The Mark Moss Show Dec 06, 2021

I think you can market on your calendar and know what's happening. But the reality is we're we're in it, we're living it, we're witnessing it. And I think if you can kind of step back and just kind of appreciate and look at some of the signs, um, we're living through a historic moment in time. I mean, I think if in the future, fifty years from now, history books will be written about things that are going on, and if you're not paying attention, it could end up

not being so good for you. But if you are paying attention, it could be one of the best times of your life. We're gonna be witnessing one of the largest wealth transfers in history, and the only question for you is which side do you want to be on the side that gives up your wealth to the side that gets your wealth. Now I already know what side I want to be on. I'm gonna be on the

receiving end, and hopefully you are. For what I've been saying is the largest asymmetric That the largest asymmetric opportunity of your lifetime. And you take advantage of that by having asymmetric information, which is information most people don't have, which is why I need to be tuning in with me each end every week on this channel. So I got some really good stuff today we're gonna be talking about. I'm gonna give you two strategies that could maximize your

returns on your cryptocurrencies. I'm sure everybody likes that. Now. I do often say that, um, the price is a distraction, right, We should be looking at the growth of the network and the development on the network, which we'll talk about. But you know, the price is also good to we all like to see our purchasing power increasing. I like to say that it's a bait and switch. We get baited in by the price and then we get switched

into the power of the technology. So since we're gonna talk about price, We're gonna talk about returns, We're gonna talk about increasing our purchasing power. I want to give you two strategies that you can use between now and the end of the year to make even more money. Now, raise your hand if you want to make mormining. I'm just kidding. I can't see you raise in your hand. But I'm gonna give you those two things, and then

we'll talk about some of the other other factors. So I got a big, big, big show for you today, some important stuff that you're gonna want to pay attention to. So before I do that, I just want to remind you. Go ahead and just pull out your phone real quick. No, not if you're driving, but if you're not driving, pull out your phone real quick. Um, open up your calendar at put a calendar reminder for this channel this time,

and joining me each and every week. It's gonna be the most important part of the most profitable part of your week each and every week. To tune in and pay attention to what we're talking about. So you have the asymmetric information to participate in the asymmetric opportunity. You're listening to the Mark moas show where I talk about bitcoin and cryptogram and seas in the decentralized Revolution each and every week. So what are some of these strategies

that we're talking about. Well, I want to give you two that can really help. Now, you've probably heard the saying that a penny saved is a penny earned. I'm sure you've heard that, right. So what that basically means is that there's two ways to have more money. One you could make more money, or two you could spend less money. Now, I'm not a big fan of living

on a budget. Um, I think the strategy of trying to skip your morning coffee to save a couple of bucks is old and antiquated, and I don't like that. I think it's better just to go make more money, learn to provide more value to the world, or learn ways that you can put your money and do assets that go up and purchasing power. I think that's a much better option than trying to, um, you know, cut back on your morning coffee. So I'm not a big fan of budgeting. However, there are ways that we can

shave enormous costs off that makes us more money. And the number one biggest cost and expense that you have is taxes. Now, Unfortunately, with cryptocurrencies, the I R S decided I think back in the cryptocurrencies were property, all right, So, um, there are an asset. They're not a currency. They're a commodity. And the reason why that's important to understand is because for taxes, you know the saying about taxes only two things in life that are certain or death and taxes,

And so for taxes, cryptocurrencies are taxed like property. Their tax like a commodity. Basically, their tax exactly like buying stock, or buying gold or buying real estate. So if I buy a house for a hundred thousand dollars and I sell it for two hundred thousand dollars, I have a hundred thousand dollars of profit, and I have to pay tax on the hundred thousand dollars. Same with gold, Same with Amazon or Facebook or Google Stock. If I buy a Google Stock and I sell it and I have profit,

I owe tax on that profit. Well, cryptocurrency is the same thing. If I buy a cryptocurrency, it goes up in value and I sell it, I owe tax on the profit. Now, there are a lot of people thought that I was able to you were able to go from one cryptocurrency to another without triggering a taxable event. That's like a like kind trade. Now I'm not a

tax professional. I do want to tell you right off the bat that anything that I'm telling you is not financial advice, and I am not a tax professional, and you should take this information and go discuss it with your own tax professional. So let me just tell you that. But I've been working with my tax professionals for a long time, and so these are strategies that that are commonly known and that we use. But again, go talk

to them, because taxes are very personal. Where we live in different countries or different states or different cities with different taxes. Different income levels, have different tax brackets, we have different types of right off, so it's all very personal. So get your own advice. But two things, right, So, taxes is our single biggest expense, and if we can reduce our taxes, then we can make more money. Right

makes it? Makes it simple. So you sold that proverbial asset, you know, you bought it for a a hundred thousand and sold a two and have a hundred thousand dollars of profit. If you um did that in less than a year. You would probably owe ordinary income tax on that, and if you lived in a state like California, then about fifty of that goes to tax. Also, of the hundred

thousand profit, fifty thou dollars goes to tax. If you live in a state with no state taxes like Texas or Nevada for example, or Florida, you would just sow the federal which is probably about dependent at tax bracker could be. But what if I didn't have to give up that thirty, forty or fifty, Well, then you would have the hundred thousand or closer to it. And so

there is a way to do that. There's there's two main ways that you can do that, and this is what we're gonna talk about today because I want to put more money back into your pocket. So um. The first thing is that because it's acts treated like this, uh, this property, you can't just buy and sell it one for the other. Now again, talk to your text professional about that. But there is something that you can do

today that you can't do with other assets. And the rules might be changed after the after the first of next year, so you kind of have the rest of this month to figure this out before you go into the new tax yere and you potentially lose that. And so what we're specifically talking about is something called wash sales or wash trading, and so what that means is, let's say that right now Bitcoin is down, UM, most of the cryptocurrency market is down right now today off

of its previous high. And it's not down a lot, it's down whatever it is um, but it's down. And so potentially you could have bought bitcoin or some other crypto asset um at its previous peak of say sixty nine thousand, and right now it's at about fifty six thousand, and so you could have potentially lost money. So let's say that you bought the bitcoin at at sixty nine thousand,

right now it's at fifty six thousand. What you could do and again talk to your professional, but what you could do is you could sell the bitcoin right now for fifty six thousand dollars and book a loss. So you're basically going to take about a measure this out for you. You could potentially have about a loss, and then what you do is you turn around and just

buy the bitcoin again. So you bought it at sixty UM, you sell it right now for fifty six thousand, you book the loss and then you just buy it back again. And what you do is you take that loss and you can apply it to other gains. So now when you file your taxes, any other profits that you have, you could use that loss as a write off against that. Now, there's more to this than that. Like a lot of things, if you miss a few pieces of information, it could

be dangerous. So I'm gonna fill you more on that, and then i want to tell you another strategy that um is different, but it can also put a lot more money in your pocket. Now you're listening to the Mark mo Show. If you're just tuning in, thanks for listening. We're talking about bitcoin, we're talking about cryptocurrencies. We're talking about the decentralized Revolution. Trying to give you the asymmetric information that you need to participate in the largest asymmetric

bet we will ever see. I'll be right back with more info on how to save on the taxes, So don't go away, all right, Welcome back. You are listening to the Mark ma Show where we're talking about bitcoin and we're talking about cryptocurrencies, and we are talking about the d centralized Revolution. I know you hear these buzzwords and I don't know what they mean, and web three and decentralized and this and that. But don't worry. It's not as complicated as it sounds. And we'll go through

each piece week by week by week. So make sure you keep tuning in with me. But what we're talking about before the break is we're talking about one of the easiest ways, um and maybe one of the most powerful ways to increase your income is to reduce your expenses. And taxes are your single biggest expense, and so if you can reduce your taxes, then you can increase your income. Right, makes sense. Then back to the as I said earlier, that the penny saved or the dollar saved as the

dollar earned kind of thing. And so we're talking about something called wash wash sale or like wash trading. And so what I was saying before the break is that if you potentially had bought some cryptocurrencies, um, and they're down right now. You know, they're down across the board, which isn't that big for cryptocurrencies if that was the traditional stock market to be a blood bath. But let's say that you bought bitcoin at sixty nine thousand at its previous all time high a few weeks ago, and

right now it's at fifty six thousand. So you could sell it today at fifty six thousand, book a loss, you know, eighteen percent loss or so, and then just buy it back again. So you still own it, but you just sold it and bought it. And the reason why you would do that is because you you took a loss. You brought a sixty nine and you sold it fifty six, and now you can apply that loss, however much it was to any other potential games that

you had this year, so you're reducing your taxbill expense. Now. Typically this is not okay wash sales. Wash trading is not okay to do with stocks. I believe you have to wait thirty days in between typically, but by the time you sell and rebuy again, I think it's thirty days again ask your tax professional. But with cryptocurrencies that's

not the case, at least for now. Now there's a lot of rumors that there's some big, big, big tax changes coming after the first of the year, and this is apparently going to be one of them, so potentially you may not be able to do this again next year. And of course, the tax your closes in uh, you know, less than less than thirty days. At this point, we're in December. Man, I can't believe that the fast time flies. So this is something that you might be able to, um,

you know, participate in and take advantage of this year. Um. And at this point right now, all the prices of cryptocurrencies are pretty much down. At this point, Um, they'll probably pump if I'm here to the end of the year, and so um, this might be one of your only chances to do that. So that's something that you might want to take into consideration. Now, another way that you can also increase your income by reducing your expenses is again reducing your taxes, and that would be to not

sell obviously, right, sounds pretty simple, just don't sell ever. Now, Um, while that sounds super simple, there's actually more to it. Now, by the way, you're listening to the Mark Moa Show, which of course we're always talking about each and every week, we're talking about bitcoin and we're talking about cryptocurrencies, and we're talking about this decentralized revolution. And you know, so obviously, if you don't sell the cryptocurrency and you don't have

any profit, then you don't have any taxes to pay. Right, But what's the point of buying something and having an open value if you don't ever sell, right, what's the point of that? Well, you do it very strategically, and so let me let me give you an example. So depending on how old you are, if you're if you're if you're older, I would say if you're you know, in your late thirties or forties, at least are older.

I'm sure if you look back on your life and thought back of all the assets that you've ever bought or owned, whether it was stock from ten or twenty years ago, you know, Facebook, Apple, Netflix, Google, Amazon, stock, or it was a house that you had bought. Um, I bet you if you could look back on some of those assets and go, dang, if I still own those assets, they'd be worth a lot of money today. Um. And so if you could go back and kind of have a do over, you might want to go back

and just keep those assets and never sell them. But of course you can't. You can't. You can't get to do over like that. But um, what I'm trying to get you to do is kind of go back and realize that because the way that the rich. The way that the wealthy, the really wealthy, the generational wealthy people get rich is to buy trophy assets. Trophy assets are are something that's scarce, their rare assets. They buy these

trophy assets and they never sell them ever. Ever. I say that with dramatic effect and ever and so like look at warm Buffett, right, Warm Buffett Bbot Coca Cola stock in the sixties. I mean he's owned it for you know, sixty seventy years. At this point, you own

trophy assets and you never sell them. Now, if I were to buy cryptocurrency and um, I'm trading it, or I just bought it and sold it, and you and you and you do a transaction within a year, then you're going to pay what's called short term capital gains on that, which is basically taxed the same as ordinary income if you hold the asset. And again this applies to stocks or real estate or gold as well, but if you own them for more than a year, more than twelve months, then you get was known as long

term capital gains, which is much better. It's typically fifteen versus ordinary mun could be. So the first thing you want to do is at least hold it for twelve months to get the long term capital gains. But what if you buy something and sell it within a year, then you're getting hit with that full um, that full

tax built. Now some of you may know, some of you may not that I have been living over in Puerto Rico, been living over on the island, and one of the reasons why I moved over to Puerto Rico is because they have a very very very attractive tax plan. And so basically what what what happened in Puerto Rico is that they went bankrupt. Um. They defaulted on their bonds, They defaulted on their debt, which is something that it's

really bad. You don't see nations do this, and I think they're one of the first nations to do this. But what I liked about what Puerto Rico did is instead of just squeezing all the people more, trying to tax them more, trying to get more blood out of them, more money out of them, instead, they did something opposite that you wouldn't normally see governments do, and that was incentivize people to come and start businesses to bring revenue.

And so if you moved to Puerto Rico and you um start a business that qualifies business that exports services UM, and you can qualify for this Act sixty plan, then you could qualified to have your business all your business income tax at only four percent and you could pay zero percent on cap gains taxes. Compare that to California, where you're going to be paying at the top tax bracket. You're gonna be paying well over fifty percent of your income to taxes and you're gonna be paying thirty five

on cap gains. So by moving to UM from somewhere a high tax state like California, moving to Puerto Rico, it's like getting a hundred and fifty percent pay raise and you're living on a beautif island in the Caribbean. So that's why I've been hanging out over there like a pirate in the Caribbean. It's been a good life. But my one of my longest mentors for twenty five years, I've been reading his books. I'm talking about Robert Kiyosaki, who's now one of my good friends. By the way,

shout out to Robert if he's listening. UM. And Robert has been giving me a hard time lately. As a matter of fact, we were speaking at a conference together, and he was calling me out by name from stage, saying, you know, these people like Mark moss And and Peter Shift, they're moving to places like Puerto Rico. Oh, um, to get out of taxes. Don't they know that they don't have to move to Puerto Rico to get out of taxes.

Don't they know that I don't pay taxes? They obviously don't know, right, And he likes to make fun of me like that, um, And he's right. There are strategies that you can use to greatly reduce your taxes, um, just like the rich do. It's like Robert Kiyosaki does. And it's also some things that I'm starting to do as well, and I'd love to share them with you. So I want to tell you what that is. And

again I'm not a tax professional. You should definitely take whatever I'm saying and take it to your tax professional and discuss it with them and see if it applies to your situation. But you don't know what you don't know, and you don't know how to tell your tax professional what you don't know, and so I at least want

to give you that. By the way, you're listening to the Mark Moss Show where we're talking about bitcoin and we're talking about cryptocurrencies, and we're talking about the decentralized revolution. We're facing the greatest wealth transfer that we will ever see. And you can decide you have a choice. Do you want to be on the receiving end or do you want to be se be on the giving end of that wealth transfer? Of course I know what's side. I want to be on. Uh and hopefully you want to

be on the receiving end as well. So we'll be right back telling you how to save money on taxes. Don't go away, all right, welcome back. You are listening to the Mark Moss Show where we're talking about bitcoin each and every week. We're talking about, of course, the cryptocurrency move. We're talking about the decentralized revolution, and I'm trying to give you the information that you need to really participate to really take advantage of this. Damn. It's

a big subject. It's a deep subject. There's so much to learn, and really, you know, you really have to know about at least six, if not probably eight different disciplines to really grasp what's going on. You need to know about um money, right, and most people think they know what money is, but most people don't don't know what money is. You have to know about monetary history,

you have to understand economics. You have to understand philosophy, you have to understand game theory, you have to understand technology. I mean, there's so many different things you have to understand. I know, you know, I've been teaching. I've been researching and writing and teaching and using cryptocurrencies now for about seven years. And a lot of my friends you know, obviously, I know that I do this, and sometimes I'll get asked by by people on social media or even people

that I know. A couple of months ago, I was down in Mexico and we're out to dinner and one of my buddies at the table said, hey, Mark, explain bitcoin to me like I'm five years old, And in two minutes. I just looked at him and I laughed, and I'm like, dude, like sorry, man, Like I can't, Like I can't explain to you like you're five, Like you're five years old, and in two minutes. It doesn't work like that, Like if you're not willing to put the time in the effort into understand it, like you're

just you're never gonna make it. That's a symptom of the world that we're in today. A lot of people, UM, you know, I'm taking a lot of a lot of information distilling it for you on this radio show, in these podcast asked or you know, I do it on my YouTube channel, and people look at a YouTube video and oh, markets twenty minutes, can you can you make it shorter? And it's like, really, I'm taking like a PhD lesson and distilling it down into twenty minutes for you.

And if you can't take twenty minutes out of your day to figure that out, like, you're never gonna make it. And that's what we have going on in the world today. Like people, um, they see the headline and they don't even bother to read the article. And because of course, you know, with the way the media is today with their clickbait, um, the headlines rarely um tell you what the article is really about. And so if you're all you're doing is reading the headline, you're probably missing out

on on the real story. Um. And so anyway, you know, bitcoin is a deep subject and you're gonna have to um put some time in to figure it out. One of the big problems that I see is especially it seems to plague um, smarter people more, especially people smarter people that have a lot of knowledge about economics or the financial system. It seems to plug them more because they're just kind of like, oh, yeah, yeah, yeah, I get it, I get it. I get it. Sure. Sure,

It's like, no, you don't get it. They want to grasp it. Um, they think they can grasp it so quickly, whereas really the people that kind of come in with no prior knowledge of that stuff seemed to almost get it easier because they don't have to untrained themselves or

unlearned everything that they've learned before. So anyway, um, you know, we'll be talking about a lot of different subjects from a lot of different angles, so you can start to kind of figure this out each and every week, and I try to give you kind of, you know, one

good teaching lesson. Now. By the way, you're listening to the markma Show, we're talking about bitcoin and cryptocurrencies and the decentralized revolution, and um, we're talking about ways that you can increase your purchasing power by increasing your US dollar value of your cryptocurrencies. And one of the ways that you do that is by cutting your expenses, obviously um and and and taxes being that single biggest expense.

So I was talking about how my my my mentor and now my friend Robert Kiyosaki has been calling me out from stage. As a matter of fact, I was on his podcast, UM the Robert Rich Dad Radio a couple of months ago, and he started at it again, any saying, why why do you have to move to Puerto Rico to get it? You know lower taxes, don't you know? I don't pay taxes. And what he's what he means by that is that he doesn't sell assets to generate a profit. And if he doesn't generate a profit,

he doesn't have to pay taxes. So what what he does instead is he borrows against the assets, and that's not a taxable event. So, for example, you bought a piece of real estate for a hundred thousand dollars, you're renting it out. You're making a little bit of profit every month. You're making a couple hundred bucks a month on the rent. After you pay your mortgage off and things are good. You've owned it for several years, five years, ten years. Next thing, you know, the house worth two

d thoud dollars. Now you have two choices. One, you could well have three choices. I guess one you could do nothing, but but you could sell the house and you would owe taxes on the profit. Um. So you sell it for a hundred dollars, you know, you you bought it for a a hundred thousand, for hundred thousands profit, and you have to give let's say, you know, thirty

forty grand of that to the government. Or what you could do is you could rEFInd nance the house or take out a home equity line against the house, and you could just pull equity out of the house. And that's not a taxable event. So now I can take the Huntergrund out of the house through some sort of a loan, and I don't have to pay tax on the Huntergrund and I still have the house. I didn't have to sell the house. And so that's what that's

what the rich do. They find trophy assets. Trophy assets are scarce assets that are going to continue to go up in value and they hold them forever. So the people that bought, you know, man a block of Manhattan real estate in New York, right for example, and they just passed that down from family, you know, generation generation generation. They just never sell it. It's a trophy asset right now.

If you're in the middle of of of I don't know, North Dakota or Kansas or whatever, maybe it's not as scarce. But in Austin, Texas, for example, like Lake Travis Um, there's only so many homes around the lake, very rare, very scarce. And you have all these fortune companies moving Silicon Valley to Text to Austin, and those people make fifty million or a hundred million dollars a year or whatever they're making, and they don't care if that house on the lake is one million or two million, what

do they care. I don't care if it's five million or ten million. They're making fifty million a year, right And so we've seen I have a buddy down there and he bought a house on the lake a year ago for ten million and recently sold it for twenty two million in one year. Because it's scarce now, it would have been better if you didn't sell it. And so that's what I'm talking about, a scarce asset. And that's what cryptocurrencies are, right Bitcoin there's only twenty one million.

There will never be more than twenty one million um when you calculate in what's been lost, which there's no way for us to know, but you know, some reasonable guestimations say that we'll probably really never have more than seventeen or eighteen million bitcoin in circulation because so many have already been lost. But let's take the full number of just twenty one million. Today in the world, we

have over fifty million millionaires, over fifty million millionaires. There's only twenty one million bitcoin, So there's not even enough bitcoin for all the millionaires to even own half of one. That's how scarce it is. And then you guys got You got guys like Michael Sailor from the CEO of micro Strategy, who's bought over a hundred thousand of them. He's taken a hundred thousand for himself, So there's a no, there's a hundred thousand more millionaires that can't ever get

any bitcoin. That's how scarce it is. And so you can buy it. You can buy a trophy asset like bitcoin that's scarce, and you just own it forever and you don't ever sell it. If I don't sell it, I don't owe taxes on it, and I still have the ast to cope and value and that's great. But Mark, why would I buy an asset that all goes goes up in value and I never sell it? How do

I unlock that profit? How do I use it? Well, there's a very simple way to do that, just like the house example, like Robert Kiyosaki talks about it, I can borrow against my bitcoin. I can take a loan against it, and so I would Basically, you know, my my bitcoin went up. I bought it for ten thousand, it's worth sixty to day, I bought a hundred thousand dollars worth a bitcoin. It's worth um, you know, three

million dollars today or whatever. And instead of selling let's say that I wanted to buy a house, I needed five hundred thousand dollars down as a down payment for

the house. Instead of selling um a million dollars of bitcoin and then paying tax on it, not having the million dollars bitcoin anymore, paying attacks and then then I end up with my five thousand, what I could do instead is just borrow the five thousand dollars against it, five dollars against it, and I don't have to pay the tax, and I still have the million dollars worth of bitcoin to continue to go up in value. See how that works? Now, I know now you have to

pay interest on the loan. How does that work? Um? How I mean, how can you continue that going forward? What happens with the debt eventually? I mean, these are all great questions. These are all great questions that I want to answer for because it's actually pretty simple. Um,

that's a pretty simple plan. And I have a formula that I've broken down and I'm gonna lay that out for you, and I can tell you how much what we're expecting in the future, how much you can borrow, how you manage that payment, and what you ultimately do with the debt. Like I said, it's not that complicated, but you kind of have to know the strategies. I

want to break that down all right now. By the way, you're listening to the Mark Mass Show, which, of course, if you're just tuning in and you don't know, we're talking about bitcoin, we're talking about cryptocurrencies. We're talking about the decentralized revolution that is going on that we're living through, that we're witnessing. Let's kind of bring massive massive, massive hope and prosperity to the world. UM and it likes that the world has never seen it's gonna be that big.

So I want to talk to you more about how we can hold those trophy assets, never sell them, but still unlock the profit out of them. So don't go away. I'll be right back, all right, welcome back. You are listening to the Mark Ma Show where we're talking about bitcoin and we're talking about cryptocurrencies, and we are talking about the decentralized revel lution we're living through right now.

And I've been talking about ways that you can increase your money, increase your dollar stack, increase your purchasing power and UM the high level. To catch you up if you're just tuning in, by the way, thanks for tuning in. Make sure to bookmark me at this time in this channel so you can come back each and every week, which will be the most profitable part of every week that you that you have. UM. But just catch up

real quick. I was talking about how the way that the wealthy really build wealth, the way that they really build UM, you know, get rich for generations, is they buy trophy assets and they just never sell them, Like Manhattan real estate or lake front property in Lake Travis in Austin, Texas. And they buy trophy assets and they just never sell them and they pass them down to from generation to generation. And if they want to get some of the money out to buy something else, they

can borrow against the asset. Now, this is not new to cryptocurrencies. Um. You can borrow against your house and pull equity out of your house. Most banks, like else Fargo, will loan you money against your stock portfolio. Um. Certain stockbrokers like Interactive Brokers for example, will loan you up to against your stocks in your account. UM. And you can borrow against your bitcoin too. Right, It's it's an asset. You can borrow against pretty much any asset that you have.

It's not it's not new and unique to cryptocurrencies. A lot of people, UM, when I've explained this to them, they're like, oh, Mark, the governments will never allow you to continue to borrow against your bitcoin. And it's like really, because you can borrow against any asset, like you pledge the asset as collateral and people oan your money. I mean,

it's just not it's not a new concept. But for some reason people think it's a new concept of this, but it is a new strategy you can apply, and it's one that you should apply to trophy assets like bitcoin that are that are very scarce. And so going back to this UM example, what we're doing is is you're buying the bitcoin. As I said, if you if you bought some bitcoin, you bought you know, a hundred thousand dollars worth about now it's worth you know, a

couple of million bucks. You want five grand to put down on a house. You could sell you eight hundred thousand a million dollars with a bitcoin, pay your taxes on it, and then end up with the five grand. But then now you don't have that million dollars bito anymore. Or you could just borrow the five grand against the bitcoin, don't pay taxes because it's not a taxable event um, and then you still have the million dollars a bitcoin to go up in value. Now, there's a few strategies

to this. Now, the first thing you have to understand is um, you obviously have to understand bitcoin and you have to believe that it's going to continue to go up in value. UM. If you borrow against it and it goes down in value, then they may liquidate some of your your bitcoin because you've pledged it as collateral.

They may liquidates, they may sell some of it to pay off some of that debt, which isn't in the end of the world, because it would have been no different than if you would have sold it in the first place, right, So you're not really any worse off. Um. However, I believe that bitcoin is gonna continue going up, and so let's talk about that, and then we'll get a little bit more into the strategy, because you kind of

have to understand this a little bit better first. So so far, bitcoin has been the best performing asset in the history of the world. It's averaged about a two hundred percent compounded annual growth rate for the last eleven years. UM. A lot of people think bigcoin is volatile. The price goes up and down, and it's it's not a good store of value, many people say. And they say it's not a good store of value because it's so volatile,

the price is always going up and down. But the reality is if you zoom out and you look at it over a long period of time, and you look at the lowest price every single year, the lowest price, it's ever reached. Each year, you'll see that every year the lowest price has been higher than the year before, except for one time is the only year that the low was lower than the year before. That's the only year out of all the years in history, it's always

been up. Now, it goes up and down within the year, but it's always continuing to march higher. Now. I bet you would have been wished you would have been listening to the show a long time ago, because I've been pounding the table telling people to buy a bitcoin since it was like three four hundred bucks. Some of my friends I was telling to buy it a four thousand, five thousand, and then it dipped to three thousand. They

got mad at me. I'm like, look, guys, zoom out, like, I know, you bought it at four thousand and went to three thousand, and you lost your US dollar value. So what it's gonna be worth a lot of money one day? Uh. And so some of them got mad and they sold and you know whatever, but they were mad at dropped to three thousand. I mean, how lucky or how how happy would you be to buy it three thousand when it's sitting at fifty six thousand today.

So the first thing you have to understand is that, yes, it's voluntile, meaning in the short term it goes up and down a lot, which is why I say it's kind of a distraction. But if you zoom out, it goes up. Now can it what rate can it continue to go up at? Well, if you were looking at any asset and trying to understand how much value can accrue, you look at what markets is disrupting and how much

of that market share can it pull in? And so I would say that very easily we could see it getting into five hundred thousand dollars per bitcoin in the next five years. That's based off some super simple calculations. Like right now, we're starting to see as I mentioned micro Streight, a G SMP five companies like that moving part of their treasury. They're they're savings into bitcoin um. Some of them are putting in bitcoin UM. Cathy would from ARC Finance, our ARC, the e t F, the

tech at e TF. She said that if if the SMP five companies would just put only five per cent of their savings into bitcoin, we can see the price shoot up to five d So I think that's I think that's totally possible. Um, that's a ten x roughly a ten x from here in the next five years. But but but that's that's only the beginning. Um. Then it can start pulling in you know money, you know, value from currencies from gold goals about thirteen trillion dollars.

It can take all that thirteen trillion dollars. That's a thirteen x from here. Um, we could see it start pulling in money. There's there's a thirty to forty trillions in a off four bank accounts right now. Is definitely better than an off for a bank account. So we

could see a pull in thirty to forty trilling from there. Uh. And then then you have a lot of people that have been buying real estate, for example, because they know their currencies you know, devaluing super fast, and so a lot of people would probably rather not have to buy real estate and they might rather buy goldspeople pull something from that, pull some from stocks. A lot of people are gambling the stock market. It could pull money from that.

I mean, it could very easily get to three million dollars um. You know, as as a as a market cap for the whole market cap, which is a two to three x from here. And so obviously nothing in life is guaranteed. UM. And and that's certainly not a d certain that that's going to happen, but but it but it could. I mean, that's the trajectory that we're on. And so UM as long as it continues going up

more than the rate you're borrowing. So for example, if you were to borrow let's say five percent, so you let's say you have a hundred thousand dollars worth a bitcoin today, you leave that parked maybe in the next five years, that's worth three million bucks. In three million US dollars um, you borrow let's say five percent of

that UM. And you you know, with a hundred thousand dollars, you borrow a little bit extra to cover the interest, the payments, and you have some set aside for the payments, and then you have a hundred thousand dollars you can just live on. You can pay your bill, pay your living expenses, and live off that money and it's tax free. Now, UM, you borrowed five percent. Now, as long as it goes up by more than that the next year, you do

the same thing. So if it goes up another fifty percent, the next year, then you borrow another five percent, and you borrow a little bit extra, some pays pays off the loan from the year before, and then you live off the rest and there's no taxes because you're borrowing money.

And then as long as it goes up by more than five percent the next year, which it goes up by the next year, you borrow five percent again, and as long as it continues going up by more than the amount you're borrowing, you can essentially do that forever. Pretty interesting, right now what happens with the debt? Eventually,

when nothing happens with the debt, you die. You die with debt at the end when you die and you pass it down to your kids, you end up with ten million dollars a bitcoin and you owe two or three million dollars of debt. So what just keep rolling the debt? Now you could obviously liquidate some and pay the debt, but now you don't have that asset to

keep going up in value. And so eventually, you know, your kids when they're old, they have thirty or forty million dollars with a bitcoin and they owe seven million dollars a debt, So what right, you can just keep rulling it over and over and over. And I know this is a different concept, and I know it probably blows your mind. Um, but it's not that complicated. This is how people do it. This is how the rich really build wealth, and you can too. I like to

say that success leaves clues. What does that mean. That means if you find other successful people and you can figure out what are the things that they did to become successful, and then you do the same things, then you should have about the same results. Right. So that means if you if you if you um at a at a young age, if you got um an Arnold Schwartzenegger's work out and diet routine and you did the exact same workout, exact same food as you grew up, you may not be quite as big and strong as

a Honlord Swartzenegger got and broke all those records. However, she'd be pretty dang big, right, And so that's what I mean. Success leaves This is what the successful people are doing. This is what people like Robert Kiyosaki are doing, and this is something that you can do as well. Now you listen to the Mark Moa show. We're talking about bitcoin and cryptocurrencies and the decentralized revolution. I am a teacher, I'm an educator. I am not a tax professional.

So take this information and go discuss it with your tax professional. See if it's right for you, See if he can help you implement that. But it is being done by the people. Thanks for listening.