just a warning i do have the giggles for some reason so just in case you know i had a very good christmas i still have the giggles from it but as we pointed in previous episodes december has been the worst month of december since one thousand thirty one for stock markets it's also been the worst december for coincidence back in what twenty thirteen twenty fourteen so we've had a pretty bad year twenty eighteen in bitcoin and i'm going to look at some of the data that has come out in the second half are going to be talking to tony going to go deeper deeper deeper into between and the whole outlook for it but this is an interesting story that happened right before christmas just in coin base moved five billion dollars in crypto as part of an upgrade it was worried would take a toll on the market quote the five billion dollar number represents five percent of all because eight percent of the total supply of ether and twenty five percent

of all light coin so coin base didn't announce this before they did it partly because they were afraid hackers weren't trying to somehow get inside it and steal that but also they were afraid that it was going to cause. the market to crash like that somehow they people would be able to see their wallet because it is open it's an open ledger so people can see these huge movements of coins. it only costs like a dollar to move that five billion dollars in bitcoin but the interesting thing is that jackson palmer who does this excellent series of you know crypto analysis on his you tube channel he looked at this and pointed out something that's really important to look at and think about what is it coin and why you should hold it he said for those wondering so what about the. five billion dollars. in that mood and

twenty five percent of supply of like wayne this means that if basis custodial mechanisms are somehow hacked twenty five percent of the entire light coin money supply which is four hundred twenty five million dollars worth would be in the hands of the hacker it also means that a significant number of users are not in control of their own private keys diminishing the value of using a crypto currency in the first place the money may as well be sitting in pay pal so this is an interesting topic especially now with the anniversary and the movement to have people take delivery of their keys the private key initiative as a way to thwart not only the risk factor but the derivatives risk of wall street using their naked short sells and other derivative says to manipulate the price and you could point that there is a lot of risk to this market but you know when we started covering big coin the

entire crypto market in toto was maybe five million dollars that was it that was a total market cap of all crypto it was fifty million dollars actually when we first talked about it march two thousand and eleven because there is a comment in that you tube which says this is a scam who stole fifty million dollars right ok so the fact that we're now talking hundreds of billions and at one point last year it was threatening the trillion dollar market cap you know shows you that this thing is moving ahead i mean bass is very aware of all the risks here they're trying to mitigate the risk but they're also trying to scale their business when you're trying to scale a business while owning and transmitting and being part of the monetary system usually in the software business you don't have that risk is just software you make a mistake and you have to rewrite the software to millions of people don't don't have money at risk so this is a new paradigm and the folks are going based so far you know they're doing an ok job and i think they've got a lot of problems over there as well but they are nevertheless. one of the leaders

in the industry and they're doing with these to be do done to scale that business and this is the risk that happen the mean there's no not no no nothing comes out risk in this business or any other business well yeah but that's if you're getting involved in crypto currency and a lot of people in the world have only heard about it for the first time in the past year they do need to understand that they should check out proof of keys dot com because if if the. coin base is moving your coins that means they're coin bases coins they're not your coins they're not actually you don't actually own it and i do understand a lot of people don't actually want the responsibility of holding their coins but there are other avenues whereby you don't have to be responsible for it because anybody who has had control of their own keys it's getting a little bit easier but in the past back in twenty eleven twelve thirteen fourteen it was a little bit harder to maybe avoid losing your keys and avoid losing your little another calculation people make because taking delivery of keys also has risks associated with it people have get hacked all the time and there's always risk

involved and so you make a calculation well i mean it's less risky actually to keep it as a custodian in this particular service in a coin base a little ed has a very interesting interpretation of u.s. tax law you know because i think they when they move coins that somehow that's a taxable event which of course is false but you know that's for everyone to figure that angle out as well that's another risk that they're not addressing in a real direct manner going base is not no they're not so basically maybe me you may have received some big queen in the last two days for christmas and one should do a little bit of your own research about you know what would have happened here coin based was concerned that they might be hacked and that's during this move which is why they did not you know announce it to the market before hand so if they were hacked like what would have happened if your coins were on there are you protected

would you have been reimbursed how would they have reimburse you because you can't print more bitcoins in order to make good when something's stolen like the federal reserve could just print a whole bunch of dollars if somebody managed to sneak into the bank vaults of every across the country and still every single us dollar in existence we could just print up some new ones you can print up more big question so it's important to do your own research on these things. then i want to turn to speaking of dollars there is this proliferation of dollar stores across america and that's something that's really stood out to me over the past two years since we've moved back here is all sorts of stores with dollar in their name dollar general dollar tree dollar family dollar like all sorts of things like that so there's been an investigation into looking at into that and. what that means and what that indicates and what they're hoping for and what their business plan is going forward looking at america dollar stores planning for permanent american underclass sell more groceries and

whole foods dollar store chains like dollar general and dollar tree are rapidly expanding by targeting the poor particularly in predominantly black neighborhoods and rural areas while planning for permanent american underclass according to a new report from the community development nonprofit institute for local self reliance so. more importantly the fact that dollar stores sell no fresh vegetables fruits produce they don't sell any fresh food as stuff sold in cans and processed food in packets treated and they sell more food they are quickly becoming one of the primary ways lower income americans eat with a combined grocery sales of dollar general dollar tree outstripping whole foods by more than ten billion dollars right now you can eat pretty well at whole foods.

dollar general stores because few things come in cans are pretty good cancer manos and canned peas ok they're fine dick those are good that's good stuff but you know it wasn't too long ago in america we had the five and dime which was the well worth well worth five and dime store everything was a nickel or ten cents and you know super and wal-mart started by super discounting everything and mcdonald's got big by selling a dollar meal so some stuff cheap you know that's just part of the capitalist system and we're just going back to kind of a re visitation of america as a poor country and that's ok because things expand and things contract you know i mean we're going back to being poor for a large part of the american population and you know that's just the way it is a you know you can't be rich you doesn't trees don't grow to the sky is got to be a retrenchment so we were in the united kingdom when they unrolled gambling and

casinos they allowed casinos and they only allowed a certain number of casinos in certain areas and what emerged under tony blair was that these casino operators in particular did not want to be in rich areas did not want to be in middle class areas what they wanted was to be in very poor areas they targeted poor communities because they they were the best customers they kept on coming in and hope and hoping to win same here. the study shows that in fact when these it it's hard to strip out correlation and causation here is that when they enter a neighborhood the actual neighborhoods income declines they actually get poorer is it because they're eating poor quality food or is it also because these dollar general stores tend to push out all of the local grocery stores they undersell the local grocery stores they undersell the local you know food shop the

restaurant you know maybe a food stall but they're pushing out they so a lot of jobs are displaced from the neighborhood so they do cover a situation in oklahoma where oklahoma is kind of ground zero of these dollar stores and that black neighborhoods are doing basically organizing to resist the introduction of any more dollar stores they don't want these dollar stores in here because they reckon that it just decreases their wages and in their living standards in the area it does go down according to their research well because of a factor of causation versus coincidence or because the american economy is collapsing because the money printing a stop markets are collapsing we're going back to depression era type economic so i mean and to rebuild the economy just like in any economy it's it's bad it's built on poor people poor people feed the economy because they buy scratch tickets scratch off lottery tickets they you know when i was living in the ghetto in new

york you know the red apple grocery store uptown had the highest prices in town and liquor stores are open and you buy you know booze more expensive in the ghetto and that's how you build them economy it's always built on the backs of the poor america was built on the slave market america was built on prison labor and looked at the good times of america the ne'er do wells it's all very squishy and swell that's over we got to go back to basics and just to reiterate what we've been saying over the past few weeks a month. is that this is a result of the can tell in effect whereby the federal reserve bank of america continues to print dollars give them for free to wall street bankers and those closest to the wall street bankers who get it at zero percent by the time it trickles down to somebody who shot so the dollar general store if those people don't have you know big quain to preserve their purchasing power then they're stuck with this and here's a quote from the actual c.e.o. of the dollar general store he says the economy is continuing to create more of our

core customers and other words the more lower income americans struggle the better dollar stores do so he himself sees our economy is creating the need for a dollar no your alternative is to grow your own food basically you know that's the alternative which is probably consider that. way it's going to take a little break and come back much more don't go away. i had a great education a good job and a family that loved me. i never had to worry about how i would eat and where i would sleep. i'm facing christmas alone out on the streets of london. for you like you only. you know the single still give out food for the over the see . if you don't really feel like

you could be good. and then. the guy just came over to me soon the gave you a job you spoke of. what holds an institution. you can. put themselves on the line. to get accepted or rejected. so when you want to be president. for some who want to be rich. but you'd like to be first to supply them before freedom or can't be good. i mean first of all as in the waters of our. first city hall.

where is that country called russia no one is ever no one has ever heard of a country never even heard about most school. kids. play.

welcome back to the kaiser report time now to get a turn vai's a formal austrade derivatives trader an analyst now turned content creator who provides technical analysis of bit quiet travels the world teaching him how to trade and in january he's hosting the unconscious cannibal conference in las vegas max stacy will be there looking forward to a town welcome in the guise of reporting tell us about confiscated will. be on the young guys really appreciate it yes i wanted to i've been to so many conferences around the world and there were very few would go were actually focused on bitcoin to me bitcoin was always the innovation of this century so far and it was always about this proof of war concepts of toshi developed to solve the double spending problem to me it was always bitcoin not this concept of block change slash database that a lot of people are treating it as so i wanted to put together some very good

speakers there understand big quine don't understand this concept of money and how big one is going to change their monetary system and we're going to have a little conference focused on that i'm looking forward to it i know you've got a great lineup there including safe dana mercer at the big client stannard fantastic book looking forward saying safe and again now it mentioned big going up block chain remember a few years ago when the bank started freaking out about this new competitor called because they pushed aside they have blocked chain and i picked going blith masters was over j.p. morgan she jumped ship and started a blog chain company now she's laugh she's living i think that indicates that the whole block chain that bitcoin meme is dead we're back to bitcoin so tell us more about decline on the charts you've had a hot hand all twenty eighteen really calling the price action really really well what do you see that now and going forward town yeah i've been a bear or was the entire year of twenty eighteen i. it became a barren the middle of charity and i had became

a barren the middle of january of twenty a scene there was just a little stretch where we balanced off of six thousand around february twenty eighth and when i became a bull thinking we can make something out of that i became a bear again i actually remain a bay or even today i'm seeing this bounce we've just got about twenty five percent already from three thousand to four thousand here at the end of the year but i do think this is this will last a little bit longer but not too much my outlook is there because we fall into far too fast from the sixty five hundred dollar area down to three thousand we were due for a balance i've been looking for those bottles i'm short term long big claim at the moment but i think around five thousand to six thousand this is going to come to an end i still see new lows. from less technical perspective i think we do need to bottom below three thousand from

a fundamental prospective as of recently i've been saying that i it's hard for me to envision bitcoin setting off a new bull market unless bitcoin stands alone watching this balance and the old coins like a theory m. and. b. cash people call it big going cash i call it the cash like all of you don't hurt is that i find very very useless there go there pumping even more than big quiet and i can see a bottom line that way to me and i think the bear market is going to and one bitcoin is going up and all of these gold coins are either staying down or continuing to go down right to sell say some decoupling at some point where the all coins are called . trade dab it going trades up your associates either drank has been on the show is calling for because i'm trying to get a thousand doesn't doesn't seem like you think we're heading to thousand but you're thinking about a buy. i'm under three thousand what other data deal look at. do you look at any

fundamentals i mean there was great batter on so is there any other data that you look at and other than just a technical data and does hasher a factor into your analysis at all town so to me there is four factors in any market i have we have our price charts which is the technical analysis side i do a lot of time analysis as while i think the price and climb should be two separate things i guess that's my experience as an option straight or so i care about time and then we have news of and some fundamental analysis and i separate those as well out of people treat them as the same for example i don't believe the european currency sustainable so if the euro breaks up into its components let's say that deutsche mark and the frank and bill the euro does a huge fire that's a huge news of and and potentially could be something that drives big going to higher but those more like news events to me the fundamentals is the code of big

quine and i'm seeing amazing things happening with the code updates shore and prudent board process and all of these other improvements i think are great i think big one is a sound as a is it ever was from a fundamental perspective i have the opposite view on all of these old coins and all of these other projects i find them fundamentally and say so to me bitcoin is the only investment grade asset which is why i continue to love it and i continue to use it and because of that i have such a big focus on big oil and i quit my job for a bit quiet and i do what i do you i don't find anything worthwhile fundamentally in any of these other big coin alternatives so for fundamental perspective if you have like a three to five year outlook. i think big quite is a great buy any price especially here in. low five thousand dollars so that's my

fundamental view or it's the news that keeps changing right down euro derivatives trader and many points of the interaction of big client features on the exact date of its all time high december of twenty seventeen as the primary cause of the eighty percent decline and now there's been a lot of talk about that in professional trader circles your thoughts i think it was more of a coincidence i don't think there was a direct correlation it feels like there was but if anything it was all the hype people were expecting that one of wall street shows up with the c.m.e. futures and a c b o e futures and things were going to be different that all the money's going to come pouring in from. professional traders in reality that didn't happen so all of this hype drove decline probably an extra hundred percent higher i always felt weird once a big going started trading above seven and a half thousand dollars and it was all hype over the futures that drove it up and

a realization that didn't really make that much of a difference has been helping to drive it down overshot to the upside we're going to overshoot that a dollar's high right now speaking if interest contacts austrade you have another one coming out in january from backed and how how does this differ from what's available in chicago right now and expect any impact there good or bad sure well it's definitely different from what's available in chicago because this one you're actually taking physical delivery of bitcoin but i don't see how it's going to be all died different from what we already have from gemini with the winkle vi poisons and even what coinbase is offering i mean i'm hoping that they will do a better job they can hire more experienced people i heard they hired some big glencore developers for their big quincy curity and they have experience of running an actual exchange so it might be just a low bit better than what's currently out there. and i really don't see as revolutionary turn talk to us about proof of key as this is something that an idea

has popped up recently we have a long and we have traced mayor myself talking about this idea of proof of keys i brought up except our springs last fall in palm springs and it was a big point of discussion at tripped us prangs what are your thoughts of the side you have proof of keys tell us a little bit about what it means and they way you think about it shore so proof of keys is this concept to make sure that when you have big quinn has been held by a third party that there actually have the big and then there isn't some kind of a fractional reserve going on so it's a good idea the thing is that you have never got that his point of view quite was really designed for you to be in control of your own money you should have always been held holding your own keys like i have no because hell with third parties so this event does nothing for me i have no big going to withdraw from any institution

from anyone that's holding the big question for me now it sounds great it sounds like an awesome initiator of in reality this is going to get old very very interesting so first of all there are going to be some tax implications it's scheduled for january third but you may want to you know talk with your tax accountant an advisor to make sure if you're going to do it maybe it's better for you to do it here in the sand bar and not wait till the following year for potential tax implications the started their second as if all of this big quote comes off exchanges we could find out which are changes are a liquid and that could cause severe problems in the space also deliver quiddity of trading could be severely endangered and now it doesn't take a lot of money to move the market one way or another though i know which way someone with a bunch of money can with a market i have no idea but there it could be some interesting things going on i. but it should never gotten this bad i've never used point b.

and always advise people not to use coinbase to quote was designed for you to hold your own money holding bitcoin with these third parties is like holding your gold with banks don't work done was complicated by going to thirty's there's no difference you want to hold on to your old big one like you want to hold on to your own gold and silver or i imagine gold and so are there for a second now a few years ago i launch something called crash a p morgan by self or another were joe's a proof of silver campaign because j.p. morgan when they inherited bear stearns silver short position were exposed on their balance sheet to a situation where everyone delivered silver they would go bankrupt it would be a way to get rid of j.p. morgan masters at that time so this is a continuation of this idea that the derivatives market the fractional reserve markets the naked short sells out there the price manipulators and now it's been conclusively proved that j.p. morgan and others were involved in price manipulation and price of suppression in the summer market this is a way unlike silver that it's in the crypto market it's

a lot easier for this proof of keys concept in other words the main point of this is that the price discovery that is how you come up with a price is in the hands of the crypto hollers it's in it's in our hands in a way that's never been available before and this is a revolution to some degree tone your thoughts. you know max you and i disagree there a little bit. i don't really have a problem with this naked short selling because there's also naked long buying and to me i wasn't going to work to crash a few more going by silver because basically most of the people on the other side of those contracts have no interest and they can delivery of silver and to me i don't really understand the concept of naked shorts because for every short buyer there is a long buyer most of them don't care about they can possession the reason why because one is different is because it's your big quiet in the case of the futures

contracts it's not really yours and most people just bided for speculation this is the big difference here and this initiated could actually work and it could expose some of these institutions for either not having the big quine or being kind of a competent and now having the ability to the live or die because if that's too deep and cold storage and it's difficult for them to get it done i hope it doesn't cause any major havoc send a big market but even if it does it will be a long term good thing and we will recover all right well yeah we do differ on this a bit maybe it's something we can pick up at the un confiscate a bill conference in las vegas televise mask as i can continue this conversation i think it's heartening i'm looking forward to that in the meantime though i must say good bye thanks for being on the show town thank you dr to be on and that's going to do it for this edition of the kaiser report with me max kaiser stacy however i'd

like to thank our guests helen vegas if you want to catch us on twitter as are important and i stand by all. well i think it certainly makes sense for for moscow to think. trump in its contacts with the united states i just fear that the dominant view in this city is that it is merely impossible until the united states kind of settle this domestic divide about the environment and in d.c. he's you know i hate to see this. as work toxic but that's exactly what it is and then i think it's in a way you know you're damned if you do and you're damned if you don't.

when our mine when the content of our mine ease changed there are fees. of the level of the physiology that is of the level of the brain the brain as a form of plasticity can rewire itself and not just the brain but also the rest of the body respond to that. i've been saying the numbers mean something they matter to us as over one trillion dollars in debt more than ten white collar crimes happen each day. eighty five percent of global wealth you long to be all for rich point six percent market saw thirty percent rise last year some with four hundred to five hundred three per second per second and bitcoin rose to twenty thousand dollars. china is building a two point one billion dollar

a i industrial park but don't let the numbers overwhelm. the only numbers you need remember in one one business shows you can't afford to miss the one and only. the co-founder of. social media to apologizes for funding the pro-democrat operation that created over a thousand russian language twitter accounts designed to look like they back up the broad. sheets and expresses concern over russia's new hypersonic weapon saying that there are no effective counter measures the final test was successfully carried out when the. us french judges dropped a two decade long probe into the deadly attack on the president's case that's long

been a thorn in relations.