At $95,000 per bitcoin, do I think bitcoin is going to go higher? YES! Here are the reasons why

00:01 Hey everyone, Bitcoin is about $95,000
00:04 per coin. And I get asked now and then
00:06 if I think Bitcoin will go higher and
00:09 the answer, of course, is absolutely
00:11 yes. I think Bitcoin will ultimately go
00:13 much higher than today. But the
00:15 important thing is why. Why do I think
00:17 Bitcoin will go higher? Because it’s one
00:19 thing to just think any asset will just
00:21 go up. It’s another to understand why it
00:23 will go up and to have certainty about
00:25 why it will go up. uh which I do with
00:28 regard to Bitcoin which is why I have
00:30 100% of my liquid assets that I own or
00:34 control are in Bitcoin as opposed to I
00:37 have zero stocks, zero bonds and almost
00:40 zero cash just enough working balances
00:43 in bank accounts that if I write a check
00:45 to a babysitter or something like that
00:47 that it does it does not bounce in my
00:50 bank account. Okay. So, why do I think
00:52 Bitcoin will go up from $95,000 a coin?
00:55 Well, the answer is because only a very
00:58 small percentage of the people who could
01:00 benefit from Bitcoin already own any.
01:03 And I’ll explain what I mean by benefit.
01:05 So for right now worldwide, something
01:08 like 5% of the world owns any Bitcoin.
01:11 And most of that 5% has a very small
01:14 percent of their total net worth in
01:17 Bitcoin. meaning it represents a very
01:19 tiny percentage of the total savings and
01:22 investment of all the people that it
01:24 could one day represent a large
01:26 percentage of their savings of and
01:28 investment. So what problem does Bitcoin
01:31 solve that these people have recognized
01:34 that I believe the other 95% of the
01:36 world will eventually recognize and that
01:39 is you need a place to save your time
01:42 and energy. Money, the concept of money,
01:45 the technology of money, most of which
01:47 is represented by the US dollar these
01:50 days, is a way to save your time and
01:53 energy for something you might want to
01:55 buy in the future. If you knew for the
01:58 rest of your life exactly everything you
01:59 would want, then you could just have
02:01 whoever pays you pay me in those
02:03 products. So, you might show up and
02:05 rather than collect a paycheck, you get
02:07 a blender, a pair of shoes, um a new
02:10 Wi-Fi router, and a bunch of other
02:12 random stuff. just delivered to your
02:14 house every two weeks instead of a
02:15 paycheck. But the truth is, you don’t
02:17 know exactly what you’re going to want
02:19 to buy over the next two weeks or two
02:21 months or two years or two decades. You
02:23 don’t know with absolute certainty today
02:26 what you want to buy. Otherwise, you
02:28 could just set up your life with a
02:30 payment plan for all of that. So, what
02:31 is money? Well, money is a way to store
02:35 your time and energy so that you can
02:37 spend it at a future time. And in order
02:39 for money to do that job effectively, it
02:42 needs to be scarce. Meaning, the time
02:44 and energy you save up today to buy
02:46 something ought to buy you as much or
02:49 more in the future as compared to what
02:52 it does today. Uh, in fact, it should
02:54 buy you more in the future because in
02:57 addition to saving up your time and
02:58 energy, if you are willing to defer your
03:01 consumption, meaning if you’re willing
03:03 to wait and be patient, then a good
03:06 money will increase in purchasing power
03:08 over time rather than decrease. So, the
03:11 money we use today has a fatal flaw,
03:13 which is that humans control it. Humans
03:16 decide how much money there is in the US
03:19 dollar money system. And those humans
03:23 who are at the Federal Reserve, although
03:25 the influence of how much money there is
03:28 is much, you know, as much controlled by
03:30 politicians and political appointees and
03:33 bureaucrats and all the people that
03:36 typical people like to hate. Those
03:39 people control the money, but
03:40 technically it’s actually controlled by
03:43 the Federal Reserve and they are
03:45 influenced by all of these other forces.
03:47 Well, those people are fallible, sinful
03:50 people just like the rest of us. And if
03:52 you give them a magic money printer,
03:54 they will find an excuse to use it. And
03:57 never in human history have humans had
03:59 the ability to print money out of thin
04:01 air and resisted the temptation long
04:04 term. always eventually those humans
04:07 come up with an excuse or some sort of
04:09 panic or some sort of emergency that
04:12 necessitates they believe printing vast
04:15 quantities of money. So, for example,
04:17 the total amount of money in circulation
04:19 was something like uh $2 trillion
04:22 before, I’m going to use round numbers
04:23 here, something like $2 trillion before
04:26 the great recession. And they made the
04:28 decision that they should double that to
04:30 roughly $4 trillion. And then after the
04:33 great uh financial recession of 2008
04:36 when COVID hit, actually it really
04:38 started in 2019. Uh there was a lot of
04:40 cracks in the system in 2019. the
04:43 decision was made to double the money
04:44 supply again from roughly $4 trillion to
04:48 $8 trillion. And then there’s different
04:50 measures of it that run up as high as
04:52 $22 trillion or $23 trillion. But the
04:55 short take is every time the massively
04:58 debt laden, deeply indebted financial
05:00 system we live in in the United States
05:02 where the government itself is $36
05:04 trillion in debt. Every time that system
05:06 starts totering on the brink and they
05:09 start to get worried that people won’t
05:10 pay able to pay back the money, they
05:12 dump a huge amount of new freshly minted
05:14 out of thin air money into the system to
05:17 try to save it. And they will do that
05:19 once again the next time there are more
05:22 cracks in the system. And worldwide
05:23 that’s already happening, although it’s
05:25 has yet to happen in the biggest way in
05:28 the United States, but it’s coming. So,
05:31 everyone has a problem, which is they’re
05:33 trying to save up their time and energy
05:34 so that they can buy stuff in the
05:35 future. And the people who control their
05:38 ability to do that. The people who
05:40 control the value of their dollars make
05:43 up excuses out of thin air and print a
05:46 ton more of that money, which devalues
05:48 the dollars you already have. So instead
05:50 of holding your purchasing power and
05:52 enabling you to buy as much or more in
05:55 the future as a good money does, instead
05:57 your money deteriorates by between
05:60 usually 4% and 9% per year. The
06:03 government actually prints out of thin
06:05 air about 7% more money uh every year.
06:08 But that results when it all trickles
06:09 down of your prices that you pay at the
06:12 grocery store or for a bicycle or a used
06:15 car or whatever it is typically going up
06:18 something like on average 4% to 9% a
06:21 year. And then when you get bouts of
06:23 high inflation, like right after they
06:25 print a bunch of money, uh that
06:27 inflation can spike up into the double
06:29 digits, 11%, 12%, 13% for periods of
06:33 time before they try to get it back
06:35 under control by promising the world
06:37 that they will not be so irresponsible
06:39 and will not print so much money, which
06:41 of course lasts for a short period of
06:42 time before they do it all over again.
06:44 And the Federal Reserve has been doing
06:46 this since 1913 when it was created. Uh
06:49 so more roughly 112 years ago, whatever
06:53 that is. Um from 1913 to the present, uh
06:56 they have been promising that this
06:59 irresponsible money printing that they
07:00 just did is the last time they’re going
07:02 to do it. And a few years later, they do
07:04 it again. And then a few years later,
07:05 they do it again. And a few years later,
07:07 they do it again. And they will never
07:08 stop. Now, you might thinking, you might
07:10 be thinking, well, that’s not really a
07:12 problem because I’m saving up my wealth
07:14 in my house. I’m making down payments on
07:17 my house and so I’m uh you know immune
07:19 from this government money printing. Um
07:22 that has problems because your house
07:24 devalues over time, your stocks devalue
07:26 over time, your bonds devalue over time.
07:29 And in my next video, I will go into all
07:30 the details of why that is. But I will
07:33 save that for the next video which I
07:34 will start momentarily