Latest / Simply Bitcoin / Bitcoin’s Heartbeat Just Flashed the $1M Signal | Beyond Bitcoin

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Bitcoin’s Heartbeat Just Flashed the $1M Signal | Beyond Bitcoin · Simply Bitcoin

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  Critics often say that Bitcoin is too volatile.
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  It'll never work. Never.
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  One, it's way too volatile. For me.
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  I'm sorry. To interrupt, but it's not going
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  to happen. It's far too volatile.
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  Bitcoin's. Way.
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  Too volatile? But you and I both know that
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  that same volatility is what is going to drive Bitcoin's price
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  to $1 million. Did he just say will?
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  Like it's not a prediction? In 2013, 2017 and 2021 Bitcoin
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  had booming cycles. It was like July 4th for like 3
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  months. Fireworks, explosions, music,
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  fun, bomo. In 2013 it surged thousands of
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  percent before tanking 80%. In 2017 it rocketed to 20K and
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  then tumbled down to 3K and that was a very sad sad time.
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  In 2021, it hit $69,000 and then plummeted down to 10 or 15.
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  Each crash felt like death, and yet the next floor always sat
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  higher than the last. And that's the part that most
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  people miss. They come out of the gate guns a
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  blazing, talking about how Bitcoins volatility is so
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  unstable and so undesirable that it could never be a store of
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  wealth. What they fail to understand is
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  that bitcoins volatility isn't a design failure.
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  It's a heartbeat. It's turbulence that signals
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  growth. And Bitcoin, I think still has
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  plenty of erratic behavior left in the tank.
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  I'm oceans. This is beyond Bitcoin.
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  You're going to want to buckle up for this one because we got a
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  bumpy ride. Given the recent volatility in
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  the. Price, there is no volatility.
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  OK. People, the only volatility is
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  how many dollars people are willing to give you for it.
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  It's the exchange price that's volatile.
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  Or is the dollar volatile? Less in Bitcoin, yeah, but.
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  I would argue it's not because if I had let's say $10 and I
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  wanted to go buy goods and services in 2020, January 2020
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  and I showed up today and I wanted to buy $10 worth of goods
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  and services, I could buy less, right?
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  The dollar has devalued against those goods and services, but.
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  Couldn't you say the same thing on like if you're using that as
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  a way to if you're comparing them to goods and services?
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  Bitcoin in 2020. If I have the one Bitcoin right
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  and now I try to go buy something, I can buy more goods
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  and services with that one Bitcoin.
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  The purchasing power of Bitcoin appreciates.
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  Over time, the purchasing power of the dollar depreciates.
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  So it it could be that it increases in value over time,
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  but also that it's more volatile.
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  It's like, but it's not volatile.
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  That's the key is we think of volatility as an exchange rate,
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  right? So for example, people look at
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  the housing market, how many dollars will somebody give me
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  for this house in 2019-2020, 21/20/22 But the house is not
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  volatile. The house has got 4 walls, got a
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  a roof and people still live in it.
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  The volatility is the exchange rate $2.00.
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  Volatility is just how wildly something moves.
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  It's the difference between one position to the next and the
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  measurement of that distance and the speed in which it happens.
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  That's volatility. On this chart comparing Bitcoin
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  to gold, you see, gold is like a calm river and Bitcoin is the
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  raging Rapids. Now, which one feels like it's
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  got more life in it? It's important to understand the
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  volatility doesn't exist within a vacuum of a day, a month, or
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  even a year. For you to understand the
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  bitcoins volatility is a feature, not a bug.
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  You need to look at the big picture.
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  A couple weeks ago Bitcoin was over $109,000 and then last
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  night it moved back down to 91,000.
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  Now most people are frightened by this extreme volatility and
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  understandably so. The downside volatility can be
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  very uncomfortable. Who likes watching a significant
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  chunk of their wealth fall 16% in a short period of time?
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  But Bitcoins volatility is not due to the inherent instability
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  of Bitcoin. Contrary to its price, Bitcoin
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  itself is actually the most stable and most predictable
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  asset in the world. It has no CEO, no management
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  team, no earnings to hit, and no competitors competing for its
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  profits. Bitcoin is a physical bearer
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  asset, something you can physically hold without
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  counterparty risk like gold, and it has no dilution risk.
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  It's the only asset with a predetermined supply
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  distribution schedule and an immutably fixed total supply.
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  So why is Bitcoins price so volatile if the asset itself is
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  not changing? Companies go up and down because
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  the present value of their future cash flows changes.
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  Bonds go up and down on default risk and inflation expectations.
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  However, Bitcoin seems to have a mind of its own.
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  Why is it so volatile if it doesn't change?
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  It's the humans that are volatile.
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  Clearly, a large majority of capital in the world has no idea
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  how to price Bitcoin. This isn't just true for
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  financial assets. Volatility is around you in
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  everyday life. Take avocados.
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  One week they're $1.25, the next week they're $3.
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  Airline prices fluctuate at the whims of supply and demand.
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  Gas at the pump is super volatile, moving up and down
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  like a bobblehead. Your Uber ride will surge during
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  a downpour. These are all examples of daily
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  volatility. No one is screaming on MSNBC
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  that gas prices are too volatile.
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  Gas prices. Are too volatile.
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  And yet, when Bitcoin pumps or dumps or jiggles, even suddenly
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  it's a scandal. And this process happens not
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  just in assets, not just in prices, but in life itself.
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  A flower, for instance, grows fast.
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  It blooms and then spends the rest of its life withering away.
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  A toddler switches its feelings like a mood ring, but an adult
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  rationalizes their temper. Hopefully, and this metaphor
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  extends out from the macro to the micro.
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  As Michael Saylor puts it in this clip, volatility is
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  vitality. Check this out.
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  We also don't see, you know, a 30% correction in a day on the
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  gold front. So again, as a store of wealth
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  for someone who wants to sleep well at night, you know, how do
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  you get over that, those massive corrections that we just don't
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  see in the gold market? You know, first of all, I think
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  that the massive corrections are becoming less massive year by
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  year, quarter by quarter, month by month.
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  The the market in Bitcoin is stabilizing as more institutions
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  come into and I think we can see it over the past 12 months.
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  Second, I think that everything that's living on this earth is
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  volatile and things that are dead are not volatile.
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  And so I, I would much rather have a, a volatile 300% return
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  than a non volatile 15% return or or a lesser return.
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  And they're plenty. There's least volatility in cash
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  with a 0% return. So, so stability of stagnation.
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  Volatility is vitality. Living things are volatile.
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  I like living things. I want to live.
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  So over time it's likely that we'll see bitcoins volatility
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  slow down and mature, just like middle-aged men will move slower
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  and more calculated than a toddler chasing a freshly blown
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  flock of bubbles. How sweet.
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  It's all a matter of time, and if your view of time is short
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  like a toddler, then you're going to be chasing bubbles that
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  blow away and pop. And bitcoins volatility is
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  actually calming over cycles. See this historical chart of
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  bitcoins. Volatility peaks were wild early
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  on. Now the swings are much flatter.
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  Moreover, realized volatility has dropped to some of its
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  lowest levels in the last six years.
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  And as this pattern continues, the next ceiling could be
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  250K500K or even a million. I'm not predicting it, I'm just
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  pointing out how growth cycles tend to evolve.
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  It's like the money version of puberty about all the weird
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  voice shifting. Here's your Taco, Mr. Whoops.
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  OK now Bitcoin may be volatile, but your signal should not be
• 8:04
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• 8:07
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• 8:12
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• 8:18
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• 8:22
  solar power panels, and also satellite phones.
• 8:26
  Stay calm. Stay sovereign.
• 8:29
  Stay connected. sat123.com. So the magic of volatility is
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  Bitcoin's mechanism for price discovery.
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  Every test, every crash leaves Bitcoin stronger on the other
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  side. As you may know, a flat line
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  means you're dead, but heartbeat means you're alive.
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  Volatility is bitcoins pulse. It's just staying alive and
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  evolving. Maybe that's the biggest
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  misunderstanding is that volatility doesn't mean failure,
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  it means that it's living. So next time someone tells you
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  that Bitcoin is too volatile in a conversation, yeah, but.
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  Bitcoin is way too. Volatile.
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  Show them what true volatility feels like.
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  They're missing the essence of life in their simple throwaway
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  analysis. Volatility is how Bitcoin grew
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  from pennies to $100,000 and how will it grow even further.
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  Don't be afraid of Bitcoin volatility.
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  Volatility. The dollar isn't stable.
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  It literally loses 2% of its purchasing power every year.
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  That means the dollar gets weaker by 2% every year.
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  By the Fed's mandate. The dollar has lost 99% of its
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  purchasing power since 1913, and it's going to continue to lose
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  value. It's not that Bitcoin is
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  volatile, it's that dollars are volatile compared to Bitcoin.
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  As bitcoiners say all the time, one Bitcoin and equals one
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  Bitcoin. We know bitcoins monetary
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  policy. Till 2140 there will only ever
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  be 21 million Bitcoin and that won't change.
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  It's not that Bitcoin is volatile, it's that the Fiat
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  world is volatile against Bitcoin.
• 9:58
  And if you want to ride bitcoins future without wrestling with a
• 10:01
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• 10:03
  SaaS mining.com allows you to own your own mining machine.
• 10:07
  Keep the sats as they handle the hosting power sustainably.
• 10:11
  It's mining made easy. Head to SAS mining.com and book
• 10:14
  a call with one of their expert team members and start mining
• 10:16
  today. Everyone gets bitcoins
• 10:18
  volatility wrong. It's not chaos.
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  It's a heartbeat, a signal that something is alive, growing, and
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  maybe just getting started. Thank you so much for watching
• 10:27
  this video. If you like what you see and you
• 10:28
  want to see more, make sure to hit that like button below.
• 10:31
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  I'm oceans. This will be on Bitcoin until
• 10:48
  next time.