Bitcoin is Down — Here’s Why

Bitcoin is down right now because supposedly the incoming chairman of the Federal Reserve in the United States is going to be super responsible with the US dollar, which means we won't need Bitcoin as much anymore. None of that is true. Let's walk through it. It's typical, you know, craziness that creates an incredible buying opportunity. So, bunch of people are going to be happy. They bought a bunch of Bitcoin in the 70,000s. And here we go again. We've been through this a gazillion times. Okay, first of all, what is the news that is driving the drop in Bitcoin, gold, silver, precious metals, Bitcoin, it's all tanking. Crypto, everything's tanking right now. Well, the new chairman, Kevin Walsh, w Kevin Walsh is uh I don't know how you pronounce it, but anyway, let's call him Kevin. Kevin is the new appointed chairman of the Federal Reserve of the United States. Okay, so he takes over I think in May, so it's like a few months away. Anyway, he is pro Bitcoin, interestingly enough. He's said some very positive things about Bitcoin. Uh but what is overshadowing that is historically he has been in favor of uh a stronger US dollar and less sort of Federal Reserve insanity. The thing is it just doesn't matter because what Kevin wants to do doesn't matter because he has been painted into an impossible corner with irresponsible government printing and a mountain of debt. So for many many decades, the Federal Reserve has uh held interest rates too low for too long, resulting in a huge amount of debt being taken out that would otherwise not have been taken out, making debt payments unaffordable at higher interest rates. Additionally, Washington DC, the politicians in Washington have zero interest in containing their spending. The whole thing where, you know, uh Elon Musk was going to cut $2 trillion out of the budget, uh Elon Musk did his job. He identified the cuts and Congress didn't want to do any of them. I mean, it was just the most ridiculous stupid joke you ever saw in your life. Um, so, uh, Kevin Worst has zero choices about what he does with US monetary policy. When the building is on fire, you spray the water at it to put the fire out. Like, you don't have a choice. It doesn't matter if you're a conservationist who wants to conserve the water. When the building's on fire, you got to spray the water at it. And that's what he's going to do. All right. So, let's walk through some examples. The US government is $38 trillion in debt. So, let's translate it to, you know, a typical home, and I'm just going to use random round numbers. Let's say you have a household that makes $50,000 a year, and they're a million dollar in debt. Okay? So, they have debt that is 20 times the their income. And I didn't run the math for the US. It's some ridiculous numbers, but we're just going to use this math. Okay? So, what does that family have? Let's assume they have in their basement a magic money printer that allows them to print the money that they owe other people. All right. So, what choices they have? Number one, they can try to save money and pay down their debt. But if you're only making 50,000 a year and your debts a million a year and the interest payments exceed your income, there's no way you're paying it down. So, there is no chance. It is mathematically impossible for the United States to pay down their debt. They cannot. The UN US government under no circumstances can pay off $ 38 trillion with the US dollar being anywhere close to the value it is today. It's just completely ma mathematically impossible. Okay, so they're not going to pay they're not going to make cuts. We saw that with the whole Doge thing where they identified the cuts and they never made them. And if that couldn't cut the government, nothing's going to cut the government. Okay, so the family could try to, you know, cut their expenses and save up and pay down the debt. Impossible. It's impossible for a family a million dollars in debt on a $50,000 a year income. It's impossible for the US government on a $ 38 trillion uh deficit regardless of their income. It's just not going to happen. All right? So, they're not going to pay it off. They could default, right? The family could say, "Hey, we're just not going to pay any of our debtors." The problem is the US government owes a bunch of money to Japan and China and a bunch of other countries that have nuclear weapons. So the US government is never going to default on debt that it owns that it owes to other countries that have nuclear weapons. And it's never going to default when there's a magic money printer in the basement. Just like a family with $50,000 of income and a million dollar in debt with a magic money printer in the basement is never not going to eventually use the magic money printer in the basement to to pay off their debts. They're just going to print the money even if it causes a ton of inflation, even if it's, you know, horrible for workingclass people. Even if wage earners get totally screwed. You know, asset prices go through the w roof, but wage earners get totally screwed. Doesn't matter. They're going to print the money. They have to print the money. The US government is not going to default on its debt because it has a magic money printer that can make the money that it owes. Why would you ever default when you can magically make the money out of thin air, even if it involves screwing over your own people, which it does. So, the US government's not going to pay it off and they're not going to default, which means what are they going to do? They're going to print the money. Kevin Walsh is going to print the money. Everybody's going to print the money. It doesn't matter who took over as Federal Reserve chairman because we're in an age of something called fiscal dominance. What is fiscal dominance? Fiscal dominance is when the government is doing such a bad job of controlling spending that the spending decisions control the interest rate more so than the actual Federal Reserve controls the interest rate. So right now it doesn't matter what the Federal Reserve wants to do. At the end of the day, they have to take care of this $38 trillion debt. And if they have high interest rates for sound money, that's going to result in a completely unaffordable $38 trillion. So they're going to lower the interest rates. They just are. It's just a mathematical certainty. So just like with the whole Doge thing of government, you know, cutting, if you were, you know, naive enough to think that the government was going to cut trillions of dollars out of its budget, then you might also be naive enough to say, "Oh, well, Kevin W is going to result in a strong dollar and the US, you know, currency is not going to inflate blah blah blah." That's just totally not true. That's completely head in the sand, inconsistent with anything based on reality. Second, okay, he was appointed by Donald Trump. We know Donald Trump wants low interest rates. We know Donald Trump wants the Federal Reserve to print a bunch of money to bring interest rates down, even if it results in inflation going up. Now, supposedly, I mean, if you talk to them, they will say, "No, they did not have this agreement in advance." I promise you, Donald Trump did not appoint somebody to be chairman of the Federal Reserve that's not going to do what he thinks they're going to do. Donald Trump wants lower interest rates, which means printing a ton of money. and Kevin Wer is going to print a bunch of money. That's exactly what's going to happen. Um for two reasons. One, the guy who appointed him said, "You need to print a bunch of money." Number two, he doesn't have a choice because the US government can't pay off the debt and their only option is to print a ton of money. So, they're going to print a ton of money. It's just not that hard. So, Bitcoin is on sale right now. When I started this video, it was 78,000, but it had dropped just under 76,000 earlier uh like in the last few hours. Bitcoin is super on sale. You can buy it super on sale. You can buy Bitcoin now at $78,000 and spend it probably later this year above $100,000. If you want to live for free on Bitcoin, if you want to completely change your life by making inflation irrelevant to you, $78,000 Bitcoin is a great way to do that. Now, so is $95,000 Bitcoin. So is $85,000 Bitcoin. But 70 $78,000 Bitcoin is even better than any price higher than $78,000. Again, I just Anybody that thinks the Fed's not going to print the money, what do you think's going to happen? Like, what you think the You think the government's going to cut itself? No, it's not going to do that. You think we're going to default to our nuclear neighbors? That's not going to happen. We are going to print the money. They're going to print the money. The reason Bitcoin exists is because they're going to print the money because they are fallible, sinful humans who will always print the money. They'll always print the money. They have a magic money printer. They will always eventually print the money. Which is why we have Bitcoin, the currency that cannot be printed by stupid people, incompetent people, or even smart people. It doesn't matter. It doesn't matter what your competence level is. You can't make more than 21 million Bitcoin. You can't. There's only 21 million Bitcoin. And however much of it you buy right now is how much you will own that nobody else can make more of. However many US dollars you own right now is is part of an infinite supply. Those US dollars you have right now start losing value. the minute you own them. It's like a brand new car. The moment you drive it off the lot, it loses value. The US dollar is that way. The moment you put it in your pocket or in your bank account, it starts losing money, losing value immediately. And the value never increases. It only ever goes down. You have a solution to that. You have Bitcoin. Kevin W is going to print the money. Uh Jerome Powell would have eventually printed the money. He said he wasn't going to, but eventually Kev uh even Jerome Powell, the current Federal Reserve chair, would print the money because the system breaks if he doesn't print the money. He has to print the money. So, now is a fantastic time to buy Bitcoin. Uh you could buy it on sale. I think a ton of people are going to regret not buying Bitcoin right now. Um could it go lower? Yeah, it could go some lower, but the lower it goes, the less lower it could go from where it is because there's just there's just a limit to how much it could dip. The best thing about Bitcoin is it always comes back. That's that's this the certainty of Bitcoin is it will always be eventually higher to an all-time high. And you could not say that all about virtually any other asset. Other assets can go to zero. General Motors did go bankrupt in 2008 after the 2008 recession. Companies can go bankrupt. Money money does not go bankrupt when it has the best monetary properties in the world. Bitcoin has the best monetary properties in the world. It is more divisible, durable, portable, fungeible, uh authenticatable, and scarce than anything else in the entire universe. It has the attributes of money. Something with the ideal attributes of money doesn't go to zero. It doesn't go bankrupt. It eventually always goes radically higher than whatever the price is today. It's just a matter of time. So, that's where we are. Bitcoin will eventually be at a radically higher price than it is right now. People will wish they had bought a ton more than they have right now. And I'm going to be talking to all sorts of people over the next two or three years who are going to say, "Well, Joel, that's a great I mean, I love your approach and I think it's awesome, but I didn't buy Bitcoin at $78,000." It's like, "Well, you could have right now. You can buy it at 78,000." Like, as I'm talking, you can buy as much Bitcoin as you can. Link it to your link, link Coinbase, link Strike, link it to your bank account, and you can buy as much Bitcoin as you want right now on a weekend. You can buy Bitcoin. It's not that hard. So, this dip is temporary. I don't know how far it will dip. Nobody knows. But I just know it's temporary. And when you know it's temporary and you know they're going to print the money and you know that inflation is otherwise going to eat you alive, then what choice do you have? Like you can go poor or you can buy Bitcoin. Like that's your choices. Get poor or buy Bitcoin. That's kind of what it comes down to. all the other assets, they may rise slightly ahead of inflation, but you're not going to get the kind of returns you think you're getting once you subtract the actual inflation from all of that. So basically, your options are buy Bitcoin or get screwed. That's what's h, you know, that's what's happening right now. So Bitcoin's on sale. Kevin Walsh is not going to change the responsibility of the Federal Reserve. I mean, this is ridiculous. If you think Kevin Worsh is going to change anything, that means you probably believe the promises of every new politician. Every time a politician shows up and tells you this time is different, they're going to be principled. They're going to be consistent. They're going to be blah blah blah. You know, all the problems will be solved in their first four years. If you believe politicians, then you probably believe that the Federal Reserve is going to be super responsible with the US dollar and that's never going to change. But come on, give me a break. I mean, what la land are we living in here? Buy Bitcoin. It's your hedge against inflation. It's on sale right now. It's just not that hard. It's on sale. Like it's so obvious. Let me know if you have questions. I I don't know how this could be more obvious. Buy as much Bitcoin as you can and hold on to it for as long as conceivably possible. It is literally that simple.