The Mark Moss Show 2-28-24

but more importantly, where it's going into the future. And I'm going to break down a strategy of how I've figured it out a way how you can buy this scarce asset you could own it forever, literally retire off of it, and still continue to fund your kids, your grandkids, your great grandkids, and so much. Further, this is a strategy that only the ultra rich have used up until now, but with a technology like bitcoin, it becomes available to everybody.

And that's exactly what we're going to talk about today. If youre just tune in and you're listening to the Mark Moss Show, we talk about the world do the lens of politics, finance, and technology, and today we're going to talk about finance and technology, of course, how bitcoin is revolutionizing the finance industry, a technology revolutionizing that, and how you and I can use this to build wealth

for generations, generational wealth. Now, before we get into the exact strategies and how you can employ that, we'll talk a little bit about sort of where it's at right now and where it's going. So we'll start there now. First of all, if you're not aware, I don't know, if you've been living, you know, in a bomb shelter, underground or something like that. Then if not, then you already know that bitcoin has been making a massive gains.

Right we had the ETF that came out recently, and leading up to the ETF, we saw the price of bitcoin continue to rise over and over and over, and it's not back to its previous all time high yet, but it's close. It's certainly knocking on the door. But the point I want to hit on first is that it's not back to its new all time to a new all time I priced in US dollars. Now, this is one of the reasons why bitcoin or something like bitcoin is important a neutral reserve asset, more importantly, not

just a neutral reserve asset. Gold was a neutral reserve asset, A neutral reserve asset. When I say when I say that, I mean an asset that nobody can control. Right. The problem is is that we use money dollars or euros or yuan or yen or payss as a unit of account. Let me just back it up. Okay. Money is an evolutionary process. It's emergent. It's an evolutionary path that could

make it not always does so. Money what we use as money, something to store our energy, our value, store our wealth in and use as trading as a medium exchange to get the goods and service that we want is has emerged and evolved throughout history. We've had lots of things be money or medium of exchange or stores of value. And those would be rocks, those would be feathers, those would be seashells, lots of things. Now gold emerged as that. But let me give you this evolutionary path.

It starts with first a collectible. Wow, look at this cool rock. Look at this cool shell. It's pretty cool. I like it. I'm gonna keep it. Now. It starts as a collectible. Maybe if if it has the right actributes it could evolve from a collectible to a store of value. So we see today, like my kids collected all kinds of things when their little kids. One of the things that my daughters loved to collect with these little pet shops. There's like little tiny figurines, like little

bobble heads. We had hundreds of these things. They collected them, right, every new release that came out, they had to have it. But it never evolved to a store of value. Even though we had one hundred, we had like containers full of these things. We never stored our wealth in them, right, they're not worth anything. But some collectibles do become a store of value. So baseball cards, collectibles that a lot of people store their wealth in, watches, fine art, old cars, painting, right,

you get that. Pokemon cards, even people store their wealth in those, all right. So some of these collectibles, not the pet shops, but some collectibles do make it to the evolutionary path of becoming a store value. Then, maybe not all of them, most of them not, but if they have the right attributes, they could evolve to the next stage, which is a medium of exchange. All right. Now, in order to evolve into that, it has to have

the right attributes of moneiness. So that's divisibility, portability, fungibility, sellability, things like that. Right, So, like a pet shop isn't going to make a good form of money because it's not divisible. It's just one pet shop. A cow can't be a good form of money because a cow is not divisible. A cow is not portable. How do I transport a cow? A banana is not durable. I can't

store my wealth and bananas because they're gonna go bad. Okay, if it evolves to a medium exchange, then eventually it could evolve to what we call a unit of account where we start to measure things in it. And so now we're back to the measuring things. You have to understand that everything in life is a trade and feat currency. Basically, the dollar or whatever currency y're end is one half of every transaction. So how much is a gallon of gas for sixty nine four dollars and sixty nine cents

per gallon? How much is a house three hundred thousand dollars? How much is a steak dinner sixty dollars? Right, so everything's measured in that unit of account. But here's the problem. One we have lots of units of account, so we have dollars, un one, pesos, et cetera. But more importantly number two is that each one of those denominators in the equation is constantly being manipulated adjusted. It's like I'm trying to build a house with an elastic tape measure.

So back to what I was talking about. Sorry, long, long way around here. The US bitcoin has not made a new all time high priced in US dollars, but it did just hit new all time highs in fourteen different countries this week. Not one, not two, not three. We're talking about fourteen different countries that it hit this week,

so it's a pretty big deal. Now, again, this kind of highlights the point of the problem that we have, which is one of the parts that bitcoin is here to solve, is that we don't have a neutral reserve asset. Everybody is managing on their own. Now, what are the fourteen countries that hit Argentina, Barandi, Congo, Egypt, Ghana, Japan, Laos, Lebanon, Malawi, Nigeria, Pakistan, Sierra Leone, Sudan, and Turkey. So each one of those nations just hit a new all time high in bitcoin.

The dollar, My good friend Brent Johnson, Santaio Capital. We've had him on my main YouTube channel many times. He talks about the dollar milkshake theory, and the dollar milkshake theories at the dollar will suck the liquidity out of all the other currenturrencies, and that's exactly what's happening. So the dollars like this dollar milkshake, it's draining liquidy out

of all the other FEA currencies. And so we're seeing these currencies as I've just mentioned Lebanon, Turkey, Peru, Venezuela, Argentina, all of these currencies are collapsing as the dollars getting stronger and stronger and stronger. But the dollars getting stronger and stronger and stronger against other currencies, it's not getting stronger against other assets. That is a very key piece that you have to hit on. But back to this

point that we're talking about. So we've seen it now, as I said, fourteen currencies, it's got back to a new all time high. Another key piece that I want to talk about bitcoin just real quickly. A lot of people will think that it's not a good store value. How can it be a good store value when it's very volatile. Well, first of all, volatile means that it goes up and down, So I guess the store value

means it never changes. But as my favorite economist, lugwoodvon Misa says that in the world of economics, there there's no such thing as a constant. So if you're using things like oil or gold to measure, well, the amount of oil and gold is changing all the time, so there's never a constant until now there is. Right. So bitcoin has a fixed supply, and so it is a good store value. But it's volatile and it's going up. But if you look at it over any short term period,

you could say, well, but look it's down. So for example, I just said that right now bitcoin's sitting around a fifty two thousand dollars and the high was set at sixty nine thousand. So Mark, how can you say it's a good store value. I bought it at sixty nine thousand and it's only worth fifty two. I lost my value. It's not a good store value, it's not a good

hedge against inflation. I lost money. Well, what I'd say about that is that you have to zoom out, and what we can see is that bitcoin is a four year bet. So in business, in finance, we have what we call cycles. We have long term business cycles, we have debt and credit cycles, we have real estate cycles, and we also have bitcoin cycles. And so whether it's a business or an investment, or a real estate or bitcoin, you have to understand the cycles. Otherwise you're kind of

talking like somebody who's not really well informed. But I don't want that to happen. I want you to be informed. So let me break it down for you. It's actually pretty simple, but I gotta take a very quick break. If you're just tune in, you're listening to the Mark Moss Show talking about bitcoin and its evolutionary path. I'll be back with more in a minute. Don't go away,

bear back, all right, welcome back. If you just tune in, you're listening to the Mark Moas Show, we're talking about bitcoin in bitcoin cycles, business cycles, real estate cycles, credit cycles, and so much more. So. What I was talking about is bitcoin is making you all time highs and fourteen currencies not yet in the US dollar, and actually when you adjust the US dollar for inflation back to them

being so manipulated. If we look at that, the bitcoin is nowhere near back to an all time high because the dollar isn't worth near what it used to be back then. But going back to what I'm talking about here, so we know that there's business cycles, there's credit debt cycles, Like I said, even in real estate. So I started my career in real estate as a real estate investor, and I still own and buy a lot of real estate.

Typically the sort of rule of thumb with real estate would be like for your house, like don't buy a house unless you plan to hold it for at least five years. And the reason why is because over a five year period, even though real estate has gone down before, it typically comes back up. And so you're going to be pretty safe if you have at least a five

year record. With businesses, specifically you know, bigger businesses, it typically takes years to make to become profitable, right, so you're investing money, investing money, you're building building building eventually comes profitable. For a big business, you know, something that might go public, like a public traded company, typically you have like a ten year period, which is why with like venture capital and things like that, they have a

ten year holding period. So I know if I invest in this early stage company, I got to just sit back and away for ten years. I know, if I buy this piece of real estate, I gotta sit back away for five years. And bitcoin is like the same way. If you buy bitcoin, you need to sit back and wait for four years. What we can see going back through now about fifteen years of data that there's never

been a four year period that Bitcoin's been down. So in this four year cycle, during a four year investment period, bitcoin has never had annualized returns under thirty percent. Now, let's put this into perspective. The S and P five hundred, which has been absolutely crushing it averages depends on what period? Is it a sixty year cycle and eighty year cycle? Depends is it over the last twelve months? Right? So

what period? But over like a sixty year period, the S and P five hundred returns about seven and a half eight percent kind of depends on what period it is, but somewhere in the seventy percent range, right, Okay, So during a four year investment period, any four year period, Bitcoin's never had annualized returns under less than thirty percent.

That's pretty good. No matter how bad you time the investment market, if you would have bought at the the previous peak in twenty seventeen, doesn't matter where you're at. Within four years you had averaged at least thirty percent, right, So that's pretty good. It's man, was that four or

five times what the SMP five hundreds is done. Now if we look at the four year investment period against other assets, we can see, like I said, bitcoin has about thirty to sixty percent annualized returns in that four year period, the SMP five hundred has had about a ten percent annualized return. Real estate has had about a ten percent return as well. Why have a SMP five hundred and real estate both had about ten percent because

they're perfect proxies for inflation. Perfect proxies. What does that mean? That means they basically move up at the rate of inflation, So you're not making money, but at least you're sort of protecting or offsetting your losses. Whereas bitcoin isn't just keeping up with inflation, it's beating inflation, which is what we want. Right the goal I mean, obviously step number one don't lose your money, right, don't let the state steal your money through inflation set number one. But two,

how can we get ahead. And if you're just making your ten percent in real estate or in S and P. Five hundred, you're not getting ahead. Now, let's go back and just look at some math. Let's not go too far back again. We can cherry pick data. But there's two big epochs of the financial world that I talk about quite a bit, and I think we have to understand the world to this lens. The financial world with this lens. In two thousand and eight, the world changed.

The way that central banks and governments interact in financial markets changed forever, and it's only been accelerating. So what happened in two thousand and eight in the United States, the Federal Reserve launched quantitative easing. Not only did they launch quantitative easing where they started pumping money into the markets, but they started pumping money into certain parts of the market like buying mortgage backed securities, buying bonds, things like that,

and that forever changed the way the world works. So a lot of times when you look at a financial data, if you go back pre two thousand and eight, you can't just take that forward because it's not the same. The second epoch was basically continuation of that first one. And this is the pandemic. So in twenty twenty, the world changed. The world had never seen the entire economy literally shut down overnight. Businesses that have been in business

for decades just shut down. We've never seen that before. And we also again never saw the central banks of the world work in markets like they had done in twenty twenty. It's two thousand and eight times one thousand, right, So instead of very slowly, very minimally affecting the markets, they just jumped full bore in, which is why in two thousand and eight, when the S and P five hundred dropped about sixty percent, it took seven years to

get back to a previous all time high. But in twenty twenty the market dropped about the same but it took like three months, all right, So we have to understand there's two different epochs. So I don't want to cherry pick data, but a lot of data that we look at from a financial standpoint is sort of from a two thousand eight from a twenty twenty standpoint. So let's just look at from twenty twenty. So in twenty twenty, the world was locked down. It's complete chaos. I know,

if we're all going to die. We didn't know what was going on, and the governments of the world did something that they'd never done before, which is send everybody in the world a stimmy check. Did you get one? I didn't get one, unfortunately, but I think you had to make less than seventy five thousand dollars. I didn't get a stemy check. But they sent stemy checks twelve hundred bucks to everybody. Now, some people, most people used

that money for door dash groceries, to pay rent. A lot of people started gambling with it, like Robin Hood took off everyone's trading options, doing cryptocurrencies. A lot of people took trips, whatever it was. A lot of people just took the stimmy and they spent it, which is what the government wanted, right, they wanted to stimulate the economy.

But if we would have taken that twelve hundred dollars, which I'm sure many people have taken that twel hundred dollars and put it into bitcoin at that time, and we fast forward to today now about four years later, that twelve hundred dollars investment into bitcoin is now worth nine thousand, two hundred and thirty dollars from twelve hundred to ninety two hundred. That's a six hundred and sixty nine percent return. Six hundred and sixty nine percent return.

Now that's crazy, right. If you use your twelve hundred for the stimulus purposes they wanted, and you bought a bunch of food at the grocery store or door dash, you probably gained a bunch of weight. But if you would have put it in a bitcoin, you would have gained a bunch of money. So the takeaway that I want to point to here is that if you have the right term perspective, and look, if you don't have the right term perspective, you have no business investing your money.

I've talked about this before. I get asked all the time, Mark, what's the best asset I should buy? And it's like, if you don't know the answer to that, you probably shouldn't be buying anything. Even if I told you what the best investment is, you probably shouldn't buy it because you don't understand it. You won't understand how much you should buy, How much should you buy? What you should

you be watching? What if there's new information that comes out that says we need to sell right, and so like, if you don't understand enough to know what to buy, you're certainly not kind of enough to manage that safe. And it's something I say quite a bit, which is that the risk is always in the investor and not the investment. So I talk about this quite a bit,

like in terms of like surfing. If I took you to Hawaii to pipeline where the waves are thirty feet and you're from Kansas, you've never been in the ocean before, and I took you out there, you would probably drowned, okay, But there's hundreds of people out there every day just playing, having fun in the waves, you see. So the risk isn't in the wave necessarily, it's in the surfer or the person that goes out into the waves. And the same is true with your investments. The risk is in

the investor, it's in you. So again, if you don't understand that there's business cycles, there's investment cycles, there's debt and credit cycles, there's bitcoin cycles, there's real estates. If you don't understand those things, then you probably shouldn't invest in the first place, which is why I'm breaking it down for you right here. If you're just tuning in.

You're listening to the Mark Mass Show. We're talking about bitcoin, the past, the present, and more importantly, where it's going, and how buying a little bit of bitcoin today could potentially retire you for the rest of your life. I'm gonna break all that down, break down the math. If you're just tuning again, like I said, you're listening to the Mark Mass Show, I'll be back after a very short break. Don't go away right back, all right, welcome back.

If you just tune in yourthing to the Mark Moss Show, and we are talking about the most groundbreaking or revolutionary technology the world has ever seen, which of course is a bitcoin. And I know that sounds a little bit hyper bowl, hyperbolic, whatever, however you say that word because a lot of people say it's just like old technology. It's like an old rock and Mark, you don't know what you're talking about. It has scaling issues. Okay, those

are like twenty sixteen arguments. You're still bringing those up. Things change. And I'm old enough to have been around pre Internet, and I remember using the Internet as it was being developed and the Internet would never scale, no one would ever use it. I've been there as a matter of fact, I've told this story before. In two thousand and once we had the dot com run up, and then we in two thousand we had the dot

com crash. In two thousand and one, the year after the big crash, I had this great idea that I was going to build an e commerce website and sell products online. And the problem is is that back then

there was no like word press or Shopify. There was no Amazon eBay, there was no Amazon was there, but at the time it wasn't really being use for that, so there's really no way for me to just go sell e coom And I had to hire a developer and I think I spent like twenty five thousand dollars back then, which is a lot of money to build just like the most basic of like e commerce stores you can imagine, right. And then I wanted to start

selling products. I was in the action sports physically in like the motorcross niche and I went to these companies and I said, hey, I want to sell your products on my website. And they laughed at me and they told me that nobody would ever buy anything online. It was ridiculous, and I'm like, well, I think they will and you know, you could be right. I could be right, but I'm willing just to give you the money. I'll

buy your stuff. And a lot of companies told me that, but they didn't even want their products being sold on the Internet because it was it had this stigma, you know, had just had this big crash. Everyone thought it was a scam. It was never going to scale. As a matter of fact, the Internet had been around since like

the seventies and eighties, through like Darbay, the military. But the first WWW, the first public website, was in nineteen ninety The first bitcoin, I'm sorry, the first Internet purchase was nineteen ninety four. Nineteen ninety five, we had the IPO Netscape, which then set the whole thing into motion to go into two thousand. But yet by two thousand, about thirty years after the Internet was invented, ten full years after it went completely public, six full years after

the first purchase. And this is in two thousand, this is when it's all over TV and it's pets dot com, it's Webman dot com. Even then, less than ten percent of people had ever bought anything online. Because it just takes time. It just takes time. And it also wasn't very usable. The Internet was hard to use, it was way too slow, and it wasn't really until about two thousand and seven when the iPhone came out that really the Internet started taking off. Now it's a long, long story,

but here we are back to bitcoin. I know it's an old technology. It's very slow. Yeah, yeah, yeah, yeah, that's old technology. The point that I was going to make is that I've heard that one hundred I've heard it one thousand, I've heard it ten thousand times. Before technology scales, you just got to give it time. And we're there now back to the point that I'm making. So we talked about where bitcoin is. It's eating all

these other currencies, it's made high and fourteen currencies. Where could it go is anybody's guess, But there are some educated guesses that we can have, and they sound a little crazy, but I'm going to go ahead and throw them out to you. Anyway. What we do know is since bitcoin's inception, it's averaged about a two hundred percent compounded annual growth rate. We do know that, okay, But again, as we say in the finance world, that past performance

is no guarantee of future performance. So just because it's had that doesn't mean it will continue to that. It could, it couldn't. We don't know the answer to that. But what we do, so like back to sort of like venture capital investing, what we do is we try to we try to guess this. When I'm investing into a business, an early round business, venture capital my goal because they say I'm raising fifteen million at a sixty million valuation, I'm like, where are you getting a sixty million dollar

valuation from? Well, I'm going into the food space and I'm going to disrupt these couple companies and this market is this big, and if I can get this percentage of that market, it would give me that market cap. Right, And so we can look at bitcoin the same way, So like what assets, what asset classes, what business is, what sectors is it disrupting? How much could it get from there? Now, there's a bunch of ways we can do this. We can look at growth rates. We can

look at Metcalf's law for scaling. We can look at the supply demand curve of bitcoin because we know that in advance. We can look at the asset categories that's breaking down. So we can look at a couple different measurement tools, and let me just run you through a couple of those. Now, first of all, we sort of we know the supply demand curve, we know the metrics that it runs on, and so if we look at

that alone, it's going to sound kind of crazy. But per Fidelity, which puts out amazing research on bitcoin, they've been in bitcoin since twenty fourteen, I believe, when they started mining. In per Fidelity's own research, they say that by twenty thirty eight bitcoin could be one billion dollars per bitcoin. Now, I do want to point this out that when bitcoin is worth one billion dollars, it's not

in today's dollars. Okay, you have to understand that in time when we start to have heavy inflation sort of like what we've been having, but even worse like in Zimbabwe, for example, everybody became a billionaire. Everyone was a billionaire in Zimbabwe. The problem was it was three hundred and fifty billion for one single egg. And so you have to keep this in mind, like you already know, like one hundred thousand dollars doesn't buy you what one hundred

thousand dollars did twenty years ago. When I was a kid, like being a millionaire was everything, and today being a millionaire like in California, like you could still be broke. So you have to understand that when in twenty thirty eight, when they're projecting to be worth a billion, a billion dollars is not that much money. A billion dollars might be like a million dollars, you know, something like that.

So that's their projection, okay, but that's based off the supply demand curve and the growth rate and Metcalfs law and things like that. But if we look at like industries, it's it's disrupting and stealing value from we can get different calculations. So, for example, we look at bitcoin as a store of value. Great, So what other things are

we storing our wealth in today? What we store a wealth in gold, we store our wealth store value in stocks, in real estate, in offshore bank accounts, things like that. So if we add those up, thirty to forty trillion off shore bakecounts, twelve to thirteen trillion dollars in gold, eighty trillion dollars of stocks. If we add that up three hundred fifty trillion in real estate, we get to about seven hundred trillion dollars so could it get two percent of that, could it get five percent of it?

Could get ten percent of it? And the answer is yes, like of course it can. And so that could easily push bitcoin up to two, three, four five million dollars. The guess is how quickly could it get to that point? And we don't know. I'm thinking that maybe a million dollars by the end of the decade could be somewhat realistic. I know that sounds crazy, right now, we could go even further. So we know that if we look at total assets in the world, we have about nine hundred

trillion nine hundred trillion. Now we talked about at the beginning of this the evolutionary path that collectibles go on to becoming maybe some of them go on to becoming a unit of account. So that means it goes from the member of the path, right, So it starts as a collectible, it goes to a store value, goes to medium exchange, and they can go to a unit of account. If it becomes a unit of account, then everything is

priced in that unit of account. So if you take if you think about it like this, nobody wants money, which is crazy, right. What we want is the goods and services that money buys us. So we use money as a place to park our wealth, to store our value until we're ready to deploy it to get the goods and services that we want. Think about it like that. So basically, what you have is all the goods and services in the world divided by all the money in

the world. And if we get more goods and services, then the value of that money has to go up. So if bitcoin makes this evolutionary path, completes the evolutionary path and is able to go, we're already at the medium exchange stage. We're somewhere in between the store value and medium exchange stage. If we can complete that and move to a unit of account, maybe in a decade, maybe it's two decades, maybe it's three decades. If we get to that unit the count, we could reprice nine

hundred trillion dollars worth of wealth in bitcoin. Now, hang on, this sounds crazy, I know, But nine hundred trillion divided by twenty one million brings a forty two million dollars price per pitcoin. No, I know that sounds absolutely crazy, and it is, but that's the potential. Now, this potential doesn't mean he'll get there. It's potential, but I want to talk to you. Let's let's let's take that. Let's take those big numbers off, and let's scale it back,

and let's make it more practical for you. I'm going to come up with some numbers and tell you specifically how you could retire off of an asset like bitcoin. I'll be back with more in a minute, after a very short break. Don't go away, right back, all right, welcome back. If you just tune in, you're listening to

the Mark Moss Show, and we're talking about bitcoin. We're talking about the potential of where it could go potentially on price point, and more importantly, we're going to talk about how you could leverage an asset like bitcoin to retire off of. Now, I want to just throw this out there. You can apply this to any asset. You could apply it to stocks, you can apply to bonds, you can apply it to gold, you can apply it to real estate. So this strategy is what the rich

use in order to grow wealth really really fast. And again it doesn't have to be with bitcoin, it can be with anything. Now, it works better with bitcoin because bitcoin is the best performing asset, So the better the asset performs, the easier it is to enact this strategy. It works very well with real estate as well, because of the readily available mortgage loans. So I love to do it with real estate. I love to do it with bitcoin, but you can certainly do it with stocks,

You can certainly do with gold, et cetera. All right, so what am I talking about. We're talking about buying an asset and then never selling it. When somebody asks me, Mark, at what price will you say you're bitcoin? I'm like, you don't understand the game. The goal is to get more assets, not more dollars. I mean I want to get more dollars, just want to get more assets. But the goal is to get more assets. It's like nobody

buys a drill, they buy the whole. I don't want the drill, I want the hole, but I had to get to get thrill. So I don't want the money. I want the assets. And so when someone says you to sell your bitcoin's like, you don't understand the game. The game is to get more assets, and the goal is to get assets and never sell them, because the goal isn't money. The goal is assets, and the goal is for me to pass those assets to my kids, and those my kids to pass them to my grandkids,

et cetera. So what you want to do is you want to buy scarce property, scarce assets, waterfront property, right downtown city blocks, and then you never sell them. If my great great grandfather had bought, you know, eight square blocks of downtown Manhattan and New York City, when would have been the right time to sell those? I mean, the answer is never, never, because if you sold those eight blocks, how would you ever buy those eight blocks back again? You would never be able to get that again.

You can maybe buy one block, I mean maybe one building on a block. You never get eight blocks back right because it's too scarce, So you never sell it. What you want to do, and the other reason why you never want to sell it is because of taxes. The taxes are the best way to lose all your wealth. So if you're in a heavy tax state like California, for example, and your the top income BRAX at your bracket, you're paying fifty percent tax. So let me break this

math down for you. If I were to buy one hundred thousand dollars worth of bitcoin and it doubles to two hundred thousand, which I think is likely in the next twelve to fourteen months. So I have one hundred thousand, it doubles to two hundred thousand. Well I'm like, well, shoot, I need a one hundred thousand to go buy this piece of real estate, or go launch this business, or to put into gold, whatever I want to do with it.

I would have to sell the two hundred thousand dollars worth of bitcoin to get the two hundred grand, but then I would owe tax, So then fifty percent goes to tax, and I'm left with one hundred grand. I didn't really make any money. Well theoretically, I'm only paying tax on the profit, So I ended up with one hundred fifty Graand okay, or what I could do is I could I could keep the bitcoin, I could borrow one hundred thousand against it, and the beauty of that

is that's debt, so it's tax free. So now I get the one hundred grand, but I still have the two hundred thousand dollars in bitcoin, so that still goes up in value. Now, as bitcoin continues to go up in value, that two under grand is going to two hundred and fifty three hundred three hundred and fifty four hundred first, as if I had sold it, I'm just out of the game altogether. The goal is to not get out of the game. If you haven't noticed, prices

just continue going up. Homes just get more expensive, right, Cars just get more expensive. And the problem is if you're not in the game, which is the problem for millennials today. If you're not in the game, all you do is get further and further behind. It's easy for the millennia, or it's easy for the boomers because they bought when it was cheap and they just keep rolling that equity over, rolling the equity, rolling the equity over. But if you're not in the game, it's very difficult

to get in. And that's what happens. If you were to sell your bitcoin or sell that trophy property, it's very difficult to get back in. So what you want to do is keep that trophy property, allow it to keep going up in value, and leverage debt against it because it's tax free and you still have the asset to compound the value for you. Does that make sense? That's the goal. Let's talk about some of the numbers that potentially could be behind this all right, So I'll

run you through this now. First of all, like I said, this can happen on any asset. You can do this on real estate. It's what my good friend Robert Kiyosaki does. When Robert and I, he's been my mentor for twenty five years in books, but we became friends after I started going on to speak the speaking circuit, if you will, speaking at all these different conferences and things like that. And I remember specifically at our mutual friend George Gammon's conference,

he was calling me out from stage. I was sitting in the crowd because I was living in Puerto Rico at the time, and he's like, oh, these guys like Mark Moss moving all the way to Puerto Rico with their families, so they don't if they can lower their tax liability. They don't understand. The rich like me don't pay taxes. That's what he would say. So Robert Kiazaki doesn't pay taxes because he uses the strategy does one

percent use, which is to leverage debt. So you buy the real estate, you let the real estate go up in value, you borrow money against the real estate that comes out tax free. Let's talk about how you can do that with bitcoin. So let's just say bitcoin is not going to continue two hundred percent growth rate this year. I think it will one hundred and fifty percent next year, but then it's probably going to drop by fifty percent. Then it's gonna go up one hundred percent. Down is

gonna go by fifty percent. Then it's going to drop thirty five percent. So it's gonna about what we've seen for the last fifteen years. You have like four good years, one down year, four good years, one down year, so I've sort of projected like that. So let's just say hypothetically, you buy one hundred thousand dollars worth of bitcoin today and in a year it's worth three hundred thousand dollars in bitcoin. Then it goes to one hundred fifty percent.

So now you have it's worth seven hundred two thousand, Then it goes to one hundred percent, it's worth three and seventy five thousand, it goes to one hundred percent, it's worth sven hundred thousand. Okay, Now on year five, what I could do is I can take a loan I can borrow against my bitcoin, and I would only put ten percent at risk. Leverage is very dangerous. Okay, you could lose everything if you don't use credit properly. So I'm only advocating for ten percent. It's not gonna

You're not gonna die with ten percent leverage. At worst, you just sell it, you just cash it in. That ten percent gives you seventy five thousand dollars. Now you have seventy five grand of debt that's non taxable. The next year you borrow ten percent again, and then you take that money, you pay off the previous debt, and you're left with seventy five thousand dollars again, a free cash flow. The next year, you can borrow ten percent again, which is enough to pay off the previous debt and

give you seventy five thousand again. The next year you borrow ten percent again. The next year you have to go up to twenty percent because of the way bitcoin dropped down. But each time I borrow it gives me enough money to pay off the previous debt and have about seventy five grand to a free cash flow to live now. I have this all on a Calculator spreadsheet. If you want to get it, you can go to my website At my website is one Markmoss dot com.

That's the number one one Markmoss dot com. You can download this entire worksheet workbooks you can understand this a little bit better. But not only is the amount of debt that we're leveraging stays about the same. It goes anywhere from ten to twelve percent. It goes as high as twenty percent in one year, but then it drops

down into eight percent, seven percent, six percent. And each year the amount of free cash flow in debt that we keep goes up as well, starting at seventy five thousand, and in year twenty going up to its highest two hundred and thirty one thousand. Why because inflation you're gonna

have to make that much more. If in twenty years from now, the equivalent of seventy five grand is going to be about two hundred thirty grand, which is again why you need to be doing something like this, because if you're not keeping up with or beating inflation, you're only falling further behind. Now at the end of a twenty year cycle. In this worksheet, you have taken out two point four million dollars of debt, but that's against fifty million dollars worth of assets. You ever heard this,

I've tweeted about it before. But die with debt. So what you want to do is you want to leverage debt and you can die with that. I die with two and a half million dollars with a debt against twenty five million dollars of assets. So what so what? So we want to leverage debt? This is what the rich do. They don't pay taxes. Imagine when you pay taxes, you lose fifty percent. How much slower your wealth grows versus if you don't pay taxes, and how much faster

it can grow. Now, there's way more advanced strategies on the back of this what I call the velocity of money. But I don't have time to get into all that. We're going to wrap it up here. If you want this worksheet and all the instructions and the videos that goes with it, just go to my website Onemarkmoss dot com, the number one Mark Moss, and you can download it's all for free. It's a free tool for you to

sort of help you plot this out. Now, if you're just tuning in you're listening to the Mark Moss Show. Of course we're always talking about the decentralized revolution, the way the world is changing, and you either get with it and you take advantage of it, or you fall further behind. We talk about it through lens of politics, finance,

and technology. If you're listening on the radio, this is my last radio show, so keep up with me on the podcast at It's the Mark Moss Show on your favorite podcast player or on YouTube tube at Market Disruptors and that's what I got. Thanks so much for listening. Until next time.