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Why Bitcoin's Scarcity Drives It's Value · Earn Your Leisure

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  Speaker 2: The thing about bitcoin, when it was created by Satoshi Nakamoto,
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  Speaker 2: whoever that entity is, it has a limited supply. If
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  Speaker 2: you go back and you read that way paper, you
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  Speaker 2: read it on your own time. The way that Satoshi
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  Speaker 2: whoever Satoshi was, set it up was that there will
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  Speaker 2: only ever be twenty one million bitcoins to be mined.
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  Speaker 2: And when I say mind, you might be thinking of
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  Speaker 2: like gold mining, like literally going underground and picks and
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  Speaker 2: shovels and digging into the earth to extract gold. It's
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  Speaker 2: like that, but it's actually done with software. And it's
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  Speaker 2: done with computing power, and it takes a lot of energy.
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  Speaker 2: You may have heard stories about how much it costs
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  Speaker 2: to have produced just one bitcoin. In terms of energy,
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  Speaker 2: you could power a small city, right. A lot of
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  Speaker 2: that's true, but it's getting a little bit easier to
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  Speaker 2: that the energy use is not as intense as it
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  Speaker 2: used to be. But because there's only twenty one million
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  Speaker 2: bitcoin that will ever be mined, that's a limited supply,
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  Speaker 2: and that's one of the attractive features of bitcoin, especially
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  Speaker 2: as we see it at these very high prices. We're
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  Speaker 2: at about nineteen point eight million that have already been mined.
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  Speaker 2: There are not that many more bitcoin to be mine.
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  Speaker 2: The thing about bitcoin though, because you have to mine
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  Speaker 2: it solving a software equation or a math equation with software,
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  Speaker 2: it gets harder and harder for programmers to solve it.
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  Speaker 2: It takes a lot of computing power, it takes a
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  Speaker 2: lot of smarts, and it takes a lot of time.
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  Speaker 2: So as we get closer to twenty one million and
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  Speaker 2: worre about nineteen point eight million, it gets harder and
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  Speaker 2: harder to mind these things, which kind of raises the value.
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  Speaker 2: Tighter supply, more difficult to produce that's helping boost the price,
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  Speaker 2: along with a bunch of other factors. Right again, it's
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  Speaker 2: a supply demand issue. We're here right now, and well
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  Speaker 2: we're here a little bit further in twenty twenty four.
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  Speaker 2: Not that many more bitcoin to be mined. A lot
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  Speaker 2: of it's already out there. It's just more difficult to mind.
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  Speaker 2: And it has a scarcity issue. When you have a
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  Speaker 2: scarce resource that a lot of people are interested in,
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  Speaker 2: prices go up. I don't care if we're talking about
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  Speaker 2: air Force ones. I don't care if we're talking about,
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  Speaker 2: you know, a brand new special iPhone. You know, Scarcity
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  Speaker 2: of a product that people want and are interested in
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  Speaker 2: always drives price. It's supply demand and its manias and
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  Speaker 2: its hype, and bitcoin has all of these aspects associated
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  Speaker 2: with it. Right. So, in terms of an asset something
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  Speaker 2: you can buy and trade and invest in, well, bitcoin
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  Speaker 2: has ruled the roost in the capital markets for the
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  Speaker 2: past ten years really, but in the past five years alone.
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  Speaker 2: Just look at the price appreciation of bitcoin. It just
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  Speaker 2: blows out all these other things. I'm gonna read it.
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  Speaker 2: If you can't get if you can't see it close enough,
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  Speaker 2: Bitcoin's up about one thousand, two hundred and ninety percent
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  Speaker 2: in the past five years. Right, the S and P
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  Speaker 2: five hundred our stock market, the five hundred biggest companies
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  Speaker 2: in America, is up ninety one percent in the past
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  Speaker 2: five years. Guys, that's outstanding, right, Those are great returns
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  Speaker 2: for stocks. But when you look at bitcoin, it doesn't
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  Speaker 2: even compare the Dow Jones industrials. They are not all industrials.
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  Speaker 2: That's up fifty six percent. Gold and I use the
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  Speaker 2: ETF as the proxy is up about seventy eight percent
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  Speaker 2: in the past five years, and the dollar is up
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  Speaker 2: about ten percent. So Bitcoin in terms of an investment,
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  Speaker 2: has returned a lot more or generated a lot more
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  Speaker 2: what we call alpha in our business because of this scarcity,
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  Speaker 2: because of the interest in it, and a lot of
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  Speaker 2: that has come in different waves. Rare Shad mentioned he
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  Speaker 2: first got introduced to it in twenty sixteen. Twenty seventeen,
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  Speaker 2: bitcoin had already been around. I remember back in twenty
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  Speaker 2: fourteen when it was two bucks, and no, I didn't
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  Speaker 2: buy it because I didn't understand it. But the more
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  Speaker 2: scarce it gets, the more interest there is and the
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  Speaker 2: more adoption there is by both investors like us individual
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  Speaker 2: investors or institutional investors like the Fidelities of the world,
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  Speaker 2: the Black Rocks of the world, the Goldman Sachses of
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  Speaker 2: the world, and yes they're interested, and yes they're mining
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  Speaker 2: their own bitcoin. Well, that's just going to drive price
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  Speaker 2: even higher. So in the past five years it has
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  Speaker 2: blown out stocks by a long shot. But let me
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  Speaker 2: take you back five more years beyond that. Ten thousand
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  Speaker 2: dollars invested in bitcoin ten years ago, that's where two
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  Speaker 2: point nine million dollars today. Now we want to talk
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  Speaker 2: about fear missing out or you know, I wish, you know,
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  Speaker 2: somebody would have told me about this and I just
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  Speaker 2: would have put a thousand. Well, we can think about
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  Speaker 2: that with everything. Bitcoin is super unique, with returns like
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  Speaker 2: this ten thousand, ten years ago worth two point nine
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  Speaker 2: million dollars today. We have never seen anything like it
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  Speaker 2: in the capital markets. And I've been doing this for
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  Speaker 2: a very long time, so we could talk about why
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  Speaker 2: that's happened. But still, even with that massive price appreciation,
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  Speaker 2: bitcoin is still much bigger than that. It's about a
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  Speaker 2: trillion and a half now, but it's very small compared
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  Speaker 2: to the market capitalizations of big assets that are already
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  Speaker 2: traded in our capital markets, real estate being the biggest
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  Speaker 2: worldwide to three hundred and thirty trillion dollar market. Global debt,
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  Speaker 2: we're talking about the bond market. We're talking about US debt,
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  Speaker 2: Chinese debt, Japanese debt, European country debt. That's a three
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  Speaker 2: hundred and fifteen trillion dollar market. FIAC currency we're talking
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  Speaker 2: about dollars, euros, YenS, right, that's one hundred and twenty
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  Speaker 2: trillion dollar market. Bitcoin is a trillion and a half
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  Speaker 2: dollar market. It's come a long way in fourteen years,
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  Speaker 2: but it is still a very small asset class comparatively speaking,
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  Speaker 2: and given the hype that it gets, barely anybody owns it,
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  Speaker 2: but the people that own it own a lot of it,
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  Speaker 2: especially some of the bigger companies. So we'll get into
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  Speaker 2: that in a second. Just keep that in mind though,
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  Speaker 2: when Rashad mentioned that eighty five percent of people's surveyed
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  Speaker 2: say they don't own it, Well, you know, it's still
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  Speaker 2: pretty young, and it's still pretty small, and it wasn't
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  Speaker 2: until like the last year or two where it really
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  Speaker 2: became available for us to put into our retirement accounts,
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  Speaker 2: to buy like an exchange traded fund, like we would
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  Speaker 2: buy in exchange traded fund that tracks the Nasdaq. Right,
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  Speaker 2: it is still kind of a I wouldn't call it
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  Speaker 2: a baby, but I may call it like an eight
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  Speaker 2: year old or like a fourteen year old, because that's
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  Speaker 2: actually what it is.
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