The engine will eventually overheat if you don't pass air over cooling fins. Any oil or water on the outside will vaporize.
If you run it stationary for a significant amout of time, place a big fan in front of it.
Also, an engine that cools down with humid air in the crankcase, condenses water on the inside walls. This vaporises when the engine heats and exits as white vapor, some refer to as smoke. The crankcase is vented to the atomosphere where it sucks in and breathes out. This is call and engine breather tube. Depending on the outside temps and the amount of condensation, it can take 20 minutes for the engine assembly to achieve full operating temp and vaporize the condensation.
The same thing happens in the exhaust system. Stock bikes have a low point drain, but exhaust pressure can push it out any place that is not sealed.
If your engine still has the stock compression ratio, you need only use low grade regular gasoline.
I could not tell from your video where the smoke is that you refer to.
Cheers,