Latest / Simply Bitcoin / Why Bitcoin's Price Will Go UP FOREVER | Beyond Bitcoin

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Why Bitcoin's Price Will Go UP FOREVER | Beyond Bitcoin · Simply Bitcoin

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  One day soon you're going to look back at Bitcoin's price and
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  laugh, ha ha ha ha ha or cry not because it doubled, but because
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  it kept going and never came back.
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  There is a number out there that almost no one talks about That
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  explains exactly why that is, and once you see it, you'll
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  understand why the price could only go one way up forever.
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  Laura, what happens when one asset starts absorbing the value
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  of everything? Not just money, but property,
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  companies, stocks, resources, art and every new thing that
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  humans will ever create? It's not a guess.
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  It's baked into math. Once you get it, you'll never
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  look at bitcoins price the same way again.
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  I'm oceans. This is beyond Bitcoin.
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  Buckle up there, Cowboys. We're about to zoom out of the
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  universe about 21 million miles away.
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  OK, here's the whole thing in one line.
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  Everything divided by 21 million.
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  That's it. Looks familiar, right?
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  We see this meme on shirts and coffee cups popularized by Knut,
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  then Knut Knut Swan Hall. Here's a big question.
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  What does it mean to have everything divided by 21
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  million? It's easy to print on a T-shirt,
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  but its message might be one of the most profound discoveries in
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  our financial world. So.
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  Whenever, whenever there's a thought, I I tend to extrapolate
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  the thought vector into the extreme.
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  OK, so, so I guess that's how I came up with the idea of
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  everything divided by 21 million.
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  It's just like, what? What what happens then?
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  Then? Well, it must be everything,
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  like forever. Like yeah, like goes to
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  Infinity. It just blows the mind too.
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  It's really hard to wrap the mind around.
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  But also at the at the same time, if you understand Bitcoin,
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  then it's in some sense it's also obvious, kind of.
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  Yeah. Then again, I don't think things
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  will be infinitely valuable. It's it's just that prices can
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  actually go down forever and it's good for absolutely
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  everyone. It's literally every single
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  person working for everyone else, which it's it's just.
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  It breaks the brain because we're conditioned to think that
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  like inflation is a natural thing, like it's like just a law
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  of. Nature is the greatest lie ever
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  told. Yes, it really is.
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  And you can, you can see it all around you, like if you just go
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  into a 711 or something, just a supermarket and you see all the
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  stuff that's in there. And some of these supermarkets
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  sell like shoes and bags and stuff also.
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  Why? How can they do that?
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  What, what's the it's because all the stuff in the world is,
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  is already in Fiat land, almost infinitely cheap to produce and
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  ship. So, so like all prices are
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  trending to 00 marginal cost like and production costs.
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  And so why shouldn't everyone be able to tap into that?
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  The only reason is that some people have kidnapped the whole
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  system and and they they are able to manipulate it.
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  And then, yeah. And and this has gone on, gone
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  on for such a long time and so many generations that we've
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  we've never had money with a fixed supply before.
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  So no, no human being has ever experienced that.
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  So that I guess that's why it's so hard to think outside the box
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  and you know, enormous are very hard for them to deprogram them
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  when it comes to the concept of money.
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  Yeah, like, yeah, but then I could sell my Bitcoin like 2
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  years down the line and buy a Porsche.
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  Like you're missing the point dude.
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  Totally. Meets Man Home didn't just come
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  up with a catchy phrase. That thought is so powerful.
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  He exposed maybe the most important piece of math in your
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  lifetime. Everything is the total value of
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  all wealth today. All buildings, houses, boats,
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  barrels of bourbon, butter, biscuits, bass guitars,
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  basketballs, baked goods, bonbons, books, beds, bedtime
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  stories, baths. OK, enough of that.
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  This number also includes all the wealth humanity will ever
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  create in its future. That's the numerator side of
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  this equation. The denominator, 21 million.
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  This is the total number of Bitcoin that can ever exist and
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  will ever be in circulation, hard coded into the network.
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  And here is where it gets simple enough for a 5 year old.
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  If the number grows and it always grows, and the
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  denominator stays the same, what happens to the price per unit?
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  I bet you can guess all rise in the presence.
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  Of Dark Helmet. Yeah, it goes up supply, demand.
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  You've heard before, it's not a prediction, it's economic law.
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  Let's break this numerator number down for a moment.
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  Why not? Today the numerator is drum
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  roll. The global gold market cap sits
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  at $15 trillion or $23 trillion depending on what search engine
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  you ask. This is the estimated present
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  value of all gold in the world. Next global real estate, $326
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  trillion. Next global M2 money supply $105
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  trillion M 2 money supply is the current money in circulation at
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  the moment. So 105 trillion Fiat garbage out
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  there. Then there's stocks, bonds, art,
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  commodities dot dot dot. The list truly never ends.
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  We're talking about everything and anything you can slap a
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  value onto. And yes, I know I changed my
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  shirt, but you don't care about that.
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  But let me reiterate, I'm just talking about now, 2025 at the
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  dawn of the AI revolution. Imagine what kinds of goods and
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  services that could be valued in the foreseeable future.
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  A utopian future of Elon's bots serving us breakfast and walking
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  our dogs. Fast forward to 2050 where we
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  include space mining, gold and asteroids, AI driven industries,
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  new cities, new materials, new energy sources we can't even
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  imagine yet. Space mining?
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  Yes, Elon Musk will be out there chiseling asteroids for gold,
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  probably sponsored by Gucci or Dolce Gabbana if they're still
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  around. Now here's the big head
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  exploding part. Everything.
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  Every single unit of whatever you can dream of from now till
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  forever, we'll be competing for the 21 million Bitcoin.
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  You're not just bidding against people who are alive right now,
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  you're bidding against every human being that will ever live.
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  So think for a second how much wealth is already in the world?
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  How much value can be split into units?
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  Your car, your coffee, your trip to Cancun, everything that could
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  be priced. Imagine dividing it by 21
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  million. It's a pretty big number, but
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  that number is not fixed. Life changes, things fluctuate,
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  and this is the crazy part. That number on the numerator
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  side continues to expand and contract while the 21 million
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  Bitcoin stay the same. So where does that put bitcoins
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  price in the future? The implied value today of of a
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  Bitcoin today's purchasing power against today's balance sheet is
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  $43 million. And I'm not talking $43 million.
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  I'm talking implied purchasing power of $43,000,000.
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  And two things are going to, as you move forward, two things are
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  going to happen. The existing financial, the
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  existing balance sheet which is just based on more pieces of
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  paper has to expand and it has to expand a lot, right.
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  So as that expands, then that implied purchasing power, then
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  all prices will be higher inside that system.
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  House prices will be higher, oil prices will be higher relative
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  to the piece of paper and that will expand that that 43, three
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  million. That's why it's hard to hard to
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  quantify and that 43. So, but if you said purchasing
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  power today, but the purchasing power of that today will rise
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  forever because prices will fall forever against it.
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  That's so you're dealing with both things at the same time and
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  and people are measuring the price through this other
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  instrument. They can't.
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  That is extractive to what I just decide.
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  The context is all within the time that you are doing these
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  calculations. You these calculations are never
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• 8:29
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• 8:56
  when everyone has lost theirs. One thing is for sure, scarcity
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  doesn't just change bitcoins price.
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  In fact most people stop right there.
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  But if Bitcoin becomes the global denominator, the base
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  unit that we price everything in, scarcity affects the price
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  of goods and services. 2 Imagine this one Bitcoin today buys you
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  a car. Well, today I'd buy you a really
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  good car. But in five years, one Bitcoin
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  will buy you 10 cars, 10 really good cars.
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  And all these ten cars will probably be self driving, AI
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  driven, you know, built in espresso machine sort of deal.
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  Why? Because the value of Bitcoin
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  doesn't just rise. The price of goods and services
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  in Bitcoin fall. This is the flip side of
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  inflation. In Fiat, goods and services
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  actually get more expensive over time because your money gets
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  weaker over time. And obviously in Bitcoin, goods
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  and services get cheaper over time because your money gets
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  stronger. Makes sense.
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  That means wages, rent, energy, food, all of it will reprice in
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  Bitcoin over time. It has to.
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  That is, Bitcoin strengthens, the same amount of it will buy
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  you more life over time. Why would we price everything in
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  Bitcoin? Legitimate question, which I'm
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  sure we've answered many times on this channel, but I got a bit
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  of a spin on it. Like it or not, borders are
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  breaking down region to region and even person to person.
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  This can be expressed at a macro scale geopolitically, or at a
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  micro scale personally. Nowhere else in our history have
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  the lines of so many different things become blurred.
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  Global conflicts, gender identities, musical mashups,
• 10:33
  brown shaken espresso, cold foam latte, Take your pick.
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  Because of this acceleration of borders breaking down, the money
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  and value that we transmit from region to region and person to
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  person becomes more and more abstracted and arbitrary.
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  The Internet, for instance, already made geography
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  irrelevant for information consumption.
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  Doesn't matter where you are, you can consume information from
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  anywhere. And what Bitcoin does is make
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  geography irrelevant for money. It breaks down the borders of
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  money. The rise of Bitcoin signal in a
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  population of confused entire people.
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  It's proof that global trade desires A neutral measuring
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  stick. The dollar used to be that, but
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  politics messed that up. And what's great about Bitcoin
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  is it's trustless by design. So it doesn't matter if politics
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  want to mess stuff up. And once oil, wheat,
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  semiconductors, cloud storage, and yeah, probably even NFTS.
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  Shh. I used to own a couple of NFTS
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  myself. Don't tell anyone when all these
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  things are clearing in Bitcoin, everything divided by 21 million
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  stops being a thought experiment and starts being a kind of life
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  practice, blah blah blah blah blah.
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  At some point people stop measuring Bitcoin in dollars and
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  they start measuring dollars in Bitcoin.
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  The dollar will just be another entry into the numerator side of
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  the equation. You know, like a relic, salt or
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  shells, whatever you whatever thing you want to stuff into
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  that everything. The dollars will be one of them
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  in 20 years. How much will you pay for a
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  $5.00 bill for Bitcoin? That's really the question.
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  Really funny if like a $5.00 bill was worth like $30 a
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  Bitcoin today, you know, just because of its nostalgia or
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  something. And when that happens, it's not
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  a question of what's Bitcoin's price.
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  It's more of a question of how much of that 21,000,000 do you
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  own. This is the most one sided trade
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  in history. A finite supply of money against
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  an infinite supply of value. And yeah, maybe in 20-70 we'll
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  be pricing Mars condos and asteroid jewelry and sats, but
• 12:43
  the math will still be the same. And if you're thinking how do I
• 12:46
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  Everything forever divided by 21 million.
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  It's not a slogan. That's the equation that will
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  price your future. Once you see it, you can't Unsee
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  it. The numerator will never stop
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  growing and the denominator will never change, and that's why the
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  price can only go one way forever Imotions.
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  This is beyond Bitcoin. Thank you so much for watching
• 13:34
  this video. If you like the content you want
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  to see more, make sure you hit that subscribe button below and
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  the like button below and the notification bell below and you
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  can get all the updates. We're coming out with content
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  like this every single day of the week.
• 13:47
  Thank you so much for watching. Until next time.