WEBVTT - The Mark Moss Show Nov 22, 2021 0:00:00.120 --> 0:00:03.120 Hey everyone, Welcome back to another episode of The Mark 0:00:03.240 --> 0:00:05.920 Mass Show, where I'm joining you each and every week 0:00:06.360 --> 0:00:12.520 bringing you the weekend's latest news, latest stories on of course, bitcoin, cryptocurrencies, 0:00:12.560 --> 0:00:16.120 and the decentralized revolution, each and every week, making sure 0:00:16.160 --> 0:00:19.960 that you are up to date with the most what 0:00:20.120 --> 0:00:23.759 I call asymmetric information. Now, asymmetric information means that you 0:00:23.840 --> 0:00:27.479 have information that most people don't have. And when you 0:00:27.560 --> 0:00:30.800 have information that most people don't have, it allows you 0:00:30.880 --> 0:00:33.800 to have an edge. It allows you to have um 0:00:33.840 --> 0:00:36.400 an edge in the market where you can have an 0:00:36.440 --> 0:00:40.640 asymmetric opportunity that means you have more upside the downside. Basically, 0:00:40.680 --> 0:00:43.839 what that means is, you know, the way the stock 0:00:43.920 --> 0:00:47.480 market works, the way the real estate market works, those 0:00:47.520 --> 0:00:51.599 have been commoditized. Everybody has all the information and so 0:00:51.640 --> 0:00:55.000 the alpha, which is the profit, has been squeezed. But 0:00:55.080 --> 0:00:57.560 when you can find something brand new, like a private 0:00:57.600 --> 0:01:00.840 equity company or some sort of a somebody that doesn't 0:01:01.280 --> 0:01:04.120 have as much attention on it, um you might find 0:01:04.160 --> 0:01:06.800 something where you know something most people don't have. And 0:01:06.840 --> 0:01:09.560 that's what gives you that a symutal co opportunity, that 0:01:09.560 --> 0:01:13.119 that massive upside edge, and that's where we're at right 0:01:13.120 --> 0:01:16.400 now with bitcoin and with cryptocurrencies. You know, I know 0:01:16.680 --> 0:01:20.240 a lot of you listening right now, UM, I might 0:01:20.319 --> 0:01:22.640 think you're too late. You heard about all the money 0:01:22.680 --> 0:01:25.560 that's been made in the in the years past. It's 0:01:25.640 --> 0:01:27.399 it's one of the most common questions I get asked 0:01:27.400 --> 0:01:31.360 all the time. Is it too late? Did I miss out? Right? 0:01:31.640 --> 0:01:33.880 And on and on and on, And I am here 0:01:33.920 --> 0:01:37.319 to tell you firsthand the answer is no, you did 0:01:37.319 --> 0:01:40.160 not miss out. You are not too late. And honestly, 0:01:40.200 --> 0:01:42.399 I mean just the fact that you might even ask 0:01:42.440 --> 0:01:45.759 yourself the question that but that particular question just shows 0:01:45.800 --> 0:01:48.800 you how early that you are. I mean, we are 0:01:48.880 --> 0:01:50.600 just getting started. As I like to say each and 0:01:50.640 --> 0:01:56.320 every week, this is the decentralized revolution. Now there's um, 0:01:56.360 --> 0:01:58.320 you know, there's new technologies, and you hear about new 0:01:58.320 --> 0:02:01.160 technologies all the time, right new technolog She's like the 0:02:01.200 --> 0:02:04.960 iPhone that was pretty cool. I'm sure most people listening 0:02:04.960 --> 0:02:07.080 to have that, or like Uber that was pretty cool 0:02:07.120 --> 0:02:13.120 as well. And those are technologies that that that continue trends. 0:02:14.040 --> 0:02:18.359 Technological revolutions change the way humanity works. That's what we're 0:02:18.360 --> 0:02:21.440 witnessing right now, and that takes time and So anyway, 0:02:21.639 --> 0:02:24.960 just I'm here to reassure you that you are still early, 0:02:25.360 --> 0:02:29.240 you are not late, um, And so join me each 0:02:29.240 --> 0:02:31.920 and every week on this channel at this time, the 0:02:31.960 --> 0:02:35.000 Mark Moss Show, as we talked about bitcoin and cryptocurrencies 0:02:35.040 --> 0:02:38.840 and the decentralized revolution. Now, if you do tune into 0:02:38.880 --> 0:02:40.840 medi and every week, it will probably be the most 0:02:40.880 --> 0:02:45.400 profitable and hopefully even the most entertaining part of your week. 0:02:46.080 --> 0:02:47.799 But it might come as a surprise to you that 0:02:47.880 --> 0:02:49.800 I'm not going to sit here and talk about the 0:02:49.840 --> 0:02:52.720 price all the time, because out of all the things 0:02:52.760 --> 0:02:56.360 that is happening in this decentralized revolution, I think the 0:02:56.400 --> 0:02:59.519 price is probably the least boring A should say the 0:02:59.560 --> 0:03:03.720 most boring. It's it's the least interesting thing that is happening. 0:03:04.600 --> 0:03:09.400 I mean, we're literally changing the world, literally making moves 0:03:09.440 --> 0:03:13.800 that will shift the way humanity works. Um, that's what's interesting. Um. 0:03:13.880 --> 0:03:16.720 Is it interesting to understand what all these little shifts are, 0:03:16.760 --> 0:03:20.960 how they're working, and what that means for the future. So, UM, 0:03:21.000 --> 0:03:22.440 the way that I like to look at it is, 0:03:23.720 --> 0:03:25.799 I'm sure you've all watched a movie where people went 0:03:25.840 --> 0:03:28.720 back in time. I call it back to the future. 0:03:29.000 --> 0:03:30.800 If you're old enough to remember that one. But you know, 0:03:30.840 --> 0:03:32.320 I'm sure you've all watched a movie where they went 0:03:32.360 --> 0:03:34.280 back in time and they say don't do't don't touch anything. 0:03:34.320 --> 0:03:37.000 Don't touch anything. If you even move one little thing, 0:03:37.520 --> 0:03:39.840 you can have this massive change in the future when 0:03:39.840 --> 0:03:43.320 we go back. That's the ripple effect, butterfly effect. And 0:03:43.400 --> 0:03:45.120 so that's what we like to do, is we like 0:03:45.200 --> 0:03:47.120 to look at these little things that are happening right 0:03:47.200 --> 0:03:52.200 now today that UM witnessing them right now today maybe 0:03:52.320 --> 0:03:55.240 doesn't seem like they're that big of a deal. But 0:03:55.440 --> 0:03:57.080 these are the little things that we need to be 0:03:57.120 --> 0:04:00.360 aware of so that we can take advantage us we 0:04:00.400 --> 0:04:04.360 can participate in UM this massive shift that's happening. So UM, 0:04:04.480 --> 0:04:07.640 the price, especially the daily or the weekly price, is 0:04:07.680 --> 0:04:10.600 probably the least important or the least interesting thing in 0:04:10.600 --> 0:04:14.080 my opinion, but let's talk about it anyway. So big 0:04:14.120 --> 0:04:17.159 news was last week when we were UM, when we 0:04:17.160 --> 0:04:20.440 were together hopefully you're together with me, that that bit 0:04:20.480 --> 0:04:23.640 point was blasting through it's its previous all time high 0:04:23.800 --> 0:04:27.960 and had got almost up to seventy thousand U S dollars. 0:04:27.960 --> 0:04:30.560 We got just over sixty d U s dollars, which 0:04:30.560 --> 0:04:35.080 was pretty amazing. UM. And then it crashed, Oh my gosh, 0:04:35.080 --> 0:04:41.200 it crashed all the way down, um, a devastating from 0:04:41.240 --> 0:04:44.200 its high and it got all the way back down 0:04:44.200 --> 0:04:49.599 to prices not seen for about ten days before. And 0:04:49.680 --> 0:04:52.840 I say that sarcastically because, uh, you wouldn't know by 0:04:52.839 --> 0:04:56.159 the news headlines that come out, UM talking about the 0:04:56.200 --> 0:05:00.320 price and how the price is crashing down and uh, 0:05:00.360 --> 0:05:02.800 you know, panic is in the streets and maybe you 0:05:02.839 --> 0:05:05.400 should sell in all these things, and so I use 0:05:05.440 --> 0:05:08.080 a little bit of sarcasm just to just to kind 0:05:08.080 --> 0:05:11.839 of illustrate how ridiculous that is. Uh. Yeah, we hadn't 0:05:11.839 --> 0:05:16.120 seen this price until October was the last time we said, 0:05:16.120 --> 0:05:18.120 oh I'm sorry about ten days. So we haven't seen 0:05:18.120 --> 0:05:19.800 this price for about ten days. It crashed all the 0:05:19.800 --> 0:05:21.839 way back down. But UM, to give you a little 0:05:21.839 --> 0:05:23.520 bit of perspective, if you're just tuning in and you're 0:05:23.520 --> 0:05:28.040 not really that aware, since October one, we went up 0:05:28.080 --> 0:05:32.440 almost seventy percent, and we're still sitting even with the crash, 0:05:33.000 --> 0:05:37.480 the big crash, we're still sitting up fort in just 0:05:37.560 --> 0:05:41.919 about five weeks now. I don't know if you understand 0:05:42.279 --> 0:05:46.800 what means. But let me give you some perspective. Over 0:05:46.839 --> 0:05:50.279 the last sixty eight years, the stock market, which is 0:05:50.279 --> 0:05:54.040 where the majority of people have their wealth, has averaged 0:05:54.040 --> 0:05:59.960 about a six or eight percent return per year. Six 0:06:00.080 --> 0:06:02.800 or eight percent per year depends on if it's sixty 0:06:02.880 --> 0:06:08.600 or eight years um. And with bitcoin we're up in 0:06:08.680 --> 0:06:11.039 five weeks. So let me just let me just give 0:06:11.080 --> 0:06:13.560 you that perspective real quick, because if you're listening to 0:06:13.600 --> 0:06:17.280 mainstream media, um, they're gonna they're never gonna fill you 0:06:17.320 --> 0:06:19.200 in on the right way. And then to give you 0:06:19.240 --> 0:06:21.960 a little bit more perspective on it, again, the price 0:06:22.040 --> 0:06:26.440 is probably the most uninteresting piece. But since January one, 0:06:26.640 --> 0:06:29.680 again write the stock market those it's eight percent per year, 0:06:30.080 --> 0:06:33.760 we're up a d eighteen percent, So it's pretty amazing 0:06:34.040 --> 0:06:36.200 what it's been doing. But again, like I said, that's 0:06:36.200 --> 0:06:39.200 the least interesting piece. What I'd rather do, let's talk 0:06:39.240 --> 0:06:41.200 about where it could go. And I'm sure a lot 0:06:41.240 --> 0:06:45.520 of you would rather know that as well. Right, Um, 0:06:45.640 --> 0:06:48.680 wouldn't you like to know where the price of bitcoin 0:06:48.760 --> 0:06:51.640 go the valuation of bitcoin could go in the future, 0:06:52.080 --> 0:06:54.400 So as an investor, right, that's what we're looking for. 0:06:54.480 --> 0:06:58.240 They called the they call the stock market a discounting mechanism. 0:06:58.600 --> 0:07:01.400 So that means that I could buy something cheaper today 0:07:01.440 --> 0:07:03.280 that it would be worth in the future. That's what 0:07:03.320 --> 0:07:05.680 we're doing. And if you buy Tesla stock or Facebook 0:07:05.720 --> 0:07:09.920 stock or whatever, you're buying, UM, you're buying that hopefully 0:07:09.960 --> 0:07:12.160 at a price lower than where you think will be 0:07:12.240 --> 0:07:14.040 in the future, so you have some profit. You could 0:07:14.040 --> 0:07:16.680 also be buying it higher than where you think will 0:07:16.720 --> 0:07:18.360 be in the future. In that case you might short it, 0:07:18.440 --> 0:07:20.320 and that's okay as well. But the point is that 0:07:20.360 --> 0:07:23.120 you're you're buying it um, you know, typically at a 0:07:23.120 --> 0:07:24.680 at a discount to where you think you can sell 0:07:24.680 --> 0:07:27.520 it for in the future, and so UM, when you're 0:07:27.520 --> 0:07:29.040 looking at the price, you're really trying to think about 0:07:29.040 --> 0:07:31.600 where and go in the future, which is um seems 0:07:31.760 --> 0:07:35.400 common sense, right, doesn't that seem kind of normal? Which 0:07:35.600 --> 0:07:38.720 it is. But if that's so normal, then why is 0:07:38.760 --> 0:07:41.440 it that everybody always comes in and says, well, bitcoin 0:07:41.520 --> 0:07:46.160 seems really expensive to me, Well, it seems expensive compared 0:07:46.200 --> 0:07:50.160 to what is it expensive compared to where it was 0:07:50.280 --> 0:07:53.520 ten years ago at at a at a penny, or 0:07:53.840 --> 0:07:56.800 expensive to where it was at the beginning of the year, 0:07:58.200 --> 0:07:59.840 or is it expensive compared to where it's going to 0:07:59.880 --> 0:08:03.000 be in the future. Now, remember, right, we're always supposed 0:08:03.000 --> 0:08:05.480 to be trying to buy it cheaper than we think 0:08:05.480 --> 0:08:06.680 it will be in the future, so we should be 0:08:06.680 --> 0:08:08.360 thinking about where the price will be in the future. 0:08:08.720 --> 0:08:10.480 But when people come in and say it's it's it's 0:08:10.480 --> 0:08:13.080 too expensive, they're comparing it to where it was in 0:08:13.120 --> 0:08:16.920 the past, which doesn't make any sense, does it. The 0:08:16.920 --> 0:08:18.880 answer is no, it doesn't make any sense. Of course, 0:08:19.080 --> 0:08:22.080 most people don't really think through this logically, which is 0:08:22.120 --> 0:08:25.360 why I'm here talking in your ear every single week, 0:08:25.480 --> 0:08:27.200 so I can really help you make sense of this. 0:08:27.240 --> 0:08:29.160 I want to change the way that you think about money, 0:08:29.480 --> 0:08:32.640 change the way that you think about bitcoin and cryptocurrencies, 0:08:33.120 --> 0:08:36.959 and so um, hopefully a little thought exercise helped you. Um, 0:08:37.080 --> 0:08:38.599 you're trying to buy it cheaper than it will be 0:08:38.600 --> 0:08:40.640 in the future, so we want to understand where it 0:08:40.679 --> 0:08:43.720 will be, and so I want to tell you. I 0:08:43.760 --> 0:08:45.240 want to tell you where I think it can be 0:08:45.280 --> 0:08:47.120 in the future, and not just me. I mean, who 0:08:47.160 --> 0:08:49.199 am I? I mean? Yeah, I've been studying and talking 0:08:49.240 --> 0:08:51.320 about bitcoin for a long time. But let's look at 0:08:51.360 --> 0:08:53.560 some of the biggest names on Wall Street and see 0:08:53.559 --> 0:08:56.640 where they think it could be. Names like Cathy would 0:08:56.760 --> 0:08:59.439 Maybe you've heard of her. She runs the largest tech 0:08:59.720 --> 0:09:02.920 fun on Wall Street. Yep, see somebody that I would 0:09:02.960 --> 0:09:07.080 listen to, or maybe um from the fund managers that 0:09:07.160 --> 0:09:10.800 were just surveyed from Bank of America. Maybe let's find 0:09:10.800 --> 0:09:13.000 out where they think it would be. So I want 0:09:13.040 --> 0:09:16.240 to bring that information back to you. Where will bitcoin be? 0:09:16.360 --> 0:09:17.800 Can we buy it cheaper today than will be in 0:09:17.800 --> 0:09:20.520 the future. So we'll talk about those things. Of course, 0:09:20.559 --> 0:09:24.439 you're listening to the Mark mass Show. We're talking about bitcoin, cryptocurrencies, 0:09:24.440 --> 0:09:27.280 and the decentralized Revolution. I'll be right back, all right, 0:09:27.360 --> 0:09:29.800 welcome back. You are listening to the Mark ma Show, 0:09:29.840 --> 0:09:33.280 and we are talking about bitcoin. Of course, each and 0:09:33.320 --> 0:09:35.480 every week we're talking about bitcoin, and we're talking about 0:09:35.480 --> 0:09:41.600 the cryptocurrency movement. We're talking about the decentralized revolution. Now 0:09:41.800 --> 0:09:43.640 I know I'm boring you. I'm boring you. If you 0:09:43.679 --> 0:09:45.439 were with me before the break, I was talking about 0:09:45.440 --> 0:09:48.680 bitcoin's price, and I've told you it's probably the least 0:09:48.679 --> 0:09:52.559 interesting thing about it, at least my least favorite thing 0:09:52.559 --> 0:09:55.160 to talk about. But I always call it the bait 0:09:55.200 --> 0:09:57.720 and switch. People come in hoping to make a bunch 0:09:57.720 --> 0:10:00.559 of money. That's the bait, and the switch is they 0:10:00.600 --> 0:10:04.960 realize that this is the tool that will bring us 0:10:05.000 --> 0:10:09.400 back our freedom. This is the tool that will change 0:10:09.480 --> 0:10:12.319 the entire world. This is the tool that will make 0:10:12.360 --> 0:10:17.200 sure our children live in a free and valuable world 0:10:17.600 --> 0:10:23.400 as opposed to not free, a totalitarian world. Bitcoin is 0:10:23.440 --> 0:10:26.400 that tool. It is that different. So, uh, while bitcoin 0:10:26.559 --> 0:10:29.040 price may not be that interesting compared to those subjects 0:10:29.040 --> 0:10:31.880 like saving humanity, we'll finish talking about it because, like 0:10:31.880 --> 0:10:33.760 I said, it is the bait that brings people in 0:10:33.800 --> 0:10:35.719 for the switch. And so before the break, I was 0:10:35.800 --> 0:10:40.040 kind of telling you that, Um, most people understand intuitively 0:10:40.080 --> 0:10:42.199 that you're trying to buy a stock like Tesla or 0:10:42.200 --> 0:10:44.880 Facebook cheaper than where you think will be in the future. 0:10:44.920 --> 0:10:47.760 But most people think that bitcoin is expensive because they 0:10:47.760 --> 0:10:50.920 compared to the past, which doesn't make sense. So where 0:10:51.080 --> 0:10:53.880 do we think bitcoin could be in the future. Well, 0:10:54.080 --> 0:10:56.240 the easy there there's a bunch of ways to get 0:10:56.280 --> 0:10:58.880 to this data, and the easy way is to go 0:10:59.000 --> 0:11:02.560 will what markets is it disrupting? Where will it pull 0:11:02.600 --> 0:11:05.160 its value from? How big are those markets? And do 0:11:05.200 --> 0:11:07.960 we think and get one percent, five percent, ten percent 0:11:08.000 --> 0:11:11.520 of those markets. That'd be an easy way to do that, UM, 0:11:11.559 --> 0:11:12.880 And we can we can walk through some of those 0:11:12.880 --> 0:11:14.960 thought exercises. But I wanted to look at a couple 0:11:15.000 --> 0:11:16.520 of news stories that just came out this week that 0:11:16.559 --> 0:11:21.080 I think you should know. So for example, UM, there 0:11:21.160 --> 0:11:23.600 was a poll that was recently run by Bank of 0:11:23.640 --> 0:11:28.920 America and they pulled their fund managers. These are guys that, UM, 0:11:29.000 --> 0:11:33.439 you know, have educations and degrees and spend their entire 0:11:33.480 --> 0:11:37.280 career studying markets. UM. You know, I don't know if 0:11:37.280 --> 0:11:38.640 I want to say they're smarter than you and I, 0:11:38.720 --> 0:11:40.120 but they definitely put a lot of time into it, 0:11:40.160 --> 0:11:42.840 and collectively when they're surveyed, you know, it's something that 0:11:42.880 --> 0:11:45.079 I would definitely listen to, definitely take a look at. 0:11:45.520 --> 0:11:49.120 And what we saw is that in this poll, one 0:11:49.200 --> 0:11:52.360 fourth of the fund managers expect bitcoin's price to be 0:11:52.480 --> 0:11:57.480 over seventy five thousand dollars in twelve months. In my opinion, 0:11:57.640 --> 0:12:03.040 that's very low, but even still today right now, it's 0:12:03.040 --> 0:12:06.439 about much less than that. It's about fifty eight and 0:12:06.480 --> 0:12:09.640 fifty eight thousand and change. And so shoot, if you 0:12:09.640 --> 0:12:11.600 could buy something for fifty eight and sell it for 0:12:11.640 --> 0:12:15.520 seventy five in the future. That wouldn't be too bad. UM. Again, 0:12:15.600 --> 0:12:18.559 this is what they're saying, not me. And also, by 0:12:18.600 --> 0:12:21.319 the way, this is not financial advice. All we're doing 0:12:21.360 --> 0:12:22.839 is we're just trying to look at the information that's 0:12:22.840 --> 0:12:25.320 in front of us and make the best decision that 0:12:25.400 --> 0:12:27.959 we can with what we have. Now. I'm giving you 0:12:28.000 --> 0:12:29.960 the information, but it's up to you to decide what 0:12:30.000 --> 0:12:32.040 you want to do with that. But you know they're 0:12:32.040 --> 0:12:35.319 saying that they think the price could be over in 0:12:35.320 --> 0:12:38.640 one year. I think we could see it happened much 0:12:38.720 --> 0:12:41.760 sooner than that. UM. But anyway, that's what they're thinking. 0:12:42.720 --> 0:12:45.160 But I think it'd go even bigger. Let's take a 0:12:45.160 --> 0:12:48.760 look at what Cathy would. So Cathy would is UM. 0:12:48.880 --> 0:12:50.880 She's like, like I said before the break, she's the 0:12:50.920 --> 0:12:54.800 head of one of our investment management she's the CEO UM. 0:12:54.800 --> 0:12:59.160 It's one of the largest tech tech funds on Wall Street. UM. 0:12:59.240 --> 0:13:01.120 And she's a man. So I think she leads the 0:13:01.240 --> 0:13:04.320 largest fund on Wall Street as well. And so given 0:13:04.320 --> 0:13:06.920 her position, UM, not only in technology, but also kind 0:13:06.960 --> 0:13:08.400 of being a woman there, I would think, you know, 0:13:08.480 --> 0:13:12.040 she's not somebody who would just be UM. Cavalier and 0:13:12.120 --> 0:13:14.520 just kind of throwing out a bunch of numbers around. Right. 0:13:14.640 --> 0:13:16.680 When she says something, I'm sure she puts a lot 0:13:16.760 --> 0:13:19.000 of thought into what it is. And of course, um, 0:13:19.120 --> 0:13:22.839 she's at the intersection of finance and technology because she 0:13:22.880 --> 0:13:25.600 runs the big tech fund, right, so she's somebody else 0:13:25.600 --> 0:13:27.360 that I would take a listen to. Now, I don't 0:13:27.400 --> 0:13:30.000 take anybody. I don't take one piece of information. I'll 0:13:30.040 --> 0:13:32.840 take one indicator and consider that law. What I'd like 0:13:32.920 --> 0:13:36.280 to do is look at lots of indicators, lots of fundamentals, 0:13:36.280 --> 0:13:38.880 and lots of opinions, and then try to find where 0:13:38.880 --> 0:13:42.160 the consensus is with that. Right, So don't take any 0:13:42.200 --> 0:13:44.079 of this on its own by itself. But when you 0:13:44.120 --> 0:13:46.360 start putting together it, it kind of leads to a 0:13:46.400 --> 0:13:50.640 pretty compelling answer. And so she said in an interview 0:13:51.240 --> 0:13:55.240 UM with Baron's magazine, which is a financial um she 0:13:55.360 --> 0:13:59.520 said that quote, if institutional investors, so these are like 0:13:59.559 --> 0:14:02.440 the hedge runs and stuff like that, if institutional investors 0:14:02.440 --> 0:14:06.160 move into bitcoin and we're to allocate five percent of 0:14:06.240 --> 0:14:11.160 their portfolios to it, then that would bring the value 0:14:11.360 --> 0:14:15.240 the price of bitcoin to around five hundred and sixty 0:14:15.360 --> 0:14:19.440 thousand dollars per coin. So that's about a ten x 0:14:19.720 --> 0:14:24.880 from here, a thousand percent gain. It's pretty big. But 0:14:25.600 --> 0:14:30.280 is that even realistic, Like would institutional investors really allocate 0:14:30.400 --> 0:14:34.440 five percent of their portfolios? Well, let's take a look 0:14:34.440 --> 0:14:37.160 at some of the data. So let's see. Well, we 0:14:37.280 --> 0:14:40.560 have some of the most famous and these maybe aren't 0:14:40.760 --> 0:14:43.640 household names like warm Buffett to you, but for me 0:14:43.840 --> 0:14:45.560 living in the financial world, these are some of the 0:14:45.600 --> 0:14:49.800 biggest names in the space. I'm Stanley druck and Miller, 0:14:50.440 --> 0:14:56.280 um rad Alio, Paul Tutor, Jones, Tim Draper you probably 0:14:56.320 --> 0:14:58.200 you might have heard of a few of those people before, 0:14:59.280 --> 0:15:03.680 Peter Theeal, founder of PayPal, and so um. They all 0:15:03.760 --> 0:15:08.840 have at least that or more allocated to bitcoin. Um 0:15:09.000 --> 0:15:11.040 we have. We've seen that they have already done that. 0:15:11.120 --> 0:15:16.000 These are the leaders. We've seen Fortune five SPI companies 0:15:16.040 --> 0:15:20.640 like micro Strategy moved all of their allocation into bitcoin. 0:15:21.000 --> 0:15:24.760 We've seen other big companies such as uh Square Square 0:15:24.760 --> 0:15:27.680 payment company moved not all of it, but a big 0:15:27.800 --> 0:15:31.320 chunk of their allocation into bitcoins. So it's already happening right, Um, 0:15:31.320 --> 0:15:33.480 It's it's been about a year and in a year 0:15:33.520 --> 0:15:35.760 we've seen lots and lots of them coming over, so 0:15:35.840 --> 0:15:38.560 it's not that big of a stretch to think that 0:15:38.680 --> 0:15:41.480 over the next couple of years we might see the 0:15:41.480 --> 0:15:47.520 big institutional investors moving just a small five percent over um. 0:15:47.560 --> 0:15:50.240 And if that were to happen, as she said, we 0:15:50.280 --> 0:15:52.800 could easily see the price of bitcoin rise ten x 0:15:52.920 --> 0:15:55.800 or a thousand percent from here. Now, let me just 0:15:55.880 --> 0:15:58.360 kind of give you a little idea on risk management 0:15:58.400 --> 0:16:01.840 and the way they think through this. So I would 0:16:01.840 --> 0:16:04.840 never advocate anybody to go all in on anything. You 0:16:04.840 --> 0:16:07.400 don't want to do that. Um, what happens is when 0:16:07.400 --> 0:16:09.760 you make a decision, most people think about how much 0:16:09.800 --> 0:16:12.080 they can make. They think about the positive part, They 0:16:12.080 --> 0:16:14.800 think about the optimism, right, how much can I make? 0:16:14.920 --> 0:16:17.720 And they make their decisions based off of that. Unfortunately, 0:16:17.760 --> 0:16:20.760 that's not how you know, professional investors think about it. 0:16:20.960 --> 0:16:24.040 Professional investors think about the downside. What's the downside? How 0:16:24.160 --> 0:16:26.680 much could I lose? All? Right? So then you always 0:16:26.680 --> 0:16:29.680 want to manage your risk um. Investing is kind of 0:16:29.720 --> 0:16:32.600 like a gladiator. The more you do it, the more 0:16:32.800 --> 0:16:35.760 likely you are to die. And so while you can 0:16:35.760 --> 0:16:38.520 get lucky over and over and over, you can get 0:16:38.560 --> 0:16:40.880 lucky for ten years, and then you make a wrong move, 0:16:41.000 --> 0:16:43.120 a wrong decision, you could lose it all, you could die, 0:16:43.360 --> 0:16:44.960 And so you want to think about risk management, so 0:16:44.960 --> 0:16:46.640 you don't want to go all in if I do. 0:16:46.760 --> 0:16:49.120 If I do make a decision to go in on 0:16:49.120 --> 0:16:52.720 a position, I think about two things. One, Um, if 0:16:52.800 --> 0:16:55.760 I'm wrong, what's the worst that will happen? And two? 0:16:56.280 --> 0:16:59.840 Am I okay with that? That's how I think about it. 0:17:00.240 --> 0:17:02.000 If I'm wrong, what's the worst that happened, I'll lose 0:17:02.000 --> 0:17:03.800 all of my investment? And am I okay with that? 0:17:04.280 --> 0:17:07.800 And so ask yourself that question? And then, um, what 0:17:07.920 --> 0:17:09.800 you also want to think about is how much should 0:17:09.840 --> 0:17:12.359 I allocate to that? So, if you're talking about buying 0:17:12.359 --> 0:17:16.440 bitcoin or cryptocurrencies, how much of your total investable assets 0:17:16.520 --> 0:17:19.440 should you put in? So I say your investable assets 0:17:19.600 --> 0:17:22.640 don't include your house in that, but your investible assets. 0:17:22.720 --> 0:17:24.520 What is your liquid net worth? You know how much 0:17:24.520 --> 0:17:26.040 you have in the bank, how much you having stocks, 0:17:26.080 --> 0:17:29.480 bonds for one case, etcetera that you're currently investing. Total 0:17:29.560 --> 0:17:33.159 all that up, and then as a percentage, not a 0:17:33.200 --> 0:17:36.040 dollar amount, but as a percentage, how much should you 0:17:36.080 --> 0:17:39.119 put into bitcoin or cryptocurrencies? And so that's kind of 0:17:39.119 --> 0:17:42.159 the way you think through this risk management. Now I 0:17:42.200 --> 0:17:44.639 want to tell you the answer, but I'm want to 0:17:44.640 --> 0:17:46.240 say that as soon as they come back from the break. 0:17:46.640 --> 0:17:48.320 By the way, you're listening to the Mark Moas Show, 0:17:48.600 --> 0:17:51.560 and of course we're talking about being a coin obviously, 0:17:51.640 --> 0:17:57.320 cryptocurrencies and this giant decentralized revolution, which is in my opinion, 0:17:57.480 --> 0:18:01.520 the biggest opportunity you'll ever see in your lifetime. So 0:18:01.560 --> 0:18:03.479 I'll be right back. I'm gonna tell you how to 0:18:03.720 --> 0:18:07.000 figure out the percentage of allocation and I'll be right back. 0:18:07.680 --> 0:18:10.120 All right, Welcome back. You are listening to the Mark 0:18:10.200 --> 0:18:12.959 ma Show, and we are talking about bitcoin. We are 0:18:13.000 --> 0:18:16.200 talking about cryptocurrencies, and we are talking about, of course, 0:18:16.280 --> 0:18:19.480 this decentralized revolution. And I've been spending a lot of 0:18:19.480 --> 0:18:21.560 time with you today talking about the bitcoin price, and 0:18:21.680 --> 0:18:23.680 I don't typically do that. As I said, it's probably 0:18:23.720 --> 0:18:26.879 the least interesting thing in my opinion, um, but I 0:18:26.920 --> 0:18:29.600 do want to talk about risk management and that is important. 0:18:29.800 --> 0:18:32.960 And the reason why that's important is because you don't 0:18:33.119 --> 0:18:36.920 want to die. Now that seems obvious, but you don't 0:18:36.920 --> 0:18:38.560 want to die. You don't want to lose all your money, 0:18:38.640 --> 0:18:41.480 and that's kind of what I'm talking about. UM. For 0:18:41.480 --> 0:18:43.639 a lot of you that maybe have been following me 0:18:43.680 --> 0:18:46.040 for a while, you might know my story, and my 0:18:46.119 --> 0:18:49.520 story is something. The short version is that, UM, I 0:18:49.560 --> 0:18:52.520 got started early, early on investing into real estate when 0:18:52.520 --> 0:18:54.720 I was eighteen years old, buying properties, fixing them up, 0:18:54.720 --> 0:18:57.160 and selling them. And I made a lot of money. 0:18:57.840 --> 0:19:00.040 I made a lot of money with real estate. I 0:19:00.080 --> 0:19:02.480 started a couple of different businesses, did really really well 0:19:02.480 --> 0:19:05.000 with businesses. I had Fortune five exit on one of 0:19:05.000 --> 0:19:08.480 my tech companies. UM I put all that into real estate, 0:19:08.520 --> 0:19:10.400 and I sold all my rental properties and put all 0:19:10.440 --> 0:19:12.280 that into real estate, and I was developing real estate 0:19:12.320 --> 0:19:15.080 in southern California, and in two thousand and eight, during 0:19:15.119 --> 0:19:17.640 the Great Financial Crash, it didn't work out too well 0:19:17.680 --> 0:19:20.919 for me. Let's just say that. So I learned the 0:19:20.960 --> 0:19:22.879 hard way that you don't want to put everything in, 0:19:22.960 --> 0:19:24.560 you don't want to be all into one asset at 0:19:24.560 --> 0:19:28.560 one asset class, and so I didn't have proper risk management. 0:19:28.600 --> 0:19:30.600 So that's I guess I'm giving you that lesson today. 0:19:30.640 --> 0:19:32.680 And so UM, as I was saying before the break, 0:19:32.840 --> 0:19:36.560 UM talking specifically about bitcoin and cryptocurrencies, how much should 0:19:36.600 --> 0:19:38.800 you put in? And you want to think about your 0:19:38.880 --> 0:19:42.720 risk management and so UM think about things in terms 0:19:42.760 --> 0:19:46.400 of percentages. So how much what is your total investable 0:19:46.440 --> 0:19:48.240 assets worth? How much money you have in the bank 0:19:48.280 --> 0:19:50.160 and in your four O one K and your stocks 0:19:50.200 --> 0:19:52.800 and all these investments not your home, your homes, non 0:19:52.880 --> 0:19:55.960 investment but investment properties. You could also count that as well, 0:19:56.440 --> 0:19:58.040 UM and add all that up and then and then 0:19:58.080 --> 0:20:00.800 you divide it into percentages. A you divide that up, 0:20:01.200 --> 0:20:03.359 and I would also think about it in terms of 0:20:05.119 --> 0:20:07.239 you have to figure out what that risk is. So 0:20:07.320 --> 0:20:11.800 for example, UM, I just said how um UM. A 0:20:11.880 --> 0:20:14.280 lot of the Bank of America fund managers think that 0:20:14.320 --> 0:20:18.520 bitcoin could be over seventy five dollars next year. UM 0:20:18.680 --> 0:20:21.760 Fidelity uses something called the stock to flow model. They 0:20:21.800 --> 0:20:23.959 think it could be over a hundred and fifty thousand dollars. 0:20:24.240 --> 0:20:26.920 There's dozens of Wall Street veterans. I think it could 0:20:26.920 --> 0:20:29.639 be over a hundred fifty dollars. I'm talking here about 0:20:29.960 --> 0:20:33.120 Cathy Wood, the CEO of our investment management. She says 0:20:33.160 --> 0:20:35.919 it could be UM over five hundred and sixty thousand 0:20:36.000 --> 0:20:40.119 dollars by which is five years from now, so I 0:20:40.800 --> 0:20:42.800