BTC Sessions - PayPal Triggers MASSIVE Bitcoin Pump! EP110

Starting point is 00:00:14 Wasabi wallet and fairly private. What is up, everyone? Bitcoin is on an absolute tear today. On the back of news that PayPal is adding it to the service and it will be available as a payment method to all merchants across the platform. We're going to cover this along with a ton of other bullish news that dropped today. I'm Ben with the BTC sessions and this is your daily session. Bitcoin. Before we dive in here, of course, if you're a regular view of the show,

Starting point is 00:00:58 remember to hit like, subscribe, and share that really helps. And of course, I got to give a shout out to sponsors of the show.ledon.io, this is where you can use your Bitcoin for a variety of different services. They, of course, have their Bitcoin backed loans. So this is where you use your Bitcoin as collateral to get a Canadian or US dollar loan. If you're in a pinch, you need dollars, but you don't want to sell your Bitcoin because, one, that's a taxable event, and two, you're worried about having to buy back in at a higher price point, this could be for you. Now, they've also got Bitcoin and USDC savings accounts with interest rates of up to 11.7% annually paid monthly. And they've got their B2X offering, which uses the same loan mechanism to instantly buy more Bitcoin, effectively doubling your Bitcoin on the spot.

Starting point is 00:01:44 So if you want to check these guys out, there's a link in these show notes down below. If you click that link and you opt to get one of their loan products, well, they will give you $25,000, worth of USC right into your savings account. So be sure to check them out, and you'll be helping the show in the process. Up next, we have our good friends at crypto cloaks. If you have not heard of these guys, you got to check them out.

Starting point is 00:02:14 Awesome bitcoins with 3D printers, creating incredible swag. Now, I, of course, have my Bitcoin node shell behind me running Umbrel. If you haven't checked out that video, go back, take a look. It's great. You can run your own node.

Starting point is 00:02:28 I've got Bitcoin coaster, and I think I'm going to, be grabbing one of these Bitcoin Triton ones, which can fit two Raspberry Pies to run two different nodes or whatever you want. But they've got a ton of great stuff. They've got their sticker packs, their Citadel flag, the Bitcoin Grenade covers for your hardware wallets, even nightlights, a little bit of everything for everyone. Head over to Cryptocloaks.com and check them out. And if you want 5% off, use the code BTC sessions at the checkout. And finally, we have, Of course, the Cobo Vault.

Starting point is 00:02:59 I've done a full tutorial on this, which you can head back and check out. That's down below. And this is one of my regularly used hardware wallets. I love it because it's 100% air-gapped in a very easy and convenient way. That means that you never plug the thing into an internet-connected device. Everything is done via QR code, which keeps the keys to your money safe and offline. Now, of course, they've got a secure element. The firmware is open source, and they're interoperable with all of my favorite Bitcoin wallets.

Starting point is 00:03:27 You can use it with Bitcoin Core, Electrum, Wasabi on desktop, which is my go-to, and Blue Wallet on mobile, which is also my go-to on my phone. So, be sure to check out the Kobo Vault. I'm using the Kobo Vault Pro, which has the fingerprint scanner and the rechargeable battery, just for reference. And they're doing a giveaway. All you need to do is hop on Twitter, retweet this show or share out this show, however you want to do it. And be sure to tag myself and Kobo Vault in it. Just let us know why you want one of these Kobo Tablet Pluses. which is a steel plate to store the backup to any Bitcoin wallet you may have.

Starting point is 00:04:03 With that, let's dive into the news because it's a big day PayPal to open up network to cryptocurrencies. So from Reuters, it says PayPal Holdings, Inc. set on Wednesday, it will allow customers to hold Bitcoin and other virtual coins in its online wallet and shop using cryptocurrencies at the 26 million merchants on its network. The new service makes PayPal one of the largest U.S. companies to provide consumers access to cryptocurrencies, which could help Bitcoin and rival cryptocurrencies gain wider adoption as viable payment methods. The company hopes the service will encourage global use of virtual coins and prepare its network for new digital currencies that central banks and companies may develop, President and Chief Executive Dan Shulman said in an interview, quote, we are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role.

Starting point is 00:05:01 U.S. account holders will be able to buy, sell, and hold cryptocurrencies in their PayPal wallets over the coming weeks. The company said PayPal plans to expand the service to its peer-to-peer payment app Venmo and some other countries in the first half of 2021. Now, the ability to make payments of cryptocurrencies will be available from early next year, the company said. other mainstream fintech companies such as mobile payments Square Inc and stock trading app Robin Hood markets allow users to buy and sell cryptocurrencies but PayPal's launch is noteworthy given its size. The company has 346 million active accounts and around the world has processed 222 billion in payments in the second quarter of this year alone. PayPal shares were up 4% on the news. Of course, that was earlier in the day, so it could have changed since then.

Starting point is 00:05:54 So, Bitcoin, and looking at the chart here, has responded to this news. Now, it's interesting because PayPal back early, I'd say the last bear market, even the last, yeah, even back to 2014, 2013, in and around then, it was, PayPal was like, this, this, this, this grand thing to attain. It was, it was, uh, you know, this, it was this holy grail to be attained to get put on PayPal. Um, to me now, funny enough, I'm like, yeah, that's good, I guess. That's all right. Um, but it's, it's good for mainstream media. And I think that's kind of what we're seeing in the price movement. Like this, this is like the Bitcoin of old when you'd see candles like this. Like in a single day for it to, what, it, it, the day opened at 11.9 and now we're at 12.9. So there's a thousand dollar candle roughly. And this is a one

Starting point is 00:07:05 day candle. We're, I think in the future, a thousand dollar candles in a single day are going to be commonplace, especially over the next year. Well, far more than $1,000 candles, if I'm completely honest. But we're starting to see some of that price movement that you used to see in the bull market of 2017 or leading up to it at least. And so it's very pronounced. People are apparently quite bullish on the news. Now, I do encourage you guys to take this news with a grain of salt because,

Starting point is 00:07:42 here. The original tweet here was from W. Mungan, W. Mungan on Twitter, and he did a screenshot of what it says on the PayPal website. Can I transfer crypto into and out of PayPal? And the answer is, currently, you can only hold the cryptocurrencies that you buy on PayPal in your account. Additionally, the crypto in your account cannot be transferred to other accounts on or off PayPal. So effectively, it's like a derivative. I mean, it's tough to say. Like, will PayPal be holding Bitcoin? I'm sure in some way, shape, or form. But will it be 100% backed? I would venture to say no. And Matt O'Dell chimed in here, he said, this should not surprise anyone.

Starting point is 00:08:40 easy mode from both a compliance and security perspective will become the industry norm within a few years. And so for me, I tweeted out actually in regards to this. I said that effectively, I remember when the idea of PayPal adding Bitcoin was looked upon like the holy grail. Now, sure, it's cool, I guess, for normies. And I think this is very much for people that will be onboarding in a FOMO state, right? They'll be worried about missing out. They already have PayPal. Oh, hey, I can just grab it. But for myself and in my tweet here, give me sovereignly held coin joined self-verified coins. I want them in my own custody, secured using my own hardware. I want them coin join so that I break the links between myself and my coins so nobody can peer in on my affairs. And I want to verify them myself with my own node. And I think this is kind of the trajectory of any

Starting point is 00:09:41 hardcore bitcoiner that's been around long enough. So hopefully, I'm very much hoping that people will maybe initially use PayPal because it's seen as something easy. But then they'll realize, hey, I can't send this to a Bitcoin wallet. What's up with that? Hey, I can't do X, Y, and Z. Why is that? And you'll get the phenomenon kind of like you saw when you had like AOL and Comcast. rolling out internet, but they didn't play nice together and there were these walled gardens, people will realize that there's an open network out there that they can utilize themselves, and they'll jump ship and PayPal will be kind of left either in the dust, or they'll have to open themselves up to add that functionality.

Starting point is 00:10:23 So, yeah, I'm hopeful. I think in general it's a very positive thing. Now, in my opinion, some more bullish stuff, or rather, yeah, this is bullish as well. Let's dive into this first. So from the BTC Times, this article is titled, publicly traded Bitcoin Fund in Canada's stock exchange surpasses $100 million. So reading in here, the Bitcoin Fund, read by an acquaintance of mine, Fred Pye, so congrats Fred.

Starting point is 00:10:52 An exchange traded fund or ETF operated by 3 IQ, a digital asset manager based in Canada, has surpassed the $100 million milestone. The company describes the Bitcoin Fund as the world's first, regulated ETF that trades on the Toronto Stock Exchange. The Bitcoin Fund currently has 7.5 million, 7.51 million stocks or units outstanding, according to 3 IQ. Following its 4% increase in the last 24 hours, its market cap has surpassed 100 million. Now, this was earlier in the day.

Starting point is 00:11:26 Again, Bitcoin is up even more since then. So, I mean, they've well surpassed 100 million at this point. Now, a major milestone for Bitcoin and 3,000. 3 IQ. So they listed on October 9th. This was back in, when did they list? They listed quite some time ago. October 1st back in, I want to say last year, I believe. Anyways, they've been around for quite some time, but they've also grown. And I think a symptom of that is the fact that as they grow and they issue more shares, which are backed by Bitcoin and custodied by Gemini, then the fund grows. And there's more interest and the value of the outstanding shares are going up as well. So again, kudos to Fred

Starting point is 00:12:14 and team at 3 IQ. You guys are killing it. Now, this news, I find more bullish than the PayPal news, if I'm totally honest. So this from CoinDesk, UK listed firm mode putting up to 10% of cash reserves into Bitcoin. So reading into it, it, Mode Global Holdings, PLC, a London Stock Exchange listed company, has announced plans to make a significant purchase of Bitcoin as part of its treasury investment strategy. In a press release on Wednesday, the FinTech Group said it will convert up to 10% of its cash reserves into the cryptocurrency as part of a long-term strategy to, quote, protect investors' assets from currency debasement. This is the exact fucking narrative that everybody is talking about and what is

Starting point is 00:13:06 in my opinion is likely to drive this next bull run. We've seen it across the board. Let's jump over. I'll read a little bit and then we're going to jump over to a website that kind of reiterates this. But with interest rates in the UK at a record low of 0.1%, Mode said that it would also seek to diversify away from low-interest money market instruments to maximize the value of returns from its recent initial public offering. Yeah, so it's, we've seen a lot of this. And when we hop over here to Bitcoin Treasuries in publicly traded companies, this is Bitcoin Treasuries.org created by Rodolfo Novak.

Starting point is 00:13:49 He created the coal card. And he put together this little website. And it basically just lists companies. that we know about that have treasuries that are partially or wholly put into Bitcoin, effectively, or allocated to Bitcoin. So you have, Micro Strategy was the big one that we heard about a little while back, and they were the big mover. They bought $425 million with a Bitcoin.

Starting point is 00:14:15 Well, that turns out that was a good buy because it's worth 490 mil now. They bought almost, they bought 0.182% of all existing Bitcoin or all Bitcoin that will ever exist. When you add up all of these companies that we know of that are holding Bitcoin as treasuries, it makes up for a whopping $785,99 Bitcoin, which is 3.74% of the entire supply that will ever exist. Guys, there's not a lot of this shit out there, and companies are gobbling it up. I've been, you know, gradually trying to modestly accumulate what I could over the years. But the pinch is coming. I'd say the pinch is here.

Starting point is 00:15:05 And I think what comes next is a FOMO on the level that we have not seen yet, both in retail and in industry, in treasuries and demands for. from institutional investors. I think that's what we're starting to see here. And I think it's going to get crazy. Now, I'm going to jump out of that really quick. I wanted to highlight this post from Marty Bent at Tales from the Crypt. And this is his issue from the Bent yesterday.

Starting point is 00:15:36 And he's talking about the CMBS market on the ropes. And so what is the CMBS market is talking about commercial real estate? So this tweet that he highlights from Charles Gasparino says, Breaking, CMBS traders say 90 to 120 day delinquencies on commercial real estate loans are surging from to 30 billion from only 4 billion just in June. As pandemic lockdowns, New York New work rules crush prices. An estimated 40 billion in CMBS are in default. The hardest hit are bonds.

Starting point is 00:16:16 with exposure to hotels. So I'll read a little bit and then just kind of give my thought. So the commercial mortgage-backed security market is in a bit of a crisis as a result of the forced, quote-unquote, two-week lockdown of the economy that has extended itself into its seventh month. This shouldn't be a surprise to anyone who possesses any inkling of common sense. If you force people to stay home from work, inducing mass layoffs and cratering economic activity, it is going to be hard for businesses to pay rent on the buildings they have leased to

Starting point is 00:16:51 conduct said economic activity. Couple this with the fact that many companies who work in the service economy and were able to keep their business afloat while working remotely are beginning to realize they may not need office buildings to deliver a quality service, and you have a recipe for disaster in the commercial real estate market. An even bigger problem in the collateralized products that bundle the business. commercial real estate mortgages together. As you can see from the tweet and the chart above, the amount of commercial real estate loans that are late on payment has ballooned significantly

Starting point is 00:17:27 since the beginning of the summer. The total amount of rent that has not been paid in 90 to 120 days has increased 7.5 times since June, rising from $30 billion to $30 billion from $4 billion, the percentage of all commercial real estate loans issued to hotels that have, have not been paid in 30 plus days is hovering around 20% while retail commercial real estate loans are hovering around 12%. Both tranches are experiencing significantly higher delinquency rates when compared to the aftermath of the financial crisis of 2008. A self-inflicted gaping gun wound that will probably take a while to heal. So Marty here is alluding to the fact that this is another 2008 financial crisis death knell just knocking at the door and what will the response be?

Starting point is 00:18:27 Will some of these companies just go under? Do they let them go under? My guess is no, it's just going to be more bailouts. So you have instances where you're just going to get more more money printing. Now the Fed has been trying to get this to be more of like a fiscal issue put on governments, but I don't think they'll be able to handle it. And I think that the Fed and central banks across the world are going to be forced to step in and bail out the companies. Again, it's not, it's hard. You don't want to feel, I feel bad for the companies, because, again, it wasn't self-induced. But that's what happens when you can't run your business. You're going to be out of a job. You're going to not be able to pay the bills.

Starting point is 00:19:13 and eventually the company may go under, and there's a lot of them out there. So what's the solution? In the government's eyes, probably getting the central bank to create more money and bail them out. What's the end product of that down the line is your money,

Starting point is 00:19:29 any savings that you have, are going to be worth less and less. It will be harder to keep up with costs and your bills. And the money that is printed will go to, you know, some businesses that probably need it, but also there's going to be a massive misallocation of capital too. And I guarantee that the businesses that really need it won't be the only ones that get this money.

Starting point is 00:19:57 And you'll see a furthering of the cantalon effect where the people at the top closest to the money spigot benefit the most. And you're going to see an increase in the wealth gap. And this is exactly why Bitcoin was created. So I don't know what to tell you guys. This is what this opt-out button was built for. We'll see. We'll see what happens. Now, a couple of exciting things that I'm very happy about.

Starting point is 00:20:24 One on the software front, Sparrow Wallet, just released a new release. This is desktop wallet. If you're unfamiliar, you can utilize it as just a standalone wallet. You can use your hardware wallets with it, or you can create multi-sig where you need multiple hardware wallets to approve a spend. And so they updated importing your Kobo Vault, which means you can now, instead of having to use the SD card, you can just scan a QR code and import it so you can use it there. And also they added support for the Bitbox, which I've also done a video on. So very excited for that. They also added transaction batching. So this helps you save on fees. If you have to send to a whole bunch of people, you can say you can construct the transaction and say, I'm sending here, here, and here, and then put that all out. in a single transaction that cuts down on how much space it takes up on the blockchain and thus cost you less than fees because Bitcoin is based on computational size as opposed to the amount spent. So be sure to check of the new Sparrow Wallet's wallet release.

Starting point is 00:21:26 I think with this, I'm ready to do a tutorial now. So look for that in the future. And finally, super stoked for this. Citadel 21 dropped its latest volume, Volume 7. So very exciting. I've got two print copies of this now. They've just done the second print copy and that arrived a little while back.

Starting point is 00:21:48 Very excited about those. But this is online only until they do a print copy. But if you don't currently have a subscription, if you want volume one, your shit out of luck. There will only ever be a thousand of those. And the same stands for volume two, three, four, from now on.

Starting point is 00:22:04 So if you want one, head over there, Citadel21.com. They do have, you can subscribe. Of course, they only accept Bitcoin. One of the few times that I'll spend my Bitcoin because I value what they've created and they only accept Bitcoin. I think we'll see more of that in the future. You'll see merchants saying, I don't want dollars.

Starting point is 00:22:27 If you want what I like, or if you want what I've created and you find value in it, you're going to have to get me some stats. And I love that about them. Good for them. It hurt buying it, but I just bought more sats. after so that's okay um anyways guys i'm gonna wrap up there thank you so much for watching and or listening a reminder one more time please do hit like subscribe and share all of those things mean a lot they really help the channel comment down below let me know what you saw thought about any of these channel

Starting point is 00:22:55 or any of these stories as well if you want to help with the channel another way you can hit up the sponsors i mentioned down below that was leaden crypto cloaks and cobo remember to retweet the show if you want one of those seed plates and if you really liked what you saw you can drop me a Bitcoin Lightning Network tip at my Tipin.combe.me page. That is t-I-p-p-in.m-me-slash-at-B-T-C sessions. And with that, I'm out. Have yourselves a wonderful day and a wonderful evening wherever you are, and I'll see you next time for your daily session.

BTC Sessions - PayPal Triggers MASSIVE Bitcoin Pump! EP110

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