market, just my two cents, I could be wrong.
Let me know in the comments section moving on the analogy: treats the S & amp: P 500, move as a predictive indicator in the big market. That means that the us benchmark falls. It tends to prompt investors to liquidate their Bitcoin positions for short-term profits, leading to declines in the cryptocurrencies spot rates.
Again, let me know what you think. Meanwhile, Bitcoin remains negatively correlated to the u.s. dollar index that tracks the greenbacks performance against a basket of foreign currencies, and it makes sense the more people use a dollar and the less people probably use Bitcoin.
So I could see that the technical fit the gloomy trend of the US stock market place's, the cryptocurrency market at risk of a significant pullback, but experts believe that Bitcoin would break its short-term correlation with the S & amp, P 500, mainly owing To its distinctive factors - and this is from one of the Winklevoss twins Cameron - he says US dollars - global Unova count yet is quickly losing all accountability and credibility.
An alternative benchmark with a fixed and deterministic supply is necessary. Yeah I'm a Bitcoin and when I first read that I'm like well, of course he's. Gon na say that you know course is gonna say that, because he's, the Winklevoss twins and he owes Gemini's.
So of course he wants his. You know project to do good, but - and I sort of think about I remember when the when the twins said you should short Bitcoin and I thought that they had said that during the bowl around 2017 and I'll and I looked it up And I was actually during May 2018, pretty much when it wasn't doing the hottest, and so when I read that I looked at some of their other comments, I think I was wrong about them.
I think when I looked at it, I think these guys are just really they really believe in Bitcoin and they wanted to succeed. They want, I think, cryptocurrency, to succeed in general. So sometimes I'm, just not right.
Anyhow, moving on the cryptocurrency will undergo a scheduled supply rate cut in May 20 20, also known as be having, which is going to happen at the same time when the Federal Reserve will be over supplying their banking system with trillions of US dollars.
So there's, an expectation of scarcity of Bitcoin and that's. What I think I think personally, this is the ace in the hole, but the Bitcoin is gonna happen on May 12th around that time, so the day after May, 13th May 14.
Whatever it is, I don't think this. The prices are gonna skyrocket. It just doesn't work like that. It, I think personally, it's. Gon na go anywhere from six months to two years to where we start to see fireworks.
I'm gonna tell you why, so for those of you has seen this, I'm sorry, I just show it again for those who have not, but this is our first second and third, having's and it Breaks it all down by dates and increase as far as the price, so the first having the very first having Bitcoin, we did was in 2012, that was November 20 2012, and then it took one year to hit an all-time high on December 2013.
So on from $ 12 to a thousand dollars roughly, which is go with round numbers, because I'm - not that smart, I need round numbers that's, pretty good right! That's about 8,000 percent increase the second.
Having that happened in 2016, and then it took about a year and a half until December 16 2017 and it went up about 3,000 percent, so one from 650 to almost 20,000, that's, pretty good, so the first having was a year, the second Having was a year and a half something in the third having if it follows everything suit, maybe leave two years now I don't know if that's going to happen, especially with what's going on in the World right now with quantitative easing, it could be six months.
We could go instead of go on a year to a year and a half may just jumps back to six months. Maybe it takes 8, maybe next 9. Maybe it takes 2. I don't know, but I can tell you this: if you go from the percentage increase from the first one to the second one, that's about that's about a third ok, 3,000! It's around 8,000 that's about a third right, so we dropped this by about 1/3.
So we get a thousand percent. I think the date of the having the price of the having it's, not gonna be 10,000. It's, gonna be about around 8. Maybe so, if we go up by 10x 80 to 80 thousand ten thousand two hundred thousand, that's.
What I see conservatively, let me know what you think in the comment section: let's, move on and last up theorem 2.0 on the right path, as number of hot lers accelerates, so again, more good news. Now all that stuff we just talked about it -'s, pretty bad news for the traditional market.
I think it's heavily manipulated. I mean everybody talks about how cryptocurrencies are manipulated, but I got to tell you the biggest crooks and scammers out there. They're a heart. They're already over there on Wall Street, so they got nothing.
They got nothing on us. Anyhow, the theorem network theorem network is about to roll out theorem 2.0. Hopefully this is gonna go in favor of proof of stake, offering a new consensus mechanism that will reduce the network complexity, making it possible to execute faster and cheaper transactions.
So if you don't know if there's, gonna go from proof of work, saying these Bitcoin something there's. A lot of different cryptocurrencies are mined just a proof of stake, and they want to do that because they want to make things simple, fast or cheap, or all that good stuff, and I, for one, cannot wait for it to happen.
This is gonna be great. We'll, see how long it takes quite a glass node. There are currently a hundred sixteen thousand four hundred six addresses with 32 eath or more, which represent an increase of at least fourteen percent so far this year, making it.
This is a number of potential e 2.0 validators. So taking a look at this pic, let's blow this up, so I can't, see it all right so from September 2015. All the way to now this was the the increase of aetherium addresses with balances of more than 32 eath.
Why is that so important? Well, it's because, as laid out by vitalik, butyrin 12 out of aetherium, so that used with a minimum hold of 32 eath, which was 16,000 back in 2018, will be rewarded once aetherium switches to prove mistake.
And he says this in a tweet and 32 is a number that's been thrown around everywhere. So, even though now he is moving around it's, almost 200 bucks right and as really hasn't really stopped. As a result of the upcoming eath 2.
0 event, which is expected to take place in the next few days of quarter to this year, so april may june somewhere around there, but I will say this, so this is supposed to happen in key and q2 all right.
I'm, not holding my breath if you've been around for a while atheria m -- and card on. Oh, are notorious for moving the goalposts that's. Gon na happen. You know in this quarter like well, maybe quarter three well, maybe quarter one next year.
Who knows so? If this happens, I'll, be impressed. I mean honestly if they can hit their goal for once. That'd. Be awesome. We'll see, but so all this stuff is good. You know we'd like to hear about this, but let's get down to it.
How much am I gonna make how much this is gonna be worth to me? So I found this handy-dandy website called staking, rewards calm and it's, pretty cool. So you just put in like how much you have so let's say I have 32, we -- the and I do have 32 if, as a matter of fact, a little bit more than that and for three to eat, which is work six, You learn Wow, so you see wonder.
Listen. I got to tell you that's, not squat, because in 2017 one, if Durham is worth like fourteen hundred dollars, some around there, 13 14 or dollars. So if you take that times 30, what at 1420 a cell 42 like 43,000, so I don't, know 42,000.
It's. A lot of money now only sixty two hundred dollars, so 32 eath. If you have sixty two hundred dollars, just laying around sure, you know why not and what's great about that is so if you have thirty-two eath and you stake it, your monthly earning is gonna be about 1/5 of an aetherium or for The year four hundred forty-four dollars now that's at the day's price.
So let & # 39. S say that one aetherium gets to be. I don't know five thousand. I personally believe it's, gonna be ten thousand. So if it's, let's just say: five thousand, so one-fifth of five thousand, that's like that's a grand per month.
That you're gonna make not too bad, and that's. If you have 32 eath, so let's say right: now you get a little crazy and you have a hundred each and you stay call that so every month you would be making roughly about half an aetherium and again, if it'S five: twenty five hundred bucks per month that's, not bad.
That is not bad and all's need is around almost twenty thousand dollars, so the rewards gonna be about seven percent score, whatever else, and it kind of breaks everything down below here. So I'm gonna link that in the comment section below so look that's.
It. I know that in the beginning was kind of doom and gloom, but you have to understand that sometimes to make an omelet, you have to break a few eggs. Even if those eggs are the traditional market - and I don't - see any way that this traditional markets gonna bounce back anytime soon and be super awesome everything else.
I see it like a car accident. I do only takes a second to get into a car accident, but it takes a time to repair everything because of that SETI car accident, but we will see all right if you light up some videos.
They give me too much gonna pop up your left and right, and that's it for today. So thanks for watching see on the next one,