Why Traditional Investments Are Making You Poorer!
Summary
TLDRIn this presentation, Mark Moss explores the shortcomings of traditional investments like stocks, bonds, and real estate, arguing that they are being outpaced by Bitcoin. He discusses the impact of inflation on wealth and presents Bitcoin as a superior store of value with the potential for higher returns. Moss outlines a future where Bitcoin could capture a significant portion of the global store of value market, suggesting strategies for investors to consider. He also emphasizes the importance of adapting to new financial technologies to build and preserve wealth in the 21st-century economy.
Takeaways
- 🌐 The traditional wealth systems like stocks, bonds, and real estate are losing value due to inflation and are not keeping pace with the new economy.
- 💡 Bitcoin is presented as a superior store of value compared to traditional investments, offering a hedge against wealth drain.
- 📈 The future price projections for Bitcoin are optimistic, with the potential for significant wealth multiplication if it captures a portion of the global store of value assets.
- 🚀 Bitcoin's potential is tied to the emerging technology wave, including AI and decentralization, positioning it as a key asset in the new economy.
- 💼 The speaker, Mark Moss, emphasizes the importance of being open-minded to new financial systems and the need to adapt to technological changes for wealth protection and growth.
- 🏦 The current financial system is criticized for its complexity and for being outdated, with the suggestion that it is not serving the needs of the modern, digital age.
- 💰 A key strategy proposed is to structure a portfolio with specific allocations to Bitcoin to position oneself for long-term success in the new economy.
- 🏘️ Real estate is suggested as a tool for tax efficiency and cash flow, rather than as a primary store of value in the new financial landscape.
- 📊 The speaker discusses the concept of 'hurdle rate', indicating that most traditional investments fail to beat the real rate of inflation when considering monetary debasement.
- ⏳ The presentation highlights that we are in the early stages of a new 50-year technology cycle, where Bitcoin and associated technologies are set to play a pivotal role.
Q & A
What is the main argument presented by Mark Moss in the video?
-Mark Moss argues that traditional investments like stocks, bonds, and real estate are becoming outdated and are not keeping pace with the new economy, which is driven by technology like Bitcoin. He suggests that these old systems are quietly draining wealth and that Bitcoin offers a better store of value and potential for wealth multiplication.
Why does Mark Moss believe the economy is being crippled?
-Mark Moss believes the economy is being crippled because it is using outdated financial systems and assets that do not align with the rapid technological advancements of the 21st century. This mismatch causes inefficiencies and a drain on wealth.
What is the significance of the story about Albert Einstein and the test in the context of the video?
-The story about Albert Einstein and the test is used to illustrate the importance of being adaptable and willing to change one's mind when new information becomes available. It emphasizes the need to update our understanding and strategies, especially in investing, to align with the changing economic landscape.
What does Mark Moss suggest is the role of Bitcoin in the new economy?
-Mark Moss suggests that Bitcoin is not just a better store of value compared to traditional assets, but it is also a catalyst for the new economy. He sees Bitcoin as a key technology that can help in wealth multiplication and is part of the cluster of innovations driving the next 50-year economic cycle.
How does Mark Moss define the 'new economy blueprint'?
-The 'new economy blueprint' as defined by Mark Moss involves utilizing Bitcoin technology and other innovative financial tools to build lasting wealth. It is about moving away from traditional investment vehicles that are no longer relevant in the 21st-century digital age.
What is the 'Quantum Leap Forward' mentioned in the video, and how does it relate to Bitcoin?
-The 'Quantum Leap Forward' refers to a significant technological advancement that occurs approximately every 50 years, which changes the course of humanity. Mark Moss relates Bitcoin to this concept, suggesting that it is part of the current leap, driving the new wave of economic change alongside AI and decentralization.
Why does Mark Moss consider Bitcoin a better store of value than traditional assets?
-Mark Moss considers Bitcoin a better store of value because it is decentralized, immutable, and has a capped supply, which makes it resistant to inflation. In contrast, traditional assets like stocks, bonds, and real estate are subject to inflation, taxes, and require maintenance, which can erode their value over time.
What is the 'hurdle rate' in investing, as discussed by Mark Moss?
-The 'hurdle rate' in investing is the minimum return an investment must generate to cover the cost of the capital invested plus a risk premium. Mark Moss argues that the real hurdle rate is higher than what is traditionally considered (like CPI), and it should account for real inflation and other economic factors.
How does Mark Moss propose to structure a portfolio for long-term success in the new economy?
-Mark Moss proposes structuring a portfolio by allocating a portion to Bitcoin as a store of value, optimizing real estate for tax efficiency and cash flow, and investing the remainder in assets that are part of the new economy, such as those driven by AI and decentralization.
What is the significance of the 21 million cap on Bitcoin, as mentioned in the video?
-The 21 million cap on Bitcoin signifies its scarcity and fixed supply, which is a key attribute that makes it an attractive store of value. This limit ensures that there will never be more than 21 million Bitcoins, making it a deflationary asset in contrast to traditional currencies that can be printed indefinitely.
Outlines
💡 Introduction to the Changing Financial Landscape
The speaker, Mark Moss, introduces the topic of the video, which is about the shift in wealth systems and the rise of Bitcoin as a better store of value compared to traditional investments like stocks, bonds, and real estate. He discusses how these old systems are no longer viable and are, in fact, draining wealth. The presentation is based on a recent live event where attendees paid thousands of dollars for the insights, but the video offers this knowledge for free. Mark also mentions his background as a financial educator, investor coach, and his involvement with a Bitcoin-focused VC hedge fund.
🌐 The New Economy and the Shift from Old Paradigms
Mark discusses the transition into the 21st-century economy, which is characterized by rapid technological advancements like AI and the ability for individuals to operate businesses with minimal resources. However, he points out that this new economy is being hindered by reliance on old economic models and financial systems. He uses the analogy of Albert Einstein giving the same test year after year but with changing answers to illustrate the need to adapt to new information and paradigms. The talk emphasizes the importance of being open-minded to new economic systems and technologies, such as Bitcoin, which offer potential for wealth multiplication and long-term success.
📚 The Historical Context of Financial Systems
This section delves into the historical context of financial systems, highlighting how the current economic structure is built on 19th-century technology. Mark discusses the Industrial Revolution and how it centralized work, leading to the creation of factories and mass production. He contrasts this with the present, where technology has decentralized work, allowing for individual entrepreneurship and the rise of the information age. The speaker argues that while technology has advanced, financial assets like the ledger system, stocks, and real estate are still based on outdated models, creating a disconnect between technological progress and financial practices.
💸 The Inherent Issues with Traditional Financial Assets
Mark explores the problems with traditional financial assets, such as the inflating nature of currencies like the Argentine peso and the US dollar, leading to a loss of purchasing power. He expands on the concept by discussing the challenges with other assets like US treasuries, stocks, and physical assets like real estate and gold. The speaker points out that these assets are subject to inflation, taxes, and the law of entropy, which causes them to degrade over time. He emphasizes that these issues make traditional assets less effective for storing wealth in the long term.
🚀 Bitcoin as a Revolutionary Store of Value
The speaker argues that Bitcoin represents a new form of capital that is immaterial, immortal, and immutable, offering a stark contrast to traditional assets. He discusses the global assets landscape, highlighting Bitcoin's small but significant presence. Mark explains the concept of 'money goes where it's treated best,' suggesting that Bitcoin's characteristics make it an attractive store of value. He also touches on the idea that the financial system has become overly complex, which is a barrier to understanding and adapting to new economic models.
🌟 The Potential of Bitcoin in the New Economy
Mark discusses the potential for Bitcoin to capture a significant portion of the global store of value assets, suggesting that even a small percentage could lead to substantial growth in Bitcoin's value. He presents scenarios where Bitcoin could reach $3 million to $13 million per coin within 21 years, based on its adoption and the current rate of monetary expansion. The speaker emphasizes the importance of viewing Bitcoin not just as an asset but as a catalyst for a new economy, one that is better suited to the technological advancements of the 21st century.
💼 Strategies for Building Wealth in the New Economy
In the final section, Mark offers advice on how to build and preserve wealth in the new economy. He suggests creating wealth through business, optimizing real estate for tax efficiency and cash flow, and using Bitcoin as a store of value. He also touches on the potential of investing in the cluster of technologies that are driving the new economy, such as AI and decentralization. The speaker concludes by offering a free ebook for further reading and encourages viewers to adopt a forward-thinking approach to wealth management.
Mindmap
Keywords
💡Bitcoin
💡Wealth Systems
💡Traditional Investments
💡Economy
💡Inflation
💡Store of Value
💡Portfolio Allocation
💡Quantum Leap Forward
💡Dematerializing Assets
💡Hurdle Rate
💡Diversification
Highlights
The traditional investments like stocks, bonds, and real estate are quietly draining wealth due to their outdated nature.
Bitcoin is presented as a superior store of value and a tool for wealth multiplication compared to traditional investments.
The future price projections for Bitcoin are discussed, emphasizing its potential for long-term success.
A strategy for structuring a portfolio with specific allocations for the new economy is introduced.
The importance of being open-minded to new economic systems and the futility of using old answers for new problems are highlighted.
The story of Albert Einstein and the changing answers serves as a metaphor for adapting to new economic realities.
The 21st-century economy is characterized by rapid technological advancements, challenging old economic structures.
The concept of a Quantum Leap Forward in technology every 50 years is introduced, with Bitcoin being part of the current wave.
The Industrial Age economy is contrasted with the Information Age, emphasizing the need to adapt financial tools.
The limitations of traditional financial assets like the Ledger system and the stock market, created in the 1500s and 1600s, are discussed.
The global assets distribution is analyzed, with Bitcoin shown as a tiny but potentially disruptive part of the financial ecosystem.
The dilution of value in various assets like the Argentine peso, US dollar, and US treasuries due to inflation is explained.
The concept of hurdle rate in investing is introduced, challenging the common belief that low-risk assets like US treasuries are safe.
The performance of Bitcoin versus other asset classes over the last 14 years is highlighted, showing its superior returns.
A thought exercise is presented to estimate Bitcoin's potential value based on its adoption rate in the global store of value assets.
The diffusion of innovation model is applied to Bitcoin, suggesting that the bulk of returns may still be ahead.
The potential for Bitcoin to disrupt and lead a new wave of technological innovation, alongside AI and decentralization, is discussed.
A new economy blueprint is proposed, focusing on creating wealth through business, optimizing with real estate, and multiplying savings with Bitcoin.
The talk concludes with a call to action for investors to rethink their strategies and embrace Bitcoin as a primary store of value.
Transcripts
the truth about Bitcoin and why old
wealth systems are dying fast now today
we're going to dive into the cold hard
facts about why the traditional
Investments that most people rely on
like you know stocks bonds real estate
why they're quietly draining your wealth
and why this is crippling the economy
and more importantly what you can do
about it now this is from a live
presentation that I just recently gave
to thousands of people at a business and
investing conference called Limitless
now these attendees they paid thousands
of dollars to be there but you're going
to get this presentation for free so
join me as I'm going to break down how
much money you're likely losing every
year by sticking to these outdated
systems why this is crippling the
economy and our wealth accumulation why
Bitcoin is not just a better store of
value but it's a way to multiply your
wealth faster than any traditional
investment and we're going to break down
the future price projections for Bitcoin
and even more importantly I'm going to
show you how you can structure a
portfolio with specific allocations to
position yourself for long-term success
in the new economy now by the end of
this video you're going to have the
knowledge you're going have the strategy
you need to protect and grow your wealth
and potentially set yourself up for
lifechanging gains now real quick if
you're new to the channel my name is
Mark Moss I've been making Financial
education for about seven years I'm
coaching investors I run a Bitcoin
focused VC hedge fund also I do want to
say that this video was inspired by
Michael sailor's presentation at this
year's Bitcoin conference in Nashville I
was also a speaker at the event I
presented on the main stage right before
Donald Trump was on and I've used some
of the slides from Sailor presentation
now if you want to watch his whole talk
which I recommend I'm going to put a
link to it in the description down below
but otherwise let's just jump right into
it thank you for that thank you for that
my new best
friend all right so before we get into
the meat of this here let's just break
down a couple things so let me tell you
a story anybody ever heard of Albert
Einstein a few of you like one of the
smartest guys that ever lived right so a
lot of you maybe remember him from being
like an ventor discovering things but he
was actually a university Professor back
when universities kind of were useful
and helped people so he was this
University professor and of course as a
professor he had an assistant and every
year he would give out this test to his
students but what happened is each year
he gave out the same test like the exact
same test with the exact same
questions this is Einstein I mean he
super smart but his assistant's
like does he know what he's doing cuz
like these are the same questions that
were on the test last year so sheepishly
the assistant goes up to Einstein and
tugs at him and says hey you know I know
you're super smart and I'm not so I I
hate to say this but do you realize that
you gave out the exact same test that
you gave out last year and Einstein
replies yeah of
course to which the assistant was
puzzled and says but what do you mean of
course like don't you think that the
students from last year have the answers
and they're going to give them to these
students and then they're they're going
to have all the answers and Einstein's
yeah he says yeah but the answers have
changed and what that means is that we
make the best decisions that we can with
the information that we have at that
time but when new information comes we
have to be willing to change our mind
and things that we think were a certain
way can become something different but
when we're stuck in this old Paradigm
constantly using old answers and old
questions to Define our future we lose
sight of the opportunities I have right
in front of us and so when we think
about the way the economy works and the
way the markets work and the way money
works and all of these things that is
true and that is factual and that's how
it works or it worked in the past but it
doesn't mean that it's always going to
be that way in the future so I tell you
that story only to hopefully open up
your mind a little
bit it's very difficult to be in an
existing
system and try to imagine a new system
at the same time but if you want to have
success in the world we have to put
ourselves in that in that set mindset
because markets at the end of the day
are forward-looking they're betting
mechanisms discounting mechanisms right
we are trying to position ourselves into
an asset that we think will be more
expensive in the future hopefully or if
we're shorting hopefully cheaper in the
future so we're always trying to guess
that and so you need to be open-minded
okay so we're going to talk about that
make sense okay so we're going to talk
about the the new economy blueprint not
the old economy we're going to talk
about the new economy blueprint uh how
we can utilize Bitcoin technology to
build lasting wealth does that sound
good like generational wealth all right
I am at a point in my life where you
know just like you my the things I focus
on have changed my kids are getting
older now so I'm starting to think about
how do I pass down wealth we've recently
set up a trust I set up a family
Constitution and I've set up protective
measures to make sure even my K great
grandkids can't sell stuff it's another
topic but we're talking about building
lasting wealth okay so we are in the
21st century economy things are
happening fast if you haven't noticed we
got Ai and large language models and we
can now have one person businesses that
can do the work of many people no longer
are the days where we need these giant
corporations and these big equipment we
can just now grab a laptop and hop on a
plane to pad Del Carmen and start a
business so we're in the 21st century
economy but the problem is that we're
still held back by old
ideas and so we're trying to build this
future world but with old
tools now it's easy to see the old world
because we're looking backwards on it
it's much harder to imagine the future
but we can see that the old world had
this old economy and this old economy
was built on 19th century
technology as a matter of fact the
entire economy and government structure
that we have today was built for a world
that's no longer here
if you look back to thousands of years
of History you'll see it's always
technology that changes the world it
changes the way that we communicate
changes the way that we
organize and an example of that
technology can be either centralizing or
it can be decentralizing so in the
industrial revolution we all of a sudden
had mechanized machines that could do
the work of 5,000 men no longer do we
need 5,000 men in the field let's bring
all those men and put them into a
factory very centralizing and then as
that mechanized that Industrial
Revolution World continued on then it
wasn't enough to just be in a city you
needed to be in America you had to be in
Chicago or New York then we had mass
production Henry Ford created mass
production with the automobile and then
everybody went into factories and now we
had everybody working on an assembly
line smart and dumb people were evil e
even equal on an assembly line so now we
had the masses working so we had to come
up with a new management structure to
manage the masses but then we had to
come up with a government structure to
manage the mass managers of the mass
production but today we're no longer in
that world I'll break down the world
that we are but to give you an example
in the Industrial Age we had the
technological Revolution so we had the
loom now when the loom came out people
used to make tapestries by hand then the
loom the power loom made it much easier
the leites they hated that you ever
heard of the leites anybody you heard
heard that term the leites were a group
of people that were afraid of the power
loom because the power loom was going to
put a whole bunch of people out of work
oh no what will all these people
do turns out they do higher value tasks
like you know science and medicine
things like that that were important we
had the the original Railroad the steam
engine all of a sudden now this
revolution we could move stuff across
continents we could never do that before
of course we had the automobile but
those were all from the Industrial Age
and the way this works is about every 50
years we have what's called a Quantum
Leap Forward a Quantum wave as I like to
call it maybe you've heard it as a conve
wave a kwave but about every 50 years we
have this big technological leap leap
forward and it's not one technology but
it's a cluster of technologies that
happen at the same time and they do two
very important things for our
conversation today number one they
changed the course of humanity for all
of humanity all of humanity we walked
and now we had automobiles that was
massive it was a big shift and we
couldn't imagine all the things that
would happen by having automobiles like
having self-driving cars that are hooked
to something called the cloud us
something called social media and we
could never imagined that because we
didn't have a
car but we do now we we can see that
we've had about five of these so far and
we are now entering the sixth so if you
want to know where the world going and
you want to invest properly and you want
your money to grow and you want to be
successful and prosperous you have to
understand this map and understand
there's a new economy being built okay
so we're going into the sixth one right
now and we're leaving and this is the
key piece we've left the Industrial Age
if you haven't been aware we're now in
What's called the information age and
the reason why this is important is we
don't need big factories as I said
before now a kid with a laptop or now a
kid with an Instagram account can make
100 Grand a month no problem it's a
different world
and again we are in a new world with new
building blocks with new tools to go
build new things but we're still
operating with the tools of the past
like our assets for example all of our
financial assets the way that we build
wealth the way that we store wealth the
way that we transact wealth is from a
world that's no longer relevant
today what do I mean by that what do I
mean by that we have technology that's
completely revolutionized like I said
autonomous vehicles driving around on
something called a cloud but yet we're
using old assets like The Ledger that
was created in in the
1500s by lucali in Venice Italy and it
was a breakthrough in technology and it
was called The Ledger and double entry
accounting you see up until that point
they use gold for money if I had the
gold everyone knew I had the gold and if
I gave the gold to you everybody knew
you had the gold but the problem gold is
very slow to move around the world very
heavy very clunky I could get robbed I
could lose it in the ocean who know
knows whatever and so we had a better
way how about you give all the gold to
this person and he'll just keep a ledger
and he'll just say oh take it off Mark's
tally and put it on your
tally it seems pretty archaic looking
backwards on it and it should be because
it was created in the 1500s we didn't
have a computer to do this they do this
by hand but yet that's the same thing
we're using today we're still using
Ledger money we're still relying on a
person to keep track of what's in my
account and what's in your account same
thing as we've always done so we've had
all this progress for 600 years we can
have instant transaction time anywhere
in the globe but yet our money system is
still using a system from 1500 ago 1500
okay that seems like a problem what
about other assets well did you guys
know that equities stock the stock
market was created in the 17th
century so most of you well probably not
in this room we have more of a smarter
room business owners real estate
entrepreneurs but the majority of the
world has their paycheck direct
deposited every two weeks and it goes
into an S&P 500
Index going into the same 17th
technology that we had hundreds of years
ago it's no wonder that people that are
invested into the S&P 500 every single
day thinking that one day they'll retire
find themselves unable to retire it's no
wonder that half of the homeless
population today are baby boomers
half cuz they're in investing their
money and using a system from 5 or 600
years ago not realizing that there's
this whole new world unlike Einstein
they don't realize the answers have
changed now let's talk about the new
future and we'll talk about some of
these problems and solutions that we
have this is sort of Representative of
all the global Assets in the world about
$900 trillion it's a big number we get
numbed by these numbers these days I
don't even know what that means anymore
900 trillion that's a big number about
330 trillion in real estate who's
where's my Real Estate
Investors all right most of you guys
good 330 trillion it's the biggest
sector as you can see Bond the bond
market the bond market is sort of the
global asset Market that's where
governments and Nations hold their
wealth and the bond market 300 trillion
real estate's bigger money currencies
dollars Etc about 120 trillion equities
the stock market public markets right
115 trillion cars collectibles a lot of
rich people store their wealth in
collect Fine Art things like that
jewelry about 6 trillion art 18 trillion
gold about 16 trillion any gold bugs out
there I used to be a gold bug now I
consider myself a sound money Advocate
we'll come back to that uh about 16
trillion in gold and there this little
tiny little beast all the way in the top
leftand corner you can barely see it and
that's Bitcoin the little asset that
could one trillion right there when you
compare it to the rest of the world it
is just nothing it's like a speck it's
not even a drop in the ocean
now if we break this down we understand
that we can really separate these Global
assets the store of value into two
different sectors so we can really break
this down between assets that are being
held for utility such as your home such
as the warehouse for your business of
course you need that there's utility
there but then we also there's about 450
trillion in those types of assets for
utility but then we have assets that all
they do is hold
wealth most people I'm sure everybody in
this room is smart enough to know that
you don't hold your life savings in
dollars in the bank you put them into
real estate or stocks or all those
assets that we've seen so about half
about 450 trillion is what we call
long-term capital or S so store value
all right so what we want to talk about
is not the utility of course we're
always going to need a warehouse and
we're always going to need a house of
course we're always going to need those
things but the 450 trillion that's
long-term capital we can put that
wherever we want and what I learned
early on in my investing career that
served me very well is a saying that
money goes where it's treated best so
sure I certainly need my utility like my
home I didn't buy my home as a financial
decision I wanted that house for my kids
I don't care about the price of that
home but for but for long-term storage
of capital I care I care about what I I
want to make sure it's treated best and
treated best might mean where it gets
the best rate of return where it's the
safest where it can't be diluted where I
could move it if I want where it's a uh
you know has tax advantages things like
that will'll break this down but the
problem that we have right now and
you've been up here hopefully probably
bored to death listening to a bunch of
these speakers explaining the inner
spaghetti workings of this financial
system what the heck is all this and
this plumbing and this means that and
what the system has gotten so complex
over time that George gamon is one of
the most knowledgeable people of the
inner workings and the plumbing of the
financial system Maybe he could go toe
totoa zultan posar and there's maybe
half a dozen people in the world that
understand it not even Biden's economic
adviser can tell you how money gets made
do you guys see that
video and the economy today is
struggling because of this we have this
modern economy with revolutionary
technology and H
spaceships I got my wife this new
Navigator it like drives by itself I
have these seat heaters and it massages
me while I'm driving I feel like man
like I kind of made it like I don't know
what kind of we have this we have this
amazing world and this economy but it's
being held back because we have
imperfect money and assets because we're
using a system from 600 years ago you
would think it would catch
up
right again back in the old days things
were slow like I had to get in my wagon
and I had to go three hours to town to
get something but today I push a button
on Amazon I have instant transaction but
the settlement of the transaction still
today takes at least three days to get
money in my account but ultimately that
money could be clawed back six months
from now so there's no final settlement
six
months I could get in a horse and buggy
and drive my gold to New York faster
than that so let's talk about the
financial assets that we use to store
our wealth we're not talking about
utility we're talking about store value
assets so we have different assets that
we might use let's just run through a
few I'm have to probably go a little bit
quick here I don't know how long this
Talk's going to be so in Argentina you
guys are probably aware of what's going
on down there massive amounts of
inflation they've been having triple
digit inflation for a couple of years if
you choose to store your wealth in the
Argentine peso with the rate of
inflation you will lose half of your
money in 3.6
months now when I say half of your money
if I put a 100,000 in Argentine pesos in
three and a half months I'll still have
100,000 Argentina pesos they just buy me
half as much right you follow me on that
okay it's not that I'm losing the pesos
the the the volume the the amount of
currency it's the power the purchas
power of that so in Argentina I'll put
100,000 in Argentina peso in three and a
half months it buys me $50,000 worth of
goods and services that sucks I wouldn't
want that what about the US dollar the
US dollar has been inflating at 7% a
year for the last 100 years since 2019
it's been debasing or inflating at 10%
since 2019 that means if I put $100,000
in into the bank in US dollars in 6 and
a half years it buys me $50,000 worth of
goods and services that's not very good
what about us treasuries that's the
reserve asset of the world it's the
Bedrock of the entire Global Financial
system every country in the world when
you have hundreds of billions of dollars
you put them into us treasuries
but yet again they're inflating at 10%
per year so these governments that are
putting hundreds of billions of dollars
in in now 19 years they've lost half
their wealth 19 years you've lost half
your
wealth that means in 30 years you've
lost it all but it's even worse than
that it's not like on year 30 it's gone
it's being lost all along the way now we
can see this the S&P 500 we can just
direct deposit in the S&P 500 Index and
it looks like nominally on paper the SPX
is at all time highs oh my gosh I'm so
rich but I feel poor and the reason why
is when you adjust it for the monetary
inflation we can see that the S&P 500 is
actually down 22% since the 2000.com
bubble that means that your S&P 500
Index account though it looks like
you've made a lot of money hasn't
actually ever even reclaimed its high
that it was in the year 2000
which is why on paper it looks like you
should be getting rich but it's also why
50% of the homeless population is Baby
Boomers now inflation is just the start
every time that money moves you pay you
pay taxes every time that money moves
you're paying tariffs on stuff that
comes in the country and tolls and
transfers you got to pay for insurance
uh we're going to get the gold don't
worry but you got to pay for storage I
got vat tax excise you name it dividend
taxes inheritance property
taxes everywhere I twist and turn
they're taking money from me now what
about physical assets let's take a look
now physical assets degrade from the
laws of entropy the law of entropy says
that anything left alone will fall apart
basically so it takes effort energy to
force order otherwise like you built a
house you leave it alone for 50 years
the house falls apart uh if you don't
dieet and exercise you get out of shape
right that's the law of entropy so we
can look at Silver now when we look at
physical Metals we have something called
a stock to flow ratio the stock the
existing supply to the flow the new
incoming Supply so gold and silver
they're constantly bringing gold and
silver out of the ground right so the
stock to flow on Silver is 22 which
means it's inflating at a rate of 4.5%
per year 4 and a half% more new supplies
coming to the market every every year
what does that mean that means that
silver has a half life of 22 years that
means if you put $100,000 into silver in
22 years it buy giv you $50,000 worth of
silver gold stock to flow ratio of 62
it's the hardest
asset until Bitcoin just had its happing
last year now bitcoin's harder we'll
come back to that Gold's 1.6 which means
gives you a 40-year half life but what
about my real estate
Mark homes you guys are Real Estate
Investors I don't have to tell you this
you probably know it's about 6% a year
for your property taxes your insurance
your maintenance your repairs your
whatever
6% gives you a half life of about 17
years but Mark you don't understand that
K Shiller index says I'm at all-time
highs yeah we'll come back to that what
about warehouses well again we need
warehouses but about every 40 50 years
they have to be
rebuilt so you start to see when we look
at assets that we would store wealth and
not in utility assets but in store value
assets we don't actually have a whole
lot of good options it seems like no
matter where I put my money it's losing
money faster than I'm making it almost
and it gets worse sorry it's going to
get better do you guys want to get
better okay but we got to get worse
first okay so here's the problem all of
you guys are being lied to by your
government do you know that what they've
done is they've changed the definition
of the word inflation you see up until
the 1950s inflation meant like a balloon
I inflate the volume the volume of air
increases in a balloon inflation used to
be when I increased the money supply the
supply of money but what they did in the
1950s they changed it to CPI Consumer
Price inflation so now supposedly
inflation means the price of goods going
up but I don't know Mark because you
know TVs and electronics have gotten
cheaper but you know healthare has
gotten more expensive there's no Rhyme
or Reason why these different prices are
moving differently we don't we don't
know what the cause of inflation is
that's why they changed it the problem
with that is that most people are using
the CPI adjusted number so you look at
we'll come back to it so the real number
number that we need to beat is not CPI
anybody know what a hurdle rate is any
business owners know what a hurdle rate
is okay hurdle rate is if I borrow money
for my business to buy a new piece of
equipment or bu buy a new building for
my business I have to borrow that money
I'm paying an interest rate I'm paying
6% I have to make more than the 6% to
make that worth it that's the hurdle
rate does that make
sense so the hurdle rate is the cost of
the capital plus you have to attach a
risk premium what if that piece of
equipment doesn't work out what if my
business goes down and I'm stuck with
this building so you have to add the
weighted average cost of capital plus a
risk premium that's the number we have
to beat so in our own investing in our
own life Financial life what's our
hurdle rate well the government want to
tell you it's the CPI about 3% but
that's a lie the real hurdle rate is the
rate of real inflation which is monetary
debasement or monetary expansion so what
we have here is a chart on the right of
the m to money supply and you can see
since July of 2019 it's going up like a
not quite a hockey stick I'm not sure
what that shape is uh it's averaging 19
I'm sorry
10% so we want to attach
10% plus the 3% of cost of goods going
up plus remember we have to add a risk
premium I'm putting 2% it's probably
much higher than that we're in a pretty
risky time right now so let's say it's
15% so what this means is if your
Investments aren't making at least 15%
you're actually losing
money anybody ever seen that number
before what you've been told is you can
park it in us treasuries at 5%
inflation's 3% you have a 2% spread
you're doing
great it's not true sorry to break it to
you but it gets worse now if we look at
real estate everyone's like oh real
estate's in this big bubble it's a
bigger bubble than it was in 2008 it's
ready to crash oh my God go no it's not
it's not in a bubble at all the bubble
is in the denominator the bubble is not
the price of the home the bubble is in
the US Dollars it's priced in so what we
have right here is a chart the red line
is the case Shiller index for the median
us real estate the blue line is the M2
money supply you can see in 2008 there
was a price bubble right you can see
that clearly what does it look like
we're in today does that look like a
bubble home prices are nowhere near
where they were when you adjust it for
the real hurdle rate of the rated to
basement let's look at it from another
way since 1968 anybody know why I go
back to
1968 anybody come on
huh what gold stand the gold standard we
got off the gold standard in 19 in 1971
right so we have to go back previous to
that date so since 1968 us median home
prices are up 2,000%
woohoo except for when I adjust it for
inflation or CPI it's only up
135% that's what the government tells us
but remember that's the wrong number
when I adjust it for the monetary
expansion real inflation home prices are
down
45% I know it's
terrible it's terrible you just can't
win in this game the game is rigged
against you what are we going to do
don't worry we got good news but more
bad news first when we look at all the
financial assets classes in the world
over the last 14
years we got uh Bitcoin at the top
NASDAQ uh S&P we got gold okay the best
performing asset class not individual
stock but best asset class Nvidia has
been a great performing stock but it's
not an asset class on its own it's part
of the NASDAQ now the best performing
asset class has been Bitcoin over the
last 14 years it's averaged about 150%
pretty good the NASDAQ is number two and
it's average
17.4% that beat the hurdle rate so if I
would have owned the NASDAQ I would have
beat the hurdle rate and I would be
looking pretty good the bad news is
every other asset was less than the
hurdle rate every other one gold 2% now
in all fairness Gold's popped over the
last year so this chart should probably
be revised Gold's a little bit higher
than that today um but you can see the
SPX is 12.5% the SPX moves up at the
rate of monetary expansion the SP 500 so
then then you would ask yourself a
question why would I put build a
diversified
portfolio and diversify into a whole
bunch of things that are losing to the
hurdle rate that doesn't seem like
that'd be the smartest decision so
there's two asset classes that have beat
the hurdle rate number one we have
Bitcoin it's the number one asset uh we
I gone back to the start of 2020 here
and I don't want to say that I'm
cherry-picking data I could go back to
when Bitcoin was founded but it was so
explosive in the beginning it sort of
distorts it in my opinion I want to be a
little bit more intellectually honest
with you guys so I've chosen a four-year
period which is a pretty big period if
we go back to the start of 2020 and that
was also when the pandemic happened the
world reset and what we can see is that
Bitcoin is up 900% in four
years now the second best performing
asset is the NASDAQ and it's up 98% in
the same period pretty good it's beating
the rate of monetary expansion but
here's where it gets interesting right
everything is a trade so I price a home
in US dollars I could also price a home
in how many barrels of oil how many
ounces of gold how many Bitcoin how many
tons of rice right I could everything's
a trade so if I compare what is the
NASDAQ priced in Bitcoin
terms it's down
80% so my second best option to store my
wealth the only two that are beat in the
hurdle rate the second best one is
actually down 80% when priced in the
first one so what we know is that
Bitcoin is this new monetary Capital
this new digital capital for the for the
future it's immaterial right we're in a
digital world we've immaterial
everything books music movies they're
all immaterial we don't have those
physical I mean sure there physical but
most of it's digital today right it's
Immortal it can last forever unlike that
warehouse that has to be built in 40
years or my home that needs the required
maintenance it's immutable no one can
change it no one can take it no one can
dilute
it and so now the question that maybe a
lot of you guys are asking that I get
asked all the time is Mark isn't it too
late though I mean you just you just set
it yourself Mark that you didn't go back
to the old data because then it makes
the returns look too crazy so those
returns are crazy there's no way we can
ever expect that in the future right I
should probably go find some dog meme
coin that's going to do more because
there's no way Bitcoin is going to go up
it's too late you just showed me
that let's take a look at that so
compared to
what right now we can see again since
2020 Bitcoin has been averaging since
2020
55% returns every single year in the
same time period the S&P 500's up 133%
NASDAQ gold and the reserve asset of the
world bonds is down
5% so is it too late to put your money
where it's treated best and get the best
return in the world is it too late for
that doesn't appear so but a better
question I would ask is what's it worth
because as George gamon would always say
George and I we're good friends we love
to go back and forth uh as George G
would say is it uh cheap or expensive we
don't know if it's the bottom or the top
so what we ask ourselves is is it cheap
or is it expensive but humans are
compare our brains are comparing
mechanisms if I asked you is this
heavy he heavy compared to what right so
we have to compare it to something so is
it cheap or expensive well compared to
what well is it cheap compared to where
it's going to be in the
future well where is it going to be in
the future Mark let's take a look let's
run through a little thought
exercise Robert I'll keep you awake
don't worry okay here we go so remember
about 450 trillion is in utility assets
so we're going to park that aside let's
look at the 450 trillion of just money
that's just parked just for the sake of
preserving it okay we have 450 trillion
now I showed you all the different types
of assets from currencies to bonds to uh
precious metals to real estate and they
all be they're all diluted every year
right they all have a rate of dilution
inflation maintenance Etc now I showed
you most of those were pretty aggressive
numbers for being conservative I put 3%
I showed you the actual numbers they're
much higher but let's just say we have
$450 trillion of assets that are losing
3% or being diluted by 3% a year that's
$ 13.5 trillion do every single
year it's a big number now the stock
market is trading at about 20 times PE
so if we take the 13 uh shoot typo not
point8 13.5 times 20 PE that gives us
about $270 trillion a year of Enterprise
Value that Bitcoin could be worth
remember it's worth one today it's worth
one one
to 270 seems like a pretty big growth
rate to
me anybody think that their real estate
is going to go by that number what about
the bonds what about the S&P 500
okay now remember Bitcoin is just this
tiny little drop in a big ocean right
here you can't even see
it so the question then becomes so I've
been a venture capital investor for
about a decade I have a VC fund and the
way that we value a venture capital
company is we say what is this company
and what do we think it could be worth
in the future and how do we determine
how much we think it could be worth in
the future well we look at the markets
it's disrupting and we try to calculate
what percentage of that market we think
it could acquire so if I was pitching
you on Uber in Silicon Valley whatever a
dozen years ago I'd say hey I got this
idea for this app you're like okay what
is it well it's cool you can like get a
car and will pick you up and take you
somewhere and you're like you mean like
a taxi yeah yeah it's kind of like a
taxi but it's like a black car and it's
like real seamless it's kind of cool
okay how much is it worth $100 million
what $100
million where the heck did you get that
number well the taxi industry is this
big and the limo industry is this big
and the van share is this big and if I
get 5% from each of those we get 100
million okay so that's the way we'd
approach it from Venture Capital
perspective so let's just take a look at
that so the question that when we would
ask ourselves is if as I'm saying
Bitcoin is a better store of value than
all 900 trillion of these
assets what percentage do we think
Bitcoin could grow against those let's
run through a few scenarios you guys
want to see a few scenarios yeah yeah
all
right there is no guarantees or
certainties in life there's only
probabilities but as investors we better
our money every day that the future we
think will come to pass so let's just
look at a couple of what I I think are
conservative estimates and does anybody
know how many Bitcoin there are and
there will never be more
of 21 million perfect let's go to the
number 21 so in 21 years from now that
year will be
2045 today in 2024 the price of one
Bitcoin is
$65,000
is right now today it is
0.1% of global assets store value assets
not utility assets 1%
the total market cap the market
capitalization is 1.3
trillion if we could get to
2% of the global assets that would push
the price of Bitcoin to $3 million per
coin just getting to three just getting
to
2% that give it a $68 trillion market
cap and that would give us an annual run
rate an ARR you guys know what that
number is of
21% that beats the hurdle rate it's
double the S&P 500 I don't think that's
outrageous I'm not saying it's going to
do 150% like it's done in the past I'm
saying
21% certainly going to outpace the S&P
500 what about a little bit more
aggressive what if it gets to
7% of those
assets that brings it to $280 trillion
or $13 million per Bitcoin within 21
years that' give us a 29% rate of return
and then we could say what if it gets to
20% or 22% $49 million per Bitcoin now
as a venture capital investor this is
what we do every day I think this
company could take 10% of market
share now I think it'll take 100% of
gold I think it'll take 5% of art it'll
take about 15% of real estate we could
break it up but combined maybe a
7% because what we're doing is we're
dematerializing assets do you guys know
that there's pretty much nowhere in the
the world that you could have put gold a
100 years ago and it would still be
there
today the US seized
it all of Europe had Wars now you could
move it how much does that
cost if you're running for a true story
ran numer uh crypto ran his family fled
Iran uh in the 70s and they were being
evaced out and that his family showed up
to the helicopter and his dad had melted
down all their gold and it was in this
barrel and they're getting loaded onto
the plane being evaced out of the
country and they said hey you you can't
take that barrel of gold with you and
they're like but this is our life
savings they said sorry you stay with
your gold or you get on the plane so
they got on the plane fearing for their
lives they they flew to South Africa and
they lived in tense for three years
because you couldn't take a barrel of
gold with you but you could just know
these 12 words in your head and take it
with you anywhere so it's it's a
different Beast now I'm not saying it's
going to replace everything what I'm
saying is Maybe it could just grow a
little bit bigger and um and Gold's
still there 45
trillion which is way bigger than today
what we say it's 16 trillion gold goes
to 45 trillion still great real estate
still there 1,000
trillion but but Bitcoin just grows a
little bit bigger it's not that
unreasonable okay so now let's take a
look at this new economy blueprint I
might have to speed it up because I got
a couple more slides to go okay so the
new economy blueprint now that we know
this now we can start to imagine this
new economy that maybe we could build
with a better asset so remember
technology moves in these 50-year cycles
and we're starting one right here today
now the reason why I go back to this
chart just for a second before I go to
the next one is because you have to
understand these are 50-year cycles and
in each of these 50-year Cycles the only
place you want to invest is in that
cycle so let's just go back to 1908 oil
and automobile production so we had oil
oil fuels we had the automobile and we
had mass production that was created
then 197 1 we had the microprocessor
which led to personal computers Telecom
and the internet and now we have one
today over the last 50 years what have
been the main sectors you'd want to
invest into Telecom internet and
computers what did you want to invest
into before that Ford GM
GE real estate's always there it's a
different topic we'll come back to that
but so we know that the next 50 years
not only will the course of humanity
change because technology but it will
drive the financial markets now the next
question is again is it too late and
what you have to realize is that each of
these 50 years rolls out through a very
predictive or I should say uh
predictable pattern so there's four
stages two main stages and four phases
that this technology is called the
diffusion of innovation and so what
happens is you have the big bang the
eruption the technology comes out the
True Believers are there the
psychopath um and then eventually you
start to get the surge where it starts
bringing more people in then you get the
deployment phase and you get it uh I put
the red arrow to illustrate sort of
where we're at today and the reason why
I do that is because what happens is
everybody thinks I missed the boat it's
too late I was just talking backstage
with somebody and they're asking me
about Bitcoin and da d da and I said
would you believe that I started buying
in 2015 when it's was $300 and I believe
today is a better risk adjusted entry
than it was back
then now it was cheaper back then but
the risk was so high today the risk is
gone but we still have that room in
front of us
but more importantly what we can see is
the second phase is where the bulk of
the Returns come from you can see how
much bigger the second phase is than the
first phase anybody know what a s-curve
is use an S curve to man uh measure
technology adoption so the time it takes
to go from
10% is the same time it takes to go to
90% so if it took 10 years to get to 10%
takes another 10 years to go to 90
that's where the growth comes in the
second phase so not only do we have
higher returns in front of us but we
also have less risk at the same time
anybody like higher returns and less
risk oh yeah sounds pretty good I like
that too all right now I want you to
think of this a little bit different so
we have assets or Commodities so like
oil is a commodity right it's a it's an
asset a
commodity and you could certainly buy
oil a lot of you guys probably do maybe
you put some in your in your portfolio
you're buying Futures against it ETFs
whatever and oil for the last 50 years
has hovered around $60 a barrel plus or
minus yeah it goes 120 drops down to 40
but about 50 60 bucks a barrel for the
most part so oil itself hasn't really
moved a whole lot when you look at it
over a couple decades but there's an oil
industry that just happens to be the
eighth largest industry in the world
valued at almost $5 trillion dollar like
who came up with the new drill bit for
the horizontal drilling and who came up
with the new pressure relief system for
the oil pipelines and who came up with
the new sonar for the oil tankers to go
through the straight there's an oil
industry built around an
asset there's gold an asset a commodity
and there's a gold
industry including little pawn shops on
my corner selling gold there's an
industry around it and when you think
about it like that you start to get your
mind expanded to understand what's going
on here so really it's the cluster of
technologies that we want to talk about
so it's remember it wasn't just the
automobile it was the automobile plus
oil oil Futures fuels plus mass
production that led to the boom and so
right now what we have is Bitcoin and Ai
and the wave of decentralization that
are all coming together so what does
that mean it means that Sam Alman from
uh from uh cat gbt says that we're going
to see 10 person companies with billion
doll valuations and they're taking bets
to see when the first one person billion
dollar company will be now Bitcoin is a
lot of things it's decentralized
immutable permissionless one thing about
Bitcoin that's also interesting it's
also
person
person what that means is that in order
to get a bank account you got to be a
person and you got to have a lot of
documentation but Bitcoin is person less
meaning a machine can have an account
and it can send and receive its own
money and in the rise of AI and autonom
omous vehicles and robots and now online
virtual agents and AI agents that could
have their own wallet and go do economic
transactions on my
behalf none of us are bullish enough on
what that
means we're about to see an explosion
that we've never imagined now we think
about this then we have Bitcoin instead
of oil or gold and then we have a
Bitcoin industry being built on the back
of that so let's talk about Legacy
wealth in the new economy so now that we
know this we've understood a couple
things like for example the real hurdle
rate means most of our assets are
worthless we know that we're in this
21st AE Century but as I showed you
we're using Financial tools from the
1500s for some reason um and we know
that we are trying to use all types of
financial engineering and and all this
whole Wall Street Industries built up
and all these financial advisors trying
to put us in this Diversified portfolio
of
losers so what's the better way well the
better way is to create wealth first you
create wealth by you know solving
problems for people so you typically do
that through a business so number one
create your wealth through a business
you don't invest your way to wealth
Warren Buffett goes to work at a
business every day called birkshire
hathway so number one create your wealth
in your business build a business but
use the new tools remember Sam Alman
said we have the first one person
billion dollar company now you may not
build a billion dollar company but could
you run your business on one tenth of
the staff and make more money could you
easily build up an AI agent and some
llms and spin up a Content business
pretty quickly on your spare time yes
number two optimize use real estate for
tax efficiency and cash flow so I use I
use real estate to get rid of most of my
taxes and then I have more after tax
income and I don't invest it in Bitcoin
I save it there I save it there and then
ultimately I multiply what my savings by
investing into these qwave this Quantum
wave uh Assets Now I'm going to go real
quick here uh I use Bitcoin as my store
of value and that means that everything
in the world is getting more expensive
for all you guys but everything in the
world is getting cheaper for me because
I priced my thing in a different asset
so price of home went down from 664
Bitcoin in 2016 today it's only six
Bitcoin everything's getting cheaper for
me I love this world I can buy more and
more of my
stuff so what do you want to do let's
just say you're a hypothetical investor
of a million dollar in assets you make
about 200 Grand a year you have a 25%
savings rate so you can save about
$50,000 ,000 a year a couple of the
allocation strategies that you could do
would be to put 10% of an allocation
into Bitcoin which might sound like
crazy so try 1% if that's if that's
better 10% allocation to bitcoin and I
take 10% of my e my savings my excess um
earning and I put that into
Bitcoin what would happen if I did that
well over the 21 years that we looked at
earlier if I was making 200 Grand a year
and put 10% of my portfolio in and 10%
of my income every year within seven
years I would have $7 million
if I put more in it goes up and uh we'll
go through the math I don't have a lot
of time so let me summarize all this the
old economy is struggling because we're
building a new economy with new 21st age
tools and going into a world of
automation robots AI technology but
we're still using technology for our
financial system from the 1500s we're
still saving our wealth in technology
and tools that were built in the
1600s technology is always what changes
the world and these technology waves
happen in 50-year Cycles Bitcoin is
outperforming every traditional asset
that's out there the real herder rate is
15% not 3 and a half% like your
government tells you and all we need is
for Bitcoin to capture 7% of these store
of value assets to get this to reality
save in Bitcoin don't invest into it and
if you want to invest only invest into
the cluster now I did say use real
estate for tax efficiency and cash flow
I don't have time to go into that I'm
not against it we use different things
for different purposes but in the in in
the realm of saving preserving wealth
and growing it this is where we want to
be I know I talked really fast if you
want I have a whole free ebook on this
it's completely free you can download it
explains the entire Quantum Leap it
explains all the different assets how
breaks down a predictable Cycles you can
get it for free if you want right there
because I didn't have time to go through
the whole thing and I'm out of time
thanks so much
no we hey we can do better than that was
that good or
what there we
go um Mark are you hanging out are you
hanging out in the in the lobby at all
back here uh this is the one session I
was like man we need like you for three
sessions how many you guys would like
three sessions that would be good uh uh
real quick what's your uh drink of
choice water water hey so tonight at the
VIP party Mark's going to be there so
get him a nice ice or no ice ice ice I'm
not a
psychopath he's not European there we go
I love it uh yeah we appreciate it so
you're going to be the VIP party tonight
I have so many questions I was back
there taking notes and I was like oh man
this is really good so did you guys
enjoy that all right Mark thank you for
being here brother did you like that
that was from a live presentation maybe
a little different than my normal
YouTube videos now if you want to know
more about how this investing black hole
is affecting all your traditional
Investments and you're losing money but
you probably don't realize it then you
might want to watch watch this video
right here otherwise like this video if
you liked it thumbs down if you don't
that's okay at least tell me why in the
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got to your success I'm out
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