EL SALVADOR IS BUILDING AN ENTIRE CITY ON BITCOIN WITH ZERO TAXES
Just the thumbnail suggests. Bitcoin city is going to happen and its going to have a lot of big perks such as no income tax, no personal tax and no capital gains tax were gon na. Take a look at exactly how thats gon na be built and how the money thats gon na flow into it, especially with crypto, is going to be massive. Also well. Take a look at uh, blocktopia and solana. Getting on board, which is all based on polygon, were gon na talk about uh a billionaire one of the early crypto. Investors is dropping ethereum and were also going to talk real quick about the show in dca today. So well go over all those things, but first take a look. Whats going on the market today, beautiful day sunday, nice day here in puerto rico and uh weve got a pretty good market cap. Nothing fantastic but well. Take it on a sunday were at 2.66, almost 2.7 trillion, depending on where you look at and the sentiment is neutral. I think people who are been in the space for a while we know were like yeah. It was a big dip and a pullback, but its okay, because you know, as time goes on, we know where things are gon na go in the future and thats. What were all here for bitcoin price uh, still below sixty thousand fifty nine four and as far as like the coins, as far as like what has been going up, ethereum is up to around 4 300, 436 and 24 hour changes.
Theres, no big winners. Solana still on the number five spot, its pretty good avalanche 14 and they are making big gains were gon na talk exactly about that today, uh crypto.com continues to massively overperform 28 percent, as they land that deal with uh to replace the staples center in la and Theyre going to be on a multi year deal for like 400 million dollars, so crypto is alive and well and its going to just gobble up everything. So the big thing that i want to know, though, is uh. Where are we in the uh in the uh cycle itself, and for that i like to take a look real, quick at just a month chain analysis, so crypto quant. If im going to take a look at uh, where we are as far as like price action. If we take a look at the at the reserves for all the bitcoin thats out there all the different exchanges, we see that, yes, we are still seeing people taking off bitcoin thats that little purple line right there off of the exchanges and holding on to it. They are not selling even uh with that massive dip people like what else you got because ive been in this game before i know exactly whats going to happen. Eath is even more of a play as a ton of youth has been taken off the exchanges as people are using, as for utility for gas gas prices for staking it for ethereum 2.
0 nfts everything you want to do, ethereum you have to do it with ethereum. Unfortunately, and those gas prices are getting astronomical, um all exchanges take her by then its just. What tells us that, as far as like whales and big individuals, and just individuals in general, are doing to push the to buoy the price, and we see right here and blow this up a little bit – we see right here as it goes down. There was a big massive spike in people buying because, like no no 58, 57 56 somewhere around there were not gon na. Let it go below that because its just a valuable asset and they picked it up and now were almost at sixty thousand. And then this is the big one to me, and this is the one to really really focus in on which is the all exchange estimated leverage ratio for all the exchanges out there. Although all the the uh leveraged plays that are going on. As far as the play and as is explained to me before crypto quant by the ceo of crypto quant, the kyung joo, once we start to hit the two, it is like massively massively over leveraged and we hit that number on the 14th of november uh. Today were looking at the 21st, it has subsided a little bit but were still at 0.19, so people are still playing the leverage game so expect some more volatility but not like it was at the all time highs people got liquidated, and unfortunately, if that was one That was you had to happen because thats what we need to push us up to the next level, then.
Lastly, the market value, realized ratio and uh were not even near the 3.5, which is at the very top and were not near uh 1.0, which is the like the bottom bottom, so thats just kind of what we see as far as on chain analysis. Also, if we want to take a look at where the top is, we can also take a look at the pi cycle top indicator by cycle top. This was been right. Four times retroactively. Yes, it was uh three times in the last one. It hit it on the nose when we hit when the uh 350 day moving average times two crossed over the 111 day moving average, its just just great information for you to know, but this is all i got ta know once those cross over. It usually signifies the top and thats exactly what happened on this specific day when we hit it at around 65, 000, 64, 000, and then it just crashed on or had a big pullback. I know when i say crash i was like. Was it a crash? It was a pullback make sure you dont say that sure whatever it was a pullback crash, we want to say so. Then we we had a pullback and uh now were just going back up again, so were nowhere near in my personal opinion, the top. I still see around 130k could be wrong. Let me know what you think about that in the comment section, so that is essentially the state of the market lets jump in todays top story, which is bitcoin city uh.
I saw this el salvador. Does it again thats? Really what it comes down to the presidents, uh ukulele bouquet, i always say his name wrong: sorry, um, the guys like a hes becoming a rock star in our space and uh. This is whats happening. El salvador is going to create bitcoin city uses 500 million, a planned one billion bond offering to buy more crypto. So this was the president live. It was at a uh at the crypto expo and you dont really see too many uh presidents on stage with their hats, on backwards and uh, just speaking to an audience like its no big deal. Im like this guys like a rock star. So this is what he said he goes look. Bitcoin city will be located along the gulf of fonseca near a volcano. What could go wrong im just kidding, so i dont think its been a really active volcano but theyre going to pull out the energy. The government plans on locating a power plant by the volcano to provide energy for both the city and bitcoin mining. The president said so. First of all, my question was wheres the gulf and second, because guess what i dont know and its right here so uh borders. Uh, honduras, nicaragua, nice little area, looks like right here. So volcanoes natural resources looks good. So then the city will be laid out in a circle like a coin, and the city center will be a plaza that will host to be a big bitcoin symbol.
Great thats, not the big thing: the city will have no income, no property, no capital gains or no payroll taxes. Let me say that one more time the city will have no income, no property, no capital gains or no payroll taxes. Well, how do they do that? Well, its the same type of thing as what weve been seeing with miami coin and new york city coin, and what i believe a bunch of different cities are going to do as well, which is where they have it on stacks, which is a smart contract which Is based off of uh the bitcoin network and theyre going to be able to stake those types of things and actually pull off some yield and thats going to help to offset taxes, uh mayor suarez from miami he said. Look he goes if we keep doing this. We could uh reduce our taxes for the entire city by 25 percent. Now that wasnt, that was an extrapolation. I dont know if its actually going to go through, but he said we made a lot of good money just by using this type of system so uh when we have something here, its the same but a little bit different. And what were seeing here is that el salvador plans initially a 1 billion dollar u.s bitcoin bond, a tokenized financial instrument developed by block stream on a liquid network. Of that amount, 500 million is going to be used to construct needed energy and mining infrastructure.
Then 500 million goes to buy even more bitcoin. That would bring the countrys treasury stash to just under 2 000 bitcoins and just in case you were wondering hows that all going well, they do have 1120 uh bitcoin. These were the dates that they purchased it september. 6Th the 7th the 20th and 28th october 28th and they purchased them between 50, actually, 43, 000 and 58 179. So on this last one october, 28th, theyre right about even but the other ones. I did this before bitcoin price today, bitcoin price a day is about lets just say: 59. 59. 000. I like round numbers its not but uh. Just hang with me. So before the difference they were up pretty big now, even with the dip. The value today between the value it was the difference theyve made just by making this just by making these these plays, is eight million thirty three thousand two hundred seventy dollars, thats, not bad for maybe some quick math september october. Two months you make eight million dollars and who knows what itll be in the next month or two? I think they could be uh. They could be one of the greatest investors of all time at what theyre doing right here. So, on top of that, to get it all into the meat and potatoes uh samson mao block streams, chief strategy officer, the 1 billion in tokenized bonds will be a 10 year. Us dollar denominated and pay 6.
5. Initially, by the time 10 years has elapsed, the apr will be 146 based on the prediction that bitcoin will hit a million dollars within the next five years. But let me just say this and theres some other stuff here, but uh it gets kind of boring. Let me just say this lets say it: doesnt hit a million lets, say bitcoin just goes to 500 000 in two or three years lets just say it goes to 250 000., so, instead of 146 percent. If you divide that by four, because we go from million to 250 000 still looking around 31 percent, uh apr so its a little bit better than actually putting your money into a bank as far as bonds uh, i dont want to laugh, but it really is Laughable, so if you have a bunch of investors like yeah sure well take that bet, we believe in the future, and that could be a pretty big play for a lot of people and on top of this, when we um the last part was pretty good. It says el salvador is hoping that by taking so much of the crypto out of circulation for so long, it helps to contribute to bitcoins price appreciation, which makes sense right. We see the same type of demand or more, but a lot less supply like we just saw with bitcoin and ethereum, and a ton of other different cryptos that are being taken off the exchanges and also, if you take a look at this for bitcoin treasuries, and You we can go through ill link this in the description.
You can check it out yourself, but it just breaks it down by etfs private companies, countries and public companies. If we see right here, weve got etfs countries, public companies, private companies. The total is around 1.5 million worth of bitcoin. That is pretty much locked up, especially if youre a micro strategy or, if youre a grayscale. So if el salvador is doing the same thing and then people like you or i you and i are doing the same thing – were just locking things up and different institutions and funds, and i mean who knows what other kind of countries are going to get into It they also lock it up. How long do you think before bitcoin does reach 150 250 500 1 million? I think thats the big question so that i think, is a pretty bullish news. Let me know what you think about that in the comment section lets move on to our next piece, where we talk about blacktopia and solana, so uh. As you know, ive been talking a lot about the metaverse. I think its the next big play. I think its a two or three year play if you just kind of sit on things and uh ive already done. My dollar cost averaging from 2017, 2018. 19, 20, 21. Now, im looking for the next thing and uh, this, i think, could potentially be it, but so with the metaverse not to get off topic. Is that look at who is investing in the metaverse? We just saw that gemini yesterday is dumping in 400 million dollars.
The bank of australia is also uh getting in on that purchase and youve got a lot of different players getting into the metaverse. Youve got a microsoft. Uh youve got an nvidia, youve got and youve got facebook, but i mean everybodys getting into your. They kind of know where things are going and salon is no different, so solana is a new tenant over at blocktopia. I dont know what blocktopia was so im gon na link this in the description as well. You can you can take a look at it. Its a pretty cool, looking place ill, be honest with you pretty slick. It almost looks like uh the ready player one or you know any other types of like metaverse plays. You can think of theres a lot of things going on here. But what really struck me was, first of all the amount of big names that are involved in this one i mean also youve got the gambling and the nfts and all that good stuff right, but the thing that really offsets it with the metaverses, if is, if Youre built on the ethereum and nfts, it kind of weighs things down its kind of expensive, but guess what this one? First of all, its built and backed uh by polygon and second of all, instead of just walking around in your in your browser, its going to be a virtual reality type of one. So this ill be doing more in depth analysis later on, but the big play that i see again uh for the metaverse is land.
I dont know exactly how everythings gon na work out. As far as like the games and the gambling, i cant get into gambling im an american citizen, so its not gon na work out for me, but the land. If you want to really get into where people are going, where their eyeballs are thats, where all the ad revenue is just like in the very beginning, it was radio, and that was where everybody put their ads on, and then it was the tv thats where everybody Put their ads on and thats where a lot of money went to, and then it was social media and now, just like you saw a bunch of ads on youtube that was laughable 10 years ago, with someone would be like youre going to put an advertisement on The internet that place thats, uh thats built for shucksters and all the people that will scam you out of your money and illicit activity and drug cartels. The internet yeah same thing again. So i see this is a pretty big play. Well see how it all unfolds, but again, if its built on polygon, you know things are pretty cheap and i like that anyhow. Let me just think about in the comment section and well finish up with uh dropping ethereum. This was uh pretty good before everybody gets up in arms about it. Let me just listen to the whole story: dont be uh too, judgmental yet ill. Tell you why so crypto billionaire abandons ethereum and heres? Why so? This was from uh zusu? Hopefully i said it right, not uh im not really good at this, but he says, look uh.
This was on november. This was yesterday. He goes ive abandoned ethereum, despite supporting in the past in the past. Yes, ethereum has abandoned users despite supporting them in the past. The idea of sitting around blank off watching the burn and and cannot concocting purity tests, while zero newcomers can afford the chain is just gross, and you have to understand that uh uh, this guy was a pretty big proponent of ethereum was really out there, but just Know that earlier today, an ethereum address associated with three arrows capital sent roughly 77 million dollars worth of eth to the ftx exchange. So you might have seen like a little bit of a dip, but didnt really seem to do too much because ethereums actually up in early november, three arrows capital was announced as one of the investors in blizzard a new fund whose purpose is to promote the development Of avalanche, so you can take it with a grain of salt, but there are some things that they that they say about ethereum and remember, like these guys have been uh theyre like one of the bigger this guys, one of the one of the bigger investors in The crypto, but they do make some pretty good points as far as like he says right here, ethereum culture suffers massively from the founders dilemma. Everyone is already far too rich to remember what they really set out to do. Perhaps a bear marker does need to remind them, or perhaps we must build elsewhere, but this is what it is again.
You can say it as like. Well, this is just the person who wants to get rich off an avalanche or you can just take a look at and go well. You know those ethereum gas fees are pretty darn high. So i would love to hear the discussion in the comments section. What you think about that and then to finish up well talk about dca today, so uh just so, you know its gon na, be me and james as usual were gon na rotate guests and its uh uh, mr cohen, benjamin cohen, from uh into the cryptoverse, so That will happen: uh 7 gmt sunday, 11 a.m, pacific time, if youre in the states. So, for me, in puerto rico, thats, like 3 p.m, so ill see you there for dca ill try to put the link if james gets it to me in time, but thats it for today. So look uh! If you stuck with me all the way in hand. First of all, thanks, i appreciate it if you liked todays video found some value, give it a thumbs up ill. Consider, subscribing everything we talk about. Is time sensitive thats it for today. So thanks so much for watching.