WEBVTT - The Mark Moss Show 2-28-24 0:00:00.160 --> 0:00:03.120 Bitcoin. It's all over the news, but what is it? 0:00:03.640 --> 0:00:06.320 You hear lots of different things. It's lots of different 0:00:06.360 --> 0:00:09.119 things to lots of different people. People talk about it 0:00:09.160 --> 0:00:12.080 being money, a medium of exchange. Some people say it's 0:00:12.160 --> 0:00:14.200 only a store of value and will never be a 0:00:14.240 --> 0:00:17.400 medium exchange. Well, I'm here to tell you that it's 0:00:17.560 --> 0:00:20.600 all of that and more. I want to break down 0:00:20.800 --> 0:00:24.200 exactly how we can use this as a store vibe. Today, 0:00:24.200 --> 0:00:27.040 we're going to talk about sort of where it's been, 0:00:27.080 --> 0:00:31.080 but more importantly, where it's going into the future. And 0:00:31.240 --> 0:00:34.639 I'm going to break down a strategy of how I've 0:00:34.720 --> 0:00:36.919 figured it out a way how you can buy this 0:00:37.080 --> 0:00:41.480 scarce asset you could own it forever, literally retire off 0:00:41.520 --> 0:00:45.200 of it, and still continue to fund your kids, your grandkids, 0:00:45.240 --> 0:00:47.800 your great grandkids, and so much. Further, this is a 0:00:47.840 --> 0:00:51.200 strategy that only the ultra rich have used up until now, 0:00:51.479 --> 0:00:55.320 but with a technology like bitcoin, it becomes available to everybody. 0:00:55.560 --> 0:00:57.080 And that's exactly what we're going to talk about today. 0:00:57.080 --> 0:00:58.480 If youre just tune in and you're listening to the 0:00:58.560 --> 0:01:01.280 Mark Moss Show, we talk about the world do the 0:01:01.320 --> 0:01:04.679 lens of politics, finance, and technology, and today we're going 0:01:04.720 --> 0:01:07.880 to talk about finance and technology, of course, how bitcoin 0:01:07.959 --> 0:01:12.600 is revolutionizing the finance industry, a technology revolutionizing that, and 0:01:12.680 --> 0:01:16.280 how you and I can use this to build wealth 0:01:16.400 --> 0:01:19.440 for generations, generational wealth. Now, before we get into the 0:01:19.440 --> 0:01:22.399 exact strategies and how you can employ that, we'll talk 0:01:22.440 --> 0:01:25.360 a little bit about sort of where it's at right 0:01:25.400 --> 0:01:28.160 now and where it's going. So we'll start there now. 0:01:28.160 --> 0:01:30.360 First of all, if you're not aware, I don't know, 0:01:30.400 --> 0:01:32.360 if you've been living, you know, in a bomb shelter, 0:01:32.480 --> 0:01:36.039 underground or something like that. Then if not, then you 0:01:36.240 --> 0:01:39.880 already know that bitcoin has been making a massive gains. 0:01:39.959 --> 0:01:43.120 Right we had the ETF that came out recently, and 0:01:43.240 --> 0:01:44.959 leading up to the ETF, we saw the price of 0:01:44.959 --> 0:01:47.640 bitcoin continue to rise over and over and over, and 0:01:47.920 --> 0:01:50.640 it's not back to its previous all time high yet, 0:01:50.680 --> 0:01:53.240 but it's close. It's certainly knocking on the door. But 0:01:54.280 --> 0:01:56.840 the point I want to hit on first is that 0:01:57.080 --> 0:02:00.400 it's not back to its new all time to a 0:02:00.480 --> 0:02:04.240 new all time I priced in US dollars. Now, this 0:02:04.320 --> 0:02:06.760 is one of the reasons why bitcoin or something like 0:02:06.800 --> 0:02:10.760 bitcoin is important a neutral reserve asset, more importantly, not 0:02:10.840 --> 0:02:13.560 just a neutral reserve asset. Gold was a neutral reserve asset, 0:02:14.919 --> 0:02:17.359 A neutral reserve asset. When I say when I say that, 0:02:17.400 --> 0:02:19.200 I mean an asset that nobody can control. Right. The 0:02:19.200 --> 0:02:23.480 problem is is that we use money dollars or euros 0:02:23.760 --> 0:02:28.400 or yuan or yen or payss as a unit of account. 0:02:28.560 --> 0:02:31.480 Let me just back it up. Okay. Money is an 0:02:31.560 --> 0:02:37.000 evolutionary process. It's emergent. It's an evolutionary path that could 0:02:37.320 --> 0:02:40.839 make it not always does so. Money what we use 0:02:40.840 --> 0:02:44.240 as money, something to store our energy, our value, store 0:02:44.280 --> 0:02:47.560 our wealth in and use as trading as a medium 0:02:47.560 --> 0:02:49.640 exchange to get the goods and service that we want 0:02:49.960 --> 0:02:54.840 is has emerged and evolved throughout history. We've had lots 0:02:54.880 --> 0:02:58.120 of things be money or medium of exchange or stores 0:02:58.160 --> 0:03:01.480 of value. And those would be rocks, those would be feathers, 0:03:01.600 --> 0:03:05.840 those would be seashells, lots of things. Now gold emerged 0:03:05.840 --> 0:03:07.680 as that. But let me give you this evolutionary path. 0:03:07.720 --> 0:03:11.160 It starts with first a collectible. Wow, look at this 0:03:11.200 --> 0:03:13.320 cool rock. Look at this cool shell. It's pretty cool. 0:03:13.880 --> 0:03:16.040 I like it. I'm gonna keep it. Now. It starts 0:03:16.080 --> 0:03:19.120 as a collectible. Maybe if if it has the right 0:03:19.120 --> 0:03:22.720 actributes it could evolve from a collectible to a store 0:03:22.720 --> 0:03:26.480 of value. So we see today, like my kids collected 0:03:26.520 --> 0:03:28.440 all kinds of things when their little kids. One of 0:03:28.440 --> 0:03:30.480 the things that my daughters loved to collect with these 0:03:31.200 --> 0:03:34.119 little pet shops. There's like little tiny figurines, like little 0:03:34.160 --> 0:03:37.840 bobble heads. We had hundreds of these things. They collected them, right, 0:03:38.040 --> 0:03:40.080 every new release that came out, they had to have it. 0:03:40.360 --> 0:03:43.520 But it never evolved to a store of value. Even 0:03:43.560 --> 0:03:45.760 though we had one hundred, we had like containers full 0:03:45.760 --> 0:03:48.680 of these things. We never stored our wealth in them, right, 0:03:48.760 --> 0:03:52.480 they're not worth anything. But some collectibles do become a 0:03:52.480 --> 0:03:55.520 store of value. So baseball cards, collectibles that a lot 0:03:55.560 --> 0:04:00.680 of people store their wealth in, watches, fine art, old cars, painting, right, 0:04:00.800 --> 0:04:03.880 you get that. Pokemon cards, even people store their wealth 0:04:03.880 --> 0:04:07.400 in those, all right. So some of these collectibles, not 0:04:08.320 --> 0:04:11.360 the pet shops, but some collectibles do make it to 0:04:11.400 --> 0:04:15.400 the evolutionary path of becoming a store value. Then, maybe 0:04:15.560 --> 0:04:18.240 not all of them, most of them not, but if 0:04:18.279 --> 0:04:20.400 they have the right attributes, they could evolve to the 0:04:20.400 --> 0:04:24.520 next stage, which is a medium of exchange. All right. Now, 0:04:24.680 --> 0:04:26.960 in order to evolve into that, it has to have 0:04:26.960 --> 0:04:34.960 the right attributes of moneiness. So that's divisibility, portability, fungibility, sellability, 0:04:35.080 --> 0:04:37.720 things like that. Right, So, like a pet shop isn't 0:04:37.720 --> 0:04:40.200 going to make a good form of money because it's 0:04:40.240 --> 0:04:43.320 not divisible. It's just one pet shop. A cow can't 0:04:43.360 --> 0:04:44.880 be a good form of money because a cow is 0:04:44.880 --> 0:04:47.680 not divisible. A cow is not portable. How do I 0:04:47.680 --> 0:04:51.280 transport a cow? A banana is not durable. I can't 0:04:51.279 --> 0:04:54.200 store my wealth and bananas because they're gonna go bad. Okay, 0:04:54.360 --> 0:04:56.600 if it evolves to a medium exchange, then eventually it 0:04:56.680 --> 0:04:59.080 could evolve to what we call a unit of account 0:04:59.080 --> 0:05:01.280 where we start to measure things in it. And so 0:05:01.320 --> 0:05:03.080 now we're back to the measuring things. You have to 0:05:03.160 --> 0:05:10.880 understand that everything in life is a trade and feat currency. Basically, 0:05:10.920 --> 0:05:13.479 the dollar or whatever currency y're end is one half 0:05:13.520 --> 0:05:16.000 of every transaction. So how much is a gallon of 0:05:16.000 --> 0:05:21.000 gas for sixty nine four dollars and sixty nine cents 0:05:21.040 --> 0:05:24.960 per gallon? How much is a house three hundred thousand dollars? 0:05:25.200 --> 0:05:28.200 How much is a steak dinner sixty dollars? Right, so 0:05:28.200 --> 0:05:33.040 everything's measured in that unit of account. But here's the problem. 0:05:33.360 --> 0:05:35.719 One we have lots of units of account, so we 0:05:35.760 --> 0:05:40.480 have dollars, un one, pesos, et cetera. But more importantly 0:05:40.560 --> 0:05:45.039 number two is that each one of those denominators in 0:05:45.080 --> 0:05:49.200 the equation is constantly being manipulated adjusted. It's like I'm 0:05:49.200 --> 0:05:51.640 trying to build a house with an elastic tape measure. 0:05:52.080 --> 0:05:54.400 So back to what I was talking about. Sorry, long, 0:05:54.760 --> 0:05:58.680 long way around here. The US bitcoin has not made 0:05:58.720 --> 0:06:01.520 a new all time high priced in US dollars, but 0:06:01.600 --> 0:06:05.520 it did just hit new all time highs in fourteen 0:06:05.720 --> 0:06:10.560 different countries this week. Not one, not two, not three. 0:06:10.720 --> 0:06:15.000 We're talking about fourteen different countries that it hit this week, 0:06:15.240 --> 0:06:17.120 so it's a pretty big deal. Now, again, this kind 0:06:17.120 --> 0:06:19.600 of highlights the point of the problem that we have, 0:06:19.680 --> 0:06:21.720 which is one of the parts that bitcoin is here 0:06:21.760 --> 0:06:26.000 to solve, is that we don't have a neutral reserve asset. 0:06:26.120 --> 0:06:28.719 Everybody is managing on their own. Now, what are the 0:06:28.720 --> 0:06:37.920 fourteen countries that hit Argentina, Barandi, Congo, Egypt, Ghana, Japan, Laos, Lebanon, Malawi, Nigeria, Pakistan, 0:06:38.000 --> 0:06:42.040 Sierra Leone, Sudan, and Turkey. So each one of those 0:06:42.120 --> 0:06:45.760 nations just hit a new all time high in bitcoin. 0:06:46.480 --> 0:06:50.680 The dollar, My good friend Brent Johnson, Santaio Capital. We've 0:06:50.680 --> 0:06:53.120 had him on my main YouTube channel many times. He 0:06:53.160 --> 0:06:56.200 talks about the dollar milkshake theory, and the dollar milkshake 0:06:56.200 --> 0:06:59.120 theories at the dollar will suck the liquidity out of 0:06:59.200 --> 0:07:02.599 all the other currenturrencies, and that's exactly what's happening. So 0:07:02.640 --> 0:07:05.960 the dollars like this dollar milkshake, it's draining liquidy out 0:07:05.960 --> 0:07:08.440 of all the other FEA currencies. And so we're seeing 0:07:08.480 --> 0:07:14.400 these currencies as I've just mentioned Lebanon, Turkey, Peru, Venezuela, Argentina, 0:07:14.800 --> 0:07:18.920 all of these currencies are collapsing as the dollars getting 0:07:18.960 --> 0:07:22.679 stronger and stronger and stronger. But the dollars getting stronger 0:07:22.680 --> 0:07:27.200 and stronger and stronger against other currencies, it's not getting 0:07:27.240 --> 0:07:30.800 stronger against other assets. That is a very key piece 0:07:30.800 --> 0:07:32.440 that you have to hit on. But back to this 0:07:32.480 --> 0:07:34.720 point that we're talking about. So we've seen it now, 0:07:35.200 --> 0:07:38.360 as I said, fourteen currencies, it's got back to a 0:07:38.360 --> 0:07:41.520 new all time high. Another key piece that I want 0:07:41.520 --> 0:07:43.600 to talk about bitcoin just real quickly. A lot of 0:07:43.640 --> 0:07:46.200 people will think that it's not a good store value. 0:07:46.840 --> 0:07:48.520 How can it be a good store value when it's 0:07:48.600 --> 0:07:50.560 very volatile. Well, first of all, volatile means that it 0:07:50.600 --> 0:07:54.480 goes up and down, So I guess the store value 0:07:54.480 --> 0:07:57.840 means it never changes. But as my favorite economist, lugwoodvon 0:07:57.880 --> 0:08:00.200 Misa says that in the world of economics, there there's 0:08:00.200 --> 0:08:03.040 no such thing as a constant. So if you're using 0:08:03.120 --> 0:08:07.400 things like oil or gold to measure, well, the amount 0:08:07.440 --> 0:08:11.160 of oil and gold is changing all the time, so 0:08:11.160 --> 0:08:14.640 there's never a constant until now there is. Right. So 0:08:14.680 --> 0:08:17.640 bitcoin has a fixed supply, and so it is a 0:08:17.640 --> 0:08:19.920 good store value. But it's volatile and it's going up. 0:08:20.200 --> 0:08:23.080 But if you look at it over any short term period, 0:08:23.120 --> 0:08:25.360 you could say, well, but look it's down. So for example, 0:08:25.400 --> 0:08:27.680 I just said that right now bitcoin's sitting around a 0:08:27.720 --> 0:08:30.480 fifty two thousand dollars and the high was set at 0:08:30.480 --> 0:08:32.600 sixty nine thousand. So Mark, how can you say it's 0:08:32.600 --> 0:08:34.640 a good store value. I bought it at sixty nine 0:08:34.640 --> 0:08:38.960 thousand and it's only worth fifty two. I lost my value. 0:08:39.000 --> 0:08:40.880 It's not a good store value, it's not a good 0:08:40.880 --> 0:08:44.839 hedge against inflation. I lost money. Well, what I'd say 0:08:44.840 --> 0:08:47.280 about that is that you have to zoom out, and 0:08:47.320 --> 0:08:50.679 what we can see is that bitcoin is a four 0:08:50.800 --> 0:08:54.400 year bet. So in business, in finance, we have what 0:08:54.440 --> 0:08:57.320 we call cycles. We have long term business cycles, we 0:08:57.400 --> 0:09:01.800 have debt and credit cycles, we have real estate cycles, 0:09:02.320 --> 0:09:05.080 and we also have bitcoin cycles. And so whether it's 0:09:05.080 --> 0:09:08.920 a business or an investment, or a real estate or bitcoin, 0:09:08.960 --> 0:09:12.280 you have to understand the cycles. Otherwise you're kind of 0:09:12.320 --> 0:09:14.520 talking like somebody who's not really well informed. But I 0:09:14.520 --> 0:09:16.360 don't want that to happen. I want you to be informed. 0:09:16.559 --> 0:09:18.360 So let me break it down for you. It's actually 0:09:18.400 --> 0:09:20.760 pretty simple, but I gotta take a very quick break. 0:09:21.520 --> 0:09:23.120 If you're just tune in, you're listening to the Mark 0:09:23.200 --> 0:09:27.200 Moss Show talking about bitcoin and its evolutionary path. I'll 0:09:27.240 --> 0:09:28.720 be back with more in a minute. Don't go away, 0:09:28.840 --> 0:09:31.240 bear back, all right, welcome back. If you just tune in, 0:09:31.240 --> 0:09:34.240 you're listening to the Mark Moas Show, we're talking about 0:09:34.600 --> 0:09:39.840 bitcoin in bitcoin cycles, business cycles, real estate cycles, credit cycles, 0:09:39.840 --> 0:09:41.319 and so much more. So. What I was talking about 0:09:41.360 --> 0:09:43.800 is bitcoin is making you all time highs and fourteen 0:09:43.800 --> 0:09:48.079 currencies not yet in the US dollar, and actually when 0:09:48.120 --> 0:09:50.720 you adjust the US dollar for inflation back to them 0:09:50.760 --> 0:09:55.120 being so manipulated. If we look at that, the bitcoin 0:09:55.160 --> 0:09:57.160 is nowhere near back to an all time high because 0:09:57.160 --> 0:09:59.040 the dollar isn't worth near what it used to be 0:09:59.080 --> 0:10:01.480 back then. But going back to what I'm talking about here, 0:10:01.720 --> 0:10:05.400 so we know that there's business cycles, there's credit debt cycles, 0:10:05.880 --> 0:10:07.520 Like I said, even in real estate. So I started 0:10:07.520 --> 0:10:09.440 my career in real estate as a real estate investor, 0:10:09.559 --> 0:10:11.680 and I still own and buy a lot of real estate. 0:10:12.240 --> 0:10:14.600 Typically the sort of rule of thumb with real estate 0:10:14.640 --> 0:10:16.920 would be like for your house, like don't buy a 0:10:16.920 --> 0:10:18.680 house unless you plan to hold it for at least 0:10:18.760 --> 0:10:21.640 five years. And the reason why is because over a 0:10:21.640 --> 0:10:24.760 five year period, even though real estate has gone down before, 0:10:25.000 --> 0:10:27.000 it typically comes back up. And so you're going to 0:10:27.040 --> 0:10:28.640 be pretty safe if you have at least a five 0:10:28.720 --> 0:10:32.360 year record. With businesses, specifically you know, bigger businesses, it 0:10:32.400 --> 0:10:36.120 typically takes years to make to become profitable, right, so 0:10:36.120 --> 0:10:38.720 you're investing money, investing money, you're building building building eventually 0:10:38.720 --> 0:10:40.920 comes profitable. For a big business, you know, something that 0:10:41.000 --> 0:10:43.520 might go public, like a public traded company, typically you 0:10:43.520 --> 0:10:45.560 have like a ten year period, which is why with 0:10:45.640 --> 0:10:47.720 like venture capital and things like that, they have a 0:10:47.760 --> 0:10:51.360 ten year holding period. So I know if I invest 0:10:51.440 --> 0:10:53.080 in this early stage company, I got to just sit 0:10:53.080 --> 0:10:54.680 back and away for ten years. I know, if I 0:10:54.679 --> 0:10:56.079 buy this piece of real estate, I gotta sit back 0:10:56.080 --> 0:10:58.240 away for five years. And bitcoin is like the same way. 0:10:58.559 --> 0:11:00.079 If you buy bitcoin, you need to sit back and 0:11:00.120 --> 0:11:03.680 wait for four years. What we can see going back 0:11:03.679 --> 0:11:07.240 through now about fifteen years of data that there's never 0:11:07.360 --> 0:11:13.240 been a four year period that Bitcoin's been down. So 0:11:13.520 --> 0:11:16.520 in this four year cycle, during a four year investment period, 0:11:16.520 --> 0:11:23.320 bitcoin has never had annualized returns under thirty percent. Now, 0:11:23.400 --> 0:11:26.480 let's put this into perspective. The S and P five hundred, 0:11:26.480 --> 0:11:29.959 which has been absolutely crushing it averages depends on what period? 0:11:30.120 --> 0:11:32.560 Is it a sixty year cycle and eighty year cycle? 0:11:32.600 --> 0:11:34.960 Depends is it over the last twelve months? Right? So 0:11:35.240 --> 0:11:37.440 what period? But over like a sixty year period, the 0:11:37.480 --> 0:11:39.720 S and P five hundred returns about seven and a 0:11:39.720 --> 0:11:43.360 half eight percent kind of depends on what period it is, 0:11:43.360 --> 0:11:45.760 but somewhere in the seventy percent range, right, Okay, So 0:11:46.480 --> 0:11:50.160 during a four year investment period, any four year period, 0:11:50.280 --> 0:11:54.040 Bitcoin's never had annualized returns under less than thirty percent. 0:11:54.160 --> 0:11:56.800 That's pretty good. No matter how bad you time the 0:11:56.880 --> 0:12:00.160 investment market, if you would have bought at the the 0:12:00.200 --> 0:12:03.960 previous peak in twenty seventeen, doesn't matter where you're at. 0:12:04.040 --> 0:12:07.120 Within four years you had averaged at least thirty percent, right, 0:12:07.280 --> 0:12:10.400 So that's pretty good. It's man, was that four or 0:12:10.440 --> 0:12:14.280 five times what the SMP five hundreds is done. Now 0:12:14.440 --> 0:12:17.600 if we look at the four year investment period against 0:12:17.679 --> 0:12:19.840 other assets, we can see, like I said, bitcoin has 0:12:19.840 --> 0:12:22.360 about thirty to sixty percent annualized returns in that four 0:12:22.440 --> 0:12:24.559 year period, the SMP five hundred has had about a 0:12:24.640 --> 0:12:27.440 ten percent annualized return. Real estate has had about a 0:12:27.480 --> 0:12:30.200 ten percent return as well. Why have a SMP five 0:12:30.240 --> 0:12:33.400 hundred and real estate both had about ten percent because 0:12:33.400 --> 0:12:37.679 they're perfect proxies for inflation. Perfect proxies. What does that mean? 0:12:37.840 --> 0:12:40.760 That means they basically move up at the rate of inflation, 0:12:41.480 --> 0:12:44.720 So you're not making money, but at least you're sort 0:12:44.720 --> 0:12:49.400 of protecting or offsetting your losses. Whereas bitcoin isn't just 0:12:49.520 --> 0:12:52.720 keeping up with inflation, it's beating inflation, which is what 0:12:52.760 --> 0:12:56.200 we want. Right the goal I mean, obviously step number 0:12:56.240 --> 0:12:58.480 one don't lose your money, right, don't let the state 0:12:58.520 --> 0:13:00.480 steal your money through inflation set number one. But two, 0:13:00.640 --> 0:13:02.720 how can we get ahead. And if you're just making 0:13:02.720 --> 0:13:04.920 your ten percent in real estate or in S and P. 0:13:05.000 --> 0:13:09.400 Five hundred, you're not getting ahead. Now, let's go back 0:13:09.440 --> 0:13:11.280 and just look at some math. Let's not go too 0:13:11.320 --> 0:13:14.760 far back again. We can cherry pick data. But there's 0:13:15.000 --> 0:13:18.040 two big epochs of the financial world that I talk 0:13:18.080 --> 0:13:19.320 about quite a bit, and I think we have to 0:13:19.360 --> 0:13:21.400 understand the world to this lens. The financial world with 0:13:21.480 --> 0:13:25.680 this lens. In two thousand and eight, the world changed. 0:13:26.240 --> 0:13:29.400 The way that central banks and governments interact in financial 0:13:29.440 --> 0:13:32.760 markets changed forever, and it's only been accelerating. So what 0:13:32.800 --> 0:13:35.240 happened in two thousand and eight in the United States, 0:13:35.320 --> 0:13:38.800 the Federal Reserve launched quantitative easing. Not only did they 0:13:38.840 --> 0:13:41.000 launch quantitative easing where they started pumping money into the markets, 0:13:41.040 --> 0:13:43.439 but they started pumping money into certain parts of the 0:13:43.440 --> 0:13:46.880 market like buying mortgage backed securities, buying bonds, things like that, 0:13:47.320 --> 0:13:49.520 and that forever changed the way the world works. So 0:13:49.559 --> 0:13:51.040 a lot of times when you look at a financial data, 0:13:51.040 --> 0:13:53.360 if you go back pre two thousand and eight, you 0:13:53.840 --> 0:13:56.480 can't just take that forward because it's not the same. 0:13:57.559 --> 0:14:01.319 The second epoch was basically continuation of that first one. 0:14:01.320 --> 0:14:04.360 And this is the pandemic. So in twenty twenty, the 0:14:04.360 --> 0:14:08.760 world changed. The world had never seen the entire economy 0:14:08.840 --> 0:14:11.520 literally shut down overnight. Businesses that have been in business 0:14:11.520 --> 0:14:14.560 for decades just shut down. We've never seen that before. 0:14:14.800 --> 0:14:17.640 And we also again never saw the central banks of 0:14:17.679 --> 0:14:20.080 the world work in markets like they had done in 0:14:20.120 --> 0:14:24.720 twenty twenty. It's two thousand and eight times one thousand, right, 0:14:25.280 --> 0:14:31.200 So instead of very slowly, very minimally affecting the markets, 0:14:31.240 --> 0:14:33.280 they just jumped full bore in, which is why in 0:14:33.320 --> 0:14:34.760 two thousand and eight, when the S and P five 0:14:34.840 --> 0:14:38.680 hundred dropped about sixty percent, it took seven years to 0:14:38.720 --> 0:14:40.840 get back to a previous all time high. But in 0:14:40.880 --> 0:14:43.400 twenty twenty the market dropped about the same but it 0:14:43.440 --> 0:14:46.760 took like three months, all right, So we have to 0:14:46.840 --> 0:14:48.480 understand there's two different epochs. So I don't want to 0:14:48.520 --> 0:14:50.400 cherry pick data, but a lot of data that we 0:14:50.440 --> 0:14:52.720 look at from a financial standpoint is sort of from 0:14:52.760 --> 0:14:54.480 a two thousand eight from a twenty twenty standpoint. So 0:14:54.560 --> 0:14:57.080 let's just look at from twenty twenty. So in twenty twenty, 0:14:57.280 --> 0:15:00.120 the world was locked down. It's complete chaos. I know, 0:15:00.120 --> 0:15:01.240 if we're all going to die. We didn't know what 0:15:01.280 --> 0:15:04.600 was going on, and the governments of the world did 0:15:04.600 --> 0:15:06.560 something that they'd never done before, which is send everybody 0:15:06.600 --> 0:15:08.400 in the world a stimmy check. Did you get one? 0:15:09.240 --> 0:15:12.120 I didn't get one, unfortunately, but I think you had 0:15:12.120 --> 0:15:14.000 to make less than seventy five thousand dollars. I didn't 0:15:14.000 --> 0:15:15.560 get a stemy check. But they sent stemy checks twelve 0:15:15.600 --> 0:15:19.600 hundred bucks to everybody. Now, some people, most people used 0:15:19.600 --> 0:15:24.280 that money for door dash groceries, to pay rent. A 0:15:24.320 --> 0:15:27.440 lot of people started gambling with it, like Robin Hood 0:15:27.480 --> 0:15:30.880 took off everyone's trading options, doing cryptocurrencies. A lot of 0:15:30.920 --> 0:15:32.640 people took trips, whatever it was. A lot of people 0:15:32.760 --> 0:15:35.280 just took the stimmy and they spent it, which is 0:15:35.280 --> 0:15:38.680 what the government wanted, right, they wanted to stimulate the economy. 0:15:39.360 --> 0:15:42.960 But if we would have taken that twelve hundred dollars, 0:15:43.000 --> 0:15:45.240 which I'm sure many people have taken that twel hundred 0:15:45.240 --> 0:15:47.960 dollars and put it into bitcoin at that time, and 0:15:48.040 --> 0:15:51.000 we fast forward to today now about four years later, 0:15:51.880 --> 0:15:55.600 that twelve hundred dollars investment into bitcoin is now worth 0:15:55.800 --> 0:16:00.000 nine thousand, two hundred and thirty dollars from twelve hundred 0:16:00.360 --> 0:16:04.400 to ninety two hundred. That's a six hundred and sixty 0:16:04.520 --> 0:16:08.040 nine percent return. Six hundred and sixty nine percent return. 0:16:08.040 --> 0:16:10.520 Now that's crazy, right. If you use your twelve hundred 0:16:10.760 --> 0:16:13.880 for the stimulus purposes they wanted, and you bought a 0:16:13.880 --> 0:16:15.560 bunch of food at the grocery store or door dash, 0:16:15.840 --> 0:16:18.760 you probably gained a bunch of weight. But if you 0:16:18.760 --> 0:16:20.520 would have put it in a bitcoin, you would have 0:16:20.560 --> 0:16:23.200 gained a bunch of money. So the takeaway that I 0:16:23.240 --> 0:16:25.640 want to point to here is that if you have 0:16:25.760 --> 0:16:27.920 the right term perspective, and look, if you don't have 0:16:27.920 --> 0:16:30.920 the right term perspective, you have no business investing your money. 0:16:31.320 --> 0:16:33.640 I've talked about this before. I get asked all the time, Mark, 0:16:33.800 --> 0:16:36.240 what's the best asset I should buy? And it's like, 0:16:36.320 --> 0:16:39.440 if you don't know the answer to that, you probably 0:16:39.480 --> 0:16:42.080 shouldn't be buying anything. Even if I told you what 0:16:42.120 --> 0:16:44.480 the best investment is, you probably shouldn't buy it because 0:16:44.520 --> 0:16:47.640 you don't understand it. You won't understand how much you 0:16:47.680 --> 0:16:50.720 should buy, How much should you buy? What you should 0:16:50.760 --> 0:16:53.000 you be watching? What if there's new information that comes 0:16:53.040 --> 0:16:55.960 out that says we need to sell right, and so like, 0:16:56.000 --> 0:16:57.640 if you don't understand enough to know what to buy, 0:16:57.680 --> 0:16:59.960 you're certainly not kind of enough to manage that safe. 0:17:00.320 --> 0:17:01.960 And it's something I say quite a bit, which is 0:17:02.240 --> 0:17:05.399 that the risk is always in the investor and not 0:17:05.640 --> 0:17:08.359 the investment. So I talk about this quite a bit, 0:17:08.400 --> 0:17:10.919 like in terms of like surfing. If I took you 0:17:10.960 --> 0:17:13.880 to Hawaii to pipeline where the waves are thirty feet 0:17:14.200 --> 0:17:16.320 and you're from Kansas, you've never been in the ocean before, 0:17:16.520 --> 0:17:19.879 and I took you out there, you would probably drowned, okay, 0:17:19.920 --> 0:17:23.320 But there's hundreds of people out there every day just playing, 0:17:23.440 --> 0:17:25.560 having fun in the waves, you see. So the risk 0:17:25.680 --> 0:17:28.920 isn't in the wave necessarily, it's in the surfer or 0:17:28.960 --> 0:17:31.040 the person that goes out into the waves. And the 0:17:31.040 --> 0:17:33.280 same is true with your investments. The risk is in 0:17:33.440 --> 0:17:37.440 the investor, it's in you. So again, if you don't 0:17:37.560 --> 0:17:41.120 understand that there's business cycles, there's investment cycles, there's debt 0:17:41.119 --> 0:17:43.919 and credit cycles, there's bitcoin cycles, there's real estates. If 0:17:43.920 --> 0:17:46.879 you don't understand those things, then you probably shouldn't invest 0:17:46.880 --> 0:17:48.520 in the first place, which is why I'm breaking it 0:17:48.520 --> 0:17:50.359 down for you right here. If you're just tuning in. 0:17:50.400 --> 0:17:52.880 You're listening to the Mark Mass Show. We're talking about bitcoin, 0:17:53.440 --> 0:17:56.320 the past, the present, and more importantly, where it's going, 0:17:56.480 --> 0:17:59.880 and how buying a little bit of bitcoin today could 0:18:00.119 --> 0:18:03.439 potentially retire you for the rest of your life. I'm 0:18:03.480 --> 0:18:05.520 gonna break all that down, break down the math. If 0:18:05.560 --> 0:18:07.360 you're just tuning again, like I said, you're listening to 0:18:07.440 --> 0:18:09.280 the Mark Mass Show, I'll be back after a very 0:18:09.280 --> 0:18:11.720 short break. Don't go away right back, all right, welcome back. 0:18:11.720 --> 0:18:13.920 If you just tune in yourthing to the Mark Moss Show, 0:18:13.960 --> 0:18:18.800 and we are talking about the most groundbreaking or revolutionary 0:18:18.800 --> 0:18:21.560 technology the world has ever seen, which of course is 0:18:21.640 --> 0:18:23.720 a bitcoin. And I know that sounds a little bit 0:18:23.800 --> 0:18:28.840 hyper bowl, hyperbolic, whatever, however you say that word because 0:18:29.000 --> 0:18:31.159 a lot of people say it's just like old technology. 0:18:31.160 --> 0:18:32.840 It's like an old rock and Mark, you don't know 0:18:32.880 --> 0:18:35.880 what you're talking about. It has scaling issues. Okay, those 0:18:35.880 --> 0:18:38.560 are like twenty sixteen arguments. You're still bringing those up. 0:18:39.280 --> 0:18:41.960 Things change. And I'm old enough to have been around 0:18:42.440 --> 0:18:45.879 pre Internet, and I remember using the Internet as it 0:18:45.960 --> 0:18:49.040 was being developed and the Internet would never scale, no 0:18:49.080 --> 0:18:51.840 one would ever use it. I've been there as a 0:18:51.880 --> 0:18:58.000 matter of fact, I've told this story before. In two 0:18:58.040 --> 0:19:00.320 thousand and once we had the dot com run up, 0:19:00.680 --> 0:19:02.320 and then we in two thousand we had the dot 0:19:02.320 --> 0:19:05.080 com crash. In two thousand and one, the year after 0:19:05.119 --> 0:19:07.000 the big crash, I had this great idea that I 0:19:07.040 --> 0:19:09.480 was going to build an e commerce website and sell 0:19:09.520 --> 0:19:13.120 products online. And the problem is is that back then 0:19:13.160 --> 0:19:15.440 there was no like word press or Shopify. There was 0:19:15.480 --> 0:19:18.199 no Amazon eBay, there was no Amazon was there, but 0:19:18.480 --> 0:19:19.840 at the time it wasn't really being use for that, 0:19:20.280 --> 0:19:21.760 so there's really no way for me to just go 0:19:21.840 --> 0:19:24.280 sell e coom And I had to hire a developer 0:19:24.320 --> 0:19:26.879 and I think I spent like twenty five thousand dollars 0:19:26.960 --> 0:19:29.240 back then, which is a lot of money to build 0:19:29.320 --> 0:19:31.720 just like the most basic of like e commerce stores 0:19:31.760 --> 0:19:34.480 you can imagine, right. And then I wanted to start 0:19:34.480 --> 0:19:37.359 selling products. I was in the action sports physically in 0:19:37.400 --> 0:19:40.600 like the motorcross niche and I went to these companies 0:19:40.640 --> 0:19:42.280 and I said, hey, I want to sell your products 0:19:42.280 --> 0:19:46.640 on my website. And they laughed at me and they 0:19:46.640 --> 0:19:49.679 told me that nobody would ever buy anything online. It 0:19:49.720 --> 0:19:52.800 was ridiculous, and I'm like, well, I think they will 0:19:53.440 --> 0:19:56.000 and you know, you could be right. I could be right, 0:19:56.000 --> 0:19:57.399 but I'm willing just to give you the money. I'll 0:19:57.400 --> 0:20:00.119 buy your stuff. And a lot of companies told me that, 0:20:00.000 --> 0:20:03.359 but they didn't even want their products being sold on 0:20:03.400 --> 0:20:06.040 the Internet because it was it had this stigma, you know, 0:20:06.119 --> 0:20:08.000 had just had this big crash. Everyone thought it was 0:20:08.000 --> 0:20:10.480 a scam. It was never going to scale. As a 0:20:10.520 --> 0:20:12.919 matter of fact, the Internet had been around since like 0:20:12.920 --> 0:20:15.359 the seventies and eighties, through like Darbay, the military. But 0:20:15.400 --> 0:20:19.080 the first WWW, the first public website, was in nineteen 0:20:19.200 --> 0:20:23.040 ninety The first bitcoin, I'm sorry, the first Internet purchase 0:20:23.119 --> 0:20:26.919