Why Is Bitcoin “DOWN” At $101,000?

Bitcoin is down at $11,000 right now. First of all, let's put that in perspective. Down at $11,000 by any historical perspective is sounds insane. So in the future, people are going to be complaining that Bitcoin is down to a million dollars a coin. And it's down again to a million dollars a coin. It's down to $1.1 million per coin. What is down even? I mean, it's down from like what, a month ago, two months ago, whatever. But that's fine. Let's talk through it because I know every, you know, there's constant new waves of people joining the world of Bitcoin. And if your first purchase of Bitcoin is at prices significantly higher than it is today, I know that does not feel good. So, first, some perspective. Bitcoin is radically up over any meaningful time period. Second, this is the 31st time Bitcoin has been down by 20% or more since Bitcoin started 17 years ago. So, Bitcoin is a 17year-old asset. It started on January 3rd of 2009. So, coming up on its 17th birthday and Bitcoin has dropped by 20% or more, literally 31 times. This is the 31st time. So more than 30 times before, Bitcoin has done exactly what it's doing right now for the exact same reasons. And those reasons are that very temporarily, demand, you know, supply is outstrip demand. The people who are willing to sell Bitcoin at a given price exceed the number of people that are willing to buy it at a higher price. Therefore, the price is pushed down because there are people willing to sell Bitcoin at $101,000. And the people who want to buy Bitcoin, of which there are plenty of them, don't have to pay more than $11,000 because that's what people are willing to sell it for. So the supply and demand equilibrium is at $11,000, which is fine. Again, we've been here 31 times. 31 times. So, first of all, is there anything wrong with Bitcoin? No. Bitcoin's in the best place it's ever been. Is it still limited to 21 million? Yes. Is it still hackerproof? Yes. Is it still uh processing transactions worldwide? Yes. Is it still completely unstoppable money that you can use anywhere in the world? Yes. All of the things about Bitcoin are true. And the regulatory environment for Bitcoin is superior to any time ever in history. Like we're better. Bitcoin is in a better place literally than any other time. Additionally, the Federal Reserve has indicated that they are uh as of I think it's December 1st. I think it's just anyway December 1st they are turning off uh asset sales which means they are entirely printing money without even attempting to suck any of that money back into the uh onto or I should say out of the economy. So if you watch So if you're worried about the price of Bitcoin, you should do three things right now. one, go read the article about Bitcoin silent IPO that I posted uh whatever it was over the weekend or you know earlier this week, whenever it was, read the silent IPO article. Next, go watch Jack Malers last night, the Jack Mer show. uh he's got a fantastic uh live stream that he did that explains why Bitcoin is doing what it's doing and uh he goes through a bunch of charts and graphs and all that sort of stuff. And he's going to explain it the better better than I could. So, um I'm not going to make an attempt to retell you everything you're going to learn from those two assets. One second. But if you read the silent IPO article, which will take you about 11 minutes to read and you watch the Jack Morers's live stream, you're going to get 90% 95% of what you need to know. James Czech already has a really good analysis out as of this morning. I will try to um post some excerpts on that at some point. Um tonight, tomorrow, I don't know when. Um but let's talk about the real world application. What do you do when the market is at $101,000? Uh first of all, if you can buy more Bitcoin, I would like if you are not 100% allocated, I would. Um for me personally, I was comfortable with my Bitcoin allocation. 100% Bitcoin and then plus I financed the Tesla I'm sitting in and I financed a Sleep Number mattress, you know, whole bed set up. uh which means technically I'm slightly over 100% exposed to Bitcoin because I am shorting the US dollar by two things that I've I have financed. Uh the rest of the stuff I own. I you know other than that I own my cars, own my house, own everything with no debt, all of that. Uh but Bitcoin is low enough that it is starting to tempt me tempt me to buy more some way or another. So here's what I have done to see if there's what more ways I could buy more Bitcoin. one, I started exploring whether I could take out a loan against my old 401k at Bombgar Corporation. Normally, you can take out a loan of up to $50,000 from an old 401k, but I had already converted that to a um to a rollover IRA back last year when Bitcoin was $57,000 per coin. So, that old 401k is now a rollover IRA. I put 100% of it in Bitcoin. I think it was July of last year when Bitcoin was at $57,000 per coin. Obviously, that's way up because $57,000 last year is now $101,000 now. So, for some perspective, July of last year was not that long ago. And we were in a dip just like now. And I was making a decision just like now to allocate some additional capital to Bitcoin that I had not previously decided to do that. I had decided I felt good about where I was. I had everything the way I wanted it. I was good with however much Bitcoin I owned at that time and I was just going to settle in. But as the price kept dipping all of last, you know, eight months of last year, the price kept dipping down into the 50,000s over and over and over into the high 50s. And finally, I was like, "All right, if you're going to sell me cheap Bitcoin, I'm going to take that cheap Bitcoin off your hands. If there is somebody out there dumb enough to sell me, in this case with my old bombgar corporation 401k, hundreds of thousands of dollars of Bitcoin for 57,000 per coin, thank you very much. I will take it. So I did. So I put 100% of my 11 years of 5% match of uh Bombgar Corporation, which I got a match and I think it was a on my part was 5% and the match was 3% or something like that. Anyway, all of that 8% of salary for eight years, I dumped a 100% of it in Bitcoin last year at $57,000 per coin. So, I'm way up on that. Okay. So, um so I tried to see if I could borrow against that because normally you can borrow up to $50,000 against your current 401k. And the only downside is you have to pay yourself interest. And if you never pay it back, you pay a penalty. But of course, I would pay it back. One second. But because I had already rolled that into a uh an IRA, a rollover IRA, you can't borrow against a rollover IRA. You can borrow against a 401k. You cannot borrow against a IRA. Uh so that was not an option. I am not going to uh home equity line of credit. I'm not going to do that cuz my family lives in my house. I already have an insane risk appetite. 100% of my liquid assets are in Bitcoin. So, I'm going to leave my house just the way it is, 100% fully paid for that my wife and family live in and all of the vehicles that they drive, which I own 100%. I'm not financing any of those. I'm only financing the one I'm sitting in, which is the one I drive because I have a lot higher risk tolerance for things that only affect me. Okay. Next up, I have so I explored whether I could take out a loan to buy more Bitcoin. Um I so currently strike str I ke which is one of the most popular lenders that lets you do this does not have loans in Mississippi. They have business loans but not personal loans. They're coming out with personal loans. Uh but I was considering now I'm not saying I would do this but I was considering taking a loan of I don't know $10,000 or something of against my Bitcoin to buy more Bitcoin. I normally do not recommend that. Do not do not do not do that unless you own a ton of Bitcoin and you can true up that loan as many times as it take regardless how low it went. But in my case, I own enough Bitcoin that I could like massively overcolateralize it, which means I would be borrowing a very small percent of the total. So, I explored that, but they don't have individual loans in Mississippi, and I already have too many business entities and too many, you know, K1s for taxes. So, I don't want to do a business loan on that. Um, next up, I was messing around with Coinbase's lending feature, but it explicitly says for Coinbase that you're not allowed to borrow against your Bitcoin and then turn around and buy more Bitcoin. So, there does not appear to be anything that keeps you from doing that, but it is explicitly against their terms of service. And because I do not want to lose the privilege of having my my Coinbase account because I use it for the debit card and the credit card, I am not going to do that. So, I borrowed $1 on Coinbase. I borrowed $1 and uh just to see how it worked. Um so technically I have a $1 loan on Coinbase that I could theoretically use to buy more Bitcoin, but the terms of service say you're not supposed to do that. So the one place that I have a little bit ability to get more Bitcoin is I still have some old gold and silver I bought in 2017. So back in when I first bought Bitcoin back in 2017, I bought a little bit of gold, a little bit of silver, and a little bit of Bitcoin. And then I started researching each of those and uh tried to figure out okay which of these is a better asset for the future of money because it was clear to me the government was just going to print money into oblivion and debase the currency and you know leave us all poor. Um and I concluded very quickly that Bitcoin was the answer. But I still have that old gold and silver because it's such a pain to sell gold and silver. Um, so if anybody knows of a local bullion dealership that will take gold or silver in central Mississippi, let me know and when I'm in Mississippi, I will go swap it out. Um, I got it from ATMEX, APMEX in Texas. Um, and I think I can sell it back to them, but initially it looked like the the fees to sell it back to them was like 4% on the gold and 12% on the silver, which is insane. So, you know, that seems like a high penalty. Plus, I'd have to pay capital gains tax because it's gone up, you know, not nearly as much as Bitcoin, but it's gone up some uh from 2017 to the present. So, that is my current best shot of buying some more Bitcoin is I will probably sell some of that gold and silver back to AppMax. I'll just ship it back to them from, you know, UPS. But I got to go retrieve it and it's in a safe deposit box in a bank and it's a huge pain. Uh because again, it's a royal pain to store safely gold and silver. Um, I don't like gold and silver, especially silver. Silver is a super dumb investment in my opinion. I only got it because people were buying gold and silver, and I was like, I just want to experience what this is like and see if there's anything to this. And I came to the conclusion that, you know, gold is is obviously scarce. Silver just makes zero sense, but I still own some back in 2017. So, I'll probably sell some of that gold, some or all of that gold and silver, and use the proceeds to buy more Bitcoin. So, if you can buy more Bitcoin, I would buy more Bitcoin right now. And if you can't stomach the fact that it might go down, set up a recurring buy on River, a supercharged recurring buy on River where you know it just uh you know, every day or every week or whatever, it automatically buys you Bitcoin and if the price is dipping, it buys you more Bitcoin. That's not the primary way I accumulate. But I did get a notice this morning that my supercharged River buy had been doubled uh because the price of Bitcoin was dipping and so it bought double the amount it normally would. And I think River just added the ability to like triple on a supercharged buy where if the price is dipping, it triples up instead of doubles up. So I need to go adjust that and make it a triple up instead of a double up. But um but anyway, I am actively looking for ways that I can sell stuff to buy more Bitcoin. I was happy with the allocation I had, but down here at 101,000, I'm like, "Come on, people. If everybody's gonna be stupid and give me more Bitcoin at these prices, eventually I will find a way to take it." Um, so, uh, because, you know, 31 times in the past, the price has gone on to set a new all-time high. Bitcoin's monetary properties are amazing. I see absolutely no reason why Bitcoin's not going to go set a new all-time high once it flushes out all these people that are selling their Bitcoin for whatever reason. And again, you can listen to Jack Malers. You can, you know, go read James Czech and go read that silent IPO article if you want to know um why people are selling Bitcoin or go watch the video. I I did a video either Sunday night or last night, whatever, um talking about uh this concept of the great rotation and all of that. So, you can go watch that. So, I am actively trying to find ways to uh buy more Bitcoin, my old tiny amounts of gold and silver from 2017. Um, which again, the real deal reason I haven't swapped it out is it's just it's not enough to really matter how much Bitcoin I own, but I'm just not willing to watch Bitcoin sit at $101,000 without, you know, happily removing it from the hands who of whoever is dumb enough to sell it to me at that price. Um, now people some people are selling in desperation and for that I am sorry, but some people are just momentum trading and doing stupid stuff and if somebody's doing stupid stuff, I'm happy to take their Bitcoin. Um, but anyway, if you can buy more Bitcoin, buy more Bitcoin. If you don't like buying Bitcoin when it might go down, put a recurring buy on River, a supercharged recurring buy on River, and let it buy every day or every week for you. That way, no matter what the price is, it is, you're getting more Bitcoin. Um, and if if if let's assume I did not have a little bit of gold and silver left over from 2017, if you are 100% allocated to Bitcoin already, like I am with my liquid assets, look, go touch grass, hang out with your family, wait it out. Like, as long as your finances are not completely upside down where you're just sucking wind and feeling horrible, uh, and you just can't ride it out. If you can't ride it out, then obviously that is sad and unfortunate. But if you can ride it out, ride it out. touch grass, hang out with your family, you know, live a cheap life, and just wait it out. This is this is temporary. Again, Bitcoin has been here 31 times. 31 times. It's been here 31 times. What's it going to do after this? In some time period, it's going to go set a new all-time high and then blow way past it. I don't know if it's tomorrow. I don't know if it's next week. I don't know if it's next year. Nobody knows. It's just always eventually going to go set a new all-time high. And everybody who owns Bitcoin, who who could have bought more Bitcoin right now, they're all going to wish they had bought more Bitcoin. This happens every time. So, this happens every time where people wish they had bought more Bitcoin. You know, they're looking at $101,000 Bitcoin and they're thinking, "Oh, this is horrible. It's the end of the world." And then within some relatively short period of time, they're thinking, "Why did I not buy more Bitcoin at 101,000?" Well, here you are. You can buy more Bitcoin at 101,000. And if I had a bullion dealer ship that would take gold and silver off of my hands like today and give me Bitcoin in return, I would do that today. I just got to find a way where I'm not going to get killed on taxes and killed on the exchange fees cuz gold and silver are they suck when you have to actually trans transact with them with anyone because of you know it's not like Bitcoin where you can just transfer it basically for free anywhere in the world. So if you can buy more Bitcoin, buy more Bitcoin. Same advice as always. My advice never changes. Buy as much Bitcoin as you can. Sit on it for as long as conceivably possible. It's that simple. It's really that simple. Thanks,