Why the U.S. Could Start Buying Bitcoin Soon | What You Need to Know
Summary
TLDRIn this video, the host discusses the evolving legitimacy of Bitcoin, highlighted by Larry Fink's change of heart and BlackRock's potential influence on its adoption. The script covers the possibility of Bitcoin becoming a strategic reserve asset under a hypothetical second term of President Donald Trump, and its implications for the crypto market. It also touches on factors affecting Bitcoin's price, such as Germany's Bitcoin sell-off and the recovery of funds from the Mt. Gox hack. The host speculates on the long-term effects of favorable crypto legislation and institutional investment on Bitcoin's value, while cautioning about the risks of personal investment in the volatile crypto space.
Takeaways
- π Larry Fink, CEO of BlackRock, has changed his opinion on Bitcoin, now viewing it as a legitimate and potentially valuable asset.
- π There is speculation that Bitcoin could become a strategic reserve asset for the United States, similar to the Strategic Petroleum Reserve (SPR).
- π Bitcoin's price has recently dipped, partly due to Germany selling 50,000 Bitcoins from an illegal music sharing website and the market's fear of selling pressure from Mt. Gox's long-lost coins.
- π Despite the dip, Bitcoin's price has recovered due to positive news in the crypto space, including the potential for Bitcoin to be recognized as a strategic reserve asset.
- π‘ The video discusses the potential impact of Bitcoin being declared a strategic reserve asset on its price, suggesting that it might not significantly affect the price in the short term.
- πΊπΈ The market is anticipating a pro-crypto stance from Donald Trump if he is reelected as president, which could influence Bitcoin's status and price.
- πΌ BlackRock's influence could encourage other companies to add Bitcoin to their balance sheets, potentially increasing its adoption and value.
- π Ark Invest's Kathy Wood has made a price prediction for Bitcoin by 2030, suggesting it could range from $258,000 to $1.5 million, depending on various factors.
- π Gemini, a cryptocurrency exchange and sponsor of the video, is highlighted for its security and transparency, offering new users the opportunity to earn Bitcoin.
- π The video suggests that favorable legislation and the removal of regulatory barriers could significantly boost the crypto industry and Bitcoin's price in the long term.
- π‘ The presenter shares a personal perspective on Bitcoin investment, suggesting a balanced approach that includes a portion of one's portfolio in crypto to hedge against potential market changes.
Q & A
What is the significance of Larry Fink's opinion on Bitcoin according to the video?
-Larry Fink, the CEO of BlackRock, is considered influential in the financial world. His recent positive stance on Bitcoin is significant because it could indicate a shift in institutional investment perspectives towards cryptocurrencies, potentially leading to increased mainstream acceptance and investment in Bitcoin.
What is a strategic reserve asset and why is it mentioned in the context of Bitcoin?
-A strategic reserve asset is a stockpile of resources that a country maintains for use in emergencies to stabilize the market. In the video, it's mentioned that there are rumors Bitcoin could become part of the U.S. strategic reserve asset policy, which could potentially legitimize its use as a financial instrument and impact its price and perception in the crypto space.
What is the connection between the Strategic Petroleum Reserves (SPR) and the concept of strategic reserve assets?
-The SPR is an example of a strategic reserve asset, specifically for oil. It serves as an emergency stockpile that the U.S. can use to stabilize the market in times of crisis. The video suggests that Bitcoin could potentially be used in a similar way, as a digital asset reserve for financial stability.
Why did the price of Bitcoin dip recently according to the video?
-The video mentions two main reasons for the recent dip in Bitcoin's price: selling pressure from Germany due to the liquidation of 50,000 Bitcoins from an illegal music sharing website, and the distribution of funds from the Mt. Gox hack, which could lead to further selling by those receiving their share of the recovered assets.
What is the potential impact of Donald Trump's involvement in the Bitcoin Conference on the cryptocurrency's perception?
-Donald Trump's participation in the Bitcoin Conference could influence public perception and potentially policy, given his past statements about cryptocurrencies. If he were to become president again, his pro-crypto stance might lead to policies that favor the adoption and integration of Bitcoin into the financial system.
How does the video suggest that BlackRock's stance on Bitcoin could influence corporate behavior?
-The video suggests that if BlackRock, a leading wealth management company, endorses Bitcoin, it could encourage other corporations to add Bitcoin to their balance sheets, similar to what MicroStrategy and Tesla have done, thus increasing Bitcoin's adoption and potentially its price.
What is the role of Gemini in the video and how are they promoting Bitcoin?
-Gemini is a cryptocurrency exchange and custodian that is sponsoring the video. They are offering new users the opportunity to earn Bitcoin when trading a certain amount within the first 30 days of signing up, which is a form of promotion to attract new users and encourage Bitcoin trading.
What is the potential long-term impact of Donald Trump's pro-crypto policies on Bitcoin's price according to the video?
-The video suggests that if Donald Trump is reelected and implements pro-crypto policies, it could lead to other countries and corporations following suit, potentially increasing the demand for Bitcoin and thus its price in the long term.
How does the video discuss the potential for Bitcoin to be considered 'digital gold'?
-The video discusses the idea that Bitcoin could be seen as 'digital gold', a store of value, especially if wealth management institutions like BlackRock endorse it. This could lead to a shift in investment strategies, with Bitcoin being included in portfolios as a hedge against inflation and economic instability.
What is the significance of the generational wealth transfer mentioned in the video in relation to Bitcoin?
-The video suggests that as younger generations inherit wealth, they may be more open to investing in Bitcoin, especially if advised by wealth managers who recognize its potential as an asset class. This could lead to increased demand and a rise in Bitcoin's price.
How does the video address the potential risks of investing in Bitcoin?
-The video acknowledges the risks of investing in Bitcoin by stating that it represents a portion of the speaker's portfolio, thus diversifying risk. It also advises viewers to be cautious and not to risk more than they can afford to lose, emphasizing the volatile nature of cryptocurrency investments.
Outlines
π Cryptocurrency Legitimacy and Strategic Reserve Speculation
In the first paragraph, the speaker discusses the evolving perception of Bitcoin's legitimacy, citing Larry Fink's change of stance as a significant indicator. The mention of a Bitcoin Conference featuring Donald Trump fuels speculation about Bitcoin potentially becoming a strategic reserve asset, similar to the U.S. Strategic Petroleum Reserves. The speaker also touches on the historical context of the SPR and its current status, hinting at the broader implications of such a designation for Bitcoin.
π Bitcoin's Price Fluctuations and Market Influencers
This paragraph delves into the reasons behind Bitcoin's recent price dip, attributing it to Germany's sale of confiscated Bitcoins and the ongoing impact of the Mt. Gox hack recovery. The speaker also addresses the recovery of Bitcoin's price due to positive news in the crypto space. A sponsorship mention for Gemini, a cryptocurrency exchange, is included, highlighting the platform's features and a promotional offer for new users.
π The Impact of Political and Financial Endorsements on Bitcoin
The third paragraph speculates on the potential impact of Donald Trump's pro-crypto stance and his possible re-election on Bitcoin's future. It also discusses the influence of BlackRock's CEO, Larry Fink, who has recently voiced support for Bitcoin as a legitimate investment. The speaker connects these endorsements to the possibility of Bitcoin being adopted as part of a nation's strategic reserves and its potential to challenge gold as a store of value.
Mindmap
Keywords
π‘Bitcoin
π‘Strategic Reserve Asset
π‘Larry Fink
π‘Crypto Space
π‘Price Dipped
π‘Mt. Gox
π‘Kathy Wood's Price Prediction
π‘Deregulation
π‘Institutional Investment
π‘Digital Gold
π‘Personal Finance
Highlights
Larry Fink, CEO of BlackRock, has changed his stance on Bitcoin, now viewing it as a legitimate investment opportunity.
A Bitcoin Conference featuring Donald Trump as a guest speaker is scheduled to be held in Nashville, Tennessee.
There are speculations that if Donald Trump becomes president again, he might declare Bitcoin as a strategic reserve asset.
A strategic reserve asset is a stockpile of resources that a country can use to stabilize the market in case of an emergency.
The US Strategic Petroleum Reserves (SPR) is an example of a strategic reserve asset, currently the world's largest emergency stockpile of oil.
The SPR was created in response to the 1973 oil embargo by OPEC against the United States.
Bitcoin's price dipped due to Germany selling 50,000 Bitcoins obtained from an illegal music sharing website.
Mount Gox, the world's first crypto exchange, is returning funds to users after a decade-long hack, causing market fear and selling pressure.
Gemini, a US-based cryptocurrency exchange, is sponsoring the video and offering new users $100 in Bitcoin for trading $11,000 in crypto within the first 30 days.
Kathy Wood's price prediction for Bitcoin by 2030 ranges from $258,000 to $1.5 million, considering various macroeconomic factors.
Donald Trump has expressed pro-crypto sentiments, promising to support the crypto industry and prevent the creation of a central bank digital currency.
JD Vance, Trump's pick for vice president, has shown interest in tokens and crypto, indicating a pro-crypto stance.
Larry Fink's change of heart towards Bitcoin could encourage other companies to add Bitcoin to their balance sheets.
The potential for Bitcoin to be seen as 'digital gold' and institutional investment are significant factors in its price increase.
If Trump is reelected and Bitcoin becomes a strategic reserve asset, it could lead to other countries and corporations following suit.
The speaker suggests that deregulation and favorable crypto legislation could significantly impact the growth of the crypto industry.
The speaker maintains a personal portfolio allocation of 20-25% in crypto, balancing potential upside with risk management.
Transcripts
I studied it learned about it and I came
away saying okay you know my opinion 5
years ago was wrong here's my opinion St
this is what I believe in today I
believe the opportunity today I believe
Bitcoin is
legitimate that was Larry thinkink the
CEO of Black Rock which is a pretty big
deal considering Black Rock owns the
entire world no they don't but we'll get
to that in just a minute because there's
been a lot of exciting new developments
in the crypto space since my last video
this week there's going to be a Bitcoin
Conference held in Nashville Tennessee
and Donald Trump is supposed to be one
of the guest speakers so right now the
Internet is just taking a guess that if
the former president Donald Trump
becomes president again he could soon
declare Bitcoin as what's called a
strategic Reserve asset what a strategic
Reserve asset is is a stockpile of
resources for a country to use so that
if it needs to in the case of an
emergency it can use those resources to
stabilize the market it's almost like a
savings account but for an entire
country and one example of how the
United States uses strategic Reserve
assets is something called
the the spr is the Strategic petroleum
reserves which today is the biggest
emergency stockpile of oil in the world
now why it was created is because in
1973 the oil producing countries of the
world or OPEC placed an embargo on the
United States as punishment for
supplying the Israel military with
resources which those countries did not
like and because the US didn't want to
depend on OPEC for its oil in response
to their embargo the US government
created the energy policy and
conservation Act 2 years later in
1975 and that was the birth of the spr
so think of spr as a savings account
denominated in oil now side note the spr
is supposed to hold over 700 million
barrels of oil but today we're down to
366 million which is the lowest level
since the 1980s but that's just one
example of a strategic Reserve asset now
besides oil there's other Commodities
like gold that the United States could
use so it's not just one thing it's a
combination of many things and right now
there's rumors that Bitcoin could become
a part of this strategic Reserve asset
policy on the US balance sheet if that
happens I want to help explain exactly
what it could do to bitcoin's price and
what it means for the crypto space as
well as some of the other super exciting
things that have been happening so let's
get into it hi my name is Andre J hope
you're doing well come for the finance
and stay for the crypto so first let me
cover everyone's favorite topic which of
course is the price because bitcoin's
price dipped all the way down to the 50s
this month and why it happened might
someday be known as one of the biggest
Financial mistakes that a country has
ever made even worse than the Bitcoin
Pizza story because instead of selling s
ing 10,000 Bitcoins for two pizzas
Germany got a hold of 50,000 Bitcoins
from an illegal music sharing website
and then sold it for almost $3 billion
now that's a lot of money but how much
is it for an entire country time will
tell what that money will eventually be
worth but that's one of the reasons why
the price dipped is because of selling
pressure of 50,000 Bitcoins by an entire
country now the second reason why the
price dipped is because of Mount gaau
now if you're not old enough to remember
Mount gox was the world's first official
crypto exchange that's where people used
to buy sell and even hold their coins
unless you were a super Savvy computer
tech nerd you were probably holding all
of your coins on that website but what
people didn't really know at the time is
that Mount goau used to be a forum for
Magic the Gathering the trading card
game so it didn't exactly have the best
security and eventually the exchange was
hacked and the coin were lost to history
or so we thought because after 10 long
years people are finally starting to get
a portion of their money back which of
course today is worth a lot more money
than it was back then the market is just
afraid that a lot of those people could
end up selling their coins which creates
more selling pressure which creates more
fear and the price goes down but those
are the two major reasons why the price
has been all over the place but what's
even crazier is that the price going
down didn't last last that long and the
price recovered because of all the crazy
bullish news that's happening so here's
what's going on first I just want to
quickly say that throughout this video
I'm not asking anyone to buy or invest
in anything my financial journey is for
your transparency it's for your
education and entertainment and that
includes showing you the tools in the
apps that I use to invest with and
that's why I want to quickly take the
moment to thank the sponsor of this
segment of the video Gemini Gemini is a
us-based company out of New York their
regulated by the government they're
available in all 50 US states and 70
countries they're also a full Reserve
cryptocurrency exchange and custodian
they were founded in 2014 and have been
a crypto native since day one and
they're offering new eligible users the
opportunity to earn $100 in Bitcoin when
they trade $11,000 in crypto in the
first 30 days of signing up Gemini also
has tools for new and advanced Traders I
personally use their active Trader to
buy my Bitcoin because I found it's one
of the cheapest options out there and
then I transfer it off the exchange to a
hardware wallet but their team has been
around since the early days of crypto
and they're super focused on the
fundamentals like security and
transparency features like pass Keys
support their industry-leading account
security standards and are important way
to keep their accounts safe you can sign
up and start trading with Gemini today
to earn $100 in Bitcoin with my link
down below but please use common sense
don't risk your life savings crypto can
be risky so please stay safe thank you
Gemini for sponsoring this segment of
the video and now let's get back to it
so here's what's happening let me take
you back to Kathy Wood's price
prediction for Bitcoin by the year 2030
the forecast was our bull case was $1.5
million in 5 years so that would have
been 2027 we still have time Kathy gave
eight big picture macroeconomic reasons
that were very well thought out on why
Bitcoin could be worth anywhere from
258,000 all the way to $1.5 million a
coin by the year 20130 keep that chart
in mind because I'm going to show it to
you again soon what's happening is the
market is predicting that the former
president Donald Trump could become
president again and if he does he could
fulfill one of the categories on that
chart and how we know that look it up
you're going to be very very surprised
just checking if you're still awake now
why the market is actually predicting
all this is because it was reminded that
Donald Trump is a very Pro crypto
candidate because here's what he
actually said about Bitcoin at a couple
of his rallies I will ensure that the
future of crypto and the future of
Bitcoin will be made of the USA not
driven overseas I will support the right
to self- custody to the nation's 50
million crypto holders I say this with
your vote I will keep Elizabeth Warren
and her goons away from your
Bitcoin and I will never allow the
creation of a central bank digital
currency so all that's really good news
for crypto but it's not just Donald
Trump it's also his pick for vice
president JD Vance who even once gave a
talk about tokens and crypto and the SEC
so overall we know that Donald Trump and
his cabinet the people that he'll choose
to run the country are very Pro crypto
that means if he's reelected he could
make Bitcoin a strategic Reserve asset
and here's what that means let's go back
to Kathy Wood's prediction a strategic
Reserve asset would fall under this
category here the nation state treasury
so think of the United States Treasury
buying some Bitcoin for its own reserves
so the market speculating or guessing
that that could happen is what's driving
the price of Bitcoin up this month but
the question is if it does happen how
much would it really affect bitcoin's
price and the answer is probably not
that much in all three of Cathy's
predictions Bitcoin becoming a reserve
asset doesn't have much of an effect on
its price and you can see that the blue
portion of the chart makes up a very
small percentage that's because
realistically even if that happens the
United States is not going to start
adopting Bitcoin as its Main Financial
strategy and YOLO everything so it's not
going to budge the price in any
meaningful way but if Mr Trump is
reelected there could be two other
levels that could have a huge effect on
bitcoin's price those two categories are
digital gold and institutional
investment in all three predictions
these two categories play the biggest
roles in boosting bitcoin's price so now
the question is how exactly L is Mr
Trump going to get Bitcoin to challenge
gold and companies and institutional
investors to start buying up some
Bitcoin and I think the answer is Black
Rock now if you're not sure who they are
they own and control the entire world
just kidding black rock is the biggest
asset wealth management company in the
entire world with over $10 trillion in
assets under management but they don't
actually run the world I mean maybe they
do they might be the Illuminati but I
don't think so they do have a lot of
resources and a lot of influence but
they don't own the stock market any more
than Robin Hood owns the stock market
remember their business model is to
manage money for their wealthy clients
so all that money that black rock has is
mostly their clients money it's weird
that I have to make this distinction but
I feel like it's important in this day
and age now Larry thinkink who's their
CEO was a huge skeptic of Bitcoin for a
really long time and just a couple days
ago in an interview he came out as a big
believer of Bitcoin and here's what he
said I studied it learned about it and I
came away saying okay you know my
opinion 5 years ago was wrong here's my
opinion St this is what I believe in
today I believe the opportunity today I
believe Bitcoin is legitimate that
allows you to have maybe uncorrelated
non-correlated type of returns I believe
it is an instrument that you invest in
when you're more frightened though it is
an instrument When You Believe that Co
countries are debasing their Curren by
excess deficits and some countries are I
believe we have um countries where
you're frightened of your everyday
existence and have an opportunity to
invest in in a a something that is
outside your country's control then you
can have more financial control and so
I'm a a major believer that there is a
role for Bitcoin and in portfolios I
believe you're going to see that as a
as one of the asset classes that we all
look at I look at it as digital gold as
I said before and I believe there's a
great industrial use for it and and I
think a lot of people are missing that
now why all of this matters so much
though is because if companies get a
green light from the most respected
wealth management institution of all
time they could start to add Bitcoin to
their balance sheets just like Michael
sailor did with micro strategy and Elon
Musk did with Tesla at one point and the
same is true for challenge ing the
market dominance or the market cap of
gold which I could see accelerating when
wealth managers start to advise their
younger clients which are starting to
inherit money from the greatest
generational wealth transfer of all time
that they should also have 1% of Bitcoin
in their portfolios instead of or in
addition to their parents gold but now
let me just sort of tie all of this
together please keep in mind that from
this point onward it's just one opinion
it's one random guy on your phone's
opinion but the way I see it happening
is deregulation which is what Donald
Trump is standing for also favorable
crypto legislation and hopefully a new
SEC that does not stand in the way of
building crypto businesses you add all
that up and it's a huge deal now by
themselves all these popular people
talking about Bitcoin doesn't really do
anything for bitcoin's price when
someone famous mentions Bitcoin it only
affects the price in the short term and
that's good for people that like to
trade because volatility can create some
opport OPP unities to make some money
but what really matters is the long term
if Donald Trump manages to get reelected
and if he announces Bitcoin to be the
Strategic Reserve asset even though by
itself I don't think the buying pressure
will have much of an effect on bitcoin's
price what I think it will do is it will
give the confidence for other countries
to follow the United States we could
lead by example and I think Mr Trump
understands that and it's not just other
countries it's other corporations buying
Bitcoin and adding it to their balance
sheet as well and in the long term that
will have compounding effects on
bitcoin's price and maybe this year we
could start seeing some fireworks and
price predictions coming true but I
think that by removing people that stand
in the way of crypto's progress that
allows crypto companies to compete with
the old Financial systems that are so
outdated and that's what I think will
grow the system in the long term now
personally I don't know what I don't
know so crypto and Bitcoin still repres
represents anywhere from 20 to 25% of my
portfolio and that means I'm not going
to make as much money that's the
downside but the upside is if I'm wrong
and a bunch of other people that are way
smarter than me are wrong and this stuff
is worth zero tomorrow then I should be
just fine because I have the other 75%
to work with and I'm okay with that
that's personal finance it's personal to
me but I'd love to hear your strategy
and what you think and as always I hope
you have a wonderful rest of your day
smash the like button subscribe if you
haven't already don't forget to grab
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patreon thank you so much for watching
this video I'd love to see you back here
next week I'll see you soon bye-bye
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