Bitcoin is NOT “tied to the US Dollar”

00:01 Bitcoin is not tied to the US dollar. I
00:04 hear a lot of objections to Bitcoin from
00:06 various people for various reasons, but
00:08 one of the ones that makes literally
00:10 zero sense is people saying, “Yeah, but
00:12 the problem is the US dollar has all
00:14 these problems and Bitcoin is tied to
00:16 the US dollar.” Bitcoin is not tied to
00:18 the US dollar. Bitcoin is not tied to
00:21 any fiat currency.
00:26 change Bitcoin for any other currency,
00:28 any other commodity and just about
00:30 anything else. In fact, for many years
00:33 now, the Federal Reserve itself, the
00:35 central bank of the United States, um
00:38 that is the world reserve currency, hey,
00:40 they have tracked the price of eggs in
00:43 Bitcoin. So even if you’re at a farmers
00:45 market and the US dollar, you know,
00:47 poof, magically went away, the Federal
00:50 Reserve themselves is tracking what is
00:52 the price of eggs priced in Bitcoin. So
00:56 you could literally go up on your phone,
00:58 even in a world with no US dollars, you
00:60 could f check the official Federal
01:02 Reserve, you know, tracking and you
01:04 could find out what do eggs cost as
01:06 priced in Bitcoin. So uh when again when
01:09 people say this, it reminds me, you
01:11 know, when we were kids, right? uh you’d
01:13 find like wrapping paper with these long
01:15 cardboard tubes in them and you could
01:17 take the long cardboard tube and you
01:18 could look through it and it would it
01:19 would show you like this tiny little
01:21 circle of the world. And whenever anyone
01:24 says
01:25 that Bitcoin is tied to the US dollar or
01:28 if the US dollar goes down, Bitcoin will
01:30 go down with it because Bitcoin is
01:32 priced in US dollars. It reminds me of a
01:34 kid looking through one of these
01:36 cardboard tubes and saying, “Yeah, but
01:38 all I see is this tiny little circle.
01:40 That’s all there is.” And it’s like,
01:42 well, put away the tube. There’s a huge
01:44 wide world out there. If all you can see
01:47 is Bitcoin priced in US dollars, it is
01:49 because you have a very US- ccentric
01:51 view of the world. You don’t realize
01:54 that there are 160 other currencies in
01:57 the world and that Bitcoin is priced in
01:58 all of them. You’ve never gone on
02:00 Trading View and tracked the price of
02:02 Bitcoin in gold, the price of bit
02:04 Bitcoin in oil, the price of Bitcoin in
02:08 soybeans, corn, wheat, silver, all of
02:11 that. Bitcoin is priced in everything
02:13 because Bitcoin can be can be used to
02:15 purchase anything. It can be used to
02:17 purchase any other currency in the
02:20 world. It can be used to purchase any
02:22 other commodity in the world and any
02:24 other product or service. I can show up
02:26 in literally any country on the planet
02:28 right now and I can either buy
02:30 everything I need directly with Bitcoin
02:32 from someone in that country that’s
02:34 willing to take Bitcoin for a car or a
02:37 house or you know groceries or whatever
02:39 I need. I can either find somebody that
02:41 will directly take Bitcoin for that in
02:43 literally any country anywhere in the
02:45 world. I can trade Bitcoin directly with
02:48 no US dollar involvement directly for
02:51 the local currency and then use the
02:52 local currency to buy anything I need.
02:54 So when people say Bitcoin is only
02:56 priced in US dollars, it’s like what do
02:58 you think happens in Japan? So you think
03:00 when somebody swaps Japanese yen for
03:03 Bitcoin that they’re going to US dollars
03:06 in Japan first? No, that’s not what’s
03:08 happening. That makes no sense. They’re
03:10 going straight for J from Japanese yen
03:12 to dollars. Sorry, not to dollars. To
03:15 Bitcoin, not to dollars. And same in
03:18 Thailand. If you’re in Thailand, there’s
03:20 huge uh billboards that have the price
03:23 of Bitcoin priced in the Thai bot, which
03:26 is the Thai currency. And if you go on a
03:28 Thai cryptocurrency exchange and you
03:31 want to buy a coin with Thai bot,
03:33 they’re not bouncing through US dollars
03:35 first. They’re going straight from
03:37 Thaibot to uh to Bitcoin and back again
03:41 based on the floating exchange rate. So,
03:43 Bitcoin has a floating exchange rate
03:45 with literally every other currency,
03:47 commodity, and everything else you could
03:48 possibly want. Everything in the world
03:50 can be bought with Bitcoin, and you can
03:53 buy any other currency in the world with
03:54 Bitcoin. It has nothing to do with the
03:56 US dollar. In fact, the US dollar could
03:59 completely disappear tomorrow and it
04:01 would actually accelerate the adoption
04:03 of Bitcoin because a bunch of people
04:04 that currently rely on the US dollar,
04:06 some of those would switch to Japanese
04:09 yen, Chinese Juan, uh, you know,
04:12 whatever, you know, Indian rupees, the
04:15 euro, some of them would switch Canadian
04:18 dollars, Mexican pesos. Some of the
04:20 people currently dependent on US dollars
04:22 if the US dollar just magically went
04:24 away, some of those people would switch
04:27 to another national currency like any of
04:30 the ones I just mentioned. But a lot of
04:31 them would just go straight to Bitcoin
04:33 and just start buying everything in
04:34 Bitcoin. And every shop owner and every
04:36 store in the United States would have
04:38 the choice if the US dollar suddenly
04:40 went poof is okay, do we start listing
04:42 our prices at, you know, Costco and
04:46 Kroger? Do we start listing them in the,
04:48 you know, European euro or the Canadian
04:50 dollar or the Mexican peso or do we just
04:52 straight up list them in Bitcoin and
04:54 they probably do a mix of more than one
04:56 currency because if the US dollar went
04:57 away all of a sudden, which it’s not
04:59 going to, but if it did all of a sudden,
05:01 um, you know, they would have to price
05:03 it in something and it wouldn’t be US
05:05 dollars because US dollar went away. So,
05:07 same thing happens all around the world
05:09 when their local currency goes away.
05:11 Give me one second.
05:16 It is a very common occurrence around
05:17 the world for fiat currencies which
05:19 means madeup government issued
05:20 currencies to go to zero effectively. So
05:23 most recently in Venezuela but before
05:25 that it’s happened in you know numerous
05:27 countries around the world. What happens
05:30 is the store shops just start pricing
05:31 everything in something other than the
05:32 local currency because nobody wants the
05:34 local currency anymore. And so they
05:36 start pricing it in US dollars or pesos
05:38 or euros or whatever currency is nearby
05:42 and close geographically and available
05:44 for their citizens. That’s not whatever
05:47 the currency is that went to went to uh
05:48 went to zero. So Bitcoin, yes, you can
05:51 get it priced in US dollars, but Bitcoin
05:53 is not dependent on the US dollar. It’s
05:56 not priced only in dollars. it there’s
05:58 no dependency there. There’s and Bitcoin
06:01 would actually thrive in a world if the
06:03 US dollar just went away. So anytime
06:05 someone says look look there are a lot
06:07 of great questions in bitcoins a lot of
06:10 great questions that I deeply appreciate
06:11 because they they show sort of a deep
06:14 thought about how Bitcoin works or how
06:16 it would work including the questions I
06:19 posted uh it was either late last week
06:20 or I think it was late last week um
06:23 where I did like five questions in a row
06:25 question one of five which were just
06:27 fantastic questions. This one does not
06:30 show deep thought. So, if somebody says
06:32 to me, “The problem with Bitcoin is it’s
06:35 tied to the US dollar.” I’m like, “Um,
06:38 no.” Like, “Turn your brain on. It’s not
06:41 tied to the US dollar.” Like, that makes
06:44 no logical sense. How do you think that
06:45 works in foreign countries? That makes
06:48 no sense. I’m sorry, but it makes no
06:50 sense. So, Bitcoin is not tied to the
06:52 dollar. It’s not dependent on the US
06:54 dollar. Forgive the rant, but when
06:56 people make this, you know, accusation
06:58 or criticism of Bitcoin, I’m like, think
07:01 that through. Like, it makes me want to
07:02 say, just let me give you 30 seconds to
07:04 think that through. Just think about
07:06 that for 30 seconds and then see if your
07:09 question makes any sense at all. The
07:11 answer is it makes no sense. Like, no,
07:13 that’s not how the world works. That’s
07:15 not how anything internationally works.
07:16 They don’t bounce through the US dollar
07:18 every time they convert, you know,
07:20 Chinese currency to Japanese currency.
07:22 No. Like, that makes no sense. So,
07:25 Bitcoin is not tied to US dollar.
07:26 Bitcoin would thrive in a world with or
07:28 without the US dollar. And Bitcoin can
07:30 be priced in anything and anything else
07:32 in the world is also priced in Bitcoin,
07:35 including the Federal Reserve, the price
07:37 of eggs. If you want to go check it out
07:39 online, just Google uh uh Bitcoin price
07:41 of eggs or egg price of Bitcoin or
07:43 something like that. And you might have
07:45 to include the word Federal Reserve or
07:46 Fed Reserve or something like that, but
07:48 you can go look it up and they track it.
07:51 Have a great day.