Why we KNOW Bitcoin will ALWAYS bounce back!

Why do we know that Bitcoin will always bounce back? Well, there's a couple reasons and I'm going to walk through them. The first is Bitcoin always has. Bitcoin has been down in the past by more than 75% four different times and gone on to set new all-time highs. But of course, the past does not predict the future. So, there's deeper reasons that Bitcoin always bounces back. But I'm going to walk through what I wish somebody had told me back in 2018 when the price was doing similar to what it is now. And I should have been buying way more Bitcoin, but I wasn't because I did not have a Bitcoin sherpa back then to guide me on my Bitcoin journey. If I had, I would own way, way, way more Bitcoin than I do right now. Okay. So, first, Bitcoin always bounces back, but it bounces back in the past for the same reason that it will in the future, which is, for example, you you you might look at the headlines and you might think something must be wrong. Something must be wrong with Bitcoin. Here we are sitting at $67,000 per coin and it was as high as 126, even though it was only 126 for like 2 minutes in the entirety of last year. Most of the year was lower. The average price last year was about 101,000. for the whole year. Average price I think was 101 if I remember right. Uh but regardless, it's down. It's down from last year's average price. It's down from last year's high. Okay, so here's what I wish somebody had told me in 2018. Number one, Bitcoin does this. Any high performing asset will have drawd downs comparable to how high performing the asset is. So if there's huge amounts of upside potential in the asset, you will get huge volatility. If there's medium upside, you'll get medium volatility. If there's low upside, you'll get low volatility. Now, that does not mean every asset that crashes automatically comes back. But it does mean that anything that has huge upside will do this. There is no asset that is low volatility, huge upside. That's what everybody wants. Everybody's like, "But Joel, I want to make 10 or 20 times my money, but I don't want the volatility. I don't want my stomach to drop every time it crashes." And the answer is that asset doesn't exist. I'm sorry. It does not exist. There is no asset like that. The best you can get is Bitcoin. Bitcoin has the highest return risk-to-reward ratio of any asset. Uh but again that you know they always go together. The volatility goes with the upside. All right. But again if you were worried because you looked out your window and you're like something must be wrong. Well first of all did humans go back to barter. No we did not go back to barter in the last four months since bit Bitcoin's all-time high. We did not start suddenly start trading everything with each other and eliminate money from the economy. In fact we went the other way. Right now, there are more mobile payment apps, QR codes, Tap Pay, Swipe Pay. There are more ways to pay electronically that get us even farther from barter. So, no, we're not going back to barter. Okay. So, did angels descend from on high to take over the government and stop them from printing too much money and destroying the money? No. Angels did not descend on high. Jesus did not come back for the second time. uh we still have the same corrupt uh you know incompetent and sinful people in control of the government that we always have. What are those people going to do with the money? They're going to corrupt it. They're going to undermine it. They're going to print too much of it just like they always have. So that has not changed. Okay. Is there a competitor to Bitcoin? No. The answer is no. Because we've talked about this on a gazillion videos. The nature of Bitcoin's design makes it almost impossible to improve upon in a way that Bitcoin can't just upgrade. So any upgrade can either be adopted by Bitcoin or it's an upgrade that makes uh some aspect of Bitcoin better but some other aspect worse in which case you don't want to upgrade. So there is no cryptocurrency that magically solves something Bitcoin doesn't have. There are no new competitors on the market. There are no new uh vulnerabilities. There's nothing that would indicate that Bitcoin h has a problem. So, we know Bitcoin always bounces back. One, because it always has. Two, because every high performing asset does this. It doesn't matter if it's the magnificent seven stocks, which are Apple, Amazon, Google, Microsoft, Facebook, Tesla, and Nvidia. I think I got them all seven. You can Google that or chat GPT. Ask ChatGpt. It'll tell you the Magnificent 7. But first of all, every one of the Magnificent 7 behaves this way. every one of them that has a and the Magnificent 7 are the seven highest performing stocks on the stock market over the last decade or two. They've essentially carried the entire S&P 500. So virtually 100% of the gains of the top 500 companies in America have all come from just seven companies, which are those seven. Apple, Amazon, Google, Microsoft, Facebook, Nvidia, and Tesla. Yeah, that's all seven. Okay. So they've all behaved the same way. They've all had 50 plus percent draw downs. Amazon had a 94% draw down uh early in its life. You know, Tesla's had huge draw downs. Nvidia's had two draw downs greater than 85%. This is normal for high performing assets. Bitcoin is normal. It's acting like every other high-erforming asset, including itself. It's acting exactly the way it did in the first four times that it had major price turns, and this is the fifth. and it will go on to set a new all-time high yet again, a sixth all-time high after the fifth major dr draw down. We're in the fifth major draw down of Bitcoin's life in the last 17 years. We're in the fifth one right now. We are near the bottom. We don't know what hopefully 60,000 was the bottom. Uh we don't know. It could dip slightly below that in the future. We don't know. It's mega on sale right now. That's absolutely for certain. Uh but we again we know Bitcoin does this and it's normal. We know all the other high performing assets including gold and silver and you know precious metals, commodities, they all behave this way. Basically there's nothing you can try to get a financial return on that at some point does not behave this way. There is no new competition to Bitcoin and there won't be because of all the reasons we talked about in other videos where you have the blockchain chain trilmma which is it's impossible to invent something better than Bitcoin without a tradeoff in either security or decentralization. You can't get anything Bitcoin doesn't offer without somehow uh a trade-off in decentralization or security which are the two most important aspects of money. Decentralization means a money that you know a small group of people or companies or uh governments uh can control. You don't want that. You want decentralization. You want money that nobody controls. And security of course you want something that is uh secure and you know censorship you know elimination or uh uh immune to censorship and all of that. So anybody can use it anytime they want. Nobody can block it. All of that. You can't get those attributes and characteristics uh with without if you try to change something about Bitcoin. you make one of those worse, which is why all of the competitors to Bitcoin, of which there's been tens of thousands over the years, have all just eventually gone to zero because again, there's trade-offs that you don't want to make in money. So, we're not going back to barter. Angels have not taken over the government. Um, so that leaves only one option, which is Bitcoin for the moment is mispriced, meaning the price does not reflect the underlying value of its monetary properties and worldwide adoption. That is a temporary problem that will be fixed. It will be fixed when more of the world wakes up and realize bit Bitcoin is underpriced. And that always happens. It's always happened before. And same with the magnificent seven stocks. It's always just a matter of time until people say, "Wait a second, you know, we're still using money. Wait a second. Bitcoin is still the best money. Wait a second. Governments are still going to print too much money." And, you know, at some point somebody decides, I got to put my capital somewhere. I can put it in real estate or stocks or I can put it in a bunch of stuff that's overvalued or very subject to the whims of the government or I can put it in Bitcoin and eventually the smart money takes the Bitcoin out of the hands of the dumb money who's selling it and the Bitcoin redistributes from weak hands to stronger hands. That's what's happened every time and that's what happens with the magnificent seven stocks and any other high-erforming asset in the stock market is the price you know the price crashes or dips the weak hands panic and sell the strong hands buy and accumulate and the asset ends up benefiting mostly the people with the high conviction who are buying it no matter what and holding it for the long haul which is what I recommend people do with Bitcoin. So uh nothing's wrong with Bitcoin. It's not going to be out competed. It has not run its course. It's not going to slowly whimper and die. We're not going back to barter. Humans have not found some way of uh you know of becoming angels. None of the fundamental elements of what make Bitcoin important or powerful or valuable. None of those have changed. We are just in a temporary crypto winter is what they call it. Even though crypto is mostly junk, Bitcoin is the only thing that's worth Bitcoin is really the only thing I'm certain is worth anything in the cryptosphere. There could be other stuff, but it's very speculative. Um, but we're in a crypto winter where all things crypto are out of favor and the assets go through this, you know, every asset's gone through uh a winter or two in its lifetime where the asset has fallen out of favor. People tend to prefer other assets. The price is down for no good reason and it just stays there a while until everybody comes to their senses. And then long-term, the stock market is an accurate reflection of value. Short term it is not. Short term it is uh a reflection of the whims of fickle humans and fickle humans are constantly doing things in the short term that don't make sense. In the long term uh the stock market does tend to over time reflect the truth though. So Bitcoin's on sale. If I were you I'd buy as much of it as I could and I'd hold on to it for as long as conceivably possible which is what I have always recommended. Thanks everyone.