Why Bitcoin Is Valuable — And Therefore Will Go Back Up Then WAY Up!

00:01 hey everyone let's cover why Bitcoin is 00:04 valuable which is why it's a great 00:06 investment Um obviously you should never 00:08 invest in something just because you 00:10 think it's going up Uh that's called 00:12 pure speculation And if there's not 00:14 underlying value in whatever you're 00:16 investing in then just as likely that 00:18 it's going up it's even more likely that 00:20 it will come back down So good 00:22 investments are things with good 00:23 fundamentals meaning they have a 00:25 rockolid use case They have a value 00:27 proposition and there is a reason they 00:30 are valuable Um so for example one thing 00:33 that's been up a lot recently is a meme 00:35 co a memecoin called Fartcoin Fartcoin 00:38 is up 1,500% or was recently but 00:42 obviously it's a memecoin It's 00:43 ridiculous 100% of the people in who 00:45 have money in it believe it's going to 00:47 go to zero They're just hoping it goes 00:49 up more before it goes down which of 00:51 course is ridiculous That's stupid I 00:53 would never do that sort of thing Um so 00:55 Bitcoin is a fantastic investment 00:57 because it has underlying value So let's 00:59 do a recap on what that is Okay first 01:01 let's start why with why do other things 01:03 have value well for example food is 01:06 valuable because it keeps you from being 01:07 hungry Shelter is valuable because it 01:09 keeps you from being wet and cold 01:11 Transportation is valuable because it 01:13 keeps you from being stuck in one place 01:15 And clothing is valuable because it 01:17 keeps you from having to walk around 01:18 naked So all of those things are 01:20 valuable and nobody would question that 01:22 Money is valuable The concept of money 01:24 money as a technology is valuable 01:26 because it keeps you from having to 01:28 barter for what you need It keeps you 01:30 from having to trade a dozen eggs and a 01:33 pair of old shoes in exchange for a plow 01:35 Like there's just no way to run a modern 01:37 economy when you're trying to trade 01:39 goods and services which means products 01:40 and services with other people for 01:42 product and services So that's why we 01:44 use money So we don't have to do that So 01:46 money is very very valuable So 01:48 historically the two most viable forms 01:50 of money were gold and fiat currencies 01:53 Gold is the yellow rock And fiat 01:55 currencies are madeup government money 01:58 that has typically pictures of dead 01:60 presidents on it So we're going to talk 02:02 about why Bitcoin is valuable in the 02:04 context of those two uh those two sort 02:06 of former technologies that are now in 02:09 my opinion obsolete but it'll take a 02:11 while for the world to figure that out 02:12 Okay So first up and I'm I printed a 02:15 piece of paper here to reference I 02:17 posted this uh to Facebook in the last 02:19 couple days so you've got a written copy 02:22 of this if you're interested Okay so 02:24 let's talk about gold Gold has four 02:26 primary flaws which is the reason gold 02:28 is not the monetary system of the world 02:30 right now It has four primary flaws One 02:32 it is not easily divisible A gold coin 02:35 is not easy to cut into two halves Um 02:38 it's not easily portable large amounts 02:40 of gold uh get very heavy very quickly 02:44 and you can't take gold through an 02:45 airport or a metal detector without 02:47 potentially it getting confiscated So 02:49 it's just not it's not a good fit that 02:51 way Uh it's not easily verifiable You 02:54 typically need a $50,000 spect 02:56 spectrometer to figure out if gold is 02:59 gold and even then you're not sure 03:00 because it's hard to tell the purity and 03:02 it's hard to tell you know what else 03:03 might be mixed in Um so uh and then gold 03:06 cannot be moved electronically There's 03:08 no way to send gold to the other side of 03:10 the world in a matter of minutes the way 03:12 you can with Bitcoin So that those are 03:14 the the four primary issues with gold is 03:16 it's not easily divisible It's not 03:18 easily portable It's uh not easily 03:20 verifiable and it cannot be moved 03:22 electronically around the world Okay So 03:25 then you got fiat fiat currencies like 03:27 the US dollar which has two primary 03:28 flaws So the US dollar largely took the 03:30 place of uh gold and it took the place 03:33 of gold because of those flaws in gold 03:35 So the US dollar has all sorts of 03:37 problems but it solved those four 03:39 problems of gold Otherwise we'd still be 03:41 on the gold standard If the gold did if 03:43 gold did not have those four flaws the 03:46 world would have never switched over to 03:47 fiat currencies So one so the fiat 03:50 currencies have two problems and they're 03:51 big ones One is that restrictions apply 03:54 especially internationally Uh meaning 03:57 you might think you own the money but 03:59 your money can be frozen at any time It 04:01 can be blocked from crossing boundaries 04:03 and barriers you know accounts can be 04:05 frozen accounts can be uh confiscated 04:08 The money is only yours as long as 04:10 whoever issued the money wants to let 04:12 you have it And as we saw in with Russia 04:14 and Ukraine the US government decided 04:17 $300 billion of Russian assets just all 04:19 of a sudden wasn't theirs anymore And 04:21 even if you think that's the right 04:23 decision you got to believe if that was 04:25 your money you'd be upset about it So 04:27 your money in fiat currency is only 04:29 yours as long as the government as long 04:31 as you are in the good graces of the 04:32 government that issued the currency Uh 04:34 the second problem which is by far the 04:36 biggest problem is that any money that 04:38 is based only on a government whim can 04:41 be printed by an unlimited amount and 04:42 that's been by far the biggest issue 04:44 with fiat currencies is they print 04:46 unlimited amounts amounts of money and 04:48 the money just loses value So the US 04:51 dollar has lost since the creation of 04:52 the Federal Reserve which allowed the 04:54 government to print money back in 1913 04:57 In the last 111 years the U the dollar 05:02 has lost between 97% and 99% of its 05:05 purchasing power Meaning the dollar of 05:08 the past uh back from 1913 would have 05:11 bought somewhere you know vastly more 05:14 the the dollar today buys only uh 05:16 between 1% and 3% of what the dollar 05:19 would buy you back in 1913 So that's a 05:22 massive problem So what does Bitcoin do 05:25 about this well remember uh money as a 05:28 technology is valuable So whatever 05:30 satisfies the needs of money whatever is 05:32 a better money will eventually be the 05:35 most valuable So how does Bitcoin 05:37 compare um per the above money has value 05:40 because it keeps people from having to 05:42 barter for what they need And Bitcoin 05:44 specifically has value because it's a 05:46 better money So for example it's more 05:48 divisible than gold It's easy to divide 05:50 Bitcoin in up to 100 million units per 05:53 coin which right now is worth one the 05:55 smallest unit is one less is less than 05:57 onetenth of one penny Uh by comparison 06:01 Bitcoin is more portable than gold You 06:03 can go anywhere in the world with 06:04 Bitcoin You can even memorize a 12-word 06:07 seed phrase in your head and cross any 06:09 border and then plug those 12 words back 06:12 into a Bitcoin wallet on the other side 06:14 of the border and get all your Bitcoin 06:16 back So that's not the way anyone 06:18 recommends people normally use Bitcoin 06:20 but it's possible So you can actually 06:22 hold Bitcoin in your head just by 06:24 memorizing a 12-word seed phrase uh in 06:27 an emergency Again that is not 06:28 recommended for anything but an 06:29 emergency but it's possible And um and 06:32 it can and you can send Bitcoin over a 06:34 communication channel uh anywhere in the 06:36 world So you can you can carry it easily 06:39 It's more verifiable than gold Any 06:41 Bitcoin uh software will tell you if 06:43 something's real Bitcoin or not It 06:45 doesn't require a $50,000 computer It's 06:47 literally a free app Any free app or any 06:50 free website will verify whether you own 06:53 the Bitcoin or not So that doesn't 06:55 require any extra um it's not difficult 06:58 and it can be moved electronically So 06:59 Bitcoin can be moved to the other side 07:01 of the world instantly over telegraph 07:04 telegram ham radio satellite links the 07:07 internet any which way you can move 07:09 Bitcoin over an a any communication 07:12 channel which again is not possible with 07:14 gold Also Bitcoin does not have the 07:17 restrictions for that fiat currencies 07:19 have So you can go through over any 07:21 border with Bitcoin And if you self 07:23 custody in something like BitKey nobody 07:25 in the world can freeze your account 07:26 There's literally no possible way short 07:29 of incarcerating your human person and 07:31 not allowing you that they can control 07:33 what you do with your Bitcoin Other than 07:34 that your Bitcoin is yours It doesn't 07:36 matter where in the world you live and 07:39 whether or not you are in the good 07:41 graces of whatever dysfunctional 07:43 governments you might be uh might be 07:45 near Um you can your your Bitcoin is 07:48 yours Nobody can take it and nobody can 07:50 keep you from using it or moving it Um 07:53 and by far the most important aspect of 07:56 all of this is Bitcoin is scarce There 07:58 will only ever be 21 million Bitcoin And 08:00 as a result of that because it is better 08:02 money it uh retains its value over the 08:05 long haul much better than any other 08:07 currency Um so for all of those reasons 08:10 again I would never say invest in 08:12 something because the numbers going up 08:14 Any investment you should understand the 08:15 fundamentals and you should understand 08:16 why it's valuable In the case of Bitcoin 08:19 it's valuable because it is a better 08:21 money and because it and the reason it's 08:23 a better money is because it solves the 08:25 four primary problems with gold and the 08:28 two primary problems with fiat 08:30 currencies Now there's actually a lot 08:31 more problems with gold and a lot more 08:33 problems with fiat currencies but I 08:35 decided to restrict it to the top four 08:37 problems with gold and the top two 08:39 problems with fiat currencies Um so in 08:42 short uh Bitcoin has value value because 08:45 it solves the problem that money solves 08:47 which is that it keeps people from 08:48 having to barter for what they need And 08:50 it solves that problem better than any 08:53 of the other alternatives So Bitcoin 08:55 right now is about $94,000 per coin Uh 08:58 at $94,000 per coin it is 13% below the 09:01 all-time high recently of 108,000 Is 09:04 that a problem no because we're not 09:07 investing in Bitcoin because it's up or 09:09 down on a daily basis We're investing in 09:11 Bitcoin because it is a better money for 09:14 the world and it will out compete all 09:16 other monies of the world And because 09:18 it's a better money and because it will 09:19 out compete all other monies of the 09:21 world it will eventually be far more 09:23 valuable than it is today Now in the 09:25 short term it will go up and down Um 09:28 it'll go up and down a lot which is 09:29 actually a good thing because when 09:30 there's no more volatility it means 09:32 there's no more upside The point at 09:35 which Bitcoin is just slowly plotting 09:37 along with very little change also means 09:39 the the potential upside uh is very 09:43 limited as well So you should welcome 09:45 the volatility of Bitcoin because it 09:47 means there's still a lot of potential 09:49 upside When the volatility goes away so 09:51 does the upside which probably will not 09:53 be you know the volatility has been 09:54 slowly falling over time and eventually 09:57 it will be you know it'll Bitcoin will 09:59 be the least volatile thing in the 10:01 entire world meaning it will go up and 10:03 down less than anything else in the 10:04 world Uh but that's decades into the 10:07 future Uh between now and decades into 10:09 the future Bitcoin will go up and down 10:12 And the more it goes up and down the 10:13 more potential it has to go up which is 10:15 actually a good thing Um so anyway that 10:18 is why Bitcoin is valuable That is why 10:20 in my opinion everyone should invest in 10:22 Bitcoin And that is why the upside of 10:23 Bitcoin far exceeds anything we've seen 10:26 so far which means it's 13% on sale 10:29 right now which is great It gives you an 10:31 opportunity to buy Bitcoin 13% cheaper 10:33 than whoever bought it at 108,000 a coin 10:36 I don't know how much longer it'll be on 10:38 sale Nobody knows Nobody will knows if 10:40 it will go down more before it goes back 10:43 up It doesn't matter All that matters is 10:45 that in the long run it will be 10:47 extremely valuable and much more 10:49 valuable than it is now And therefore it 10:51 makes sense to buy as much as 10:53 conceivably possible right now That's 10:55 all that matters And then hold on to it 10:57 as long as conceivably possible And you 10:59 will have an asset that appreciates 11:02 better in my opinion than anything else 11:03 you could possibly buy So that's the 11:05 primer of why Bitcoin is valuable why 11:08 you should invest in things only that 11:10 have value and that you should 11:12 understand why they have value so that 11:14 you're not you're not investing in 11:16 something hoping you get out before it 11:17 crashes That's not how Bitcoin works 11:19 Bitcoin eventually basically goes to 11:22 almost infinity value as compared to 11:23 fiat currencies And the question is how 11:25 early do you adopt it and how much of 11:27 that up upside uh do you benefit from so 11:30 Bitcoin's amazing always has been It's 11:32 on sale right now its fundamental 11:34 monetary properties have not changed 11:37 It's still the best thing you could 11:38 possibly invest in in my opinion And uh 11:40 and it's on sale No no better time to 11:42 buy anything than when it's on sale So 11:45 have a great day everyone Thanks