Latest / The Paul Barron Crypto Show / Cathie Wood BACKTRACKS on Bitcoin?!🚨What Happened?

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Cathie Wood BACKTRACKS on Bitcoin?!🚨What Happened? · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Kathy Wood is flip flopping on bitcoin today. I'm going
• 0:03
  Speaker 1: to explain exactly why and how. Let's just jump into it.
• 0:06
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• 0:59
  Speaker 1: to this is going to be a kind of a
• 1:01
  Speaker 1: clip parade of a podcast that Kathy Wood was involved
• 1:07
  Speaker 1: in along with a several bitcoin experts that we'll call them.
• 1:12
  Speaker 1: And there is a very interesting evolution that occurs during
• 1:16
  Speaker 1: this podcast.
• 1:17
  Speaker 2: Just so you guys are aware, the first clip.
• 1:19
  Speaker 1: I'm going to play is when she was being interviewed
• 1:22
  Speaker 1: by Andrew Sorkin and the direct question. And I want
• 1:26
  Speaker 1: you to listen to this clip very closely because it
• 1:29
  Speaker 1: will relate to some of the clips we're going to
• 1:31
  Speaker 1: play after this.
• 1:32
  Speaker 2: That'll make sense.
• 1:33
  Speaker 3: Take a look, stable coins are usurping part of the
• 1:38
  Speaker 3: role that we thought bitcoin would play. Our bullish forecast
• 1:41
  Speaker 3: out there is one point five million. Given what's happening
• 1:44
  Speaker 3: to stable coins, I think we could take maybe three
• 1:49
  Speaker 3: hundred thousand dollars off of that bullish case. Digital gold
• 1:52
  Speaker 3: could use serve half of that market. Kathy, this is
• 1:56
  Speaker 3: news because this is a different expectation.
• 2:00
  Speaker 1: This was Sorkin just kind of responding because he just
• 2:03
  Speaker 1: asked her, what's gonna you know, how's the market going
• 2:05
  Speaker 1: in this case? She gave that answer and then, of course,
• 2:09
  Speaker 1: and I think she got a lot of blackclash even
• 2:12
  Speaker 1: on when I aired that clip the first time. I
• 2:14
  Speaker 1: even said during that podcast that we did, I said,
• 2:18
  Speaker 1: I think Kathy got the call, and you know what
• 2:20
  Speaker 1: that means, You get the call because there's a lot
• 2:23
  Speaker 1: of pushback.
• 2:23
  Speaker 2: From the community.
• 2:24
  Speaker 1: Here is the podcast, the first clip out of that
• 2:27
  Speaker 1: podcast of where they basically got her to address this
• 2:32
  Speaker 1: interview with Sorkin.
• 2:33
  Speaker 2: Take a look, and.
• 2:35
  Speaker 3: Boy Andrew Ross, Sorkin ran with it when when I
• 2:38
  Speaker 3: said on CNBC squawk Box, he ran with that. But
• 2:44
  Speaker 3: I had to put that in context. And so the
• 2:48
  Speaker 3: digital gold role of bitcoin, we think, is that much
• 2:53
  Speaker 3: more valuable and probably is more than offset what I
• 2:58
  Speaker 3: just said about stable coin. So I think we're sorting
• 3:01
  Speaker 3: through that. I think the party has just begun. As
• 3:06
  Speaker 3: we say, truth wins out, and I know a lot
• 3:08
  Speaker 3: of people are discouraged right now, especially with the dapts,
• 3:12
  Speaker 3: especially with the dads.
• 3:15
  Speaker 1: All Right, So that was Kathy kind of defending her position.
• 3:18
  Speaker 1: I don't get what she was talking about there, because
• 3:21
  Speaker 1: Sorkin did not really penterr against the.
• 3:23
  Speaker 2: Wall on that.
• 3:23
  Speaker 1: I think it was just like it was news that
• 3:26
  Speaker 1: she was giving up that information that she thought digital
• 3:30
  Speaker 1: gold and I should say USDC rl usd all stable
• 3:34
  Speaker 1: coins were taking a little bit of wind out of
• 3:36
  Speaker 1: the market of digital gold being bitcoin. They go further
• 3:40
  Speaker 1: in the podcast, and in this particular one that they
• 3:43
  Speaker 1: try to convince Kathy further that this is the right path.
• 3:48
  Speaker 2: Take a look.
• 3:49
  Speaker 3: I think this is why Andrew Ross Sorkin was so
• 3:52
  Speaker 3: focused on this idea of stable coins. Wait a minute,
• 3:55
  Speaker 3: you said bitcoin. You've told me in the best that
• 3:58
  Speaker 3: would be bitcoin's role. It is true, though, isn't it
• 4:01
  Speaker 3: that stable coins are usurping one of the rules of bitcoin.
• 4:05
  Speaker 3: But you're seeing evidence of bitcoin being used as a
• 4:10
  Speaker 3: means of exchange, are you maybe you could talk about
• 4:13
  Speaker 3: that a little bit.
• 4:14
  Speaker 4: Absolutely. I go to these places and it's being used
• 4:18
  Speaker 4: as a medium exchange. But most of the people don't
• 4:20
  Speaker 4: know what you know what we know on this called all.
• 4:23
  Speaker 1: Right, So just to make clear, all of the people
• 4:25
  Speaker 1: on this podcast, these are bitcoin max these bitcoiners, if
• 4:28
  Speaker 1: whatever you want to call people that just truly believe
• 4:31
  Speaker 1: in the evolution of where bitcoin is going. And this
• 4:35
  Speaker 1: is something that we track pretty heavily. And that is
• 4:38
  Speaker 1: the narrative that is being spewed out there on social
• 4:40
  Speaker 1: because crypto Twitter, I would say, is one of the
• 4:42
  Speaker 1: most influential places for investors and in general crypto curious
• 4:48
  Speaker 1: and also crypto natives to get information. So I just
• 4:50
  Speaker 1: you know, kind of went through This is a good
• 4:52
  Speaker 1: example of the kind of statements that are being made.
• 4:55
  Speaker 3: Now.
• 4:56
  Speaker 2: I want to show you something.
• 4:56
  Speaker 1: Lightning Network enables fast and low con cost transactions on
• 4:59
  Speaker 1: the big coin network by creating a second layer. Cutting paste.
• 5:03
  Speaker 1: Here's another one. Cutting paste, here's another one. And cutting
• 5:08
  Speaker 1: paste here's another one. So the point being is that
• 5:10
  Speaker 1: it is fighting against a big, big narrative going forward.
• 5:14
  Speaker 1: Cutting paste, there's another one. Cut and paste, there's another one.
• 5:17
  Speaker 1: You get the point, all right. The other one I
• 5:19
  Speaker 1: want to hit on is this tweet right here, this
• 5:20
  Speaker 1: of course Steak and Shake saying that. And remember Steak
• 5:23
  Speaker 1: and Shake big and made a big announcement saying we're
• 5:25
  Speaker 1: accepting bitcoin. I still have not figured out to pay
• 5:28
  Speaker 1: in bitcoin on Steak and Shake. I don't think they're
• 5:31
  Speaker 1: accepting any real amount of bitcoin. This is something I'll
• 5:34
  Speaker 1: call the Steak and Shake. You're welcome to come on.
• 5:36
  Speaker 1: If you're the CEO of Steak and Shake, I challenge
• 5:38
  Speaker 1: you to come on this show. Show me the numbers,
• 5:41
  Speaker 1: show me the real numbers if you and then show
• 5:43
  Speaker 1: me the real numbers of people who say that they
• 5:46
  Speaker 1: would accept bitcoin as pay. And I'm not ranking on bitcoin.
• 5:51
  Speaker 1: The point is is it's not designed as a medium
• 5:53
  Speaker 1: of exchange. It is an asset that is speculative that
• 5:56
  Speaker 1: you invest in, just like any other thing. You know,
• 5:58
  Speaker 1: I wouldn't take Tesla shares even though I love test
• 6:00
  Speaker 1: I wouldn't take Salona shares, even though I love Salona.
• 6:02
  Speaker 1: Those are different kinds of scenarios that play out here. Now,
• 6:05
  Speaker 1: if you look at some of the visuals, this is
• 6:07
  Speaker 1: the Lightning network which they reference so often, and Jeff
• 6:11
  Speaker 1: has talked about that many times. That was the guy
• 6:13
  Speaker 1: that was on the last clip, and you can kind
• 6:15
  Speaker 1: of see what's happening. It is declining, guys. The number
• 6:18
  Speaker 1: of nodes are starting to decline, and the stability does
• 6:21
  Speaker 1: not look good overall. Further into this, Lightning network capacity
• 6:25
  Speaker 1: also starting to dip. Further into just some general variable
• 6:31
  Speaker 1: information around the Lightning network. Lightning network transaction volume is elusive.
• 6:37
  Speaker 1: Most activity happens off chain and privately without broadcasting to
• 6:40
  Speaker 1: the Bitcoin blockchain. So that's another problem that I think exists.
• 6:43
  Speaker 1: Key metrics like total counts values only visible to the
• 6:47
  Speaker 1: node operators, not publicly aggregated. Why why isn't that information
• 6:53
  Speaker 1: out there? I mean, this is the core asset of
• 6:55
  Speaker 1: crypto and this is one of the core pillars of
• 6:58
  Speaker 1: what this is designed to do. So again it goes
• 7:02
  Speaker 1: back to pointing at simple economics around all of this.
• 7:07
  Speaker 1: Last thing I want to hit on was this tweet
• 7:09
  Speaker 1: right here, and I want to focus on this right here.
• 7:10
  Speaker 1: There's more monthly economic activity on light coin, which is
• 7:14
  Speaker 1: a carbon copy of Bitcoin that's well accepted for payments.
• 7:18
  Speaker 1: Then look at this right here, because this is Ripple
• 7:22
  Speaker 1: and the stable coin RLUSD, which continues.
• 7:25
  Speaker 2: To go up.
• 7:26
  Speaker 1: And remember this is a small, small stable coin in
• 7:29
  Speaker 1: comparison and very young also, and in comparison to what
• 7:33
  Speaker 1: we've seen out there within Bitcoin in terms of transactions,
• 7:36
  Speaker 1: starting to dwarf that as well. Give that another twelve years,
• 7:40
  Speaker 1: thirteen years. Oh wow, things are going to go from there,
• 7:43
  Speaker 1: all right, So let's get over to our next clip,
• 7:45
  Speaker 1: because this is proof that Kathy is a better marketer
• 7:50
  Speaker 1: than even the Bitcoin Maxi's here's why.
• 7:52
  Speaker 2: I take a look.
• 7:53
  Speaker 4: If you're at zero still on bitcoin, I can't take
• 7:56
  Speaker 4: you seriously anymore.
• 7:59
  Speaker 3: And I think you're saying, Jeff, is we hit escape velocity?
• 8:04
  Speaker 5: Yeah, that's escape velocity, and I'm going to start using
• 8:06
  Speaker 5: that instead of just maybe some some insults.
• 8:10
  Speaker 1: Ninety six percent of the planet have not invested in crypto,
• 8:14
  Speaker 1: so you're basically calling ninety six people out of one
• 8:17
  Speaker 1: hundred buffoons. And that's the problem that Maxi's I always
• 8:21
  Speaker 1: get in arguments with Stop insulting me because I don't
• 8:24
  Speaker 1: invest enough in your asset.
• 8:26
  Speaker 2: That you love.
• 8:27
  Speaker 1: All right, I get it completely. I understand you're talking
• 8:30
  Speaker 1: your book. I would do the same thing. The point
• 8:32
  Speaker 1: being is there's no reason to call people bad names.
• 8:35
  Speaker 1: So let's go over to another clip here, and this
• 8:37
  Speaker 1: is one that breaks down a little bit more around
• 8:40
  Speaker 1: bitcoiners trying to explain how it's used from peer for
• 8:43
  Speaker 1: peer to peer.
• 8:44
  Speaker 2: Take a look.
• 8:45
  Speaker 5: So Kibara is the largest informal settlement another word for
• 8:48
  Speaker 5: that as a slum in all of Africa, about six
• 8:50
  Speaker 5: hundred thousand people living in a slum within the within
• 8:54
  Speaker 5: the confines of Nairobi. It's also there's an amazing app
• 8:57
  Speaker 5: in Kenya called Tomdo.
• 8:59
  Speaker 4: Here live there too?
• 9:00
  Speaker 5: Berlin Bitcoin Berlin yet.
• 9:02
  Speaker 4: And people that take my breath away with what they're building.
• 9:06
  Speaker 4: Can't even see they can't even see how fast this
• 9:08
  Speaker 4: is moving because they're not accessing that same type of talent.
• 9:13
  Speaker 1: Not known assets, not known projects that are they should
• 9:18
  Speaker 1: be an asset class that has this much brevity in
• 9:21
  Speaker 1: traditional finance now, should have tier one projects easily Tier
• 9:28
  Speaker 1: one projects. Kathy went on because you kind of saw
• 9:32
  Speaker 1: a little bit of I think a little bit of
• 9:33
  Speaker 1: a doubt in her eyes when she was hearing that
• 9:35
  Speaker 1: kind of that rundown from the litany of people around
• 9:39
  Speaker 1: her that were you know, I feel like it was
• 9:40
  Speaker 1: like one v twenty was that one v five in.
• 9:43
  Speaker 2: This particular case. But here's a clip where.
• 9:46
  Speaker 1: She is not convinced and she walks back the statement again.
• 9:50
  Speaker 3: Take a look on the light lightning network. I remember
• 9:53
  Speaker 3: we had a bitcoin brainstorm with Roast Beef and we
• 9:56
  Speaker 3: were talking about the lightning network in Africa I'm going
• 10:00
  Speaker 3: to say about four years ago, and it really did
• 10:03
  Speaker 3: not take off the way we expected. So very interesting
• 10:07
  Speaker 3: and interested in seeing how that evolves. But I'm going
• 10:10
  Speaker 3: to go back to you know, I'm just thinking about
• 10:13
  Speaker 3: these merchants very practically. I think if block enables stable coins.
• 10:22
  Speaker 3: If there's demand pull, he will and Block will satisfy it.
• 10:28
  Speaker 3: And I think there is going to be demand pull
• 10:31
  Speaker 3: from stable coins, So I do think this is going
• 10:36
  Speaker 3: to be a little bit of a tug of war.
• 10:37
  Speaker 3: From a merchant point of view, I think they are
• 10:40
  Speaker 3: asking for stable coins.
• 10:41
  Speaker 1: Just say it, Kathy, just say the word. It's okay,
• 10:44
  Speaker 1: it's okay to say the words. Stable coins will win
• 10:47
  Speaker 1: the battle on payments. It is that simple. I think
• 10:51
  Speaker 1: you also have another issue, which is this deminimous tax
• 10:54
  Speaker 1: that of course is going to play into this because
• 10:56
  Speaker 1: that will also potentially kill this kind of scenario.
• 11:00
  Speaker 2: Like take a look at this one.
• 11:02
  Speaker 5: Do you think the deminimous tax exemption comes into play?
• 11:05
  Speaker 3: Why hasn't that the deminimous ruling. Why hasn't that moved forward?
• 11:10
  Speaker 3: Why and how will it? How will it that? See,
• 11:14
  Speaker 3: this is the biggest question and why I did say
• 11:16
  Speaker 3: that about stable coins. Jack needs to get in there
• 11:19
  Speaker 3: and Block to a lobby and say, hey, this is
• 11:24
  Speaker 3: really important for our customer base, which is, you know,
• 11:28
  Speaker 3: it tends to be very small business or low tomit
• 11:31
  Speaker 3: income people.
• 11:32
  Speaker 5: I have seen that they've posted something on Block's website.
• 11:35
  Speaker 5: I don't have the exact link, but I think that
• 11:37
  Speaker 5: they are getting ready to do that. I don't think
• 11:39
  Speaker 5: this is going to be something that gets included in
• 11:41
  Speaker 5: market structure, but given that President Trump was thinking about
• 11:44
  Speaker 5: including it in the One Big Beautiful Bill, we might
• 11:46
  Speaker 5: see it put into some other omnipus bill.
• 11:48
  Speaker 2: I doubt it.
• 11:49
  Speaker 1: I don't think we will. And you look at Block
• 11:52
  Speaker 1: launching their Bitcoin as every Day Money campaign. This is
• 11:55
  Speaker 1: one that I don't remember happening and I have not well,
• 11:59
  Speaker 1: you know, and normally I would say Block is a
• 12:01
  Speaker 1: fairly good marketer, but they just did not necessarily make
• 12:04
  Speaker 1: it to the Maybe they're doing it in DC or
• 12:07
  Speaker 1: try to get an awareness around it, but it just
• 12:09
  Speaker 1: did not really resonate from a national standpoint. And let's
• 12:12
  Speaker 1: just remember that Block is one of about fifty different
• 12:16
  Speaker 1: purveyors out there in the category of pos if you're
• 12:20
  Speaker 1: getting into retail and also online payments that matter most,
• 12:24
  Speaker 1: and I think we haven't seen a crack in stripe,
• 12:27
  Speaker 1: we haven't seen a crack in toast many of the
• 12:30
  Speaker 1: companies that are out there driving retail point of sale
• 12:33
  Speaker 1: that I think is the key thing. On the other hand,
• 12:37
  Speaker 1: Stable coins. That's a different story. PayPal's already launched with one,
• 12:41
  Speaker 1: Ripple is starting to make moves on one, USDC is
• 12:44
  Speaker 1: getting partnerships. It is clear this has got no other
• 12:47
  Speaker 1: way to go. I think the bitcoiners are going to
• 12:50
  Speaker 1: have to give up on the idea of using it
• 12:51
  Speaker 1: as payment. Kathy would also throw some hopium prediction at
• 12:56
  Speaker 1: these same bitcoiners.
• 12:57
  Speaker 2: Take a look.
• 12:58
  Speaker 3: President Trump does not want to be a lame duck,
• 13:02
  Speaker 3: So I have a feeling one make sure we get
• 13:05
  Speaker 3: that deminimous ruling through. But also it seems as though
• 13:11
  Speaker 3: there's been reticence about actually buying bitcoin for the strategic reserves.
• 13:18
  Speaker 3: I actually think they will start buying because I think
• 13:23
  Speaker 3: this will help Trump in a couple of ways the
• 13:25
  Speaker 3: midterm elections. Yes, and another reason, of course is his
• 13:31
  Speaker 3: family is all in on bitcoin and and other crypto assets.
• 13:36
  Speaker 3: But the most important one is he does not want
• 13:38
  Speaker 3: to be a lame duck.
• 13:40
  Speaker 2: I think a good way to start would be buying
• 13:41
  Speaker 2: micro Strategy's six bitcoin.
• 13:44
  Speaker 5: So if you want to get to a million, that's
• 13:46
  Speaker 5: an easy story, right. Yeah.
• 13:51
  Speaker 1: Could there be some activity I don't think out of
• 13:54
  Speaker 1: DC that would be going after micro Strategy in general.
• 13:59
  Speaker 1: I don't get that one, and I don't think a
• 14:00
  Speaker 1: midterm play here is going to be in as well.
• 14:04
  Speaker 1: So I'm kind of curious where Kathy was going. Maybe
• 14:06
  Speaker 1: in a future introvers she'll expand on that a little
• 14:08
  Speaker 1: bit more. She's probably thinking through some other aspects of this,
• 14:13
  Speaker 1: I don't know for sure. This last clip goes into
• 14:17
  Speaker 1: her claiming that the big beautiful bill and corporate tax
• 14:21
  Speaker 1: cuts are going to esper the economy going forward.
• 14:24
  Speaker 2: Take a look.
• 14:25
  Speaker 3: Well, the second thing that I think we'll see next
• 14:27
  Speaker 3: year is a big surprise in GDP growth because of
• 14:31
  Speaker 3: the ob three and the corporate tax deductions, Like the
• 14:35
  Speaker 3: effective tax rate has dropped to ten percent, which is
• 14:39
  Speaker 3: the lowest in the world for any developed country, so
• 14:42
  Speaker 3: you get huge tax refunds. So I think we're going
• 14:46
  Speaker 3: to see massive growth and the deficit. They're going to
• 14:50
  Speaker 3: have more degrees of freedom in which to work.
• 14:52
  Speaker 1: Now, well, okay, so I'm going to agree with her
• 14:55
  Speaker 1: in one component of that, And what I mean by
• 14:58
  Speaker 1: that is, I don't know that we're going to see
• 15:02
  Speaker 1: an economy spur out of these kind of scenarios from
• 15:05
  Speaker 1: the tax cuts. What I do think we'll see some
• 15:07
  Speaker 1: productivity lift. Does it happen this year in twenty six
• 15:11
  Speaker 1: is the real question mark. It's going to have to
• 15:14
  Speaker 1: happen pretty quickly, and I think especially that would be
• 15:17
  Speaker 1: one of the things that could help the administration push
• 15:20
  Speaker 1: through the situation, at least in terms of a midterm
• 15:24
  Speaker 1: win for the Republicans. But there are so many things
• 15:27
  Speaker 1: playing into this, guys that I think we continue to
• 15:31
  Speaker 1: watch this very closely. And the strategic narrative that starts
• 15:35
  Speaker 1: to go around all of that, in summary is important
• 15:38
  Speaker 1: because if wood starts to get more shaky on the
• 15:42
  Speaker 1: grounds of bitcoin as a asset that is more utilitarian
• 15:47
  Speaker 1: and instead it is truly digital gold, that starts to
• 15:50
  Speaker 1: change the narratives for a lot of companies and also
• 15:53
  Speaker 1: a lot of investors going in. So make sure and
• 15:55
  Speaker 1: stick around for more like that. If you like this video,
• 16:04
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• 16:07
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• 16:10
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