Not investing in bitcoin? Your other options are NOT better!

If you are not investing in Bitcoin right now, your other options are not better. Let’s walk through them because people act like you can just like not invest in anything or that there’s automatic other good options that never go down. The truth is you have to store your wealth somewhere. You have to use something as money and you’ve got to invest whatever you don’t need of your financial resources somewhere. It’s got to be somewhere. It can’t be nowhere. You can’t choose not to do it. Okay. So, let’s walk through your options. First of all, money. Let’s say you don’t want to invest in Bitcoin. You’re just like, I’m going to just save my money. Well, what exact are you going to save? You have 160 160 fiat currencies around the world. Fiat means made up. It means governmentissued currencies that are backed by nothing. There’s 160 of them. The the euro, the yen, the one, the rupee, rubles, you know, bolivarss, pesos, and the dollar. There’s 160 of them. The US dollar is the best worst currency in the world. Meaning they all suck, but the US dollar sucks less than any other major world currency. And the US dollar as of this morning has an inflation rate above 4%. That means on official government statistics, they are telling you that your US dollars lose 4% purchasing power every single year. That’s what they’re telling you. Now, the actual truth is if you buy the things you want instead of the constantly changing basket of things the government says you should want, which always magically include cheap things and then as soon as something gets expensive, they take it out of the basket and put something cheap in its place and suddenly tell you that that’s what you should be wanting and therefore inflation is only 4%. If you actually buy what you want instead of what you the government thinks you ought to want based on inflation, then you’re losing more of like between 6% and 9% of your purchasing power every year. Okay? So that’s so and the other options are worse. The other currencies are all worse than that in various ways. Okay? So the first option, you’re just going to save your money. No, you’re not. You can’t save up enough money to matter when you’re losing 6 to9% of your purchasing power every year because after a couple years of saving up, the inflation that eats away your existing savings is greater than the new amount you can stack on top of it. So, think about this. At 10% inflation, once you’ve been saving up for 10 years, the 11th year of savings is completely like you you add 10% more to your stash and it loses 10% of its value. You’re treading water. You literally cannot save for retirement with a currency. It’s not even possible because again, you’re treading water. And even on that, you know, I hypothetical example of you save up for 10 years, that doesn’t even work because year 1 loses 10% every single year. Year two loses 10% every single year. You like you never even get to the point where your nugget is big enough to really matter with that approach in high inflation currencies. And right now in the entire world, all currencies are high inflation currencies because inflation is a significant problem around the entire world right now. So you’re you’re not going to just save your money. So if you’re not investing in Bitcoin and your alternative is you’re just going to save your money. No, you’re not. That’s a sucky strategy. Every fiat currency sucks. Okay. Now the next option is let’s go to the other end of the spectrum. Precious metals. Let’s talk about gold and silver. Now, hypothetically, if gold and silver had not just gone on an epic run last year, if somebody took Bitcoin away, then and I had no way of investing in Bitcoin whatsoever, I probably would have invested in some gold. Now, the truth is I sold the gold I did have back in December and silver. Mostly it was gold, but a tiny bit of silver and I bought Bitcoin with the proceeds. And the reason I did that is because Bitcoin is radically superior to those assets. And they also had gone on a big run after, you know, basically a decade of uh sideways stagnation. So, Bitcoin or sorry, gold peaked in 2011 and it did not reclaim that peak of something like $1,800 an ounce until 2019. So, basically eight years of going sideways and then it went on a massive run over the last two or three years from whatever it was, you know, 1,800 or 2200 or 24 2600, whatever it was to 4,000. It went up above 5,000 then came back down. So the problem with gold and silver is they’ve already gone on the run that often takes in the case of silver multiple decades in the making and in the case of gold can often take half to a whole decade in the making and they’ve already gone on those runs and come back down. So I don’t want to buy gold and silver right now. Even if you took away Bitcoin, I don’t want to buy gold and silver because you’re buying them after a huge run. All the demand that could be sucked out of the marketplace in you know the pentup demand from multiple years in more than a decade all that pent-up demand uh got saturated in the market last year. So fiat currencies suck. You’re going to lose your lose value. Gold and silver have already gone on a huge run which means unless you want to wait around another decade or two, you missed it. You’re probably going to be grinding sideways for a significant period of time. Plus, again, they’re radically inferior assets to Bitcoin, especially silver. Silver is ridiculous. I I don’t understand people who invest in silver. It’s based almost entirely on a misunderstanding of silver’s monetary properties, which are basically non-existent. So, anyway, but whatever. So, I don’t want, you know, to invest in gold and silver. I don’t want to invest in fiat currencies. So, what about real estate? Well, the problem is most the real estate’s not on sale right now. I mean, AI, more people are working from home. commercial real estate, which is office buildings, are selling at fractions of the prices they used to be. But there’s no guarantee everybody’s going to go back to work in the same traditional way they did before. So, I would never invest in commercial real estate right now, and I would not invest in residential real estate right now. Most housing markets are still overheated. Um, you know, the prices have not adjusted to where they should adjust to given the current interest rates and supply and demand. Um the housing market has been too hot post 2007. Now yeah you can make some money in real estate 200 you know 8 9 10 11 12 I don’t know right after a big crash sure you know may not be a bad thing but right now everybody’s acting like real estate doesn’t go down which is always what happens right before real estate goes down. So there’s nothing in real estate that’s appealing to me. commercial real estate, residential real estate, hospitality real estate. None of that is compelling to me because either it’s too overvalued the way it is or it’s some niche that, you know, I’m not sure is going to be around for the long haul. So, I’m not putting my money in gold or silver, not in fiat currencies, not in real estate. Okay. What about bonds? Bonds are super scary right now because after 40 years of bonds doing a great job in a 6040 portfolio in recent years bonds bs bonds have bombed. Boom m bombed however you spell. Anyway, bonds have bombed. Why have they bombed? Well, because interest rates have uh initially were dropping and dropping and dropping, which means if you had a bond a bond that pays 5% and interest rates were 2%, the bond increased in value. But in a rising interest rate environment, if you buy a bond that pays 5% or 8% or whatever and then suddenly the Fed raises interest rates and all the bonds are paying that and the average going rate is now 10%. Well, now your bond lost a ton of value. So, I would not invest in bonds right now because there’s no guarantee that interest rates are not going to go significantly higher to try to stem uh the tide of inflation. Okay. So, what about stocks? Well, stocks are trading at some of the highest values in human history. Uh there’s something called the forward price earnings ratio. PE ratio price earnings ratio is basically how much you have to pay for each dollar of profits. The PE ratio is based on the past, but the forward PE ratio is based on the anticipated future earnings of the company. So publicly traded companies typically uh talk about a their future earnings. So hey, they earned a billion dollars this year. They think they’re going to earn $ 1.5 billion next year. Well, you can calculate based on the today price of their stock what that ratio is. The this the price today and what a dollar of their stock buys you as compared to a future dollar of profits in the future based on their forecast. And I forget what the PE ratios, the forward pees ratios are, but they’re ridiculously high right now. Just they are the levels you typically see right before a major recession. And and if you look at every point in history that the PE ratios were this high, they typically either had a negative return over the following 10 years or at a minimum did not keep up with inflation, meaning you were losing money even if technically on paper you were slightly gaining with inflation, you were actually in the hole. So, I would not invest in anything stocks right now because again, the whole stock market is in this massive bubble where everybody’s convinced that there’s never going to be recessions anymore, which is never the case. Uh, you know, there’s going to be some sort of a recession. Maybe it’s a recession of massive inflation. Maybe it’s a recession of an actual drop in, you know, prices. But regardless, I don’t want to be in the stock market when the price earnings ratios, the forward PE ratios are ridiculously high. I mean, you’re basically saying, I’m going to buy stocks at the highest average price they’ve ever been and hope for the best, even though history would indicate that that’s a horrible strategy that um you know that the next 10 years is not going to be nice to you. So, once you go through all the asset classes, precious metals, I’m not even going to go into you know pre fine art and uh collectible cars and all that sort of stuff. I first of all, the average person can’t invest in that stuff. And second, all of those have issues with insurance. And what if your classic car rusts and suddenly becomes worth a lot less? You know, collectible baseball cards. No, I’m not going to go into all that. None of that is stuff I want to is want is stuff I want to own or invest in. So, when you go through the major categories, there’s really no good alternative other than Bitcoin. Again, your options are precious metals like gold and silver, real estate, other fiat currencies other than the US dollar, uh stocks, bonds. I mean, none of it’s great. Like, I don’t want to own any of that stuff right now. So, Bitcoin is just this obvious standout asset that’s very early in its adoption cycle that’s practically immune from inflation for all the reasons I’ve covered in numerous other videos in, you know, uh, sorry, is is immune to inflation and is practically immune entirely from competition as well. So you have an asset that’s immune to inflation, practically completely immune to competition, which almost never happens, and yet is still early in its adoption cycle, which again almost never happens. And all of those things are aligning at a time when all of the other investable assets in my opinion have a an ROI, return on investment or a, you know, riskreward profile or, you know, an investment thesis, whatever you want to call it. That to me does not look very good. Like it does not look very good at all. So you combine that together and that’s why I’m 100% Bitcoin. I’m 100% Bitcoin because there’s nothing in precious metals, stocks, bonds, real estate, or fiat currencies. There’s nothing in that that I want to own. So, you can get to Bitcoin one of two ways. You can get to Bitcoin believing that there are a ton of great investable assets in the world that are worth owning today. And Bitcoin is better, which it is. And if that’s what you believe, then great. I believe Bitcoin is better than all of those other great investable assets that you think are great. Even if I don’t think they’re great, you might think they’re great. Or you can get to Bitcoin the way I do by a process of elimination that says every other option sucks and Bitcoin’s amazing. So, it’s not like Bitcoin just sucks less. Bitcoin is actually amazing and everything else sucks. So, it’s sort of the best of both worlds, which is, hey, it’s what I would pick if I was just trying to pick the least worst thing. Then I’d end up with Bitcoin. But it’s also what I would pick if I believed all the assets were amazing and I loved all of them and I just loved Bitcoin more. In this case, it’s a combination of the two. I think Bitcoin’s amazing and I don’t think any of the other assets are things that I want to put my money in right now. So, I’m 100% Bitcoin. That’s how that works. So, would love your feedback on any of that, but that’s why I’m 100% Bitcoin, and that’s why I think it outco competes every other potential thing you could put your money in right now.