AMAZING Bitcoin progress but NO PRICE MOVEMENT? What gives?!

Amazing Bitcoin progress, but no price movement. What gives? Well, actually, what's happening behind the scenes is what happens often at times like this, which is a rotation between less sophisticated tourists that own an asset and more sophisticated people that are in the know, that understand what's going on, and that are rotating into the asset as the less sophisticated and less knowledgeable tourists rotate out of the asset. So this happens in all assets whether it's gold or silver which both have been on a big uh tear recently. Gold for you know arguably good reason silver for arguably not good reasons but anyway um and then the magnificent seven stocks which are the best performing seven stocks over the last 10 years which are Amazon, Apple, Google, Facebook, uh Nvidia, Tesla and maybe one other I'm forgetting. Anyway, each of those at various points have gone through lulls where for multiple months or even multiple years at a time, the price of the stock is going nowhere. So, what's actually happening behind the scenes? Well, it's the same with all of them, whether it's gold or silver, whether it's uh uh any of the magnificent seven stocks or any other super high performing asset. What is happening when the price starts to go sideways or even down is there's an a rotation in the owners of the asset. So for example, when Bitcoin's going up or when any asset's going up, people pile into the asset who don't understand it and they don't know what it is. They're buying it because it's going up, which is never a good reason to buy something. Don't invest in stuff because it's going up. Because typically by the time you realize it's going up, it's already gone up. And then by the time you pile into it, all the smart people are piling out of it and you end up a lot worse off. So I do not ever and no financial adviser would ever recommend you buy stuff just because it's going up. But that's what people do because they're not sophisticated often and so they just buy assets that are going up. So when you buy an asset that is going up, uh again if you don't have knowledge of what it is, then when it starts going sideways or even starting to trend down, oftentimes you start to think, wait a second, there must be something wrong with this asset or why do I own this asset? Why do I not own something more exciting that's going up? And so people tend to sell the thing that they originally bought and buy something else instead that they appear to uh you know appears to be going up. So that would be an example recently would be people buy uh selling in Bitcoin to buy silver. Now that trade makes zero sense in my opinion. But again, if you don't understand Bitcoin and you don't understand silver, then for the last two months, your conclusion is Bitcoin's not going up and silver is going up. So I'll sell the Bitcoin and buy the silver. Again, not something I recommend. That is not the way good investors operate. They don't chase things that are going up. They chase things that have good fundamentals knowing that good fundamentals ultimately will result in the asset going up. So what's happening in the background is there's a massive rotation uh from people who don't understand Bitcoin who are selling it to people who do understand Bitcoin who are buying it. So the price of Bitcoin, if you look at the price of Bitcoin, you may look at it and say, "Wait, it's $1.8 trillion." The total market capitalization of all the Bitcoin in the world right now is about $1.8 trillion. And you may look at that and think, "Wait, but it's not doing anything. It's 1.8 trillion and it's been 1.8 trillion or around there for the last month or two. It's doing nothing." That's not true. It is not doing nothing. No asset is doing nothing. Something like 50 billion dollars of Bitcoin is trading hands every day. So, who's it going from again? It is going from less sophisticated, short-term people who don't understand it, and they are selling it to longer term focused people who do understand Bitcoin. Now, how do we know that that's the way it goes? Well, the answer is because short-term focused people who don't understand assets do not buy them when they're flat. You don't run around thinking, "Ooh, I found an asset that's gone nowhere for 2 months. I'll invest in that." Nobody thinks that way. People invest in stuff when it's going up. And so, if people are still buying something when it's going sideways, that means they are not chasing the upside. They're buying it for other reasons. And that is because they understand the fundamental underlying value and they understand that hey I can buy it for cheap now and it will go up. It will go up because of the fundamental properties of money and humans need for money. Okay. So let's get to an analogy I've used before which is a Taylor Swift concert. Let's assume that we didn't have the internet or any sort of media and nobody knew when Taylor Swift was going to perform. Everybody just knew that now and then Taylor Swift performs in you know uh coliseums and sports arenas around the country. And you know news has it that she's going to be at the you know Atlanta Braves Stadium in Atlanta. And so the the the stadium fills up. This is the equivalent of you know early October you know September o early October for Bitcoin. The price is going up. Everybody's piling in. Everybody's certain Taylor Swift is about to perform. Now, the stadium is mostly full of non-sophisticated people. They got word on the street that Taylor Swift might perform. They piled into the stadium. They don't really understand how her concert schedule works. They don't really understand what it takes to put on a concert. They just filled up the coliseum uh the sports arena because there was a rumor and now they've been sitting around. Well, as the days will grind on and the weeks grind on, those people start to leave. But the stadium is not emptying out because again the price of Bitcoin has been in the high 80s to low 90s for a couple months now. Just in that ballpark. Sometimes it's been a little bit higher, sometimes a little bit lower, but it's been in the high 80s to low 90s for a couple months now. So if you think about that as sort of how full is the stadium, let's just translate those thousands into percentage points and say, well, the stadium's been, you know, between 85 and 95% full this whole time. So clearly there's no progress because the stadium stays about 90% full. And the answer is no. There's a big difference. The difference is all the people who does don't understand how Taylor Swift performs concerts and what it takes to put them on. Those people are getting bored and leaving. So the question is who's replacing them? The answer is all the people who have FlightAware app on their phone. They're tracking the tail number of Taylor Swift's two aircraft. They're watching the crew set up the lights and set up the sound. They understand that everything they're watching means Taylor Swift is going to perform in the Atlanta uh Atlanta Brave Stadium. They know that factually because of what they can observe. So, as the short-term people cycle out because they don't understand what they're seeing and they're getting bored and they assume, hey, if Taylor Swift hasn't performed yet and it's been 2 months, maybe she won't ever perform. And they cycle out. All the people with FlightAware on their phones tracking her tail number of her jets uh are all cycling in because they can see that the patterns are line lining up where a concert is about to happen. So that is what's happening in Bitcoin right now. There is tens of billions of dollars of buying happening every day. And the reason the price is not going up is because there's tens of billions of dollars of selling of people who frankly can't afford to sell. So the greatest disappointment at times like this is that the people who need Bitcoin the most are the unsophisticated people. The people that are on Main Street, they're getting eaten by inflation. They bought Bitcoin because it was going up, but they don't realize it's the one thing that can actually save them from inflation. So the very people who need Bitcoin most are the people who are least savvy and least capable of dealing with inflation. And unfortunately, those are the people who sell an asset at times like this. So, who's buying it? Well, Wall Street's buying Bitcoin. You know, investment banks are buying Bitcoin. Sovereign nations are buying Bitcoin. Rich people are buying Bitcoin. Sophisticated investors are buying Bitcoin. All the smart people or most of them are buying Bitcoin and they're buying it from the unsophisticated people who don't realize what they hold. A classic example of this is someone I talked to one time uh who bought uh $5,000. They bought Bitcoin. I don't know how much they bought Bitcoin at 5,000 a coin because everybody in their uh workout facility was buying Bitcoin. So someone that went to their workout facility was into Bitcoin. So they all decided to buy Bitcoin and they all bought it at around $5,000 per coin. And then they all sold it at around $20,000 per coin because they quadrupled their money. And they all thought they were smart because, you know, you buy it at five and sell it at 20 and they all thought that's how the, you know, how investing works. No, you find a life-changing asset like Bitcoin, you buy it at five or at 88 or at 92 or whatever the price is today, and you hold on to it for a long time. The the people who bought Bitcoin at 5,000 and sold it at 20 didn't realize that they were missing a once- in a generation opportunity to create wealth and beat inflation. And instead of that, they just quadrupled some amount of money. So you put in $5,000 and 5,000 a coin, you buy one Bitcoin, you sell it at 20,000, you get $15,000 difference. 20,000 minus 5, you buy yourself something nice, go on a nice vacation, you know, put a down payment on a house, whatever it is. But then it's gone. Like you don't have it anymore. So the people who need Bitcoin most are the people who are selling it right now. The people who need Bitcoin the least are the people who are buying it right now because they are the most sophisticated and realize what Bitcoin is and how much of a uh return on investment they're ultimately going to make. So I wish that all the people who would who are selling Bitcoin right now would stop. The people who are selling Bitcoin right now cannot afford to be selling Bitcoin right now. Many of them are the people that are hardest hit by inflation, the hardest hit by rising prices and the unaffordability crisis all around us. Those people need Bitcoin the most. But the problem is those people are not the ones buying it right now. They're the ones either selling it right now or not buying it at all. And the people again who need Bitcoin the least, investment bankers, sovereign wealth funds, uh you know, uh hedge funds, wealthy people, astute investors, those people already have good options for wealth creation. And granted, Bitcoin is a better wealth creation option than their other alternatives, but they actually have good alternatives, but those people are smart enough to realize Bitcoin is the best alternative, and those are the people buying it right now. So, just like the Taylor Swift concert, by the time Taylor Swift actually gets around to performing, all of the smartest people that have been following her tracks and understand how the whole system works, the stadium will be full of exactly those kind of people when she finally shows up because they will be there waiting because they see her flight coming in and landing at the Atlanta airport. Meanwhile, all the people who really wanted to see the concert the most but were the least sophisticated, they've long since left the stadium by the time she shows up. And the stadium is completely packed to the gills with sophisticated people who understand how the system works. So, if you own Bitcoin, don't sell it. If you don't own Bitcoin, buy some. If you own some Bitcoin, buy more. You can buy it on sale right now, and when it goes way up, everybody's going to be reaching out to me saying, "Hey, is now a good time to buy Bitcoin?" The answer will be yes. But why miss out on the run between 21, thou or sorry, 91,000 and 150,000 and then buy it at 150? Why not double or almost double your money first instead of waiting for the run to happen first? It just makes all the sense in the world. So, uh, smart people are buying. People who don't understand what they own are selling. Uh, please join the smart crowd. That's where the action is at and it's where the action is going to be in the future.