Bitcoin is NOT volatile! The world around it is! Bitcoin has been rock solid steady since 2009.

00:01 Bitcoin is actually not volatile. Now,
00:04 the price of Bitcoin moves around, but
00:05 when people say Bitcoin is volatile,
00:07 what they don’t think about is that
00:09 there’s actually two pieces to that
00:11 equation. The volatility of the thing
00:13 itself, and then the volatility assigned
00:16 to that thing. So, when people say that
00:19 someone, for example, a person is
00:21 volatile, what what they mean is the
00:23 actions of that person change. Their
00:25 mood changes, they’re angry, they’re
00:27 happy, they’re upset, they get in
00:28 fights. A volatile person is hard to be
00:31 around because that that person their
00:34 moods or their emotions are constantly
00:36 changing. Bitcoin is the opposite.
00:38 Bitcoin is actually one of the least
00:39 volatile things in the entire world. So
00:42 what do I mean by that? Well, since the
00:43 Bitcoin network was launched in 2009,
00:46 the Bitcoin network has been humming
00:48 away, processing transactions, mining,
00:51 you know, the a new block of
00:52 transactions are cemented permanently
00:54 onto the Bitcoin blockchain about every
00:56 10 minutes. And it’s been doing that for
00:59 16 and 12 years. 16.5 years. The Bitcoin
01:03 network has been humming along
01:05 beautifully, mining a block about every
01:07 10 minutes, setting that set of
01:09 transactions in stone and almost I mean
01:13 no variance like it is one of the most
01:15 stable things in the entire world. So
01:17 has the Bitcoin network ever failed to
01:19 process transactions? No. Has a
01:22 transaction on the Bitcoin network ever
01:23 been blocked by anyone? No. So even
01:27 email, even email now and then, you
01:29 know, a couple times a year I’ll lose an
01:30 email like an email that was supposed to
01:32 come through just doesn’t and it’s not
01:35 in my spam folder, it’s not in my
01:36 folders, it’s not, you know, it’s
01:38 nowhere like and the person resends the
01:40 email or forwards it to me and there it
01:43 is. But somehow my email didn’t get to
01:45 them or their email didn’t get to me.
01:46 And again, it only happens a couple
01:48 times a year and I send a ton of email.
01:50 But Bitcoin is not like that. The
01:52 Bitcoin network never fails to process a
01:54 transaction. The Bitcoin network will
01:56 always process transactions. No one will
01:58 ever be able to stop the Bitcoin
01:60 network. And it has been humming along
02:02 since 2009. So why do people say it’s
02:05 volatile? Well, the answer is people say
02:07 it’s volatile because they’re describing
02:09 the price of a Bitcoin. The the price
02:12 does not change the underlying
02:14 technology. It doesn’t change the
02:15 protocol. It does not change how Bitcoin
02:17 processes transactions. The price just
02:20 reflects the human opinion based on
02:23 supply and demand of what the value of a
02:25 bitcoin is at that exact point in time.
02:28 And that is based entirely on the the
02:30 laws of supply and demand, which is true
02:32 for every stock, every bond, every
02:34 commodity. What is the value of a bushel
02:37 of corn? It entirely depends on what
02:39 somebody is willing to pay for a bushel
02:41 of corn right now. But we don’t say
02:43 corn. The actual coin coin corn corn
02:46 kernels may not be volatile unless
02:48 there’s like weather or a drought or
02:50 something like that, but that doesn’t
02:52 mean the price doesn’t go up and down
02:53 quite a bit based on the laws of supply
02:55 and demand and how much desire and
02:57 demand there is for corn or wheat or a a
03:01 share of Amazon or Apple stock for
03:03 example. So what makes Bitcoin volatile
03:06 is people are using it and it’s very
03:08 early in the adoption cycle. So, Bitcoin
03:11 is you is uh has been adopted by less
03:14 than 5% of the world. So, there’s a very
03:16 small percentage of the world that is
03:18 using Bitcoin and they are very early in
03:20 their adoption of Bitcoin. So, very few
03:22 people in the world are living on a 100%
03:25 Bitcoin standard like I am where all of
03:27 their paycheck goes into Bitcoin. They
03:30 pay all of their expenses with Bitcoin
03:31 and they live on Bitcoin. the vast
03:33 majority of people who own any Bitcoin
03:35 of the 5% that own any own like 50 bucks
03:38 or 200 bucks or some relatively small
03:41 amount of money. Um, so Bitcoin’s
03:44 volatile because it’s early. The earth,
03:46 the world just gave birth to Bitcoin 16
03:49 years ago. It’s early in its adoption
03:52 and its infancy and the price goes up
03:54 and down because adoption is so early.
03:56 And if the price was not volatile, then
03:58 it would not be volatile to the upside
04:00 either. And since everybody watching
04:03 this video wants Bitcoin to be worth
04:04 more than $1 million one day, you can’t
04:07 get upside volatility without downside
04:09 volatility as well. The two of them
04:11 always go together. There’s no such
04:13 thing as an asset that has a lot of
04:16 upside potential and no downside
04:19 volatility. Those two things always
04:21 always go together. So I am thankful for
04:23 Bitcoin’s volatility because it means
04:25 there’s a huge amount of price upside
04:28 potentially in the future which would
04:30 not be the case if Bitcoin was not
04:31 volatile at all. Assets that are not
04:33 volatile do not have high upside. Those
04:36 two things just never go together. So
04:38 when you think about Bitcoin you got to
04:40 separate what is the volatility of the
04:43 underlying technology which is none.
04:45 Bitcoin is the one of the most solid
04:47 steady things that exists literally on
04:49 the entire planet. um and the price
04:52 volatility which is reflected by the
04:54 actions of humans. So the reason
04:57 Bitcoin’s price is volatile is because
04:58 people are volatile. People have
05:01 emotions and they have tempers and they
05:03 have moods and people are constantly
05:06 making decisions every single day about
05:08 how much Bitcoin they want to hold or
05:10 how much they want to buy or how much
05:12 they want to sell or how much they want
05:13 their company to buy or hold or sell.
05:15 And the actions of hundreds of millions
05:18 of people every day dictate the price of
05:20 Bitcoin at exactly this moment in time.
05:23 So that is what’s volatile. What is
05:24 volatile is the humans not the
05:26 technology. And over time that
05:28 volatility Good afternoon. Over time
05:31 that volatility comes way down. And it
05:34 comes way down because as adoption goes
05:36 up the price goes up. And with that the
05:39 volatility goes down. Now the economic
05:41 upside in the future also goes down as
05:44 the volatility goes down. So let’s say
05:46 25 years from now everybody in the world
05:48 uses Bitcoin for everything. It would
05:50 not be volatile at all. It would be less
05:53 volatile even than the US dollar. The
05:55 price or the value of a Bitcoin would go
05:57 up about 3% per year. Now why 3%? Why
06:00 would the value keep going up even after
06:03 everyone has adopted it worldwide? And
06:06 the answer for that is human
06:07 productivity growth. Humans get about 3%
06:10 better at making stuff every year. So
06:12 about every year there’s about 3% more
06:15 products and services that exist in the
06:17 world. And with only 21 million Bitcoin,
06:20 the amount of products and services,
06:23 groceries, you know, games of golf,
06:27 whatever it is you do or spend money on,
06:29 the amount of that that can be purchased
06:30 with a specific amount of Bitcoin will
06:33 eventually just go up 3% per year
06:35 because humans get 3% better at making
06:38 things. And so the money will buy 3%
06:40 more, which is the opposite of the way
06:41 the US dollar works. The US dollar tends
06:44 to lose at least 3% of its value every
06:46 year, usually significantly more, uh,
06:49 because they’re constantly making more
06:50 of it out of thin air and basically
06:52 giving it to themselves and hoping you
06:54 don’t notice or hoping you don’t mind.
06:56 Um, so Bitcoin doesn’t work that way.
06:58 So, uh, but in the day when Bitcoin has
07:01 no volatility, I promise you people will
07:03 be complaining that, you know, maybe
07:05 it’s a million dollars a coin. The
07:07 highest uh estimation anybody’s giving
07:09 for the price of Bitcoin is Michael
07:11 Sailor who claims in 21 years uh every
07:14 bitcoin will be worth $42 million per
07:17 coin. Uh that seems high. I don’t know.
07:19 Maybe it’s a million, maybe it’s 10
07:21 million. Nobody knows. But regardless,
07:23 once it is fully adopted, it won’t be
07:26 volatile anymore. But that also means
07:28 the the upside will not be there
07:29 anymore. So all the people that are
07:31 complaining about volatility want the
07:33 upside, but they don’t want the
07:36 volatility. But as soon as the
07:37 volatility goes away, so does the
07:39 upside. So now it happens slowly over
07:41 time. Uh Bitcoin is way less volatile
07:44 than it was a few years ago. But that
07:46 also means the upside of Bitcoin today
07:48 is less than it was a few years ago.
07:50 Back when I was buying Bitcoin in the
07:52 early days, it would regularly go 20 or
07:54 30% up or down in a day. In a day. Now
07:58 everybody now it goes, you know, up or
08:01 down, you know, 30% over the course of a
08:03 couple months and everybody freaks out.
08:05 uh that used to be a daily occurrence
08:07 back in the early days of Bitcoin and I
08:09 wasn’t even in that early. I started
08:10 buying Bitcoin in late 2017 and early
08:13 2018, but even back then it could swing
08:16 easy 10% in a day and 20 or 30% over a
08:20 relatively short time frame. Uh and so
08:22 Bitcoin is much much much less volatile
08:24 now than it used to be. But again, the
08:26 trade-off is there’s not quite the same
08:27 amount of upside today in Bitcoin that
08:30 there was back then. But the the uh you
08:32 know that trade-off is again you don’t
08:34 have to deal with the gut-wrenching
08:36 volatility it had back then either. So
08:38 Bitcoin itself is not volatile only the
08:41 price is volatile and the price is
08:43 volatile because it represents the moods
08:46 the actions the uh the desires and wants
08:51 and demands of actual humans. And so
08:53 humans make the price of Bitcoin
08:55 volatile but that does not mean the
08:56 underlying technology is volatile. It
08:58 doesn’t mean about anything about
08:60 Bitcoin itself is volatile. It just
09:02 means the price goes up and down because
09:03 humans are making it go up and down.
09:05 That will come down over time. So will
09:07 the upside, the economic upside and
09:09 eventually Bitcoin will be do adopted as
09:12 the money uh reserve currency of the
09:15 world and the day-to-day money of the
09:17 world as well. And then everyone will
09:19 complain that there’s not enough upside.
09:21 But of course there won’t be any
09:22 volatility because it will just be
09:24 money. But then at least it goes up 3% a
09:26 year instead of losing 4% to 9% per year
09:29 like the US dollar. So in the end we all
09:31 win. In the end the world is a much
09:33 better place. In the end, nobody makes
09:35 money out of thin air. Uh and between
09:38 now and then. Bitcoin is both a great
09:41 investment and a great money. Eventually
09:43 it will just be a great money, but
09:45 that’ll take probably 25 years. I mean
09:47 that’s like a multi-deade thing. We are
09:48 still very early in the adoption of
09:50 Bitcoin and it takes humans a long time
09:53 to adopt things because humans just
09:55 don’t change their behavior patterns
09:57 easily and 95% of the world doesn’t own
09:59 any Bitcoin and it will take a long time
10:02 for those people to come around and so
10:04 uh but the longer you wait the more of
10:06 the potential future economic upside is
10:09 behind us instead of in front of us
10:11 which is why I continue to think Bitcoin
10:13 is the best investment you could
10:15 possibly hold which is why it represents
10:17 100% of my liquid assets. Have a great
10:19 day everyone.