Bitcoin will 10X from here. Why am I so sure? Here’s Why!

00:01 Bitcoin will more than 10x in value from
00:04 where we are today. It could take five
00:06 years, could take 10 years, but it will
00:08 more than 10x in value from today to
00:10 more than $1 million per coin. Why am I
00:13 so sure? A bunch of reasons. Let’s start
00:15 with the most the easiest ones, which is
00:17 gold, the physical yellow metal. All the
00:20 gold in the world that humans own as a
00:22 store of value. Now it has some
00:24 decorative and industrial uses. But the
00:26 vast majority of the value of gold in
00:28 the world are for its monetary uses. And
00:31 the primary driver of the price of gold
00:32 in the world is purchases by central
00:35 banks and by individuals buying gold
00:37 bullion meaning like coins and big
00:40 chunks of gold and all that sort of
00:41 stuff which they are not buying for
00:43 jewelry or for industrial uses. They’re
00:45 but they’re buying it for its store of
00:48 value properties because of its monetary
00:50 properties. The value of all that gold
00:52 is worth almost $25 trillion.
00:55 It is by far the largest asset class in
00:58 the world and is a store of value asset
01:01 class. So the value of all the gold in
01:03 the world is more than 10 times the size
01:05 of the value of all the bitcoin that
01:07 will ever exist. So the value of all the
01:09 gold in the world right now is already
01:12 more than 10 times larger than all the
01:14 bitcoin that will ever exist ever in
01:15 human history. Okay? So, Bitcoin is a
01:19 superior store of value. It has better
01:22 monetary properties than gold. Uh, and
01:25 so I’ll go through them, you know, very
01:27 quickly, but the traditional uh
01:29 attributes associated with money are,
01:32 uh, divisibility, durability,
01:34 fungeability,
01:35 um, authenticatability, verifiability,
01:39 um, uh, identifiability. Some of those
01:42 are sort of duplicates, but anyway,
01:43 depending on who you talk to, there’s
01:44 between five and eight major
01:47 characteristics of what make a good
01:48 money. And Bitcoin is categorically
01:50 better on all of them. Um, especially
01:53 the most important one, which on that
01:55 list, which I did not mention, but the
01:57 most important on that list, the
01:59 overarching and most important on that
02:01 list is scarcity, which is you can’t
02:04 store value in something plentiful
02:06 because things that are plentiful do not
02:09 have value per unit. That’s why nobody
02:11 stores air or water as a store of value
02:15 unless you’re in the desert for or
02:17 you’re you know on another planet or
02:19 something like that cuz those things are
02:20 too plentiful to store value. Gold is
02:22 the second scarcest thing in the
02:25 universe. Bitcoin is the number one most
02:28 scarce thing in the universe as measured
02:31 by stock to flow which I’ve talked about
02:32 before which is basically how much
02:34 already exists versus how much is yet to
02:37 be mined dug out of the ground etc. And
02:40 Bitcoin has a better stock toflow ratio
02:43 than anything else in the world. And the
02:45 second best stock toflow ratio is gold.
02:49 Uh but Bitcoin is number one. Okay. So
02:51 Bitcoin has superior monetary properties
02:53 which means Bitcoin has the ability to
02:55 more than 10x in value um from where we
02:60 are today just by competing and getting
03:02 par with gold. And again, for all the
03:05 reasons I’ve covered on a million
03:06 videos, Bitcoin is just categorically
03:08 superior to gold. Additionally, money,
03:11 you know, so that’s sort of one one
03:13 school of thought, which is why does
03:15 Bitcoin why will Bitcoin 10xes? Well,
03:17 because the thing it’s competing with
03:20 that it’s better than is more than 10
03:22 times as valuable as gold. So in any
03:25 industry, if you looked at Facebook and
03:28 MySpace, for example, and Facebook was
03:31 onetenth the size of MySpace back in the
03:33 day, and you said, “Well, how big could
03:35 social media get?” You would say, “Well,
03:37 Facebook will get as at least as big as
03:39 MySpace cuz it’s better. How much
03:41 bigger?” Well, it turns out Facebook got
03:44 infinitely larger than MySpace. But you
03:47 knew it could get at least that big
03:49 because something had already gotten
03:50 that big. Same with Google and Yahoo.
03:52 When Yahoo was leading the search engine
03:54 market, you would know that if Google
03:56 was a better search engine and
03:58 ultimately would uh get enough adoption
04:01 that it was possible that it would be
04:03 worth as much as Yahoo. Now, the truth
04:05 is Google ultimately became worth far
04:07 more than Yahoo. Uh but you at least
04:09 knew that the baseline for what was
04:11 possible was what had already happened.
04:14 Um so the same is true here. We already
04:17 know that the world has a demand of more
04:21 than $25 trillion for a neutral reserve
04:25 asset. Neutral reserve asset means an
04:27 asset that nobody controls. And a
04:30 reserve asset means something people
04:31 hold as a store of value, whether that’s
04:34 nation, states, individuals, or where
04:36 wherever it is. Now, Bitcoin is vastly
04:39 superior to gold. So, I think its upside
04:41 is actually significantly more than 10x.
04:44 The reason for that is gold has never
04:45 been more in certainly the modern
04:48 economies of the last hundreds of years.
04:50 Bitcoin has or sorry gold has never been
04:52 more than a store of value. It is not a
04:55 medium of exchange. You don’t buy a cup
04:57 of coffee uh with gold. And
04:59 fundamentally you can’t because gold is
05:01 not divisible and portable enough and
05:04 authenticatable enough to do that. You
05:06 know, there’s just no way when you walk
05:08 into a coffee shop to shave off, you
05:10 know, a fraction of a shaving of gold to
05:13 buy a co cup of coffee. It’s not
05:15 divisible that way. It’s too hard to
05:17 know if it’s gold or if it’s been
05:18 diluted by some other metal. Even if you
05:20 could weigh it on a baking scale,
05:22 there’s no way of knowing if it’s been
05:24 diluted with another metal or if it’s
05:25 even real gold or fool’s gold. And uh
05:28 also in large volumes if you want to
05:29 make a you know move millions of dollars
05:31 around it’s way too heavy u to carry
05:34 that way for the average person. Uh so
05:37 gold fails as a medium of exchange and
05:40 it fails as a unit of account because
05:41 people are not going to use it as a unit
05:43 of account unless it’s being used as a
05:46 first as a store of value and a medium
05:48 of exchange. So gold is valued at $25
05:51 trillion. Even though it’s only doing
05:54 one of the three functions of a money
05:56 which is store of value but not unit of
05:59 account or sorry not store sorry it is a
06:02 store of value but not a medium of
06:04 exchange or unit of account. So gold is
06:07 literally doing one of the three
06:09 properties of money yet it’s worth $25
06:11 trillion. Bitcoin is customuilt and
06:14 designed to do all three of the
06:16 functions of money. a store of value,
06:19 medium of exchange, and unit of account.
06:21 Bitcoin is ideally suited
06:23 to do all three of those. Um, and again,
06:27 it’s less than onetenth the size of
06:30 gold, and eventually it will surpass the
06:32 value of gold. Additionally, why am I so
06:35 sure? Okay, so one, Bitcoin can 10x in
06:37 value without breaking a sweat just by
06:39 competing with gold. Um and secondly, uh
06:43 in addition to that, it’s significantly
06:46 better than gold because it does all
06:48 three of the properties of money instead
06:49 of just one that gold does. Uh and then,
06:53 uh sort of a categorical second to all
06:56 of that is humans need money. We need a
06:58 place to store value. Um and we need a
07:01 unit of account or sorry, a medium of
07:02 exchange and unit of account to I always
07:05 try to put them in order because that’s
07:06 the order that money is always adopted.
07:07 It’s first the store of value, then a
07:09 medium of exchange, then a unit of
07:11 account. Um, you don’t skip around
07:13 those. You typically it always goes in
07:15 that order. Um, so as a result of that,
07:19 um, you could put your money in stocks,
07:22 but stocks are ridiculously high valued
07:24 right now. You know, the the amount of
07:27 money you have to pay per dollar of
07:29 earnings, per dollar of profit is just
07:32 off the charts insane right now. And
07:34 markets are what’s called mean
07:36 reverting, which means over time the
07:38 trend line may be up, but if it gets
07:41 detached too far from that trend line,
07:43 there will ultimately be a price
07:45 correction. I think it’s almost certain
07:46 that there will be a price correction in
07:49 the price of the stock market at some
07:50 point. I don’t know when that is, but I
07:52 would certainly not be buying stocks or
07:54 holding stocks right now at current
07:57 valuations. Uh the bond market has
07:59 gotten absolutely clobbered. you know,
08:01 anybody holding debt is just been killed
08:03 in recent years. So, that’s a sucky
08:05 place to put money. Real estate is also,
08:08 you know, ridiculously overvalued in my
08:10 opinion. Again, it’s, you know, house
08:13 prices, commercial real estate,
08:15 everything. Um, it’s hard to find
08:17 anything that I would consider a good
08:19 investment. And you got to put your
08:20 money somewhere. So, uh, why will
08:22 Bitcoin 10x? One, because you got to put
08:24 your money somewhere. And Bitcoin is the
08:26 best place to put your money while you
08:28 wait to spend it later. It’s the most
08:30 scarce, the most durable, divisible,
08:32 portable, fungeible, authenticable,
08:35 verifiable, you know, all of those
08:37 things than anything else that exists in
08:39 the world. It’s just better. Um, and you
08:42 got to put your money somewhere and
08:44 you’re going to have to find something
08:45 that has those properties and that
08:47 Bitcoin has superior properties in those
08:50 categories. And uh, and again, look at
08:53 the price of gold and the price of gold
08:54 is going way up primarily because
08:56 central banks are buying it. Um now one
08:59 benefit of
09:01 uh I guess one thing to think about as
09:03 far as central banks buying gold is why
09:05 aren’t they buying Bitcoin? Uh the
09:07 answer for that is they do not control
09:09 Bitcoin. Central banks still feel like
09:11 they have this sort of tenuous grasp on
09:14 the monetary system if it’s based on
09:16 gold and they have to put their reserves
09:18 somewhere. Now if central banks actually
09:20 thought their own currency was a good
09:23 store of value then they would put their
09:25 reserves in their own currency. They
09:27 don’t. They turn around and they buy
09:29 gold with their reserves. If they
09:31 thought the US dollar was a good store
09:33 of value, they would put their reserves
09:35 in US dollars. Increasingly, they are
09:37 not doing that. They are turning around
09:39 and buying gold. So, the day will come
09:42 when central banks realize many of them
09:45 already have, but nobody wants to go
09:47 first, that the future of money is based
09:50 on Bitcoin, not on gold. And when
09:52 everybody realizes that, uh, there will
09:54 be effectively a financial arms race for
09:58 everybody to try to get Bitcoin
10:01 as quick as possible and Bitcoin will
10:03 ultimately supplant gold as the
10:06 preferred neutral reserve currency um
10:09 that central banks and everyone else
10:11 holds. It’s already much more prevalent
10:14 than gold for individuals, uh, for
10:17 businesses, for corporations. there’s
10:19 just much higher Bitcoin holdings for I
10:21 should say as an adoption rate bit the
10:24 number of individuals, corporations, uh
10:26 nonprofits,
10:28 um anything that is adopting Bitcoin is
10:31 at a much much much higher rate than
10:33 gold. The exception is central banks
10:36 which are effectively scared to to open
10:39 the floodgates by uh you know by
10:41 switching from gold to Bitcoin. So
10:43 anyway, that day will come as soon as
10:45 central banks start buying Bitcoin. Um
10:48 you can kiss the fiat currencies
10:50 goodbye. Um fiat currencies meaning
10:52 government madeup currencies. And uh
10:54 they’ve already sort of started central
10:56 banks are are playing this game where
10:58 they’re buying shares of uh Micro
11:01 Strategy, which is a company that holds
11:03 a huge amount of Bitcoin. It’s
11:04 effectively just a pass through
11:06 mechanism for Bitcoin. uh and they hold
11:09 huge amounts of uh micro strategy
11:12 including I think the central bank of
11:14 Switzerland I don’t know there’s a bunch
11:16 um so uh it’s a way that they can hold
11:19 effectively indirectly hold Bitcoin
11:21 without claiming that they hold Bitcoin
11:24 which keeps them from getting in trouble
11:25 with their fellow central bankers all of
11:27 which have sort of agreed that hey we’re
11:29 going to sort of snub and shun Bitcoin
11:31 for the time being because we can’t
11:32 control it but again that will change by
11:34 necessity same way governments were not
11:36 a big fan about the internet because
11:38 obviously if you have the internet you
11:40 mostly don’t need a postal service and
11:42 so the internet makes a ton of things
11:43 the government does irrelevant and so
11:46 the government was not a big fan um even
11:48 though the early additions of the
11:50 internet uh had government involvement
11:52 from a you know innovation perspective
11:54 but that was primarily to build defense
11:56 networks and things like that but the
11:58 actual wide openen internet that anyone
11:59 can use uh governments were generally
12:02 not huge fans of it which is why it took
12:03 them a long time to adopt it. Uh same
12:05 with the invention of the printing
12:06 press. The powers that be at the time,
12:09 governments and churches uh you know
12:11 churches that controlled the word of God
12:14 uh were not huge fans of the printing
12:16 press where suddenly anybody can read
12:18 you know the word of God in their own
12:20 language. A lot of people were not fans
12:23 of that who controlled the apparatus of
12:25 everything back then. Um obviously all
12:28 the Christians were fans of it because
12:29 the more people reading the word of God
12:30 the better. But uh technological
12:32 innovation is often resisted by those in
12:35 power until it it is adopted out of
12:38 necessity. We are right in that stage
12:40 with Bitcoin where governments,
12:42 especially central banks, are trying to
12:43 decide, can we ignore this thing long
12:46 enough that it might go away. It’s
12:48 clearly not going away, which means at
12:50 some point they’re going to have to
12:51 adopt it. And as soon as they do, there
12:53 will be a figurative arms race uh to see
12:56 who can acquire the most Bitcoin because
12:58 the future of money will be based on
12:59 Bitcoin.