Why Is Bitcoin “DOWN” At $101,000?

Bitcoin is down at $11,000
right now. First of all, let’s put that
in perspective. Down at $11,000 by any
historical perspective is sounds insane.
So in the future, people are going to be
complaining that Bitcoin is down to a
million dollars a coin. And it’s down
again to a million dollars a coin. It’s
down to $1.1 million per coin. What is
down even? I mean, it’s down from like
what, a month ago, two months ago,
whatever. But that’s fine. Let’s talk
through it because I know every, you
know, there’s constant new waves of
people joining the world of Bitcoin. And
if your first purchase of Bitcoin is at
prices significantly higher than it is
today, I know that does not feel good.
So, first, some perspective. Bitcoin is
radically up over any meaningful time
period. Second, this is the 31st time
Bitcoin has been down by 20% or more
since Bitcoin started 17 years ago. So,
Bitcoin is a 17year-old
asset. It started on January 3rd of
2009. So, coming up on its 17th birthday
and Bitcoin has dropped by 20% or more,
literally 31 times. This is the 31st
time. So more than 30 times before,
Bitcoin has done exactly what it’s doing
right now for the exact same reasons.
And those reasons are that very
temporarily, demand, you know, supply is
outstrip demand. The people who are
willing to sell Bitcoin at a given price
exceed the number of people that are
willing to buy it at a higher price.
Therefore, the price is pushed down
because there are people willing to sell
Bitcoin at $101,000. And the people who
want to buy Bitcoin, of which there are
plenty of them, don’t have to pay more
than $11,000 because that’s what people
are willing to sell it for. So the
supply and demand equilibrium is at
$11,000, which is fine. Again, we’ve
been here 31 times. 31 times. So, first
of all, is there anything wrong with
Bitcoin? No. Bitcoin’s in the best place
it’s ever been. Is it still limited to
21 million? Yes. Is it still
hackerproof? Yes. Is it still uh
processing transactions worldwide? Yes.
Is it still completely unstoppable money
that you can use anywhere in the world?
Yes. All of the things about Bitcoin are
true. And the regulatory environment for
Bitcoin is superior to any time ever in
history. Like we’re better. Bitcoin is
in a better place literally than any
other time. Additionally, the Federal
Reserve has indicated that they are uh
as of I think it’s December 1st. I think
it’s just anyway December 1st they are
turning off uh asset sales which means
they are entirely printing money without
even attempting to suck any of that
money back into the uh onto or I should
say out of the economy. So if you watch
So if you’re worried about the price of
Bitcoin, you should do three things
right now. one, go read the article
about Bitcoin silent IPO that I posted
uh whatever it was over the weekend or
you know earlier this week, whenever it
was, read the silent IPO article. Next,
go watch Jack Malers last night, the
Jack Mer show. uh he’s got a fantastic
uh live stream that he did that explains
why Bitcoin is doing what it’s doing and
uh he goes through a bunch of charts and
graphs and all that sort of stuff. And
he’s going to explain it the better
better than I could. So, um I’m not
going to make an attempt to retell you
everything you’re going to learn from
those two assets. One second.
But if you read the silent IPO article,
which will take you about 11 minutes to
read and you watch the Jack Morers’s
live stream, you’re going to get 90% 95%
of what you need to know. James Czech
already has a really good analysis out
as of this morning. I will try to um
post some excerpts on that at some
point. Um tonight, tomorrow, I don’t
know when. Um but let’s talk about the
real world application. What do you do
when the market is at $101,000?
Uh first of all, if you can buy more
Bitcoin, I would like if you are not
100% allocated, I would. Um for me
personally, I was comfortable with my
Bitcoin allocation. 100% Bitcoin and
then plus I financed the Tesla I’m
sitting in and I financed a Sleep Number
mattress, you know, whole bed set up. uh
which means technically I’m slightly
over 100% exposed to Bitcoin because I
am shorting the US dollar by two things
that I’ve I have financed. Uh the rest
of the stuff I own. I you know other
than that I own my cars, own my house,
own everything with no debt, all of
that. Uh but Bitcoin is low enough that
it is starting to tempt me tempt me to
buy more some way or another. So here’s
what I have done to see if there’s what
more ways I could buy more Bitcoin. one,
I started exploring whether I could take
out a loan against my old 401k at
Bombgar Corporation. Normally, you can
take out a loan of up to $50,000 from an
old 401k, but I had already converted
that to a um to a rollover IRA back last
year when Bitcoin was $57,000 per coin.
So, that old 401k is now a rollover IRA.
I put 100% of it in Bitcoin. I think it
was July of last year when Bitcoin was
at $57,000 per coin. Obviously, that’s
way up because $57,000 last year is now
$101,000 now. So, for some perspective,
July of last year was not that long ago.
And we were in a dip just like now. And
I was making a decision just like now to
allocate some additional capital to
Bitcoin that I had not previously
decided to do that. I had decided I felt
good about where I was. I had everything
the way I wanted it. I was good with
however much Bitcoin I owned at that
time and I was just going to settle in.
But as the price kept dipping all of
last, you know, eight months of last
year, the price kept dipping down into
the 50,000s over and over and over into
the high 50s. And finally, I was like,
“All right, if you’re going to sell me
cheap Bitcoin, I’m going to take that
cheap Bitcoin off your hands. If there
is somebody out there dumb enough to
sell me, in this case with my old
bombgar corporation 401k, hundreds of
thousands of dollars of Bitcoin for
57,000 per coin, thank you very much. I
will take it. So I did. So I put 100% of
my 11 years of 5% match of uh Bombgar
Corporation, which I got a match and I
think it was a on my part was 5% and the
match was 3% or something like that.
Anyway, all of that 8% of salary for
eight years, I dumped a 100% of it in
Bitcoin last year at $57,000 per coin.
So, I’m way up on that. Okay. So, um so
I tried to see if I could borrow against
that because normally you can borrow up
to $50,000 against your current 401k.
And the only downside is you have to pay
yourself interest. And if you never pay
it back, you pay a penalty. But of
course, I would pay it back. One second.
But because I had already rolled that
into a uh an IRA, a rollover IRA, you
can’t borrow against a rollover IRA. You
can borrow against a 401k. You cannot
borrow against a IRA. Uh so that was not
an option. I am not going to uh home
equity line of credit. I’m not going to
do that cuz my family lives in my house.
I already have an insane risk appetite.
100% of my liquid assets are in Bitcoin.
So, I’m going to leave my house just the
way it is, 100% fully paid for that my
wife and family live in and all of the
vehicles that they drive, which I own
100%. I’m not financing any of those.
I’m only financing the one I’m sitting
in, which is the one I drive because I
have a lot higher risk tolerance for
things that only affect me. Okay. Next
up, I have so I explored whether I could
take out a loan to buy more Bitcoin. Um
I so currently strike str I ke which is
one of the most popular lenders that
lets you do this does not have loans in
Mississippi. They have business loans
but not personal loans. They’re coming
out with personal loans. Uh but I was
considering now I’m not saying I would
do this but I was considering taking a
loan of I don’t know $10,000 or
something of against my Bitcoin to buy
more Bitcoin. I normally do not
recommend that. Do not do not do not do
that unless you own a ton of Bitcoin and
you can true up that loan as many times
as it take regardless how low it went.
But in my case, I own enough Bitcoin
that I could like massively
overcolateralize it, which means I would
be borrowing a very small percent of the
total. So, I explored that, but they
don’t have individual loans in
Mississippi, and I already have too many
business entities and too many, you
know, K1s for taxes. So, I don’t want to
do a business loan on that. Um, next up,
I was messing around with Coinbase’s
lending feature, but it explicitly says
for Coinbase that you’re not allowed to
borrow against your Bitcoin and then
turn around and buy more Bitcoin. So,
there does not appear to be anything
that keeps you from doing that, but it
is explicitly against their terms of
service. And because I do not want to
lose the privilege of having my my
Coinbase account because I use it for
the debit card and the credit card, I am
not going to do that. So, I borrowed $1
on Coinbase. I borrowed $1 and uh just
to see how it worked. Um so technically
I have a $1 loan on Coinbase that I
could theoretically use to buy more
Bitcoin, but the terms of service say
you’re not supposed to do that. So the
one place that I have a little bit
ability to get more Bitcoin is I still
have some old gold and silver I bought
in 2017. So back in when I first bought
Bitcoin back in 2017, I bought a little
bit of gold, a little bit of silver, and
a little bit of Bitcoin. And then I
started researching each of those and uh
tried to figure out okay which of these
is a better asset for the future of
money because it was clear to me the
government was just going to print money
into oblivion and debase the currency
and you know leave us all poor. Um and I
concluded very quickly that Bitcoin was
the answer. But I still have that old
gold and silver because it’s such a pain
to sell gold and silver. Um, so if
anybody knows of a local bullion
dealership that will take gold or silver
in central Mississippi, let me know and
when I’m in Mississippi, I will go swap
it out. Um, I got it from ATMEX, APMEX
in Texas. Um, and I think I can sell it
back to them, but initially it looked
like the the fees to sell it back to
them was like 4% on the gold and 12% on
the silver, which is insane. So, you
know, that seems like a high penalty.
Plus, I’d have to pay capital gains tax
because it’s gone up, you know, not
nearly as much as Bitcoin, but it’s gone
up some uh from 2017 to the present. So,
that is my current best shot of buying
some more Bitcoin is I will probably
sell some of that gold and silver back
to AppMax. I’ll just ship it back to
them from, you know, UPS. But I got to
go retrieve it and it’s in a safe
deposit box in a bank and it’s a huge
pain. Uh because again, it’s a royal
pain to store safely gold and silver.
Um, I don’t like gold and silver,
especially silver. Silver is a super
dumb investment in my opinion. I only
got it because people were buying gold
and silver, and I was like, I just want
to experience what this is like and see
if there’s anything to this. And I came
to the conclusion that, you know, gold
is is obviously scarce. Silver just
makes zero sense, but I still own some
back in 2017. So, I’ll probably sell
some of that gold, some or all of that
gold and silver, and use the proceeds to
buy more Bitcoin. So, if you can buy
more Bitcoin, I would buy more Bitcoin
right now. And if you can’t stomach the
fact that it might go down, set up a
recurring buy on River, a supercharged
recurring buy on River where you know it
just uh you know, every day or every
week or whatever, it automatically buys
you Bitcoin and if the price is dipping,
it buys you more Bitcoin. That’s not the
primary way I accumulate. But I did get
a notice this morning that my
supercharged River buy had been doubled
uh because the price of Bitcoin was
dipping and so it bought double the
amount it normally would. And I think
River just added the ability to like
triple on a supercharged buy where if
the price is dipping, it triples up
instead of doubles up. So I need to go
adjust that and make it a triple up
instead of a double up. But um but
anyway, I am actively looking for ways
that I can sell stuff to buy more
Bitcoin. I was happy with the allocation
I had, but down here at 101,000, I’m
like, “Come on, people. If everybody’s
gonna be stupid and give me more Bitcoin
at these prices, eventually I will find
a way to take it.” Um, so, uh, because,
you know, 31 times in the past, the
price has gone on to set a new all-time
high. Bitcoin’s monetary properties are
amazing. I see absolutely no reason why
Bitcoin’s not going to go set a new
all-time high once it flushes out all
these people that are selling their
Bitcoin for whatever reason. And again,
you can listen to Jack Malers. You can,
you know, go read James Czech and go
read that silent IPO article if you want
to know um why people are selling
Bitcoin or go watch the video. I I did a
video either Sunday night or last night,
whatever, um talking about uh this
concept of the great rotation and all of
that. So, you can go watch that. So, I
am actively trying to find ways to uh
buy more Bitcoin, my old tiny amounts of
gold and silver from 2017. Um, which
again, the real deal reason I haven’t
swapped it out is it’s just it’s not
enough to really matter how much Bitcoin
I own, but I’m just not willing to watch
Bitcoin sit at $101,000 without, you
know, happily removing it from the hands
who of whoever is dumb enough to sell it
to me at that price. Um, now people some
people are selling in desperation and
for that I am sorry, but some people are
just momentum trading and doing stupid
stuff and if somebody’s doing stupid
stuff, I’m happy to take their Bitcoin.
Um, but anyway, if you can buy more
Bitcoin, buy more Bitcoin. If you don’t
like buying Bitcoin when it might go
down, put a recurring buy on River, a
supercharged recurring buy on River, and
let it buy every day or every week for
you. That way, no matter what the price
is, it is, you’re getting more Bitcoin.
Um, and if if if let’s assume I did not
have a little bit of gold and silver
left over from 2017, if you are 100%
allocated to Bitcoin already, like I am
with my liquid assets, look, go touch
grass, hang out with your family, wait
it out. Like, as long as your finances
are not completely upside down where
you’re just sucking wind and feeling
horrible, uh, and you just can’t ride it
out. If you can’t ride it out, then
obviously that is sad and unfortunate.
But if you can ride it out, ride it out.
touch grass, hang out with your family,
you know, live a cheap life, and just
wait it out. This is this is temporary.
Again, Bitcoin has been here 31 times.
31 times. It’s been here 31 times.
What’s it going to do after this? In
some time period, it’s going to go set a
new all-time high and then blow way past
it. I don’t know if it’s tomorrow. I
don’t know if it’s next week. I don’t
know if it’s next year. Nobody knows.
It’s just always eventually going to go
set a new all-time high. And everybody
who owns Bitcoin, who who could have
bought more Bitcoin right now, they’re
all going to wish they had bought more
Bitcoin. This happens every time.
So, this happens every time where people
wish they had bought more Bitcoin. You
know, they’re looking at $101,000
Bitcoin and they’re thinking, “Oh, this
is horrible. It’s the end of the world.”
And then within some relatively short
period of time, they’re thinking, “Why
did I not buy more Bitcoin at 101,000?”
Well, here you are. You can buy more
Bitcoin at 101,000. And if I had a
bullion dealer ship that would take gold
and silver off of my hands like today
and give me Bitcoin in return, I would
do that today. I just got to find a way
where I’m not going to get killed on
taxes and killed on the exchange fees
cuz gold and silver are they suck when
you have to actually trans transact with
them with anyone because of you know
it’s not like Bitcoin where you can just
transfer it basically for free anywhere
in the world. So if you can buy more
Bitcoin, buy more Bitcoin. Same advice
as always. My advice never changes. Buy
as much Bitcoin as you can. Sit on it
for as long as conceivably possible.
It’s that simple. It’s really that
simple. Thanks,