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Why Bitcoin Is A Scam! #bitcoin #scams #gold · Gil I Am

0:00
Speaker 1: Could bitcoin threaten gold? Yeah, I mean in theory, right,
0:04
Speaker 1: they're saying bitcoin is digital gold, So why do I
0:06
Speaker 1: need real gold if I can have digital gold? But
0:09
Speaker 1: the problem is it's not digital gold. I mean that's
0:11
Speaker 1: just bs right. There's you can't replace gold with bitcoin
0:18
Speaker 1: in any of its actual use cases, right, I mean here,
0:21
Speaker 1: I mean I'm wearing this watch, right, this watches has
0:24
Speaker 1: gold in it. Right, is this is a I got
0:27
Speaker 1: this gold bracelet from Mina, Rightmina dot Com? Right, they
0:30
Speaker 1: can't make this bracelet with bitcoin. You want to make
0:33
Speaker 1: this bracelet, you know you can. You need gold now
0:35
Speaker 1: you can make you can make one out of silver.
0:37
Speaker 1: If you don't want to have one out of gold,
0:38
Speaker 1: you could use a different metal. But if you want
0:40
Speaker 1: a gold bracelet, you can't use bitcoin. Right. Computer chips
0:45
Speaker 1: there's gold in there, a little bits of gold to
0:47
Speaker 1: conduct electricity. You can't put bitcoin in the computer chip
0:50
Speaker 1: instead of gold. You know, they use gold in dentistry,
0:55
Speaker 1: they use it in aerospace. There's all sorts of industrial applications.
1:01
Speaker 1: In none of those applications can you substitute bitcoin. It's
1:05
Speaker 1: not a metal to let alone, a precious metal. You know,
1:08
Speaker 1: it's not even tangible. It's a string of numbers, and
1:12
Speaker 1: there's twenty thousand other cryptos that you could use if
1:17
Speaker 1: you instead of bitcoin. So it's just to me, the
1:24
Speaker 1: whole thing is just a giant blockchain letter. You know,
1:28
Speaker 1: people attribute value to bitcoin that it doesn't have. It
1:32
Speaker 1: has a price. I mean I don't argue with that.
1:35
Speaker 1: I mean you can put a price on anything. I mean,
1:37
Speaker 1: look at Peloton during the pandemic. Peloton shares were one
1:40
Speaker 1: hundred and seventy. Now there are three. So was Peloton
1:43
Speaker 1: worth one hundred and seven dollars a share? Well, that's
1:45
Speaker 1: what the price was because some idiot was willing to
1:47
Speaker 1: buy it at that price. It doesn't mean the company
1:51
Speaker 1: was fundamentally worth that much. So sure someone could buy
1:54
Speaker 1: bitcoin and pay sixty four thousand dollars for it. Does
1:57
Speaker 1: that mean it's got sixty four thousand dollars worth of value. No,
1:59
Speaker 1: it's got that market value because somebody was willing to
2:03
Speaker 1: pay that price. What do you think bitcoin is actually worth?
2:06
Speaker 1: I don't know what it's worth. It may not be
2:08
Speaker 1: worth anything. It may be worth some nominal amount. I mean,
2:12
Speaker 1: what if it's worth one hundred dollars, I don't know,
2:14
Speaker 1: maybe it is. I don't know. At this point, it's
2:16
Speaker 1: irrelevant whether it's worth zero or one hundred dollars, because
2:19
Speaker 1: if it goes to one hundred dollars, it might as
2:21
Speaker 1: well go to zero for ninety nine point nine percent
2:24
Speaker 1: of the people who own it, right, they're going to
2:26
Speaker 1: be effectively wiped out if bigcoin goes to one hundred.
2:29
Speaker 1: Even if it goes to one thousand, right from sixty thousand,
2:34
Speaker 1: you've lost pretty much everything it has to be worth,
2:38
Speaker 1: you know, you know, something near the current price, which
2:42
Speaker 1: I can't imagine what bitcoin could possibly do that would
2:46
Speaker 1: create that much value. And for a lot of the
2:49
Speaker 1: use cases that people are coming up with, like ordinals, right, Like, hey,
2:52
Speaker 1: I created an ordinal too. It's called the Golden Triumph, right.
2:56
Speaker 1: It's a picture of an arm holding up a gold bar.
2:59
Speaker 1: You know. I put it on an ordinal on the
3:02
Speaker 1: bitcoin blockchain and you can go. You can buy them
3:05
Speaker 1: at Magic Eating. Now we sold out of them. There
3:07
Speaker 1: was like fifty of them, but they're trading. You can
3:09
Speaker 1: buy an ordinal, but you only need you could put
3:11
Speaker 1: the ordinal on a satoshi. It's all you need is one.
3:14
Speaker 1: There's twenty one quadrillion satoshi's. I mean, there's enough for
3:18
Speaker 1: everybody in the world to have a few hundred thousand satochis,
3:22
Speaker 1: And so I don't see where there's a shortage of
3:24
Speaker 1: these things. You don't need a whole bitcoin, right, you
3:27
Speaker 1: just need a satoci. There's no real difference between a
3:30
Speaker 1: satoshi and a bitcoin other than the fact that a
3:33
Speaker 1: bitcoin is a whole bunch of satocis. Now people say, well,
3:36
Speaker 1: but an ounce of gold is just a whole bunch
3:38
Speaker 1: of specks of gold. Yes, but you can't do anything
3:41
Speaker 1: with a spec right, You actually need a specific quantity.
3:44
Speaker 1: You want to make this gold rolex, I think there's
3:48
Speaker 1: maybe six ounces of gold in there. You can't make
3:51
Speaker 1: it with one ounce. You need six ounces, right, You
3:53
Speaker 1: need that specific quantity to do that job. But I
3:57
Speaker 1: don't need any quantity of satochi's to do any job
4:00
Speaker 1: because you can't do anything with them. All you can
4:01
Speaker 1: do is give them to somebody. And so I don't
4:03
Speaker 1: see what's so unique about that. I mean, you do
4:05
Speaker 1: all these other cryptocurrencies. You can transfer and look, I
4:09
Speaker 1: can use PayPal, I can use Venmo, I could use Zel.
4:12
Speaker 1: There's all sorts of ways that I can transfer payment
4:16
Speaker 1: to somebody over the internet cheaply, quicker than bitcoin. And
4:20
Speaker 1: if you really like a digital currency, then tokenize gold.
4:25
Speaker 1: I mean, there's already a bunch of these tokens out
4:27
Speaker 1: there there. You know, there'd be a lot more if
4:30
Speaker 1: it wasn't for the regulatory cost. But all you have
4:33
Speaker 1: to do is take gold, tokenize it, and now gold
4:36
Speaker 1: can circulate as a digital payment. I can own gold,
4:41
Speaker 1: and I can assign transfer that ownership to anybody in
4:46
Speaker 1: the world instantly, practically free. And I'm just instead of
4:51
Speaker 1: sending you my gold, I'm sending you the token that
4:54
Speaker 1: signifies ownership of that gold. The gold just stays in
4:57
Speaker 1: a vault and the ownership goes from one person or other.
5:00
Speaker 1: What do you think it would take for bitcoin to
5:01
Speaker 1: go to one hundred dollars the absence of buying It
5:04
Speaker 1: doesn't even take a lot of selling. It just takes
5:06
Speaker 1: the absence of buying, right, because if people decide they
5:10
Speaker 1: don't want to buy bitcoin anymore, and why do people
5:12
Speaker 1: want bitcoin? The vast majority of the buying is because
5:17
Speaker 1: people think they're going to make a lot of money
5:18
Speaker 1: buying it. They think that the price of bitcoin is
5:21
Speaker 1: going to go up and they're going to get rich,
5:23
Speaker 1: and then they're going to sell their bitcoin and buy
5:26
Speaker 1: a car, a bode, a house, take a vacation, buy
5:30
Speaker 1: new clothes. So everybody's buying bitcoin wants to sell it
5:34
Speaker 1: at some point. They can only sell it if there's
5:36
Speaker 1: somebody else who is equally confident that from that point
5:40
Speaker 1: the price will go up. So now they can buy
5:43
Speaker 1: a house and a car and a bode or whatever
5:45
Speaker 1: they want. But if people stop believing in the fairy tale,
5:51
Speaker 1: then you run out of buyers. Now, without buyers, how
5:54
Speaker 1: do people sell to get the things they want that
5:57
Speaker 1: they can't so the price will collapse. So I think
6:00
Speaker 1: it's not gonna be that everybody starts selling. It's gonna
6:05
Speaker 1: be the new people stop buying, and then as the
6:08
Speaker 1: price really starts to fall, maybe you know, I don't
6:11
Speaker 1: think the true believers, the hardcore bitcoiners, they're not gonna
6:15
Speaker 1: be phased by bitcoin going from sixty thousand to forty thousand. Right,
6:23
Speaker 1: they've seen that before, been there, done that, Bitcoin always
6:27
Speaker 1: comes back. That may not be the case for the
6:29
Speaker 1: people who just bought into the bitcoin etf So I
6:31
Speaker 1: think they're gonna be the first ones out right they
6:33
Speaker 1: were the last ones in, they're gonna be the first
6:35
Speaker 1: ones out. They're not long term hotalers. Even if they
6:37
Speaker 1: bought the one with the symbol hotal, they're they're traders,
6:40
Speaker 1: I think. I mean, if they were real bitcoin people,
6:42
Speaker 1: they would have bought years ago. They wouldn't have waited
6:44
Speaker 1: for an ETF. They got kind of suckered into it
6:47
Speaker 1: by the hype and the promotion and they thought they
6:50
Speaker 1: could make some money. And that's gonna be a big
6:52
Speaker 1: problem for bitcoin. Two, when the ETF starts to sell off,
6:55
Speaker 1: because you know, if you go back and look at
6:58
Speaker 1: prior bitcoin craw you always have a big influx of tether.
7:03
Speaker 1: There's a lot of tether. Whether they're counterfeit tether, we'll see.
7:07
Speaker 1: But tether comes in and buys up bitcoin and that
7:09
Speaker 1: puts in a bottom. But when the ETFs start to
7:12
Speaker 1: liquidate and now they have to take the bitcoin that
7:16
Speaker 1: they own into the spot market and sell it, the
7:19
Speaker 1: buyer has to pay with real dollars, they can't pay
7:22
Speaker 1: with tether, and there may not be enough of those
7:24
Speaker 1: that want to buy bitcoin. And so I think that
7:27
Speaker 1: the next bitcoin crash is going to be pretty big
7:29
Speaker 1: because I think it's going to start in the ETFs,
7:33
Speaker 1: and it's going to exacerbate the decline when you have
7:36
Speaker 1: all these market orders, sell me bitcoin at the market,
7:39
Speaker 1: whatever the price is, no limits, just get me out
7:42
Speaker 1: by the end of the day. I have to get out,
7:45
Speaker 1: no check. I can't wait till tomorrow. I have to
7:47
Speaker 1: be out today. And then all of course the buyers
7:49
Speaker 1: are like, well I'm not buying. Everybody steps away and
7:52
Speaker 1: it's a trapdoor. But so let's say now the ETF
7:54
Speaker 1: selling drives bitcoin down to ten thousand, right, not twenty thousand,
7:59
Speaker 1: to ten thousand, and now you look at these charts, like,
8:01
Speaker 1: wait a minute, Bitcoin just went below the previous low.
8:05
Speaker 1: It's now lower than it was five years ago, six
8:08
Speaker 1: years ago. The trend is broken. I think at some
8:11
Speaker 1: point you're going to shake the confidence of the hodlers
8:17
Speaker 1: who are going to be like, you know, I don't
8:21
Speaker 1: know if it's going to come back again this maybe
8:23
Speaker 1: this is different, and they're going to want to sell.
8:26
Speaker 1: And as it goes down, then you get the fear.
8:29
Speaker 1: Then you get oh my god, I better get out
8:31
Speaker 1: before it's worthless. Right, even the diehards or like I'm
8:34
Speaker 1: not going down with this ship. I mean, there are
8:36
Speaker 1: some people that say they're going to go down with
8:38
Speaker 1: the ship, but let's see what happens when it's actually
8:40
Speaker 1: sinking and they're you know, up to their neck. Are
8:43
Speaker 1: they really going to you know, finish and drown or
8:46
Speaker 1: are they going to try to salvage something? Because you know,
8:50
Speaker 1: there are people too that still bought in at much
8:52
Speaker 1: lower prices, so they could still sell bitcoin at five
8:55
Speaker 1: thousand to make a profit. There's not that many people
8:57
Speaker 1: that left anymore that have a cost basis that low,
9:01
Speaker 1: but you know there are going to be some of them.
9:04
Speaker 1: Are they going to let that turn into a loss
9:06
Speaker 1: or are they going to sell? So I think the
9:07
Speaker 1: whole dynamic can change. Right now, everybody is very confident,
9:11
Speaker 1: very sure of themselves. They're all going to get rich.
9:15
Speaker 1: Everything else is a bunch of fud tuned it out.
9:18
Speaker 1: Guys like Peter Schiff or Warren Buffett or any person
9:22
Speaker 1: who talks sense is just a boomer who doesn't get it.
9:25
Speaker 1: You know, we're trapped in the stone age. I mean,
9:27
Speaker 1: I did laugh. I online always people Peter Shift is
9:30
Speaker 1: smart about so many things, but he's an idiot about bitcoin.
9:34
Speaker 1: It's like, you know, if I'm smart about everything else.
9:37
Speaker 1: Why would I be so dumb. That's like, well, if
9:39
Speaker 1: Peter only studied bitcoin, so you think I haven't studied it.
9:42
Speaker 1: You don't think I haven't looked at it. They just
9:44
Speaker 1: can't accept the fact that I'm a smart guy who
9:48
Speaker 1: has looked at it, who has studied it, and just doesn't,
9:51
Speaker 1: you know, believe it. I didn't drink the kool aid, right,
9:54
Speaker 1: I had a good look at it. I smelled it, right,
9:56
Speaker 1: I just didn't want to swallow it. Now, to answer
9:59
Speaker 1: your question, if people are going to look at it
10:03
Speaker 1: as an alternative to gold, yes, it could be a
10:06
Speaker 1: competitive threat to gold. There's some money that went into bitcoin,
10:10
Speaker 1: not all of it, not even the majority of it,
10:12
Speaker 1: but some of it that might have gone into gold
10:14
Speaker 1: had it not gotten into bitcoin. Now, gold is a
10:16
Speaker 1: much bigger market than bitcoin, so how much it might
10:19
Speaker 1: have affected the price, it's hard to say. Maybe gold
10:22
Speaker 1: would be one hundred or two hundred dollars higher. I
10:24
Speaker 1: don't know if there was no bitcoin. It's not like
10:26
Speaker 1: gold would be ten thousand or twenty thousand, but it
10:29
Speaker 1: could be a little bit higher. I don't think at
10:31
Speaker 1: the end of the day that really matters. I mean,
10:34
Speaker 1: I think if you look at gold and bitcoin, they
10:36
Speaker 1: more often trade in the opposite direction than in the
10:39
Speaker 1: same direction. I mean, bitcoin is more of an anti
10:41
Speaker 1: gold than at gold. Bitcoin is risk on, gold is
10:45
Speaker 1: more risk off. Bitcoin is speculative. Gold is a safe
10:48
Speaker 1: have in store of value. So I really don't see
10:52
Speaker 1: them as competitors. I see. I think bitcoin competes with
10:56
Speaker 1: AMC or you game game stop. You know we're a
11:01
Speaker 1: lottery or gambling on sports. I think that's where the
11:04
Speaker 1: bitcoin money might otherwise go if it wasn't in bitcoin.
11:08
Speaker 1: And I feel badly though, for the people who are
11:10
Speaker 1: buying it because they think it's a store value, they
11:12
Speaker 1: think it's an inflation hedge, they think it's digital gold.
11:15
Speaker 1: They're wrong, right, That's part of the marketing hype of bitcoin.
11:18
Speaker 1: That's part of the story, the sizzle that they're all selling.
11:22
Speaker 1: I think I'm looking at it objectively because there are
11:25
Speaker 1: other people that are in the gold industry who are
11:28
Speaker 1: also proponents of bitcoin. I mean, I see them. So
11:31
Speaker 1: it's not like you can't be in the gold business
11:34
Speaker 1: and you can't say, hey, buy gold and bitcoin. Look,
11:37
Speaker 1: I tell people to buy gold in stocks, and in
11:39
Speaker 1: fact I didn't start shift Gold until twenty ten. I
11:45
Speaker 1: started my broker dealer into nineteen ninety seven, nineteen ninety six,
11:50
Speaker 1: so for about thirteen or fourteen years I owned my
11:52
Speaker 1: own broker dealer. Yet I kept telling people to buy gold,
11:55
Speaker 1: not from me. I said, just go buy and buy it.
11:58
Speaker 1: I was trying to get people to invest with me
12:00
Speaker 1: in the stock market. I was a stockbroker, and I said,
12:03
Speaker 1: but you should also have some gold. And I knew
12:06
Speaker 1: that if people went out and bought gold, they couldn't
12:08
Speaker 1: send me that money to invest in the stock market.
12:10
Speaker 1: But I still recommended it. So it's not like I
12:13
Speaker 1: only recommend gold because I sell gold. I recommend gold
12:16
Speaker 1: because I think people should own it. And the reason
12:19
Speaker 1: I ended up starting a shift gold was because a
12:21
Speaker 1: lot of people who were buying gold after I told
12:24
Speaker 1: them to were getting ripped off by companies who were
12:27
Speaker 1: selling them overpriced numismatics instead of bullion. And so I
12:30
Speaker 1: set up my own companies so I knew that people
12:32
Speaker 1: wouldn't get ripped off, and so I was very consistent.
12:35
Speaker 1: I recommended it before I had Shift Gold, and I
12:39
Speaker 1: continue to recommend it after I started Shift Gold, so
12:42
Speaker 1: I could recommend I could tell people, hey, put five
12:44
Speaker 1: percent of your money in bitcoin if I believed in it,
12:47
Speaker 1: and I would have done it myself if I believed
12:49
Speaker 1: in it. You know, people tell me, oh, I think
12:51
Speaker 1: you secretly have bitcoin. Why would I keep it a secret.
12:54
Speaker 1: Nobody who owns bitcoin keeps it a secret. I mean,
12:57
Speaker 1: in fact, the minute you buy bitcoin, you have to
12:59
Speaker 1: tell everybody else to buy it. That's part of the thing.
13:01
Speaker 1: It's like they're like the Harry Kershners of the investment world.
13:03
Speaker 1: You have to like can proplem cause you have to
13:06
Speaker 1: convince new people to buy it. Right, Have ever go
13:09
Speaker 1: to dinner, have a thanksgiving some family members in bitcoin,
13:12
Speaker 1: telling everybody, yeah, they got to buy a bitcoin. I've
13:15
Speaker 1: noticed that with Tesla. When you buy a Tesla, you
13:17
Speaker 1: tell everyone else that you just bought a Tesla, and
13:19
Speaker 1: you convince other people to also buy a Tesla. Well
13:22
Speaker 1: that's a little bit different. Maybe you know, you know,
13:24
Speaker 1: you kind of really like your Tesla and you enjoy
13:26
Speaker 1: driving it and you're bragging about it, but you know
13:30
Speaker 1: you're not going to sell your Tesla to profit one day.
13:32
Speaker 1: Bitcoin needs new converts. Right. The way bitcoin goes up
13:37
Speaker 1: is people have to buy it, so you have to
13:39
Speaker 1: convince people. Now people will say, well, that's the same
13:41
Speaker 1: thing with every other asset. No, it's not. If I
13:44
Speaker 1: buy a dividend paying stock, nobody else has to buy
13:47
Speaker 1: those shares, I'll collect the dividends and make plenty of money.
13:50
Speaker 1: If I buy rental property, nobody has to buy my property.
13:54
Speaker 1: I'm collecting rent. By buy a bond, I'm collecting interest.
13:57
Speaker 1: I don't need new buyers to have a return on
14:00
Speaker 1: an investment. That's just not true. Now, Yes, if you
14:04
Speaker 1: buy a stock that doesn't pay any diffidends, you need
14:08
Speaker 1: the price to go up. But why would the price
14:10
Speaker 1: go up both in theory because the earnings came up
14:12
Speaker 1: and the company eventually paid a dividend because it had earnings.
14:16
Speaker 1: But bitcoin is never going to have any earnings, never
14:18
Speaker 1: going to pay a dividend. Now you can say, well,
14:20
Speaker 1: neither does gold. Well, gold doesn't have to. It's a commodity.
14:23
Speaker 1: You use it for things, just like every other commodity. Wheat, soybeans, corn, cotton.
14:30
Speaker 1: These things are all used. You can buy them and
14:33
Speaker 1: hold them and trade them, but they have an underlying use.
14:37
Speaker 1: Bitcoin does not. The people say, well, but I can
14:40
Speaker 1: give my bitcoin to somebody else. Yes, I know that
14:42
Speaker 1: you can give anything to somebody else. That doesn't mean
14:44
Speaker 1: it has a use, because what does the person you
14:47
Speaker 1: gave it to do with it? Nothing but give it
14:49
Speaker 1: to somebody else as a hot potato. And yes, you
14:53
Speaker 1: can say, well, but I can do it quickly. Well
14:55
Speaker 1: there's yes, you can transfer other things quickly too. But
14:57
Speaker 1: one of the reasons it's so quick and inexpensive to
15:01
Speaker 1: transfer bitcoin is because you're transferring nothing. It's a lot
15:04
Speaker 1: more expensive to transfer something than to transfer nothing. But
15:07
Speaker 1: there are twenty thousand other nothings, and most of them
15:10
Speaker 1: you can transfer quicker and cheaper than you can Bitcoin.