Playing to Win - 032 - The Basics of Bitcoin in 2021 w⧸ Brad Mills

00:00:00.000 all right guys what is up we're up for another episode of the playing to win series it's been

00:00:06.880 a few weeks since i've put one out on this and i'm joined today by my friend uh brad mills also

00:00:12.280 known as bitcoin brad i guess how you doing brad doing great man good good so um we decided to put

00:00:19.800 this together because i've had a lot of people asking about bitcoin i've got guys in my communities

00:00:24.020 asking a lot of questions they wanted me to do like a more specific cast on the basics so this

00:00:29.140 is not advanced stuff we're not going to be talking about altcoins or shit coins i mean we'll probably

00:00:33.120 will because i want to get your opinion on what you think those are i like to get the opinion of

00:00:38.300 different people right so i've had amir on i've had uh charlie from cultivate crypto i've got brad on

00:00:43.940 for you today he's a big uh guy in the bitcoin space and uh super smart dude he's been around for a

00:00:50.620 while successful entrepreneur he's had some businesses which he's gone in and out of uh runs

00:00:55.000 a podcast um why don't you give him the four four one one on your story just give him like the

00:01:00.600 elevator pitch let him know who you are so they get a little bit of background

00:01:03.240 yeah sure um i'm i'm i'm an entrepreneur so i i started off originally with a with an idea that

00:01:14.520 i wanted to make some movie uh a movie and i figured well i'm gonna need some money to make a

00:01:19.600 movie uh so i grew up poor i grew up like no you know no no golden parachute or anything like that

00:01:25.060 i was i was on welfare and like we lived in government housing and stuff so we didn't really

00:01:28.620 have a good financial background education so i didn't go to business school or anything like that

00:01:32.780 i just wanted to uh pull myself up from my bootstraps and make a movie so i googled how do i make money

00:01:38.220 online and then i got scammed quite a bit for a few years and got into all kinds of different sales

00:01:44.120 things and ponzi schemes and mlm shit like i just got scammed like crazy every every like imagine

00:01:49.100 that's your business school how do i make money online so it didn't work out quite so well for me

00:01:54.100 but i stuck with it and i learned some valuable stuff of what not to do and eventually i i actually

00:02:00.100 started a business on facebook where i was making facebook games when they open up the api in 2006 or

00:02:05.560 seven and i had some success there so we were making some good money i actually had a real business i

00:02:10.720 wasn't like chilling like stupid fake gas pills or anything crazy from from what i was uh learning

00:02:17.380 about from google but i actually had a business and and i i had some success and um then i started

00:02:23.480 to figure like well now i got some money in the bank account what what what do i do with it and that's

00:02:29.400 kind of where i started to follow entrepreneurs and investors and start to try to learn about like

00:02:33.900 what do i do do i make multiple income streams so i diversify do i try to uh create another business

00:02:39.540 do i just buy a bunch of gold and like hide out in the mountains or what do i do

00:02:43.260 so that's kind of me man i just i just that's that now 10 years later i'm here yeah i think i came

00:02:52.360 across you about 10 years ago at jason gainard's event at mastermind talks right that's that's where

00:02:57.560 we cross paths that's right yeah we we met there and you were doing uh interviewing entrepreneurs in

00:03:03.120 your sports cars i was like who's this guy that's pretty cool i don't know i want to get an interview

00:03:07.260 in a sports car but yeah yeah yeah um cool so um how did you get into bitcoin like talk about that a

00:03:14.800 little bit at at what point like at what year did you get into it and why did you decide that this was

00:03:19.500 important and significant yeah so i got into bitcoin in 2011 um so i was you know i was doing

00:03:27.640 a game company like i said and i was managing a game economy of digital currency it was just no value

00:03:34.220 you couldn't trade the currency outside of the game but people were spending like a couple thousand

00:03:38.100 dollars a month on this thing and it just blew me away that people would spend that kind of a money

00:03:42.020 on digital currency so i kind of had a bit of a foundational understanding that people can value

00:03:47.880 digital stuff and um so it was kind of with that and then also being learning about uh the the history

00:03:55.980 of money when i started to have some money i started to think well what do i do invest in stocks i

00:04:00.880 guess that's what people do so i started looking into the stock market and kind of went down the uh

00:04:06.160 you know got got scammed again by people pitching like uh armageddon stock porn stuff like you know

00:04:13.920 everything's gonna crash the whole market's gonna collapse so buy these stocks these are gonna save you

00:04:18.280 like that kind of stuff and i was gullible so i was like trying to play the stock market and uh

00:04:25.480 this is 2010 or something like that so we're kind of coming out of the 2008 crash

00:04:29.760 and um i was i was you know all those guys were wrong because when you go back and look

00:04:36.600 like the stock market should have crashed it should have kept collapsing the risk should have got flushed

00:04:41.300 out of the system but i just kept looking into that stuff and being like why are the stocks going up

00:04:46.760 and what's a good hedge against this thing falling apart because fundamentally there's like

00:04:51.140 they're not trading at at fundamental values there's no reason why these stocks should all be

00:04:56.180 still up and why these banks should still be solvent if if you know bear stearns is going bankrupt and

00:05:01.680 they're all doing the same thing and the whole mortgage market's collapsing then there should be a

00:05:06.140 lot more risk to get flushed out of the system so i was not exposed to the stock market at all

00:05:10.600 and instead i started to buy gold and and when i was looking into buying gold uh it was a rich dad

00:05:16.340 poor dad by robert kiyosaki was a book that was in my mind from trying to have a financial education

00:05:22.260 so he was talking about how gold is a scarce resource and it's been money throughout history

00:05:27.060 and fiat money is just printed by central banks and it's debased and stuff so i was also kind of

00:05:33.900 trying to follow the libertarian sort of school of thought about austrian sound money and things

00:05:38.060 so i just was going down these rabbit holes of sound money and gold is money and fiat money is just

00:05:43.720 printed by central banks so i totally kind of de-risked everything away from stocks and and cash

00:05:50.580 and i you know built a house and took my took my spare cash i just didn't want much cash wanted to

00:05:56.040 have assets uh like like you know not income producing assets but gold and and and a house

00:06:02.960 and things like that and my business of course i still had which was generating some cash flow for me

00:06:07.500 and reinvesting in myself as an entrepreneur trying to grow the business but you know my spare kind of

00:06:12.440 like cash that was just sitting in the bank account like this shit's gonna fall apart i don't want any

00:06:15.980 of this dirty cash so that's when i found bitcoin in 2011 i was like from this foundational sort of

00:06:22.020 knowledge about gold is money gold is valuable because of scarcity and fiat money is just infinitely

00:06:28.180 printed by central banks and they're bailing out all the wall street banks that should have gone bust

00:06:32.840 and and putting that on the taxpayers so that's got to show up in inflation and devaluation of the

00:06:38.780 money supply at some point so i don't want this stuff it's going to go down in value so when i saw

00:06:43.400 bitcoin in 2011 i was just like kind of a nerdy sort of like reaction to it being like digital gold that

00:06:49.220 i can mine with my computer it's amazing so instead of putting everything in gold i took half of what i was

00:06:54.560 going to put in gold and i put it in bitcoin so i bought your first bitcoin in 2011 yeah i used to have

00:07:00.740 this old work laptop i think it was around 2012 or 13 that i first came across uh bitcoin and i set up

00:07:06.940 my laptop to mine it and i think it it pulled a few bitcoin i don't know how many but i ended up just

00:07:13.020 forgetting about it and leaving the laptop at the office and somebody stole it so somewhere out there

00:07:17.160 somebody's got those oh man that sucks yeah um well you know back then it was worth like pennies i think

00:07:25.440 like maybe a quarter or 50 cents right right yeah so we got a few talking points here that i want to

00:07:31.600 dive into again guys this is just going to be kind of like a bitcoin basics to give you some of the

00:07:35.920 fundamental understandings i did this um survey actually here here let me pull it up because i want

00:07:41.480 to um i want to just kind of cite the survey results because i was asking people what their engagement

00:07:47.840 was in crypto and okay here we are so here i can throw this up on the screen can i yeah sure screen

00:07:54.720 uh application window and there you go so you can see this is about four weeks i just asked people you

00:08:01.740 know what's your current position on bitcoin i got 20 000 responses uh 21 i own it and trust in it

00:08:08.420 uh 23 said i want to own it but i don't know where to start uh 36 said curious about it but not ready

00:08:15.940 to jump in yet and 21 says it's a scam bitcoin's going to zero so this is not for the scam guys

00:08:23.940 this is going to be for the 23 that said they want to own it and they don't know where to start

00:08:27.960 the other 36 that are curious but not ready to jump in hopefully this offers some clarity for you guys

00:08:34.160 today um let me go to these questions or these talking points we got so the first one is oh before

00:08:42.440 we proceed guys i'm looking at the count we got a lot of viewers here and the likes are nowhere near

00:08:48.160 close to that if you're watching this on youtube just hit the like button it just helps me out with

00:08:51.980 the algorithms okay do that for me um so your first talking point is we could be heading for a great

00:08:56.920 depression talk about that and the significance of what of what bitcoin is going to play in that

00:09:01.680 yeah man i'm like i'm curious what you think about that before i start going do you do you think

00:09:08.040 we're at the precipice of some sort of big systemic crisis here do you think they're just going to

00:09:12.120 print their way out of it and we're gonna i think they're going to try to print their way out of it

00:09:15.920 i don't think the government's ever going to get out of debt like never ever ever ever um it's not

00:09:21.340 happened at the levels that they're going at um let me just grab the m1 money supply chart because

00:09:26.540 that's probably relevant um i'm sure you already know what this is but for the viewers that don't this

00:09:32.180 is worth just throwing up on the screen too so um if you're not familiar this is this is 2019 ending

00:09:39.820 here and then this is all the money that was printed in 2020 so you know what happened right there when

00:09:46.120 that parabolic rise started yeah talk about that so in 2019 i mean we're seeing the stock market just

00:09:55.900 continue to go up and up and up over uh trump's presidency and you know with you know lowering

00:10:02.580 tax rates and and printing money and stimulus and all that stuff but really presidents don't have much

00:10:08.580 of an impact on the stock market it's really the the central bankers and the federal reserve and the

00:10:13.960 and the manipulation of the interest rates that controls the stock market so when when 2019

00:10:20.740 um september 2019 um there was this thing that happened which was like a real big crack showed

00:10:28.360 up in the financial markets to show that everything that did that they did over the last 10 years to

00:10:33.320 try to paper over the 2008 uh subprime mortgage collapse didn't work so in 2008 the regulators

00:10:40.960 globally create came together and created these uh basal accords which are kind of like a set of

00:10:47.120 regulations that that are like stress tests for the for the central banks and the systemically

00:10:52.660 important banks like the big huge banks and these things are like you got to have a certain amount of

00:10:58.740 reserves backing the money in your deposit in your accounts for your customers so much risk with your

00:11:04.360 commercial banking um you got to meet a certain amount of uh expected 30-day withdrawals for for uh you

00:11:13.620 know normal activities so that the banks basically can't be too over levered like they were in 2008

00:11:18.840 which which ended up causing the whole thing to melt melt down right the the banks if everybody

00:11:24.820 hasn't watched the big short obviously it's a great sort of dramatic take on what happened it's pretty

00:11:29.520 much truly what happened yeah that's on netflix too still i think yeah it is and and they in and

00:11:35.860 they basically discovered that there's this kind of fraud happening on wall street where the ratings

00:11:39.600 agencies like standard and poor's were just taking fees from the big banks to make these extremely

00:11:44.720 toxic risky derivatives products that they would then go and sell to other banks and to pension funds

00:11:51.180 and to other investors and they would they would mix toxic assets with good assets so they take like

00:11:58.420 triple a rated stuff like government bonds right you think the u.s debt is a triple a rated asset it's

00:12:03.600 not going to bankrupt you know but they would stack that in with toxic shit like subprime mortgages

00:12:09.180 and bets derivative bets synthetic bets on subprime mortgages so it creates this toxic basket that

00:12:15.480 everybody thinks is good and then they sell it to each other and then banks have this thing called

00:12:21.160 the repo market it's an overnight lending window where banks can borrow money from each other and not

00:12:26.380 just borrow money but these derivative instruments so i'm trying not to get too deep into it to confuse

00:12:30.760 people but just say that these banks are gambling with each other and they're they're lending each other

00:12:35.800 base money so this m2 money or m1 money supply here there's layers of money in the system there's

00:12:42.200 m0 which is base layer money you think that that's the seed of money it's real dollars it's stuff that

00:12:49.040 the federal reserve and the treasury creates and then banks can fractionally lend it out to each other

00:12:55.260 and to people and then take loans on it and fractional reserve that up into the m1 money supply

00:13:00.760 so that like a hundred dollars of base money a thousand dollars of m m1 and m2 money

00:13:08.580 and go ahead so sorry i'm just going to jump in here and just kind of like uh distill it down a

00:13:14.800 little bit because i want to keep it at the basics level um so when i look at this chart i'm looking at

00:13:21.060 the billions of dollars that have been printed and this is you know where the cursor is right now it's uh

00:13:28.920 january 2020 so let's say the start of 2020 says january 6 here as i drag the cursor across here

00:13:35.300 you can see all the years we're at 2010 20 2005 2000 all the way down to 1980 they have printed

00:13:43.320 a ton of money about a third it looks like because i went from 4 000 to 7 000

00:13:50.260 billions of dollars is what it says here yeah it's trillions it's trillions of dollars

00:13:56.960 that they printed yeah like this is insane like you cannot fathom what kind of effect this is going

00:14:03.600 to have on the marketplace the stock like it doesn't look like it's had much of you know like

00:14:08.840 much of a yeah effect from the user's end like you know you still go to the gas station and gas pretty

00:14:13.640 much cost the same you want to buy a loaf of bread it's pretty much the same everything's kind of like

00:14:18.760 you know you don't really notice it but the thing that most people understand is that the value

00:14:23.100 like the purchasing value of your dollar keeps going down over time because they keep making

00:14:28.680 more money they keep printing it out of thin air um which which is one of the problems that um bitcoin

00:14:34.400 solves because there's a limited supply there's only ever going to be 21 million of these things

00:14:39.340 i heard somewhere that because one of the one of the things that i've heard people protest is well

00:14:44.980 what happens when they run out of mining bitcoin and i think somewhere i came across the stat where

00:14:49.980 they're saying that um because of each having event every four odd years or so they're legitimately

00:14:56.280 going to be mining this stuff until uh like 2150 or something like that yeah there's not really a risk

00:15:03.080 that bitcoin is going to run out of like security the miners are bit pretty well paid security guards

00:15:08.620 for the bitcoin network and it's the biggest like most secure network on the planet has more computing

00:15:13.340 power than the nsa and the cia and the government of china and america and google and facebook all put

00:15:19.620 together there's more there's more decentralized computing power securing bitcoin than ever anything

00:15:24.100 else on the planet so that's a really well paid uh system of of compute power and there's also

00:15:31.580 transaction fees inside of every bitcoin transaction so there's kind of like a a mathematical um formula

00:15:38.500 that that shows that the fees are going to replace the block reward probably in around 10 years or so

00:15:44.040 so we're not really going to have to worry about it because the miners are still going to want to

00:15:49.420 process bitcoin transactions because they're they're not going to be paid bitcoin from the

00:15:53.720 the block reward anymore but they're going to be paid bitcoin in every block with fees from people

00:15:58.540 like you and me who are using bitcoin and paying fees to the miners right so satoshi created this uh

00:16:03.780 this this system of game theory incentives with putting 50 bitcoins bounties in every block when it was

00:16:10.240 launched because there was no fees no one was using it so there was no fees there so he had to reward

00:16:15.180 people somehow so he created the way to issue the whole supply over 100 years via block rewards and

00:16:22.020 then we got to the point now where it's like the fourth epoch of bitcoin where the halving is not for

00:16:27.180 another three years and there's 6.25 bitcoin now being issued in every block that's enough to like

00:16:32.900 incentivize it to be the biggest computing network on the planet and as the fees as the price of bitcoin

00:16:39.200 goes up and as millions and millions of more people come on to the bitcoin network the fees

00:16:43.620 will eventually replace the block reward and as bitcoin price goes up so do the fees so that's why

00:16:49.600 bitcoin like that's why i'd say that in the next 20 years or so most of the block reward bitcoins are

00:16:55.680 going to be already issued and then at that point it'll be fees securing the network more so than the

00:17:01.640 block reward for the next 100 years or whatever that makes sense okay so let's go back to that point of

00:17:06.600 we could be heading for the great depression um so that chart man like what do you think's going to

00:17:11.880 happen in my view is the government's never going to get out of debt they're going to keep printing

00:17:16.160 money i feel like that the great depression should have happened already you feel like it's long overdue

00:17:20.820 but it never seems to come right so what's your what's your position on that well like we're seeing

00:17:28.880 a show up in that chart that you just showed like they don't really have many tools left in 2008 they

00:17:34.020 they had the tool of printing money and that's what they did they printed four or five trillion

00:17:38.580 dollars and did the quantitative easing the bailouts of wall street and and all the big corporations that

00:17:43.820 were taking too much risk and and got bailed out by the taxpayer and then they kept this this overnight

00:17:48.900 lending window open but they weren't using it so they were trying to say we're not doing

00:17:55.520 quantitative easing anymore the markets are healthy look the basil the basil basil three requirements are

00:18:00.780 getting put in the banks have stress tests they're passing them so then in in september 2019 right

00:18:06.640 before that tick in the chart the banks stopped lending to each other and the and the interest rate

00:18:13.240 shot up to eight to ten percent and while the prime rates like the the central bank rate was like

00:18:19.420 point five percent and they tried to raise the interest rate a little bit because the only thing to

00:18:23.760 stop um to stop printing money what they have to do is they have to raise the interest rates

00:18:28.460 because then they can like when the rates go higher people will borrow less like the banks will

00:18:35.380 borrow less and they'll do less risky derivative stuff because it's actually more expensive to

00:18:40.220 take bets but when the rates are low it encourages a lot of a lot of like risky stuff to happen in the

00:18:48.420 markets and 2010 2008 gave uh gave all the bankers basically the permission to take as much risk as they

00:18:56.160 wanted because they knew that when they blew up the system they'd get bailed out and so what did they

00:19:00.040 do in 2019 when the rates went up a smidge like 0.25 percent they tried to raise them a little tiny bit

00:19:07.800 the banks just started to blow up they started to stop lending thing that caused the whole credit

00:19:13.080 crunch in 2018 2008 so they quickly said like we're going to give you as much money as you want

00:19:19.400 okay the overnight window is open anybody can take money and they started printing hundreds of billions

00:19:25.140 of dollars of base money like the m zero money that can then be fractionally reserved into

00:19:30.340 billions trillions of dollars through lending and through the the money multiplier so it took a few

00:19:36.360 months to see it but then it's not just the federal reserve printing money that caused that parabolic

00:19:41.120 rise that's part of it but it's also the federal reserve is more like sinister like in the way that

00:19:47.240 they're just printing money directly into the bank accounts through the overnight repo markets and it's

00:19:51.940 continuing ongoing quantitative easing now what this does is it's like it doesn't let banks fail it

00:19:58.920 doesn't let companies fail it just lets them continue to do the same risky toxic behavior that

00:20:04.020 caused the 2008 collapse and caused the march crisis when when we saw everything drop like crazy in march

00:20:10.100 it's because they they they didn't actually get to the point where they could pass the stress tests

00:20:15.760 so they tried they had 10 years to get up like the proper liquidity reserves and proper risk management

00:20:21.620 protocols and everything and then when the day came that they had to actually put them put them in in

00:20:26.660 place the whole thing fell apart and the they had to print six trillion dollars to bail everybody out

00:20:32.780 and they've suspended all requirements for any systemically important bank to have to meet any of the

00:20:39.080 stress tests so they don't need to even have any percent reserves anymore so they literally the money in your

00:20:44.860 bank how long can it go on yeah you know before the whole thing collapses on itself well that's the

00:20:51.020 thing that that that's why like we could be heading for great depression 2.0 because this does not make

00:20:55.920 any sense that this is that money itself can just be printed and inflated 25 like this on a parabolic

00:21:02.460 like scale and that it wouldn't cause some kind of hyperinflation like this is what happened in

00:21:07.760 weimar germany like they got they got they got ahead of themselves with the money printing i think we're

00:21:13.760 headed for that type of level of hyperinflation like you see in argentina or venezuela or lebanon or

00:21:18.980 something like that that happened over the last few years because we gotta like there's there's a few

00:21:23.460 tools they have left there's countries in the world where the interest rates have actually gone negative

00:21:27.720 and they've been toying with that in europe and japan for a while so we could see negative interest rates

00:21:32.860 before we see hyperinflation because they do have a few tools left in the tool belt to like what we're

00:21:37.700 seeing actually today with all the stock shenanigans going on with game stop those are some more tools that

00:21:42.900 they have they can actually like before we see great depression or or uh like hyperinflation

00:21:48.780 here's some things they can do they can print another 10 trillion dollars right like that's not

00:21:54.960 going to cause hyperinflation it's just going to continue to allow them to kick the can down the

00:21:58.260 road for another few years they can print 10 more trillion dollars they can uh they can lower interest

00:22:04.440 rates into the negative territory they can write off half your student loan debt they can give

00:22:09.360 everybody um zero percent mortgages to stimulate people to go buy and lower the the down payment

00:22:16.020 requirements for for a year say they can do some sort of um stimulus like they've been doing like

00:22:22.300 direct payments into people's bank accounts and and like you know they could double everybody's

00:22:26.820 credit cards like if you've got a ten thousand dollar limit on your credit card they could say all

00:22:30.700 like this is like a jet debt jubilee sort of thing where you everybody now has an extra go in and just

00:22:36.840 take money from people like just to you know deny them access to their bank accounts and liquidate

00:22:41.900 balances right like we've seen was it cyprus or greece that did that yeah cyprus and greece did that

00:22:48.520 cyprus greece did a uh the sovereign default on their debt and all the all the wealthy people that

00:22:54.880 had like a lot of money in banks just woke up to half their money was just gone so so like that's

00:23:00.660 another that's one that's a darker path we can go down is like okay the the one thing they can do

00:23:05.760 to stop a global depression is to switch to modern monetary theory and like do a lot of debt

00:23:10.260 forgiveness and stimulation but they're kind of already like to the point where the biggest metric

00:23:16.200 you want to look for that is the uh debt to gdp ratio and and like we're at like 130 percent debt to

00:23:22.920 gdp gdp to debt sorry debt to gdp and that's the highest it's ever been in history like before the big

00:23:31.100 difference between now and before and other times during the depression and world war ii and things

00:23:35.740 like that is that they had they didn't use up any of these tools yet like they didn't do massive

00:23:42.200 stimulus they didn't do interest rates low like back then the interest rates were so high that they

00:23:47.140 could actually taper the interest rates down to like three percent or something and that would help

00:23:50.980 the economy but now they've used nearly everything in the tool belt and and they've jacked up the

00:23:56.160 like they jacked up the debt rate so high that it's 130 or something debt to gdp where that's the

00:24:03.460 that's bigger than it was in during world war ii so there's not even a really systemic global

00:24:09.420 emergency happening like could you imagine if there was like a world war breakout or something right now

00:24:14.320 they don't have the ability to lower the interest rates much more at all they don't have the ability

00:24:18.740 to print more money because then that would put us to a 200 percent debt to gdp and that's just like

00:24:25.400 it's already uncharted territory we're at the precipice right now of some huge systemic shift

00:24:31.140 and it's going to either be a good thing or a bad thing so i'm hoping it's the good thing i'm hoping

00:24:36.160 it's not great depression but man it's uh well okay so let's move on so i mean like what he's

00:24:43.360 basically saying there is if you take all the ingredients of what's going on in the economic

00:24:46.840 world today and you put it in a blender and turn that thing on you're basically going to pour yourself

00:24:51.180 a nice shit shake okay that's that's what we're dealing with here a shit shake um so let's go to

00:24:57.380 the next point here because we got um how properties of decentralization scarcity and censorship resistance

00:25:02.940 mean bitcoin will perform even better if there isn't a global depression talk about that so yeah

00:25:08.820 with all those things that we've talked about we've laid the base foundation here of how how the

00:25:13.100 shit shakes being blended up for everybody to enforce forced on them to to suck it down but what if you

00:25:19.340 don't want to suck down that shit shake what if you just want to uh be an independent thinker well

00:25:24.300 then you're going to risk having your access to to your social media turned off you're going to have

00:25:29.160 you're going to risk being censored online you know if you don't go along with crowd think then you're

00:25:34.900 going to be censored and unfortunately that's the way things are going um and people are giving up

00:25:40.000 their rights like crazy right now so this is this is like another sign of of uh of a crisis that where

00:25:46.960 people are willing to give up all of their rights and freedoms and and we don't even have something

00:25:52.420 serious happening like a global uh depression or a world war so i did a podcast episode with dr

00:25:58.980 vieira he's a constitutional expert and he and he was telling me a lot of really interesting things

00:26:03.340 about how how it really was in the 20s and the 30s when the depression was happening during the world

00:26:08.600 wars and he's afraid of like now more than back then he thinks people are giving up their rights faster

00:26:14.040 today than they were back then when there was like a real threat so so what does that do like that

00:26:21.160 makes the people that have value like wealthy people entrepreneurs anybody that values things

00:26:28.740 and and wants to achieve and and make their lives better it makes them go look for things that are

00:26:35.140 valuable so when the markets are crashing like we saw in march people will sell whatever they have to

00:26:41.200 get cash because it's just the base reaction to like i need cash because cash is the king right now

00:26:45.780 but people also have seen that chart you posted and they're they're seeing that show up and like

00:26:51.100 they can't just keep parabolically printing money and expect it's not gonna have a knock-on effect in a

00:26:56.360 couple of years we're already seeing the effect of that inflation is happening in the things that rich

00:27:01.720 people want so inflation is showing up in the housing market and the bitcoin price and the stock market

00:27:07.900 there's no there's no fundamental reason why stocks should be where they are right now

00:27:12.280 ray dalio says that we're in such a crazy time that people are looking at stocks as stores of value

00:27:18.380 not even taken into fact that you can just issue more stock and then it just dilutes the whole thing

00:27:23.500 so people are just looking to get out of cash when so in a crisis there's a there's like people will

00:27:29.740 sell the cash and go into cash but then they'll redeploy into things like what rich people want

00:27:34.860 so sports cars and fine wines and art and stocks and real estate and shit like bitcoin

00:27:40.140 so bitcoin is you know people early days it was like people like me like libertarians and technology

00:27:48.860 adopters and anarchists and austrian economists and stuff like that gold bugs and stuff we're into

00:27:54.360 bitcoin but we're in a different phase of the market now where where it's it's it's really serious

00:28:00.020 people uh like stan druckenmiller was was commenting on buying bitcoin for one of his funds and um paul

00:28:06.820 tudor jones is one of the one of the biggest asset managers on the planet on you know manages or

00:28:11.860 influences trillions of dollars of assets under management was talking about how bitcoin is

00:28:16.720 something that they're buying and then you got people like michael saylor of microstrategy owns a

00:28:21.720 public company that puts his whole treasury into bitcoin buys 400 million dollars worth of bitcoin

00:28:26.900 and then starts to talk about how bitcoin is digital real estate and how like pointing out the

00:28:33.340 problems with the money printer and he said that as of march when he saw them print that much money and

00:28:39.400 he saw the supply of the money go up by 25 percent in one you know six month period he just sees that

00:28:45.340 that the cash is just burning a hole in his balance sheet and he wants to find something else that he can

00:28:50.760 park his assets into that's going to be part of the future in a hopeful way because it doesn't have to

00:28:56.100 be great depression 2.0 like we can find a way out of this with technology and with universal basic

00:29:01.640 income of some level of of like some level of modern monetary theory policies and progressive like

00:29:07.560 financial ideas is good for the world but we shouldn't let these people just print as much

00:29:12.920 money as they possibly want because that's going to devalue the dollar like crazy so there is a fine

00:29:17.520 line between using the money printer for good and ending some suffering and like providing people a

00:29:24.340 safety net like we live in canada and i'm pretty sure you probably love the ability to have free

00:29:29.700 health care here i know i do i'm willing to pay some level of taxes for that i don't want to pay 70

00:29:34.840 percent for it but i'll i'll pay like 40 50 percent of of my of my uh of taxes for that to live in a

00:29:42.040 good health you know safe environment i mean 40 50 is a bit much i'd rather pay capital gains tax of 25

00:29:48.500 right right um let me take you back to the uh second point because you're talking about the

00:29:54.180 properties um so let's talk about the three main properties decentralization scarcity and censorship

00:30:00.780 resistance can you kind of expand a little bit on why those are significant and why that's so

00:30:06.320 important going going forward for us well yeah so so we see the inflation showing up in the things

00:30:12.260 that rich people want which are scarce assets or what rich people perceive as scarce assets people don't

00:30:17.840 want to be in something that's not scarce they don't want to be in dollars because they can see

00:30:22.500 that they're not scarce and people can just keep printing them like the the the 0.1 like money

00:30:27.600 printers the the central bankers are just going to keep printing them so they're not scarce gold has

00:30:32.640 been money throughout 5 000 years of history because it has these properties scarcity fungibility i mean

00:30:38.620 there's a bunch of prop there's a bunch of properties of money but the main one is scarcity

00:30:41.900 the the one of the problems that i came across with gold recently is that because they continuously

00:30:48.120 mine it um and they keep recovering it during the recycling process obviously um i heard somewhere

00:30:54.820 that the gold supply doubles every 40 years or so and i'm i mean i'm gonna propose something here

00:31:01.940 because when they're done mining earth there's asteroids out there that have rare metals as well

00:31:06.160 they're gonna start mining those so it's not like gold is you know got a finite supply i mean

00:31:11.240 i'm sure there's a finite supply somewhere at some point but it's not that scarce it's not like

00:31:16.200 bitcoin yeah no gold gold is like kind of different than bitcoin and because gold like the higher the

00:31:22.520 price of gold goes the more incentive you have to go find the harder to find gold because if gold goes

00:31:27.660 up to twenty thousand dollars an ounce then it makes a lot more sense to go try to dig it under the

00:31:33.760 under the oceans and try to find gold under the oceans or to try to like go get the asteroid gold

00:31:38.760 there's quadrillions of dollars worth of gold in the asteroid belt so yeah it doesn't make any sense

00:31:43.800 to um to see gold at like a hundred thousand dollars an ounce because then it would just keep

00:31:48.720 incentivizing people to just go find more gold and then you're right it would just continually add to

00:31:53.320 the supply which would destroy the scarcity properties why is the decentralization component

00:31:58.900 so important with bitcoin okay so we talked about how like the growing sort of trend right now that

00:32:05.060 we're seeing online of people getting banned from social media and getting their bank accounts turned

00:32:09.040 off like there was a there was a thing that was a i think deutsche bank or one of those banks was

00:32:13.080 saying that like if you didn't wear a mask in the bank they could just close your bank account

00:32:16.720 like i'm i'm not i'm not i'm not like one of those people that's i'm like not wanting to catch

00:32:23.380 coronavirus and i wear a mask everywhere i go and i'm kind of one of those guys that was like calling

00:32:27.400 the whistle blowing the whistle like hey guys we got to like check this thing out everybody's got to stay

00:32:30.980 home and i was one of those people early on but i'm a privacy rights guy and i'm a free speech guy so

00:32:37.100 when you start seeing companies whether you swear wherever you stand on the coronavirus mask issue

00:32:42.340 you got to stand up for for free speech and privacy because this is a slippery slope when they can shut

00:32:48.320 your accounts off and shut off your access to money because of your political views that's not that's

00:32:53.920 not right like there's a bank in florida that shut down donald trump's accounts they just sorry we're

00:32:59.540 not going to bank with you anymore right like we've got friends too mutual friends and mmt that

00:33:05.140 have had their bank accounts turned off in the last year because they just decided that oh your business

00:33:09.860 is too high risk for us and close down their business account close down their personal account

00:33:14.060 i mean like bitcoin is money for your enemies you know anybody can use bitcoin just like dollars like

00:33:21.500 cash money like it's just because cash money is being used for illicit transactions doesn't mean

00:33:26.960 that cash money is not you know we shouldn't use cash money anymore like money is just a tool and

00:33:32.120 bitcoin takes away the power of centralization and censorship from money which it should be it should

00:33:38.100 just be a tool so you don't need anybody's permission to access the blockchain or or get your bitcoin

00:33:43.120 whenever you want it that's right it's a network that anybody can participate in and the difference

00:33:50.100 between um like like obviously we know that there's a real need for censorship resistance

00:33:55.300 in payments because for the longest time it was illegal to just buy marijuana even in canada people

00:34:01.700 were being sent to jail for buying marijuana or cbd even which isn't even like a psychoactive thing it's

00:34:06.180 just a health oil you you you were going to jail for that so that's that's censorship and that's

00:34:12.680 financial censorship and you should be able to do whatever the hell you want with your own money and your

00:34:17.300 own body as long as you're not hurting anybody else that's like the libertarian sort of belief

00:34:21.080 and bitcoin is kind of like a free market money it's a free speech money and it's a libertarian money

00:34:26.300 it's like the purest form of austrian economics it's hard sound money at the base layer nobody's

00:34:31.780 because it's decentralized there's a hard there's a hard cap at 21 million and nobody's going to be

00:34:37.340 able to collude and and print more bitcoin like it's in the code so so it can't be stopped and that's

00:34:43.360 the difference between bitcoin and any of the other cryptocurrencies bitcoin is the most decentralized

00:34:47.740 and it it runs on the largest network of proof of work and nobody can come together and just decide

00:34:54.580 well 21 million is good and all but we want 23 million we want another 2 million to be printed for

00:35:01.460 another 10 years of supply issuance for the miners that's not going to happen like this thing is so

00:35:07.000 decentralized they can't stop it and nobody can change it it's it's also so decentralized and so

00:35:13.680 public i mean one of the things that i hear a lot of people that get confused about is like oh bitcoin's

00:35:18.280 where all the bad guys use you know to transfer it's like that's the stupidest thing i've ever heard

00:35:22.080 because it's completely public and transparent and available to anybody to see where the bitcoin are

00:35:28.040 in what wallet and what amount you know how much was transferred cash is the dirty money like there's

00:35:33.480 like there's more crime committed with cash than there is with bitcoin right oh yeah and that and

00:35:40.280 not just by not just by like normal petty criminals or even drug dealers or whatever like the banking

00:35:45.600 the bank the big banks in the u.s are pretty much committing money laundering every day with there was like

00:35:52.000 i think it was uh i can't remember it was jp morgan or or one of those big banks basically laundered

00:35:58.240 billions of dollars for mexican drug cartels and they got a little slap on the wrist for it nobody went to

00:36:03.200 jail like they've they've literally laundered and paid they like the big banks have paid more fines

00:36:09.500 than the bitcoin market cap like bitcoin's like what 500 billion market cap the big banks have paid more

00:36:15.280 than 500 billion in fines for illegal activity so the banks are the most corrupt at the top it's like

00:36:21.360 top-down corruption and because they can't stop what the banks are doing it would shut the entire

00:36:27.520 markets down and send us into a global depression they just let them keep committing all these frauds

00:36:32.720 and then kind of slap them on the wrist and let them keep going so in bitcoin there was a chain

00:36:39.280 analysis did a survey every year they do a study to see like what's bitcoin being used for less than

00:36:44.500 one percent of bitcoin transactions are for illicit activities so like people will go on and say the

00:36:50.760 majority of bitcoin transactions are for criminals and shit like that it's just salty no-coiners that are

00:36:55.340 trying to feed you that shit milkshake yeah um okay so so let's go to the next point so you've got here

00:37:01.980 uh how bitcoin isn't immune to the collapse of the everything bubble but will benefit long-term even if

00:37:08.020 there is short-term volatility right like so we're seeing an exodus from cash and other assets and things

00:37:15.240 like gold into bitcoin because people are starting to recognize that it's scarce properties are super

00:37:21.140 important in a world where digital money makes a lot of sense everything's being disrupted by

00:37:25.880 the internet and digital money just a native internet money just makes a lot of sense and also

00:37:31.640 a store of value gold is a 10 12 trillion dollar market cap bitcoin's 500 billion so it just has a lot

00:37:39.060 of upside if bitcoin can compete with gold which it probably will and probably will surpass in my lifetime i

00:37:46.000 expect bitcoin to become a global reserve asset like in the tens or even 100 trillion dollar of

00:37:51.900 market cap so as the wall street and institutions and super high net worth individuals and entrepreneurs

00:37:58.220 and all this whole this new class of investors are coming into bitcoin there's they're recognizing the

00:38:04.500 properties that make it special of censorship resistance and decentralization and the scarcity aspects

00:38:10.120 of it so what that's doing is it's it's it's replacing the old class of like people like me who were who

00:38:17.520 were just interested in the technology and wanted to see it become a hedge against central banks and stuff

00:38:22.080 like that with a new class of investors who are already exposed to the existing markets so if if your

00:38:28.880 listeners probably have stocks and probably have some gold and some real estate and now they want to get

00:38:34.440 some bitcoin well they're the new class of investors that are coming into the market right so if the if

00:38:40.020 if the big event happens where we hit we head into a big market crash and the market melts down

00:38:45.300 i mean your your listeners are probably going to try to sell all the shit they have to to get some cash

00:38:49.760 because they want some liquidity and it doesn't mean that bitcoin is immune now just because bitcoin

00:38:55.080 acts as a hedge against um these these sort of events doesn't mean it's immune to people selling their

00:39:00.640 bitcoin because they're going to want cash until cash starts to hyperinflate in a way that we can see it in

00:39:06.260 our daily lives people are going to still naturally gravitate to want to go to cash in emergencies

00:39:11.140 so in the short term if there is a stock market crash bitcoin is going to drop probably 50 percent

00:39:17.260 just like it did in march 2020 uh 2020 like everything like oil went negative like think

00:39:23.700 things are things are not um uncorrelated at the macro level to that extent like bitcoin is not going to

00:39:31.160 protect you against a black swan event but in the long term bitcoin is going to protect you against

00:39:36.100 the deflation and the devaluation sorry the inflation of money the money supply which devalues

00:39:41.440 your savings so if you're thinking about bitcoin as a long-term bet you'll be fine just buy some more

00:39:48.440 on the dip but people are when people panic they sell everything and they fly they fly to cash

00:39:53.440 that's cool you know when they sell it all then bitcoin's on sale just buy as much as you can afford

00:39:58.620 right yeah look at it um so let's go to the next point um this one's interesting because i was

00:40:04.900 watching an interview last night with michael saylor and he was talking about bitcoin as digital real

00:40:09.840 estate so i love how you included this in the talking points um why you should think about

00:40:15.460 bitcoin as digital real estate which allows you to avoid paying taxes on your bitcoin talk about that

00:40:21.320 yeah so you know if michael saylor illustrated this perfectly on one of the podcasts he was on

00:40:27.660 recently and he he basically said that because it was like ben asker he's an mma mma fighter was

00:40:33.140 asking michael saylor hey man like i've got some gains i've been in bitcoin for a few years i got a

00:40:38.400 i got like a million dollars in gains what should i sell some should i take some profits and michael

00:40:43.540 saylor said you know he he he knows a lot of high net worth individuals and when he talks to them

00:40:50.000 he says hey what's the source of your wealth you know like how'd you guys get your money and

00:40:54.980 usually there's a common denominator is that somebody in their family long ago bought some

00:41:00.820 land in a city somewhere or bought some some real estate and they've just held on to it they've

00:41:06.580 developed it and they haven't sold it and that's the way that you can think about generational wealth

00:41:12.200 just holding your assets and and keeping your assets and they fund the trust and they fund their

00:41:18.660 families and their businesses and stuff by using that asset and taking loans against it like

00:41:24.340 mortgages you know getting a mortgage on your property and using that money to start a business

00:41:29.480 or to to do whatever you want with it so he says that the way he looks at bitcoin is like real estate

00:41:37.180 like prime real estate in manhattan where you know if you had bought a a city block in manhattan

00:41:44.180 100 years ago you'd probably be a billionaire by now and you wouldn't be selling that city block

00:41:49.920 you'd be you'd be taking loans on that you'd be developing it so he that's the way that this new

00:41:55.020 class of institutional money and super high net worth thinks about assets they don't think about

00:41:59.960 it like they're going to buy it and sell it for a 2x they think about it like this is this is an asset

00:42:05.140 i'm going to have in my family and going to hand down to my heirs and if i want to like fund my

00:42:10.300 lifestyle i'll just take a loan on it so i i've done this with my uh people in my friend circle my

00:42:17.480 family i've showed them how to do it i've walked them through it and you can just take a loan with

00:42:22.220 a company like leden.io ledn.io you can open up an account you can fund your account with some bitcoin

00:42:28.820 and then you can borrow against your bitcoin so yeah you don't pay any money you don't pay any taxes

00:42:34.380 when you do that because you're not selling the bitcoin you're just there's some added risk there

00:42:40.520 sorry i'm just going to drop the um name of the site so it's leden.io um amir told me about this

00:42:49.140 a few months ago and i signed up and i use them it's uh it's well insured i think they're insured

00:42:54.060 up to 250 000 on the balances if you have your bitcoin on deposit yeah well i don't know how much

00:43:01.720 they're insured by but like the risk i want to give people the risk profile of doing this right now

00:43:06.680 because i wouldn't be taking loans out on my bitcoin right now a lot of my bitcoin i would

00:43:12.420 take a loan on maybe like five to ten percent of my bitcoin because i'm fully aware i've been in the

00:43:17.520 market for so long that i'm fully aware that this thing is super volatile and like we just saw over

00:43:21.880 the last two weeks it went on an insane tear up to 40 000 and now it's back to 30 000 so this is

00:43:28.940 fair you know standard fair game for bitcoin this is just the way that the market works

00:43:34.360 yeah but it could it could drop like we are at a precipice here there could be some crazy event

00:43:39.540 that causes a real global shock in the markets like this whole wall street bets thing could shut

00:43:44.740 the entire stock market down if they keep if they keep like liquidating hedge funds i mean this could

00:43:50.360 this could systemically crash like the prime dealers the prime brokers and the broker dealers

00:43:55.640 and and could shut down a big bank that that would cause a real drop in every asset including

00:44:01.480 bitcoin so if you've got a loan on too much of your bitcoin you could get liquidated so i would

00:44:06.020 just advise people to like think about this long term don't take too much risk yeah um i like my

00:44:13.020 personal approach with where i stash crypto is i don't keep it all in one place right i've got cold

00:44:17.480 storage i've got some on london i've got some on some other platforms um and i have some of the

00:44:22.800 altcoins and the shit coins which brad doesn't like we're not going to talk about that but

00:44:25.680 um the vast majority of it is i got some shit coins too man i'm not i'm not i'm not like all

00:44:32.080 right we'll talk about that later um but yeah so if you so if you put your crypto on deposit on some

00:44:39.780 of these platforms and you can earn some interest so london pays like 6.25 or something like that

00:44:44.700 um on an asset that arguably will appreciate over time i mean yeah it's up and down it's volatile but

00:44:50.560 over time um its value will be greater um in two years than what it was today probably um you can

00:44:56.200 also borrow against your bitcoin there and you can also go through some other programs they have

00:45:00.680 like double your bitcoin where they basically collateralize whatever you have on deposit and

00:45:04.940 then they'll give you a you know they'll basically double it and you pay the loan payment on it over

00:45:09.480 the course of a year so there's different ways to do this this is relatively new the way that

00:45:13.960 michael saylor had explained it last night and i want to kind of just go over this one more time

00:45:17.640 because i think this is really really important is you don't want to buy me personally i don't want

00:45:23.120 to buy and sell bitcoin take profits and then go back in again like go in and out of it i've done

00:45:27.900 that i sold to my bitcoin back in the fall when it was at like 20 grand so you know i pull out 40 grand

00:45:33.520 okay and then i wanted to buy back in some more it cost me 70 grand to buy the two that i sold so

00:45:38.060 in my view it's kind of stupid like i really didn't need to do that i just you know got a little

00:45:43.600 antsy about the whole scenario with watching the curves and the chart and go ah it's an all-time

00:45:47.680 high what do i do do i take some profits so i let it set look at it as digital real estate look at it

00:45:52.400 like new york city and there's only 21 million city blocks there's never ever going to be any more city

00:45:59.440 blocks and it's prime real estate and it's and it's what people want and you don't necessarily have

00:46:05.380 to buy one city block you can fractionally buy i mean you can buy five dollars worth of bitcoin

00:46:09.980 you know they have these you know satoshis because it's divisible into a bunch of decimal

00:46:14.040 points so ideally you want to buy and hold the real estate over a long period of time and if you

00:46:19.420 need cash then you can borrow against it it's a tax-free way of accessing cash if you need it if

00:46:24.580 you need to buy something but i love that concept of bitcoin as digital real estate i think that as time

00:46:31.040 goes on more and more people will start to recognize that as its true value um let's talk about dollar

00:46:37.740 cost averaging into bitcoin um so your note here is why dollar cost averaging into bitcoin is uh only is

00:46:46.120 the better strategy instead of investing in or trading altcoins yeah so so like you know the the real big

00:46:54.400 money that's coming in now there's there's like an 80 trillion dollar or say 60 60 trillion dollar

00:47:02.440 wealth transfer that's going to happen from the the really high net worth like boomers and silent

00:47:06.960 generation folks down to millennials and gen x's and gen z's and a lot of them are going to start

00:47:14.040 allocating to bitcoin even before they die and before they like transfer the wealth down a lot of

00:47:19.720 the family offices and stuff they're going to be buying bitcoin and looking at it like that looking at it

00:47:25.240 like like this is the thing that like you know it's not crypto it's bitcoin the the super high net worth

00:47:31.520 like individuals that are being influenced by folks like stan druckenmiller and and michael saylor and

00:47:37.720 paul tudor jones like these bellwether brand names these guys are like thinking a long-term game they're not

00:47:47.000 thinking about making some quick buck with trading an altcoin or diversifying into an altcoin because they

00:47:53.420 recognize that that diversifying is not it's not diversifying within an asset class it's diversifying

00:48:00.500 across asset baskets so like they will diversify into gold or stocks or bonds or bitcoin you know or

00:48:12.440 real estate it's not like they want to want to start diversifying you know buying bitcoin as a hedge

00:48:19.120 against their other positions and like a hedge against inflation and then think oh well now i have

00:48:24.340 to diversify against bitcoin inside of the crypto space they look at bitcoin like digital real estate

00:48:30.980 and like it's the winner take all and it's the one that has the lindy effect and the brand recognition

00:48:35.780 and the best chart over the you know last 10 years it's it's the most decentralized and it's the most

00:48:41.920 likely to resist government takeover so no other altcoin has the ability to resist a government

00:48:50.560 like they're all centralized points of failure in in every other altcoin especially ethereum the

00:48:55.940 number two cryptocurrency it's centralized to consensus and the ethereum foundation and they've

00:49:04.060 already kind of set a precedent that they're willing to roll the chain back and they're willing to do

00:49:08.100 forks for rescuing people's money they've set a precedent that it's not immutable and it's not

00:49:15.140 censorship resistant now over the last three years they've tried really hard to simulate decentralization

00:49:21.080 to make it appear as decentralized as bitcoin but the main key factor there is that not everybody can

00:49:26.480 run a node and there's a hundred thousand full node runners of bitcoin who enforce the rules of the network

00:49:31.520 so they can't shut down bitcoin from that perspective and they probably couldn't shut down

00:49:37.420 shut down ethereum from that perspective either but what they could do is pressure the centralized

00:49:42.440 points of failure to change to change how many ethereum there are or to censor transactions like

00:49:49.620 if ethereum starts to process transactions for dark markets or something like that

00:49:55.380 um they could they could if they really wanted to or say like what's happening now on ethereum is the

00:50:01.220 decentralized finance stuff this is all illegal securities and the regulators have come and come

00:50:07.100 down hard on this they've already given guidance that this stuff is all legal securities and they're

00:50:11.140 already taking ripple to like to ask over this and they're gonna have to shut down ripple and all

00:50:15.480 the exchanges are delisting ripple um they've given a lot of guidance like a lot of this shit is just

00:50:20.760 illegal securities and and the regulators aren't asleep it's just they're they're taking slow action

00:50:26.120 and uh they take sometimes years to to go into effect and to take action so i would say that if you're

00:50:35.880 considering like coming in now and you're thinking oh yeah i like bitcoin so so maybe i convinced like

00:50:41.300 20 that 20 that bitcoin is going to zero maybe i convinced them okay value here like i'll take a

00:50:47.880 five percent bet on this i'll put a little slice of my portfolio in this thing and just just a tail

00:50:52.640 hedge bet just in case inflation keeps going like they saw your chart and they were like holy shit that's

00:50:57.560 a lot of money that they're printing so maybe i'll buy some bitcoin because it's scarce well the next

00:51:03.160 question they're gonna see is like okay how do i buy bitcoin they'll go to an exchange and they'll

00:51:07.160 see oh there's ethereum and there's litecoin and there's ripple and there's all this other shit

00:51:11.400 and they're gonna probably think oh well maybe i'll buy one of these ones because they're cheaper

00:51:15.880 because bitcoin is 32 33 000 but an ethereum is only 1400 bucks and a ripple is only 25 cents so so this

00:51:23.400 one's better and and this is unit bias like unfortunately people just just you know they don't realize that

00:51:30.100 you got to factor in a lot of different things not just the price so ethereum and ripple and and

00:51:37.600 monero and like all these other coins they they they're cheaper but their market there's a lot more

00:51:45.080 supply and they don't have the same scarcity as so it's a real hard thing for people to understand i

00:51:50.460 guess originally like initially it's like you know don't just look at the number you know that's not

00:51:55.660 really important you can buy five dollars with a bitcoin like you said rich you don't you don't need

00:51:59.460 to buy a whole bitcoin so you can start with a small amount of bitcoin you gotta you gotta fundamentally

00:52:04.920 understand why bitcoin is valuable and then when you try to apply the same calculations to the altcoins

00:52:11.460 nothing holds up against bitcoin um and and the main thing is that the same mentality that will that

00:52:19.040 will get you wrecked buying altcoins will get you wrecked trying to trade bitcoin so don't try to trade

00:52:24.840 bitcoin either like unless unless you have the mentality where you're willing to set some rules

00:52:29.880 for yourself and you're willing to lose all the money that you're going to put trading and you're

00:52:33.820 not going to be over leveraging yourself and trying to become like a wolf of wall street trader or

00:52:37.860 something like that just if you wouldn't go do this with penny stocks or if you're not on wall street

00:52:42.580 bets buying options for for over leveraged short sold stocks don't buy altcoins and just don't trade

00:52:48.880 it the coin so if you're not willing to put in the work and and really learn what you're doing then

00:52:53.800 don't do it and like i feel like anybody that's pushing altcoins without without like even if

00:52:59.820 people are pushing altcoins and they're educating people about the risks and and how to do it you're

00:53:06.080 still getting people wrecked because people are bad traders most people they don't naturally come to

00:53:11.580 trading they shouldn't be trained to be traders because even if you're right and even if you get a

00:53:16.700 2x over just buying bitcoin by trading altcoins you're not going to sell the top i mean you're most likely

00:53:22.880 going to sell too late and then you'll already then you'll be back in the same position you were

00:53:28.380 you just wasted all your time and created a crazy tax burden for yourself which is what most of the

00:53:33.120 people in 2017-18 did so just don't bother like michael saylor's not messing around with altcoins

00:53:38.900 paul tudor jones is not messing around with altcoins why would you like it's it's not it's it doesn't

00:53:44.040 make any sense you're you're more statistically likely to get wrecked by the professionals and this quant

00:53:49.680 traders and the insiders and the vcs that have massive pre-mined bags of this shit dumping on

00:53:55.720 you when the markets turn then you are likely to actually make more bitcoin so you got to measure

00:54:00.700 your portfolio in bitcoin that's the thing like bitcoin is is going to be sucking in a lot of

00:54:06.180 trillions of trillions of dollars of wealth over the next five years why are you going to measure in

00:54:10.700 u.s dollars measuring bitcoin yeah there's um there's a lot of guys that i know that like

00:54:18.260 cryptocurrency and they understand bitcoin but they go for the shit coins like they go for the altcoins

00:54:24.220 because they see the potential to 5 000 x their money instead of you know 200 times x their money

00:54:32.220 over the same period of time right um what what's a percentage do you hold of bitcoin versus the altcoins

00:54:39.960 i'm about 85 percent bitcoin and uh i i got some i dabble around with it because i got a lot of

00:54:48.540 friends and stuff in this space and um you know i invest in some of the projects like how do you guys

00:54:54.040 think i know how shady this shit is it's because i know all the people making it and i know i'm in the

00:54:59.400 degenerate trading rooms where they're talking about it all it's like it's not all about the

00:55:03.540 technology it's about it's the same it's the same as the vc game these vcs get super sweet pre-seal

00:55:10.040 pre-sale deals like pre-seed round deals and seed round deals they get all the value accrual because

00:55:15.640 they get the shit at cheap cheap prices and then they dump it on people at later rounds that's that's

00:55:21.400 fine if you know what the game is i mean sure you can you can do that but that's exactly what

00:55:26.660 cryptocurrency is it's just it's the same thing that goes on on wall street and in the vc world

00:55:31.380 like bitcoin is a totally different thing than than this yeah there's there's 8 351 cryptocurrencies

00:55:39.380 currently listed on coin market cap um there's only one bitcoin so there's a lot so there's thousands of

00:55:46.800 things going on there yeah and a lot of people hoping that one of those other things will

00:55:53.660 become bigger than bitcoin which that's the thing that pisses me off the most is like so i don't mind

00:56:02.880 if someone's an altcoin trader or a bitcoin trader or a penny stock trader or a wall street bets trader

00:56:07.820 you know it's like you can buy tesla all you want i'm gonna celebrate you when you make money

00:56:11.680 the thing that i don't like to see is people who are fooling other people into thinking that these

00:56:17.200 other things are the same as bitcoin because they're not like there's going to be a time when the bubble

00:56:21.280 pops and maybe bitcoin even goes down a lot but i don't think it is next i don't think like bitcoin

00:56:28.260 doesn't go down as much as the altcoins altcoins go down like negative 96 percent like that you can

00:56:33.800 lose a lot more money messing around with altcoins yeah um i got a bunch of notes here that i want to

00:56:41.140 hit on and um i've got um you know for those of you guys right now that are watching this like okay so

00:56:46.780 how do i get started i i pinned in the top comment um the major exchanges where you kind of get the

00:56:53.300 ball rolling so let me just scroll down over here i can't remember where i put them there they are

00:56:58.300 so for a basic exchange in the u.s i linked uh coinbase these are all affiliate codes by the way

00:57:05.340 so you know if you set up it throws me like 10 bucks or something like that but um so for a basic

00:57:10.860 exchange in the u.s coinbase is probably the easiest in my view don't use it in canada because

00:57:14.540 the charges are way too high if you're in canada a decent basic exchange i'd recommend using bitby

00:57:19.980 uh again there's a link for that if you want a more intermediate exchange in the u.s um so you can

00:57:26.140 get access to other coins or put coins on deposit to earn interest i'd say go to binance and i'm gonna

00:57:33.420 let you talk about uh international payments with strike there's a link there also for uh that company

00:57:39.480 which uh brad knows a fair bit about um i gotta step out for about five minutes to um do a little

00:57:46.280 bit of side work i'm gonna put brad on full screen here and just mute my camera but i will be back

00:57:51.520 there's a whole bunch of questions on the right hand side here too brad that would keep you busy

00:57:54.880 for at least 30 minutes um if you want to hit some of those do you have them on the right hand side of

00:58:01.140 your stream yard i don't see them private chat or comments oh comment okay lots of stuff there

00:58:07.760 yeah so there's a lot of stuff there that you can hit on people ask questions about things like

00:58:11.820 monero and hex and apparently a fella that you once hit on for money to do psycho ranger movies

00:58:18.000 or something whatever that was um i'll let you kind of go through that and and then spend a little bit

00:58:25.540 of time on the international payments uh component of uh strike okay cool yeah all right so i'm gonna set

00:58:33.960 brad up on full screen and i'll be back in a few moments um so yeah so strike is an app that i i

00:58:41.900 highly recommend everybody check it out i think rich said that it was in the youtube comments or

00:58:46.940 something there if you go on my twitter profile it's pinned a pinned tweet as well i'm gonna give

00:58:52.140 everybody five bucks who uses my link for strike um i'm not like a shareholder in strike and i'm not

00:58:59.140 really getting anything out of this except for that we don't have any good payments apps in canada

00:59:03.580 we don't have venmo or or anything like that so we don't have cash app so i just really want to see

00:59:09.180 strike launch and they're giving priority to launching in the countries that have the most

00:59:14.320 referrers so i'm trying to become the number one referrer for strike so that they can open up the

00:59:19.360 freaking app in canada because we got no good apps um but strike is strike is like everybody should

00:59:25.580 like people are sleeping on on bitcoin and lightning network in the crypto space a lot of um

00:59:32.020 a lot of people are like trying to sell you altcoins that will say um oh bitcoin's not fast

00:59:39.420 enough or bitcoin's too expensive to use or bitcoin doesn't use is not used as money anymore like

00:59:43.960 people will shill this this deceptive false narrative that bitcoin and bitcoiners and bitcoin

00:59:49.880 maximalists don't want bitcoin to be used as money it's ridiculous like they're just trying to sell you

00:59:55.480 some kind so use strike use lightning network bitcoin scales out on second layers in a way that's um not

01:00:04.840 linear but like you know it's it's parabolic like the lightning network can scale to handle billions

01:00:12.140 of people using bitcoin and we've also got other layers too it's not just lightning network there's

01:00:17.900 side chains um there's even you know you could even say centralized exchanges are scaling layers for

01:00:23.840 bitcoin they're not as they're not the same uh ethos as base layer bitcoin but um strike is strike is

01:00:32.560 built by this kid uh jack mallers and it's going to be like a it's like you can open up a bank account

01:00:39.500 with it you get your own bank account um fdic insured bank account if you're in the u.s and you can

01:00:46.180 accept your pay your your paycheck into your strike account and then you can send money to anybody in in

01:00:52.960 200 countries as they roll them out over the next two quarters to use bitcoin and you can use it and

01:00:58.920 you can dominate denominate it in dirty fiat dollars so i can send you a hundred dollars worth of

01:01:04.640 canadian bucks to you know if you're in nigeria and you want to accept you know naira or whatever

01:01:10.460 i can do that so everybody should check out strike um use my link and i'll give you five bucks when they

01:01:17.340 go live uh just send me a request like strike me for five bucks and i'll send you five dollars of bitcoin

01:01:23.340 so we've got a few questions here

01:01:28.720 it says facebook user once once asked me for money for a psycho forest ranger movie that's funny that's

01:01:36.260 from a while back i don't know who the facebook user is

01:01:38.620 uh josh asked where does bitcoin derive its value i already explained that hopefully

01:01:45.340 jeff jones said it seems like the price is already high way too high for me to jump in

01:01:53.980 that's why that's why dollar cost averaging is a good strategy

01:01:58.480 um i'm buying i'm buying the dip i'm buying every single day since we broke the all-time high at

01:02:05.320 twenty thousand dollars i've been buying more bitcoin i buy every time there's a new high made i buy every

01:02:09.820 time there's a a dip in the price and i buy every time that somebody triggers me on twitter

01:02:14.560 chilling a shit coin so i'm buying bitcoin a lot

01:02:18.180 and i'm dollar cost averaging in so i think like jeff asked you know it seems too high well if you

01:02:26.400 think bitcoin seems too high then every other cryptocurrency is too high because they're all

01:02:30.500 way overvalued um and and think about the value that bitcoin can can suck in so gold is like a 12

01:02:37.760 trillion dollar market cap uh bitcoin is a 500 600 billion dollar market cap in order for bitcoin to

01:02:46.180 become the same level of uh value storage as gold which is really what bitcoin is competing with

01:02:52.940 bitcoin has to be like 500 000 to a million dollars so for the next three to five years that big that gold

01:03:02.300 is going to go up 2x which it probably will then that'll put it at about a 20 trillion dollar market

01:03:07.180 cap and if bitcoin is like matching gold as a as a digital form of real estate and a digital form of

01:03:13.560 store value like gold like a scarce commodity it's going to be 20 trillion dollars too it's going to be

01:03:19.160 up there with gold most likely that's what i'm betting on anyways so i'm you know i i'm i'm taking a lot

01:03:26.260 more risk than i advise other people to take um i'm i'm pretty heavy into my into my portfolio

01:03:32.840 percentage allocation uh you know basket of bitcoin uh i own more bitcoin as an asset class and i have

01:03:39.740 like real estate and cash and stuff like that in stocks so i would suggest that people like if you

01:03:44.820 want to just conservatively just start dollar cost averaging in just set yourself a goal like owning

01:03:50.600 no bitcoin is the worst move that you can make even if even if i'm wrong and everybody else is wrong and

01:03:56.500 michael saylor's wrong and bitcoin doesn't go to like you know become a an exit hatch that the the

01:04:02.480 world's 200 trillion dollars of sort of value wealth can can flow into bitcoin and hold it there in a way

01:04:08.180 that's decentralized and un uh inflatable if that doesn't happen then you know make sure that you're not

01:04:18.060 going to lose a lot so just do like five percent or something i got some uh questions here i want to

01:04:23.440 throw at you um thanks for uh thanks for running the show for that time by the way um so here's one

01:04:31.060 from brad and he says uh what would stop bitcoin from being manipulated through the paper market if

01:04:36.640 it's adopted in a large number of etfs similar to how gold price is depressed through the unbacked

01:04:42.620 trade of etfs like iau bar and gldm well because because the bitcoin uh blockchain is trans is a

01:04:54.000 transparent ledger we can actually kind of keep them accountable because if they're this is called

01:04:58.940 rehypothecation and it's it's pretty much and the banks are doing it and it's pretty well known that

01:05:05.280 the banks are manipulating the markets by selling paper shares of gold that that and silver and stuff that

01:05:11.920 they don't actually have access to and scotia bank and deutsche bank and and like a couple other

01:05:18.460 banks were fined billions of dollars for market manipulation in the gold markets already this is

01:05:24.080 not like they do this this is actually the same reason why why uh game stop is going crazy right now

01:05:31.600 because these these wall street raccoons are short selling nakedly short selling shares meaning that

01:05:39.280 they're selling shares that don't exist and the the the market makers like citadel the company that

01:05:46.700 bailed them that bailed out melvin capital the company that went bankrupt because of reddit citadel

01:05:53.520 is the market maker and they are supposed to only sell shares short that exist right you think that's

01:06:00.860 what that makes sense like same as gold you're not supposed to sell gold certificates for gold that

01:06:05.320 doesn't exist just like you're not supposed to short sell shares of a company that don't exist

01:06:10.240 but while but you know wall street bets and these analysts over there's these degenerated analysts

01:06:16.920 and even michael burry the guy from the from the big short the guy that shorted uh the the collapse of

01:06:23.120 the housing market they he identified that this short selling is happening this naked short selling

01:06:29.120 so he went long on game stop in 2019 and now wall street bets has just kind of like made the prophecy

01:06:34.600 come true and they also picked up on it they said this is fraudulent activity screw the screw wall

01:06:40.180 street we're gonna like pile into this and and and liquidate all these raccoons that are like

01:06:45.300 stealing money and driving a company to zero for no good reason with with shares that don't exist

01:06:50.740 so they piled in and they exposed the fraud and like now they're caught with their pants down

01:06:56.660 and and they have to shut the markets off because they they can't close they can't cover their

01:07:00.840 positions because the shares don't exist so it's kind of difficult for that to happen on a

01:07:06.040 decentralized public ledger though yeah that's the reason why they they would be less likely to do

01:07:12.780 it with bitcoin because everything's transparent you can everybody can see how much bitcoin there is

01:07:20.420 and once we see that there's actually we don't know how much gold there is like there's no record

01:07:27.020 somewhere some database that shows us exactly how much gold there is like the central banks don't

01:07:33.320 even know how much money exists they stopped reporting the numbers of of the money supply because they

01:07:38.960 lost track of it they don't know how much money exists anymore you always know how much bitcoin exists

01:07:44.640 and where it is yeah um got another question from brad he says at what point sorry at what price

01:07:51.060 point or market size will government financial institutions take a renewed interest in crypto

01:07:55.820 regulations it seems like we're already there when exchanges are being blocked at the u.s state level

01:08:00.300 well that's the thing about censorship resistance of why so important it's resistant from regulators if

01:08:08.580 you've got your own bitcoin running on your own computer or in your own phone they can't shut that off

01:08:13.080 unless they shut off the freaking internet so they have to like they have to shut off the internet

01:08:17.680 itself in order to stop bitcoin right uh rocco says where to get started to learn the basics um just

01:08:25.360 just buy just you know rocco you're in canada go to a bit buy with that link below buy some bitcoin

01:08:31.780 you know whatever you want you want to buy a hundred bucks thousand bucks hundred thousand that's where you

01:08:35.760 just get started you just buy it um there's there's fundamentals um behind bitcoin beyond what we've

01:08:42.660 talked about there's some really good documentaries a few of them are on youtube is there one that you

01:08:46.940 would recommend everybody should watch to kind of like get the you know like the basics of bitcoin

01:08:51.940 well everybody's kind of different i'd say that a good a good resource for folks would be uh i'm

01:09:00.160 actually building something right now called bitcoin sherpa and it's it's going to be like the start

01:09:05.320 page for buddy to to learn about bitcoin because everybody has different questions about bitcoin

01:09:10.980 you know you remember clarity.fm rich yeah yeah i'm still on it i still use it so i'm gonna i'm

01:09:16.820 building like the clarity.fm for bitcoin and it's going to basically be just like a really quick way

01:09:23.400 for someone to just type in what they're thinking and what they want to learn about because there's

01:09:28.080 so many things there's so many starting points for learning about bitcoin like he might he might

01:09:32.400 actually want to know how to buy a million dollars worth of bitcoin you know we don't know like he might

01:09:37.140 want five bucks worth of bitcoin he might want to start becoming a bitcoin developer he might want

01:09:40.940 to integrate bitcoin with his business he might want to start educating you know about bitcoin or

01:09:45.560 learn about it for his kids there's so many different questions here so i'm building bitcoin

01:09:50.840 sherpa.com to be this the thing that just distills like what are you looking for and the and point

01:09:56.640 everybody into the direction of which rabbit hole they should go down and who to follow to get the

01:10:01.260 information because there's so many bitcoin sherpas out there that are just evangelizing bitcoin and

01:10:06.900 educating that i think we need a centralized spot where people can just find their tribe you know

01:10:13.860 in bitcoin so so i would just suggest for him to um check out a couple of podcasts just to start

01:10:19.820 subscribing to um what's a good podcast well peter mccormick has a really good podcast what bitcoin did

01:10:25.860 okay and i have a podcast magic internet money so i've had two really good podcast episodes i think

01:10:33.920 everybody should listen to willie woo he's like one of the biggest analysts in the space he was just on

01:10:39.300 my last episode and then um preston pish he has a podcast we study billionaires and with the investors

01:10:45.760 network and he was about four weeks ago so those two episodes are really great for anybody that's got

01:10:50.780 an investment mindset to get started okay guys you can look those up um another question here uh bitcoin is

01:10:58.380 in correction territory down 25 quick look at the charts uh blah blah blah he says do you expect to

01:11:03.720 see twenty thousand dollar bitcoin price uh where is the floor on the current downward move i love how

01:11:09.620 people want you to peer into your crystal ball in the future so speculating into like what do you think

01:11:17.560 you know bitcoin's gonna bottom out at before i think it's like i think we've seen the bottom already i

01:11:23.300 think the bottoms the bottoms in and it just keeps bouncing off of that 29 something level um so i keep

01:11:30.300 buying it every time we touch it i buy it so i'm confident that that's going to be the the bottom

01:11:37.200 for this sort of macro structure of the of the of the bull market because it's not like we've entered

01:11:42.480 into a bear market it's just cooling off a little bit and it feels more to me like we're at about

01:11:47.400 two thousand dollar bitcoin in 2017 like after we broke the all-time high of 1200 we shot up and then

01:11:55.240 we kind of like corrected down 25 30 percent and then we shot up again and we corrected like 40 percent

01:11:59.860 and then we went to two thousand dollars and it kind of like chopped around and was going up and down

01:12:05.180 like this is normal activity for bitcoin but then it rocketed parabolic thousand from like you know

01:12:11.720 four or something like that i feel like where we are right now is more like we were like in 2017 when we were at

01:12:17.400 two thousand dollars not 20 000 so i think we're going to 250 000 or something in the next say 12

01:12:23.880 months and i don't i mean maybe we'll see 20 000 i'd say it's a 50 chance but i'll buy it if we get

01:12:29.960 there if you see it mortgage the house and buy it man i i might actually like i think i might actually

01:12:35.360 take a loan on one of my properties and just buy bitcoin with it um what do you think of tone vase by the

01:12:41.380 way i've been watching of his um you know cast and he seems to have some interesting um views on it

01:12:48.580 well tone vase is is like a total og like um trader guy bitcoin trader i like tone because he's not he's

01:12:58.700 not just a raw ross perma bull he's got good technical analysis and he's a good contrarian when it comes to

01:13:05.700 considering the bearish case for for how it could drop the 20 000 or you know a little even further

01:13:12.200 sometimes so he's a good guy to watch for just getting one side of the story of of the price

01:13:18.880 action i don't typically watch him though because i'm not really a trader i don't really pay attention

01:13:23.400 to that stuff i just i buy i when when when we're in a bull market i'm just like you know this is going

01:13:28.300 to keep going they're not going to stop printing money biden's going to keep printing trillions of

01:13:32.520 dollars like this money is going to keep flowing into other alternative assets so i'm just going to

01:13:36.680 keep buying so i just spelled it out there just so you guys can uh look it up but he's got a youtube

01:13:41.940 channel it's just tone t-o-n-e and then v-a-y-s i find it's interesting to kind of watch when i'm like

01:13:46.640 looking to throw some money into it because i'm like okay you know are we at the bottom what does

01:13:50.060 this guy say about it so he's interesting from the chart perspective is why i watch it um willy woo

01:13:56.160 is definitely the best that there is and willy has a sub stack um youtube channel too or

01:14:01.720 no he doesn't do youtube he he goes on tones show sometimes and he went on my show okay got it um

01:14:09.420 there's another one here so somebody was asking is there a tfsa for crypto at all in canada the

01:14:16.300 roth ira in the u.s can hold crypto via i trust capital but have not heard of any tax-free investment

01:14:22.200 options so you can buy i think it's qbtc

01:14:25.660 yeah uh 3iq rsp and tfsa and i think there's another one as well i iq3 or something like that

01:14:37.120 3iq is the company that that owns the t the gbtc

01:14:41.000 so qbtc i'm just going to put in the chat yeah it's qbtc.u

01:14:46.940 if you want to buy it and you can put it in your tax-free savings account your registered

01:14:52.040 education savings account for your kids or or your rsp the best strategy there is to max out

01:14:58.100 the tfsa first before you go into the retirement accounts because the tfsa is tax-free where the

01:15:04.240 retirement accounts are tax-deferred um and i'd also make sure that you know if you're going to buy

01:15:09.380 bitcoin and you're going to put say five percent of your your net worth into bitcoin and slowly dollar

01:15:14.080 costs average in no matter what the price is that's the best strategy i wouldn't put it all

01:15:20.080 into the tfsa because the real value of bitcoin is owning real bitcoin so i i definitely recommend

01:15:26.580 that people take advantage of the tax-free savings account and qbtc i'm actually an investor in 3iq like

01:15:32.380 i invested in their last round so i'm a bit biased there but i own the qbtc and i'm an investor in

01:15:38.760 3iq but i also tell people buy bitcoin don't buy 3iq qbtc thing like buy bitcoin first and then you

01:15:46.400 can start messing around with the paper bitcoin stuff because that's not real bitcoin sure it's

01:15:50.660 it's backed by bitcoin but you won't if if they if they do a new 6102 like like in 1933 when they

01:15:57.720 made it illegal to own gold and they do do that again and make it illegal to own assets and start

01:16:02.900 like taxing on you know unrealized gains and making you turn in your assets and shit like that

01:16:08.820 if you have qbtc you don't have bitcoin so you know that's a bit conspiracy or not conspiratorial but

01:16:16.940 paranoid i guess as it stands right now you can't buy actual bitcoin under your rrsp or or tfsa the only

01:16:25.480 way you can do it is is by qbtc yeah got it okay well there is another one too but i can't remember

01:16:31.260 the name of it right now well there's also the grayscale ones but they've got pretty high funds

01:16:35.140 or uh fees too don't they yeah i'm actually an investor in another one called valkyrie

01:16:41.220 which uh tone vase is good friend leah wald she's on his show quite a bit she launched that recently as

01:16:49.220 well and they've got a trust that's starting up in canada like uh that you can put in your tfsa too

01:16:53.400 um so yeah there's there's a bunch of them coming all right um i got another like 15 minutes left

01:16:59.960 you're you good to do another 15 yeah all right let's see what else we can hammer out here uh

01:17:06.280 ways to accumulate more bitcoin without trading or mining it that's a question from peter

01:17:10.820 um so the biggest the best answer there is to the best answer there is to just kind of like learn about

01:17:21.860 sound money and austrian economics and you know somebody somebody that's really good there is robert

01:17:28.620 breed love he's he's been doing a lot of philosophical sort of writing and going on

01:17:32.500 podcasts and stuff um same with same with um preston pish and the investors network like those guys

01:17:41.560 just i think if you have a better foundational understanding of value and like thinking long

01:17:47.340 term then you'll slowly stop thinking about spending your money on shit that doesn't help your future

01:17:54.000 self and stop being consumerist and and and use your time more efficiently and then put all your

01:18:01.620 excess resources into things that are going to help your future self and and you know you'll thank

01:18:07.040 yourself later because a trader mentality and learning about things like that just makes you kind of

01:18:12.140 like a quick to react to things and consumerist and you want to buy all that stuff i mean that's

01:18:18.240 fine for some people but for people who are just starting i think it's more important to get a

01:18:22.700 foundational understanding of why things are valuable and then understanding why bitcoin is

01:18:27.720 valuable and then like just earn dollars and put them into bitcoin or ask for payment in bitcoin for

01:18:36.200 your products or services if you can yeah there's no easy answer here like the best thing that you can

01:18:41.420 do is like buy bitcoin or start a business and and use your use your your money to buy bitcoin with with

01:18:49.120 your business okay here's another question from pete he says uh what's the amount of bitcoin one must uh

01:18:55.580 one has to have to be considered a bitcoin one percenter and how that might change within the next

01:19:01.260 10 years so there's some whales out there so if you guys don't know what a whale is that's that's

01:19:07.640 somebody that holds a large amount of bitcoin like michael saylor would be an example of something like

01:19:12.860 that or sorry his company microstrategy would be an example of that so um it's kind of an offside

01:19:17.780 question but like what amount of bitcoin do you have to have to be considered like i think like

01:19:22.160 anything over five is considered you know like the top three percent isn't it i would i would say that

01:19:29.420 um if you have 0.1337 bitcoin then and you hold that until the year 2030 then you'll be in the global

01:19:38.640 one percent 0.337 0.1337 bitcoin if you if you buy and hold 0.1337 bitcoin until 2030 then you'll

01:19:51.080 probably be in the global one percent i'm talking about like you know global one percent not the u.s

01:19:55.900 one percent so so that's a target that that's about four thousand two hundred seventy eight dollars

01:20:01.300 yeah like hold that that you'll never sell that's like the michael saylor strategy of i'm going to hold

01:20:06.920 this for my heirs and i'm going to take loans on that you know if bitcoin goes to like 10 million

01:20:10.920 dollars that's a lot of money like that's going to put you into the global one percent yeah okay um

01:20:17.340 what are the legal prerequisites for large cap companies and funds to invest in bitcoin

01:20:22.460 give the answer to that it's kind of an advantage yeah yeah so so this is if you go to micro

01:20:28.640 strategies website right now they're actually going to do a conference for free for and for like

01:20:33.320 thousands of public companies cfos and treasury secretaries and all this stuff to learn exactly

01:20:39.520 about that so there is a he spent millions of dollars going through regulatory filings and

01:20:45.600 figuring out how to integrate it with his bookkeeping and do disclosures with the sec and do all that

01:20:50.060 stuff to to be able to use bitcoin as a treasury reserve asset because he's a publicly traded company

01:20:54.900 and then he's giving away like the cheat codes to this for free as well guys so

01:21:00.660 you can either go to his website or you can attend the conference if you have a company in the u.s and

01:21:05.420 you're sitting on fat uh you know stacks of cash i guess um and if people want like i also am

01:21:12.380 connected with a couple of otc brokers who can facilitate that so feel free to dm me on twitter

01:21:17.480 if you really are serious about like putting or 10 or 20 or 100 million into bitcoin i can point

01:21:23.060 you in the right direction so i can buy a hundred thousand dollars worth of bitcoin through a friend of

01:21:28.240 brad it's it's you know he's a friend but he's he's a registered he's a regulated otc broker

01:21:34.380 um my buddy yeah my buddy will sell you a hundred million dollars of bitcoin uh let's see what else we

01:21:41.680 got here man so um okay um b so bitcoin is considered to be in its development phase which

01:21:51.020 is considered to take about 10 to 15 more years is is is bitcoin in its development phase

01:21:57.620 or do you think it's past that now i i think that we're out of the you know initial bootstrap

01:22:03.760 phase but we're not we didn't cross the chasm yet so i would say we're still kind of in the early

01:22:09.720 adopter phase okay um what are the scenarios concerning its price or rather value change

01:22:15.240 when bitcoin will be fully adopted and will make overall investors money to leave the boat

01:22:20.280 leave the boat i guess they're leaving like this convention right well that's what that's what's

01:22:25.660 you know what what we talked about earlier about valuing things in rational sane terms we need a base

01:22:32.440 unit of account that can't be manipulated by a central banker or somebody to to bail out a toxic hedge

01:22:40.020 fund that should just go under so bitcoin as a as a base measuring stick and a global reserve currency

01:22:49.560 that nobody can mess with is going to allow tens of trillions of dollars of value to flow into the

01:22:57.960 system and then once you've got bitcoin to the point where it's like competing with gold as a global

01:23:02.880 reserve asset and dollars as a global reserve currency dollars are like 20 trillion or so gold is

01:23:11.900 going to be 10 to 20 trillion like when bitcoin's 10 to 20 trillion even when it's five trillion

01:23:17.560 um i'd say a hundred thousand dollar it's about two trillion dollars market cap when we're into the

01:23:25.940 multiple trillions of market cap with bitcoin it just starts to become an avalanche and you start

01:23:33.100 to see a lot of fomo from people who are watching their balance sheets evaporate by sitting in dollars

01:23:38.620 which are being inflated away it's going to cause mass exodus of dollars and gold and real estate and

01:23:45.460 stocks especially stocks because they're so overvalued they don't make any sense at the current

01:23:50.220 prices that's going to all be sucked into bitcoin and then once you get to a point where the the

01:23:55.980 sovereign wealth fund of like dubai or something like that that manages 900 billion dollars can think

01:24:01.660 about putting 100 billion dollars and parking it in bitcoin that you know they need the asset to be

01:24:07.860 worth multiple trillions of dollars before they can move 100 billion in and i i know the the son of the uh

01:24:13.980 the manager of the abu dhabi sovereign wealth fund through for through bitcoin and i was talking to

01:24:18.740 him in 2017 and saying we need this thing to be trillions of dollars before we even look at it but

01:24:22.720 we are looking at it like we're not going to just buy 10 million dollars worth of bitcoin what's the

01:24:27.140 point we have 900 billion under asset like that's not going to move the needle so it's actually more

01:24:32.540 it's more enticing for people like that are like the real money masters of the universe to start using

01:24:39.400 bitcoin because they need the liquidity to move trillions of dollars into it so his question is

01:24:45.040 a good one which is like well you know so what if that happens well then isn't everybody going to

01:24:49.540 start selling for stuff well that's an efficient market and then we will have a sane way of valuing

01:24:55.540 companies on the s p 500 because measuring things in dollars makes zero sense measuring the value of a

01:25:01.880 stock in an asset that's being printed like 20 a year it doesn't make sense everything is at a whack

01:25:08.540 so once we get to a sane monetary accounting standard where like you can account in something

01:25:13.460 that's not being super devalued on purpose then yeah sure people will start like me and like preston

01:25:20.360 pish and and and like you probably rich will will start to find investing in things now because

01:25:26.560 it makes sense to like move out of bitcoin and move into a company because you'll it'll fundamentally

01:25:32.820 make sense the earnings will make sense now it's like 100x pe ratios for a stock makes

01:25:38.380 no sense at all okay so two last questions for you brad um let's talk about shit coins alt coins

01:25:45.020 whatever we want to call them what's your what's your favorite that you hold because you said you

01:25:49.860 got 85 and bitcoin so you obviously got some alts so what's your favorite that you're leaning on and

01:25:55.300 what's the one that you despise well i don't really want to talk about any of my favorites because

01:26:01.280 that's kind of what i don't like about this industry is like people talking about their favorites

01:26:05.380 i'm taking degenerate random investment bets like i don't think anybody should be doing what i'm doing

01:26:10.940 i'm willing to lose completely burn this this like bet that i've got so i i don't really want to talk

01:26:17.580 about what i'm in because even what i like as a technology what'll happen is like somebody's been

01:26:22.200 asking about richard hart and hex this whole time that's what ends up happening because i went on

01:26:26.440 richard hart's show a couple of years ago and kind of like talked to him about about hex and why i didn't

01:26:31.880 think it was a good investment and like they've just been non-stop memeing me ever since about like

01:26:37.260 that i bought hex and then i'm pumping hex and all this shit like they just don't stop telling me that

01:26:41.980 that i love hex and i should buy more hex and all this shit do you want to talk about the ones that you

01:26:46.760 don't like um i don't like the entire defy spectrum i think that's just a lot of a lot of nonsense

01:26:55.980 and it's just like icos 2.0 i think that all these defy coins are overvalued pump and dump ponzi schemes

01:27:04.140 and if you were putting your hard-earned bitcoin at work in these farms and these liquidity pools

01:27:10.480 um you're just exposing yourself to a lot of risk there's smart contract risk there's uh flash loan

01:27:20.180 liquidation risk there's rug pull risk where where people can just pull the liquidity at it

01:27:25.160 liquidity at any there's dump risk from the insiders because the insiders have got cheap and free bags

01:27:31.720 of this stuff they pre-mine and print it um and then you've got general market risk where sure this

01:27:37.100 stuff goes up in a bull market but once the bull market stops and once this fomo stops and the froth is

01:27:44.620 gone all these defy coins are just gonna get wrecked because they fundamentally don't do anything

01:27:49.180 and even if there are ones there are some that are fee sharing tokens where they actually make

01:27:53.780 fees off the defy protocols like the lending protocols what's that what do you think of

01:27:58.460 celsius celsius is another one that i'm not really interested in it's like they've they did an ico and

01:28:05.080 they've got a bit of regulatory risk sure they got tons of money but like it doesn't make any sense to

01:28:10.180 have celsius valued where it is it's just a bubble meant it's a bubble valuation so it's no different than

01:28:15.680 like the game you know game stop going up 500 in a day like fundamentally that's going to come back

01:28:22.440 down and a lot of people are going to get hurt that are holding the bag so i wouldn't mess with

01:28:26.920 these things the only thing that you should think about these altcoins for if you're absolutely going

01:28:31.000 to be in them is short-term investing in a bull market if you have insider information and if you

01:28:40.440 have an edge then you then maybe you can make some money with it and the other thing is if you're

01:28:45.160 going to be what's that rich and then take your profits and turn it into bitcoin right yeah don't

01:28:51.200 measure in dollars measure in bitcoin and take your profits into bitcoin and and realize that if you're

01:28:58.140 doing that you're you're gonna have to pay taxes on every time you swap a coin for a coin if you're in

01:29:04.140 the canada or the united states these things aren't like tax-free you know trades and if you bought

01:29:10.520 your bitcoin or your ethereum at an exchange and then you withdraw it to a defi protocol and start

01:29:15.900 using it thinking oh well i can do this under the table because it's not on an exchange the chain

01:29:20.860 analysis companies like flag that and you'll be reported to the the cra or the irs when not reported

01:29:27.560 to but you'll be you're opposed if they start asking for the data so like people don't think

01:29:34.060 that their defi is decentralized and disrupting regulators and you know it's not it's it's all

01:29:40.180 being tracked and it's unless you acquired your bitcoin or your or your ethereum or whatever in a really

01:29:45.880 anonymous way that they can't track you and you're using a vpn and it never touches your anything that

01:29:51.280 knows who you are you're gonna have to pay your taxes on that otherwise you're gonna get in shit

01:29:55.840 eventually like they're looking into this stuff okay uh we got a run we're at the end of the show

01:30:00.580 we got one quick question here he says have you seen the stock to flow model i believe we're only

01:30:04.500 halfway through this built bull run that's what the stock to flow suggests final thoughts on that

01:30:09.660 yeah i mean i i'm not like a super trader guy technical analysis guy so i think it's a fun meme like

01:30:17.920 it makes sense if you think about it in the same way that i think about bitcoin could one day become

01:30:24.920 a 10 trillion dollar asset competing with dollars and gold um stock to flow is just this fun sort of

01:30:31.420 like um mathematical equation that just says bitcoin is just going to move so it's just like you know

01:30:38.040 get ready buy bitcoin and uh and one day you'll have a citadel so just buy and hold and stop at the

01:30:44.740 stupid charts basically all right brett that was good that was real good man we did 90 minutes of

01:30:49.320 tons of value there i think you i think you covered a lot of the basics we could probably do this for hours but

01:30:53.960 uh guys if you enjoyed that leave a comment below hit the like button and brad you can be found on

01:31:00.000 twitter is that where you want to send them or yeah sure twitter at brad mills can and then you can

01:31:05.260 find a link to my podcast and where i'm giving away five bucks and strike to anybody that uses my uh

01:31:09.700 referral url to get a strike account and that's below so uh you've heard all about the red pill brad's

01:31:16.180 orange pill the bitcoin guy thanks brother we'll see you guys in the next cast thanks

Playing to Win - March 02, 2022

032 - The Basics of Bitcoin in 2021 w⧸ Brad Mills

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