"CRYPTO State of the Market; What you need to know today ---------------------------------------------------------------- Get the insider info on crypto investing! Join the INNER CIRCLE: https://www.boroncap.com/cryptoinnercircle Text “info” to (817)771-0615 or email info@boroncap.com for more information on investing in our crypto hedge fund ---------------------------------------------------------------- There are approximately 16,000 Cryptocurrencies; they all run on blockchain technology. But their utility serves different purposes. But how does Crypto work? Why is it valuable during this digital era? With the bearish Crypto market, what should we do as investors? There are a lot of ups and downs in the Crypto price currently that shows its volatility. These short-term little swings, don't let them fog your vision. There's too much bullish fundamental news. Keep in mind that a market with good fundamental values always finds its way to the top and wins. Always look at the long term. Learn more about Bitcoin updates based on fundamental and technical analysis. Join our weekly live show to learn more about Crypto!
KEY TAKEAWAYS:
00:00 Intro
01:45 The opportunities in Cryptocurrency
02:10 Is Crypto verifiable?
02:50 What is Lightning Network Chart and its importance?
03:14 Growth of Cryptocurrency
05:45 Cryptocurrency similarity to Apple
06:40 Cryptocurrency volatility in different states
08:00 What is Cryptocurrency Layer 1?
08:45 What is Cryptocurrency Layer 2?
09:10 Coin vs. Token
09:25 Cryptocurrency analogy
10:00 Bitcoin vs. Cryptocurrency differences
12:07 Cryptocurrency analogy as an internet-based company (Google vs. Facebook)
12:45 Does Crypto have the ability to create a diversified index for investors?
13:35 Cryptocurrency Market Cap update
14:30 Bitcoin Dominance dropped
15:50 Global Market Cap of different asset classes
16:55 Technical Analysis
18:20 Downtrend broke down at 44.5k
(Daily Timeframe)
19:00 Bearish divergence on the RSI
19:30 Will Crypto break or hold the bullish trend?
21:00 Don't get stuck in volatility
23:34 How to start investing in Cryptocurrency?
#bitcoin #boroncapital #thesolomoninvestor
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Get the insider info on crypto investing!
Join the INNER CIRCLE: https://www.boroncap.com/cryptoinnercircle
Text “info” to (817)771-0615 or email info@boroncap.com
for more information on investing in our crypto hedge fund
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*Other Episodes of The Solomon Investor Show CRYPTO ADDITION*
Kazakhstan. Crypto Mining. Market Crash. Is it time to SELL?
https://youtu.be/-IhRNDLOezQ
What the smart money is doing now (plus 2 top alt coins)
https://youtu.be/80iRH-4nfjI
"Crypto Volatility is just Opportunity" -here is HOW to USE the Opportunity
https://youtu.be/cyomRHxueBs
How to Secure your Crypto in 7 Steps
https://youtu.be/kWt680Ns0Ms
U.S. has $3.6 Billion in Bitcoin!? Russia makes BTC Legal and Inflation soaring
https://youtu.be/bXsgi2Nc64A
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-- DISCLAIMER: Past performance is no guarantee of future results. Any historical returns, expected returns or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses. No communication by Boron Capital, LLC Inc. or any of its affiliates (collectively, “Boron Capital, LLC™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Nothing in this episode is intended as an offer to extend credit, an offer to purchase or sell securities, or a solicitation of any securities transaction."
0:17 All right, this is the Solomon Investors show. This is your state of the market address. We've come every single week to you showing you what's happening right now. And what we're doing in boron digital in our hedge fund for cryptocurrency. And as you guys know, there's a lot of craziness happening right now there's a volatility. But the problem is all that volatility is on the front side, it's the soap opera, it's the actual things that are pulling on the emotions of the stories and the narratives on the front. Today, what we're gonna do is we're going to take you to the backside, behind the scenes in the back office, what how does it actually work? How does cryptocurrency actually working? And why does something have value and what holds its value? So this is going to be brought power packed and got some really important information from some really important individuals. And so Jeff, Austin and Zack are with me today. And we're going to break this down for you guys. So Jeff, we'd love to hear more about the opportunity like what's in cryptocurrency? Because as you guys know, the main thing that we're hearing is that people are hearing the buzz people are hearing there's there's something about it, they realize everything's going digital, but they're not really getting the right accurate story. So what's the opportunity in cryptocurrency?
1:49
I think there's an unbelievable potential. I think the the biggest narrative right now that's making a lot of sense for even people that didn't consider crypto is more of an inflation hedge, since, like you were mentioning, everything is verifiable. And that's the cool thing about blockchain technology is the fact that you can verify exactly how much bitcoin is released per day. And when you can predict supply, you can also properly somewhat predict demand, as you can see from certain metrics that will pull up so I'll show them just number of like active that versus something like that we like to see as well is just is this growing or shrinking? is the number of people that are actually using Bitcoin is that going up or down, and we've continuously seen demand go up as supply has been getting cut in half every four years, which is obviously a recipe for price appreciation. Another thing that's really, really cool that we've been looking at is the Lightning Network. So if you guys are unfamiliar with the Lightning Network, it is a network that's helping Bitcoin scale. So one of the problems with Bitcoin is it's relatively slow, it does about four transactions per second, it was built to be slow is built to be secure. But people were wanting to use it as a currency like El Salvador. So I'll show you just how pair about parabolic this growth of Lightning Network. As you can see, since 2021, it has been exponentially growing. And that's been, it's primarily being used as a payments rail, which gives people opportunity to use Bitcoin, literally in a coffee shop. So you can use your phone and pay for a cup of coffee with Bitcoin, because this allows Bitcoin to transact much quicker. So I'd say that it's starting to first of all, using as a store of value asset, then considering the amount of value that's going to come from actually using it as a currency is some you know, El Salvador starting to experience that Arizona was talking about making it legal tender, Colorado just is talking about using it for for taxes this summer. So it's already starting to be used as payments as an asset. And then there's so much value. On the other side of things, which a lot of people call all coins. I really just call it programmable money. They have a lot of them have, we like to look at layer one blockchains. There's so much potential with that because of the versatility of smart contracts. And that's a way that you could go really, really deep into the use cases behind that. And I think that's the thing that really opens people's eyes is when they start to realize this is not just a store of value asset, potentially a currency but it's also like programmable money like you were talking about. It's like Amazon, it's it's technically it's just a huge technology companies what a lot of these blockchains are so I think when people started to go dive into it, they start to realize how immense the potential is.
4:44
Yeah, I love the direction you went with that. And I mean, understanding there's 16,000 cryptocurrencies, the realization is that the majority of them are actually a currency and in to their don't have a blockchain Now blockchains were obviously everything's built on less than value. And you know, what? What people have to really understand is that picture that like you mentioned everything software, so if we can like just turn everything in our mind a software like Apple, it's a software company. And they have a platform called the App Store and Bitcoins, a software that has a platform called the blockchain in the App Store, you know, an iPhone has apps lots of different businesses and Bitcoin has a blockchain is a platform with lots of different businesses. And as you're talking, you know, smart contracts from you know, in real estate from escrow and the actual deeds being filed, you know, the courthouse is like the the dinosaur now, I remember back you know, a decade ago in a real estate transactions, they literally no scanning no digital, you just literally put the files, you know, in the in like a library type setup. And then they falling know, you know, last eight years got into scanning it making a digital and obviously, now that's obsolete and everything will get moved to the blockchain. So from that to crowdfunding and derivatives and private equity, and E commerce and voting and ownership and title records and health care, and so everything's going there. So yeah, opportunities endless. Love that. Zack, you want to share some more on kind of big picture and what's happening some other states?
6:39
Yeah, and you know, just to Blake's point, and maybe in a minute, we can break down kind of layer one, layer two inside of crypto so people can understand the difference of utility there. But as we're looking out, right now, obviously, there's a lot of ups and downs in the price. And we're seeing that volatility. So I think people become worried and they wonder whether or not this really is the direction where things are going. And I think that as you zoom out, and you actually look down at the news right now, it's it's endless news stories on a day to day basis, not just in the US but globally. of you know, El Salvador's wanting to raise another 4 billion in Bitcoin bonds. You've got. Jeff mentioned, Colorado, you've got Arizona, you've got Texas, the mining in Texas is growing significantly. You've got New Hampshire, you've got I mean, it's endless. I mean, it even came out that the Fed should own Bitcoin on balance sheet. We all agree that everybody should own Bitcoin, whether or not the Feds going to do that, I think, a whole different story. We're not going to get into that today. But you know, I think that to your point, Blake, for those of you that are watching, understanding that there's more to what this is then just a basic, you know, investment protocol. And I think, you know, maybe Jeff Rossen if you guys could, could jump in help everybody understand the difference of like, what layer one is what layer two is? Yeah, sure. So, layer one is a protocol that is its own blockchain. So, a cerium, Cardona, even Lunesta, Elana, a banks, Ave, you name it. These are all layer ones. So they hold they are their own blockchain. And they're powered by the coin that is used for the gas fee or governance that each one has its own set of exact rules. But the point is that layer one is the actual base layer protocol for the blockchain. And layer two are projects that are built on top of that, of that blockchain. So like the most common is a theorem, which is the layer one and then any project that is built on top of is a layer two and even these new, most of these NF T's these are layer twos that are on top of layer one. So another thing to easy way to to separate these is a coin versus a token, a coin is a layer one where it's on blockchain and a token is a layer two where it's a protocol built on top of an existing blockchain. Yeah, and I appreciate the way you broke that down. And so I think back to Blake's example, when he's talking about, you know, your iPhone or Apple, well, Apple has a base layer that then apps can build upon their program. Right? So just from a conceptual standpoint, for those of you who don't like need a visual means the same type, you have tons and tons of businesses that are built through the app store using Apple's base layer, but in blockchain, you have a whole nother additional security, programmable space through the blockchain technology. Now, one thing you know, Austin and I were visiting about yesterday, Jeff and Blake, we're we're talking A lot of people kind of missed the mark with their understanding is they look at Bitcoin and they look at crypto all as one single asset, like it's the same thing. It's competing with each other. And you got people that are consistently trying to evaluate, say, one crypto that's, you know, layer one, say a theorem to Bitcoin, but they're two completely different things right? So the comparison is different. You've got Bitcoin, which really operates more on a monetary, monetary policy type of asset class in the financial space. But then Aetherium working as a layer one is is more like a tech company. Isn't that how you described it, Austin? Yep, that's exactly right. They share a common underlying which is their run on blockchain. But there's their utility is a totally different purpose. And it is, I mean, Bitcoin is King Bitcoins, dominance is the largest and have any coin in the crypto market so and bitcoin does kind of decide the direction in general the overall market but to say to just group them together blindly is not fair at all, that these coins are developing technology that are innovating almost by the day. Why, while bitcoin is still for 11 plus years now doing its thing, it has never had any kind of pretty much no hiccup at all, and has just been securely storing value over time. And these other coins just share that same underlying blockchain, but are serving different purposes.
11:40
Yeah, and one thing, kind of translating back maybe to an easy, relatable idea is just because something's built on blockchain doesn't mean it's the same thing. Right? Although blockchain technology is incredible. And we believe in it, you've got to look at what is being built on the blockchain and how that represents where you want to allocate your time and your investment. And so that's something that we spend time doing is processing the allocation with inside these spaces. But as an easy visual, I then think back to the idea of like, you know, Google and Facebook, both are internet based companies. They're both built on internet and in the global financial markets, they're both considered tech investments. But they do completely different things, completely different purposes serve a completely different crowd. And so you got to understand even with inside crypto, you have, even though it's built on blockchain, these are completely different things that aren't necessarily competing. Now, Austin mentioned the fact that Bitcoin leads the market. But over time, as people better understand this market, there will be decoupling that starts to happen with inside the market by virtue of understanding and by virtue of the way that people are participating and working with inside these things. So I think it's good to understand for investors that there is the ability to create a diversified index with inside the space. And there are different utilities and blockchains and projects that serve different purposes. So I know this is getting a little bit off the direction you wanted to go. So let's pull it back in. For those of you that are with us, what we'd like to do is talk a little bit about the potential of the market here, we'll turn it over to Jeff talking kind about market cap. And then let's come back, Austin, and maybe you can dive into some of the technicals as far as the bottoms we're looking at right now. So people have something actionable, that they can look at in the near term as well.
13:39
I'm using myself there. Currently, we are at a $1.8 trillion market cap. That may sound like a lot of money. But you gotta make it understand how that fits in relative to other asset classes, which I'm about to show you. But what's been interesting is like Zack was kind of alluding to there's been a lot of innovation in Bitcoin, so leading the market, but you can see over since you know, 2017, how much the dominance so this is bitcoins dominance over all of cryptocurrency. And while bitcoin is actually appreciated in price, there has been so much other development in the space on in these different coins. And all that money has come into crypto, some of it flows into Bitcoin. But you can see that the velocity of the money moving into other projects relative to Bitcoin since 2017 has been pretty immense Bitcoin used to have the dominance of the market of 95% is even much higher than that it used to dominate the entire market. But since 17, we've had so much development that bitcoins dominance has continued to drop the market cap, as you can see, has been dramatically rising since 17. I mean, if you look all the way back, this was you know, 17 and this this looked like a mountain top when you guys were in crypto, but then you see just how many eschewed is, and what's likely to happen is, you know, one thing that a lot of people like to set projections and on certain dates and things and it is good to have an idea and scenarios of where you believe price can go given the overall macro specific sector within cryptocurrency, then specific assets as well. It's obviously very difficult to to predict. But what I like to just do is like, think about the value of crypto. Okay, what is what's the value of blockchain technology? Well, it stores data, okay, storing data is extremely valuable, especially in 2022. And I don't see that changing. And then cryptocurrency and cryptography is just the ability to transfer value. So if you can try to put a number on transferring value and storing data, it's pretty immense amount of value. And what we're looking at right here is just global market cap. So different asset classes, stocks are well over 100 trillion real estates over 300 trillion gold is that 11 trillion, and Bitcoin and crypto all that together, that nearly 20,000 coins is worth 1.8 trillion. And that's what this green is right here. I don't even know if you guys can see it. But there's green, there's little glint green sliver right here in the middle of the screen. And that is how minuscule crypto is relative to these other asset classes. And honestly, as I see it being even more valuable than these other asset classes consuming are considering that we're moving into a digital economy, globalization is happening. And then everything that I just mentioned, with, you know, storing data and transferring value, it's quite immense. So very, very excited for where the entire space is telling. Awesome, you want to dive into some technicals? Now for him to just let him know, kind of maybe short term and mid term what we're looking at?
16:56
Yep, totally. So let me pull the chart up here. So first, I want to kind of back it up and follow up with what Zach was saying about how Bitcoin and these other coins are kind of just grouped together. And in some days, like today, where it just looks like so before we even look at this chart, it's like a, this is this, these are all stocks right here. And what happened was the, like the s&p 500 out of minus 2% Day, which is crazy. And what you see is, I mean, this is the dollar index. And this is the VIX, those are green, but pretty much you see red across the board. And so there's days like these were, where there's just a risk off day and everything's red. But when you look at the long term, the these big blue chip coins are not going to stocks like Apple and Microsoft and Google they're, they're making higher highs pretty much every single year. So the there are days where everything is correlated, but it really, it's just you got to zoom out and understand that the there's days where the market just takes a risk off day and they just want to be people are fear of fear of some kind, whether it's inflation, or whatnot. But in the long term, the winners that the good fundamental values do always fun, find their way to the top. So here's Bitcoin on a daily chart. Let's zoom in a little bit. So what's important to see here is this pink line is the downtrend we've been in since November with lower lows and lower highs. We broke out of this downtrend the other week. And we well it's important to look for as a higher high to be made. So lower lows and lower highs as a downtrend to make it an uptrend, we need to see higher highs which this purple line of 44.5k, we broke through twice. And so that created a higher high and now we need to find that lower low or that higher low. So the higher high and a higher low would be confirmation of or a good argument for a bottom at least. And so just kind of zooming in a little bit more of this, this red. This red line right here, we kind of could have seen it come in two days ago with some bearish divergence on the RSI. The MACD up here are shown a little bear signs as well. So on the short term, this is just kind of it's just part of the game. And so the the you see you saw right across the board and every single asset class pretty much gold as bullish on the short term. And that's just showing that we're in a risk off environment. So right now zooming in, like what we're looking at is to see if this blue line holds. So today we have 52 minutes left in the day. Crypto uses Greenwich Mean Time. And we're gonna see if this holds if it doesn't hold. I mean, you got to expect that we're gonna go down a little bit I would expect around 30 8k would be the next day to look for bottom. We have been holding at least 30% cash while we're in these uncertain times. So it's really more just exercising Patients we're getting paid to, to hold this position. So hold our cast position, and we're going to be deploying. One, when we get down here, if that's the case, otherwise, we're happy to be just earning earning interest here until the market really tells us kind of a better signal on directly what we're doing. So on a short term, that's kind of the thing we're looking at. But really, you need to just focus on the long term picture here. As everyone mentioned earlier, there's too much fundamental news that are that is bullish. And these short term little swings, don't let them get, don't let them fog your vision.
20:37
Fantastic. Austin, Bernard is our portfolio manager for Boron digital, and he does a fantastic job with the on chain analytics and technical analysis, risk management, and so forth. And it was really a good point in bringing up that, you know, we're, we're holding that much cash in the fund. And that's the whole difference. That's the paradox between someone who's just gonna go on on their own and throw it into Robin Hood, or throw it into an exchange and just try to figure it out on their own, is you're stuck in the middle of the volatility. And so what we do is we're not, we don't have to stay stuck in the volatility. Volatility is good for us, because we're trading the narratives and we're holding portions of Bitcoin, then we're able to, as we talked about the back office, you're able to see the analytics. And so when we realize that, there's a downtrend, we're able to pull out and put those funds stake those funds at higher interest and hold. And then while it comes down, and whoever stayed in that lost money, we then can buy down at the bottom as Austin was saying, so really, really important. Important information. So if you guys have any interest and being having your your crypto managed, whether you've started your journey in cryptocurrency, or you are or you haven't, we'd love to serve you in that capacity. And it would be remiss if I didn't just share a little bit more about Jeff and Zack so Jeff is our Chief Investment Officer. Very much like very much like Austin, the the analytics and the large components from the global economy side to what's happening in crypto and the fundamentals of the strategy of what we do with boron digital is held by these two astute individuals. And then the majority of you guys know Zach Morrow but if you don't already he's VP of investor relations. And so he's the one you're speaking with on a regular basis has a large within depth in investments of multiple different kinds. As you guys know, we're in the real estate sector as well in self storage, mobile home parks. But again, if you have any interest, the details are in the show notes below. And last thing I want to say we have I've had so many people who are not accredited investors because our hedge funds are for accredited investors only at so many people recently just asking how do I get started? How do we how do we get into cryptocurrency I realized everything's going that way. But I'm not an accredited investor. And so we've shared this before I want to share it again, to offer this to you is we have a inner circle. So the inner circle allows you to one learn from a investment mindset of how to invest into cryptocurrency in a program. And then Jeff gives a weekly update on specifically what he's doing in cryptocurrency and how you can follow along and do the exact same thing in your own journey. So guys, we're so thankful for you guys being here. Any final words? Zack officer Jeff. Awesome, guys. Thanks again for joining us. We do this every single week on Thursday, between 430 and five and look forward to taking you along this journey where real wealth is built. Blessings on you guys
Transcribed by https://otter.ai