Latest / Financial Survival Network / Financial Evolution: Bitcoin vs. Fiat Currency - Alan Hibbard #6209

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Financial Evolution: Bitcoin vs. Fiat Currency - Alan Hibbard #6209 · Financial Survival Network

• 0:00
  Speaker 1: Well, if you're measuring bitcoin and dollars, the equivalent question
• 0:03
  Speaker 1: is how low can the dollar go? And you know,
• 0:05
  Speaker 1: we know from studying fiat currencies of the past, you know,
• 0:08
  Speaker 1: hundreds of them, that they all go to zero eventually,
• 0:11
  Speaker 1: and so anything divided by zero is infinity. So really
• 0:14
  Speaker 1: the price of anything measured in dollars could go to infinity.
• 0:18
  Speaker 1: So it's not really a helpful answer, but I don't think.
• 0:21
  Speaker 1: I think at some point it will not make sense
• 0:24
  Speaker 1: for people to think about the price of bitcoin and dollars.
• 0:28
  Speaker 1: It's like if I asked you what is the price
• 0:30
  Speaker 1: of a dollar?
• 0:31
  Speaker 2: You are listening to Carrie.
• 0:32
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• 0:36
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• 0:41
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• 0:49
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• 0:58
  Speaker 4: And welcome you are listening to and watching the Financial
• 1:02
  Speaker 4: Survival Network.
• 1:03
  Speaker 2: I'm your host, Carrie Lutz.
• 1:05
  Speaker 4: With us today is Alan Hibbert Goldsilver dot com. Alan
• 1:09
  Speaker 4: frequent guest on the show, and haven't talked to you
• 1:13
  Speaker 4: in a while, you know, last time, I think it
• 1:16
  Speaker 4: was six months ago or so, gold was just kind
• 1:20
  Speaker 4: of beginning its ascendancy. But cryptos, we always talk about cryptos,
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  Speaker 4: and what can you say about bitcoin here?
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  Speaker 2: Alan?
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  Speaker 1: Yeah, Kerry, Well, thanks for having me back. Always good
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  Speaker 1: to speak with you. I'm a big fan of bitcoin. Basically,
• 1:33
  Speaker 1: my thesis on it is its digital gold. So it's
• 1:36
  Speaker 1: real money. It's what money is supposed to be. And
• 1:39
  Speaker 1: for thousands of years, gold was our best version of money,
• 1:41
  Speaker 1: and I think now we have a better version of
• 1:43
  Speaker 1: money in bitcoin. So I think the reason for its
• 1:47
  Speaker 1: astronomical price rise over the last fifteen years is that people,
• 1:52
  Speaker 1: little by little, one at a time are figuring out
• 1:55
  Speaker 1: that bitcoin is money and it's the best asset to
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  Speaker 1: hold their value for the long term if they have
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  Speaker 1: nothing else to do with it. Right, So, if you're
• 2:02
  Speaker 1: going to wait ten, fifteen, twenty years or more, bitcoin
• 2:05
  Speaker 1: is the place to be. And then when you have
• 2:06
  Speaker 1: a reason to actually invest in something like starting a
• 2:09
  Speaker 1: company or you know, investing in real estate, then you
• 2:12
  Speaker 1: move out of bitcoin into that other endeavor. So that's
• 2:16
  Speaker 1: why I think bitcoin is taking off, and I think
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  Speaker 1: it's going to continue and it's really exciting to be
• 2:21
  Speaker 1: a part of.
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  Speaker 4: Quite frankly, yeah, it certainly is. So question is how
• 2:26
  Speaker 4: high can it go?
• 2:27
  Speaker 1: Well, if you're measuring bitcoin and dollars, the equivalent question
• 2:31
  Speaker 1: is how low can the dollar go? And you know,
• 2:33
  Speaker 1: we know from studying fiat currencies of the past, you know,
• 2:36
  Speaker 1: hundreds of them, that they all go to zero eventually,
• 2:38
  Speaker 1: and so anything divided by zero is infinity. So really
• 2:41
  Speaker 1: the price of anything measured in dollars could go to infinity.
• 2:45
  Speaker 1: So it's not really a helpful answer, but I don't think.
• 2:49
  Speaker 1: I think at some point it will not make sense
• 2:52
  Speaker 1: for people to think about the price of bitcoin in dollars.
• 2:55
  Speaker 1: It's like if I asked you what is the price
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  Speaker 1: of a dollar? The question doesn't make a dollar is
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  Speaker 1: a dollar because that's the unit you use to measure
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  Speaker 1: other things. Eventually, they'll come a time where bitcoin is
• 3:07
  Speaker 1: the unit that you use. You think of things as
• 3:09
  Speaker 1: priced in bitcoin, and so if someone were to ask
• 3:12
  Speaker 1: you how much is a bitcoin you you wouldn't even
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  Speaker 1: think about it in terms of fiat or anything else.
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  Speaker 1: The question almost wouldn't make sense. You'd just say a
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  Speaker 1: bitcoin is a bitcoin. So I don't know if that's
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  Speaker 1: a good answer for you, Kerry. But that's kind of
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  Speaker 1: how I think it's going to go in the future.
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  Speaker 4: Yeah, And we were talking pre call about how Wall
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  Speaker 4: Street has never been a fan of gold because you
• 3:32
  Speaker 4: buy it once, there's nothing you do with it.
• 3:35
  Speaker 2: Maybe you sell it once, can't You know?
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  Speaker 4: They came up with futures, They came up with lots
• 3:42
  Speaker 4: of different mechanisms to trade gold, but you know, compared
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  Speaker 4: to traded cryptos, Wall Street was created to monetize every
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  Speaker 4: possible opportunity how to trade bitcoin ETFs, ETF's futures options
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  Speaker 4: spoty tfs. You know, there'll be an inverse ETF to
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  Speaker 4: trade bitcoin and a leveraged ETF.
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  Speaker 2: You know they're going to come up with everything here,
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  Speaker 2: aren't they.
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  Speaker 1: Yeah, I think you're right. Basically Wall Street was anti
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  Speaker 1: bitcoin and anti crypto until they found a way to
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  Speaker 1: make money off of it besides just holding it themselves, right,
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  Speaker 1: and of course they don't want to take that kind
• 4:22
  Speaker 1: of risk in terms of volatility, So you're absolutely right.
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  Speaker 1: Is once they found a way to put it into
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  Speaker 1: an ETF to you know, sell futures on it, all
• 4:30
  Speaker 1: these other derivatives and investment vehicles. That's when they embraced
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  Speaker 1: it and they said, you know what, this is pretty good.
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  Speaker 1: We can get behind it, and you know, it is
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  Speaker 1: attractive to a lot of investors. I mean you look
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  Speaker 1: at the Gold ETF, like Black Rocks Gold ETF for example,
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  Speaker 1: it took twenty years to reach thirty three billion in
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  Speaker 1: assets under management, and their Bitcoin ETF reached that threshold
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  Speaker 1: in less than one year. So it's taking off like
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  Speaker 1: a rocket. It's exploding. So yeah, now that Wall Street
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  Speaker 1: has a way to make money off of bitcoin and
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  Speaker 1: other cryptos, they've been braced it. And you know, if
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  Speaker 1: you're a smart investor, you can figure out which of
• 5:03
  Speaker 1: those investment vehicles is going to make sense for you,
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  Speaker 1: because not all of them are are good for everybody.
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  Speaker 1: But but yeah, I think I think we're going to
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  Speaker 1: see a proliferation of assets and offerings from Wall Street. Definitely.
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  Speaker 2: Yeah, they love this because there's no cost here.
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  Speaker 4: You know, when they go take a company public, they
• 5:21
  Speaker 4: got to go do due diligence, they got to send
• 5:24
  Speaker 4: people out there here. The only thing they set up
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  Speaker 4: in ETF. It's like we set up an account for
• 5:29
  Speaker 4: the ETF. We set up you know, we do our
• 5:33
  Speaker 4: disclosures and then we sell it and we're off to
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  Speaker 4: the races. Now, presumably they're actually buying bitcoin fully funding
• 5:42
  Speaker 4: these these ETFs. Do you think there's a potential for
• 5:45
  Speaker 4: fraud with m Alan?
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  Speaker 1: There's always the potential, But I have no evidence one
• 5:50
  Speaker 1: way or another. I like to I like to think
• 5:52
  Speaker 1: they're doing what they say they're doing, but you know,
• 5:55
  Speaker 1: there's always a possibility that they're not. And that's kind
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  Speaker 1: of one of the reasons why investors might consider skipping
• 6:01
  Speaker 1: these paper versions of bitcoin and buying the real asset.
• 6:05
  Speaker 1: Same with gold or silver. I mean, you don't really
• 6:08
  Speaker 1: want to hold the gold or silver ETFs for twenty years,
• 6:12
  Speaker 1: not only because of that risk, but also because of
• 6:14
  Speaker 1: tracking risk and management fees and all that kind of thing.
• 6:17
  Speaker 1: If you're going to hold it for a really long time,
• 6:18
  Speaker 1: you want to hold physical yourself. That's true of gold,
• 6:21
  Speaker 1: silver and bitcoin, right. So we learn a lot of
• 6:23
  Speaker 1: lessons from the gold and silver market and we apply
• 6:26
  Speaker 1: them to the bitcoin market.
• 6:27
  Speaker 2: So I don't want to.
• 6:28
  Speaker 1: Raise suspicions that I have no evidence that there is
• 6:31
  Speaker 1: fraud going on, but it's always a possibility. And if
• 6:34
  Speaker 1: there's no fraud, now maybe in ten years.
• 6:36
  Speaker 2: There's a little bit of fraud.
• 6:37
  Speaker 1: Maybe it's only partially backed by the underlying asset that
• 6:41
  Speaker 1: they claim, So you never know what's going to happen
• 6:43
  Speaker 1: in the future. Better safe than sorry. Make sure you
• 6:46
  Speaker 1: do your own due diligence and diversify where needed.
• 6:49
  Speaker 4: Hey, And that's like, if the government sets up a
• 6:53
  Speaker 4: bit strategic bitcoin reserve, you can't believe them because just
• 6:57
  Speaker 4: like they don't have the gold, or it's questionable at
• 7:00
  Speaker 4: best that they have the gold, how are you ever
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  Speaker 4: going to know that they have the bitcoins other than
• 7:05
  Speaker 4: the fact we say we do. I guess you'll have
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  Speaker 4: to look at the blockchain and somehow figure out what
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  Speaker 4: they're holding.
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  Speaker 1: Yeah, it's a good question. So, yeah, it's really hard
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  Speaker 1: to know if they have the gold that they say
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  Speaker 1: they have. And of course they can't just open the
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  Speaker 1: vaults and let people walk around.
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  Speaker 2: You know, if they.
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  Speaker 1: Created a video of them walking around and counting the bars,
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  Speaker 1: of course a video could be faked. There's no reason
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  Speaker 1: to know. And the same thing with bitcoin is, yeah,
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  Speaker 1: we could look on the blockchain, but we don't know
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  Speaker 1: who actually controls the private keys of which coins, and
• 7:35
  Speaker 1: you know, there could be a technology in the future
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  Speaker 1: like zero knowledge proofs where they could prove that they
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  Speaker 1: have it without actually revealing the private keys. So it's
• 7:44
  Speaker 1: possible in theory down the road that that that is,
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  Speaker 1: that that happens and then we do have a auditible
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  Speaker 1: trail of these coins, but in the current state of things,
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  Speaker 1: I don't think that's the case. I agree with you
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  Speaker 1: that it's hard to know. You know, if they have
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  Speaker 1: the coins. They say they have a fine.
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  Speaker 4: Country like El Salvador that's made bitcoin their currency, who
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  Speaker 4: the heck knows whether, you know, they're not exactly transparent,
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  Speaker 4: right as any government. You know, it's an interesting thing, Alan,
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  Speaker 4: and we'll get into gold.
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  Speaker 2: In a minute.
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  Speaker 4: But basically everybody in this planet hates their government. Now,
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  Speaker 4: you know, I yet to find one country, maybe Finland
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  Speaker 4: they think it's okay, But everybody hates their government for
• 8:32
  Speaker 4: a varacy of reasons.
• 8:34
  Speaker 2: It's the lack of, you know, government.
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  Speaker 4: We banded together to create mutual security, and all these
• 8:43
  Speaker 4: governments do is make us feel more and more insecure
• 8:46
  Speaker 4: every single day.
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  Speaker 1: Yeah, it's certainly a growing trend. And you know, the
• 8:50
  Speaker 1: world is obviously inching closer to World War three because
• 8:53
  Speaker 1: of you know, a failure in leadership. I mean, it's
• 8:56
  Speaker 1: it's amazing how how these leaders can't find a way
• 8:59
  Speaker 1: to negotiate peace or around the world. I know there's
• 9:01
  Speaker 1: a whole lot of history to everything, but it is
• 9:03
  Speaker 1: kind of amazing. And maybe Argentina. A lot of Argentines
• 9:07
  Speaker 1: love Javier Malay. You know, he lifted four almost five
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  Speaker 1: million people out of poverty in the last year, so that's.
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  Speaker 2: Something might be the only exception.
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  Speaker 1: Yeah, and then maybe Finland or Sweden. I know in
• 9:19
  Speaker 1: Sweden they didn't really do lockdowns for COVID, and there's
• 9:22
  Speaker 1: the only major country in the world that didn't have
• 9:24
  Speaker 1: a recession in twenty twenty and twenty twenty one. But yeah,
• 9:27
  Speaker 1: it's few and far between, you know. I think a
• 9:30
  Speaker 1: lot of people, depending on political views or economic views
• 9:33
  Speaker 1: or whatever other kind of views they have, they dislike
• 9:35
  Speaker 1: their governments for different reasons as you're saying, but it
• 9:38
  Speaker 1: is pretty common for people to dislike their governments. And
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  Speaker 1: I think the general trend is broken promises. Right, it
• 9:43
  Speaker 1: doesn't matter if you're left leaning or right leaning or whatever.
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  Speaker 1: There's broken promises where you know, we sort of grow
• 9:50
  Speaker 1: up thinking if you go to school you work hard
• 9:52
  Speaker 1: to get good grades, maybe you go to college, you
• 9:54
  Speaker 1: get a good job. You should be able to take
• 9:56
  Speaker 1: care of yourself and your family without without worrying about money.
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  Speaker 1: And like that promise has been broken. Everyone is worrying
• 10:02
  Speaker 1: about their money. Even rich people worry about their money.
• 10:04
  Speaker 1: They pay attention to the markets. Am I in the
• 10:06
  Speaker 1: right asset? Do I need to reallocate? It's such a
• 10:09
  Speaker 1: weird phenomenon that we just take for granted, and that
• 10:12
  Speaker 1: I think is a product of the monetary system that's
• 10:14
  Speaker 1: all FIAT, because FIAT is fundamentally a promise and it
• 10:17
  Speaker 1: is guaranteed to be a broken promise every single day.
• 10:20
  Speaker 1: So I think that's where it all stems from. And yeah,
• 10:23
  Speaker 1: that's how we fix it, is we fix the money.
• 10:25
  Speaker 4: So true, you know what you're saying, the broken promises,
• 10:29
  Speaker 4: the Boulevard of broken dreams. You know, we're always looking
• 10:34
  Speaker 4: for to get something for nothing, right, It's just human nature.
• 10:39
  Speaker 4: Why do people go to Las Vegas even though the
• 10:41
  Speaker 4: odds are stacked against them and they know it. They
• 10:45
  Speaker 4: can't resist, can they?
• 10:48
  Speaker 2: Yeah? I guess not.
• 10:48
  Speaker 1: I mean I've never you know, done any casino gambling
• 10:51
  Speaker 1: aside from poker, which I consider more of a skill
• 10:54
  Speaker 1: game than luck. But yes, a lot of people are
• 10:56
  Speaker 1: attracted to that. And you know sports betting is taking off. Yeah,
• 11:00
  Speaker 1: obviously that's that's the same version of the casino activities.
• 11:04
  Speaker 1: And you know a lot of the crypto market obviously
• 11:07
  Speaker 1: is gambling. Not I would say, not one hundred percent
• 11:09
  Speaker 1: of it, but an overwhelming percentage of it. Oh yeah,
• 11:11
  Speaker 1: And I don't know if you saw if you saw
• 11:13
  Speaker 1: a fart coin which was launched about it, you got
• 11:18
  Speaker 1: to get your hands on far coin. Come on care
• 11:21
  Speaker 1: it's up to it's up to a billion a billion
• 11:23
  Speaker 1: dollars in market cap and it was launched two months ago. So,
• 11:27
  Speaker 1: I mean, this is this is insane. I don't know
• 11:29
  Speaker 1: who is putting their money into this, but there there
• 11:31
  Speaker 1: are all these different mean coins. It's absolute gambling. There's
• 11:34
  Speaker 1: there's no value to the majority.
• 11:36
  Speaker 4: Of these coins and manipulation wise, there's no regulation here.
• 11:41
  Speaker 4: Cryptos can be traded by somebody in India or China
• 11:45
  Speaker 4: or in the United States and they could be front
• 11:49
  Speaker 4: running it, back ending it, all of that good stuff.
• 11:53
  Speaker 4: And you know, really it's uh, it's.
• 11:58
  Speaker 2: The wild West literally, or the wild the East.
• 12:01
  Speaker 1: Yeah, it absolutely is, and yeah, like you said, there's
• 12:04
  Speaker 1: no regulation and part of the part of the downside
• 12:07
  Speaker 1: about innovation is you can innovate faster than regulators can regulate,
• 12:11
  Speaker 1: so you can always get these all these get these
• 12:13
  Speaker 1: scammers that are pushing the latest technology that haven't been
• 12:16
  Speaker 1: regulated or or ruled on. And you know, it's just
• 12:21
  Speaker 1: a different version of the same story over and over all,
• 12:23
  Speaker 1: these different rug pulls, empty promises, hype, speculation, gambling. So yeah,
• 12:29
  Speaker 1: gotta be careful out there.
• 12:30
  Speaker 2: People have got a gamble, you know.
• 12:33
  Speaker 1: Well, I think I think the the attractiveness of gambling
• 12:37
  Speaker 1: comes from the difficulty in just living an honest life.
• 12:42
  Speaker 1: If you if you if you go to work, you
• 12:43
  Speaker 1: work hard, you know, forty hours a week, try to
• 12:45
  Speaker 1: provide for your family. That isn't really cutting it, you know,
• 12:49
  Speaker 1: for a lot of people, for like you know, the
• 12:50
  Speaker 1: average average blue collar worker. For some reason. We know
• 12:54
  Speaker 1: the reason, it's the monetary system. That path isn't working.
• 12:57
  Speaker 1: So a lot of people who otherwise wouldn't be gambed,
• 13:00
  Speaker 1: they become gamblers because because the ability to save has
• 13:04
  Speaker 1: been taken away from them by their governments and by
• 13:06
  Speaker 1: the monetary system. So part of the reason I love gold,
• 13:10
  Speaker 1: silver and bitcoin, and by the way, that's the entirety
• 13:12
  Speaker 1: of my portfolio. Goldsilver and bitcoin is because they're just
• 13:15
  Speaker 1: three versions of money and you can just hold them
• 13:18
  Speaker 1: and then I don't feel like I need to take risks.
• 13:20
  Speaker 1: I don't feel like I need to be in the
• 13:21
  Speaker 1: stock market or real estate or all these exotic cryptos.
• 13:24
  Speaker 1: I don't have to take those risks. I don't have
• 13:26
  Speaker 1: to gamble, I don't have to go to the casino.
• 13:28
  Speaker 1: I don't have to do sports betting. I don't have
• 13:30
  Speaker 1: to do that stuff. I can just save my way
• 13:32
  Speaker 1: to an increasing portfolio and perhaps retire like that.
• 13:36
  Speaker 2: We'll see.
• 13:37
  Speaker 4: Hey, it's an amazing thing to watch an incredible world take. So, Ellen,
• 13:43
  Speaker 4: we find you at goldsilver dot com. That's the place,
• 13:46
  Speaker 4: goldsilver dot com. Yes, or our Goldsilver YouTube channel. All right,
• 13:50
  Speaker 4: excellent links in the show notes, this interview on Financial
• 13:54
  Speaker 4: Survival Network dot com. And while you're there, we just
• 13:57
  Speaker 4: asked you please sign up for your free newsletter, like
• 14:00
  Speaker 4: over sixty thousand other FSN members have done.
• 14:04
  Speaker 2: Alan, We'll talk to you again soon.
• 14:07
  Speaker 4: Merry Christmas, Happy healthy New Year, and hopefully well, one
• 14:12
  Speaker 4: thing I can.
• 14:12
  Speaker 2: Guarantee you about twenty twenty five. It's not going to
• 14:15
  Speaker 2: be boring. That's right.
• 14:17
  Speaker 1: Thank you so much for having me, Carrie take care.
• 14:19
  Speaker 3: Thanks for listening to Carrie Letz's Financial Survival Network, your
• 14:23
  Speaker 3: solution to today's trying times. For the latest, go to
• 14:27
  Speaker 3: Financial Survivalnetwork dot com. Financial Survival Network now more than ever,