1 00:00:00,160 --> 00:00:03,120 Speaker 1: Bitcoin. It's all over the news, but what is it? 2 00:00:03,640 --> 00:00:06,320 Speaker 1: You hear lots of different things. It's lots of different 3 00:00:06,360 --> 00:00:09,119 Speaker 1: things to lots of different people. People talk about it 4 00:00:09,160 --> 00:00:12,080 Speaker 1: being money, a medium of exchange. Some people say it's 5 00:00:12,160 --> 00:00:14,200 Speaker 1: only a store of value and will never be a 6 00:00:14,240 --> 00:00:17,400 Speaker 1: medium exchange. Well, I'm here to tell you that it's 7 00:00:17,560 --> 00:00:20,600 Speaker 1: all of that and more. I want to break down 8 00:00:20,800 --> 00:00:24,200 Speaker 1: exactly how we can use this as a store vibe. Today, 9 00:00:24,200 --> 00:00:27,040 Speaker 1: we're going to talk about sort of where it's been, 10 00:00:27,080 --> 00:00:31,080 Speaker 1: but more importantly, where it's going into the future. And 11 00:00:31,240 --> 00:00:34,639 Speaker 1: I'm going to break down a strategy of how I've 12 00:00:34,720 --> 00:00:36,919 Speaker 1: figured it out a way how you can buy this 13 00:00:37,080 --> 00:00:41,480 Speaker 1: scarce asset you could own it forever, literally retire off 14 00:00:41,520 --> 00:00:45,200 Speaker 1: of it, and still continue to fund your kids, your grandkids, 15 00:00:45,240 --> 00:00:47,800 Speaker 1: your great grandkids, and so much. Further, this is a 16 00:00:47,840 --> 00:00:51,200 Speaker 1: strategy that only the ultra rich have used up until now, 17 00:00:51,479 --> 00:00:55,320 Speaker 1: but with a technology like bitcoin, it becomes available to everybody. 18 00:00:55,560 --> 00:00:57,080 Speaker 1: And that's exactly what we're going to talk about today. 19 00:00:57,080 --> 00:00:58,480 Speaker 1: If youre just tune in and you're listening to the 20 00:00:58,560 --> 00:01:01,280 Speaker 1: Mark Moss Show, we talk about the world do the 21 00:01:01,320 --> 00:01:04,679 Speaker 1: lens of politics, finance, and technology, and today we're going 22 00:01:04,720 --> 00:01:07,880 Speaker 1: to talk about finance and technology, of course, how bitcoin 23 00:01:07,959 --> 00:01:12,600 Speaker 1: is revolutionizing the finance industry, a technology revolutionizing that, and 24 00:01:12,680 --> 00:01:16,280 Speaker 1: how you and I can use this to build wealth 25 00:01:16,400 --> 00:01:19,440 Speaker 1: for generations, generational wealth. Now, before we get into the 26 00:01:19,440 --> 00:01:22,399 Speaker 1: exact strategies and how you can employ that, we'll talk 27 00:01:22,440 --> 00:01:25,360 Speaker 1: a little bit about sort of where it's at right 28 00:01:25,400 --> 00:01:28,160 Speaker 1: now and where it's going. So we'll start there now. 29 00:01:28,160 --> 00:01:30,360 Speaker 1: First of all, if you're not aware, I don't know, 30 00:01:30,400 --> 00:01:32,360 Speaker 1: if you've been living, you know, in a bomb shelter, 31 00:01:32,480 --> 00:01:36,039 Speaker 1: underground or something like that. Then if not, then you 32 00:01:36,240 --> 00:01:39,880 Speaker 1: already know that bitcoin has been making a massive gains. 33 00:01:39,959 --> 00:01:43,120 Speaker 1: Right we had the ETF that came out recently, and 34 00:01:43,240 --> 00:01:44,959 Speaker 1: leading up to the ETF, we saw the price of 35 00:01:44,959 --> 00:01:47,640 Speaker 1: bitcoin continue to rise over and over and over, and 36 00:01:47,920 --> 00:01:50,640 Speaker 1: it's not back to its previous all time high yet, 37 00:01:50,680 --> 00:01:53,240 Speaker 1: but it's close. It's certainly knocking on the door. But 38 00:01:54,280 --> 00:01:56,840 Speaker 1: the point I want to hit on first is that 39 00:01:57,080 --> 00:02:00,400 Speaker 1: it's not back to its new all time to a 40 00:02:00,480 --> 00:02:04,240 Speaker 1: new all time I priced in US dollars. Now, this 41 00:02:04,320 --> 00:02:06,760 Speaker 1: is one of the reasons why bitcoin or something like 42 00:02:06,800 --> 00:02:10,760 Speaker 1: bitcoin is important a neutral reserve asset, more importantly, not 43 00:02:10,840 --> 00:02:13,560 Speaker 1: just a neutral reserve asset. Gold was a neutral reserve asset, 44 00:02:14,919 --> 00:02:17,359 Speaker 1: A neutral reserve asset. When I say when I say that, 45 00:02:17,400 --> 00:02:19,200 Speaker 1: I mean an asset that nobody can control. Right. The 46 00:02:19,200 --> 00:02:23,480 Speaker 1: problem is is that we use money dollars or euros 47 00:02:23,760 --> 00:02:28,400 Speaker 1: or yuan or yen or payss as a unit of account. 48 00:02:28,560 --> 00:02:31,480 Speaker 1: Let me just back it up. Okay. Money is an 49 00:02:31,560 --> 00:02:37,000 Speaker 1: evolutionary process. It's emergent. It's an evolutionary path that could 50 00:02:37,320 --> 00:02:40,839 Speaker 1: make it not always does so. Money what we use 51 00:02:40,840 --> 00:02:44,240 Speaker 1: as money, something to store our energy, our value, store 52 00:02:44,280 --> 00:02:47,560 Speaker 1: our wealth in and use as trading as a medium 53 00:02:47,560 --> 00:02:49,640 Speaker 1: exchange to get the goods and service that we want 54 00:02:49,960 --> 00:02:54,840 Speaker 1: is has emerged and evolved throughout history. We've had lots 55 00:02:54,880 --> 00:02:58,120 Speaker 1: of things be money or medium of exchange or stores 56 00:02:58,160 --> 00:03:01,480 Speaker 1: of value. And those would be rocks, those would be feathers, 57 00:03:01,600 --> 00:03:05,840 Speaker 1: those would be seashells, lots of things. Now gold emerged 58 00:03:05,840 --> 00:03:07,680 Speaker 1: as that. But let me give you this evolutionary path. 59 00:03:07,720 --> 00:03:11,160 Speaker 1: It starts with first a collectible. Wow, look at this 60 00:03:11,200 --> 00:03:13,320 Speaker 1: cool rock. Look at this cool shell. It's pretty cool. 61 00:03:13,880 --> 00:03:16,040 Speaker 1: I like it. I'm gonna keep it. Now. It starts 62 00:03:16,080 --> 00:03:19,120 Speaker 1: as a collectible. Maybe if if it has the right 63 00:03:19,120 --> 00:03:22,720 Speaker 1: actributes it could evolve from a collectible to a store 64 00:03:22,720 --> 00:03:26,480 Speaker 1: of value. So we see today, like my kids collected 65 00:03:26,520 --> 00:03:28,440 Speaker 1: all kinds of things when their little kids. One of 66 00:03:28,440 --> 00:03:30,480 Speaker 1: the things that my daughters loved to collect with these 67 00:03:31,200 --> 00:03:34,119 Speaker 1: little pet shops. There's like little tiny figurines, like little 68 00:03:34,160 --> 00:03:37,840 Speaker 1: bobble heads. We had hundreds of these things. They collected them, right, 69 00:03:38,040 --> 00:03:40,080 Speaker 1: every new release that came out, they had to have it. 70 00:03:40,360 --> 00:03:43,520 Speaker 1: But it never evolved to a store of value. Even 71 00:03:43,560 --> 00:03:45,760 Speaker 1: though we had one hundred, we had like containers full 72 00:03:45,760 --> 00:03:48,680 Speaker 1: of these things. We never stored our wealth in them, right, 73 00:03:48,760 --> 00:03:52,480 Speaker 1: they're not worth anything. But some collectibles do become a 74 00:03:52,480 --> 00:03:55,520 Speaker 1: store of value. So baseball cards, collectibles that a lot 75 00:03:55,560 --> 00:04:00,680 Speaker 1: of people store their wealth in, watches, fine art, old cars, painting, right, 76 00:04:00,800 --> 00:04:03,880 Speaker 1: you get that. Pokemon cards, even people store their wealth 77 00:04:03,880 --> 00:04:07,400 Speaker 1: in those, all right. So some of these collectibles, not 78 00:04:08,320 --> 00:04:11,360 Speaker 1: the pet shops, but some collectibles do make it to 79 00:04:11,400 --> 00:04:15,400 Speaker 1: the evolutionary path of becoming a store value. Then, maybe 80 00:04:15,560 --> 00:04:18,240 Speaker 1: not all of them, most of them not, but if 81 00:04:18,279 --> 00:04:20,400 Speaker 1: they have the right attributes, they could evolve to the 82 00:04:20,400 --> 00:04:24,520 Speaker 1: next stage, which is a medium of exchange. All right. Now, 83 00:04:24,680 --> 00:04:26,960 Speaker 1: in order to evolve into that, it has to have 84 00:04:26,960 --> 00:04:34,960 Speaker 1: the right attributes of moneiness. So that's divisibility, portability, fungibility, sellability, 85 00:04:35,080 --> 00:04:37,720 Speaker 1: things like that. Right, So, like a pet shop isn't 86 00:04:37,720 --> 00:04:40,200 Speaker 1: going to make a good form of money because it's 87 00:04:40,240 --> 00:04:43,320 Speaker 1: not divisible. It's just one pet shop. A cow can't 88 00:04:43,360 --> 00:04:44,880 Speaker 1: be a good form of money because a cow is 89 00:04:44,880 --> 00:04:47,680 Speaker 1: not divisible. A cow is not portable. How do I 90 00:04:47,680 --> 00:04:51,280 Speaker 1: transport a cow? A banana is not durable. I can't 91 00:04:51,279 --> 00:04:54,200 Speaker 1: store my wealth and bananas because they're gonna go bad. Okay, 92 00:04:54,360 --> 00:04:56,600 Speaker 1: if it evolves to a medium exchange, then eventually it 93 00:04:56,680 --> 00:04:59,080 Speaker 1: could evolve to what we call a unit of account 94 00:04:59,080 --> 00:05:01,280 Speaker 1: where we start to measure things in it. And so 95 00:05:01,320 --> 00:05:03,080 Speaker 1: now we're back to the measuring things. You have to 96 00:05:03,160 --> 00:05:10,880 Speaker 1: understand that everything in life is a trade and feat currency. Basically, 97 00:05:10,920 --> 00:05:13,479 Speaker 1: the dollar or whatever currency y're end is one half 98 00:05:13,520 --> 00:05:16,000 Speaker 1: of every transaction. So how much is a gallon of 99 00:05:16,000 --> 00:05:21,000 Speaker 1: gas for sixty nine four dollars and sixty nine cents 100 00:05:21,040 --> 00:05:24,960 Speaker 1: per gallon? How much is a house three hundred thousand dollars? 101 00:05:25,200 --> 00:05:28,200 Speaker 1: How much is a steak dinner sixty dollars? Right, so 102 00:05:28,200 --> 00:05:33,040 Speaker 1: everything's measured in that unit of account. But here's the problem. 103 00:05:33,360 --> 00:05:35,719 Speaker 1: One we have lots of units of account, so we 104 00:05:35,760 --> 00:05:40,480 Speaker 1: have dollars, un one, pesos, et cetera. But more importantly 105 00:05:40,560 --> 00:05:45,039 Speaker 1: number two is that each one of those denominators in 106 00:05:45,080 --> 00:05:49,200 Speaker 1: the equation is constantly being manipulated adjusted. It's like I'm 107 00:05:49,200 --> 00:05:51,640 Speaker 1: trying to build a house with an elastic tape measure. 108 00:05:52,080 --> 00:05:54,400 Speaker 1: So back to what I was talking about. Sorry, long, 109 00:05:54,760 --> 00:05:58,680 Speaker 1: long way around here. The US bitcoin has not made 110 00:05:58,720 --> 00:06:01,520 Speaker 1: a new all time high priced in US dollars, but 111 00:06:01,600 --> 00:06:05,520 Speaker 1: it did just hit new all time highs in fourteen 112 00:06:05,720 --> 00:06:10,560 Speaker 1: different countries this week. Not one, not two, not three. 113 00:06:10,720 --> 00:06:15,000 Speaker 1: We're talking about fourteen different countries that it hit this week, 114 00:06:15,240 --> 00:06:17,120 Speaker 1: so it's a pretty big deal. Now, again, this kind 115 00:06:17,120 --> 00:06:19,600 Speaker 1: of highlights the point of the problem that we have, 116 00:06:19,680 --> 00:06:21,720 Speaker 1: which is one of the parts that bitcoin is here 117 00:06:21,760 --> 00:06:26,000 Speaker 1: to solve, is that we don't have a neutral reserve asset. 118 00:06:26,120 --> 00:06:28,719 Speaker 1: Everybody is managing on their own. Now, what are the 119 00:06:28,720 --> 00:06:37,920 Speaker 1: fourteen countries that hit Argentina, Barandi, Congo, Egypt, Ghana, Japan, Laos, Lebanon, Malawi, Nigeria, Pakistan, 120 00:06:38,000 --> 00:06:42,040 Speaker 1: Sierra Leone, Sudan, and Turkey. So each one of those 121 00:06:42,120 --> 00:06:45,760 Speaker 1: nations just hit a new all time high in bitcoin. 122 00:06:46,480 --> 00:06:50,680 Speaker 1: The dollar, My good friend Brent Johnson, Santaio Capital. We've 123 00:06:50,680 --> 00:06:53,120 Speaker 1: had him on my main YouTube channel many times. He 124 00:06:53,160 --> 00:06:56,200 Speaker 1: talks about the dollar milkshake theory, and the dollar milkshake 125 00:06:56,200 --> 00:06:59,120 Speaker 1: theories at the dollar will suck the liquidity out of 126 00:06:59,200 --> 00:07:02,599 Speaker 1: all the other currenturrencies, and that's exactly what's happening. So 127 00:07:02,640 --> 00:07:05,960 Speaker 1: the dollars like this dollar milkshake, it's draining liquidy out 128 00:07:05,960 --> 00:07:08,440 Speaker 1: of all the other FEA currencies. And so we're seeing 129 00:07:08,480 --> 00:07:14,400 Speaker 1: these currencies as I've just mentioned Lebanon, Turkey, Peru, Venezuela, Argentina, 130 00:07:14,800 --> 00:07:18,920 Speaker 1: all of these currencies are collapsing as the dollars getting 131 00:07:18,960 --> 00:07:22,679 Speaker 1: stronger and stronger and stronger. But the dollars getting stronger 132 00:07:22,680 --> 00:07:27,200 Speaker 1: and stronger and stronger against other currencies, it's not getting 133 00:07:27,240 --> 00:07:30,800 Speaker 1: stronger against other assets. That is a very key piece 134 00:07:30,800 --> 00:07:32,440 Speaker 1: that you have to hit on. But back to this 135 00:07:32,480 --> 00:07:34,720 Speaker 1: point that we're talking about. So we've seen it now, 136 00:07:35,200 --> 00:07:38,360 Speaker 1: as I said, fourteen currencies, it's got back to a 137 00:07:38,360 --> 00:07:41,520 Speaker 1: new all time high. Another key piece that I want 138 00:07:41,520 --> 00:07:43,600 Speaker 1: to talk about bitcoin just real quickly. A lot of 139 00:07:43,640 --> 00:07:46,200 Speaker 1: people will think that it's not a good store value. 140 00:07:46,840 --> 00:07:48,520 Speaker 1: How can it be a good store value when it's 141 00:07:48,600 --> 00:07:50,560 Speaker 1: very volatile. Well, first of all, volatile means that it 142 00:07:50,600 --> 00:07:54,480 Speaker 1: goes up and down, So I guess the store value 143 00:07:54,480 --> 00:07:57,840 Speaker 1: means it never changes. But as my favorite economist, lugwoodvon 144 00:07:57,880 --> 00:08:00,200 Speaker 1: Misa says that in the world of economics, there there's 145 00:08:00,200 --> 00:08:03,040 Speaker 1: no such thing as a constant. So if you're using 146 00:08:03,120 --> 00:08:07,400 Speaker 1: things like oil or gold to measure, well, the amount 147 00:08:07,440 --> 00:08:11,160 Speaker 1: of oil and gold is changing all the time, so 148 00:08:11,160 --> 00:08:14,640 Speaker 1: there's never a constant until now there is. Right. So 149 00:08:14,680 --> 00:08:17,640 Speaker 1: bitcoin has a fixed supply, and so it is a 150 00:08:17,640 --> 00:08:19,920 Speaker 1: good store value. But it's volatile and it's going up. 151 00:08:20,200 --> 00:08:23,080 Speaker 1: But if you look at it over any short term period, 152 00:08:23,120 --> 00:08:25,360 Speaker 1: you could say, well, but look it's down. So for example, 153 00:08:25,400 --> 00:08:27,680 Speaker 1: I just said that right now bitcoin's sitting around a 154 00:08:27,720 --> 00:08:30,480 Speaker 1: fifty two thousand dollars and the high was set at 155 00:08:30,480 --> 00:08:32,600 Speaker 1: sixty nine thousand. So Mark, how can you say it's 156 00:08:32,600 --> 00:08:34,640 Speaker 1: a good store value. I bought it at sixty nine 157 00:08:34,640 --> 00:08:38,960 Speaker 1: thousand and it's only worth fifty two. I lost my value. 158 00:08:39,000 --> 00:08:40,880 Speaker 1: It's not a good store value, it's not a good 159 00:08:40,880 --> 00:08:44,839 Speaker 1: hedge against inflation. I lost money. Well, what I'd say 160 00:08:44,840 --> 00:08:47,280 Speaker 1: about that is that you have to zoom out, and 161 00:08:47,320 --> 00:08:50,679 Speaker 1: what we can see is that bitcoin is a four 162 00:08:50,800 --> 00:08:54,400 Speaker 1: year bet. So in business, in finance, we have what 163 00:08:54,440 --> 00:08:57,320 Speaker 1: we call cycles. We have long term business cycles, we 164 00:08:57,400 --> 00:09:01,800 Speaker 1: have debt and credit cycles, we have real estate cycles, 165 00:09:02,320 --> 00:09:05,080 Speaker 1: and we also have bitcoin cycles. And so whether it's 166 00:09:05,080 --> 00:09:08,920 Speaker 1: a business or an investment, or a real estate or bitcoin, 167 00:09:08,960 --> 00:09:12,280 Speaker 1: you have to understand the cycles. Otherwise you're kind of 168 00:09:12,320 --> 00:09:14,520 Speaker 1: talking like somebody who's not really well informed. But I 169 00:09:14,520 --> 00:09:16,360 Speaker 1: don't want that to happen. I want you to be informed. 170 00:09:16,559 --> 00:09:18,360 Speaker 1: So let me break it down for you. It's actually 171 00:09:18,400 --> 00:09:20,760 Speaker 1: pretty simple, but I gotta take a very quick break. 172 00:09:21,520 --> 00:09:23,120 Speaker 1: If you're just tune in, you're listening to the Mark 173 00:09:23,200 --> 00:09:27,200 Speaker 1: Moss Show talking about bitcoin and its evolutionary path. I'll 174 00:09:27,240 --> 00:09:28,720 Speaker 1: be back with more in a minute. Don't go away, 175 00:09:28,840 --> 00:09:31,240 Speaker 1: bear back, all right, welcome back. If you just tune in, 176 00:09:31,240 --> 00:09:34,240 Speaker 1: you're listening to the Mark Moas Show, we're talking about 177 00:09:34,600 --> 00:09:39,840 Speaker 1: bitcoin in bitcoin cycles, business cycles, real estate cycles, credit cycles, 178 00:09:39,840 --> 00:09:41,319 Speaker 1: and so much more. So. What I was talking about 179 00:09:41,360 --> 00:09:43,800 Speaker 1: is bitcoin is making you all time highs and fourteen 180 00:09:43,800 --> 00:09:48,079 Speaker 1: currencies not yet in the US dollar, and actually when 181 00:09:48,120 --> 00:09:50,720 Speaker 1: you adjust the US dollar for inflation back to them 182 00:09:50,760 --> 00:09:55,120 Speaker 1: being so manipulated. If we look at that, the bitcoin 183 00:09:55,160 --> 00:09:57,160 Speaker 1: is nowhere near back to an all time high because 184 00:09:57,160 --> 00:09:59,040 Speaker 1: the dollar isn't worth near what it used to be 185 00:09:59,080 --> 00:10:01,480 Speaker 1: back then. But going back to what I'm talking about here, 186 00:10:01,720 --> 00:10:05,400 Speaker 1: so we know that there's business cycles, there's credit debt cycles, 187 00:10:05,880 --> 00:10:07,520 Speaker 1: Like I said, even in real estate. So I started 188 00:10:07,520 --> 00:10:09,440 Speaker 1: my career in real estate as a real estate investor, 189 00:10:09,559 --> 00:10:11,680 Speaker 1: and I still own and buy a lot of real estate. 190 00:10:12,240 --> 00:10:14,600 Speaker 1: Typically the sort of rule of thumb with real estate 191 00:10:14,640 --> 00:10:16,920 Speaker 1: would be like for your house, like don't buy a 192 00:10:16,920 --> 00:10:18,680 Speaker 1: house unless you plan to hold it for at least 193 00:10:18,760 --> 00:10:21,640 Speaker 1: five years. And the reason why is because over a 194 00:10:21,640 --> 00:10:24,760 Speaker 1: five year period, even though real estate has gone down before, 195 00:10:25,000 --> 00:10:27,000 Speaker 1: it typically comes back up. And so you're going to 196 00:10:27,040 --> 00:10:28,640 Speaker 1: be pretty safe if you have at least a five 197 00:10:28,720 --> 00:10:32,360 Speaker 1: year record. With businesses, specifically you know, bigger businesses, it 198 00:10:32,400 --> 00:10:36,120 Speaker 1: typically takes years to make to become profitable, right, so 199 00:10:36,120 --> 00:10:38,720 Speaker 1: you're investing money, investing money, you're building building building eventually 200 00:10:38,720 --> 00:10:40,920 Speaker 1: comes profitable. For a big business, you know, something that 201 00:10:41,000 --> 00:10:43,520 Speaker 1: might go public, like a public traded company, typically you 202 00:10:43,520 --> 00:10:45,560 Speaker 1: have like a ten year period, which is why with 203 00:10:45,640 --> 00:10:47,720 Speaker 1: like venture capital and things like that, they have a 204 00:10:47,760 --> 00:10:51,360 Speaker 1: ten year holding period. So I know if I invest 205 00:10:51,440 --> 00:10:53,080 Speaker 1: in this early stage company, I got to just sit 206 00:10:53,080 --> 00:10:54,680 Speaker 1: back and away for ten years. I know, if I 207 00:10:54,679 --> 00:10:56,079 Speaker 1: buy this piece of real estate, I gotta sit back 208 00:10:56,080 --> 00:10:58,240 Speaker 1: away for five years. And bitcoin is like the same way. 209 00:10:58,559 --> 00:11:00,079 Speaker 1: If you buy bitcoin, you need to sit back and 210 00:11:00,120 --> 00:11:03,680 Speaker 1: wait for four years. What we can see going back 211 00:11:03,679 --> 00:11:07,240 Speaker 1: through now about fifteen years of data that there's never 212 00:11:07,360 --> 00:11:13,240 Speaker 1: been a four year period that Bitcoin's been down. So 213 00:11:13,520 --> 00:11:16,520 Speaker 1: in this four year cycle, during a four year investment period, 214 00:11:16,520 --> 00:11:23,320 Speaker 1: bitcoin has never had annualized returns under thirty percent. Now, 215 00:11:23,400 --> 00:11:26,480 Speaker 1: let's put this into perspective. The S and P five hundred, 216 00:11:26,480 --> 00:11:29,959 Speaker 1: which has been absolutely crushing it averages depends on what period? 217 00:11:30,120 --> 00:11:32,560 Speaker 1: Is it a sixty year cycle and eighty year cycle? 218 00:11:32,600 --> 00:11:34,960 Speaker 1: Depends is it over the last twelve months? Right? So 219 00:11:35,240 --> 00:11:37,440 Speaker 1: what period? But over like a sixty year period, the 220 00:11:37,480 --> 00:11:39,720 Speaker 1: S and P five hundred returns about seven and a 221 00:11:39,720 --> 00:11:43,360 Speaker 1: half eight percent kind of depends on what period it is, 222 00:11:43,360 --> 00:11:45,760 Speaker 1: but somewhere in the seventy percent range, right, Okay, So 223 00:11:46,480 --> 00:11:50,160 Speaker 1: during a four year investment period, any four year period, 224 00:11:50,280 --> 00:11:54,040 Speaker 1: Bitcoin's never had annualized returns under less than thirty percent. 225 00:11:54,160 --> 00:11:56,800 Speaker 1: That's pretty good. No matter how bad you time the 226 00:11:56,880 --> 00:12:00,160 Speaker 1: investment market, if you would have bought at the the 227 00:12:00,200 --> 00:12:03,960 Speaker 1: previous peak in twenty seventeen, doesn't matter where you're at. 228 00:12:04,040 --> 00:12:07,120 Speaker 1: Within four years you had averaged at least thirty percent, right, 229 00:12:07,280 --> 00:12:10,400 Speaker 1: So that's pretty good. It's man, was that four or 230 00:12:10,440 --> 00:12:14,280 Speaker 1: five times what the SMP five hundreds is done. Now 231 00:12:14,440 --> 00:12:17,600 Speaker 1: if we look at the four year investment period against 232 00:12:17,679 --> 00:12:19,840 Speaker 1: other assets, we can see, like I said, bitcoin has 233 00:12:19,840 --> 00:12:22,360 Speaker 1: about thirty to sixty percent annualized returns in that four 234 00:12:22,440 --> 00:12:24,559 Speaker 1: year period, the SMP five hundred has had about a 235 00:12:24,640 --> 00:12:27,440 Speaker 1: ten percent annualized return. Real estate has had about a 236 00:12:27,480 --> 00:12:30,200 Speaker 1: ten percent return as well. Why have a SMP five 237 00:12:30,240 --> 00:12:33,400 Speaker 1: hundred and real estate both had about ten percent because 238 00:12:33,400 --> 00:12:37,679 Speaker 1: they're perfect proxies for inflation. Perfect proxies. What does that mean? 239 00:12:37,840 --> 00:12:40,760 Speaker 1: That means they basically move up at the rate of inflation, 240 00:12:41,480 --> 00:12:44,720 Speaker 1: So you're not making money, but at least you're sort 241 00:12:44,720 --> 00:12:49,400 Speaker 1: of protecting or offsetting your losses. Whereas bitcoin isn't just 242 00:12:49,520 --> 00:12:52,720 Speaker 1: keeping up with inflation, it's beating inflation, which is what 243 00:12:52,760 --> 00:12:56,200 Speaker 1: we want. Right the goal I mean, obviously step number 244 00:12:56,240 --> 00:12:58,480 Speaker 1: one don't lose your money, right, don't let the state 245 00:12:58,520 --> 00:13:00,480 Speaker 1: steal your money through inflation set number one. But two, 246 00:13:00,640 --> 00:13:02,720 Speaker 1: how can we get ahead. And if you're just making 247 00:13:02,720 --> 00:13:04,920 Speaker 1: your ten percent in real estate or in S and P. 248 00:13:05,000 --> 00:13:09,400 Speaker 1: Five hundred, you're not getting ahead. Now, let's go back 249 00:13:09,440 --> 00:13:11,280 Speaker 1: and just look at some math. Let's not go too 250 00:13:11,320 --> 00:13:14,760 Speaker 1: far back again. We can cherry pick data. But there's 251 00:13:15,000 --> 00:13:18,040 Speaker 1: two big epochs of the financial world that I talk 252 00:13:18,080 --> 00:13:19,320 Speaker 1: about quite a bit, and I think we have to 253 00:13:19,360 --> 00:13:21,400 Speaker 1: understand the world to this lens. The financial world with 254 00:13:21,480 --> 00:13:25,680 Speaker 1: this lens. In two thousand and eight, the world changed. 255 00:13:26,240 --> 00:13:29,400 Speaker 1: The way that central banks and governments interact in financial 256 00:13:29,440 --> 00:13:32,760 Speaker 1: markets changed forever, and it's only been accelerating. So what 257 00:13:32,800 --> 00:13:35,240 Speaker 1: happened in two thousand and eight in the United States, 258 00:13:35,320 --> 00:13:38,800 Speaker 1: the Federal Reserve launched quantitative easing. Not only did they 259 00:13:38,840 --> 00:13:41,000 Speaker 1: launch quantitative easing where they started pumping money into the markets, 260 00:13:41,040 --> 00:13:43,439 Speaker 1: but they started pumping money into certain parts of the 261 00:13:43,440 --> 00:13:46,880 Speaker 1: market like buying mortgage backed securities, buying bonds, things like that, 262 00:13:47,320 --> 00:13:49,520 Speaker 1: and that forever changed the way the world works. So 263 00:13:49,559 --> 00:13:51,040 Speaker 1: a lot of times when you look at a financial data, 264 00:13:51,040 --> 00:13:53,360 Speaker 1: if you go back pre two thousand and eight, you 265 00:13:53,840 --> 00:13:56,480 Speaker 1: can't just take that forward because it's not the same. 266 00:13:57,559 --> 00:14:01,319 Speaker 1: The second epoch was basically continuation of that first one. 267 00:14:01,320 --> 00:14:04,360 Speaker 1: And this is the pandemic. So in twenty twenty, the 268 00:14:04,360 --> 00:14:08,760 Speaker 1: world changed. The world had never seen the entire economy 269 00:14:08,840 --> 00:14:11,520 Speaker 1: literally shut down overnight. Businesses that have been in business 270 00:14:11,520 --> 00:14:14,560 Speaker 1: for decades just shut down. We've never seen that before. 271 00:14:14,800 --> 00:14:17,640 Speaker 1: And we also again never saw the central banks of 272 00:14:17,679 --> 00:14:20,080 Speaker 1: the world work in markets like they had done in 273 00:14:20,120 --> 00:14:24,720 Speaker 1: twenty twenty. It's two thousand and eight times one thousand, right, 274 00:14:25,280 --> 00:14:31,200 Speaker 1: So instead of very slowly, very minimally affecting the markets, 275 00:14:31,240 --> 00:14:33,280 Speaker 1: they just jumped full bore in, which is why in 276 00:14:33,320 --> 00:14:34,760 Speaker 1: two thousand and eight, when the S and P five 277 00:14:34,840 --> 00:14:38,680 Speaker 1: hundred dropped about sixty percent, it took seven years to 278 00:14:38,720 --> 00:14:40,840 Speaker 1: get back to a previous all time high. But in 279 00:14:40,880 --> 00:14:43,400 Speaker 1: twenty twenty the market dropped about the same but it 280 00:14:43,440 --> 00:14:46,760 Speaker 1: took like three months, all right, So we have to 281 00:14:46,840 --> 00:14:48,480 Speaker 1: understand there's two different epochs. So I don't want to 282 00:14:48,520 --> 00:14:50,400 Speaker 1: cherry pick data, but a lot of data that we 283 00:14:50,440 --> 00:14:52,720 Speaker 1: look at from a financial standpoint is sort of from 284 00:14:52,760 --> 00:14:54,480 Speaker 1: a two thousand eight from a twenty twenty standpoint. So 285 00:14:54,560 --> 00:14:57,080 Speaker 1: let's just look at from twenty twenty. So in twenty twenty, 286 00:14:57,280 --> 00:15:00,120 Speaker 1: the world was locked down. It's complete chaos. I know, 287 00:15:00,120 --> 00:15:01,240 Speaker 1: if we're all going to die. We didn't know what 288 00:15:01,280 --> 00:15:04,600 Speaker 1: was going on, and the governments of the world did 289 00:15:04,600 --> 00:15:06,560 Speaker 1: something that they'd never done before, which is send everybody 290 00:15:06,600 --> 00:15:08,400 Speaker 1: in the world a stimmy check. Did you get one? 291 00:15:09,240 --> 00:15:12,120 Speaker 1: I didn't get one, unfortunately, but I think you had 292 00:15:12,120 --> 00:15:14,000 Speaker 1: to make less than seventy five thousand dollars. I didn't 293 00:15:14,000 --> 00:15:15,560 Speaker 1: get a stemy check. But they sent stemy checks twelve 294 00:15:15,600 --> 00:15:19,600 Speaker 1: hundred bucks to everybody. Now, some people, most people used 295 00:15:19,600 --> 00:15:24,280 Speaker 1: that money for door dash groceries, to pay rent. A 296 00:15:24,320 --> 00:15:27,440 Speaker 1: lot of people started gambling with it, like Robin Hood 297 00:15:27,480 --> 00:15:30,880 Speaker 1: took off everyone's trading options, doing cryptocurrencies. A lot of 298 00:15:30,920 --> 00:15:32,640 Speaker 1: people took trips, whatever it was. A lot of people 299 00:15:32,760 --> 00:15:35,280 Speaker 1: just took the stimmy and they spent it, which is 300 00:15:35,280 --> 00:15:38,680 Speaker 1: what the government wanted, right, they wanted to stimulate the economy. 301 00:15:39,360 --> 00:15:42,960 Speaker 1: But if we would have taken that twelve hundred dollars, 302 00:15:43,000 --> 00:15:45,240 Speaker 1: which I'm sure many people have taken that twel hundred 303 00:15:45,240 --> 00:15:47,960 Speaker 1: dollars and put it into bitcoin at that time, and 304 00:15:48,040 --> 00:15:51,000 Speaker 1: we fast forward to today now about four years later, 305 00:15:51,880 --> 00:15:55,600 Speaker 1: that twelve hundred dollars investment into bitcoin is now worth 306 00:15:55,800 --> 00:16:00,000 Speaker 1: nine thousand, two hundred and thirty dollars from twelve hundred 307 00:16:00,360 --> 00:16:04,400 Speaker 1: to ninety two hundred. That's a six hundred and sixty 308 00:16:04,520 --> 00:16:08,040 Speaker 1: nine percent return. Six hundred and sixty nine percent return. 309 00:16:08,040 --> 00:16:10,520 Speaker 1: Now that's crazy, right. If you use your twelve hundred 310 00:16:10,760 --> 00:16:13,880 Speaker 1: for the stimulus purposes they wanted, and you bought a 311 00:16:13,880 --> 00:16:15,560 Speaker 1: bunch of food at the grocery store or door dash, 312 00:16:15,840 --> 00:16:18,760 Speaker 1: you probably gained a bunch of weight. But if you 313 00:16:18,760 --> 00:16:20,520 Speaker 1: would have put it in a bitcoin, you would have 314 00:16:20,560 --> 00:16:23,200 Speaker 1: gained a bunch of money. So the takeaway that I 315 00:16:23,240 --> 00:16:25,640 Speaker 1: want to point to here is that if you have 316 00:16:25,760 --> 00:16:27,920 Speaker 1: the right term perspective, and look, if you don't have 317 00:16:27,920 --> 00:16:30,920 Speaker 1: the right term perspective, you have no business investing your money. 318 00:16:31,320 --> 00:16:33,640 Speaker 1: I've talked about this before. I get asked all the time, Mark, 319 00:16:33,800 --> 00:16:36,240 Speaker 1: what's the best asset I should buy? And it's like, 320 00:16:36,320 --> 00:16:39,440 Speaker 1: if you don't know the answer to that, you probably 321 00:16:39,480 --> 00:16:42,080 Speaker 1: shouldn't be buying anything. Even if I told you what 322 00:16:42,120 --> 00:16:44,480 Speaker 1: the best investment is, you probably shouldn't buy it because 323 00:16:44,520 --> 00:16:47,640 Speaker 1: you don't understand it. You won't understand how much you 324 00:16:47,680 --> 00:16:50,720 Speaker 1: should buy, How much should you buy? What you should 325 00:16:50,760 --> 00:16:53,000 Speaker 1: you be watching? What if there's new information that comes 326 00:16:53,040 --> 00:16:55,960 Speaker 1: out that says we need to sell right, and so like, 327 00:16:56,000 --> 00:16:57,640 Speaker 1: if you don't understand enough to know what to buy, 328 00:16:57,680 --> 00:16:59,960 Speaker 1: you're certainly not kind of enough to manage that safe. 329 00:17:00,320 --> 00:17:01,960 Speaker 1: And it's something I say quite a bit, which is 330 00:17:02,240 --> 00:17:05,399 Speaker 1: that the risk is always in the investor and not 331 00:17:05,640 --> 00:17:08,359 Speaker 1: the investment. So I talk about this quite a bit, 332 00:17:08,400 --> 00:17:10,919 Speaker 1: like in terms of like surfing. If I took you 333 00:17:10,960 --> 00:17:13,880 Speaker 1: to Hawaii to pipeline where the waves are thirty feet 334 00:17:14,200 --> 00:17:16,320 Speaker 1: and you're from Kansas, you've never been in the ocean before, 335 00:17:16,520 --> 00:17:19,879 Speaker 1: and I took you out there, you would probably drowned, okay, 336 00:17:19,920 --> 00:17:23,320 Speaker 1: But there's hundreds of people out there every day just playing, 337 00:17:23,440 --> 00:17:25,560 Speaker 1: having fun in the waves, you see. So the risk 338 00:17:25,680 --> 00:17:28,920 Speaker 1: isn't in the wave necessarily, it's in the surfer or 339 00:17:28,960 --> 00:17:31,040 Speaker 1: the person that goes out into the waves. And the 340 00:17:31,040 --> 00:17:33,280 Speaker 1: same is true with your investments. The risk is in 341 00:17:33,440 --> 00:17:37,440 Speaker 1: the investor, it's in you. So again, if you don't 342 00:17:37,560 --> 00:17:41,120 Speaker 1: understand that there's business cycles, there's investment cycles, there's debt 343 00:17:41,119 --> 00:17:43,919 Speaker 1: and credit cycles, there's bitcoin cycles, there's real estates. If 344 00:17:43,920 --> 00:17:46,879 Speaker 1: you don't understand those things, then you probably shouldn't invest 345 00:17:46,880 --> 00:17:48,520 Speaker 1: in the first place, which is why I'm breaking it 346 00:17:48,520 --> 00:17:50,359 Speaker 1: down for you right here. If you're just tuning in. 347 00:17:50,400 --> 00:17:52,880 Speaker 1: You're listening to the Mark Mass Show. We're talking about bitcoin, 348 00:17:53,440 --> 00:17:56,320 Speaker 1: the past, the present, and more importantly, where it's going, 349 00:17:56,480 --> 00:17:59,880 Speaker 1: and how buying a little bit of bitcoin today could 350 00:18:00,119 --> 00:18:03,439 Speaker 1: potentially retire you for the rest of your life. I'm 351 00:18:03,480 --> 00:18:05,520 Speaker 1: gonna break all that down, break down the math. If 352 00:18:05,560 --> 00:18:07,360 Speaker 1: you're just tuning again, like I said, you're listening to 353 00:18:07,440 --> 00:18:09,280 Speaker 1: the Mark Mass Show, I'll be back after a very 354 00:18:09,280 --> 00:18:11,720 Speaker 1: short break. Don't go away right back, all right, welcome back. 355 00:18:11,720 --> 00:18:13,920 Speaker 1: If you just tune in yourthing to the Mark Moss Show, 356 00:18:13,960 --> 00:18:18,800 Speaker 1: and we are talking about the most groundbreaking or revolutionary 357 00:18:18,800 --> 00:18:21,560 Speaker 1: technology the world has ever seen, which of course is 358 00:18:21,640 --> 00:18:23,720 Speaker 1: a bitcoin. And I know that sounds a little bit 359 00:18:23,800 --> 00:18:28,840 Speaker 1: hyper bowl, hyperbolic, whatever, however you say that word because 360 00:18:29,000 --> 00:18:31,159 Speaker 1: a lot of people say it's just like old technology. 361 00:18:31,160 --> 00:18:32,840 Speaker 1: It's like an old rock and Mark, you don't know 362 00:18:32,880 --> 00:18:35,880 Speaker 1: what you're talking about. It has scaling issues. Okay, those 363 00:18:35,880 --> 00:18:38,560 Speaker 1: are like twenty sixteen arguments. You're still bringing those up. 364 00:18:39,280 --> 00:18:41,960 Speaker 1: Things change. And I'm old enough to have been around 365 00:18:42,440 --> 00:18:45,879 Speaker 1: pre Internet, and I remember using the Internet as it 366 00:18:45,960 --> 00:18:49,040 Speaker 1: was being developed and the Internet would never scale, no 367 00:18:49,080 --> 00:18:51,840 Speaker 1: one would ever use it. I've been there as a 368 00:18:51,880 --> 00:18:58,000 Speaker 1: matter of fact, I've told this story before. In two 369 00:18:58,040 --> 00:19:00,320 Speaker 1: thousand and once we had the dot com run up, 370 00:19:00,680 --> 00:19:02,320 Speaker 1: and then we in two thousand we had the dot 371 00:19:02,320 --> 00:19:05,080 Speaker 1: com crash. In two thousand and one, the year after 372 00:19:05,119 --> 00:19:07,000 Speaker 1: the big crash, I had this great idea that I 373 00:19:07,040 --> 00:19:09,480 Speaker 1: was going to build an e commerce website and sell 374 00:19:09,520 --> 00:19:13,120 Speaker 1: products online. And the problem is is that back then 375 00:19:13,160 --> 00:19:15,440 Speaker 1: there was no like word press or Shopify. There was 376 00:19:15,480 --> 00:19:18,199 Speaker 1: no Amazon eBay, there was no Amazon was there, but 377 00:19:18,480 --> 00:19:19,840 Speaker 1: at the time it wasn't really being use for that, 378 00:19:20,280 --> 00:19:21,760 Speaker 1: so there's really no way for me to just go 379 00:19:21,840 --> 00:19:24,280 Speaker 1: sell e coom And I had to hire a developer 380 00:19:24,320 --> 00:19:26,879 Speaker 1: and I think I spent like twenty five thousand dollars 381 00:19:26,960 --> 00:19:29,240 Speaker 1: back then, which is a lot of money to build 382 00:19:29,320 --> 00:19:31,720 Speaker 1: just like the most basic of like e commerce stores 383 00:19:31,760 --> 00:19:34,480 Speaker 1: you can imagine, right. And then I wanted to start 384 00:19:34,480 --> 00:19:37,359 Speaker 1: selling products. I was in the action sports physically in 385 00:19:37,400 --> 00:19:40,600 Speaker 1: like the motorcross niche and I went to these companies 386 00:19:40,640 --> 00:19:42,280 Speaker 1: and I said, hey, I want to sell your products 387 00:19:42,280 --> 00:19:46,640 Speaker 1: on my website. And they laughed at me and they 388 00:19:46,640 --> 00:19:49,679 Speaker 1: told me that nobody would ever buy anything online. It 389 00:19:49,720 --> 00:19:52,800 Speaker 1: was ridiculous, and I'm like, well, I think they will 390 00:19:53,440 --> 00:19:56,000 Speaker 1: and you know, you could be right. I could be right, 391 00:19:56,000 --> 00:19:57,399 Speaker 1: but I'm willing just to give you the money. I'll 392 00:19:57,400 --> 00:20:00,119 Speaker 1: buy your stuff. And a lot of companies told me that, 393 00:20:00,000 --> 00:20:03,359 Speaker 1: but they didn't even want their products being sold on 394 00:20:03,400 --> 00:20:06,040 Speaker 1: the Internet because it was it had this stigma, you know, 395 00:20:06,119 --> 00:20:08,000 Speaker 1: had just had this big crash. Everyone thought it was 396 00:20:08,000 --> 00:20:10,480 Speaker 1: a scam. It was never going to scale. As a 397 00:20:10,520 --> 00:20:12,919 Speaker 1: matter of fact, the Internet had been around since like 398 00:20:12,920 --> 00:20:15,359 Speaker 1: the seventies and eighties, through like Darbay, the military. But 399 00:20:15,400 --> 00:20:19,080 Speaker 1: the first WWW, the first public website, was in nineteen 400 00:20:19,200 --> 00:20:23,040 Speaker 1: ninety The first bitcoin, I'm sorry, the first Internet purchase 401 00:20:23,119 --> 00:20:26,919 Speaker 1: was nineteen ninety four. Nineteen ninety five, we had the 402 00:20:26,960 --> 00:20:30,600 Speaker 1: IPO Netscape, which then set the whole thing into motion 403 00:20:30,680 --> 00:20:33,720 Speaker 1: to go into two thousand. But yet by two thousand, 404 00:20:34,000 --> 00:20:37,280 Speaker 1: about thirty years after the Internet was invented, ten full 405 00:20:37,400 --> 00:20:41,160 Speaker 1: years after it went completely public, six full years after 406 00:20:41,200 --> 00:20:44,239 Speaker 1: the first purchase. And this is in two thousand, this 407 00:20:44,280 --> 00:20:46,800 Speaker 1: is when it's all over TV and it's pets dot com, 408 00:20:46,800 --> 00:20:50,399 Speaker 1: it's Webman dot com. Even then, less than ten percent 409 00:20:50,440 --> 00:20:53,520 Speaker 1: of people had ever bought anything online. Because it just 410 00:20:53,680 --> 00:20:57,600 Speaker 1: takes time. It just takes time. And it also wasn't 411 00:20:57,680 --> 00:21:00,320 Speaker 1: very usable. The Internet was hard to use, it was 412 00:21:00,440 --> 00:21:02,760 Speaker 1: way too slow, and it wasn't really until about two 413 00:21:02,760 --> 00:21:04,960 Speaker 1: thousand and seven when the iPhone came out that really 414 00:21:05,000 --> 00:21:08,040 Speaker 1: the Internet started taking off. Now it's a long, long story, 415 00:21:08,080 --> 00:21:09,560 Speaker 1: but here we are back to bitcoin. I know it's 416 00:21:09,560 --> 00:21:12,360 Speaker 1: an old technology. It's very slow. Yeah, yeah, yeah, yeah, 417 00:21:12,359 --> 00:21:14,359 Speaker 1: that's old technology. The point that I was going to 418 00:21:14,359 --> 00:21:17,440 Speaker 1: make is that I've heard that one hundred I've heard 419 00:21:17,480 --> 00:21:20,240 Speaker 1: it one thousand, I've heard it ten thousand times. Before 420 00:21:20,600 --> 00:21:23,080 Speaker 1: technology scales, you just got to give it time. And 421 00:21:23,119 --> 00:21:25,480 Speaker 1: we're there now back to the point that I'm making. 422 00:21:25,560 --> 00:21:29,640 Speaker 1: So we talked about where bitcoin is. It's eating all 423 00:21:29,640 --> 00:21:33,640 Speaker 1: these other currencies, it's made high and fourteen currencies. Where 424 00:21:33,640 --> 00:21:36,800 Speaker 1: could it go is anybody's guess, But there are some 425 00:21:37,080 --> 00:21:39,600 Speaker 1: educated guesses that we can have, and they sound a 426 00:21:39,640 --> 00:21:41,560 Speaker 1: little crazy, but I'm going to go ahead and throw 427 00:21:41,600 --> 00:21:45,080 Speaker 1: them out to you. Anyway. What we do know is 428 00:21:45,119 --> 00:21:49,520 Speaker 1: since bitcoin's inception, it's averaged about a two hundred percent 429 00:21:50,040 --> 00:21:54,240 Speaker 1: compounded annual growth rate. We do know that, okay, But again, 430 00:21:54,320 --> 00:21:57,520 Speaker 1: as we say in the finance world, that past performance 431 00:21:57,560 --> 00:22:00,640 Speaker 1: is no guarantee of future performance. So just because it's 432 00:22:00,640 --> 00:22:03,440 Speaker 1: had that doesn't mean it will continue to that. It could, 433 00:22:03,480 --> 00:22:06,000 Speaker 1: it couldn't. We don't know the answer to that. But 434 00:22:06,160 --> 00:22:08,359 Speaker 1: what we do, so like back to sort of like 435 00:22:08,720 --> 00:22:10,879 Speaker 1: venture capital investing, what we do is we try to 436 00:22:11,080 --> 00:22:13,919 Speaker 1: we try to guess this. When I'm investing into a business, 437 00:22:13,920 --> 00:22:16,880 Speaker 1: an early round business, venture capital my goal because they 438 00:22:16,880 --> 00:22:20,120 Speaker 1: say I'm raising fifteen million at a sixty million valuation, 439 00:22:20,440 --> 00:22:23,120 Speaker 1: I'm like, where are you getting a sixty million dollar 440 00:22:23,200 --> 00:22:26,639 Speaker 1: valuation from? Well, I'm going into the food space and 441 00:22:26,640 --> 00:22:29,679 Speaker 1: I'm going to disrupt these couple companies and this market 442 00:22:29,760 --> 00:22:32,280 Speaker 1: is this big, and if I can get this percentage 443 00:22:32,320 --> 00:22:37,040 Speaker 1: of that market, it would give me that market cap. Right, 444 00:22:37,080 --> 00:22:38,880 Speaker 1: And so we can look at bitcoin the same way, 445 00:22:38,920 --> 00:22:43,679 Speaker 1: So like what assets, what asset classes, what business is, 446 00:22:43,680 --> 00:22:47,160 Speaker 1: what sectors is it disrupting? How much could it get 447 00:22:47,160 --> 00:22:49,280 Speaker 1: from there? Now, there's a bunch of ways we can 448 00:22:49,320 --> 00:22:52,040 Speaker 1: do this. We can look at growth rates. We can 449 00:22:52,080 --> 00:22:55,920 Speaker 1: look at Metcalf's law for scaling. We can look at 450 00:22:55,920 --> 00:22:58,960 Speaker 1: the supply demand curve of bitcoin because we know that 451 00:22:59,000 --> 00:23:02,440 Speaker 1: in advance. We can look at the asset categories that's 452 00:23:02,440 --> 00:23:04,040 Speaker 1: breaking down. So we can look at a couple different 453 00:23:04,040 --> 00:23:06,040 Speaker 1: measurement tools, and let me just run you through a 454 00:23:06,080 --> 00:23:08,399 Speaker 1: couple of those. Now, first of all, we sort of 455 00:23:08,560 --> 00:23:11,880 Speaker 1: we know the supply demand curve, we know the metrics 456 00:23:11,880 --> 00:23:14,200 Speaker 1: that it runs on, and so if we look at 457 00:23:14,240 --> 00:23:17,720 Speaker 1: that alone, it's going to sound kind of crazy. But 458 00:23:18,280 --> 00:23:23,080 Speaker 1: per Fidelity, which puts out amazing research on bitcoin, they've 459 00:23:23,080 --> 00:23:24,879 Speaker 1: been in bitcoin since twenty fourteen, I believe, when they 460 00:23:24,920 --> 00:23:29,800 Speaker 1: started mining. In per Fidelity's own research, they say that 461 00:23:29,840 --> 00:23:35,760 Speaker 1: by twenty thirty eight bitcoin could be one billion dollars 462 00:23:36,000 --> 00:23:39,560 Speaker 1: per bitcoin. Now, I do want to point this out 463 00:23:39,680 --> 00:23:43,840 Speaker 1: that when bitcoin is worth one billion dollars, it's not 464 00:23:44,119 --> 00:23:47,800 Speaker 1: in today's dollars. Okay, you have to understand that in 465 00:23:47,920 --> 00:23:50,679 Speaker 1: time when we start to have heavy inflation sort of 466 00:23:50,680 --> 00:23:52,880 Speaker 1: like what we've been having, but even worse like in Zimbabwe, 467 00:23:53,000 --> 00:23:57,000 Speaker 1: for example, everybody became a billionaire. Everyone was a billionaire 468 00:23:57,000 --> 00:23:59,600 Speaker 1: in Zimbabwe. The problem was it was three hundred and 469 00:23:59,640 --> 00:24:03,159 Speaker 1: fifty billion for one single egg. And so you have 470 00:24:03,200 --> 00:24:05,439 Speaker 1: to keep this in mind, like you already know, like 471 00:24:05,920 --> 00:24:07,960 Speaker 1: one hundred thousand dollars doesn't buy you what one hundred 472 00:24:08,000 --> 00:24:10,960 Speaker 1: thousand dollars did twenty years ago. When I was a kid, 473 00:24:11,359 --> 00:24:14,080 Speaker 1: like being a millionaire was everything, and today being a 474 00:24:14,080 --> 00:24:16,720 Speaker 1: millionaire like in California, like you could still be broke. 475 00:24:17,600 --> 00:24:19,919 Speaker 1: So you have to understand that when in twenty thirty eight, 476 00:24:19,920 --> 00:24:22,399 Speaker 1: when they're projecting to be worth a billion, a billion 477 00:24:22,400 --> 00:24:24,639 Speaker 1: dollars is not that much money. A billion dollars might 478 00:24:24,680 --> 00:24:26,320 Speaker 1: be like a million dollars, you know, something like that. 479 00:24:27,240 --> 00:24:31,080 Speaker 1: So that's their projection, okay, but that's based off the 480 00:24:31,080 --> 00:24:33,679 Speaker 1: supply demand curve and the growth rate and Metcalfs law 481 00:24:33,720 --> 00:24:36,760 Speaker 1: and things like that. But if we look at like industries, 482 00:24:36,800 --> 00:24:39,920 Speaker 1: it's it's disrupting and stealing value from we can get 483 00:24:39,920 --> 00:24:44,600 Speaker 1: different calculations. So, for example, we look at bitcoin as 484 00:24:44,600 --> 00:24:48,240 Speaker 1: a store of value. Great, So what other things are 485 00:24:48,240 --> 00:24:50,080 Speaker 1: we storing our wealth in today? What we store a 486 00:24:50,160 --> 00:24:54,400 Speaker 1: wealth in gold, we store our wealth store value in stocks, 487 00:24:54,840 --> 00:24:58,560 Speaker 1: in real estate, in offshore bank accounts, things like that. 488 00:24:58,680 --> 00:25:01,399 Speaker 1: So if we add those up, thirty to forty trillion 489 00:25:01,440 --> 00:25:04,080 Speaker 1: off shore bakecounts, twelve to thirteen trillion dollars in gold, 490 00:25:04,200 --> 00:25:07,200 Speaker 1: eighty trillion dollars of stocks. If we add that up 491 00:25:07,400 --> 00:25:10,280 Speaker 1: three hundred fifty trillion in real estate, we get to 492 00:25:10,359 --> 00:25:15,560 Speaker 1: about seven hundred trillion dollars so could it get two 493 00:25:15,560 --> 00:25:17,200 Speaker 1: percent of that, could it get five percent of it? 494 00:25:17,280 --> 00:25:19,560 Speaker 1: Could get ten percent of it? And the answer is yes, 495 00:25:19,640 --> 00:25:22,960 Speaker 1: like of course it can. And so that could easily 496 00:25:23,000 --> 00:25:27,080 Speaker 1: push bitcoin up to two, three, four five million dollars. 497 00:25:27,160 --> 00:25:29,960 Speaker 1: The guess is how quickly could it get to that point? 498 00:25:29,960 --> 00:25:33,639 Speaker 1: And we don't know. I'm thinking that maybe a million 499 00:25:33,680 --> 00:25:37,440 Speaker 1: dollars by the end of the decade could be somewhat realistic. 500 00:25:38,000 --> 00:25:40,439 Speaker 1: I know that sounds crazy, right now, we could go 501 00:25:40,480 --> 00:25:43,359 Speaker 1: even further. So we know that if we look at 502 00:25:43,640 --> 00:25:47,120 Speaker 1: total assets in the world, we have about nine hundred 503 00:25:47,160 --> 00:25:52,040 Speaker 1: trillion nine hundred trillion. Now we talked about at the 504 00:25:52,040 --> 00:25:55,359 Speaker 1: beginning of this the evolutionary path that collectibles go on 505 00:25:56,000 --> 00:25:59,280 Speaker 1: to becoming maybe some of them go on to becoming 506 00:25:59,320 --> 00:26:01,679 Speaker 1: a unit of account. So that means it goes from 507 00:26:01,720 --> 00:26:03,639 Speaker 1: the member of the path, right, So it starts as 508 00:26:03,640 --> 00:26:05,199 Speaker 1: a collectible, it goes to a store value, goes to 509 00:26:05,200 --> 00:26:07,600 Speaker 1: medium exchange, and they can go to a unit of account. 510 00:26:07,840 --> 00:26:10,879 Speaker 1: If it becomes a unit of account, then everything is 511 00:26:11,000 --> 00:26:15,840 Speaker 1: priced in that unit of account. So if you take 512 00:26:16,160 --> 00:26:18,720 Speaker 1: if you think about it like this, nobody wants money, 513 00:26:19,640 --> 00:26:22,359 Speaker 1: which is crazy, right. What we want is the goods 514 00:26:22,400 --> 00:26:25,679 Speaker 1: and services that money buys us. So we use money 515 00:26:25,720 --> 00:26:28,040 Speaker 1: as a place to park our wealth, to store our 516 00:26:28,119 --> 00:26:30,920 Speaker 1: value until we're ready to deploy it to get the 517 00:26:30,960 --> 00:26:33,280 Speaker 1: goods and services that we want. Think about it like that. 518 00:26:33,920 --> 00:26:35,680 Speaker 1: So basically, what you have is all the goods and 519 00:26:35,680 --> 00:26:37,320 Speaker 1: services in the world divided by all the money in 520 00:26:37,359 --> 00:26:39,280 Speaker 1: the world. And if we get more goods and services, 521 00:26:39,320 --> 00:26:40,880 Speaker 1: then the value of that money has to go up. 522 00:26:41,080 --> 00:26:46,040 Speaker 1: So if bitcoin makes this evolutionary path, completes the evolutionary 523 00:26:46,080 --> 00:26:48,679 Speaker 1: path and is able to go, we're already at the 524 00:26:48,720 --> 00:26:50,960 Speaker 1: medium exchange stage. We're somewhere in between the store value 525 00:26:50,960 --> 00:26:53,119 Speaker 1: and medium exchange stage. If we can complete that and 526 00:26:53,160 --> 00:26:55,280 Speaker 1: move to a unit of account, maybe in a decade, 527 00:26:55,560 --> 00:26:59,320 Speaker 1: maybe it's two decades, maybe it's three decades. If we 528 00:26:59,359 --> 00:27:02,720 Speaker 1: get to that unit the count, we could reprice nine 529 00:27:02,800 --> 00:27:08,040 Speaker 1: hundred trillion dollars worth of wealth in bitcoin. Now, hang on, 530 00:27:08,359 --> 00:27:13,359 Speaker 1: this sounds crazy, I know, But nine hundred trillion divided 531 00:27:13,400 --> 00:27:18,640 Speaker 1: by twenty one million brings a forty two million dollars 532 00:27:19,000 --> 00:27:23,720 Speaker 1: price per pitcoin. No, I know that sounds absolutely crazy, 533 00:27:23,800 --> 00:27:27,440 Speaker 1: and it is, but that's the potential. Now, this potential 534 00:27:27,480 --> 00:27:29,280 Speaker 1: doesn't mean he'll get there. It's potential, but I want 535 00:27:29,280 --> 00:27:32,240 Speaker 1: to talk to you. Let's let's let's take that. Let's 536 00:27:32,240 --> 00:27:35,119 Speaker 1: take those big numbers off, and let's scale it back, 537 00:27:35,520 --> 00:27:37,399 Speaker 1: and let's make it more practical for you. I'm going 538 00:27:37,480 --> 00:27:39,880 Speaker 1: to come up with some numbers and tell you specifically 539 00:27:40,000 --> 00:27:42,439 Speaker 1: how you could retire off of an asset like bitcoin. 540 00:27:42,440 --> 00:27:44,040 Speaker 1: I'll be back with more in a minute, after a 541 00:27:44,080 --> 00:27:46,000 Speaker 1: very short break. Don't go away, right back, all right, 542 00:27:46,000 --> 00:27:47,679 Speaker 1: welcome back. If you just tune in, you're listening to 543 00:27:47,760 --> 00:27:51,639 Speaker 1: the Mark Moss Show, and we're talking about bitcoin. We're 544 00:27:51,680 --> 00:27:54,560 Speaker 1: talking about the potential of where it could go potentially 545 00:27:54,600 --> 00:27:56,720 Speaker 1: on price point, and more importantly, we're going to talk 546 00:27:56,720 --> 00:27:59,080 Speaker 1: about how you could leverage an asset like bitcoin to 547 00:27:59,119 --> 00:28:01,040 Speaker 1: retire off of. Now, I want to just throw this 548 00:28:01,080 --> 00:28:03,560 Speaker 1: out there. You can apply this to any asset. You 549 00:28:03,560 --> 00:28:05,240 Speaker 1: could apply it to stocks, you can apply to bonds, 550 00:28:05,240 --> 00:28:07,399 Speaker 1: you can apply it to gold, you can apply it 551 00:28:07,480 --> 00:28:10,040 Speaker 1: to real estate. So this strategy is what the rich 552 00:28:10,200 --> 00:28:14,000 Speaker 1: use in order to grow wealth really really fast. And 553 00:28:14,040 --> 00:28:15,600 Speaker 1: again it doesn't have to be with bitcoin, it can 554 00:28:15,680 --> 00:28:17,600 Speaker 1: be with anything. Now, it works better with bitcoin because 555 00:28:17,600 --> 00:28:20,399 Speaker 1: bitcoin is the best performing asset, So the better the 556 00:28:20,440 --> 00:28:23,439 Speaker 1: asset performs, the easier it is to enact this strategy. 557 00:28:24,000 --> 00:28:26,520 Speaker 1: It works very well with real estate as well, because 558 00:28:26,560 --> 00:28:29,679 Speaker 1: of the readily available mortgage loans. So I love to 559 00:28:29,680 --> 00:28:30,960 Speaker 1: do it with real estate. I love to do it 560 00:28:30,960 --> 00:28:32,800 Speaker 1: with bitcoin, but you can certainly do it with stocks, 561 00:28:32,800 --> 00:28:34,360 Speaker 1: You can certainly do with gold, et cetera. All right, 562 00:28:34,359 --> 00:28:36,680 Speaker 1: so what am I talking about. We're talking about buying 563 00:28:36,720 --> 00:28:41,040 Speaker 1: an asset and then never selling it. When somebody asks me, Mark, 564 00:28:41,080 --> 00:28:42,680 Speaker 1: at what price will you say you're bitcoin? I'm like, 565 00:28:42,840 --> 00:28:44,680 Speaker 1: you don't understand the game. The goal is to get 566 00:28:44,720 --> 00:28:48,320 Speaker 1: more assets, not more dollars. I mean I want to 567 00:28:48,360 --> 00:28:49,800 Speaker 1: get more dollars, just want to get more assets. But 568 00:28:49,840 --> 00:28:51,720 Speaker 1: the goal is to get more assets. It's like nobody 569 00:28:51,720 --> 00:28:53,800 Speaker 1: buys a drill, they buy the whole. I don't want 570 00:28:53,800 --> 00:28:54,960 Speaker 1: the drill, I want the hole, but I had to 571 00:28:55,000 --> 00:28:56,240 Speaker 1: get to get thrill. So I don't want the money. 572 00:28:56,240 --> 00:28:59,920 Speaker 1: I want the assets. And so when someone says you 573 00:29:00,120 --> 00:29:01,600 Speaker 1: to sell your bitcoin's like, you don't understand the game. 574 00:29:01,640 --> 00:29:03,720 Speaker 1: The game is to get more assets, and the goal 575 00:29:03,800 --> 00:29:06,200 Speaker 1: is to get assets and never sell them, because the 576 00:29:06,200 --> 00:29:08,320 Speaker 1: goal isn't money. The goal is assets, and the goal 577 00:29:08,400 --> 00:29:09,960 Speaker 1: is for me to pass those assets to my kids, 578 00:29:09,960 --> 00:29:11,640 Speaker 1: and those my kids to pass them to my grandkids, 579 00:29:11,640 --> 00:29:13,760 Speaker 1: et cetera. So what you want to do is you 580 00:29:13,760 --> 00:29:17,920 Speaker 1: want to buy scarce property, scarce assets, waterfront property, right 581 00:29:18,160 --> 00:29:22,000 Speaker 1: downtown city blocks, and then you never sell them. If 582 00:29:22,040 --> 00:29:24,200 Speaker 1: my great great grandfather had bought, you know, eight square 583 00:29:24,200 --> 00:29:26,960 Speaker 1: blocks of downtown Manhattan and New York City, when would 584 00:29:26,960 --> 00:29:29,239 Speaker 1: have been the right time to sell those? I mean, 585 00:29:29,280 --> 00:29:32,040 Speaker 1: the answer is never, never, because if you sold those 586 00:29:32,080 --> 00:29:33,840 Speaker 1: eight blocks, how would you ever buy those eight blocks 587 00:29:33,880 --> 00:29:36,520 Speaker 1: back again? You would never be able to get that again. 588 00:29:37,480 --> 00:29:39,600 Speaker 1: You can maybe buy one block, I mean maybe one 589 00:29:39,600 --> 00:29:41,440 Speaker 1: building on a block. You never get eight blocks back 590 00:29:41,520 --> 00:29:44,080 Speaker 1: right because it's too scarce, So you never sell it. 591 00:29:44,440 --> 00:29:46,280 Speaker 1: What you want to do, and the other reason why 592 00:29:46,320 --> 00:29:47,800 Speaker 1: you never want to sell it is because of taxes. 593 00:29:48,040 --> 00:29:50,240 Speaker 1: The taxes are the best way to lose all your wealth. 594 00:29:50,800 --> 00:29:53,680 Speaker 1: So if you're in a heavy tax state like California, 595 00:29:53,720 --> 00:29:56,240 Speaker 1: for example, and your the top income BRAX at your bracket, 596 00:29:56,280 --> 00:29:59,040 Speaker 1: you're paying fifty percent tax. So let me break this 597 00:29:59,360 --> 00:30:03,200 Speaker 1: math down for you. If I were to buy one 598 00:30:03,280 --> 00:30:06,520 Speaker 1: hundred thousand dollars worth of bitcoin and it doubles to 599 00:30:06,520 --> 00:30:08,720 Speaker 1: two hundred thousand, which I think is likely in the 600 00:30:08,760 --> 00:30:11,800 Speaker 1: next twelve to fourteen months. So I have one hundred thousand, 601 00:30:12,440 --> 00:30:15,880 Speaker 1: it doubles to two hundred thousand. Well I'm like, well, shoot, 602 00:30:15,920 --> 00:30:17,240 Speaker 1: I need a one hundred thousand to go buy this 603 00:30:17,280 --> 00:30:19,520 Speaker 1: piece of real estate, or go launch this business, or 604 00:30:19,640 --> 00:30:21,160 Speaker 1: to put into gold, whatever I want to do with it. 605 00:30:22,400 --> 00:30:24,880 Speaker 1: I would have to sell the two hundred thousand dollars 606 00:30:24,880 --> 00:30:26,680 Speaker 1: worth of bitcoin to get the two hundred grand, but 607 00:30:26,720 --> 00:30:28,880 Speaker 1: then I would owe tax, So then fifty percent goes 608 00:30:28,920 --> 00:30:31,280 Speaker 1: to tax, and I'm left with one hundred grand. I 609 00:30:31,280 --> 00:30:35,360 Speaker 1: didn't really make any money. Well theoretically, I'm only paying 610 00:30:35,440 --> 00:30:36,880 Speaker 1: tax on the profit, So I ended up with one 611 00:30:36,920 --> 00:30:42,440 Speaker 1: hundred fifty Graand okay, or what I could do is 612 00:30:42,600 --> 00:30:46,440 Speaker 1: I could I could keep the bitcoin, I could borrow 613 00:30:46,560 --> 00:30:49,640 Speaker 1: one hundred thousand against it, and the beauty of that 614 00:30:49,840 --> 00:30:52,160 Speaker 1: is that's debt, so it's tax free. So now I 615 00:30:52,240 --> 00:30:54,800 Speaker 1: get the one hundred grand, but I still have the 616 00:30:54,800 --> 00:30:57,400 Speaker 1: two hundred thousand dollars in bitcoin, so that still goes 617 00:30:57,480 --> 00:31:01,520 Speaker 1: up in value. Now, as bitcoin continues to go up 618 00:31:01,520 --> 00:31:02,920 Speaker 1: in value, that two under grand is going to two 619 00:31:03,000 --> 00:31:04,760 Speaker 1: hundred and fifty three hundred three hundred and fifty four 620 00:31:04,840 --> 00:31:06,920 Speaker 1: hundred first, as if I had sold it, I'm just 621 00:31:07,040 --> 00:31:09,120 Speaker 1: out of the game altogether. The goal is to not 622 00:31:09,160 --> 00:31:11,880 Speaker 1: get out of the game. If you haven't noticed, prices 623 00:31:11,960 --> 00:31:16,200 Speaker 1: just continue going up. Homes just get more expensive, right, 624 00:31:16,280 --> 00:31:18,640 Speaker 1: Cars just get more expensive. And the problem is if 625 00:31:18,640 --> 00:31:20,280 Speaker 1: you're not in the game, which is the problem for 626 00:31:20,320 --> 00:31:22,600 Speaker 1: millennials today. If you're not in the game, all you 627 00:31:22,640 --> 00:31:26,520 Speaker 1: do is get further and further behind. It's easy for 628 00:31:26,560 --> 00:31:28,600 Speaker 1: the millennia, or it's easy for the boomers because they 629 00:31:28,640 --> 00:31:30,400 Speaker 1: bought when it was cheap and they just keep rolling 630 00:31:30,400 --> 00:31:32,920 Speaker 1: that equity over, rolling the equity, rolling the equity over. 631 00:31:32,960 --> 00:31:35,000 Speaker 1: But if you're not in the game, it's very difficult 632 00:31:35,000 --> 00:31:37,200 Speaker 1: to get in. And that's what happens. If you were 633 00:31:37,200 --> 00:31:40,160 Speaker 1: to sell your bitcoin or sell that trophy property, it's 634 00:31:40,240 --> 00:31:41,800 Speaker 1: very difficult to get back in. So what you want 635 00:31:41,840 --> 00:31:43,960 Speaker 1: to do is keep that trophy property, allow it to 636 00:31:44,040 --> 00:31:47,480 Speaker 1: keep going up in value, and leverage debt against it 637 00:31:47,560 --> 00:31:51,240 Speaker 1: because it's tax free and you still have the asset 638 00:31:51,480 --> 00:31:54,440 Speaker 1: to compound the value for you. Does that make sense? 639 00:31:54,880 --> 00:31:57,800 Speaker 1: That's the goal. Let's talk about some of the numbers 640 00:31:57,800 --> 00:32:01,160 Speaker 1: that potentially could be behind this all right, So I'll 641 00:32:01,200 --> 00:32:02,640 Speaker 1: run you through this now. First of all, like I said, 642 00:32:02,680 --> 00:32:05,440 Speaker 1: this can happen on any asset. You can do this 643 00:32:05,480 --> 00:32:08,000 Speaker 1: on real estate. It's what my good friend Robert Kiyosaki does. 644 00:32:08,800 --> 00:32:11,040 Speaker 1: When Robert and I, he's been my mentor for twenty 645 00:32:11,080 --> 00:32:13,560 Speaker 1: five years in books, but we became friends after I 646 00:32:13,560 --> 00:32:16,440 Speaker 1: started going on to speak the speaking circuit, if you will, 647 00:32:16,480 --> 00:32:18,600 Speaker 1: speaking at all these different conferences and things like that. 648 00:32:18,840 --> 00:32:22,000 Speaker 1: And I remember specifically at our mutual friend George Gammon's conference, 649 00:32:22,520 --> 00:32:24,480 Speaker 1: he was calling me out from stage. I was sitting 650 00:32:24,520 --> 00:32:26,720 Speaker 1: in the crowd because I was living in Puerto Rico 651 00:32:26,760 --> 00:32:28,600 Speaker 1: at the time, and he's like, oh, these guys like 652 00:32:28,640 --> 00:32:30,720 Speaker 1: Mark Moss moving all the way to Puerto Rico with 653 00:32:30,760 --> 00:32:32,880 Speaker 1: their families, so they don't if they can lower their 654 00:32:32,880 --> 00:32:36,000 Speaker 1: tax liability. They don't understand. The rich like me don't 655 00:32:36,000 --> 00:32:39,240 Speaker 1: pay taxes. That's what he would say. So Robert Kiazaki 656 00:32:39,240 --> 00:32:42,600 Speaker 1: doesn't pay taxes because he uses the strategy does one 657 00:32:42,640 --> 00:32:47,120 Speaker 1: percent use, which is to leverage debt. So you buy 658 00:32:47,160 --> 00:32:49,400 Speaker 1: the real estate, you let the real estate go up 659 00:32:49,400 --> 00:32:52,040 Speaker 1: in value, you borrow money against the real estate that 660 00:32:52,080 --> 00:32:54,160 Speaker 1: comes out tax free. Let's talk about how you can 661 00:32:54,200 --> 00:32:56,440 Speaker 1: do that with bitcoin. So let's just say bitcoin is 662 00:32:56,480 --> 00:32:59,120 Speaker 1: not going to continue two hundred percent growth rate this year. 663 00:32:59,160 --> 00:33:01,280 Speaker 1: I think it will one hundred and fifty percent next year, 664 00:33:01,360 --> 00:33:03,200 Speaker 1: but then it's probably going to drop by fifty percent. 665 00:33:03,240 --> 00:33:05,280 Speaker 1: Then it's gonna go up one hundred percent. Down is 666 00:33:05,280 --> 00:33:07,080 Speaker 1: gonna go by fifty percent. Then it's going to drop 667 00:33:07,080 --> 00:33:09,560 Speaker 1: thirty five percent. So it's gonna about what we've seen 668 00:33:09,760 --> 00:33:11,880 Speaker 1: for the last fifteen years. You have like four good years, 669 00:33:11,880 --> 00:33:14,160 Speaker 1: one down year, four good years, one down year, so 670 00:33:14,200 --> 00:33:16,280 Speaker 1: I've sort of projected like that. So let's just say hypothetically, 671 00:33:16,360 --> 00:33:19,680 Speaker 1: you buy one hundred thousand dollars worth of bitcoin today 672 00:33:20,680 --> 00:33:24,400 Speaker 1: and in a year it's worth three hundred thousand dollars 673 00:33:24,440 --> 00:33:26,800 Speaker 1: in bitcoin. Then it goes to one hundred fifty percent. 674 00:33:26,920 --> 00:33:28,760 Speaker 1: So now you have it's worth seven hundred two thousand, 675 00:33:28,880 --> 00:33:30,360 Speaker 1: Then it goes to one hundred percent, it's worth three 676 00:33:30,400 --> 00:33:32,800 Speaker 1: and seventy five thousand, it goes to one hundred percent, 677 00:33:32,800 --> 00:33:35,760 Speaker 1: it's worth sven hundred thousand. Okay, Now on year five, 678 00:33:36,480 --> 00:33:38,520 Speaker 1: what I could do is I can take a loan 679 00:33:38,720 --> 00:33:41,400 Speaker 1: I can borrow against my bitcoin, and I would only 680 00:33:41,400 --> 00:33:45,000 Speaker 1: put ten percent at risk. Leverage is very dangerous. Okay, 681 00:33:45,120 --> 00:33:48,000 Speaker 1: you could lose everything if you don't use credit properly. 682 00:33:48,360 --> 00:33:51,600 Speaker 1: So I'm only advocating for ten percent. It's not gonna 683 00:33:51,600 --> 00:33:53,880 Speaker 1: You're not gonna die with ten percent leverage. At worst, 684 00:33:53,920 --> 00:33:56,680 Speaker 1: you just sell it, you just cash it in. That 685 00:33:56,720 --> 00:34:00,160 Speaker 1: ten percent gives you seventy five thousand dollars. Now you 686 00:34:00,160 --> 00:34:04,880 Speaker 1: have seventy five grand of debt that's non taxable. The 687 00:34:04,920 --> 00:34:10,080 Speaker 1: next year you borrow ten percent again, and then you 688 00:34:10,160 --> 00:34:13,360 Speaker 1: take that money, you pay off the previous debt, and 689 00:34:13,400 --> 00:34:15,560 Speaker 1: you're left with seventy five thousand dollars again, a free 690 00:34:15,560 --> 00:34:19,000 Speaker 1: cash flow. The next year, you can borrow ten percent again, 691 00:34:20,040 --> 00:34:23,040 Speaker 1: which is enough to pay off the previous debt and 692 00:34:23,239 --> 00:34:27,160 Speaker 1: give you seventy five thousand again. The next year you 693 00:34:27,280 --> 00:34:29,520 Speaker 1: borrow ten percent again. The next year you have to 694 00:34:29,560 --> 00:34:31,520 Speaker 1: go up to twenty percent because of the way bitcoin 695 00:34:31,600 --> 00:34:34,719 Speaker 1: dropped down. But each time I borrow it gives me 696 00:34:34,840 --> 00:34:37,880 Speaker 1: enough money to pay off the previous debt and have 697 00:34:38,000 --> 00:34:41,120 Speaker 1: about seventy five grand to a free cash flow to 698 00:34:41,200 --> 00:34:43,880 Speaker 1: live now. I have this all on a Calculator spreadsheet. 699 00:34:43,880 --> 00:34:44,880 Speaker 1: If you want to get it, you can go to 700 00:34:44,920 --> 00:34:48,080 Speaker 1: my website At my website is one Markmoss dot com. 701 00:34:48,120 --> 00:34:50,640 Speaker 1: That's the number one one Markmoss dot com. You can 702 00:34:50,680 --> 00:34:53,719 Speaker 1: download this entire worksheet workbooks you can understand this a 703 00:34:53,719 --> 00:34:58,120 Speaker 1: little bit better. But not only is the amount of 704 00:34:58,200 --> 00:35:00,520 Speaker 1: debt that we're leveraging stays about the same. It goes 705 00:35:00,560 --> 00:35:03,799 Speaker 1: anywhere from ten to twelve percent. It goes as high 706 00:35:03,840 --> 00:35:06,280 Speaker 1: as twenty percent in one year, but then it drops 707 00:35:06,280 --> 00:35:09,600 Speaker 1: down into eight percent, seven percent, six percent. And each 708 00:35:09,680 --> 00:35:11,560 Speaker 1: year the amount of free cash flow in debt that 709 00:35:11,600 --> 00:35:14,400 Speaker 1: we keep goes up as well, starting at seventy five thousand, 710 00:35:14,719 --> 00:35:17,399 Speaker 1: and in year twenty going up to its highest two 711 00:35:17,440 --> 00:35:21,720 Speaker 1: hundred and thirty one thousand. Why because inflation you're gonna 712 00:35:21,800 --> 00:35:24,680 Speaker 1: have to make that much more. If in twenty years 713 00:35:24,680 --> 00:35:27,200 Speaker 1: from now, the equivalent of seventy five grand is going 714 00:35:27,239 --> 00:35:29,480 Speaker 1: to be about two hundred thirty grand, which is again 715 00:35:29,800 --> 00:35:31,719 Speaker 1: why you need to be doing something like this, because 716 00:35:31,719 --> 00:35:34,239 Speaker 1: if you're not keeping up with or beating inflation, you're 717 00:35:34,280 --> 00:35:37,960 Speaker 1: only falling further behind. Now at the end of a 718 00:35:38,000 --> 00:35:42,839 Speaker 1: twenty year cycle. In this worksheet, you have taken out 719 00:35:43,080 --> 00:35:49,200 Speaker 1: two point four million dollars of debt, but that's against 720 00:35:49,520 --> 00:35:53,960 Speaker 1: fifty million dollars worth of assets. You ever heard this, 721 00:35:54,000 --> 00:35:57,200 Speaker 1: I've tweeted about it before. But die with debt. So 722 00:35:57,239 --> 00:35:58,880 Speaker 1: what you want to do is you want to leverage 723 00:35:58,920 --> 00:36:00,320 Speaker 1: debt and you can die with that. I die with 724 00:36:00,320 --> 00:36:01,680 Speaker 1: two and a half million dollars with a debt against 725 00:36:01,680 --> 00:36:05,839 Speaker 1: twenty five million dollars of assets. So what so what? 726 00:36:06,080 --> 00:36:07,480 Speaker 1: So we want to leverage debt? This is what the 727 00:36:07,560 --> 00:36:11,240 Speaker 1: rich do. They don't pay taxes. Imagine when you pay taxes, 728 00:36:11,239 --> 00:36:14,400 Speaker 1: you lose fifty percent. How much slower your wealth grows 729 00:36:14,840 --> 00:36:17,160 Speaker 1: versus if you don't pay taxes, and how much faster 730 00:36:17,239 --> 00:36:19,759 Speaker 1: it can grow. Now, there's way more advanced strategies on 731 00:36:19,800 --> 00:36:21,960 Speaker 1: the back of this what I call the velocity of money. 732 00:36:21,960 --> 00:36:23,319 Speaker 1: But I don't have time to get into all that. 733 00:36:23,640 --> 00:36:25,000 Speaker 1: We're going to wrap it up here. If you want 734 00:36:25,000 --> 00:36:27,480 Speaker 1: this worksheet and all the instructions and the videos that 735 00:36:27,520 --> 00:36:29,680 Speaker 1: goes with it, just go to my website Onemarkmoss dot com, 736 00:36:29,680 --> 00:36:32,040 Speaker 1: the number one Mark Moss, and you can download it's 737 00:36:32,040 --> 00:36:35,080 Speaker 1: all for free. It's a free tool for you to 738 00:36:35,120 --> 00:36:37,359 Speaker 1: sort of help you plot this out. Now, if you're 739 00:36:37,360 --> 00:36:39,040 Speaker 1: just tuning in you're listening to the Mark Moss Show. 740 00:36:39,080 --> 00:36:42,440 Speaker 1: Of course we're always talking about the decentralized revolution, the 741 00:36:42,440 --> 00:36:44,839 Speaker 1: way the world is changing, and you either get with 742 00:36:44,920 --> 00:36:46,680 Speaker 1: it and you take advantage of it, or you fall 743 00:36:46,719 --> 00:36:49,800 Speaker 1: further behind. We talk about it through lens of politics, finance, 744 00:36:49,840 --> 00:36:52,400 Speaker 1: and technology. If you're listening on the radio, this is 745 00:36:52,440 --> 00:36:54,880 Speaker 1: my last radio show, so keep up with me on 746 00:36:54,920 --> 00:36:57,880 Speaker 1: the podcast at It's the Mark Moss Show on your 747 00:36:57,880 --> 00:37:01,480 Speaker 1: favorite podcast player or on YouTube tube at Market Disruptors 748 00:37:01,880 --> 00:37:03,840 Speaker 1: and that's what I got. Thanks so much for listening. 749 00:37:04,520 --> 00:37:05,239 Speaker 1: Until next time.