WEBVTT 00:00:06.029 --> 00:00:08.669 Welcome to the Bitcoin Street Journal, Bitcoin 00:00:08.669 --> 00:00:11.349 Market Update. In this episode, we bring you 00:00:11.349 --> 00:00:14.810 the latest live market updates, technical analysis, 00:00:15.210 --> 00:00:18.089 and breaking news on Bitcoin. If you want to 00:00:18.089 --> 00:00:19.750 stay ahead of the game before the government 00:00:19.750 --> 00:00:22.390 and central banks intervene, make sure to subscribe 00:00:22.390 --> 00:00:24.949 to our podcast for daily updates on Bitcoin news 00:00:24.949 --> 00:00:28.030 and trends. In today's episode, we'll cover the 00:00:28.030 --> 00:00:30.570 misconceptions surrounding Bitcoin, how it solves 00:00:30.570 --> 00:00:32.450 the problem of government control over money 00:00:32.450 --> 00:00:35.570 supply, its decentralized and liquid nature, 00:00:35.759 --> 00:00:38.460 its legitimacy and parallels to early Internet 00:00:38.460 --> 00:00:41.659 investing, and the growing importance for financial 00:00:41.659 --> 00:00:44.100 advisors to understand the potential risks and 00:00:44.100 --> 00:00:56.200 benefits of Bitcoin. Bitcoin. The mere mention 00:00:56.200 --> 00:00:58.060 of it could probably summon up worrisome thoughts 00:00:58.060 --> 00:01:00.380 about it being a Ponzi scheme, a speculative 00:01:00.380 --> 00:01:03.820 bubble, or even a tool for criminals. Many people, 00:01:04.099 --> 00:01:06.200 including Warren Buffett and Jamie Dimon, have 00:01:06.200 --> 00:01:08.879 been vocal in their criticisms of Bitcoin. These 00:01:08.879 --> 00:01:11.159 big names are joined by others like Joe Biden, 00:01:11.500 --> 00:01:14.480 Janet Yellen, Charlie Munger, Christine Lagarde 00:01:14.480 --> 00:01:16.980 and Elizabeth Warren, who have all dismissed 00:01:16.980 --> 00:01:19.799 Bitcoin as irrelevant to a well -diversified 00:01:19.799 --> 00:01:22.980 financial portfolio. But what if all these detractors 00:01:22.980 --> 00:01:25.900 don't really understand Bitcoin? Maybe they feel 00:01:25.900 --> 00:01:28.420 threatened by the implications it carries for 00:01:28.420 --> 00:01:32.439 their power, wealth or personal worldview. What 00:01:32.439 --> 00:01:34.819 if those who support Bitcoin, instead of being 00:01:34.819 --> 00:01:37.719 quick profit focused speculators, are actually 00:01:37.719 --> 00:01:40.299 proponents of a game -changing network that aims 00:01:40.299 --> 00:01:43.019 to make the global monetary system more fair 00:01:43.019 --> 00:01:46.359 and transparent? The misconceptions surrounding 00:01:46.359 --> 00:01:48.900 Bitcoin could very well be distorting the public's 00:01:48.900 --> 00:01:51.280 perception of it, causing many to miss out on 00:01:51.280 --> 00:01:54.500 a vast potential opportunity. It's worth noting 00:01:54.500 --> 00:01:56.959 that, despite its well -known tendency towards 00:01:56.959 --> 00:01:59.959 volatility, Bitcoin has been the most successful 00:01:59.959 --> 00:02:03.239 asset of the past decade. as well as the highest 00:02:03.239 --> 00:02:07.480 yielding asset during Q1 of 2023. Perhaps this 00:02:07.480 --> 00:02:10.800 isn't the behavior of a scam or speculative bubble, 00:02:11.259 --> 00:02:15.099 but rather of an emerging technology and a philosophical 00:02:15.099 --> 00:02:17.860 approach to money that people are still coming 00:02:17.860 --> 00:02:29.780 to grips with. Let's dive into the fascinating 00:02:29.780 --> 00:02:33.560 world of Bitcoin, shall we? What exactly is Bitcoin's 00:02:33.560 --> 00:02:36.259 purpose? Well, for starters, we can break it 00:02:36.259 --> 00:02:39.620 down into two main objectives. First, to create 00:02:39.620 --> 00:02:42.819 a digital version of cash. Second, and perhaps 00:02:42.819 --> 00:02:45.180 more controversially, to break the government 00:02:45.180 --> 00:02:48.800 monopoly on money. The Bitcoin white paper, published 00:02:48.800 --> 00:02:52.080 back in October of 2008, starts things off by 00:02:52.080 --> 00:02:55.090 saying, a purely peer -to -peer version of electronic 00:02:55.090 --> 00:02:57.490 cash that would allow online payments to be sent 00:02:57.490 --> 00:03:00.009 directly from one party to another without going 00:03:00.009 --> 00:03:02.949 through a financial institution. It's becoming 00:03:02.949 --> 00:03:05.150 increasingly clear that the world is moving towards 00:03:05.150 --> 00:03:08.229 a purely digital financial system where there 00:03:08.229 --> 00:03:11.550 won't be any physical cash -like bearer instruments. 00:03:12.150 --> 00:03:14.810 This means that financial institutions, banks, 00:03:15.030 --> 00:03:17.289 or even the government will have the power to 00:03:17.289 --> 00:03:20.219 authorize all digital transactions. This doesn't 00:03:20.219 --> 00:03:22.800 sit well with a lot of people, especially those 00:03:22.800 --> 00:03:25.120 in regions that have a history of abusing civil 00:03:25.120 --> 00:03:27.680 rights. Some countries in China have already 00:03:27.680 --> 00:03:30.400 gone completely digital and even use access to 00:03:30.400 --> 00:03:32.680 the monetary system as a way to exert social 00:03:32.680 --> 00:03:35.960 control. On top of controlling the monetary system, 00:03:36.520 --> 00:03:38.939 governments have also held an authoritative position 00:03:38.939 --> 00:03:42.560 over the money supply. Unfortunately, their track 00:03:42.560 --> 00:03:45.219 record overseeing it leaves a lot to be desired. 00:03:46.159 --> 00:03:48.280 Historically speaking, Governments around the 00:03:48.280 --> 00:03:51.520 world have a near perfect record of either mismanaging 00:03:51.520 --> 00:03:54.319 or corrupting their money supply to the point 00:03:54.319 --> 00:03:57.840 of failure. In the past, this typically occurred 00:03:57.840 --> 00:04:00.680 by debasing coins of their precious metals. But 00:04:00.680 --> 00:04:03.199 in modern times, it has been through uncontrolled 00:04:03.199 --> 00:04:06.659 money printing. Today, countries like Argentina, 00:04:07.039 --> 00:04:09.509 Lebanon and Turkey have printed themselves into 00:04:09.509 --> 00:04:12.550 annual inflation rates of anywhere from 50 % 00:04:12.550 --> 00:04:16.250 to a staggering 150 % and are hovering on the 00:04:16.250 --> 00:04:19.790 brink of complete currency collapse. It's unlikely 00:04:19.790 --> 00:04:22.509 that a fintech company tied to the existing financial 00:04:22.509 --> 00:04:25.709 system or even a government would create a technology 00:04:25.709 --> 00:04:27.689 that completely eliminates their authoritative 00:04:27.689 --> 00:04:30.589 role over the monetary system and the money supply. 00:04:31.230 --> 00:04:33.629 After the advent of the internet, several startups 00:04:33.629 --> 00:04:35.949 in the private sector attempted to create peer 00:04:35.949 --> 00:04:38.720 -to -peer digital cash. But they all failed. 00:04:39.519 --> 00:04:41.839 They faced several obstacles along the way, but 00:04:41.839 --> 00:04:44.680 at the core, their failure was primarily technological. 00:04:45.379 --> 00:04:47.439 Producing a digital currency that is reliable, 00:04:47.740 --> 00:04:50.319 impervious to corruption, and free of any outside 00:04:50.319 --> 00:04:52.980 assistance is an extremely difficult endeavor. 00:04:53.620 --> 00:04:55.980 Creating a system that allows two parties to 00:04:55.980 --> 00:04:58.620 interact confidently without the need for a middleman 00:04:58.620 --> 00:05:01.120 requires solving what's known as the Byzantine 00:05:01.120 --> 00:05:04.040 general's problem. The computer science community 00:05:04.040 --> 00:05:06.639 thought this riddle to be unsolvable for decades. 00:05:07.069 --> 00:05:09.889 until Satoshi Nakamoto magically gave birth to 00:05:09.889 --> 00:05:12.629 the solution with Bitcoin. Importantly, this 00:05:12.629 --> 00:05:15.269 system created by Nakamoto only produces new 00:05:15.269 --> 00:05:17.689 money through the effort of a computer network. 00:05:18.290 --> 00:05:20.490 The rate of issuance of new money is known and 00:05:20.490 --> 00:05:23.029 the terminal point of the money supply is defined 00:05:23.029 --> 00:05:26.069 and unchangeable. In other words, with Bitcoin, 00:05:26.529 --> 00:05:29.230 the money supply can never be manipulated and 00:05:29.230 --> 00:05:39.019 inflation is impossible. When people think of 00:05:39.019 --> 00:05:41.620 Bitcoin, there are often misconceptions and fears 00:05:41.620 --> 00:05:45.180 that arise. However, these misconceptions often 00:05:45.180 --> 00:05:47.839 stem from a lack of understanding or disinformation. 00:05:48.759 --> 00:05:51.259 One of the biggest misconceptions is that Bitcoin 00:05:51.259 --> 00:05:54.480 and Bitcoin are interchangeable terms, when in 00:05:54.480 --> 00:05:57.860 reality there is a difference between them. Bitcoin 00:05:57.860 --> 00:06:00.720 with an uppercase B refers to the entire ecosystem, 00:06:01.100 --> 00:06:03.779 including miners, nodes, and the network protocol. 00:06:04.240 --> 00:06:07.300 While Bitcoin with a lowercase B refers to the 00:06:07.300 --> 00:06:09.800 unit of account representing the digital currency, 00:06:10.519 --> 00:06:12.740 another misconception is that Bitcoin is not 00:06:12.740 --> 00:06:15.680 very liquid. In fact, Bitcoin is always open 00:06:15.680 --> 00:06:18.560 for business as the network and most exchanges 00:06:18.560 --> 00:06:24.339 that interact with it operate 24 -7 -365. It's 00:06:24.339 --> 00:06:27.439 incredibly easy to buy, sell or use Bitcoin at 00:06:27.439 --> 00:06:30.300 any time from any location in the world. Some 00:06:30.300 --> 00:06:32.720 also claim that Bitcoin cannot handle large volumes 00:06:32.720 --> 00:06:35.379 of transactions. But this simply isn't true. 00:06:36.160 --> 00:06:38.939 In 2022, Bitcoin actually processed more transaction 00:06:38.939 --> 00:06:41.779 value than Visa and MasterCard combined. And 00:06:41.779 --> 00:06:44.720 with efficiency like that, processing large transactions 00:06:44.720 --> 00:06:47.500 of any size is a breeze. There are even examples 00:06:47.500 --> 00:06:50.319 of over $1 billion of value being processed for 00:06:50.319 --> 00:06:53.019 less than $1 .5 billion of fees, with transaction 00:06:53.019 --> 00:06:56.379 finality occurring in less than 30 minutes. Finally, 00:06:56.779 --> 00:06:58.740 A common fear is that the government will shut 00:06:58.740 --> 00:07:01.819 down or regulate Bitcoin to death. However, Bitcoin 00:07:01.819 --> 00:07:04.660 is the most decentralized network ever created. 00:07:05.240 --> 00:07:08.079 It has no owner or central governing body and 00:07:08.079 --> 00:07:10.459 is secured by millions of servers and nodes scattered 00:07:10.459 --> 00:07:13.100 all over the globe. In fact, even a coordinated 00:07:13.100 --> 00:07:15.139 attack by all the world's governments wouldn't 00:07:15.139 --> 00:07:18.040 be enough to shut it down. While on ramps and 00:07:18.040 --> 00:07:20.519 off ramps from Bitcoin to the establishment financial 00:07:20.519 --> 00:07:23.480 system may be points of regulation. preventing 00:07:23.480 --> 00:07:25.439 transactions from occurring within the Bitcoin 00:07:25.439 --> 00:07:37.819 ecosystem is virtually impossible. Let's discuss 00:07:37.819 --> 00:07:40.459 Bitcoin, a topic that is often the subject of 00:07:40.459 --> 00:07:43.100 fierce debate. Some people argue that it is nothing 00:07:43.100 --> 00:07:45.259 more than a Ponzi scheme that has artificially 00:07:45.259 --> 00:07:47.800 inflated returns to the first investors. But 00:07:47.800 --> 00:07:49.980 others insist that it solves real problems and 00:07:49.980 --> 00:07:52.810 is backed by innovative technology. Which side 00:07:52.810 --> 00:07:55.850 is right? Let's explore some of the key arguments. 00:07:56.670 --> 00:07:58.490 Firstly, let's look at the claim that Bitcoin 00:07:58.490 --> 00:08:01.829 is a Ponzi scheme. While Ponzi schemes involve 00:08:01.829 --> 00:08:04.449 deceiving people into investing in a fake enterprise, 00:08:05.250 --> 00:08:07.610 Bitcoin is a real business that has been operating 00:08:07.610 --> 00:08:11.110 for over a decade. It provides a transparent, 00:08:11.370 --> 00:08:13.810 verifiable system for processing transactions. 00:08:14.319 --> 00:08:16.779 and it has been instrumental in solving a number 00:08:16.779 --> 00:08:19.680 of real -world problems. Those who invested early 00:08:19.680 --> 00:08:22.000 have undoubtedly made a profit, but this is true 00:08:22.000 --> 00:08:24.240 of many other successful businesses like Amazon 00:08:24.240 --> 00:08:27.240 or Google. Moreover, most Bitcoin holders are 00:08:27.240 --> 00:08:29.920 not simply looking to turn a quick profit, but 00:08:29.920 --> 00:08:32.399 are long -term savers who have no intention of 00:08:32.399 --> 00:08:35.620 selling regardless of the price. Another criticism 00:08:35.620 --> 00:08:38.840 of Bitcoin is its volatility. It is true that 00:08:38.840 --> 00:08:41.159 its price has fluctuated widely in the past. 00:08:41.549 --> 00:08:43.929 which can be worrying for potential investors. 00:08:44.710 --> 00:08:46.850 However, it is worth noting that Bitcoin has 00:08:46.850 --> 00:08:49.870 been the best performing asset of the past decade 00:08:49.870 --> 00:08:52.629 and has always recovered from price drops to 00:08:52.629 --> 00:08:56.110 establish new highs. Moreover, for people in 00:08:56.110 --> 00:08:58.889 countries with unstable currencies, Bitcoin can 00:08:58.889 --> 00:09:01.470 be seen as a safe haven and a way of protecting 00:09:01.470 --> 00:09:04.750 their wealth. Finally, there are those who compare 00:09:04.750 --> 00:09:08.000 Bitcoin to the internet itself. suggesting that 00:09:08.000 --> 00:09:10.480 we are still in the early days of understanding 00:09:10.480 --> 00:09:13.659 its full potential. The Internet took decades 00:09:13.659 --> 00:09:16.440 to become the ubiquitous force it is today, and 00:09:16.440 --> 00:09:19.000 many experts initially dismissed it as a passing 00:09:19.000 --> 00:09:22.179 fad. The same could be true of Bitcoin, which 00:09:22.179 --> 00:09:25.240 has only been around for 14 years. While there 00:09:25.240 --> 00:09:27.279 will undoubtedly be winners and losers in the 00:09:27.279 --> 00:09:29.799 Bitcoin market, those who buy early and hold 00:09:29.799 --> 00:09:32.559 on are likely to be the biggest long -term winners. 00:09:33.059 --> 00:09:36.379 So, is Bitcoin a Ponzi scheme? a risky investment, 00:09:36.700 --> 00:09:39.539 or a potential game -changer? The answer, as 00:09:39.539 --> 00:09:41.659 with so many complex issues, is not straightforward. 00:09:42.399 --> 00:09:45.039 However, by considering the evidence and weighing 00:09:45.039 --> 00:09:47.700 up the arguments, we can begin to see the potential 00:09:47.700 --> 00:09:50.379 of Bitcoin and its impact on the future of finance. 00:09:59.560 --> 00:10:02.340 Bitcoin is not a new concept anymore. It has 00:10:02.340 --> 00:10:05.419 almost 100 % awareness in the mainstream public 00:10:05.419 --> 00:10:09.340 globally and has reliably executed tens of trillions 00:10:09.340 --> 00:10:12.500 of dollars worth of transactions. It's been around 00:10:12.500 --> 00:10:15.419 for 14 years without a single hack to the blockchain 00:10:15.419 --> 00:10:18.820 which is pretty impressive. Bitcoin has an extremely 00:10:18.820 --> 00:10:22.360 limited supply. Only 21 million bitcoins will 00:10:22.360 --> 00:10:25.200 ever exist and are gradually released into circulation. 00:10:25.710 --> 00:10:28.070 The most significant thing to understand about 00:10:28.070 --> 00:10:30.830 Bitcoin is that it functions similarly to the 00:10:30.830 --> 00:10:33.730 internet, cell phones, and Facebook. They are 00:10:33.730 --> 00:10:36.570 all massive networks. As these types of networks 00:10:36.570 --> 00:10:39.070 grow, they follow exponential curves that appear 00:10:39.070 --> 00:10:42.009 gradual initially but quickly ramp up. This is 00:10:42.009 --> 00:10:44.070 known as Metcalfe's law, which states that a 00:10:44.070 --> 00:10:46.190 network's power grows by the square of the number 00:10:46.190 --> 00:10:49.149 of users. Bitcoin has been quietly growing for 00:10:49.149 --> 00:10:52.250 years and now has 45 million addresses that hold 00:10:52.250 --> 00:10:54.850 at least a fragment of a Bitcoin. Its potential 00:10:54.850 --> 00:10:57.129 is enormous and poised to overtake the Internet 00:10:57.129 --> 00:11:00.269 in the late 1990s. Crypto assets and Bitcoin 00:11:00.269 --> 00:11:03.370 have come a long way. In the past, financial 00:11:03.370 --> 00:11:05.710 advisors discouraged clients from investing in 00:11:05.710 --> 00:11:08.970 crypto. But as people become more educated, the 00:11:08.970 --> 00:11:12.529 risk is lower and the demand is high. The general 00:11:12.529 --> 00:11:14.789 public is now becoming much more educated about 00:11:14.789 --> 00:11:17.909 Bitcoin and its merits. Therefore, every financial 00:11:17.909 --> 00:11:20.029 advisor should acquire an in -depth knowledge 00:11:20.029 --> 00:11:22.850 of Bitcoin because they may soon be facing a 00:11:22.850 --> 00:11:25.830 horde of passionate and informed investors demanding 00:11:25.830 --> 00:11:28.850 advice and participation. It is also important 00:11:28.850 --> 00:11:31.529 to note that, just like the internet, Bitcoin 00:11:31.529 --> 00:11:34.210 is an alternative monetary system competing with 00:11:34.210 --> 00:11:36.889 the establishment one. It may ultimately eat 00:11:36.889 --> 00:11:39.809 the entire existing establishment monetary system 00:11:39.809 --> 00:11:42.990 or co -exists with it, but its influence has 00:11:42.990 --> 00:11:45.879 grown significantly. Every financial advisor 00:11:45.879 --> 00:11:48.179 knows that a short position carries a tremendous 00:11:48.179 --> 00:11:51.200 amount of risk. So a choice to not participate 00:11:51.200 --> 00:11:54.600 in Bitcoin becomes a de facto short position. 00:12:03.480 --> 00:12:05.940 In today's episode, we cleared up Bitcoin misconceptions, 00:12:06.820 --> 00:12:08.799 discussed its potential for creating a new digital 00:12:08.799 --> 00:12:11.620 version of cash and dispelled fears of regulation 00:12:11.620 --> 00:12:14.939 or comparison with Ponzi schemes. Ultimately 00:12:14.939 --> 00:12:17.360 concluding that financial advisors and informed 00:12:17.360 --> 00:12:20.700 investors cannot afford to ignore the cryptocurrency's 00:12:20.700 --> 00:12:23.500 exponential success in the current decade. Thanks 00:12:23.500 --> 00:12:25.740 for listening to today's episode. I'll see you 00:12:25.740 --> 00:12:28.200 guys at the next one and don't forget to subscribe. 00:12:31.799 --> 00:12:34.940 Disclaimer. Price articles and markets updates 00:12:34.940 --> 00:12:37.299 are intended for informational purposes only 00:12:37.299 --> 00:12:39.799 and should not be considered as trading advice. 00:12:40.250 --> 00:12:42.690 Neither the Bitcoin Street Journal nor the author 00:12:42.690 --> 00:12:45.990 is responsible for any losses or gains as the 00:12:45.990 --> 00:12:47.929 ultimate decision to conduct a trade is made 00:12:47.929 --> 00:12:51.009 by the reader. This is not trading or investment 00:12:51.009 --> 00:12:54.049 advice. This presentation is for education and 00:12:54.049 --> 00:12:57.029 entertainment purposes only. Please do your own 00:12:57.029 --> 00:12:59.210 research before purchasing or investing into 00:12:59.210 --> 00:13:02.250 Bitcoin or any cryptocurrency. Always remember 00:13:02.250 --> 00:13:04.669 that only those in possession of their own private 00:13:04.669 --> 00:13:08.200 keys are in control of their own Bitcoin. If 00:13:08.200 --> 00:13:10.379 you enjoy this type of content, please smash 00:13:10.379 --> 00:13:12.960 the like and subscribe buttons below it. Helps 00:13:12.960 --> 00:13:14.960 us to get more views and continues to spread 00:13:14.960 --> 00:13:16.820 the word about Bitcoin. Thanks again.