Latest / Simply Bitcoin / WARNING: Why Bitcoin’s ALL-TIME HIGH Is Screaming DANGER! | Beyond Bitcoin

Transcript

WARNING: Why Bitcoin’s ALL-TIME HIGH Is Screaming DANGER! | Beyond Bitcoin · Simply Bitcoin

• 0:00
  We're all excited about Bitcoin hitting a new all time high, but
• 0:02
  what if I told you that this rise might be scarier than you
• 0:06
  think? It may mean Lambos and vacations
• 0:09
  for some, but for many, it means that the market is anticipating
• 0:14
  a money printing event in a big way.
• 0:16
  Today, I'm going to break down why Bitcoin's price rise might
• 0:19
  be the beginning of tough times ahead.
• 0:23
  Stick around to the end of this video and find out why being
• 0:25
  bullish might actually be bearish imotions.
• 0:29
  This is beyond Bitcoin. Let's dive in.
• 0:37
  All time highs always feel good. You wake up 1 morning and see
• 0:40
  that price ripping, getting texts from friends.
• 0:42
  Like damn I should have listened to you.
• 0:45
  And you think about how much closer you are to reaching
• 0:47
  escape velocity. But this price doesn't come
• 0:50
  without a cost. You probably know this already
• 0:53
  because you keep up with all the Bitcoin news, right?
• 0:56
  You better, but we are in the age of money printing.
• 0:59
  Did you know that 80% of all dollars in existence were
• 1:01
  printed in the last five years? You probably knew that, right?
• 1:04
  You better. The dollar is inflating at a
• 1:06
  rapid pace and we have a limited time to get on the Bitcoin
• 1:09
  train. So you can say that as Bitcoin
• 1:11
  rises in value and hits new all time highs, it's almost like
• 1:15
  Bitcoin tracks inflation. Florida State.
• 1:18
  So as these prices rise in Bitcoin and it makes its new all
• 1:21
  time highs, It means that on the back end that more and more
• 1:24
  dollars are being printed or are in anticipation of being
• 1:28
  printed. The higher Bitcoin goes, the
• 1:30
  more of an indicator we are getting debased and the speed in
• 1:33
  which that is happening. You know what else bitcoins new
• 1:35
  all time high tells us about the state of the economy.
• 1:37
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• 1:39
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• 1:43
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• 1:55
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• 1:58
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• 2:06
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• 2:11
  Go to sat123.com. OK, so let me tell you what I
• 2:15
  think bitcoins new all time high tells US1 we are going to get
• 2:18
  the base faster. When bitcoins hitting new all
• 2:21
  time highs starts to happen more and more frequently, it's an
• 2:24
  indicator of the speed of the print.
• 2:26
  Don't it just feel like a print is coming?
• 2:28
  2 If more printing is coming, what does it mean for the people
• 2:31
  who don't hold their own keys? What does it mean for the no
• 2:34
  quarters? It could be the beginnings of an
• 2:36
  accelerated loss in the quality of life when it becomes too
• 2:39
  expensive for shelter or clean food.
• 2:42
  Money is broken, class systems arise, and freedom becomes
• 2:45
  expensive. But I'm getting off topic.
• 2:47
  Here's a Michael Saylor clip while I gather my thoughts.
• 2:51
  The problem starts with continually changing the
• 2:55
  definition of the Market Basket. But in my opinion, that's not
• 3:00
  the biggest problem. The more the more egregious
• 3:05
  problem is the the fundamental idea that assets aren't products
• 3:10
  or services. Assets can't be inflated.
• 3:14
  What's an asset? A house, a share of Apple stock,
• 3:19
  a bond, a Bitcoin is an asset. Or a Picasso painting so.
• 3:28
  Not a consumable good. Not a not not not an apple that
• 3:33
  you can eat. Right.
• 3:35
  If I throw away an asset then I'm not on the hook to track the
• 3:40
  inflation rate for it. So what happens if I change the
• 3:43
  policy such that let's let's take the classic example,
• 3:47
  $1,000,000 bond at a 5% interest rate gives you $50,000 a year in
• 3:51
  risk free income. You might retire on $50,000 a
• 3:55
  year in a low cost jurisdiction. So the cost of Social Security
• 4:00
  or early retirement is $1 million when the interest rate
• 4:03
  is 5%. During the the crisis of March
• 4:07
  of 2020, the interest rate went on a 10 year bond went to 50
• 4:10
  basis points. So now the cost of that bond is
• 4:14
  $10 million. OK.
• 4:17
  The cost of Social Security went from $1,000,000 to $10 million.
• 4:21
  So if you wanted to work your entire life, save money and then
• 4:25
  retire risk free and live happily ever after on a $50,000
• 4:29
  salary living on a beach in Mexico, wherever you wanted to
• 4:32
  go, you had hyperinflation. The cost of your aspiration
• 4:37
  increased by a factor of 10 over the course of, you know, some
• 4:41
  amount of time. In fact, in that case, that was
• 4:44
  like over the course of about 12 years, right?
• 4:46
  As the inflation rate ground down, the asset traded up.
• 4:51
  But the, you know, the conventional view is, oh, that's
• 4:55
  not a problem because it's good that that assets, that it's good
• 4:58
  that the bond is highly priced because we own the bond or what?
• 5:03
  What's the problem with the inflation rate in housing being
• 5:06
  19%? It's an awful problem for a 22
• 5:10
  year old that's starting their first job, that's saving money
• 5:13
  to buy a house. But it would be characterized as
• 5:17
  a benefit to society by a conventional economist who would
• 5:20
  say, well, housing asset values are higher because of interest
• 5:25
  rate fluctuation, and now the economy's got more wealth.
• 5:28
  Buying Bitcoin today means you have a money that matches up
• 5:31
  with the rate of inflation, not what the federal funds rate says
• 5:34
  the inflation rate is. Bitcoin is an inflation meter,
• 5:37
  if you will, forever ticking upward.
• 5:39
  If you think about it, the Fiat price continuing to climb will
• 5:42
  bring prosperity to few but well health to many.
• 5:46
  And the more you get into Bitcoin the more you stay into
• 5:49
  Bitcoin. Bitcoin is a one way Rd. with
• 5:52
  off ramps. If you had the human race doing
• 5:54
  stuff and if you ask the question how much more
• 5:59
  efficiently will we do the stuff next year than this year or how,
• 6:02
  what's the value of all of our innovations and inventions and
• 6:07
  investments in the past 12 months, you'd be hard pressed to
• 6:10
  say we get 2% better. Typical investor thinks they
• 6:16
  they're 10% better every year. So if you look at what's going
• 6:20
  on, really when you're holding $1,000,000 of stocks and you're
• 6:24
  getting a 10% gain a year, you really get a 7% expansion of the
• 6:28
  money supply. You're getting a 2 or 3% gain
• 6:32
  under best circumstances. And another way to say that is
• 6:38
  if the money supply stopped expanding at 7% a year, the S&P
• 6:41
  yield might be 3% and not 10%. It probably should be.
• 6:47
  Now that that that gets you to start to ask a bunch of other
• 6:50
  fundamental questions like if I borrow a billion dollars and pay
• 6:54
  3% interest and the money supply expands at 7 to 10% a year and I
• 7:01
  ended up making a 10% return on a, you know, billion dollar
• 7:05
  investment paying 3% interest. Is that fair?
• 7:08
  And who, who, who suffered so that I could do that?
• 7:12
  Because in an environment where you're just inflating the money
• 7:16
  supply and you're holding the assets constant, it stands to
• 7:20
  reason that the price of all the assets is going to appreciate
• 7:25
  somewhat proportional to the money supply.
• 7:28
  And the difference in asset appreciation is going to be a
• 7:31
  function of the scarce desirable quality of the assets.
• 7:34
  And to what extent can I make more of them?
• 7:37
  And to what extent are they? Are they truly limited in
• 7:41
  supply? If you're not in Bitcoin, an all
• 7:44
  time high could mean that you're getting deeper and deeper into
• 7:47
  debt. Bitcoin might be the only thing
• 7:49
  that could pull you out of it. Higher Bitcoin prices means
• 7:53
  higher inflation, which means higher chances of war, poverty
• 7:56
  and corruption. A widening of the wealth gap.
• 7:59
  There will be more concentration of wealth in the hands of the
• 8:02
  few, but maybe, just maybe, the pie will grow, Bitcoin gets
• 8:06
  adopted, and the wealth will spread.
• 8:08
  Buy some Bitcoin, study Bitcoin, do what you got to do.
• 8:11
  But whatever you do, don't get caught on the wrong side of this
• 8:14
  trade. Thank you so much for watching
• 8:16
  the show. I just want to take a moment and
• 8:18
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• 8:59
  this show. I'm oceans.
• 9:00
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• 9:02
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• 9:06
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• 9:11
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