QUESTION: “Omg, 111k! Will you ever have a number?”…

00:00 to hear from just sent me a message and 00:02 they said 00:03 OMG 1111k as in $111,000 per bitcoin and 00:08 then they asked a question a great 00:10 question which is will you ever have a 00:12 number question mark well what do you 00:14 think they mean by that well what I 00:15 assume they meant is will you ever have 00:17 a number at which you will sell Bitcoin 00:20 my response was no and of course I'll 00:23 spend or I'll sell Bitcoin to buy things 00:25 that improve my the the life of my 00:27 family or myself um for example I talked 00:30 for quite a while about how I wanted a 00:32 Tesla and eventually the price of 00:34 Bitcoin got high enough, my confidence 00:36 in Bitcoin got high enough that I took 00:39 out a Trustmark car loan and so I didn't 00:42 have to buy Bitcoin or sell Bitcoin and 00:44 I bought a 2026 Tesla Model Y and it's 00:47 super cool and I love it. It drives me 00:49 everywhere without me having to touch 00:50 the steering wheel or the pedals. Like I 00:53 literally just sit there and then I 00:54 program the GPS and I hit drive me there 00:57 and then it like drives me there without 00:58 me having to touch anything which is 00:60 absolutely amazing. So yeah, I could 01:02 have sold Bitcoin for that but Trustmark 01:04 was willing to give me a 6% auto loan 01:07 and since I believe Bitcoin is going to 01:08 go up more than 6% a year, a lot more 01:11 than 6% a year. I took Trust Trust Mark 01:13 up on that offer and I took out an auto 01:16 loan and I bought a Tesla. But a lot of 01:18 things you can't do that with. For 01:19 example, my house needs a whole house 01:21 generator because Energy cannot seem to 01:24 keep my power on to save their lives. 01:26 Um, but that cost $20,000, which is 01:29 right now at $100,000 per Bitcoin was 01:32 1/5 of a Bitcoin. At $110,000 is 01:35 somewhere between 1/5 and 16th of a 01:37 Bitcoin. And I don't want to spend more 01:39 than one sixth of a Bitcoin on a whole 01:41 house generator. So $20,000 once the 01:44 price of Bitcoin gets to 01:45 $120,000, that'll be one sixth. I'm 01:48 willing to spend 16th of a Bitcoin for a 01:51 whole house generator so I don't sit in 01:53 the dark. Uh now my security systems are 01:55 all set up on battery backup so they're 01:57 not affected but my air conditioner is. 01:60 And when the power goes out I'm uh dark 02:02 in the dark. I'm hot and I can't take a 02:05 hot shower because my uh water heaters 02:09 are electric lit. Even though they're 02:11 gas powered, they're electric lit so 02:12 they won't light. Um, anyway, so it'd be 02:16 nice to have all of those things and all 02:17 of the comforts of life when my power is 02:19 constantly going out. Uh, so I will sell 02:21 Bitcoin for stuff like that because I 02:22 can't finance a generator, at least not 02:24 elegantly like you can a house or a car 02:26 or something like that. Um, but there's 02:28 no price that I'm planning to sell 02:30 Bitcoin. And the reason is what would I 02:32 sell it for? See, anytime someone asks 02:35 the question, what's your number? They 02:37 assume you're going to sell back into US 02:39 dollars. But why would I sell back into 02:41 US dollars? Why would I move from an 02:44 asset that nobody in the world can make 02:46 more of to an asset that a handful of 02:49 people can make more of anytime they 02:50 want? So the goal is always to go to a 02:53 more scarce asset rather than a less 02:55 scar scarce asset. Increasingly the US 02:58 dollar is not a scarce asset. And 03:01 because it's not a scarce asset, then I 03:03 absolutely do not want to trade a scarce 03:06 asset like Bitcoin for something that 03:08 the government just prints out of thin 03:09 air anytime they want, like the US 03:11 dollar. So, I'm willing to trade Bitcoin 03:15 for a whole house generator. I'm willing 03:17 to trade Bitcoin over the course of 5 03:20 years for a 2026 Tesla Model Y, which I 03:24 already did because I have to pay Trust 03:25 Mark back at 6% interest for the price 03:27 of that car over the course of 5 years. 03:29 So, I'm willing to plan on liquidating a 03:32 little bit of Bitcoin every month to 03:34 make that car payment. And I'm willing 03:36 to do other things. I'm willing to spend 03:38 Bitcoin so my family can travel. We 03:40 travel a lot um internationally and 03:43 domestically. And that is a worthwhile 03:46 expenditure of Bitcoin in my opinion. 03:48 Now, I also have get a paycheck. So, you 03:50 know, a lot of those expenses are paid 03:52 straight up with a paycheck. But 03:54 whatever amount is not covered by a 03:56 paycheck comes out of Bitcoin because 03:58 that's the only source of capital I 03:60 have. Uh and then of course every time a 04:02 paycheck hits I buy more Bitcoin. Every 04:04 two weeks like clockwork I buy more 04:06 Bitcoin. But that doesn't mean things 04:08 don't come along like a whole house 04:10 generator that is not covered by my 04:12 paycheck and I got to you know have 04:14 source funds somewhere. So that comes 04:16 from long-term savings called Bitcoin. 04:19 Uh so anyway, so anytime you're thinking 04:21 of selling Bitcoin, ask yourself, sell 04:23 it for what? You could sell it and buy 04:26 real estate, but a real estate has 04:27 property taxes, maintenance fees. Uh I 04:31 mean, real estate is really expensive 04:32 right now. Stocks are really expensive, 04:34 bonds are really 04:35 expensive right now. So I don't think 04:38 any asset is worth, you know, there's no 04:40 asset that I'm willing to worth trading 04:43 for Bitcoin because every other asset is 04:46 an asset that someone can make more of 04:48 or that's not, you know, that's that's 04:50 whose price is significantly inflated 04:53 right now. So for stocks, every company 04:55 can issue more of their own stock. So 04:57 their stock is only as uh as scarce as 05:01 their management team decides to make 05:02 it. Uh same for bonds. every c country 05:05 or company can just issue more bonds 05:08 anytime they want. Um and the interest 05:11 rate just determines what the market 05:12 appetite is for that. Um for real 05:14 estate, people can constantly build more 05:16 real estate. They just can. Even uh 05:19 waterfront property, people are 05:21 constantly coming up with creative ways 05:23 to create more artificial land and 05:26 create more waterfront property. So 05:28 there's nothing really scarce in the 05:30 world other than Bitcoin. And from an 05:33 absolute basis, gold is relatively 05:35 scarce. The problem is there's a ton. I 05:37 mean, there's just an insane amount of 05:39 gold under the ground and in the oceans 05:42 and on asteroids. It's just really hard 05:44 to get to it. But at some point, humans 05:46 may find ways to get to asteroids and 05:48 mine gold on asteroids or find a way to 05:51 get the gold out of the ocean. And 05:53 there's tons of it in the ocean in trace 05:56 amounts. If somebody found a way to 05:57 filter it out of ocean water uh from the 05:60 oceans, there's a ton of gold there. Uh, 06:02 I've been told, I have not fact checked 06:04 that, but I've been told. Um, and same 06:06 with underground. There's just a ton of 06:08 gold underground that for the right 06:09 price, you can go dig it up. Um, so 06:12 Bitcoin is the only truly scarce thing 06:14 in the world that is decentralized. It's 06:16 not controlled by anyone. Nobody can 06:18 make more of it. There's more than 06:20 100,000 people in the world with a 06:22 complete and total veto power over 06:24 Bitcoin. And I am one of those people 06:26 because I run a Bitcoin node, which only 06:28 costs you 500 bucks. is actually $430. 06:30 If you want to run a Bitcoin node, it's 06:32 called 06:33 Umbrell website umbrell.com. That's um 06:38 mbrl.com. You can buy one of those 06:40 things, plug it into your home Wi-Fi, 06:42 download the Bitcoin node app on it, and 06:45 you too will have a veto over anyone 06:47 changing the Bitcoin network. Because if 06:50 they change it and you don't like it, 06:52 all you have to do is not upgrade to 06:53 whatever change they make. And it will 06:56 force the Bitcoin network. It'll force 06:57 people that made the change you don't 06:60 like to the core rules. It'll force them 07:02 off the network. And so more than 07:04 100,000 people have that veto power, 07:07 including me. And I run two nodes. And a 07:09 lot of people I know run nodes. So, uh, 07:12 Bitcoin is the only truly scarce, truly 07:14 decentralized thing that you can be 07:15 absolutely certain that no one will make 07:17 more of. And so it just doesn't make 07:20 sense to trade something that no one can 07:23 make more of for something that people 07:25 can make more of. Now one day when the 07:28 entire world has adopted Bitcoin as its 07:30 currency and Bitcoin is the only money 07:32 in the world, then yes, it will still go 07:34 up in value about 3% per year because 07:36 humans get 3% better at making stuff 07:38 every year. So instead of inflating away 07:41 over time, your purchasing power will 07:43 always go up over time. But if you want 07:45 to get more than 3% per year in Bitcoin, 07:48 we're talking like 25 years into the 07:49 future between now and then, the upside 07:51 I think is radically higher than that. 07:53 But even when it is fully monetized and 07:55 everyone in the world is using Bitcoin, 07:57 the price of bit the value, sorry, the 07:59 purchasing power I should say, of 08:00 Bitcoin will still go up 3% per year 08:03 because that is human productivity 08:04 growth. And as humans gets better at 08:07 making stuff, the finite 21 million 08:09 Bitcoin that will ever exist gets more 08:12 and more purchasing power because 08:13 there's more stuff you can buy with the 08:15 Bitcoin, but there's not more of the 08:17 Bitcoin. So, at that point, let's call 08:20 it 25 years in the future, yes, you'll 08:22 need to invest in stocks and bonds and 08:24 commodities and real estate if you want 08:26 to get a return higher than 3%. Uh, but 08:28 right now, you don't have to. If you 08:30 want a return that is better and higher 08:33 in my opinion than stocks, bonds, real 08:35 estates, commodities, and anything else 08:37 you could possibly invest in, in my 08:39 opinion, that return is available right 08:41 now in the form of Bitcoin, available to 08:44 everyone worldwide, tradable 24/7 in 08:47 every currency on the planet, and able 08:49 to be purchased. You know, you can buy 08:51 anything in the world. That'll take a 08:53 Visa card with a Coinbase debit card, 08:55 which which you can set to spend 08:56 Bitcoin. Um or you can uh a lot of 09:00 people will sell you stuff just for 09:02 straight up Bitcoin without even going 09:03 through Visa or some other payment 09:05 provider. So anyway, do I have a number 09:07 at which I would sell Bitcoin? No, I do 09:10 not have a number because there is no 09:11 asset. The problem is a number indicates 09:14 that there's an asset that I'm willing 09:16 to trade for. And a number when people 09:19 say a number, they presumably mean the 09:21 US dollar. Um the problem is I'm not 09:23 willing to trade Bitcoin for US dollars. 09:26 that's not a trade I'm willing to make 09:27 at any price. And even if you said, 09:29 "Yeah, but what about at a million 09:30 dollars?" It's like, well, all that 09:32 tells me is that the government has 09:34 completely inflated the value of the US, 09:37 you know, or they've inflated the money 09:40 supply, thereby making the value of 09:41 Bitcoin go way up. And if the price of 09:44 Bitcoin goes to a million dollar, 09:45 there's no reason it doesn't go to $10 09:46 million. At that point, the government 09:48 is so irresponsible. Why would I trade 09:50 it for a failing currency? Why would I 09:52 trade Bitcoin for a failing currency? 09:55 So, no, I don't have a number. I do not 09:58 intend to trade Bitcoin for US dollars. 10:01 There is no number at which I'm planning 10:03 to convert Bitcoin into US dollars. 10:05 Although along the way, as my purchasing 10:07 power goes up with Bitcoin, I will do 10:09 things that improve the life of me and 10:11 my family. But that is not trading 10:13 Bitcoin for any specific number in US 10:17 dollars. That is trading Bitcoin for 10:19 something that improves my life and the 10:21 life of my family in some way. uh that's 10:23 worth the price of worth more to me than 10:26 the Bitcoin I would hold that would have 10:29 to be swapped for that. So uh I don't 10:31 have a number and I'm in it for the long 10:33 haul because Bitcoin is the best money 10:35 that has ever existed in the world and I 10:38 think will continue to take over and be 10:41 the primary and only money uh in the 10:43 decades ahead. Have a great night 10:44 everyone.