STRATEGIC BITCOIN RESERVE signed into law! So why is Bitcoin still CHEAP?!?

00:01 Morning everyone. So, a strategic
00:03 Bitcoin reserve was signed into law last
00:06 night. So, why is Bitcoin still cheap?
00:08 Why is it not already gone all the way
00:11 to the moon? Why is the price not way
00:13 way way up? Uh, the short take is
00:15 because financial markets of any kind
00:17 are irrational in the short term. Uh,
00:20 but let’s talk through all of it. Okay.
00:21 So, what actually happened? Well, last
00:23 night, Donald Trump signed a strategic
00:26 Bitcoin reserve into law along with
00:29 separately a digital asset stockpile.
00:32 Uh, the strategic Bitcoin reserve will
00:35 hold only Bitcoin, the real Bitcoin,
00:37 BTC, the real Bitcoin that’s trading at
00:40 about $90,000 per coin right now. Uh,
00:44 that is the only thing that will be in
00:45 the strategic Bitcoin reserve. Uh it
00:47 states that the US government will not
00:50 ever sell any of the bitcoin in the
00:52 reserve and will only acquire it shall
00:55 find tax uh that the treasury secretary
00:58 and the secretary of commerce shall find
01:01 ways of acquiring more bitcoin that is
01:03 budgetneutral meaning they cannot use
01:06 direct tax dollars to buy bitcoin but
01:09 they can come up with all sorts of
01:10 creative roundabout indirect ways of
01:13 using financial resources of the US
01:15 government to buy more bitcoin. which
01:17 they will do. So, the US government will
01:19 be buying Bitcoin for the strategic
01:21 Bitcoin reserve. So, the strategic
01:23 Bitcoin reserve, the Bitcoin that the US
01:25 government already has, which is about
01:27 200,000 Bitcoin, that goes in the
01:30 strategic reserve, and they only add to
01:32 it by buying more separately. There is a
01:35 digital asset stockpile. All of the
01:37 digital assets other than Bitcoin that
01:38 the US government owns will go in a uh
01:41 digital asset stockpile. The government
01:44 will not buy any more of those assets
01:47 and will only sell those assets, not
01:50 buy. So the Bitcoin never gets sold and
01:52 only bought and everything other than
01:54 Bitcoin only gets sold but never bought.
01:58 So they both get moved sort of
01:60 separately. The Bitcoin goes into a
02:01 strategic reserve. The other stuff goes
02:03 into a digital asset stockpile. The
02:06 reserve only grows. the stockpile only
02:08 shrinks unless they get more of the
02:10 stockpile assets through civil asset
02:12 forfeite or criminal forfeiture of some
02:15 kind. Okay. Uh so huge news and very
02:18 positive for Bitcoin. The upside because
02:20 they’re not using directly using
02:23 taxpayer dollars to buy Bitcoin is that
02:25 nobody has a reason to be upset about
02:27 this thing. So even the people who are
02:29 not fans of Bitcoin or even the very
02:32 small shrinking dwindling number of
02:33 people that hate Bitcoin for some
02:35 ridiculous reason have no reason to be
02:37 upset because their tax dollars are not
02:39 directly going to buy Bitcoin. So they
02:41 have nothing to complain about. One
02:45 second. So huge uh huge upside there.
02:48 Nobody can complain that their tax
02:50 dollars are buying Bitcoin when they
02:51 don’t want to. The government will
02:53 however buy more Bitcoin. uh they’ll
02:56 just do it through creative indirect
02:58 means and uh the bill or the uh
03:00 executive order actually says shall it’s
03:03 not may buy more Bitcoin it’s shall buy
03:06 more Bitcoin. So anyway um so very
03:08 positive uh as you know I’ve never been
03:11 a huge fan of the government owning the
03:13 best money in the world. I think the per
03:15 the pros of a strategic Bitcoin reserve
03:17 outweigh the cons. Um, the cons being
03:20 that the government owns more of the
03:22 best money in the world, which means you
03:24 own potentially less of it because the
03:26 more the government owns, the less there
03:28 is for you. So, I’m not a fan of the
03:30 government owning uh Bitcoin at all, but
03:33 if they’re going to own it, it’s better
03:34 to be in a strategic Bitcoin reserve.
03:36 And obviously, that has a huge huge huge
03:39 positive signaling effect to the
03:41 marketplace. So there even in 2025 where
03:45 it’s obvious to everyone that Bitcoin is
03:48 the future of money. Well, not
03:50 everybody. It’s obvious to everybody who
03:52 spend at least 100 100 hours studying it
03:54 that Bitcoin is the future of money.
03:56 There’s still a huge number of people
03:58 that have not done the work, including
03:60 hedge funds, family offices, Wall Street
04:02 investment bankers, and all all of that
04:05 who are looking for signals from the
04:06 marketplace to say, “Hey, is this asset
04:09 safe? Is it mainstream? Is it something
04:11 that the that’s going to be widely
04:13 adopted? Well, the number one most
04:15 powerful largest economy in the world
04:19 just established a strategic Bitcoin
04:21 reserve yesterday. So, if you’re on Wall
04:23 Street and you’re just not sure if this
04:25 Bitcoin thing is real or if you’re just
04:27 not sure if it’s sticking around, the
04:29 number one most powerful country in the
04:30 world just adopted a strategic Bitcoin
04:32 reserve. So, if that leaves any doubt in
04:35 anyone’s mind, I don’t know how that
04:37 even is. Um but anyway, huge news. Uh
04:40 the language of it is very
04:42 wellcraftrafted. The people who crafted
04:44 it clearly knew what they were doing
04:47 differentiating between Bitcoin and the
04:50 other sort of in my opinion junk digital
04:53 assets. They clearly knew what they were
04:55 doing by the way they structured it to
04:57 eliminate any blowback from anyone
04:58 complaining about their tax dollars
04:60 being used to buy Bitcoin, but also the
05:02 way they structured it with a strategic
05:04 asset uh strategic reserve for Bitcoin
05:07 and only an asset stockpile for the
05:09 other stuff and the way they structured
05:11 it where Bitcoin can only be bought and
05:13 the other stuff could only be sold. Um
05:15 anyway, so it’s it’s really brilliant.
05:16 It’s really well written. It’s very
05:18 straightforward and it’s just beautiful.
05:20 So, um, all right. So, the second
05:22 question is, if this big gamechanging
05:25 worldwide news for Bitcoin just happened
05:28 last night, less than 24 hours ago, how
05:31 is Bitcoin only at $90,000 per coin? The
05:33 answer is because markets are very
05:35 irrational in the near term. First of
05:37 all, Bitcoin and all other assets are
05:40 facing huge headwinds right now with
05:42 global uncertainty. uh bonds in Europe
05:45 are really really really high as people
05:48 are just worried about sort of you know
05:50 massive recessions, massive money
05:52 printing, massive instability. Uh
05:54 China’s economy is having all sorts of
05:56 issues. So slowly things are marching
05:58 from huge problems in China now there’s
06:00 huge problems in the in Europe and now
06:03 we’re seeing some of those cracks and
06:05 problems in the US economy with you know
06:07 companies and governments just uh under
06:10 mountains of debt. And when people get
06:12 that way, they just start selling stuff.
06:14 Even if it makes no sense and it’s not
06:16 rational, they just sell stuff because
06:18 they’re scared. So, Bitcoin is subject
06:20 to that as long as with all other
06:22 assets. But the other thing too
06:24 is people have an unbelievable ability
06:28 to have expectations higher than any
06:31 reasonable reality. So this happens very
06:34 frequently with financial markets where
06:36 for example Amazon will announce that
06:39 their profits doubled the previous
06:41 quarter but the stock price will
06:43 actually go down because everyone was
06:45 hoping that the the profits would triple
06:47 the previous quarter. So it’s almost
06:49 like no matter what you do, it’s very
06:52 difficult to impress anyone in financial
06:56 markets, which is why positive news is
06:59 often met with a drop in that assets
07:02 value. Again, it happens all the time
07:04 with Amazon, Tesla, Apple, Microsoft,
07:06 Google, Nvidia, and uh the largest most
07:10 successful companies ever. uh in the
07:12 near term they get a stock drop because
07:14 some new news they announced was
07:17 slightly less amazing than whatever they
07:20 could have hypothetically announced that
07:21 people were hoping. So again this
07:23 happens all the time where companies
07:24 will announce recordings but everybody
07:27 was expecting sort of record plus
07:29 earnings or they instead of doubling
07:31 they were expecting tripling. So, uh,
07:34 apparently when the the announcement
07:35 happened yesterday, there were a bunch
07:37 of short-term traders. These are people
07:39 buying and selling Bitcoin on a daily
07:40 basis, an hourly basis, or even
07:42 minute-by-minute, which virtually
07:44 everyone who tries to do that loses
07:46 money. Like more than 99% of people who
07:49 try to do that with with any asset like
07:51 Bitcoin lose money in the long term.
07:53 Everybody just not everybody, the people
07:55 who try to do it just can’t they can’t
07:57 help themselves. They’re like degenerate
07:59 gamblers. But anyway, so a bunch of
08:01 people had bought Bitcoin thinking that
08:04 when a strategic Bitcoin reserve got
08:05 announced that the US government was
08:07 somehow going to buy like some gazillion
08:09 trillion dollars of it the next day.
08:11 Well, that was never going to happen.
08:13 There’s not the political will to do
08:14 that right now. Um because Bitcoin is
08:17 not well known enough among the average
08:19 people for that to be like a huge thing
08:21 that the government’s going to do. I
08:22 mean, still a tiny percentage of
08:24 Americans own Bitcoin. A tiny
08:26 percentage. So the government was not
08:28 going to wake up and buy a trillion
08:30 dollars of Bitcoin this morning. That
08:32 was never going to happen no matter
08:33 what. So some of the people who are
08:35 selling Bitcoin right now or last night,
08:38 it’s it’s mostly recovered. So at
08:40 $90,000, the dip, you know, the
08:43 executive order was signed, the price
08:44 dipped for a matter of hours, and now
08:46 it’s basically back to higher than it
08:48 was before the executive order was
08:49 signed. But in that dip, the people who
08:51 were selling Bitcoin were people that
08:53 were disappointed that the government
08:55 was not going to buy insane amounts of
08:57 Bitcoin the very next day, thereby
08:59 making them rich on a 24-hour trade. Um,
09:02 again, all that’s stupid. It’s high
09:03 school drama. What does this mean? What
09:06 this means in the grand scheme is the
09:08 number one most powerful country in the
09:10 world with the largest economy in the
09:12 world just established the Bitcoin a
09:14 strategic Bitcoin reserve. What does
09:16 that mean? It is now much more likely
09:19 that companies will establish strategic
09:21 Bitcoin reserves, that other countries
09:24 will establish strategic Bitcoin
09:26 reserves, that individuals will acquire
09:29 more Bitcoin. So in the long term, this
09:31 is insanely positive and the upside is
09:34 incredible. In the near term, people
09:37 will be irrational and people will do
09:39 stupid stuff and people will have
09:40 unrealistic expectations and people will
09:43 misread, you know, executive orders and
09:46 it’s just humans acting like humans. Uh
09:49 the same thing happened uh last year
09:52 with the exchange traded funds. The
09:54 Bitcoin ETFs, exchange traded funds were
09:57 the most successful ETF launch in all of
09:60 ETF history, which is a huge deal. It
10:02 was one of the most successful thing
10:04 that’s ever been released on Wall Street
10:05 was the Bitcoin exchange traded funds
10:07 that let you buy Bitcoin easily within a
10:10 retirement account or a brokerage
10:12 account. So, right after that was
10:15 announced and went live, the price
10:17 temporarily bumped up from like 47,000
10:20 to 49,000. And then over the next couple
10:23 weeks it dipped all the way to under
10:25 40,000 before rebounding and then
10:28 ultimately going up to now 90,000 uh or
10:31 even before uh you know before Donald
10:34 Trump was elected it went as high as
10:36 74,000. Okay. So the price almost
10:39 doubled but in the near term right after
10:41 the ETFs were announced it dipped. Well
10:43 why does it dip? Why did it dip? because
10:45 some short-term traders were expecting
10:46 bit, you know, they were expecting
10:48 literally every person on the planet to
10:50 immediately buy unlimited amounts of
10:52 Bitcoin the same day. Well, that was not
10:54 going to happen. It takes people time to
10:56 understand Bitcoin. It takes them time
10:58 to allocate re, you know, financial
10:60 resources, to move things around, to get
11:02 things set up to buy the Bitcoin they
11:04 want to buy and that takes time. So in
11:07 the week or two after the ETFs were
11:10 approved and started trading, there was
11:12 a dip in the price before it recovered
11:14 and then ultimately the price has has uh
11:16 more than doubled now from that price.
11:19 Um so what was going on there? Well, the
11:21 same thing. Traders had irrational
11:23 expectations and they got, you know,
11:26 screwed out of their Bitcoin and they
11:28 sold and they walked away and then it
11:30 went way up, which is what, you know,
11:31 what happens regularly. So, you may be
11:33 thinking, well, why would I not wait for
11:35 positive news and then the dip after the
11:38 positive news to buy Bitcoin? And the
11:40 answer is because it’s erratic because
11:42 people are irrational. So, if you had
11:44 done that on election night on November
11:46 5th of last year, you would have
11:48 completely and totally missed out
11:50 because unlike the Bitcoin ETF launch or
11:53 the strategic Bitcoin reserve
11:54 announcement, there was no dip when
11:57 Donald Trump was elected. Basically,
11:59 Bitcoin went on a tear from 90, what was
12:03 it? 67,000 to
12:05 $109,000. Um, and again, now it’s at 90,
12:08 but even if you look at it from today’s
12:10 price of 90,000, it went on a tear from
12:12 67,000 to $90,000. That’s a massive
12:16 that’s a 50% or something like that. Not
12:18 quite. Um, a massive uplift on the
12:21 price. Um, and there was no dip. So, you
12:25 know, sometimes there’s a dip after
12:26 positive news because people were
12:28 expecting something even more. Often
12:30 there’s not a dip after positive news.
12:32 The price just takes off. There’s
12:34 absolutely no way of predicting whether
12:36 the short-term traders that are
12:38 completely irrational, there’s no way of
12:40 predicting how irrational or which
12:42 direction irrational they will be. Which
12:45 means all you can do is the same thing
12:47 you can always do, which is buy as much
12:48 Bitcoin as you can and hold on to it as
12:51 long as conceivably possible. One
12:52 second.
12:56 So, was the the news yesterday extremely
12:58 positive? Yes. Did the price dip in the
13:01 few hours after? Yes. For completely
13:04 irrational reasons. Is the price back up
13:06 to above where it was yesterday? Uh,
13:10 yes, it is right now. Now, the stock
13:12 market opens. It’s 8:03 a.m. The stock
13:14 market opens in 27 minutes at 9:30
13:17 Eastern time, which is 8:30 Central
13:19 time. So, the stock market opens in 27
13:22 minutes at 8:30 a.m. Central time. And I
13:25 don’t know what’s going to happen. Uh,
13:27 is everybody on Wall Street going to
13:29 realize that this is a huge deal and,
13:32 you know, buy Bitcoin? I don’t know.
13:34 It’s probably going to take time. Is are
13:37 the people on Wall Street going to be
13:38 the same as the short-term traders that
13:41 saw the Bitcoin Reserve were hoping that
13:44 the US government was going to buy
13:45 hundreds of billions of dollars
13:46 instantly, and it’s not. It’s going to
13:49 buy it slowly and in a roundabout way.
13:51 And are people on Wall Street going to
13:53 dump the Bitcoin at 8:30 a.m. this
13:55 morning? I have no idea. It makes no
13:58 sense. These short-term traders are
13:59 completely irrational and do stuff that
14:02 makes just no sense all the time. And
14:04 again, it’s not unique to Bitcoin. They
14:05 do this with every asset. So, all that
14:08 matters is the long term. And in the
14:09 long term, this news of a strategic
14:11 Bitcoin reserve that was signed into law
14:13 yesterday is a huge deal. It is a huge
14:16 deal for the long term of Bitcoin, which
14:18 means if I were you, you should do what
14:21 I’m doing, which is buy as much Bitcoin
14:22 as you possibly can and hold it for as
14:24 long as conceivably possible. That’s how
14:26 that works. Um, and again, in the long
14:29 term, the the bit Bitcoin exchange
14:32 traded funds, ETFs have been huge for
14:33 Bitcoin. Bitcoin has more than doubled
14:35 in price since the Bitcoin ETFs were
14:37 approved. But it took some time, and the
14:40 same is true here. This is a huge deal.
14:42 It’ll take some time. Maybe it won’t
14:44 take some time. Maybe we’ll just go
14:46 straight up vertically for a while. I
14:48 don’t know. Maybe it’ll dip. Maybe it’ll
14:50 go sideways grind trying to shake
14:53 everybody out for months before it goes
14:55 up. I don’t know. But what does matter
14:57 is in the long term, I believe Bitcoin
14:59 will outperform every other asset you
15:00 could possibly own. The news yesterday
15:02 about the strategic Bitcoin reserve was
15:04 very wellcraftrafted. It hit the sweet
15:07 spot in my opinion of good public
15:10 policy, especially for someone like me
15:12 who does not want the US government to
15:14 buy up all the Bitcoin or even a lot of
15:16 the Bitcoin. Um, so it was crafted
15:18 beautifully, very positive. I think it
15:21 it hit the sweet spot. It’s just right.
15:23 And uh now most importantly, probably
15:26 the thing I’m most excited about from
15:28 yesterday is it gets the strategic
15:30 Bitcoin reserve out of the way because
15:32 what I really want, as for those who
15:35 have watched all my videos know, what I
15:37 really want is the elimination of
15:39 capital gains tax on Bitcoin. That would
15:42 be a much bigger deal for Bitcoin than a
15:45 strategic Bitcoin reserve. Um, the
15:47 reason for that is the the number one
15:50 thing that is holding Bitcoin back from
15:52 being used as a transactional medium of
15:55 exchange for people buying coffee and
15:57 everything like that. Obviously, there’s
15:59 infrastructure that has to be in place
15:60 with point of sale terminals and
16:01 everything that support Bitcoin. Uh, but
16:04 the number one thing from a public
16:05 policy or regulatory or tax perspective
16:08 is capital gains tax on Bitcoin. Now, if
16:10 you’re using the Coinbase debit card
16:12 from Coinbase, they keep up with all of
16:13 your taxes, so you don’t have to worry
16:15 about it. But if you’re using any other
16:17 Bitcoin service, um they all try to keep
16:20 up with your taxes, but you know, it’s a
16:21 little hit or miss. A lot of people do
16:24 not want to buy use Bitcoin to buy stuff
16:27 because they’re afraid of how they’re
16:29 going to have to keep up with and track
16:31 the capital gains on Bitcoin. So, if you
16:33 buy it at 90,000 a coin, you you know,
16:36 you buy a cup of coffee at $110,000 a
16:39 coin, you have a capital gains on that
16:41 $3 cup of coffee, you owe, you know,
16:44 whatever it is, 10 cents of capital
16:46 gains tax or two cents of capital gains
16:48 tax or some microscopic amount. It’d be
16:51 whatever it is you bought it for. Well,
16:53 let me do the math. You bought You
16:55 bought $3 of Bitcoin at 90,000 a coin.
16:58 You bought a $3 and I don’t know 30 cent
17:03 something at 100$1 100,000 a coin. Your
17:07 gain was 30 cents. Your tax rate is 20%.
17:11 So you owe 20% of 30 cents and so you
17:15 owe like 6 cents. So but people don’t
17:17 want to keep up with that. They’re like
17:18 hey I buy I’m buying everything at a 20
17:21 or 30 or even 50% discount on my life or
17:24 in my case even more than that. But, you
17:27 know, that still means when everything’s
17:30 massively on sale, there’s still some
17:32 tiny amount of that is capital gains
17:33 tax. So, now that the strategic Bitcoin
17:36 reserve is out of the way, it lets all
17:38 of the people that were focused on the
17:40 strategic Bitcoin reserve, the massive
17:42 army of lobbyists and political
17:44 consultants and lawyers and accountants
17:46 and all of those people that are
17:49 representing the cryptocurrency industry
17:51 as a whole. It lets all of those people
17:53 pivot to the elimination of capital
17:56 gains tax on Bitcoin and any other
17:59 cryptocurrencies that are made in
18:01 America. Um, nobody knows where Bitcoin
18:04 was made because nobody knows where
18:05 Satoshi Nakamoto was from even though uh
18:09 almost everybody speculates that he was
18:11 an
18:12 American. Anyway, most most of the
18:14 candidates that could have been Satoshi
18:16 Nakamoto are Americans. Um but anyway,
18:19 uh all of the discussion around that
18:21 involved Bitcoin and any other
18:23 cryptocurrency that’s made in America
18:25 being uh exempt from capital gains tax.
18:29 So now the best thing about the
18:31 strategic Bitcoin preserve, literally
18:32 the best thing about it is it lets
18:34 everybody pivot to the elimination of
18:37 capital gains tax on Bitcoin and other
18:41 made in America uh digital assets. um
18:45 which would be a huge deal because it
18:47 would pave the way then for Bitcoin
18:49 being used as a transactional medium of
18:52 exchange for day-to-day purchases
18:54 without having to use something like the
18:55 Coinbase debit card that’s going to
18:57 track everything including all the taxes
18:59 on the back end. So that is what I am
19:01 most excited about. I am most excited
19:03 about the strategic Bitcoin reserve to
19:05 get it out of the way so that we can
19:07 focus on the elimination of capital
19:09 gains tax which will then massively
19:12 accelerate the adoption of Bitcoin as
19:15 not only a store of value asset uh and
19:18 that function of money but as a
19:20 transactional day-to-day medium of
19:21 exchange without having to use something
19:23 like the Coinbase debit card uh to keep
19:26 up with all of your taxes and stuff at
19:28 Coinbase on the back end. So huge news
19:30 yesterday. It’ll take time for that
19:31 effect to be to play out in the market
19:33 and for the price to reflect it. But
19:36 huge news yesterday with strategic
19:38 Bitcoin reserve. Same advice as always.
19:40 Uh even though this is not financial
19:42 advice, buy as much Bitcoin as you can
19:45 and hold on to it as long as conceivably
19:47 possible. That has never been a bad