Bitcoin will catch up to gold, and in the meantime is holding up amazingly well!

00:01 Hey everyone. So, Bitcoin has been 00:03 holding up uh amazingly well through the 00:06 economic chaos of the last few weeks. 00:08 And uh in addition to that, uh it will 00:11 eventually catch up to gold. So, uh 00:13 right now, because of the economic chaos 00:16 related to the announcement of tariffs 00:17 and all of the crazy stuff uh related to 00:19 that, uh gold has taken off. Gold, the 00:22 precious metal, the yellow rock is has 00:25 uh been setting, you know, all-time high 00:28 after alltime high after all-time high. 00:30 and today was above $3,300 an ounce, 00:34 which is significantly higher than it's 00:35 ever been in human history by a long 00:38 shot. Um, so why is gold way up? Well, 00:41 uh, gold was already held by a lot of 00:43 central banks. Uh, essentially when 00:45 economic chaos happens, people run to 00:48 safety and the expectation was that 00:50 people would run to the safety of US 00:52 Treasury bonds. That is what normally 00:55 happens. And so um the Trump administ 00:58 administration, Scott Bessant, you know, 01:01 all of the powers that be, uh had a 01:03 strategy which was they were going to 01:05 slap a ton of tariffs on everybody that 01:08 was going to freak out the stock market. 01:10 As a result of that, uh there would be a 01:12 flight what's called a flight to safety. 01:14 A flight to safety is when everybody 01:16 runs away from risk and tries to put 01:18 their money in stuff that they perceive 01:20 to be uh the least risky. and um and as 01:23 a result of that uh they would buy US 01:25 government treasury bonds. But that is 01:27 not what happened. That strategy failed 01:29 because instead of running to US 01:31 government treasury bonds, people 01:33 instead ran to gold. Uh and to some 01:36 degree Bitcoin, although Bitcoin is 01:37 still um you know, the massive upswing 01:40 that will result in um you know, people 01:43 the flight to safety going to Bitcoin 01:45 has not yet happened. So if you're 01:46 looking for a good time to buy Bitcoin, 01:48 I would say now is a fantastic time to 01:50 buy Bitcoin. Um, so anyway, so uh the 01:53 reason the flight to safety went to gold 01:55 is gold is a pre-approved asset class by 01:58 everybody that was uh having a flight to 02:00 safety. So right now um there are zero 02:03 central banks that hold uh bitcoin on 02:05 their balance sheets and but virtually 02:08 all the central banks hold some amount 02:10 of gold on their balance sheet. So it's 02:11 very easy for a central bank to add gold 02:15 to the balance sheet. It's literally 02:16 just an asset allocation decision like 02:18 they make it, you know, a thousand times 02:20 a day on asset allocation decisions. It 02:22 requires no approval, no extra. You 02:24 don't have to jump through any hoops. 02:26 It's just as simple as them saying, 02:27 "Hey, let's buy some more gold." Like, 02:29 it's that simple. Let's buy some more 02:30 gold. Um, that is not the case for 02:32 Bitcoin. Uh, zero central banks own 02:34 Bitcoin um on their balance sheet, even 02:38 though the United States has a strategic 02:40 Bitcoin reserve. I believe that's part 02:41 of the Treasury, not the central bank. 02:43 Uh and the US government has not bought 02:45 any Bitcoin. Um same with El Salvador. 02:48 They don't have a central bank. So 02:49 there's no way for there there is no 02:51 central bank in El Salvador to be buying 02:53 Bitcoin. So as a result of that when the 02:55 entire market freaked out and panicked 02:57 and I've posted a couple episodes by 02:59 Jack Mers, uh Jack Mullers, the CEO, 03:01 founder and CEO of Strike, S R I ke some 03:05 of the best content out there explaining 03:07 what has happened over the last couple 03:09 weeks. So, if you want to get the 03:11 rundown from Jack Mers, uh just go back 03:13 through my Facebook uh posts and find 03:15 the podcast episodes from Jack Mers, uh 03:19 the one from earlier this week as well 03:20 as the one from about 10 days ago, which 03:22 was um Monday or Tuesday of last week. 03:25 He does a really good job of explaining 03:26 everything, including this week 03:28 especially, does a really good job of 03:30 explaining what all went down. Um so, 03:32 anyway, so short take is the uh 03:35 government tried to crash the stock 03:37 market to get people to buy Treasury 03:38 bonds. so that it would push the 03:40 interest rates down on Treasury bonds. 03:42 That did not work. Um, instead of buying 03:44 Treasury bonds, central banks instead 03:46 bought gold and China in retaliation for 03:50 the tariffs dumped uh some amount. Uh, I 03:53 saw one report that said it was $50 03:54 billion of Treasury bonds. So, the short 03:57 take is the interest rate started 03:58 climbing on the Treasury bonds instead 03:60 of going down, which was what was 04:01 intended. Uh, of course, the tariffs 04:03 were a stupid idea all along. Uh, 04:05 tariffs are just bad policy, period. 04:07 there's there's there's no good reason 04:09 to have a tariff. Um even though people, 04:12 you know, contort themselves in all 04:13 sorts of bizarre uh contortions to try 04:15 to say, "Hey, it's actually a good thing 04:17 and it's a negotiating strategy and all 04:18 this sort of stuff, tariffs just flat 04:20 out don't work." And we've seen again 04:22 here that they are not working. They are 04:24 not having the intended effect. Uh so uh 04:27 as a result of that, the flight was to 04:29 gold rather than treasury bonds. Now, 04:31 why does that uh affect Bitcoin or how 04:33 does that affect Bitcoin? It's actually 04:35 a big deal for Bitcoin because one 04:41 second because in the continuum of 04:45 assets, gold is much closer to Bitcoin 04:48 than US government treasury bonds. So if 04:50 everybody if the flight to safety 04:52 results in everybody going to US 04:53 government treasury bonds, there's no 04:55 reason to 04:56 subsequently believe that that flight 04:59 would then continue on to Bitcoin. Um, 05:02 but the the case with gold is much 05:04 stronger because gold, the reason you 05:06 would own gold in a situation like this 05:08 is identical to the reason you would own 05:10 Bitcoin, which is you're freaked out 05:11 about the, you know, the global economic 05:13 system. You don't want to own Treasury 05:15 bonds because you think the government's 05:16 going to print a ton of money, which is 05:18 going to drive up inflation, and nobody 05:20 wants to own a Treasury bond that pays 05:22 4.5% if the government's going to print 05:25 so much money that, you know, 05:26 inflation's 8% or 10% or 14%. So um but 05:30 on on the reverse side, any money in 05:33 gold is one step away from Bitcoin 05:35 because the investment thesis for gold 05:37 is identical to the investment thesis 05:39 for Bitcoin with the difference being 05:41 that Bitcoin is a much has much stronger 05:44 and better monetary properties as 05:46 compared to gold. So any money that is 05:48 in gold can easily end up one day in 05:51 Bitcoin. So the market um most of the 05:54 people like me would look at the total 05:55 market for bitcoin uh the sort of the 05:58 first stage the easy first stage being 06:00 the size of the market for gold. So the 06:02 total value of the market for gold right 06:04 now is something like $22 trillion. Uh 06:07 that's the value of all the gold that's 06:08 ever been dug out of the ground or 06:10 discovered in the entirety of human 06:12 history that you know humans have access 06:13 to is about $22 trillion. Uh the total 06:16 value of all the Bitcoin in the world is 06:18 something like 1.6 trillion. Uh I didn't 06:20 check the uh numbers. I checked the 06:22 numbers this morning, but I can't 06:23 remember exactly what they were. I think 06:24 it was 1.6 and 22. Anyway, the value of 06:27 all the gold in the world is 13 times 06:29 larger, 13 times larger. 13 times larger 06:32 than uh all of the Bitcoin in the world, 06:35 which means even to reach parody with 06:37 gold, Bitcoin can go up by a factor of 06:40 13x. Um, which is a lot. 13x is a, you 06:44 know, huge 1,300%. That is a huge gain. 06:48 um that's effectively I would consider 06:50 in the bag uh for Bitcoin before you 06:53 even start having a conversation about 06:55 how much better Bitcoin is than gold. So 06:58 any flight to safety that involves 07:00 assets going into gold is eventually 07:03 going to end up in a situation where 07:04 those assets go into Bitcoin instead. Uh 07:08 it's just, you know, obviously going to 07:09 take a, you know, a series of years or, 07:12 you know, potentially decades long or 07:13 longer. Um because hold on one second 07:16 here. There's weird weird traffic 07:18 patterns. Um anyway, um doesn't matter. 07:21 My Tesla is driving itself, so it's 07:24 better at recognizing weird traffic 07:26 patterns than I am. Uh I haven't touched 07:28 the steering wheel or the pedals since I 07:30 started recording this video. Actually, 07:32 I haven't touched the steering or the 07:33 pedal steering wheel or the pedals or 07:35 anything in the car uh since I was in my 07:37 driveway. I literally pushed a button in 07:40 my garage and I have not touched 07:42 anything since I pushed the button in my 07:44 garage. and you know I'm driving anyway. 07:47 Um so any money in in uh in gold is one 07:50 step away from Bitcoin and gold has been 07:52 on a wild tear and eventually Bitcoin 07:54 will catch up to that. Now Bitcoin has 07:56 been holding up shockingly well with all 07:58 this economic chaos. Normally people run 08:01 away from anything that's new. Uh right 08:04 now people are running away from the 08:05 stock market, away from the NASDAQ, away 08:07 from the magnificent seven stocks. just 08:09 they're running away from everything 08:11 including a bunch of crypto like 08:12 Ethereum and stuff like that that uh you 08:15 know cryptocurrencies or crypto projects 08:17 or smart contract platforms. Uh anything 08:20 that is not Bitcoin in crypto people 08:22 have generally been running away from. 08:24 But Bitcoin is holding up uh you know 08:26 surprisingly well at about $84,000 per 08:28 coin. Uh and that's because every time 08:30 it's dipped there's been someone there 08:32 to buy it. Um, a week or two ago, that 08:35 was me when I took my total Bitcoin 08:37 exposure from 99% up to an even 100% of 08:41 all of the liquid assets that I own or 08:44 control are now in Bitcoin. And uh, so 08:48 there's people like me that every time 08:49 it dips far enough, it's like, nope, you 08:51 it's not going to dip any farther 08:52 without me buying more. Uh, Micro 08:54 Strategy's been buying more uh more 08:56 Bitcoin. 08:58 Um, I keep up on on up with it on 09:01 Twitter a ton and there's companies 09:04 there's I mean governments and you know 09:06 tend to be small governments. I mean 09:08 there is a lot of Bitcoin of uh buying 09:11 happening right now. Um which is why 09:14 every time the price tries to dip it 09:15 eventually gets bought up and pushed 09:17 back up. So eventually all of that 09:19 buying pressure will exhaust the people 09:21 who are willing to sell their Bitcoin at 09:24 84,000 a coin and Bitcoin will go on a 09:27 wild tear um as it always does 09:30 eventually if you wait long enough. Uh a 09:32 big uh determinant of that is uh the how 09:36 quickly gold goes up. So historically 09:38 there's a lot of people posting on uh 09:41 social media on X right now showing that 09:43 once gold goes up typically there's a a 09:46 time lag of I forget what it is 108 days 09:49 or 12 weeks or some some amount uh that 09:53 uh Bitcoin tends to go up after gold. So 09:55 gold tends to go up first because it's 09:57 pre-approved on a lot more in a lot more 09:60 places than Bitcoin as in central banks 10:02 can buy um they can buy gold without 10:05 thinking twice. Bitcoin is obviously not 10:07 approved uh by central banks for 10:09 purchasing on the fly. When it is one 10:11 day, you'll really see what the price of 10:13 Bitcoin is capable of. But right now, 10:16 you know, every time everybody freaks 10:18 out, the central banks buy more gold. Uh 10:20 and that's what they've been doing 10:21 handover fist. I mean, it's just been a 10:23 a massive, you know, gold buying spree 10:26 over the last, you know, couple weeks 10:28 especially, but really the last nine 10:30 months, there's just been a ton of gold 10:32 acquisition. So, uh, anyway, so for all 10:34 those reasons, I think it's only a 10:36 matter of time till Bitcoin goes way, 10:38 way, way up. And, uh, what matters is 10:40 how much Bitcoin you own before that 10:43 happens. Um, so now is a great time to 10:45 buy. You can buy Bitcoin discounted at 10:47 84,000 a coin in a world where everybody 10:50 is panic buying gold um, and running 10:53 away from risky assets. And Bitcoin is 10:55 still holding up surprisingly well, but 10:57 is still available at a discount. So one 10:59 day uh a huge amount of that money that 11:01 is in gold will start to flow into 11:03 Bitcoin instead and then instead of just 11:06 holding up very nicely, you will see 11:08 what Bitcoin is truly capable of, which 11:10 is going to be uh absolutely epic. And 11:12 it's just a matter of time. So um 11:14 anyway, be patient, stack as much 11:16 Bitcoin as you possibly can, hold on to 11:18 it for as long as conceivably possible, 11:20 and it will reward you handsomely as it 11:23 always does. Have a great night, 11:24 everyone. Thanks.