Bitcoin FAQ

00:02 hey everyone so I’m going to do a
00:04 frequently asked questions segment here
00:06 on bitcoin so here we go uh first
00:10 question I’m going to ask and these
00:11 first two questions are from my
00:12 mother-in-law so thank you shout out
00:14 right there uh it says can you do a post
00:16 explaining the coming digital dollar
00:18 that we keep hearing about and how or
00:20 why Bitcoin is a much safer alternative
00:22 so when people talk about a digital
00:24 dollar there’s a few different things
00:25 that they talk about but Mo the most
00:27 common is called a central bank digital
00:29 currency a
00:31 cbdc a cbdc is the government’s answer
00:35 to
00:36 cryptocurrency essentially when
00:38 cryptocurrency came along especially
00:39 Bitcoin specifically with a fixed supply
00:42 of 21 million coins um and people
00:44 started using it and now Bitcoin has a
00:46 total market value that’s larger than
00:48 silver and above $1.4 trillion worldwide
00:52 the government said uhoh we got to do
00:54 something and so rather than do the
00:56 responsible thing which is Stop Printing
00:58 all the money because if they Stop
01:00 Printing all the money then their own
01:02 dollars US dollar or whichever currency
01:05 around the world would be way more
01:07 valuable if they would just stop
01:08 printing so much of it but of course
01:10 when do politicians ever stop printing
01:12 money it’s the Magic Money printer it’s
01:14 the most fun thing they ever do is print
01:16 magic money that they get to spend and
01:17 you don’t so the government decided well
01:19 we’re not going to actually stop
01:21 spending money we’re not going to be
01:22 responsible with our currency so the
01:24 next best thing is to pretend that the
01:27 reason people are using Bitcoin is
01:29 because it’s digital now now that’s not
01:30 the primary reason the primary reason is
01:33 because it’s scarce there’s less of it
01:35 so it’s more valuable nobody can print
01:36 it that’s the the primary value of
01:38 Bitcoin is that it’s scarce uh just like
01:41 the primary value of gold is that it’s
01:42 scarce uh but the government said no no
01:44 no no that’s not what people really want
01:47 they want a digital dollar so the
01:49 government came up with this concept of
01:51 a central bank digital currency a cbdc
01:54 which is essentially a digital version
01:56 of the fiat currency which means madeup
01:58 currency that governments already have
01:60 like the US dollar Etc uh the problem
02:03 with a central bank digital currency
02:04 which is really terrifying is it’s
02:06 centrally controlled by the government
02:08 so not only can the government uh view
02:10 every transaction you make they can also
02:12 decide on a whim that they don’t like
02:14 how you’re spending your money and they
02:16 can decide all of a sudden to block
02:17 certain transactions or to reverse
02:20 current transactions or they can decide
02:23 that the amount of money you have in
02:24 your bank account is not the optimal
02:26 amount the government thinks you should
02:28 have and they can remove money from your
02:30 bank account uh even more so with a
02:32 central bank digital currency a cbdc the
02:35 government can actually put an
02:36 expiration date on your money so if they
02:38 decide you’re not spending your money
02:40 fast enough because they think you
02:42 should stimulate the economy um which
02:45 savings and investment is a much better
02:47 stimulant for the economy than uh than
02:49 just like frivolous spending but if the
02:50 government decides you need to do more
02:52 frivolous spending they can put an
02:54 expiration date on your money and for
02:55 example say if you don’t spend your cbdc
02:58 your Central Bank digital currency by
03:00 the end of this week we will
03:01 automatically deduct 1% or 5% and so
03:05 they can just uh declare that everybody
03:07 has to spend 5% of their money in all of
03:10 their bank accounts by the end of the
03:11 week and if they don’t then that money
03:13 will expire and be removed from your
03:15 account so the whole thing related to a
03:17 central bank digital currency is
03:18 terrifying um numerous pledges have been
03:21 made from Donald Trump to Ted Cruz to uh
03:24 numerous others that they will never
03:26 allow a central bank digital currency in
03:28 the United States it would require
03:30 Congressional approval even with
03:32 Congressional approval it would take
03:33 many years to implement and even so the
03:36 Central Bank digital currency would have
03:37 to compete with Bitcoin and nobody in
03:40 their right mind is going to um invite
03:44 or going to voluntarily use a um a
03:47 central bank digital currency when they
03:49 have an alternative like Bitcoin because
03:52 literally it’s the stupidest thing
03:53 humans have ever invented is a central
03:56 bank digital currency so not only do I
03:58 think we are unlikely to ever have a BDC
04:00 here in the United States uh there is
04:02 one in um there is one in China China is
04:06 heavily promoting it China has you know
04:08 tried every which way to stop people
04:09 from using Bitcoin people are still
04:11 using Bitcoin in China and they keep
04:13 promoting their Central Bank digital
04:15 currency and people keep not using it
04:17 because it’s a horrible idea and it’s
04:19 awful in every way so that’s what a
04:21 central bank digital currency is I don’t
04:23 believe it’s a threat in the United
04:24 States and even if it was I think
04:26 Bitcoin will outcompete a cbdc in every
04:29 way because uh a cbdc does not have any
04:33 of the benefits of Bitcoin all right so
04:35 that’s the quick primer on a cbdc uh
04:37 next up second question also from my
04:39 mother-in-law is what if the worldwide
04:42 web or the internet goes down or it was
04:44 uh you know blown to Smither by aliens
04:47 uh would that be a problem for Bitcoin
04:49 how would we use Bitcoin um etc etc so
04:53 great question also there I get this
04:55 question a lot give me one second
05:00 so here’s the thing virtually all of the
05:02 money in the world is already digital
05:04 meaning if aliens blew the financial
05:07 system to Smithers or if there was a EMP
05:11 blast an electromagnetic pulse blast
05:13 that disabled the electronic system or
05:15 the internet went down the vast majority
05:17 of your money in your bank would go down
05:19 also uh so one it’s extremely unlikely
05:22 that the internet ever goes down for an
05:24 extended period of time around the world
05:26 and second if it did it would take your
05:28 bank and all your bank accounts and at
05:30 and everything else with it and the
05:32 likelihood that is that Bitcoin would be
05:34 the very last thing to go down and the
05:37 very first thing to come back up and in
05:40 that intern period uh unless you have
05:42 like physical cash in your hands that
05:45 you can transact or gold or silver coins
05:47 you know the world is just going to be
05:49 back to barter for a short period of
05:50 time um but again that’s the probability
05:53 of that I would say is zero uh Bitcoin
05:56 is running on millions of computers
05:58 around the world it only requires one of
06:01 those computers to be on in order for
06:02 the Bitcoin Network to work and the
06:04 Bitcoin uh nodes are even running on
06:06 satellites so even if something happened
06:08 to the Earth Bitcoin would still be
06:10 running by satellites and it would be
06:11 back up as soon as anybody put up a
06:13 satellite dish magically Bitcoin would
06:15 be back online I can promise you your
06:17 Traditional Bank account would not come
06:19 back online just because you got a
06:20 satellite dish I promise you that every
06:23 other financial institution would take
06:25 forever to come back online as compared
06:28 to uh how long it takes bit going to
06:30 come back online so I don’t consider uh
06:32 cbdcs to be a significant threat I don’t
06:35 consider the internet just going
06:37 completely down uh as a result of you
06:40 know anything I don’t see that as a
06:42 likely or uh a threat worth worrying
06:45 about uh regardless uh as well all right
06:48 so the third thing I wanted to cover in
06:49 this video is what is the Bitcoin having
06:52 or some people call it the havening so
06:55 when Satoshi Nakamoto invented Bitcoin
06:58 he uh established a apply schedule which
07:01 is how are we going to get these 21
07:03 million Bitcoin that will ever exist how
07:05 are we going to get those into the wild
07:06 into the hands of people to use them and
07:09 so what he came up with is a very simple
07:11 math formula that says we’re going to
07:13 release 50 Bitcoin every 10 minutes into
07:16 the wild and it’s uh the way they’re
07:18 released is by paying Bitcoin miners
07:21 which are the people that secure and
07:23 audit the Bitcoin Network so everybody
07:25 that is securing and auditing the
07:27 Bitcoin Network originally got paid 50 B
07:30 Bitcoin every 10 minutes but in order to
07:32 make sure that the supply was limited
07:34 Satoshi Nakamoto set a uh a a formula in
07:39 place where the supply dropped in half
07:41 every four years and it just so happens
07:43 that it aligns roughly with the
07:45 presidential election Cycles so it’s so
07:47 far happened in presidential years such
07:49 as 2012 2016 2020 and this year 2024 so
07:53 that is coming up in about 35 days
07:56 around call it uh April 19th or so in
07:59 the ball
08:00 Bitcoin will go through its I believe
08:02 fourth having or havening and what will
08:05 happen right now so for the first four
08:07 years up until 2012 there was 50 Bitcoin
08:09 issued every 10 minutes then it dropped
08:11 to uh TW excuse me to 25 Bitcoin for the
08:15 next 4 years then it dropped to uh 12.5
08:19 Bitcoin for the next four years and now
08:21 it is at 6.25 Bitcoin so for the last
08:23 four years every 10 minutes the Bitcoin
08:26 miners uh when they uh mine a new block
08:29 of Bitcoin transactions they get
08:31 rewarded in exchange for securing and
08:33 auditing the network they get rewarded
08:35 with 6.25 Bitcoin that will drop in half
08:38 again around April 19th and that will
08:40 drop to
08:42 3.125 Bitcoin now why does that matter
08:45 well it matters because right now the
08:48 equilibrium price uh assumes miners are
08:52 selling 900 Bitcoin every um every 10
08:56 minutes sorry not every 10 minutes every
08:58 day as a result of getting 6 .25 Bitcoin
09:00 every 10 minutes that is a total of 900
09:03 Bitcoin a day so right now the Bitcoin
09:05 miners are selling into the marketplace
09:08 900 Bitcoin every day well after April
09:11 19th or so the Bitcoin miners will only
09:14 have 450 Bitcoin to sell to the network
09:18 every day so the result as a result when
09:20 you have a supply and demand uh balance
09:23 and suddenly there’s half as much new
09:26 supply of Bitcoin that is produced to
09:28 the marketplace the only thing that can
09:30 reestablish uh that Supply demand is for
09:34 the price to go up because the supply
09:36 cannot go up because of bitcoin’s fixed
09:38 Supply and so when the demand stays
09:40 stable and the supply drops in half of
09:43 new coins the only way to establish a
09:45 new equilibrium is for the price to rise
09:47 so we’ve seen a huge runup in the price
09:50 of Bitcoin leading up to today above
09:53 $72,000 per coin as I uh talk right now
09:57 but that
10:12 18 months following the having there’s
10:14 been a huge runup in the price of
10:17 Bitcoin um so the runup the 2012 having
10:20 resulted in a huge runup all the way
10:22 through the end of 2013 the 2016 having
10:25 resulted in a huge run price run up all
10:27 the way through the end of 2017 again
10:29 always the year after the 2020 having
10:31 which happened in April in March or
10:33 April of 2020 resulted in a huge run up
10:36 in price all the way through uh towards
10:39 the end of 2021 again the year after and
10:56 would four is the Bitcoin exchange
10:58 traded funds the bit
10:60 ETFs that were approved in January of
11:02 this year just two months ago the
11:04 Bitcoin ETFs have put a huge amount of
11:08 demand pressure on the price of Bitcoin
11:10 so the amount of total buyers as the
11:13 result of being able to buy Bitcoin by
11:15 just typing in fbtc for example the
11:17 Fidelity Bitcoin uh exchange traded fund
11:20 which the ticker symbol is fbtc as a
11:23 result of plugging that into any
11:25 brokerage account you can now buy
11:26 Bitcoin
11:41 it’s a lot easier for them to just plug
11:43 in their bro brokerage account and buy
11:46 that way rather than set up a new
11:47 account in a new medium so we’ve have we
11:50 have this massive amount of demand that
11:52 came online in January of this year as a
11:54 result of the Bitcoin ETFs and now that
11:57 demand is facing a drop in Supply coming
12:00 up around April 19th where there will be
12:03 half as many Bitcoin so right now all of
12:05 the demand some of that demand is being
12:07 offset by 900 new Bitcoin that is being
12:11 produced
12:25 every and the total demand for Bitcoin
12:27 in the world will have to uh is just
12:29 going to there’s no way um uh for that
12:33 demand to be fulfilled other than the uh
12:36 the price to go up now the price can
12:37 also go down obviously something could
12:39 uh spook the market everybody sells
12:41 their Bitcoin for a period of time then
12:43 everybody realizes that whatever it is
12:45 that spooked the market was not a big
12:47 deal after all then they go back and buy
12:49 a bunch of Bitcoin so the price will
12:50 still go up and down but I think the
12:52 Bitcoin having is uh is still a huge
12:54 deal and historically
13:10 fail worldwide um the yeah if the
13:14 internet goes down yes Bitcoin does go
13:16 down if the entire internet is down but
13:18 Bitcoin will be the very last thing to
13:20 go down if the internet goes down and it
13:22 will be the very first thing to come
13:24 back up as soon as the Bitcoin comes
13:26 back up as soon as the Bitcoin Network
13:28 um or sorry as soon as the internet
13:29 comes back up Bitcoin would be the very
13:31 first thing to come back up because
13:32 Bitcoin unlike your bank account Bitcoin
13:34 is running on satellites in addition to
13:37 tens of thousands or even millions of
13:39 computers around the
13:54 world month and uh I will anticipate a
13:57 huge price run up between now and at
13:59 least November of
14:01 2025 which is more than 18 months from
14:04 now I anticipate a huge price run up uh
14:07 if history is any guide based on the the
14:39 uh let me know if you prefer these live
14:42 videos or if you prefer written comment
14:44 content I know when I put written
14:46 content out it’s really long but I also
14:48 know that these uh videos run long as
14:50 well so let me know if you prefer
14:51 written content or videos and I’ll try
14:54 to serve you the best I possibly can in
14:56 whatever medium is best for you just let
14:58 me know thanks everyone