Why the U.S. Could Start Buying Bitcoin Soon | What You Need to Know

Summary

In 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

• 😀 Larry Fink, CEO of BlackRock, has changed his opinion on Bitcoin, now viewing it as a legitimate and potentially valuable asset.
• 🌐 There is speculation that Bitcoin could become a strategic reserve asset for the United States, similar to the Strategic Petroleum Reserve (SPR).
• 📉 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.
• 📈 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.
• 💡 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.
• 🇺🇸 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.
• 💼 BlackRock's influence could encourage other companies to add Bitcoin to their balance sheets, potentially increasing its adoption and value.
• 📊 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.
• 🔒 Gemini, a cryptocurrency exchange and sponsor of the video, is highlighted for its security and transparency, offering new users the opportunity to earn Bitcoin.
• 🚀 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.
• 💡 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

00:00

🌐 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.

05:01

📉 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.

10:03

🚀 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.

Keywords

💡Bitcoin

Bitcoin is a decentralized digital currency that operates on a peer-to-peer network without the need for intermediaries like banks. It is the primary subject of the video, with discussions around its legitimacy, price fluctuations, and potential strategic reserve status. In the script, Bitcoin's price is analyzed, and its future is speculated upon in relation to political and economic factors.

💡Strategic Reserve Asset

A strategic reserve asset refers to a stockpile of resources that a country maintains for use in emergencies to stabilize the market. The video discusses the possibility of Bitcoin being declared a strategic reserve asset by the U.S. government, which would signify its importance as a financial resource. The script uses the example of the Strategic Petroleum Reserves (SPR) to illustrate this concept.

💡Larry Fink

Larry Fink is the CEO of BlackRock, the world's largest asset management firm. His stance on Bitcoin is highlighted in the video as a significant endorsement, indicating a shift in traditional financial institutions' views towards cryptocurrencies. The script quotes Fink's change of opinion from skepticism to belief in Bitcoin's legitimacy and potential role in portfolios.

💡Crypto Space

The term 'crypto space' is used to describe the broader ecosystem of cryptocurrencies and related technologies. The video mentions several developments in this space, including a Bitcoin conference and the potential influence of political figures on the crypto industry. It implies a dynamic and evolving environment for digital currencies.

💡Price Dipped

The phrase 'price dipped' refers to a temporary decrease in the market value of an asset, in this case, Bitcoin. The video script explains two major reasons for Bitcoin's price drop, including selling pressure from Germany's liquidation of confiscated Bitcoins and the return of funds to victims of the Mt. Gox exchange hack.

💡Mt. Gox

Mt. Gox was once the largest Bitcoin exchange that suffered a major security breach in 2014, leading to the loss of a significant amount of Bitcoin. The video script mentions the ongoing process of returning a portion of the lost funds to affected users, which has an impact on the current market due to potential selling pressure.

💡Kathy Wood's Price Prediction

Kathy Wood is the founder, CEO, and CIO of ARK Invest, an investment management firm known for its focus on disruptive innovation. The video references her bullish price prediction for Bitcoin by 2030, suggesting a range from $258,000 to $1.5 million per coin, based on macroeconomic factors and the potential for Bitcoin to become a part of strategic reserve assets.

💡Deregulation

Deregulation refers to the reduction or elimination of government regulations in various sectors, which can encourage innovation and growth. The video suggests that a pro-crypto political environment, such as one potentially led by Donald Trump, could foster deregulation that benefits the crypto industry by removing barriers to its development and adoption.

💡Institutional Investment

Institutional investment involves large-scale investments made by organizations such as banks, insurance companies, and pension funds. The video posits that institutional investors could play a significant role in increasing Bitcoin's price by adding it to their portfolios, which would bring more stability and legitimacy to the cryptocurrency market.

💡Digital Gold

The term 'digital gold' is used to describe Bitcoin's potential to serve as a store of value similar to gold but in a digital form. The video suggests that Bitcoin could challenge the market dominance of gold, especially if it gains favor with institutional investors and wealth managers advising their clients to include Bitcoin in their portfolios.

💡Personal Finance

Personal finance refers to the management of an individual's financial resources, including budgeting, saving, and investing. The video script concludes with the creator's personal stance on Bitcoin, representing a significant portion of his portfolio, and an invitation for viewers to share their strategies. It highlights the personal nature of financial decisions and the varying levels of risk individuals are willing to take.

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

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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