Despite the recent pullback, Bitcoin's price continues to
move higher and higher year after year, not because of
height, but because the same forces keep pushing capital in
One Direction. And right now, those forces are
being discussed in all kinds of political and institutional
forums across the world. It appears that strategy won't
stop buying Bitcoin, Washington won't stop tweeting about
Bitcoin, and the world has come to a point where they have to
address the elephant in the room, Bitcoin.
When heads of banks, governments and corporations start
responding to those forces all at the same time, that's not a
trend. That's well, as Michael Saylor
puts it. The reason Bitcoin is going up,
it's not an accident. It's because capital is is
economic mass. It is flowing from a high energy
state, the mountain top, to a lower energy state, to a more
efficient state. Oceans.
This is beyond. Bitcoin, let's go.
For years, Bitcoin was dismissed as speculative, too volatile, or
too risky by all the biggest names in finance and politics,
and we could all see that the writing is on the wall for that
narrative to shift. During this entire behavioral
shift, one company stopped waiting for permission and never
stopped buying. Can you guess who that company
is? Yes, that company is Micro
Strategy. Strategy, strategy, strategy.
It's strategy. Sorry, strategy.
That's strategy. Go by Milton Bradley.
Yes, yes it is. While critics keep asking when
Strategy will stop purchasing Bitcoin, and by the way Strategy
now owns over 700,000 in Bitcoin, the rest of the world's
programming is starting to short circuit, asking a different
question. Why don't we act sooner?
Well, maybe it's because they've been secretly planning this all
along, feeding you false information while they rake in
the profit. At the center of this is a man
that needs no introduction in the Bitcoin space, Michael
Saylor. Saylor has a way of explaining
complex concepts as an engineer teacher would explain to a group
of second graders. Just listen to this recent
explanation of his as to why capital behaves the way it does.
Watch this. But I think where people trip up
with your language is this idea of the inevitability of the 60%.
What would you say to that? So we're dealing with three
concepts, risk, volatility and performance.
OK. So I've, I've addressed the risk
issue by pointing out that there is existential risk in your
given network or frame of reference.
And I just want to make that point that once you understand
that risk of being in that frame of reference, then you have to
figure out what's the source of the volatility in the
performance. And if you don't understand why
the asset does what it does, if you don't understand the
economic physics involved, then you'll think it's random and
you'll and you'll feel like it's risk, the performance is risky.
But I want to give you an example of a physical metaphor.
I'm a hiker and I come across a mountain lake.
And the mountain lake has 500 trillion gallons of water in it.
And yeah, I don't know how it got there, but it's there.
The water's chilly. It's clear.
And I look down and there's a waterfall coming off the
mountain lake. And the waterfall, you know,
it's very beautiful and and it's very turbulent, right?
Water is turbulent in the waterfall.
Water is not turbulent. And a glassy lake.
So the the turbulence is volatility, right?
And the, and there's waterfall and then I look at it and now if
you look and you say, I don't know why that waterfalls
downhill, you know, I don't know if it'll keep falling downhill,
but I hate the volatility. Then I guess you can take a
selfie in front of the lake, go swimming, get cold and leave.
But if, let's say you're in not a tourist, but you're an
engineer. So you come across the same lake
and you see the waterfall and you see the 500 trillion gallons
and you think about gravity and you think about sunlight.
And now I know how the water got there.
The water got there because the sun shone on the ocean.
The the water evaporated from the ocean.
It rose up in the clouds. The wind blew it against the
mountain. It condensed and it rained into
the mountain. And the, and the water ran off
the mountain into the mountain lake.
I know how it got there. And then I think, well, if I
create a dam near that waterfall, I build myself a dam.
I put a turbine on the dam and then I drop a billion gallons of
water. I channel a billion gallons of
water through the dam, drop at 60 feet, and then I plug that
into a hydroelectric power plant.
I spin the Dynamo. I make electricity.
And then if I'm really smart, I run the electric power line to a
village down in the valley. And I light up the village or I
light up the city. Now, someone can come along that
doesn't understand physics and they can say, good idea, junior,
but what are you going to do when the water stops flowing
downhill? Well, I'm like, well, I actually
think the water's flowing downhill because of gravity.
Newton, Newton solved that for me.
And then someone else comes along and says, good idea,
junior, but what are you going to do when you run out of water
in the lake? I'm like, well, there's 500
trillion gallons and I take on my calculator and a billion
gallons or whatever. It's going to last a long time.
Like, well, it's eventually going to run out.
I say, well, you know, the sun keeps shining on the ocean and
the ocean keeps lifting the, you know, the water out of the ocean
and it drops it on this mountain.
And that's why there's water in the mountain.
But you're right, there's some kind of natural limit.
And I suppose there's a limit to the amount of energy I can pull
off of this dam. But it's a large number.
It's a lot more than your donkey cart and it's a lot more than
your steam, you know, wood stove.
And it's a lot more than your coal power plant.
And maybe it's a lot cleaner than burning, you know,
gasoline. So I'm an engineer and you're
seeing, you're seeing performance thinking it's random
and that's why it's going to stop.
And you're seeing volatility and you're thinking it's random and
maybe it'll stop. And, and, and here with Bitcoin,
the reason Bitcoin's performing is, is a, it's volatile, but B,
it's more, it's a more energy efficient state.
The water is flowing down 5000 feet because it's more, it's a
lower energy state, 1000 feet below the mountain.
You know, it's a, it's a low energy state.
You've got potential energy in the water and it wants to go to
ground. And that's just physics.
The 500 trillion gallons of water is $500 trillion and the
$500 trillion of assets are sitting in real estate and
currency and and sovereign bonds and corporate bonds and artwork
and equity. And they're they're invested in
the stock of a company in Africa that's going bankrupt.
Here's what matters. Sailor isn't predicting price,
he's explaining direction. Capital moves from weak to
strong, unstable to stable, politically managed to
structurally fixed. And as he explains, volatility
is not failure, it's just the result of this moving waterfall
of his. And MicroStrategy understood
that very early, earlier than most, which is probably why they
don't time their entries and why they don't stop buying.
They identified the lowest energy monetary state and they
aligned with it. I think at some point you know
the the general sentiment will flip from being short to being
long and we'll have a face ripping rally.
NI just can't tell you when. Now here's where this stops
being a Bitcoin only conversation.
Did you know that during the time of this recording, the
World Economic Forum is meeting this week in Davos?
The World Economic Forum, Yes. In Davos, Yes.
Is that like the annual meeting featuring all the world's
prominent thought leaders in finance and economics that takes
place in Davos, Switzerland? Yes, this week at the World
Economic Forum, the tone wasn't optimistic.
It was defensive. And one of the clearest
admissions came from Bridgewater Capital's Ray Dalia.
Take a look. The monetary order is breaking
down OK. What I mean by the monetary
order is that Fiat currencies as and and debt as a store hold of
wealth is not being held by central banks in the same way.
And that there was a change. The biggest market to move last
year was the gold market, far better than the tech markets and
so and so on. And the US markets
underperformed foreign markets because of the fact you could
see it in the numbers of the central banks and so on.
So let's just look at the fact that on the other side of trade
deficits and trade wars, our capital and capital wars.
And so as we're looking at that and you reported what the stock
market and so on, but you didn't report that the gold market is
also up three we. Did say that earlier this
morning. It's up the record level.
Again. And over.
If you look at the what is happening and why it's happening
and who's buying it. So let's let's just take a
moment on that capital war issue, OK?
We know that both the holders of U.S. dollar denominated debt at
which is money and the those who need it, the United States are
worried about each other, right? So if you have other countries
who are holding it and they're worried about each other and
we're producing a lot of it, that's a big issue, right?
So you have to explain what is going on with Fiat currencies,
generally speaking. And now if you take the
conflicts, you can't ignore the possibility that capital wars,
in other words, maybe there's not the same inclination to buy
U.S. debt. And So what we at least need to
talk about those possibilities and find out who is buying and
selling what that is behind these market movements.
And what capital wars? This is critical, and I know
Dollar wasn't endorsing Bitcoin in this clip, but he's
explaining why Fiat credibility is eroding when monetary trust
breaks, trade wars turn into capital wars, reserves shift and
debt becomes weaponized and capital starts searching for
something outside that system. That doesn't that sound like the
same waterfall, if not very similar to the waterfall that
Sailor describes, just viewed from the top instead of the
bottom. You know, from Davos, because
Davos is up in the mountains and it's still has waterfall coming
down from the mountains, you know, anyway, also happening at
Davos, BlackRock CEO Larry Fink highlights how trust is breaking
down from traditional outlets like the World Economic Forum.
Just take a look. We believe that outside the
United Nations this is the largest gathering of global
leadership of the post COVID period of time.
For many people, this feeding feels out of step with the
moment. We hear all about the the
elites. And how does that play out in
the age of populism? How does an established
institution make a difference in a era of deep institutional
mistrust? And there's some truth to the
critique. I believe in this forum for a
long time. I certainly wouldn't be leading
this if I didn't believe that we can change and make the world
better. But it's also obvious that the
world now places far less trust in us to help shape what comes
next. If the World Economic Forum is
going to be useful going forward, it has to regain that
trust. And to add more fuel to the
economic fire, here's Coinbase's CEO Brian Armstrong speaking in
Is It Davos? Oh yes, it's Davos about how
banks are going to need to compete for their customers
going forward. Take a look.
Banks should have to compete on a level playing field, and if
the American people feel like the banks are not paying high
enough interest rates and stablecoin rewards can offer
them more than maybe the bank should have to pay higher
interest rates to compete, right?
I don't think there should be any protectionism, do you?
Think that that was put in directly for the banks, that was
lobbied by the banks and put in. Yes.
So in the wake of our institutions breaking down, what
happens if some real world wars happen, or sanctions or
blackouts start to occur? Will you be prepared?
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This isn't just one or two voices from economic
powerhouses. This is kind of like alignment.
Here's another clip from Rick Worster of Charles Schwab, the
CEO of Charles Schwab. You know, they managed $12
trillion assets under management.
Talking about what kind of adoption he sees with his
clients currently. Take a look.
Yes, we've been active in both. So in crypto, we, we do offer
crypto ETFs, Bitcoin futures, closed end funds.
In fact our clients own 20% of all the crypto exchange traded
products in our country. So they've been very active.
We've seen visits to our crypto site go up 90% in the last year.
It's it's a topic that's of high engagement.
And for privates, we have made private investments available to
our clients. We've done through through third
party managers like KKR and Apollo and folks like that.
And we've also stood up a team of alternative experts.
If you want to invest in alternatives at Schwab, you're
going to need to talk to a professional, make sure they're
right for you, and to make sure you find the right strategy for
for. You you even have Vice President
JD Vance going on national television and stating how
digital assets are now a permanent part of our economy.
The consistent fear that I hear is that there's still this
perception that digital assets are not welcome in the
mainstream economy. And let me promise you that our
effort to change the policy is purely about changing that.
We want our fellow Americans to know that crypto and digital
assets, and particularly Bitcoin, are part of the
mainstream economy and are here to stay.
So let me just point out these are not Bitcoin maximalists.
These are institutions adjusting under pressure.
So let's bring it back to strategy and why their purchase
of yet again more Bitcoin matters so much.
It seems that while everyone else debated narratives, Sailor
tapped into the future and understood very early where this
was all headed. Now he's told this $500 million
melting ice cube story many times on many podcasts, and for
good reason. It shouldn't be forgotten.
This is the reason why Strategy will likely be one of the most
successful companies for the foreseeable future because
Sailor saw in Bitcoin a solution to his problem and now Strategy
owns over 700,000 Bitcoin 700,000.
Can you believe that banks are preparing for custody?
Governments are reframing policy with the upcoming Clarity Act
Corporations are experimenting with all kinds of different
rails. MicroStrategy didn't front run
the markets with Bitcoin. It escaped A failing system.
So here's the clip notes of what might push you over the edge to
start studying Bitcoin if you haven't already.
If institutions are repositioning and banks are
preparing, governments are reframing and capital keeps
flowing in, then zero Bitcoin exposure is no longer neutral.
It's freaking dangerous, man. The way to de risk this and the
way to promote progress and growth is to go out and act on
your principles. Don't be afraid.
Listen, everyone's afraid of risk, but there's risk
everywhere. You know what's riskier than
buying Bitcoin? Not buying Bitcoin.
What's riskier than buying Bitcoin is not buying Bitcoin.
Right. It's a bet that this entire
convergence reverses, and history doesn't really favor
that bet. This isn't about Bitcoin
winning, it's about the old system losing coherence.
Saylor explained the mechanism. Dalio confirmed the fracture
institutions are following the flow.
The waterfall doesn't announce itself, it just keeps moving.
Now, if you were to go beyond the headlines, price charts, and
surface level Bitcoin takes that I just love to do, then you need
to check out Club Orange, formerly the Orange Pill app.
It's a Bitcoin only social network built to help you find
real Bitcoiners near you, discover events and connect with
merchants and communities that actually live this stuff Go to
club orange today, download the app and DM me at Oceans Oshin.
I read all my messages there and I look forward to hearing from
you. Thank you very much for watching
these videos and connecting with me on Club orange.
Thank you so much for watching this video.
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This is beyond Bitcoin. Until next time.