Can Bitcoin Really Beat Inflation?

00:01 This is how you beat inflation. You buy 00:03 Bitcoin, you wait long enough for it to 00:05 be higher than the price you pay for it, 00:07 and then you use it to buy everything 00:09 you need. All right, but I want to dig 00:11 into the details of that because that 00:12 sounds too simple and people don't 00:13 really, you know, don't really get that. 00:15 Okay, so yesterday I was like, okay, 00:18 I've been living for free for three 00:19 years now. I've spent hundreds of 00:21 thousands of dollars for free, basically 00:24 free money, because I'm spending the 00:26 appreciation of Bitcoin. And the 00:29 original Bitcoin that I started with for 00:31 all of my living expenses back in late 00:33 2022 is worth more than twice as much as 00:36 what it started in US dollars after 00:39 spending two literally hundreds of 00:41 thousands of dollars over the last three 00:42 years. Um, and the value is still more 00:45 than twice what the the balance started 00:46 at. Okay. So, uh, I wanted to sort of 00:49 find a way to really sort of condense 00:52 what is going on with the Bitcoin price 00:54 and why I am able to live for free. So, 00:57 the first thing I did is I loaded the 00:59 entire price history of Bitcoin into 01:02 chat GPT. Everything, the highs, the 01:04 lows, the starting price every day, the 01:06 ending price every day, all of it. I 01:07 loaded it all into chat GPT. And I told 01:09 it to graph for me how many days the 01:13 Bitcoin price had been within 10% of 01:16 each $1,000 mark. So for $1,000, that 01:19 means above or below $100. For $10,000, 01:21 that means above or below $1,000. For 01:23 $100,000, that means above and below 01:25 $10,000. But to do that for every price, 01:27 1 2 3 4 5,000 all the way to $125,000 01:32 because $124,000's the highest it's ever 01:34 been. And immediately when you graph 01:35 that, first of all, uh, one second. 01:41 I wanted to really focus on the last 01:42 three years when I've been living for 01:43 free. And immediately what pops out at 01:46 you is the graph that I posted multiple 01:47 times to Facebook over the last couple 01:49 days, which is that there's basically 01:51 three there's sort of three price points 01:54 that Bitcoin has spent more time within 01:58 10% of than any other time. That price 02:01 point in 2023 was $28,000. That price 02:05 point in 2024 was $64,000 and that price 02:09 point so far in 2025 has been $17,000. 02:13 Now, the reason it's helpful to think 02:15 about it this way is because it's easy 02:17 to get lost in the day-to-day up and 02:19 down price action. People look at the 02:20 price, they're like, "But it's all over 02:21 the place and it's up and it's down 02:23 without realizing that no, if you zoom 02:25 out, it tends to spend quite a bit of 02:27 time at certain levels and then other 02:29 levels and then other levels." In my 02:32 opinion, we'll probably never see the 02:33 other price levels ever again. Um, we 02:36 might never see 107,000 again. The 02:38 question is, are you going to buy 02:40 Bitcoin now so that when it comes up, 02:43 uh, you know, when it the price jumps to 02:45 $150,000 and then spend, you know, seven 02:48 or eight months chilling up at that 02:50 level? Uh the question is are you going 02:52 to have Bitcoin that you bought now to 02:55 spend then or are you going to wait and 02:57 buy it at 150,000 and then have to wait 02:59 seven or eight months before it goes to 03:01 a new higher level. And again my goal is 03:03 always to say look buy it as soon as you 03:06 can so that more of the upside in the 03:08 future you benefit from. So how do you 03:10 win in the game of inflation? Well the 03:12 government prints on average 7% more US 03:15 dollars every year. That means not only 03:18 are you getting three, four, five, six, 03:19 seven, eight, nine% inflation, but 03:21 you're not benefiting from the fact that 03:23 humans get better at making stuff 03:25 literally every single passing day. So, 03:27 in a world where the government stopped 03:29 printing new money and giving it to the 03:31 cronies and the lobbyists and the Wall 03:33 Street bankers and everybody who always 03:35 gets the money first before the 03:37 inflation hits, they get to buy stuff 03:39 with the money before the inflation 03:41 hits. You get to buy the stuff with the 03:43 money after it's trickled through the 03:45 economy after the inflation hits. So you 03:47 get screwed. They get the benefit. You 03:49 get screwed. And this has been going on 03:50 for hundreds of year. Well,und however 03:53 many years since 1913 when the Federal 03:55 Reserve was invented. This has been 03:56 going on is they print new money. The 03:58 cronies get it. They buy up a bunch of 04:00 stuff before the prices go up. Then the 04:03 prices go up because they bought up a 04:04 bunch of stuff and then now you're stuck 04:06 with higher prices. And that's the 04:08 system. Okay. So uh the way to beat 04:11 inflation is to hold money that is g 04:16 gaining value faster than the dollar is 04:19 losing value. That means you need to 04:21 find an asset that grows consistently 04:23 more than between 4% and 9% per year. 04:26 That way the prices might go up 5% 4% 7% 04:30 9%. You don't care because the asset 04:32 you're using to pay for stuff is going 04:34 up faster than that. Therefore you're 04:36 actually buying things at a discount 04:38 every year. every passing year you're 04:40 buying things at a steeper and steeper 04:41 discount whereas everybody else in the 04:43 world is buying things at a higher and 04:45 higher price and getting screwed. So 04:47 that's how you beat inflation. So if you 04:50 accumulated Bitcoin in in uh in 2023, 04:54 there is a greater probability that you 04:56 accumulated that Bitcoin around $28,000 04:59 than any other price. Now the early part 05:01 of 2023 was actually cheaper than that. 05:03 So if you were buying Bitcoin in early 05:05 2023, good for you. was actually cheaper 05:07 than 28,000 but for seven solid months 05:10 that was it was within 10% of $28,000. 05:15 Again, the reason I'm not using 05:16 specifics is I don't want to build a 05:18 strategy that says you have to buy 05:19 Bitcoin at this exact time in 2023. I'm 05:21 saying no, this strategy works if you 05:23 bought any Bitcoin at any time in 2023, 05:27 you know, for 7 months and for a couple 05:30 of additional month months if you bought 05:31 it cheaper than that. That's like eight 05:34 or nine or 10 months 2023 that you could 05:36 have bought Bitcoin any time in there 05:38 and you're going to have a cost basis 05:40 within 10% of the $28,000 which means 05:43 you can spend that Bitcoin with at a 05:46 radically appreciated price which right 05:48 now is $118,000. So you can buy Bitcoin 05:51 you bought at 28 and you're buying stuff 05:52 for you know 118,000 and everything's 05:55 like 60% off or whatever that is. It's 05:58 like actually it's a lot bigger than 05:59 that. It's like 100, I don't know, 74% 06:01 off, 78% off. It's radically higher. So, 06:04 but again, let's assume you missed 2023 06:06 and you didn't start buying Bitcoin till 06:08 2024. Well, the most likely range you 06:11 bought Bitcoin in 2024 was within 10% 06:16 $6,400. That means within 6,400 of 06:19 64,000, which means to what is that 06:23 770,400 06:25 and as low as 06:29 57,600 06:32 if I'm doing the right math. Anyway, 06:34 6,400 above or below 64,000 within 10%. 06:38 Again, most people I know that is when 06:40 they bought it. Now, if you bought in 06:42 early 2024, you bought a lot cheaper 06:44 than that. Good for you. You're living 06:45 at an even bigger discount. But most, 06:47 but you had eight months, literally 06:49 eight months, you had eight solid months 06:51 where Bitcoin at some point during the 06:53 day traded within 10% of $64,000. And if 06:56 you were accumulating back then, then 06:58 you can buy everything at a, you know, 07:01 more than a 50% discount. 52, 54, 58% 07:05 discount, whatever that discount is from 07:07 118,000 down to 64,000. So you're living 07:10 life at a serious radical discount. And 07:14 the same will be true in the in the 07:15 future. Now, Bitcoin always doesn't 07:17 always go up in a straight line, right? 07:19 It goes up and down on its way up, as 07:22 I've said numerous times. So what do you 07:24 do if Bitcoin enters a bare market 07:26 meaning it starts going down instead of 07:29 the answer is you just hold on to it 07:31 instead of spending it if it's if the 07:33 price is lower than the price you paid 07:34 for it you just hold on to it. So you 07:36 need to your finances need to be able to 07:38 hold the ups and downs. But the reason 07:40 this works with Bitcoin rather than any 07:42 other asset is there's too great a risk 07:44 with any other asset that it will go to 07:46 zero or that it will you know the 07:48 company will go bankrupt or whatever. 07:50 Now some people would say yeah but you 07:51 can do this strategy with the S&P 500 07:54 which is like the broad index of the 07:56 stock market but the stock market itself 07:58 as a whole does not go up more than 7 8 08:01 9% every year and it goes through if it 08:04 does go through the stock market goes 08:06 through uh a correction of its own a 08:08 bare market a down market typically for 08:11 the stock market that lasts a long time. 08:13 So, you've got to be ready to ride out a 08:15 multi-year uh or, you know, 08:18 significantly. If you were buying stocks 08:19 at the peak in 2027, you were waiting a 08:22 long time until those stocks were up and 08:24 you can actually convert them, you know, 08:26 to US dollars and spend. Um, so Bitcoin, 08:30 one second here, Bitcoin doesn't have 08:32 that problem because when it goes down, 08:33 it recovers very quickly and so you can 08:35 just wait it out. and the price 08:37 appreciation on the upside is radically 08:39 higher than the price that is needed to 08:42 combat inflation. So again, you just 08:45 don't have the same problem you do with 08:47 uh stocks uh that you as with Bitcoin 08:50 because Bitcoin is just uh much more 08:52 consistent in its going up over time and 08:54 it recovers much quicker and the side of 08:57 Bitcoin is so much radically higher. So 08:59 the only way you can try to get the kind 09:01 of uptight you can get with Bitcoin, the 09:03 only way to get that some other way is 09:05 by betting on individual stocks, but 09:07 that is extremely risky because if 09:09 you're buying Tesla or Amazon or 09:11 Facebook or Google or um what is it uh 09:16 Nvidia or whatever the seventh one that 09:19 the Magnificent Seven, which is the 09:21 seven highest performing stocks in the 09:24 last decade or two, if you're trying to 09:26 get upside by only buying one of those 09:29 stocks, you risk it falling out of favor 09:32 and your whole strategy blows up and 09:34 there's a high risk of that. If you're 09:35 buying only the Magnificent Seven 09:37 stocks, all of those stocks are at 09:39 record high valuations, which means the 09:41 price you pay for every dollar of 09:44 earnings that the company makes, for 09:45 every dollar of profit, the price you 09:47 pay per dollar of earnings is 09:49 stratospherically high right now. 09:51 Meaning there is a very good chance that 09:53 that will go through an adjustment and 09:54 come way down, resulting in once again 09:56 your strategy blowing up. So this 09:59 strategy to beat inflation, you need an 10:01 asset that almost certainly will go up 10:03 in the long term and that is still early 10:05 in the adoption cycle so that there's a 10:07 huge amount of upside left for price 10:10 appreciation. That asset is Bitcoin. For 10:12 all the reasons I've covered in numerous 10:14 videos, bit Bitcoin is not subject to 10:17 being outco competed or made obsolete 10:19 the same way a technology is, the same 10:22 way a stock is or a company is. Bitcoin 10:25 does not have that same problem of going 10:28 obsolete or being made obsolete or being 10:31 uh you know uh uh you know something new 10:34 upgrading and disruptive innovation. 10:36 Bitcoin just doesn't have that problem 10:37 the way virtually every other stock or 10:40 bond or real estate has. Uh and it's 10:43 early in the adoption cycle. So roughly 10:45 95% of the world owns zero Bitcoin. That 10:48 means if you're buying Bitcoin now, 10:50 you're benefiting from the adoption of 10:52 Bitcoin by the other 95% of the world. 10:55 Again, there's just no other asset like 10:57 that. Um, you know, the vast majority of 10:59 people that are ever going to own stock 11:01 in the stock market own some stock 11:03 already. And the vast majority of people 11:04 who are going to own a lot of a certain 11:06 kind of stock or a certain asset of 11:07 stock, most of those already do. You're 11:09 not early to Tesla. You're not early to 11:12 Apple. You're not early to Amazon. 11:14 You're not early to any of those. By the 11:15 time a company goes public on the stock 11:17 market, often a lot of the early gains 11:19 are past it and you know, you're 11:21 competing with Wall Street. Uh, Bitcoin 11:23 is the one way you can frontr run Wall 11:24 Street because it's an asset that got 11:27 adopted by individuals before Wall 11:29 Street and the vast majority of Wall 11:30 Street has still not adopted Bitcoin. 11:32 The vast majority of nation states have 11:34 not adopted Bitcoin. The vast majority 11:36 of Bitcoin adoption in the world is yet 11:38 to come. Which means Bitcoin should over 11:42 time it will go up and down on its way 11:44 up. But if you are patient, you have the 11:46 ability to buy Bitcoin today at $118,000 11:49 and spend it in the future at 150 or 220 11:52 or if you wait long enough multiple 11:54 years 350,000 something like that. And 11:58 essentially instead of the entire rest 11:60 of the world being gouged by inflation, 12:03 government money printing, the 12:04 government printing like they the 12:06 Federal Reserve decided yesterday, 12:07 they're going to print even more money. 12:09 They lowered interest rates, which means 12:10 the way they lower interest rates is by 12:12 printing even more money, which causes 12:14 inflation. And inflation is already 12:16 above 3% by government measures and 12:19 somewhere between, you know, five and 9% 12:22 by more realistic legit measures of 12:25 what's happening in the economy. So, you 12:27 got to beat that. Otherwise, you're 12:28 moving backwards. 12:30 And almost nobody's getting a 9% pay 12:32 raise every year at work, which means 12:35 you got to put your money in an asset 12:36 that's beating inflation consistently. 12:38 And Bitcoin is the most reliable solid 12:41 way to do that. So, as always, this is 12:42 not financial advice, not legal advice, 12:44 not accounting advice, not investment 12:46 advice, not any kind of advice. This is 12:49 just me living for free for the last 12:51 three years, spending thousands of hours 12:54 studying Bitcoin, trying to find a 12:56 solution for inflation myself and trying 12:58 to find a solution that would give me 13:00 financial freedom and independence. And 13:02 it's Bitcoin and is still very early in 13:04 the adoption cycle of Bitcoin. And if 13:06 you feel like you're late to Bitcoin, 13:08 literally everyone who's ever bought 13:09 Bitcoin has felt like they were late to 13:11 Bitcoin. Like everybody has felt like 13:13 they're late to Bitcoin. You are not 13:14 late to Bitcoin. 95% of the world owns 13:17 zero Bitcoin. And the vast majority of 13:19 the other 5% who own some Bitcoin, it's 13:22 50 bucks, 200 bucks. It's not enough to 13:24 matter. There's very, very, very, very 13:27 few people in the world like me who have 13:29 literally 100% of my liquid assets in 13:31 Bitcoin. 100%. And I worked my way up 13:34 from 0% in 2017 to 100% earlier this 13:38 year in April of this year when I 13:40 finally decided to convert the last 1% 13:43 of my stock portfolio into Bitcoin. I 13:45 had already converted all of my uh 13:47 savings, all of my investments, all of 13:49 my 401k, all of my IRA, everything's in 13:53 Bitcoin. Uh for liquid assets that I 13:55 have, uh it's all Bitcoin. And it's all 13:58 Bitcoin because I've spent thousands of 13:60 hours studying Bitcoin. And my 14:01 conviction level is it's the only kind 14:03 of money in the world that nobody can 14:05 make more of. It's the only kind of 14:07 money that nobody can manipulate. There 14:10 will only ever be 21 million Bitcoin 14:12 ever in the world ever. There will only 14:14 ever be 21 million Bitcoin. And however 14:17 many of those 21 million Bitcoin or 14:20 fractions of one you can get right now 14:23 lets you spend that Bitcoin for the rest 14:25 of your life or whenever you want to 14:26 spend it. You can wait and it goes up 14:28 50% and you spend it then and 14:30 everything's 33% off. Um, or you can 14:33 wait much longer and buy everything when 14:35 it's 50% off. Or you can save Bitcoin 14:37 right now. You can buy a little piece of 14:40 a Bitcoin. You can buy a dollar of 14:41 Bitcoin and it'll probably be worth $20 14:44 or $100 when you retire, you know, which 14:46 is a massive upside, which is why you 14:48 need to buy more than$1 because even if 14:50 it goes up 20, 30, 50x, uh, you have to 14:53 have enough to matter. Uh, by the math, 14:56 if you want to double your liquid net 14:58 worth in 10 years, assuming Bitcoin goes 15:01 up by a factor of 10, if you want to 15:02 double your entire liquid net worth, 15:05 meaning all or let's just call it net 15:06 worth, your assets, you need 11% of your 15:09 net worth in Bitcoin. If you want to 15:11 triple all of your net worth, assuming 15:13 everything stays the same and Bitcoin 15:15 goes up by a factor of 10, if you want 15:17 to triple it, you need 22% of your 15:19 assets in Bitcoin. If you want to 15:20 quadruple it, you need 33% of your 15:23 assets in Bitcoin. Now, if you want to 15:25 your net worth to go up by a factor of 15:27 10 when Bitcoin goes up by a factor of 15:30 10, well then you got to be where I am, 15:31 which is 100% Bitcoin. Because if you're 15:33 100% Bitcoin and it goes up, you know, 15:35 a,000%, well, then you're up a,000%, 15:38 which is 10x. So, I continue to believe 15:41 that now is a great time to buy Bitcoin. 15:43 Um, I've done the research. Could I be 15:45 wrong? Yes, everybody can be wrong, but 15:47 I really don't think I am. and talk 15:49 about money where your mouth is. I got 15:50 100% of Bitcoin. I live on Bitcoin. 15:52 Everything I buy, I buy with a Coinbase 15:54 debit card, which converts my Bitcoin 15:56 into the local currency. So whether 15:58 that's Honduran and Limpira or euros in 16:01 Europe or Japanese yen, wherever I 16:03 happen to be, when I use that Coinbase 16:06 debit card, it converts Bitcoin to the 16:08 local currency and I can buy anything I 16:09 want at whatever the current exchange 16:11 rate is for Bitcoin in the world. And 16:13 Bitcoin has a, you know, a floating 16:15 exchange rate in every single currency 16:16 around the world. It's completely 16:18 liquid, meaning you can buy an unlimited 16:20 amount of stuff and you're not going to 16:22 move the price of Bitcoin. It's just 16:23 amazing. It's an amazing technology. You 16:25 can store it for safety out of the hands 16:27 of, you know, hackers and scammers in 16:29 Bicki, Bit Ty, which I'm constantly 16:32 posting about. Like, all of these things 16:34 are at your fingertips. It's amazing, 16:36 amazing, amazing technology. And, uh, if 16:39 I were you, I'd buy as much as I can. I 16:41 mean, that's what I've already done. 16:42 That's what I would do. That's what I 16:43 have done. It's working great for me. 16:46 And uh I think it will continue to work 16:47 great for a very long time in the 16:48 future. So here to serve. Send me 16:51 questions. Happy to answer anything. And 16:53 have a great day everyone.