Bitcoin is NOT volatile! The world around it is! Bitcoin has been rock solid steady since 2009.

00:01 Bitcoin is actually not volatile. Now, 00:04 the price of Bitcoin moves around, but 00:05 when people say Bitcoin is volatile, 00:07 what they don't think about is that 00:09 there's actually two pieces to that 00:11 equation. The volatility of the thing 00:13 itself, and then the volatility assigned 00:16 to that thing. So, when people say that 00:19 someone, for example, a person is 00:21 volatile, what what they mean is the 00:23 actions of that person change. Their 00:25 mood changes, they're angry, they're 00:27 happy, they're upset, they get in 00:28 fights. A volatile person is hard to be 00:31 around because that that person their 00:34 moods or their emotions are constantly 00:36 changing. Bitcoin is the opposite. 00:38 Bitcoin is actually one of the least 00:39 volatile things in the entire world. So 00:42 what do I mean by that? Well, since the 00:43 Bitcoin network was launched in 2009, 00:46 the Bitcoin network has been humming 00:48 away, processing transactions, mining, 00:51 you know, the a new block of 00:52 transactions are cemented permanently 00:54 onto the Bitcoin blockchain about every 00:56 10 minutes. And it's been doing that for 00:59 16 and 12 years. 16.5 years. The Bitcoin 01:03 network has been humming along 01:05 beautifully, mining a block about every 01:07 10 minutes, setting that set of 01:09 transactions in stone and almost I mean 01:13 no variance like it is one of the most 01:15 stable things in the entire world. So 01:17 has the Bitcoin network ever failed to 01:19 process transactions? No. Has a 01:22 transaction on the Bitcoin network ever 01:23 been blocked by anyone? No. So even 01:27 email, even email now and then, you 01:29 know, a couple times a year I'll lose an 01:30 email like an email that was supposed to 01:32 come through just doesn't and it's not 01:35 in my spam folder, it's not in my 01:36 folders, it's not, you know, it's 01:38 nowhere like and the person resends the 01:40 email or forwards it to me and there it 01:43 is. But somehow my email didn't get to 01:45 them or their email didn't get to me. 01:46 And again, it only happens a couple 01:48 times a year and I send a ton of email. 01:50 But Bitcoin is not like that. The 01:52 Bitcoin network never fails to process a 01:54 transaction. The Bitcoin network will 01:56 always process transactions. No one will 01:58 ever be able to stop the Bitcoin 01:60 network. And it has been humming along 02:02 since 2009. So why do people say it's 02:05 volatile? Well, the answer is people say 02:07 it's volatile because they're describing 02:09 the price of a Bitcoin. The the price 02:12 does not change the underlying 02:14 technology. It doesn't change the 02:15 protocol. It does not change how Bitcoin 02:17 processes transactions. The price just 02:20 reflects the human opinion based on 02:23 supply and demand of what the value of a 02:25 bitcoin is at that exact point in time. 02:28 And that is based entirely on the the 02:30 laws of supply and demand, which is true 02:32 for every stock, every bond, every 02:34 commodity. What is the value of a bushel 02:37 of corn? It entirely depends on what 02:39 somebody is willing to pay for a bushel 02:41 of corn right now. But we don't say 02:43 corn. The actual coin coin corn corn 02:46 kernels may not be volatile unless 02:48 there's like weather or a drought or 02:50 something like that, but that doesn't 02:52 mean the price doesn't go up and down 02:53 quite a bit based on the laws of supply 02:55 and demand and how much desire and 02:57 demand there is for corn or wheat or a a 03:01 share of Amazon or Apple stock for 03:03 example. So what makes Bitcoin volatile 03:06 is people are using it and it's very 03:08 early in the adoption cycle. So, Bitcoin 03:11 is you is uh has been adopted by less 03:14 than 5% of the world. So, there's a very 03:16 small percentage of the world that is 03:18 using Bitcoin and they are very early in 03:20 their adoption of Bitcoin. So, very few 03:22 people in the world are living on a 100% 03:25 Bitcoin standard like I am where all of 03:27 their paycheck goes into Bitcoin. They 03:30 pay all of their expenses with Bitcoin 03:31 and they live on Bitcoin. the vast 03:33 majority of people who own any Bitcoin 03:35 of the 5% that own any own like 50 bucks 03:38 or 200 bucks or some relatively small 03:41 amount of money. Um, so Bitcoin's 03:44 volatile because it's early. The earth, 03:46 the world just gave birth to Bitcoin 16 03:49 years ago. It's early in its adoption 03:52 and its infancy and the price goes up 03:54 and down because adoption is so early. 03:56 And if the price was not volatile, then 03:58 it would not be volatile to the upside 04:00 either. And since everybody watching 04:03 this video wants Bitcoin to be worth 04:04 more than $1 million one day, you can't 04:07 get upside volatility without downside 04:09 volatility as well. The two of them 04:11 always go together. There's no such 04:13 thing as an asset that has a lot of 04:16 upside potential and no downside 04:19 volatility. Those two things always 04:21 always go together. So I am thankful for 04:23 Bitcoin's volatility because it means 04:25 there's a huge amount of price upside 04:28 potentially in the future which would 04:30 not be the case if Bitcoin was not 04:31 volatile at all. Assets that are not 04:33 volatile do not have high upside. Those 04:36 two things just never go together. So 04:38 when you think about Bitcoin you got to 04:40 separate what is the volatility of the 04:43 underlying technology which is none. 04:45 Bitcoin is the one of the most solid 04:47 steady things that exists literally on 04:49 the entire planet. um and the price 04:52 volatility which is reflected by the 04:54 actions of humans. So the reason 04:57 Bitcoin's price is volatile is because 04:58 people are volatile. People have 05:01 emotions and they have tempers and they 05:03 have moods and people are constantly 05:06 making decisions every single day about 05:08 how much Bitcoin they want to hold or 05:10 how much they want to buy or how much 05:12 they want to sell or how much they want 05:13 their company to buy or hold or sell. 05:15 And the actions of hundreds of millions 05:18 of people every day dictate the price of 05:20 Bitcoin at exactly this moment in time. 05:23 So that is what's volatile. What is 05:24 volatile is the humans not the 05:26 technology. And over time that 05:28 volatility Good afternoon. Over time 05:31 that volatility comes way down. And it 05:34 comes way down because as adoption goes 05:36 up the price goes up. And with that the 05:39 volatility goes down. Now the economic 05:41 upside in the future also goes down as 05:44 the volatility goes down. So let's say 05:46 25 years from now everybody in the world 05:48 uses Bitcoin for everything. It would 05:50 not be volatile at all. It would be less 05:53 volatile even than the US dollar. The 05:55 price or the value of a Bitcoin would go 05:57 up about 3% per year. Now why 3%? Why 06:00 would the value keep going up even after 06:03 everyone has adopted it worldwide? And 06:06 the answer for that is human 06:07 productivity growth. Humans get about 3% 06:10 better at making stuff every year. So 06:12 about every year there's about 3% more 06:15 products and services that exist in the 06:17 world. And with only 21 million Bitcoin, 06:20 the amount of products and services, 06:23 groceries, you know, games of golf, 06:27 whatever it is you do or spend money on, 06:29 the amount of that that can be purchased 06:30 with a specific amount of Bitcoin will 06:33 eventually just go up 3% per year 06:35 because humans get 3% better at making 06:38 things. And so the money will buy 3% 06:40 more, which is the opposite of the way 06:41 the US dollar works. The US dollar tends 06:44 to lose at least 3% of its value every 06:46 year, usually significantly more, uh, 06:49 because they're constantly making more 06:50 of it out of thin air and basically 06:52 giving it to themselves and hoping you 06:54 don't notice or hoping you don't mind. 06:56 Um, so Bitcoin doesn't work that way. 06:58 So, uh, but in the day when Bitcoin has 07:01 no volatility, I promise you people will 07:03 be complaining that, you know, maybe 07:05 it's a million dollars a coin. The 07:07 highest uh estimation anybody's giving 07:09 for the price of Bitcoin is Michael 07:11 Sailor who claims in 21 years uh every 07:14 bitcoin will be worth $42 million per 07:17 coin. Uh that seems high. I don't know. 07:19 Maybe it's a million, maybe it's 10 07:21 million. Nobody knows. But regardless, 07:23 once it is fully adopted, it won't be 07:26 volatile anymore. But that also means 07:28 the the upside will not be there 07:29 anymore. So all the people that are 07:31 complaining about volatility want the 07:33 upside, but they don't want the 07:36 volatility. But as soon as the 07:37 volatility goes away, so does the 07:39 upside. So now it happens slowly over 07:41 time. Uh Bitcoin is way less volatile 07:44 than it was a few years ago. But that 07:46 also means the upside of Bitcoin today 07:48 is less than it was a few years ago. 07:50 Back when I was buying Bitcoin in the 07:52 early days, it would regularly go 20 or 07:54 30% up or down in a day. In a day. Now 07:58 everybody now it goes, you know, up or 08:01 down, you know, 30% over the course of a 08:03 couple months and everybody freaks out. 08:05 uh that used to be a daily occurrence 08:07 back in the early days of Bitcoin and I 08:09 wasn't even in that early. I started 08:10 buying Bitcoin in late 2017 and early 08:13 2018, but even back then it could swing 08:16 easy 10% in a day and 20 or 30% over a 08:20 relatively short time frame. Uh and so 08:22 Bitcoin is much much much less volatile 08:24 now than it used to be. But again, the 08:26 trade-off is there's not quite the same 08:27 amount of upside today in Bitcoin that 08:30 there was back then. But the the uh you 08:32 know that trade-off is again you don't 08:34 have to deal with the gut-wrenching 08:36 volatility it had back then either. So 08:38 Bitcoin itself is not volatile only the 08:41 price is volatile and the price is 08:43 volatile because it represents the moods 08:46 the actions the uh the desires and wants 08:51 and demands of actual humans. And so 08:53 humans make the price of Bitcoin 08:55 volatile but that does not mean the 08:56 underlying technology is volatile. It 08:58 doesn't mean about anything about 08:60 Bitcoin itself is volatile. It just 09:02 means the price goes up and down because 09:03 humans are making it go up and down. 09:05 That will come down over time. So will 09:07 the upside, the economic upside and 09:09 eventually Bitcoin will be do adopted as 09:12 the money uh reserve currency of the 09:15 world and the day-to-day money of the 09:17 world as well. And then everyone will 09:19 complain that there's not enough upside. 09:21 But of course there won't be any 09:22 volatility because it will just be 09:24 money. But then at least it goes up 3% a 09:26 year instead of losing 4% to 9% per year 09:29 like the US dollar. So in the end we all 09:31 win. In the end the world is a much 09:33 better place. In the end, nobody makes 09:35 money out of thin air. Uh and between 09:38 now and then. Bitcoin is both a great 09:41 investment and a great money. Eventually 09:43 it will just be a great money, but 09:45 that'll take probably 25 years. I mean 09:47 that's like a multi-deade thing. We are 09:48 still very early in the adoption of 09:50 Bitcoin and it takes humans a long time 09:53 to adopt things because humans just 09:55 don't change their behavior patterns 09:57 easily and 95% of the world doesn't own 09:59 any Bitcoin and it will take a long time 10:02 for those people to come around and so 10:04 uh but the longer you wait the more of 10:06 the potential future economic upside is 10:09 behind us instead of in front of us 10:11 which is why I continue to think Bitcoin 10:13 is the best investment you could 10:15 possibly hold which is why it represents 10:17 100% of my liquid assets. Have a great 10:19 day everyone.