The Mark Moss Show - The Volatility of Bitcoin

we are witnessing the world change right before our very eyes. Man, I know I say it a lot, but I just I'm just continued just to be impressed by just you know, the old Vladimir Lyndon quote of um decades where nothing seems to happen, and then decades or days where decades seemed to happen. And that's exactly kind of where we're living through. You know, I've been talking about bitcoin and cryptocurrencies basically full time since like two thousand and sixteen.

I got into it in and once I kind of really understood what it was. Well, I'm still trying to figure out what it is. For all of you guys that think you already know what you're talking about, I'm still trying to figure out what it is. But when I when I kind of thought I had understood what it was, I was like, dang, I gotta I gotta tell the whole world about this. So I guess well, let me let me tell you my story real quick.

Maybe I don't know if I've done that before. So, um, you're listening to the Mark Moa Show, and I'm talking about bitcoin of cryptocurrencies, and as will tell you my own little experience here. So you know, I, uh, let's say that I had become pretty disillusioned with the financial system and the political system after the two thousand eight Great Financial Crash. It was devastating for me. UM. I lost a lot of money. I pretty much got wiped out. I then had to go and try to figure out

what this whole financial system was about. As I started to dig deep into that and try to learn that, UM, I became, you know, very disillusioned with the system, to say the least. UM and I and I figured out that the problem was that we had this inflationary monetary system basically where the FED can just create unlimited amounts

of money. And if we could go back to something like the gold standard, UM, where we had sound money, hard money, hard money or sound money, meaning that uh, nobody could just go create more of it, right, get a limited amount. If you can go back to something like that, then that could solve a lot of the problems when I became this goldbug, and um, you know, moving forward, I became this gold bug, and I started, like I said, very disillusioned with politics, to the point

where I kind of wanted to just ignore it. I was like, you know it, it doesn't do me any good to pay attention to this. UM get all excited by it. Politics gets a lot of dopamine released in our bodies. That's why we get really addicted to it. But I said, it's kind of a waste of my time. My vote doesn't count. UM, nothing I can do is gonna change anything. I'm not connected enough to be part

of the inside. UM, So my goal would just be to move away to Central America somewhere I live on beach, surf and fish and just you know, I don't want to be a freedom fighter. That's why I told my wife, I don't want to be a freedom fighter. And I was. I was subscribed to this newsletter shout out to Sovereign Man. If and you guys ever heard that, and if not,

you should check it out. And I subscribed to this newsletter called Sovereign Man, which is a newsletter that talks about being exactly what the name says, which is being you know, a sovereign man, sovereign Um. The way that I look at sovereign is sovereignty is being able to direct my life as I see fit in a way that leads to my own ends. So I'm not being coerced like a coercion would be. Um, I'm forced to make a choice that leads to somebody else's end. So

for example, take the jab or lose your job. Well, either choice I make leads me to your ends, it doesn't lead me to my ends. So sovereign tya means I can make my choices that leads me to my ends. So a sovereign man being a being a man that that can control my destiny if you will. And he made he made the very compelling case that you wouldn't put all your money into one stock, would you write or one investment? Of course, the answer is no, And

why wouldn't you do that? Well because of risk. And so if you wouldn't do that, then why do you have your whole life in one country? M hmm. It's very compelling argument. I had to think about that and the answer is, well you maybe shouldn't. Especially um at that time, this is back. You know twenty thirteen, fourteen fifteen that I was kind of reading this and thinking

about this. Of course it's never been more more true and real today is something that I spent a lot of time and so what I'm pounding the table onto something called financial sovereignty, which is a financial freedom. But then you use that freedom to have I'm sorry that financial financial freedom part to have more sovereignty and more freedom. So financial sovereignty, that's what I like to focus on. Of course, if you're tune in on a regular basis,

then you know that that's what I talked about. We're making money, We're working on our freedom, more options to deal in the world of uncertainty. If you're not tuning in on a regular basis, then you should so make sure to put a calendar reminder for this date at this time this channel and joined me each and every week. And if you want to know more about financial sovereignty,

I care about it so much. Not only do I talk about all the time, I actually started an event just to focus on financial sovereignty and help people learn more about it and have more money and freedom with same time. You can check that out of market Disruptors Live dot com. We're actually having our our second annual

live event coming up next month. Be awesome to come out and meet some new people, make some new friends, meet, meet and greet me and some of the best speakers in the world to talk about how to make more money, build, grow, protect your wealth, as I like to say it. So market Disruptors Live dot com check that out. But so I was on this path for sovereignty, and I was he makes the case that why would you have your whole life in one country? And so we're in a

digital aige. You can have multiple flags and multiple countries, and so why not have bank accounts in other countries? In that way, off your bank in your country sees your bank accounts here, you have bank acounts otherwhere. Why not have gold stored in other countries? Why not have

multiple passports and these types of things. And so I was actually in the process of um setting up a corporation in Panama, so I could set up a trust in Panama, I could open up a bank acount of Panama, put about seventy five thousand dollars at the time back into the bank account and one it would earn very good interest. I think at the time I was paying like seven percent interest in the bank, which was pretty

pretty good. Especially considering today's terms it's at zero. So I'd make like seven percent of my money, which was pretty good back then. Um, well, it's good right now to UM. And then the best part is then I would get residency. So then I can get residency, and then after several years I think it was five years, I could actually get UM citizenship. I can get a passport. If I would have done that, I would have my

citizenship by now. But but I didn't do it. And the reason why I didn't do it is I took another look at bitcoin and it has been coming across my desk for a while. I've been in the tech space and the internet space for a long time. I started internet business in two thousand and one at the bottom of the dot com crash, and I've been on the internet ever since since. So I'm a tech guy,

I'm an investor. And so it had come across my desk many times and had ran up to like a thousand dollars and then it had dropped back down to like a couple hundred bucks, and I was like, maybe not, but I took another look at I bought it. I'm like, this is the same thing. It's like getting my money out of the bank, which is what I was ultimately trying to do. So I bought bit and once I found out about it, once I once I put some in what we call it putting a little skin in

the game. Once I had a little skin in the game, I had a little bit of bitcoin, and then it encouraged me to start learning more about it. And as I started learning more about it, I started to realize, like, we actually have a tool that we can win with, Like this is something we can do. And so I have to tell everybody in the world that I know

about it. And so I did. And as I said, where I started the story is I've been talking about bitcoin, uh and cryptocurrencies and this decentralized revolution now full time since about and the reason why I say that is um bitcoin and cryptocurrency has had this amazing run seventeen. Bitcoin started the year twenty seventeen and a thousand dollars and finished the year twenty thousand dollars amazing at twenty

return in just a year. UM. But then in December, seeen it had this spectacular blow off top um and dropped all the way back down to three thousand and everybody was mad and upset and sad and what I room? And then nineteen happened and there was like nothing going on and there was like nothing to talk about, Like it was literally like this long cold winter, and I went for like a year and it's like, man, what

can I even talk about now? And I'm like starting to talk about like just more like general business stuff. Maybe I talked about a little bit of like personal development stuff, like it's boring around here, what the heck is going on? And the reason why I say that is because there's decades where nothing seems to happen. And in that case, there was a couple of years where nothing seemed to happen, and here we are now there's

days where decades seemed to happen. And so today it's like every day there's like multiple stories I need to be talking about, which um. By the way, I'm thinking about starting a daily podcast and a daily YouTube show. If you're not following me on YouTube, you shop Mark Moss. I got a lot to cover today because there's so much that happened, So do not go away. I'm going to be right back. All right, welcome back. You are listening to the Mark Moss Show, and we're talking about,

as I said, bitcoin and crypt occurrency. You know, we're talking about this decentralized revolution, um that's sweeping the world. Before the break, I was just talking about how sometimes you know, decades where nothing seems to happen, and here we are where everything seems to happen. And I'm talking about this, you know, on a daily basis, about this decentralized revolution, that's what That's what I call it. And

I've been talking about a lot. If you haven't heard about these three revolutionary cycles that are converging, and do you hear a lot about a lot of people talking about different aspects of this. So, for example, Ray dalio Um one of the smartest investors in the world, the founder of Bridgewater Capital, the largest fund in the world. He recently wrote a book called The Changing World Order. It's an amazing book. I highly recommend it. Um. It's

a big book. It's thick book with tons of charts, tons of data, and he really outlines a bunch of things, including you know, these long term debt cycles. So really he focused on like the financial revolution aspect about every eighty years the financial um the financial system is reset and he really and he really talks about the rise and fall of empires and it's great. Again, highly recommend it.

I like to take that. So there's this eighty year financial revolution cycle and then look at it with a tune into your political revolution cycle, UM. And then your revolution cycle is basically like a pendulum that swings back

and forth and UM. On an your time frame, we move towards globalization or centralization, where things get more and more centralized, more central government, more central banks, right w EF, World to Health, World Economic Form, World Health Organization, World Trade Organization, the I, m F, the U N, et cetera. These central entities taking more and more control over our lives. So the world has been swinging that way, and now that pendulum is maxing out, it's ready to swing back

the other way. So's something I've talked a lot about. If you want to learn more about that, you can just search Mark Moss um three cycles something like that. Go to go to YouTube search of Mark Moss three cycles. You'll see that UM. And So really, if you look at it's like I said it on a tune and fift year time frame and sort of like the four

seasons of the year's you know, summer, spring, winterfall. On the calendar, there's an exact date that that season switches, but that doesn't mean the weather changes that exact day, right, So it's kind of like plus or minus a little bit. And so that's kind of how these cycles are as well, about every eighty years eighty four years, right about every two and fifty years, and so if you kind of have this range, and so that's kind of where we're at.

I think this range really started about twenty seventeen seventeen and it ends about twenty So that's kind of this we're in. We're in this where the where the pendulum is maxing out and then swinging back the other way, and so as it maxes out and swings back, it's in that range, right, So that's kind of where we're app And so it really started with Brexit, righten brexit um. That was Britain trying to break apart from the EU. Right So the EU was massive centralization, just centralized the

whole continent of Europe right um. And then Brexit was like, hey, we don't want to be part of that big central force a name were let's break apart. Um. Donald Trump getting elected was was another symbol of that, right was rejecting the status quo. Hillary Clinton was would have been more um centralization, right, she was part of that status quo. Uh. Trump getting elected was the symbolization of that pendulum swinging

back where people are saying, no, we don't want that anymore. Um. The the yellow jacket protest in Paris, you know, was that And so we see this and here we are now today, two thousand twenty two, and we are at the climax. I mean, it's it's the climax. The pendulum is rapidly starting to move the other way. And uh so much that you know, this Russia Ukraine war is

really exaggerated this. And Larry Fink, the CEO of Blackrock, the largest asset manager in the world, about two weeks ago, came out and said, this is the end of globalization. It's that big so um, Like I said, you can watch those videos if you want to know more about that, just search Mark Moss and three cycles on YouTube. But um, what I want to talk about today was more like, what what would deglobalization mean for the financial markets? What

does it mean for inflation? More specifically, what would it mean for bitcoin? Something I wanted to talk about I think I thought to be pretty interesting, especially seeing as here we are witnessing all of this happening right here before our very eyes. So what would it mean for bitcoin? What would it means specifically for bitcoin's price? I think that's what a lot of people want to know. I don't typically talk about price a lot because I think

it's probably the least interesting aspect of bitcoin. Um When you're looking at a new technology like bitcoin, a technological revolution, Really, the way that you want to look at it is you want to look at user adoption, use your growth. Are we getting more users on the network, and two are we having development on the network? Those are the most interesting things. The price, the price will get there um. The price of bitcoin is very volatile. What does that mean?

It goes up and down a lot, up and down, up and down, up and down. Now, volatility, for some people say it's a bad thing. They say, how can bitcoin never be used for a store value? It's too volatile? But volatility is a good thing and it's a bad thing because volatility works both ways. Up and down. If it never went up, the bitcoin would just always be at zero. It would never go up. You can't go from zero to forty dollars in UM, you know, twelve

years without volatility. So that's just the price that you pay. The way that I like to look at volatility is it's the It's the difference between perception and reality. So what do I mean by that, Well, the reality is is that the bitcoin network itself is and bitcoin technology. The reality is it's growing. We're getting more users, we're getting more adoption. Billionaires are now using it as a reserve.

Fortunate companies are now using it as the reserve. Countries like El Savador are now using it as their reserves. States in the United States are starting to now accept payments and fees in it um. Other governments like Mexico now have put laws into the effect to put it as legal tender in the in those countries as well. So the network is growing, the network effects, more people are using it, and at the same time we're stealing more and more mind share. So we have some of

the best and brightest people. I mentioned Ray Dalio's Bridgewater Capital. The CFO left Bridgewater Capital to work for a bitcoin company, we're stealing massive amounts of mind share. At the Bitcoin conference last week, we had Jordan Peterson come as one of the headliners. Now he's probably one of the smartest intellectuals in the world today and he's at the Bitcoin conference. So we're just this, we're this, this amount of mind share. It's just all being sucked in. So the network is

growing rapidly um and the mind shares growing rapidly. That's the reality. The perception, though, is the volatility. So what happens is people see these moves and they get so excited they start pushing the price up. And the price goes up how higher and faster and further from reality than it should be. People think it's it's it's it's

it's guaranteed, it's gonna be here tomorrow. Everybody buy in, right, and so their their perception gets over exaggerated, and then people go, well, you know, it's it's it's not that big, and then it starts selling off, and then it gets oversold, and then it it goes below reality. But reality, I mean, if I was drawing this out for you on a piece of paper, if I had reality moving at like a forty five degree angle. Right, it's it's moving on

upward trajectory. More users, more adoption, more mind share, more development. Right, that's the reality. The perception goes up and down like an s across that line gets overvalued and then it gets sold off and it's undervalued, and then it goes back to overvalued and undervalued. And that's good thing. And it's also our opportunity because if we understand this, then we have an opportunity to get in and play these little things. Now I'm not a trade or I don't

recommend that you trade it. But what happens is when it gets over sold and it snaps below what we believe that reality to be, that's our chance to buy in. And so it gives us that opportunity. But uh, as I talk about price being not that that interesting, I don't talk about that much. Here. We are talking about the price, But I want to talk more specifically about what would what would this whole global deglobalization mean that we're going through the rush of Ukraine wars exaggerating. Larry

Think says it's in the globalization. The pendulum is swinging back from centralization to decentralization. Deglobalization, what does it mean for bitcoin? And more specifically, what does it mean for bitcoin's price? Um As things have glows as we've moved towards globalization, people have enjoyed lower costs right from the expansion of free trade, um offshoring labor, having products made overseas. And as that unwinds, what happens to bitcoin, what happens

to bitcoin's price. I'm going to talk about that and more. You're listen to the Mark Moa Show talking about of course bitcoin, cryptocurrencies and the decentralized during this point, the d globalized world that we're moving into. Super fascinating to be to be living through this right now. That's the point where literally history books will be written. And if you navigate this correctly, it could be the biggest opportunity of your life, which I think it is. I think

it's the greatest risk adjusted opportunity we've ever seen. But you have to understand what you're seeing and that's what I'm here to say to tell you, So don't go away. I'm gonna be right back with more. All right, welcome back. You're listening to the Mark Moa Show. We're talking about bitcoin, cryptocurrencies, the decentralized revolution. Of course, we talked about each and every week. Um, we talked about each every week because

it's the biggest thing happening in the world. The world's changing as we speak, and it's going to be It's not gonna be good for most people that aren't paying attention, but it could be the biggest opportunity of your life if you navigate it correctly. And of course that's what I want for you. That's what it is, has already been for me, and and it will continue to be and I want you to be a part of that.

So we're talking about the globalization. I was talking about the price of bitcoin being the least important part, but talking about globalization and what does it mean for bitcoin's price because we have all these catalysts going on in the world. We have massive inflation, and people are like, well, shouldn't this be good for bitcoin? Then why isn't the price of bitcoin going up? And people aren't able to figure that out, and then we have this deglobalization and

shouldn't that be helping, right? I mean, if the dollars dying, shouldn't bitcoin be the beneficiary? So I want to talk

about that. So obviously, what's setting this up I was kind of hinting to is is history tells us right on your time frame, we max out on globalization centralization and the world pushes back or the pendulum swings back to decentralization or deglobalization, and so, um, you know, if the pandemic seems like a black Swan event, or um, the rush of Ukraine war seems like a black Swan event, it's not. We already knew that right now we would

be rejecting globalization and moving back to deglobalization. And that's exactly what's happening, and we're watching it unfold like we knew it would. I've been talking about this for over a year and a half. You can go back and study that. To go back and check out my YouTube channel, just search Mark Moss three cycles you'll find that information. So, um, we have this geopolitical crisis ress Ukraine, and what's happening is over the last I mean really two and or

fifty years. But really, if we just look back over like the last fifty years, the United States and really the world has been globalizing. So we've been starting to work more with each other's countries. We're having more products. The United States is offshore, and a lot of the manufacturing base it's having products made in overseas and Asia, things like that. UM. We're getting these interconnected systems that UM tie everything together, supply chains, UM, you know, shipping lines,

all these things. And what that's allowed for things to do is for UM, as the world gets more connected, it's allowed things to get cheaper. So we took a fifty tho dollar a year job that was in the United States and now it's eight thousand dollars over in India. We take a hundred dollar electronic part that was made in the United States and now it's made for eight

dollars over in Asia or something like that. And so what's happened is, especially over the last fifty years, is we've had this globalization which has brought prices down at the same time as the central banks around the world have created trillions of dollars. So creating trillions of dollars is inflationary. That inflates the monetary supply, which then pushes prices up. But as it's been doing that, the world

has been globalizing, which has been pushing prices down. And so it's been able to hide a lot of this, but as we start to reverse that, they're not going to be able to hide that. And we can see that. Um, you know, since the fall of the I mean, like I said, if you want to look at like the last fifty years, it's really started the fall of the Soviet Union nineteen. Any one really started that. Um. But it's been happening for a long time, faster and faster

and faster. And now economists think that, Um, as this starts to break apart, doesn't take an economist to figure this out. Um, to make certain commodities or products, it's going to become more expensive. Doesn't take a genius to figure that out. Right, Uh, if if if if it was a hundred dollars to make in the US, and then there was eight dollars to make an Asian now have to make in the US again. Of course it's going to be more expensive. It's easy and um if

we have to onshore all this labor again. And I so now I used to pay people eight thousand dollars over the season, have to pay them fifty in the US. I'm gonna have to charge more for my products, just the way it is. And so while we've been enjoying these lower prices that might be over, the trend is reversing, so to speak, because, like I said, the end of this globalization, we can't we can't trust each other anymore. We can't trust each other with the with the with

the financial system. Um. You know we have and even before the Rush of Ukraine thing, we had the the U. S. China trade war that broke out and that worsen, you know, with with the global what it's called the coronavirus pandemic um. Then that started straining supply chains. You hear a lot about,

you know, the bid administration, tendues. Inslation is happening because supply chain supply chains, right, and so started with the US trying to trade war, then it went into the pandemic, and then of course now we have the Rush of Ukraine war, which none of them are black swans, right, this this is all predicted, um. And so we've seen that exports are getting choked off in some cases, you know, we can't get enough parts, which then mains prices go

up even more. But this is all part of the globalization. But what is the economic impact of them? So as global trade and many goods of commodities get disrupted even further, then end product prices will continue to rise and contribute to inflation. Right, what we've seen just so far from the rush of Ukraine war is causing shortage of oil and gas, which turns out we need those things. Unlike a lot of people thinking that we have already built

up enough. Um they call it renewable energy. I like to call it unreliable energy because the wind doesn't always blow and the sun doesn't always shine, and so it turns out we don't have wind and solar built up like they told us that we did, and turns out we still need things like oil and gas to survive. I've not only we need oil and gas to like move our cars and our planes, which of course move our food. We actually need it for the production of food.

So we need the natural gas to make the fertilizer to make the crops. And guess what, we still need food. And so now we're having shortage of oil and gas, and that means we're having short shortage of food, food shortages, food crisis. Really Wheat, nickel and neon we need those for you know, electronics, all sorts of goods. We're starting to see that we're having shortages, which is pushing prices up. And uh, those kinds of shortages of course supply and demand.

We go shortage of goods and then that pushes the prices up, leads to price pikes at the same time, you know, more supply chain issues cause more price spikes than it's this it's this vert vicious cycle, if you will. And turns out the central banks are good at printing money, but they can't print more oil or natural gas imagine that, which is pretty interesting. So there's really not a lot

they can do. Now. They could go print a fut trillion dollars and say, go build more more energy production plants, or go grow more food, but it takes years to get there, so it's not something they can just do. And you know, we we hear a lot about inflation, inflation, inflation.

As a matter of fact, in the last week or two, the latest CPI consumer price index numbers came out from the government, and we're at eight point five, a record level that we haven't been to and I think forty two years since the eighties, which of course when we had record high inflation back then. As well, and and we cured it with then President Reagan's FED chair Paul Volker, getting crazy and raising rates to over twenty percent. Twenty. Now they've been at zero for the last several years

and they had to raise to stop it. Um And so here we are at that at that place again. But the you know, the Federals EVE thinks they can control inflation by raising interest rates and and you know, shrinking the size of its balance sheets supposedly. But even if they do that, it's unlikely that higher prices are going to go away soon. Because they can raise rates all they want, they can shrink the balance sheet all they want, but as I said, they can't print more energy.

They can't print more oil and gas, they can't print more wheat. That doesn't just come back, And so we're going to have those massive inflationary force. It doesn't seem like, um, the higher price is going to go away anytime soon. And so what happens then to the U S. Dollars dominance in global commerce. Well, if if supply chains start

breaking down, we don't need as much global commerce. And so now we probably um see the dollar starting to lose more ground as the major global currency um, not not that it would lose I'm not necessary calling for an end of the dollar's reserve currency status, but we definitely see a fragmentation at a smaller level. Um. And so if we're not trading globally, then we could use more localized currencies and things like that. And already seeing that,

we're already seeing that with some countries. They're already renegotiating their currency to get paid. So for example, Russia says, if you want our gas, then you've got to pay in our currency. We don't want that other currency. There's a lot of reasons for that, and I'm not going to go into all that. We could go down that whole rabbit hole. But the point is that we're already

starting to see some countries renegotiating in their currency. So I'm not saying the dollar is gonna lose the reserve status of the world right away, um or maybe even ever. I mean, I believe it will, but but it's not inevitable at this point. But we will start to see more fragmentation. It's already happening. Oh man, you listen to the Mark Moa show. We're talking about bitcoin, cryptocurrencies. We're

talking about the decentralized revolution. We're talking about the way the world is going through de globalization and what would be the impact on bitcoin's price as that happens. That's exactly what I'm I'm gonna explain to you. Like I said, the price is not always the most interesting thing, but in this case it is. So I'm gonna explain to you what I think is going to happen to the price as this all unwinds, and is it a risk on or risk off asset that's want to cover when

I come back. You don't want to miss this, so don't go away. I'll be right back. All right, Welcome back. You are listening to the Mark Moa Show, and we are talking about bitcoin. We're talking about cryptocurrencies, We're talking about the decentralized revolution. Like we talked about each and every week. I like to focus on the intersection of politics, finance,

and technology. It's where those three come together. In the first segment, I was referencing Readalio's book The Changing World Order. It's an amazing book. I highly recommend it. Um It's got so much research, so many charts, it's so good. But it only focuses on the financial side of things a little bit talking about how the financial side of things leads into the political side of things, but he

completely overlooks the technological side of things. And if you go back through study history, and this is why I don't understand how many how he misses this. If you go back through history, it's always technology that changes the world. Um, and he seems to leave that out, which is pretty interesting. But back to that's why I like to focus on those three things together, those intersections. And before the break, I was talking about, um, we're at this point the

pendulum is swinging back from globalization. We're gonna start swinging back to decentralization or deglobalization. And I was talking about specifically what would be the impact on bitquins price, and I was talking about how, um, the dollar. You know, I'm not calling for an inevitable, imminent crash of the dollar's urve status, but we're definitely starting to see as supply chains breakdown, we're starting to see more regional prices and currencies pop up. We're already starting to see some

countries renegotiate terms in their own in their own currencies. Now, UM, it's not just me saying this, I mean Larry. Larry Faint, the founder of black Rock, the world's largest asset manager, basically said in his annual investor letter, quote, well, dependence on Russian energy is in the spotlight. Companies of governments will also be looking more broadly at their dependencies on

other nations end quote. So what he's saying is that everyone started to like revite everything like, shoot, I didn't realize how dependent I was on Russia fill in the blank, China or whatever, and shoot, who else am I this depended on? If I was a business, I wouldn't want to have a business that was dependent on only one customer, because if I only had one customer and they didn't buy from anymore, my whole business goes under. Or if I only had one vendor, right, And that's what a

lot of countries have found themselves in. He went on to say, quote this may lead companies to onshore or near shore more of their operations, resulting in a faster pullback from some countries end quote. So what he's saying is that we've been sending all our jobs and our manufacturing overseas, which has made things much cheaper for us.

But now it's like, oh, shoot, I better have control of this here, I better bring some of this back, and it may happen faster than what um some people think, which is what he's saying, of course, than it is. And then you want to say, quote a large scale re orientation of supply chain, supply chains will be inherently inflationary end quote. So what he's saying is that as we start to reorganize the supply chain so we're not so dependent on all these countries, it's going to be

inflationary again. As I started out saying, we took a fifty job and shipped off off shore for eight thousand, and we took a hundred dollar apart, we make it off for eight dollars. But now it's the opposite of that. So prices went down when we did that, and then we bring it back or reverse it, guess what prices go back up? So what would be the impact on bitcoin's price. Well, most people, many analysts, think that bitcoin serves as an inflation hedge like gold, and it has right.

So bitcoin went from zero dollars to forty dollars, so it's gone up way more than the rate of inflation. So it has hedged me against inflation, So it has done for that. Um. Bitcoin is what we would consider hard money. It's harder money than the dollar because the Federal Reserve just prints million dollars they want, but nobody can print more bitcoin, and so it's harder money. It's

harder money than gold. Um. If the price of gold went to ten thousand dollars and now it's more people would go mind gold, and more gold would come into existence. But even if the price of bitcoin went to a trillion dollars and more people try to mind bitcoin, it would not produce more bitcoin. So it's very very very hard money, um. And so it should be an inflation head, right you think. However, it hasn't really seemed to be

working like that. Um. And why is that? Well, part of it is because is bitcoin a risk on or a risk off asset? So US inflation jumped to like I said, eight point five percent. Why did bitcoin's price rock it up after the inflation print came out? Isn't it supposed to be an inflation hedge? Is bitcoin an actual inflation? Is it a bad inflication? Is is it

ever going to be a store value? Right? And so there's like all these promises about bitcoin was supposed to be and you would think that you know, um, the FED. The FED is controlling the money supply. Obviously, no one controls the bitcoin supply. The FED is controlling the money supply, and they've been given a responsibility for the US monetary policy to ensure it's what's called the dual mandate. The dual mandates are one maximum employment and two stable prices.

Now it's interesting about the stable prices is that the FED basically has three levers in order to achieve that goal. One, um, they can print money, Two they can control interest rates, and three they can set the rules for the reserve requirements of the banks. So if they put if they say, hey, banks you don't need to keep as much in reserves anymore. You can create more money than they create more money. If they lower interest rates, people borrow more, which creates money,

or they could just print money directly. So they have those things, and they can print money basically by buying bonds and things like that. So all money is debt based. It's created into existence by debt by loaning it out and so um. The other the other mandate is stable prices, which is kind of funny. So the FED has this,

that's their goal. That's their dual mandate, and it's historically meant an arbitrary number of two percent target for inflation each year, meaning the FED once things to cost two percent more each year. That's what that's what that means. So their goal is to have two percent. And you heard this. We can't quite get two percent inflation. We're trying to get two percent. We can't get it, we can't get it. Well, their goal of two percent means

things cost two percent more per year. Or let me put it another way, that means you lose two percent per year. Let me put it another way. At a two percent inflation number, that means your money or your savings, your money has a half life of thirty five years, So that means that two percent inflation. Their goal, the FEDS goal is for you to lose fifty percent half of your money in thirty five years. That sound good, Sure doesn't sound good to me. Now let me put

it another way. At seven percent. Now to remember, we just at eight point five. At seven percent, that means you lose half your money in ten years. That's their goal. That's their stated goal. That's what they consider stable prices. That's insane. That's what they consider stable prices. I would think stable prices means that I don't lose any money over ten years, or thirty years or a hundred years.

I would think that if I put a hundred thousand in the bank today, in a hundred years from now, I still have a hundred thousand dollars worth of buying power. But instead I put a hundred thousand into the bank, and in a hunt and a hundred years that hundred thousand now only buys me about five thousand dollars worth of goods and services or two thousand dollars. So that's

basically what's happening. Those stable prices are the FEDS gold and so in times of high inflation an economics, economic uncertainty, investors go risk off, right, They're gonna fly to quality. They're gonna say, um, it's too risky. I want to go into something like cash or something like government bonds that guarantee me something something like gold even and you know it's better than gold gold to point oh or bitcoin. So we have high inflation, so everyone just piled right

into bitcoin right then the price went up. That's not exactly happened and why not, Well, it's because it's a little bit who soon, right, There's one thing missing, it's the narrative. So bitcoin's hard money properties do make it a risk off asset for its supporters, but most investors still see it like a stock, like a risk on asset.

And so even though if you really understand it, you understand it's hard money and it's risk off, most people buying it today still look at it as a stock as risk on, and so it's really Bitcoin is more of like an aspirational store of value than the best store of value right now today, unless you have a long enough period of time, and the narrative needs to penetrate more than a hundred million people that own it today and get to the other seven point eight billion

people who don't view this system as a store of value yet. However, that makes it our opportunity because the rest of those people don't realize this yet. Then we have an advantage to front run that we can get in now before the masses do. So. The cost of admission is one volatility and two having to wait. If you can stomach the volatility, the price is going up and down and you can afford to wait five years,

you will be handsomely rewarded. The flip side is if you have instant gratification and you can't wait a couple of years and you can't stomach the volatility, then you can wait and buy it later. You're listening to the Markmas Show talking about bitcoin, cryptocurrencies and the decentralized revolution, giving you the play by play. Hopefully this made sense to you. Hopefully you can stomach and wait it out, because you will be rewarded thanks for listening.