Bitcoin FAQ

00:02 hey everyone so I'm going to do a 00:04 frequently asked questions segment here 00:06 on bitcoin so here we go uh first 00:10 question I'm going to ask and these 00:11 first two questions are from my 00:12 mother-in-law so thank you shout out 00:14 right there uh it says can you do a post 00:16 explaining the coming digital dollar 00:18 that we keep hearing about and how or 00:20 why Bitcoin is a much safer alternative 00:22 so when people talk about a digital 00:24 dollar there's a few different things 00:25 that they talk about but Mo the most 00:27 common is called a central bank digital 00:29 currency a 00:31 cbdc a cbdc is the government's answer 00:35 to 00:36 cryptocurrency essentially when 00:38 cryptocurrency came along especially 00:39 Bitcoin specifically with a fixed supply 00:42 of 21 million coins um and people 00:44 started using it and now Bitcoin has a 00:46 total market value that's larger than 00:48 silver and above $1.4 trillion worldwide 00:52 the government said uhoh we got to do 00:54 something and so rather than do the 00:56 responsible thing which is Stop Printing 00:58 all the money because if they Stop 01:00 Printing all the money then their own 01:02 dollars US dollar or whichever currency 01:05 around the world would be way more 01:07 valuable if they would just stop 01:08 printing so much of it but of course 01:10 when do politicians ever stop printing 01:12 money it's the Magic Money printer it's 01:14 the most fun thing they ever do is print 01:16 magic money that they get to spend and 01:17 you don't so the government decided well 01:19 we're not going to actually stop 01:21 spending money we're not going to be 01:22 responsible with our currency so the 01:24 next best thing is to pretend that the 01:27 reason people are using Bitcoin is 01:29 because it's digital now now that's not 01:30 the primary reason the primary reason is 01:33 because it's scarce there's less of it 01:35 so it's more valuable nobody can print 01:36 it that's the the primary value of 01:38 Bitcoin is that it's scarce uh just like 01:41 the primary value of gold is that it's 01:42 scarce uh but the government said no no 01:44 no no that's not what people really want 01:47 they want a digital dollar so the 01:49 government came up with this concept of 01:51 a central bank digital currency a cbdc 01:54 which is essentially a digital version 01:56 of the fiat currency which means madeup 01:58 currency that governments already have 01:60 like the US dollar Etc uh the problem 02:03 with a central bank digital currency 02:04 which is really terrifying is it's 02:06 centrally controlled by the government 02:08 so not only can the government uh view 02:10 every transaction you make they can also 02:12 decide on a whim that they don't like 02:14 how you're spending your money and they 02:16 can decide all of a sudden to block 02:17 certain transactions or to reverse 02:20 current transactions or they can decide 02:23 that the amount of money you have in 02:24 your bank account is not the optimal 02:26 amount the government thinks you should 02:28 have and they can remove money from your 02:30 bank account uh even more so with a 02:32 central bank digital currency a cbdc the 02:35 government can actually put an 02:36 expiration date on your money so if they 02:38 decide you're not spending your money 02:40 fast enough because they think you 02:42 should stimulate the economy um which 02:45 savings and investment is a much better 02:47 stimulant for the economy than uh than 02:49 just like frivolous spending but if the 02:50 government decides you need to do more 02:52 frivolous spending they can put an 02:54 expiration date on your money and for 02:55 example say if you don't spend your cbdc 02:58 your Central Bank digital currency by 03:00 the end of this week we will 03:01 automatically deduct 1% or 5% and so 03:05 they can just uh declare that everybody 03:07 has to spend 5% of their money in all of 03:10 their bank accounts by the end of the 03:11 week and if they don't then that money 03:13 will expire and be removed from your 03:15 account so the whole thing related to a 03:17 central bank digital currency is 03:18 terrifying um numerous pledges have been 03:21 made from Donald Trump to Ted Cruz to uh 03:24 numerous others that they will never 03:26 allow a central bank digital currency in 03:28 the United States it would require 03:30 Congressional approval even with 03:32 Congressional approval it would take 03:33 many years to implement and even so the 03:36 Central Bank digital currency would have 03:37 to compete with Bitcoin and nobody in 03:40 their right mind is going to um invite 03:44 or going to voluntarily use a um a 03:47 central bank digital currency when they 03:49 have an alternative like Bitcoin because 03:52 literally it's the stupidest thing 03:53 humans have ever invented is a central 03:56 bank digital currency so not only do I 03:58 think we are unlikely to ever have a BDC 04:00 here in the United States uh there is 04:02 one in um there is one in China China is 04:06 heavily promoting it China has you know 04:08 tried every which way to stop people 04:09 from using Bitcoin people are still 04:11 using Bitcoin in China and they keep 04:13 promoting their Central Bank digital 04:15 currency and people keep not using it 04:17 because it's a horrible idea and it's 04:19 awful in every way so that's what a 04:21 central bank digital currency is I don't 04:23 believe it's a threat in the United 04:24 States and even if it was I think 04:26 Bitcoin will outcompete a cbdc in every 04:29 way because uh a cbdc does not have any 04:33 of the benefits of Bitcoin all right so 04:35 that's the quick primer on a cbdc uh 04:37 next up second question also from my 04:39 mother-in-law is what if the worldwide 04:42 web or the internet goes down or it was 04:44 uh you know blown to Smither by aliens 04:47 uh would that be a problem for Bitcoin 04:49 how would we use Bitcoin um etc etc so 04:53 great question also there I get this 04:55 question a lot give me one second 05:00 so here's the thing virtually all of the 05:02 money in the world is already digital 05:04 meaning if aliens blew the financial 05:07 system to Smithers or if there was a EMP 05:11 blast an electromagnetic pulse blast 05:13 that disabled the electronic system or 05:15 the internet went down the vast majority 05:17 of your money in your bank would go down 05:19 also uh so one it's extremely unlikely 05:22 that the internet ever goes down for an 05:24 extended period of time around the world 05:26 and second if it did it would take your 05:28 bank and all your bank accounts and at 05:30 and everything else with it and the 05:32 likelihood that is that Bitcoin would be 05:34 the very last thing to go down and the 05:37 very first thing to come back up and in 05:40 that intern period uh unless you have 05:42 like physical cash in your hands that 05:45 you can transact or gold or silver coins 05:47 you know the world is just going to be 05:49 back to barter for a short period of 05:50 time um but again that's the probability 05:53 of that I would say is zero uh Bitcoin 05:56 is running on millions of computers 05:58 around the world it only requires one of 06:01 those computers to be on in order for 06:02 the Bitcoin Network to work and the 06:04 Bitcoin uh nodes are even running on 06:06 satellites so even if something happened 06:08 to the Earth Bitcoin would still be 06:10 running by satellites and it would be 06:11 back up as soon as anybody put up a 06:13 satellite dish magically Bitcoin would 06:15 be back online I can promise you your 06:17 Traditional Bank account would not come 06:19 back online just because you got a 06:20 satellite dish I promise you that every 06:23 other financial institution would take 06:25 forever to come back online as compared 06:28 to uh how long it takes bit going to 06:30 come back online so I don't consider uh 06:32 cbdcs to be a significant threat I don't 06:35 consider the internet just going 06:37 completely down uh as a result of you 06:40 know anything I don't see that as a 06:42 likely or uh a threat worth worrying 06:45 about uh regardless uh as well all right 06:48 so the third thing I wanted to cover in 06:49 this video is what is the Bitcoin having 06:52 or some people call it the havening so 06:55 when Satoshi Nakamoto invented Bitcoin 06:58 he uh established a apply schedule which 07:01 is how are we going to get these 21 07:03 million Bitcoin that will ever exist how 07:05 are we going to get those into the wild 07:06 into the hands of people to use them and 07:09 so what he came up with is a very simple 07:11 math formula that says we're going to 07:13 release 50 Bitcoin every 10 minutes into 07:16 the wild and it's uh the way they're 07:18 released is by paying Bitcoin miners 07:21 which are the people that secure and 07:23 audit the Bitcoin Network so everybody 07:25 that is securing and auditing the 07:27 Bitcoin Network originally got paid 50 B 07:30 Bitcoin every 10 minutes but in order to 07:32 make sure that the supply was limited 07:34 Satoshi Nakamoto set a uh a a formula in 07:39 place where the supply dropped in half 07:41 every four years and it just so happens 07:43 that it aligns roughly with the 07:45 presidential election Cycles so it's so 07:47 far happened in presidential years such 07:49 as 2012 2016 2020 and this year 2024 so 07:53 that is coming up in about 35 days 07:56 around call it uh April 19th or so in 07:59 the ball 08:00 Bitcoin will go through its I believe 08:02 fourth having or havening and what will 08:05 happen right now so for the first four 08:07 years up until 2012 there was 50 Bitcoin 08:09 issued every 10 minutes then it dropped 08:11 to uh TW excuse me to 25 Bitcoin for the 08:15 next 4 years then it dropped to uh 12.5 08:19 Bitcoin for the next four years and now 08:21 it is at 6.25 Bitcoin so for the last 08:23 four years every 10 minutes the Bitcoin 08:26 miners uh when they uh mine a new block 08:29 of Bitcoin transactions they get 08:31 rewarded in exchange for securing and 08:33 auditing the network they get rewarded 08:35 with 6.25 Bitcoin that will drop in half 08:38 again around April 19th and that will 08:40 drop to 08:42 3.125 Bitcoin now why does that matter 08:45 well it matters because right now the 08:48 equilibrium price uh assumes miners are 08:52 selling 900 Bitcoin every um every 10 08:56 minutes sorry not every 10 minutes every 08:58 day as a result of getting 6 .25 Bitcoin 09:00 every 10 minutes that is a total of 900 09:03 Bitcoin a day so right now the Bitcoin 09:05 miners are selling into the marketplace 09:08 900 Bitcoin every day well after April 09:11 19th or so the Bitcoin miners will only 09:14 have 450 Bitcoin to sell to the network 09:18 every day so the result as a result when 09:20 you have a supply and demand uh balance 09:23 and suddenly there's half as much new 09:26 supply of Bitcoin that is produced to 09:28 the marketplace the only thing that can 09:30 reestablish uh that Supply demand is for 09:34 the price to go up because the supply 09:36 cannot go up because of bitcoin's fixed 09:38 Supply and so when the demand stays 09:40 stable and the supply drops in half of 09:43 new coins the only way to establish a 09:45 new equilibrium is for the price to rise 09:47 so we've seen a huge runup in the price 09:50 of Bitcoin leading up to today above 09:53 $72,000 per coin as I uh talk right now 09:57 but that 10:12 18 months following the having there's 10:14 been a huge runup in the price of 10:17 Bitcoin um so the runup the 2012 having 10:20 resulted in a huge runup all the way 10:22 through the end of 2013 the 2016 having 10:25 resulted in a huge run price run up all 10:27 the way through the end of 2017 again 10:29 always the year after the 2020 having 10:31 which happened in April in March or 10:33 April of 2020 resulted in a huge run up 10:36 in price all the way through uh towards 10:39 the end of 2021 again the year after and 10:56 would four is the Bitcoin exchange 10:58 traded funds the bit 10:60 ETFs that were approved in January of 11:02 this year just two months ago the 11:04 Bitcoin ETFs have put a huge amount of 11:08 demand pressure on the price of Bitcoin 11:10 so the amount of total buyers as the 11:13 result of being able to buy Bitcoin by 11:15 just typing in fbtc for example the 11:17 Fidelity Bitcoin uh exchange traded fund 11:20 which the ticker symbol is fbtc as a 11:23 result of plugging that into any 11:25 brokerage account you can now buy 11:26 Bitcoin 11:41 it's a lot easier for them to just plug 11:43 in their bro brokerage account and buy 11:46 that way rather than set up a new 11:47 account in a new medium so we've have we 11:50 have this massive amount of demand that 11:52 came online in January of this year as a 11:54 result of the Bitcoin ETFs and now that 11:57 demand is facing a drop in Supply coming 12:00 up around April 19th where there will be 12:03 half as many Bitcoin so right now all of 12:05 the demand some of that demand is being 12:07 offset by 900 new Bitcoin that is being 12:11 produced 12:25 every and the total demand for Bitcoin 12:27 in the world will have to uh is just 12:29 going to there's no way um uh for that 12:33 demand to be fulfilled other than the uh 12:36 the price to go up now the price can 12:37 also go down obviously something could 12:39 uh spook the market everybody sells 12:41 their Bitcoin for a period of time then 12:43 everybody realizes that whatever it is 12:45 that spooked the market was not a big 12:47 deal after all then they go back and buy 12:49 a bunch of Bitcoin so the price will 12:50 still go up and down but I think the 12:52 Bitcoin having is uh is still a huge 12:54 deal and historically 13:10 fail worldwide um the yeah if the 13:14 internet goes down yes Bitcoin does go 13:16 down if the entire internet is down but 13:18 Bitcoin will be the very last thing to 13:20 go down if the internet goes down and it 13:22 will be the very first thing to come 13:24 back up as soon as the Bitcoin comes 13:26 back up as soon as the Bitcoin Network 13:28 um or sorry as soon as the internet 13:29 comes back up Bitcoin would be the very 13:31 first thing to come back up because 13:32 Bitcoin unlike your bank account Bitcoin 13:34 is running on satellites in addition to 13:37 tens of thousands or even millions of 13:39 computers around the 13:54 world month and uh I will anticipate a 13:57 huge price run up between now and at 13:59 least November of 14:01 2025 which is more than 18 months from 14:04 now I anticipate a huge price run up uh 14:07 if history is any guide based on the the 14:39 uh let me know if you prefer these live 14:42 videos or if you prefer written comment 14:44 content I know when I put written 14:46 content out it's really long but I also 14:48 know that these uh videos run long as 14:50 well so let me know if you prefer 14:51 written content or videos and I'll try 14:54 to serve you the best I possibly can in 14:56 whatever medium is best for you just let 14:58 me know thanks everyone