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