Bitcoin is NOT “tied to the US Dollar”

00:01 Bitcoin is not tied to the US dollar. I 00:04 hear a lot of objections to Bitcoin from 00:06 various people for various reasons, but 00:08 one of the ones that makes literally 00:10 zero sense is people saying, "Yeah, but 00:12 the problem is the US dollar has all 00:14 these problems and Bitcoin is tied to 00:16 the US dollar." Bitcoin is not tied to 00:18 the US dollar. Bitcoin is not tied to 00:21 any fiat currency. 00:26 change Bitcoin for any other currency, 00:28 any other commodity and just about 00:30 anything else. In fact, for many years 00:33 now, the Federal Reserve itself, the 00:35 central bank of the United States, um 00:38 that is the world reserve currency, hey, 00:40 they have tracked the price of eggs in 00:43 Bitcoin. So even if you're at a farmers 00:45 market and the US dollar, you know, 00:47 poof, magically went away, the Federal 00:50 Reserve themselves is tracking what is 00:52 the price of eggs priced in Bitcoin. So 00:56 you could literally go up on your phone, 00:58 even in a world with no US dollars, you 00:60 could f check the official Federal 01:02 Reserve, you know, tracking and you 01:04 could find out what do eggs cost as 01:06 priced in Bitcoin. So uh when again when 01:09 people say this, it reminds me, you 01:11 know, when we were kids, right? uh you'd 01:13 find like wrapping paper with these long 01:15 cardboard tubes in them and you could 01:17 take the long cardboard tube and you 01:18 could look through it and it would it 01:19 would show you like this tiny little 01:21 circle of the world. And whenever anyone 01:24 says 01:25 that Bitcoin is tied to the US dollar or 01:28 if the US dollar goes down, Bitcoin will 01:30 go down with it because Bitcoin is 01:32 priced in US dollars. It reminds me of a 01:34 kid looking through one of these 01:36 cardboard tubes and saying, "Yeah, but 01:38 all I see is this tiny little circle. 01:40 That's all there is." And it's like, 01:42 well, put away the tube. There's a huge 01:44 wide world out there. If all you can see 01:47 is Bitcoin priced in US dollars, it is 01:49 because you have a very US- ccentric 01:51 view of the world. You don't realize 01:54 that there are 160 other currencies in 01:57 the world and that Bitcoin is priced in 01:58 all of them. You've never gone on 02:00 Trading View and tracked the price of 02:02 Bitcoin in gold, the price of bit 02:04 Bitcoin in oil, the price of Bitcoin in 02:08 soybeans, corn, wheat, silver, all of 02:11 that. Bitcoin is priced in everything 02:13 because Bitcoin can be can be used to 02:15 purchase anything. It can be used to 02:17 purchase any other currency in the 02:20 world. It can be used to purchase any 02:22 other commodity in the world and any 02:24 other product or service. I can show up 02:26 in literally any country on the planet 02:28 right now and I can either buy 02:30 everything I need directly with Bitcoin 02:32 from someone in that country that's 02:34 willing to take Bitcoin for a car or a 02:37 house or you know groceries or whatever 02:39 I need. I can either find somebody that 02:41 will directly take Bitcoin for that in 02:43 literally any country anywhere in the 02:45 world. I can trade Bitcoin directly with 02:48 no US dollar involvement directly for 02:51 the local currency and then use the 02:52 local currency to buy anything I need. 02:54 So when people say Bitcoin is only 02:56 priced in US dollars, it's like what do 02:58 you think happens in Japan? So you think 03:00 when somebody swaps Japanese yen for 03:03 Bitcoin that they're going to US dollars 03:06 in Japan first? No, that's not what's 03:08 happening. That makes no sense. They're 03:10 going straight for J from Japanese yen 03:12 to dollars. Sorry, not to dollars. To 03:15 Bitcoin, not to dollars. And same in 03:18 Thailand. If you're in Thailand, there's 03:20 huge uh billboards that have the price 03:23 of Bitcoin priced in the Thai bot, which 03:26 is the Thai currency. And if you go on a 03:28 Thai cryptocurrency exchange and you 03:31 want to buy a coin with Thai bot, 03:33 they're not bouncing through US dollars 03:35 first. They're going straight from 03:37 Thaibot to uh to Bitcoin and back again 03:41 based on the floating exchange rate. So, 03:43 Bitcoin has a floating exchange rate 03:45 with literally every other currency, 03:47 commodity, and everything else you could 03:48 possibly want. Everything in the world 03:50 can be bought with Bitcoin, and you can 03:53 buy any other currency in the world with 03:54 Bitcoin. It has nothing to do with the 03:56 US dollar. In fact, the US dollar could 03:59 completely disappear tomorrow and it 04:01 would actually accelerate the adoption 04:03 of Bitcoin because a bunch of people 04:04 that currently rely on the US dollar, 04:06 some of those would switch to Japanese 04:09 yen, Chinese Juan, uh, you know, 04:12 whatever, you know, Indian rupees, the 04:15 euro, some of them would switch Canadian 04:18 dollars, Mexican pesos. Some of the 04:20 people currently dependent on US dollars 04:22 if the US dollar just magically went 04:24 away, some of those people would switch 04:27 to another national currency like any of 04:30 the ones I just mentioned. But a lot of 04:31 them would just go straight to Bitcoin 04:33 and just start buying everything in 04:34 Bitcoin. And every shop owner and every 04:36 store in the United States would have 04:38 the choice if the US dollar suddenly 04:40 went poof is okay, do we start listing 04:42 our prices at, you know, Costco and 04:46 Kroger? Do we start listing them in the, 04:48 you know, European euro or the Canadian 04:50 dollar or the Mexican peso or do we just 04:52 straight up list them in Bitcoin and 04:54 they probably do a mix of more than one 04:56 currency because if the US dollar went 04:57 away all of a sudden, which it's not 04:59 going to, but if it did all of a sudden, 05:01 um, you know, they would have to price 05:03 it in something and it wouldn't be US 05:05 dollars because US dollar went away. So, 05:07 same thing happens all around the world 05:09 when their local currency goes away. 05:11 Give me one second. 05:16 It is a very common occurrence around 05:17 the world for fiat currencies which 05:19 means madeup government issued 05:20 currencies to go to zero effectively. So 05:23 most recently in Venezuela but before 05:25 that it's happened in you know numerous 05:27 countries around the world. What happens 05:30 is the store shops just start pricing 05:31 everything in something other than the 05:32 local currency because nobody wants the 05:34 local currency anymore. And so they 05:36 start pricing it in US dollars or pesos 05:38 or euros or whatever currency is nearby 05:42 and close geographically and available 05:44 for their citizens. That's not whatever 05:47 the currency is that went to went to uh 05:48 went to zero. So Bitcoin, yes, you can 05:51 get it priced in US dollars, but Bitcoin 05:53 is not dependent on the US dollar. It's 05:56 not priced only in dollars. it there's 05:58 no dependency there. There's and Bitcoin 06:01 would actually thrive in a world if the 06:03 US dollar just went away. So anytime 06:05 someone says look look there are a lot 06:07 of great questions in bitcoins a lot of 06:10 great questions that I deeply appreciate 06:11 because they they show sort of a deep 06:14 thought about how Bitcoin works or how 06:16 it would work including the questions I 06:19 posted uh it was either late last week 06:20 or I think it was late last week um 06:23 where I did like five questions in a row 06:25 question one of five which were just 06:27 fantastic questions. This one does not 06:30 show deep thought. So, if somebody says 06:32 to me, "The problem with Bitcoin is it's 06:35 tied to the US dollar." I'm like, "Um, 06:38 no." Like, "Turn your brain on. It's not 06:41 tied to the US dollar." Like, that makes 06:44 no logical sense. How do you think that 06:45 works in foreign countries? That makes 06:48 no sense. I'm sorry, but it makes no 06:50 sense. So, Bitcoin is not tied to the 06:52 dollar. It's not dependent on the US 06:54 dollar. Forgive the rant, but when 06:56 people make this, you know, accusation 06:58 or criticism of Bitcoin, I'm like, think 07:01 that through. Like, it makes me want to 07:02 say, just let me give you 30 seconds to 07:04 think that through. Just think about 07:06 that for 30 seconds and then see if your 07:09 question makes any sense at all. The 07:11 answer is it makes no sense. Like, no, 07:13 that's not how the world works. That's 07:15 not how anything internationally works. 07:16 They don't bounce through the US dollar 07:18 every time they convert, you know, 07:20 Chinese currency to Japanese currency. 07:22 No. Like, that makes no sense. So, 07:25 Bitcoin is not tied to US dollar. 07:26 Bitcoin would thrive in a world with or 07:28 without the US dollar. And Bitcoin can 07:30 be priced in anything and anything else 07:32 in the world is also priced in Bitcoin, 07:35 including the Federal Reserve, the price 07:37 of eggs. If you want to go check it out 07:39 online, just Google uh uh Bitcoin price 07:41 of eggs or egg price of Bitcoin or 07:43 something like that. And you might have 07:45 to include the word Federal Reserve or 07:46 Fed Reserve or something like that, but 07:48 you can go look it up and they track it. 07:51 Have a great day.