Shownotes
What is with this market? Down, up, down, up, sideways, down, up. It's enough to make you seasick. But, don't give up! This is a great time to continue to DCA and build your long term wealth.
News
Brazil's Central Bank launching a digital currency in 2022
Central Bank Digital Currency Tracker
One-third of Nigerians (18-60) Investing in Crypto
https://bitcoinmagazine.com/business/report-over-a-third-of-nigerians-are-invested-in-bitcoin-crypto
Can I get a loan? I need to fill up my gas tank!
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Music Credits
Protofunk by Kevin MacLeod
Link: https://incompetech.filmmusic.io/song/4247-protofunk
License: https://filmmusic.io/standard-license
The following music was used for this media project:
Music: Ethernight Club by Kevin MacLeod
Free download: https://filmmusic.io/song/7612-ethernight-club
License (CC BY 4.0): https://filmmusic.io/standard-license
Artist website: https://incompetech.com
Transcripts
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Speaker:Hey, everyone. No one on this podcast is a financial advisor. All information presented
Speaker:on this podcast is for informational purposes only. Now that we have the legal stuff out of the way,
Speaker:let's jump on in. Welcome to the Generational Wealth for Cryptocurrency podcast. I'm your
Speaker:host, McIntosh. Today, we're going to be talking about don't stop believing.
Speaker:All right. First of all, I want to apologize. Obviously, this is coming out on Friday, not
Speaker:Thursday. Yesterday, Thursday, when I would normally be recording, frankly, was a terrible
Speaker:day for me at work. Sometimes, I end up having to work extra at my position, at my job. I think my
Speaker:day started at 9 a.m. yesterday and ended around 1 a.m. this morning. Then, I actually had some
Speaker:other tax stuff to take care of after that, because in the United States, tax day is actually
Speaker:traditionally April 15th. This year, it's going to be April 18th, so Monday. I simply didn't have
Speaker:time to record a podcast. I do apologize, and I will do my best to stay on the schedule that I
Speaker:laid out. We're going to jump right on into the news. There has been a bit of news this week.
Speaker:I'll give a brief overview of the market to start with. The market's about the way it's been.
Speaker:We're at $40,000 right now as I record. For Bitcoin, we're at $3,000. Boy, I wish it was
Speaker:$30,000. That would be nice. For Ethereum, we've had a bump down. We've had a bump up over the week.
Speaker:I don't know. We're trapped in this range, and we just keep moving along.
Speaker:We're going to talk about that. That's okay, but we'll go through the news first.
Speaker:The first thing I want to talk about is Brazil. We've talked about Brazil a bit.
Speaker:They have made some overtures about crypto. The Brazilian central bank has now confirmed that
Speaker:there will be a central bank digital currency pilot program that's going to launch in 2022.
Speaker:We're seeing this a lot from different countries. In fact, I will include a link to this in the show
Speaker:notes as part of the news. There's a website called cbdctracker.org, centralbankdigitalcurrency.org.
Speaker:It is a map of all the places that have cancelled programs, that are researching programs, that have
Speaker:proof of concepts. They're in the very early stages. They're in pilot programs, or they have
Speaker:launched. Currently, launched is very few. Nigeria actually has one, and the Bahamas
Speaker:have one. Is it the Bahamas? Let me zoom in here just a little bit.
Speaker:But yes, the Bahamas have one, and that's actually it before completely launched from what I'm seeing.
Speaker:There are a number that are in research or proof of concept. I actually believe that this site is
Speaker:incorrect. China, I believe from my understanding, has launched, and it's showing as pilot.
Speaker:This will be an interesting site to watch over the coming years.
Speaker:Russia actually has a proof of concept. I wasn't aware of that. Interesting.
Speaker:Anyways, Brazil is continuing to dip its toe into crypto. I think you will see all of these
Speaker:countries, the vast majority of these countries, doing this over the next few years. You might
Speaker:want to bookmark that website. What's next? On Tuesday of this week,
Speaker:the CPI, Consumer Price Index, numbers came out. In case you haven't heard, there were 8.5%.
Speaker:This is inflation year over year. A year ago, basically in March, these are the March numbers.
Speaker:March, a year ago to last March, inflation was 8.5% on the items that they track. There's a lot
Speaker:of dispute about that. I think inflation has actually roughly doubled that because they take
Speaker:out some things that have very high inflation rates and don't include that in the rates.
Speaker:But regardless, this got everybody freaked out. Actually, something fairly unprecedented happened.
Speaker:I don't recall ever hearing this in the past, but on Monday, I do not know the
Speaker:woman's name. Jim Pasaki, who is press secretary for the White House. I believe it was her. I don't
Speaker:think it was the president himself. Anyways, they came out and said, hey, inflation is going to be
Speaker:high. Extraordinarily elevated is the words that they used. Monday, actually, if I recall correctly,
Speaker:the stock market kind of took a good dip. But interestingly, on Tuesday, when the numbers
Speaker:actually came out, and they come out prior to the market opening at 8.5%, it was kind of priced in
Speaker:at that point, so the market didn't crater. But we're going to have to keep watching these numbers.
Speaker:Maybe you think I talk about this too much. I think this is actually very important, honestly.
Speaker:Inflation is part of what will drive Bitcoin adoption over the coming years. It's a hedge
Speaker:against inflation. Countries can create digital currencies. The United States, I'm sure, in fact,
Speaker:they are talking about creating a digital currency, US digital dollar. I'm sure that's
Speaker:going to happen. But the thing is, is that that's not going to be any different than the current
Speaker:dollar. It's just going to be digital. We'll have the same issues that we've got right now with the
Speaker:fact that our money isn't backed up by anything, along with any of these other countries. I'm not
Speaker:aware of any country in the world at this point. Well, I hate to categorize, but of real size,
Speaker:let me put it that way. There's probably some country somewhere that has gold backing their
Speaker:currency. I'm not aware of it, but regardless, without a backing, it's no different. Bitcoin
Speaker:has a backing. Bitcoin says 21 million, no more. Ethereum has a backing. Yes, you mine Ethereum
Speaker:currently. We'll move to a proof of stake with Ethereum, and we're going to talk about some news
Speaker:about that in just a second. Once that happens and mining basically peters out, Ethereum will
Speaker:actually long-term become deflationary. There will be fewer and fewer Ethereum over time.
Speaker:With the US dollar, for example, to put it simplistically, they just print more dollars.
Speaker:That is putting it simplistically, but the net result is the same. We keep piling up debt,
Speaker:and at some point, that debt's going to break. I've talked about that quite a bit.
Speaker:This inflation shows no signs of going down. I suspect it's going to go well over 10%,
Speaker:even by their recorded numbers. The reality is it'll be a lot higher than that.
Speaker:All right, moving on. I had one more item here, I believe. Nigeria, actually. One of the things
Speaker:that we've talked about just as a lead-up to this article, I feel like two of the largest areas
Speaker:of innovation and adoption, really, or both, of Bitcoin in particular, and crypto in general,
Speaker:is going to be Latin America, South America, and Africa. A lot of the countries in both of
Speaker:those regions base their currency off of other countries' currencies. The US dollar, the French
Speaker:franc, or whatever. There's a tie-in to the French system. I'm not sure the French actually
Speaker:use the franc anymore. They may just use the euro. I'm not aware of that offhand, but there
Speaker:are countries there that were controlled by the French until recently. They're tied to the French
Speaker:system the same way some of the countries in Central America, El Salvador is an example,
Speaker:tied to the United States dollar. I think you're going to see a lot of shifting over the next few
Speaker:years of these countries. Anyways, Nigeria, in particular, a report was released this week showing
Speaker:35% of Nigerians age 18 to 60, so that's really your prime target audience. Obviously, younger
Speaker:than 18, not going to be a whole lot of crypto usage or investment. Above 60, let's be honest,
Speaker:most of those people are not going to be dealing with crypto. 35% of Nigerians 18 to 60 are invested
Speaker:in or trading Bitcoin and other cryptocurrencies, so that's an extremely high number.
Speaker:I thought that was very interesting, and I don't know what the dynamics of that are. This actually
Speaker:says, I'll just read what this says real quick, Nigeria hosts many long-term investors in the
Speaker:space as its currency, the Naira, has seen a 209% depreciation, not inflation, depreciation over a
Speaker:six-year period. 37% of the investors in the space have been invested for over three years,
Speaker:so we've got long-term investors, so that's awesome. Moving on, we will wrap up. I want to talk about
Speaker:Ethereum for a few minutes. The Ethereum 2.0 merge, which we've discussed even as of a couple of weeks
Speaker:ago, it was announced this week that the merge itself will not be taking place in June like
Speaker:it was thought that it might, and it most likely will be later this year. I never really expected
Speaker:June to happen, but it would have been nice, but they are officially pushing it off. They're saying,
Speaker:here's one of the core developers on his Twitter, he said, we could ship it, meaning we could ship
Speaker:it in June, and the network probably wouldn't crash, so that's always positive. But they're
Speaker:very concerned about a smooth transition. We don't want to mess this up. We does not include me,
Speaker:but they do not want to mess this up. They're going to take their time and get it right.
Speaker:I do expect when this happens, there will be a huge spike in Ethereum price. Unfortunately,
Speaker:it doesn't look like it's going to happen in June to kick off a summer bull run, but maybe this fall,
Speaker:maybe this fall. That's it for the news this week. Let's move on.
Speaker:I do, like the title suggested with the old song, Don't Stop Believing,
Speaker:we've been in this sideways market now, really. It's been a while. Depending on how you look at it,
Speaker:you could actually say it goes all the way back to basically a year. Now, we went from $40,000 up to
Speaker:$69,000 briefly, and then back down just under $40,000, and now we're back at $40,000. We've
Speaker:kind of been a lot in this, if you look at a chart, in this $40,000 to $50,000, $47,000 range.
Speaker:A lot of sideways market, and it's very discouraging for new people, especially.
Speaker:I don't want you to give up hope. I don't want you to stop believing.
Speaker:Look, I don't really talk about a lot of the fundamentals, but there's a lot of
Speaker:metrics, things like the number of people who are in profit right now for Bitcoin. It's like 62%.
Speaker:It's actually quite high.
Speaker:That's simply because, if you think about it, that means that those people have been around
Speaker:for long enough that the price right now at $40,000 is higher than where they bought at.
Speaker:They either bought during a dip, or they've been around for more than a year or so.
Speaker:So, this sideways market will pass. We may go down first.
Speaker:We may. There's a lot of people on Twitter, on YouTube. I watch videos every day with people
Speaker:claiming we're going to go down to $25,000, $17,000, $10,000. I actually do not see how
Speaker:we'll ever get down to $10,000 again without something that my mind just won't accept at this
Speaker:point. The people knowing about Bitcoin at this point, there's enough people that if the price
Speaker:goes low, they're just going to buy in just because. They're going to speculate.
Speaker:Now, I know that even if the price goes down to $10,000, it's going to go back up. We've seen major
Speaker:drops in Bitcoin price and crypto prices, and if the project's good, it's going to go back up.
Speaker:So, that's a huge buying opportunity, really, in my book. But it can be discouraging because
Speaker:this market is just like this never-ending everyday, what's the price? $40,000. What's
Speaker:the price? $38,000. What's the price? $42,000. What's the price? $40,000. It's just up and down,
Speaker:and maybe it pops out, and then it drops down. The traders hate it, a lot of us.
Speaker:It's not my favorite kind of market at all, of course. But it's a good opportunity,
Speaker:especially if you feel like you've got in late. Oh, I just started a few months ago.
Speaker:So, well, good news. Just keep buying. Just keep dollar-cost averaging. Set up that daily buy
Speaker:through Strike or Cash App or whatever. There's a number of places at this point that you can do that.
Speaker:Buy your Bitcoin. Buy your Ethereum. Buy your whatever. Just keep doing it. Don't worry about
Speaker:the price. What if it doesn't go up for another year? What if it doesn't go up for another two
Speaker:years? Oh, well, for the vast majority of us, that's okay. Two years from now, we'll still
Speaker:be at our job. We'll still be doing our stuff. But you can keep buying Bitcoin. Keep buying
Speaker:these other quality assets. And the price will go up. It's inevitable. It may go up a lot faster
Speaker:than that. I mean, there's people who think that still, in 2022, Bitcoin will be at $100,000. Maybe
Speaker:it will. I certainly hope it will, but I don't know that. But when it's at $100,000 and you're
Speaker:buying $100 a week or $500 a month or maybe only $100 a month, it's a lot more difficult to make
Speaker:progress when it's so high. I'm not saying you shouldn't buy at that level. I'm just saying.
Speaker:Easy. View this as an opportunity. And if it goes down and stays down, that's a huge opportunity.
Speaker:Keep buying. Increase your buying if you can. Just know this kind of stuff has happened before
Speaker:and it will happen again. I just want to send out a word of encouragement because I know it can get
Speaker:frustrating. You wake up and it's like, oh, what happened? Oh, nothing. Or it dropped $100 or it
Speaker:went up $500 or whatever, but it doesn't. There's these levels that it just doesn't break out of,
Speaker:right? It's just this sideways box. So that's okay. We've got all the stuff going on in Europe.
Speaker:We've got inflation. And we could argue from a technical aspect or whatever, from our perspective,
Speaker:put it that way, that Bitcoin should be going up because of inflation, right? It's called a hedge.
Speaker:It gets inflation a lot. Clearly, we're seeing inflation right now. Well, why is it not going
Speaker:up? Well, it will go up. Right now, it's seen as what they would call a risk on asset. It's not a
Speaker:risk off asset. And that's unfortunate because I view it as that at this point. I mean, it's been
Speaker:around for a long enough period of time that it's shown its mettle, it's proven its worth,
Speaker:and it is built to solve the problems that we're seeing. And eventually, people will catch on to
Speaker:that. And when the times are bad like this is when you will see Bitcoin go up, right? It won't be
Speaker:because there's lots of money flowing around and that kind of thing. And people want to kind of
Speaker:speculate in it. It will be, hey, I need to put my money in Bitcoin because the dollar or the euro
Speaker:or whatever is losing value over time. Hope that makes sense. But that's it. That's the message.
Speaker:That's what I wanted to get at. I did not write, again, work has been crazy. I apologize.
Speaker:I have not written an article this week on Stacker News. I would still encourage you to
Speaker:kind of check it out. It's a great site. I do have one in mind, which I will try and get done
Speaker:before Sunday and do that. So, we're going to wrap up here and talk to you again here in a few days.
Speaker:I hope you guys have a great week. One last note. If you're in the United States, like I said,
Speaker:taxes coming up, I hope you're taking care of your crypto. It's frustrating. It's complex. It's
Speaker:frankly almost indecipherable. And I wished it were different, but you need to take care of it.
Speaker:So, one of the things I'm looking at doing for this year is, hopefully in the very near future,
Speaker:so that you can track your stuff this year, I should say, is putting out like an Excel spreadsheet
Speaker:to help people keep track of their buys, sells, trades, that kind of thing, to help simplify that
Speaker:a bit. It is a tremendously complex process. And frankly, it's very burdensome. I hope that the
Speaker:IRS simplifies things a lot. And as we move into using Bitcoin as currency, for example,
Speaker:with the Lightning Network, I mean, it becomes very difficult. Well, I want to use my Bitcoin to pay
Speaker:for whatever online or in person using Lightning because it's fast, it's cheap, and I want to
Speaker:operate in a Bitcoin economy. Well, am I going to get taxed for that? And that really hasn't been
Speaker:resolved at this point, unfortunately. So, personally, for myself, I have not used very
Speaker:much Bitcoin. I do buy Bitcoin specifically to use on the Lightning Network to support other podcasts,
Speaker:primarily, but it's not a very large amount. So, hopefully, for example, we'll have something
Speaker:saying if it's under $600 and there's a bill floating around, maybe, if it's under $600 or less,
Speaker:that it's not considered capital gains or whatever. That would be awesome.
Speaker:All right. The Generational Wealth with Cryptocurrency podcast supports Podcasting 2.0.
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Speaker:podcast. Hey, thanks for being here. I hope this has been helpful. I hope it's been encouraging
Speaker:this week, and I would love to hear from you. I'm on Twitter at McIntosh Fintech, and you can
Speaker:reach me by email at mcintosh at genwealthcrypto.com, and of course, the Generational Wealth website
Speaker:at genwealthcrypto.com. Now, go out and make it a great week. And one last thing, if you got ideas
Speaker:or if you got suggestions for topics, please feel free to shoot me an email. Talk to you later.