Why Bitcoin Could Surpass the Value of Everything
Summary
TLDRThe video script explores Bitcoin's potential as the ultimate hedge against inflation, highlighting its fixed supply and unique properties as superior to traditional assets like real estate and gold. Joe Bernett, a respected voice in the Bitcoin community, argues that Bitcoin's scarcity and divisibility make it the perfect asset, predicting a future where its value could surpass all other forms of wealth. The script also discusses the ethical implications of investing in real estate and the societal benefits of a Bitcoin-centric economy.
Takeaways
- π Global wealth is vastly larger than the current valuation of Bitcoin, suggesting a potential for Bitcoin's value to increase significantly if a larger portion of wealth is transferred into it.
- π‘ Bitcoin's fixed supply and unique properties make it a superior store of value compared to traditional assets like real estate and gold, which can be subject to dilution and counterparty risk.
- π The concept of real estate as an investment may be considered unethical as it can restrict access to housing and is subject to market volatility and potential depreciation.
- π Bitcoin's hyper volatility is attributed to its rapid global adoption and the speculative nature of the market, despite its underlying value as a stable store of value.
- π Bitcoin's monetary propertiesβscarcity, portability, divisibility, durability, and fungibilityβmake it objectively better than other forms of money, according to the script.
- π The predetermined and unchangeable supply schedule of Bitcoin provides a level of predictability that can contribute to its stability over time.
- π Bitcoin's compound annual growth rate has been significant, indicating a massive growth potential, although this has also contributed to its volatility.
- π The script suggests that Bitcoin's value could 'explode' if the global wealth tries to fit into the limited available Bitcoin, highlighting its potential as an investment.
- π‘ Bitcoin is presented as a hedge against inflation and financial instability due to its fixed supply and the inability to create more of it, unlike traditional assets.
- π The script argues that as Bitcoin continues to be adopted, it will redefine the concept of money and capital, and potentially demonetize overleveraged asset classes.
- π± Investing in Bitcoin is portrayed as a long-term strategy that could offer better returns and preserve purchasing power more effectively than traditional investments.
Q & A
What is the current global total wealth and Bitcoin's market value as mentioned in the script?
-The script states that the global total wealth is 900 trillion, and Bitcoin's market value is currently at 1 trillion.
What is the argument made for Bitcoin's potential to significantly increase in value?
-The argument is that with a global total wealth of 900 trillion trying to fit into the small available market for Bitcoin, which is less than 100 billion, this could cause the price of Bitcoin to 'explode,' potentially making it worth more than all other assets combined.
Why are traditional assets like real estate and gold considered 'melting ice cubes' in comparison to Bitcoin?
-Traditional assets are considered 'melting ice cubes' because their value can decrease over time due to inflation or other factors, unlike Bitcoin, which has a fixed supply and does not experience dilution, making it a more reliable store of value.
What is the concept of 'no dilution risk' and 'no counterparty risk' in the context of the perfect asset?
-The perfect asset would have no dilution risk, meaning it cannot be created in excess, and no counterparty risk, meaning its value does not rely on any government, company, or person. Bitcoin is presented as such an asset in the script.
Why is Bitcoin considered to be more volatile currently?
-Bitcoin is considered more volatile because its global adoption is happening very fast, leading to rapid growth and fluctuations in price as more people recognize its value and invest in it.
What are the monetary properties that make Bitcoin a better form of money according to the script?
-Bitcoin's monetary properties include scarcity, portability, durability, divisibility, and fungibility, which make it a superior form of money compared to traditional assets.
What is the significance of Bitcoin's predetermined supply schedule?
-Bitcoin's supply schedule is algorithmic and predetermined, meaning no single group or person can change it. This predictability can potentially reduce volatility and make it easier to price Bitcoin over time.
What is the potential impact of Bitcoin's adoption on the value of real estate and other assets?
-As Bitcoin continues to be adopted, it could cause the value of real estate and other assets to fall in Bitcoin terms, as these assets may not hold their value as well as Bitcoin does.
What is the ethical argument presented against investing in real estate in the script?
-The script suggests that investing in real estate may be unethical because it can harm society's access to housing by driving up prices and treating homes as investment vehicles rather than consumption items for living.
How does the script relate Bitcoin to the concept of the 'Invisible Hand' in free markets?
-The script relates Bitcoin to the 'Invisible Hand' by suggesting that individuals acting in their own self-interest by adopting Bitcoin can lead to a better outcome for the entire world, as it encourages saving over spending and conservation over consumption.
What is the potential long-term impact of Bitcoin on society according to the script?
-The script suggests that Bitcoin could fundamentally shift financial incentives from spending to saving and from consumption to conservation, potentially leading to a world where assets that should not be monetized are demonetized, and wealth is preserved more effectively.
Outlines
π Bitcoin's Potential as an Inflation Hedge
The first paragraph discusses the potential for Bitcoin's value to skyrocket due to its limited supply and the vast amount of global wealth that could potentially be stored in it. It compares Bitcoin to traditional assets like real estate and gold, which can be infinitely produced, and highlights Bitcoin's fixed supply as a key advantage. The speaker, Joe Bernett, argues that Bitcoin's unique properties make it the ultimate hedge against inflation and financial instability, suggesting that it could redefine the concept of money and capital. The paragraph also touches on the ethical implications of investing in real estate and the potential for Bitcoin to offer better long-term returns.
π Bitcoin's Adoption and Market Volatility
The second paragraph delves into the rapid global adoption of Bitcoin and the resulting market volatility. It explains that Bitcoin's hyper volatility stems from its exponential growth over the past 13 years, with a compound annual growth rate of around 130-140%. The speaker suggests that as more people recognize Bitcoin's superiority as a store of value, its adoption will continue to increase, leading to significant price fluctuations. The paragraph also discusses the concept of perfect money, which has no dilution risk and no counterparty risk, and argues that Bitcoin embodies these qualities better than any other asset.
π Safeguarding Bitcoin for Long-Term Savings
The third paragraph emphasizes the importance of securely storing Bitcoin to ensure its value is preserved for future generations. It discusses the use of cold storage and the importance of having a backup plan, such as stamping seed phrases on durable materials like titanium plates. The speaker also mentions the potential societal benefits of transitioning from traditional assets to Bitcoin, including the possibility of a more ethical and efficient allocation of resources. The paragraph concludes with a call to action for individuals to recognize the value of Bitcoin and to consider it as a superior form of money.
π The Shift from Real Estate to Bitcoin
The fourth paragraph explores the idea that assets like real estate and cars, which are traditionally considered valuable, may depreciate over time when compared to Bitcoin. It suggests that as people realize the superior monetary properties of Bitcoin, there will be a shift away from these traditional assets. The speaker argues that Bitcoin's fixed supply and lack of energy loss make it a superior store of value. The paragraph also touches on the concept of the Invisible Hand in free markets, suggesting that individual actions in self-interest can lead to a better outcome for society as a whole.
Mindmap
Keywords
π‘Global total wealth
π‘Bitcoin
π‘Inflation
π‘Fixed supply
π‘Scarcity
π‘Volatility
π‘Monetary properties
π‘Counterparty risk
π‘Dilution risk
π‘Decentralization
π‘Real estate
π‘Hedge
Highlights
Global total wealth is 900 trillion, with Bitcoin currently valued at 1 trillion, suggesting a massive potential for Bitcoin's price increase as wealth seeks a superior store of value.
Less than 100 billion of Bitcoin's 1 trillion valuation is available for sale, indicating a scarcity that could drive up its price as wealth tries to fit into this 'hole'.
Bitcoin's fixed supply and unique properties make it an ultimate hedge against inflation and financial instability, according to Joe Bernett's report.
Investing in real estate may be unethical and harmful to society's access to housing, with Bitcoin offering better long-term returns.
Bitcoin's adoption is growing rapidly, leading to hyper volatility due to its compound annual growth rate of around 130-140%.
The volatility of Bitcoin is a result of its fast global adoption, not a reflection of its intrinsic value as a store of value.
Bitcoin's monetary properties, such as scarcity, portability, durability, divisibility, and fungibility, make it superior to traditional monetary tools.
Bitcoin's predetermined supply schedule, free from manipulation by any single group or person, contributes to its stability and reliability as money.
The comparison between Bitcoin and traditional assets like gold, stocks, and real estate highlights Bitcoin's lack of dilution and counterparty risk.
As Bitcoin continues to be adopted, its price is expected to increase significantly, with potential for massive bull and bear markets.
Bitcoin's fixed supply of 21 million coins, with 94% already mined, suggests a limited supply that could lead to increased value as demand grows.
The current global adoption of Bitcoin is estimated to be less than 1%, indicating a vast potential for growth and price appreciation.
Bitcoin's potential to store a quadrillion dollars without the need for mining more coins sets it apart from assets like real estate and gold.
The concept of money naturally converges to the asset with the best monetary properties, which today is Bitcoin, not gold.
Societies have monetized assets like real estate that should not be, but with Bitcoin, there's a better form of savings and value preservation.
The adoption of Bitcoin as a standard for money will gradually lead to the demonetization of assets like real estate, which are currently overvalued.
Bitcoin fundamentally shifts financial incentives from spending and consumption to saving and conservation, promoting a more sustainable economic model.
The Invisible Hand of free markets and capitalism will naturally lead individuals to adopt Bitcoin, benefiting both themselves and the world economy.
Transcripts
if Global total wealth is 900 trillion
and bitcoin's currently at 1 trillion
and of that 1 trillion probably less
than 100 billion is currently available
for sale then 900 trillion trying to fit
in this 100 billion hole is just going
to absolutely explode the price of
Bitcoin it could become worth more than
everything that we've value today just
because all those other assets were
already inferior stores of value we woke
up tomorrow and said everyone's house is
worth $10 million well there's going to
be a lot of people building houses and
bringing that back down to reality
whereas Bitcoin if we stored a
quadrillion dollars in Bitcoin tomorrow
a lot of people would start mining it
because we still have a block subsidy
and stuff like that but they can't mine
too much more an infinite amount of
wealth can actually fit inside Bitcoin
whereas an infinite amount of wealth
cannot fit in real estate or can't fit
in Gold because if we try to fit an
infinite amount of wealth in these
assets we're just going to go figure out
how to make more of them Joe Bernett is
the senior product marketing manager at
Unchained and respected voice in the
Bitcoin Community today we explore his
latest report your wealth is melting Joe
provides deep insights into why
bitcoin's fixed Supply and unique
properties make it the ultimate hedge
against inflation and financial
instability join us as Joe explains how
Bitcoin can restore a population's
ability to save and redefine the concept
of money and capital he poses the
question that investing in real estate
may actually be unethical and can harm
society's access to housing emphasizing
that Bitcoin will offer better long-term
returns anyway this fact will become
more and more obvious over the next
decade while Bitcoin reprices the world
slowly demonetizing these overleveraged
asset classes like real
estate but before we do that I want to
introduce our sponsors stamp seed the
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intelligence personally use you're
watching 21
Voices if you really think about money
from first principles and you don't come
in with that you know gold only
cognitive bias then you're going to come
to the conclusion that Bitcoin is the
better money the perfect asset would
have these two qualities it would have
no dilution risk and no counterparty
risk right so no dilution risk means we
can't create more of it no matter how
much energy or time is spent trying to
produce it and then no counterparty risk
means it's a bare ass like you can hold
it in your hand it doesn't rely on any
government or company or another person
to be to be valuable and when you look
at Assets in today's world whether
that's real estate stocks bonds gold
they all have one of those two problems
if not both of those problems they can
all can be diluted over time or they all
have counterparty risk and so I think
people see Bitcoin as speculative right
now because it's hyper volatile but the
only reason it's hyper volatile is
because it's
Global adoption is happening so fast
right like over the last 13 years I
think Bitcoin has like 140% or 130%
compound annual growth rate so it's a
pretty massive insane growth and the
volatility comes from the growth right
like it if Bitcoin was going up in a
straight line everyone would start
buying Bitcoin and we would have a
massive bull market and then it would
get way too overextended based on like
how many people that own Bitcoin
actually understand it and then we'd
have a massive be Market which is
exactly what happened right so we if we
had 138% of compound anual growth in you
know perfect exponential line it would
it would bubble up and do exactly what
it does and that's you know exactly what
it's been doing for the last 15 years
and I think that scares people away
because they see that volatility as a
very speculative you know scary thing
but they fail to like actually zoom out
and think on a longer time Horizon take
the four-year approach for each having
Epoch and think about what makes a good
money a good money recognize that it's
not that Bitcoin you know is a medium
exchange today or is a unit account
today or is a store value today that
makes Bitcoin a good money what makes
something a good money is it has
specific monetary properties and like I
mentioned before it's scarce portable
durable divisible fungible if the money
has or if a tool has those monetary
properties it's clearly objectively
better than all the other monetary tools
and and that's not like a speculative
bet that you know Bitcoin is more
portable than gold there's no
speculation that Bitcoin is more scarce
or portable than gold that's just
objective fact and so yes the
speculation is from the volatility which
is from the massive growth that Bitcoin
has had and the objective reality is
just that Bitcoin is a better form of
money because you can look at its
monetary properties the supply schedule
is algorithmic it's predetermined no
single group can change it no single
person can change it if you knew exactly
like what Apple's earnings per share was
going to be for like the next 20 years
you would know like exactly how to price
Apple today and it would probably not be
super volatile know no one knows how to
price Bitcoin because it's just money
and no one no one is thinking about
Bitcoin is money and so the adoption is
happening really fast because more and
more people are coming in and
recognizing it's just Superior for money
better store value as Bitcoin continues
to get adopted then there's just going
to be more and more price increase in
Bitcoin and it's going to go up in these
massive markets and Then followed by
these massive beer markets washing out
the people that don't fully understand
what Bitcoin is I think it's probably
going to keep happening over and over
again until a large majority of the
world actually just throws in the towel
and recognizes like hey Bitcoin is
actually just money we've monetized all
of these things that shouldn't be
monetized and now that Bitcoin exists
because it's perfectly scarce and
because we have all this immense wealth
a lot of that wealth can just go into
Bitcoin and it's probably going to be a
lot more than than people even imagine
because right now we're at like 94% of
all Bitcoin have already been mined I
would say Global adoption of Bitcoin is
like less than 1% we know that Bitcoin
is the best tool for for long-term
savings and and since 94% have already
been mined there's not really a big
reason for the people that hold a lot of
Bitcoin to cash out of Bitcoin and to to
sell something else right like they
could invest their their Bitcoin or they
could consume buy whatever they want to
bribe but like at the end of the day
like if they want to just keep letting
their wealth grow they just keep holding
bit coin so I think all of this wealth
is going to try to fit in this very
small hole that is Bitcoin if Global
total wealth is 900 trillion and
bitcoin's currently at 1 trillion and of
that 1 trillion probably less than 100
billion is currently available for sale
then 900 trillion trying to fit in this
100 billion hole is just going to
absolutely explode the price of Bitcoin
it could become worth more than
everything that we' value today just
because all of those their assets were
already inferior stores of value we woke
up tomorrow and said everyone's house is
worth $10 million well there's going to
be a lot of people building houses and
bringing that back down to reality
whereas Bitcoin if we stored you know a
a quadrillion dollars in Bitcoin
tomorrow a lot of people would start
mining it because we still have a block
subsidy and stuff like that but they
can't mine too much more an infinite
amount of wealth can actually fit inside
Bitcoin whereas an infinite amount of
wealth cannot fit in real estate or it
can't fit in Gold because if we try to
fit an infinite amount of wealth in
these assets we're just going to go
figure out how to make more of them
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kit when I finally got Bitcoin it hit me
like a lightning bolt it was the
currency of the future the only money
that truly mattered but there was a
problem I didn't know anyone else that
thought like me that is until I
discovered the orange pill app suddenly
I was connected with a network of
like-minded Bitcoin enthusiasts right in
my own City the orange pill app is more
than just a social network it's a
community of passionate individuals
determined to change the world one
Satoshi at a time this series is brought
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And subscribe to both our channels for
more videos like this every week thanks
for watching if you hold wealth in gold
or if you hold wealth in real estate
those are all melting ice cubes like
Michael sailor likes to talk about the
US dollar as a melting Ice Cube but it's
really a lot of assets that we hold
today are melting ice cubes they're
melting slower than silver or bronze or
shells but they're all still melting a
little bit and Bitcoin is this one asset
that has no energy loss no matter how
much time or energy that's used to mine
more Bitcoin or create more Bitcoin we
can't make more of it there is no more
melting the Bitcoin Ice Cube there it's
just it's the ice cube that exists and
you can hold this perfectly unmeltable
Ice Cube in Cold Storage when it comes
to holding Bitcoin you want to make sure
that you have this perfectly unmeltable
Ice Cube and you want to make sure that
you're not going to lose it you're not
going to bad things are not going to
happen to it it's not going to get
stolen um and if you have something like
multisig or collaborative custody with
with Unchained you can make sure that
the Bitcoin that you have doesn't get
lost doesn't get stolen and that you
actually do keep your wealth in this you
know one asset that doesn't melt and you
can have it for generations and make
sure that you are able to successfully
pass it on to your kids your grandkids
or or whoever or use it to you know
spend a portion of it on whatever you
want you know 20 years or 10 years or 50
years or 100 years down the line I
mentioned before how money turns to one
most sailable good and it's the one with
the best monetary properties eventually
the entire world will be there but for
now an individual is who makes the
decision for for you for me for anybody
and you decide if you want to be on a
Bitcoin standard and just because other
people aren't deciding to be on a
Bitcoin standard doesn't mean that
Bitcoin isn't already better money you
know we can see that today right like if
you are using Bitcoin as your form of
money and you're using it as a unit of
account and you know store value then
you can already see what's happening on
a Bitcoin standard you can see the
prices of Real Estate falling you can
see the prices of strawberries falling
it's already occurring it's probably
going to be occurring faster as more
people recognize that it's already
occurring and adopt Bitcoin as their
money too but I think it's just going to
be a process gradual process that over
time they're just going to start using
Bitcoin as their unit of account too
part of what's going to wake people up
or help them accelerate the process of
moving to using Bitcoin as money is
helping people realize that that hey
your house that you bought for half a
million dollar a couple years ago it it
may be worth $700,000 today but it
didn't actually go up in value in
Bitcoin terms you might have bought your
house for 30 Bitcoin and now it's worth
7even Bitcoin so your house is actually
falling in value because it's an it's a
consumption item it's not an investment
maybe you should think about hey I don't
want my M wealth to continue melting
away so if I'm going to save wealth for
the future I need to do that in the best
monetary tool possible and if I do
speculate and have investments in apple
or Nvidia or real estate I need to make
sure that those Investments have been
and will be good Investments and if you
know apple or the S&P 500 or real estate
is falling in Bitcoin terms then I need
to wake up and recognize that and cash
out into the better form of money that
will actually preserve purchasing power
better I think the world will be a lot
better of a place because of this a lot
of people hoard real estate today like
someone might have a portfolio of a
hundred single family homes and then
they rent it out to people all over the
world well I think what would be good is
if they recognize that they can get a
better risk adjusted return by just
buying and holding Bitcoin they sell
their portfolio of a 100 single family
homes back to people that actually just
want the homes to live in to have a
family or whatnot the investor gets a
better deal because they're going to
have a higher risk adjusted return and
then people that are using homes for
what they're intended to be used for as
consumption items to live in uh they get
a cheaper home because investors
actually start selling their homes real
estate is actually kind of a Ponzi
scheme or a bubble right like you're
buying something that's like super
overvalued and you're just hoping that
it keeps going up because other people
are going to have to buy it from you at
a higher price or the market you know
the market price of it is going to go up
over time for whatever reason because
people other people happen to be
hoarding it but now that Bitcoin
actually exists there's a better way and
since money turns to one there's no
point in holding the second best money
you should actually cash out of your
real estate as soon as possible and uh
yeah I think the world would be like a
much better place if that actually does
happen I think it will I think it's
happening right now and yeah that's like
the whole concept of Adam Smith's
Invisible Hand of of free markets and
capitalism where when there are the
right tools at disposal you as an
individual acting in your own self- is
actually going to be the most beneficial
for the entire world rather than trying
to Cally plan the money or centrally
plan a government or centrally plan an
economic system around you know one
person's perfect idea of the world you
just let people act in their own
self-interest and because of this idea
of the Invisible Hand in free markets
that actually benefits everybody uh in
in a really big way in the long run it's
going to be great for to demonetize real
estate it's going to be great to
demonetize a lot of assets that
shouldn't really be monetized Bitcoin
fundamentally shifts its Financial
incentives from spending to saving from
consumption to conservation Joe explains
how the perfect asset is one that
fulfills the most monetary properties
historically this has been gold but
today it's objectively Bitcoin he
reminds us that societies tend to
converge on a single form of money and
without a proper savings vehicle we've
monetized assets that shouldn't be
monetized imagine if a house depreciated
like a car another consumption item as a
car ages it loses value due to wear and
tear with only special models
maintaining their worth although not all
houses depreciate at the same rate both
cars and houses are likely to naturally
depreciate over time against Bitcoin
highlighting the superiority of Bitcoin
as a store of
value stay tuned and remember to
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and films about all things Bitcoin this
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