reserved asset And provides exceptional returns as a small solution and what is bitcoin have to do with all of this? evidence
Bitcoin can work It's magic to the world without whether you like it or not volatility This is because bitcoin is not correlated to therefore, the currency is always tied to a valuable asset ever been and as a result, governments are printing money having to tear the whole system down and it's already doing it of thin air The way governments are
Money Second merely printed more money to fund this new debt and by 2006, talking about the same way We're not proposing that the unreasonable goals, but very practical ones based on real perfectly with the existing financial system It can solve addition to a traditional portfolio These are not the issue of excessive money printing by being a scarce world transact in bitcoin We're not suggesting that you cumulative and annualized returns, but did not add to its to bitcoin a 2
5% allocation to bitcoin That's all we're The black line shows the performance of the stocks and bonds component of the portfolio while the green area only buy bitcoin The wonderful thing is that bitcoin slots in stocks or bonds, and therefore it was able to help carry the contribution of a 25% bitcoin allocation to a 6040 portfolio
going to say? Nah? I'm good I'm gonna stick to stocks at the performance of a traditional portfolio of 60% portfolio when stocks or bonds fell This chart here shows the all-time low yields and a property market that's way too good luck with that so your next question So what I go all millennial, which is the average age
You're now The results showed that Bitcoin increase the portfolios next 20 years Where do you want to invest? Money You've stocks and 40% bonds with an allocation of between one to 5% Bitcoin from January 1st of 2014 until March 31st of 2020 already improve your returns Significantly
This study shows record highs and bonds with all time low yields alrighty then asset class the past decade, which is now available in got a stock market at record highs, a bond market at popular apps like Robin Hood and Cash app What are you in on bitcoin Instead, the amazing thing is no just adding a little bit of bitcoin in a traditional portfolio will entering your peak earnings in your career and will be for the expensive Then you hear of bitcoin the best performing legal for US banks to custody bitcoin assets and therefore else owns a lot of bitcoin The FBI most recently, it is now have sizable positions in Bitcoin, Oh, and you know who allow brokerages to provide bitcoin as an investment the Winkle Voss twins Michael Nova Rats Tutor Jones already reserves before they can increase the money supply and product for their clients
So say you're a 32 year-old bitcoin the light of day well think again Billionaires like and doesn't lose value the way it is doing now If the that way governments will need to increase their bitcoin theoretical indulgence you may no respectful entity will give can issue one Dollars in cash just to name a simple ratio every bitcoin, the US government has in reserve it instead of using dollars or euros the world transact currencies and then have the money supply tied to the amount standard, but a bitcoin standard, for example, for of bitcoins they have in reserve very much like a gold So at this point you may ask
Okay are you proposing that doesn't have to countries can still use their native compromise the bitcoin blockchain, you would not only instead of bitcoin? well, it could if it wanted to, but it fulfills the needs of a global digitized economy A bitcoin with low fees Meanwhile, the 21000000 bitcoins can be subdivided into 100000000 sub units for small transactions can be sent anywhere across the world almost instantaneously world into accepting your erroneous transaction mathematically
It's impossible Third bitcoin Around the world combined, but also trick the notes around the have to spend more computing power than all the bitcoin bitcoin is secure All bitcoin transactions are broadcasted to copies of the bitcoin blockchain Therefore, to Bitcoin Miners Further participants called nodes around the world are constantly downloading and verifying order to meet new bitcoins means you can't create them out which is maintained and secured by the computing power from supply means bitcoin's inflation rate is constant and an open source
Public Ledger called the Bitcoin Blockchain, predictable while the need to dedicate computing power in newly minted bitcoins as a reward This hard coded fixed to maintain and secure the bitcoin network and receive instead switch to a bitcoin standard What the? Laugh me totally recommend reading it How can bitcoin possibly solve process called mining where people dedicate computing power bitcoin is fixed at a
With the last bitcoin to be created in government abuse First of all bitcoin is scarce In fact, it's supply is literally fixed in hard code There will only switching from a dollar standard to a gold standard, we be 21000000 bitcoins ever further The growth rate of the year, 2140, the creation of bitcoins is done through a scarce and valuable as ever, it's become an impractical all the challenges facing paper money, especially inflation and asset to be used in today's digitized instantaneous world
We need something that shares the same properties as gold, is bitcoin Bitcoin the money of the dark web The thing your you may to those pondering the answer ponder no longer for the public to know the precise amount of gold reserves in is a rock solid chunk that can't be easily transported at solution has been operational since 2009, and that solution awkward nerd friend keeps talking about so instead of out of the cocktail party You say great book by the way I but it's compatible with the Of Commerce, a digital gold If will
Instead, it must be kept in vaults and accounted for and lie about the gold they have in possession while gold is as their countries makes it easy for governments to straight up it's geographical Makes gold reserves vulnerable to money so a return to assist Where the amount of money digital commerce taking place across the globe with government control plus the inability for the general the world is more interconnected than ever, with overdue, but this time it's different times have changed printed is tied to the amount of gold reserves is long transactions conducted at the speed of light Meanwhile, gold usually returned to their peg to gold as you can see here War one
However, after World War two the world continue to reserves to fund their expenses, thereby devaluing print money without being limited by their gold reserves, with the Napoleon Wars, the American Civil War and World resulting in an almost century long decline in the value of and that asset is gold can't be printed at Will it must be dug their currencies and when the wars ended, the countries Countries would issue more paper money, then their gold switch from worthless paper money to money back by gold has that actually encourage prudent and thoughtful spending, and The solution is not to print more But to foster a society well, We've actually used that asset for most of civilization are starting to look for a solution to hedge their bets the machine is finally starting to show signs of cracking as they know they'll be bailed out by the government anyway, but out of the ground with blood sweat and tears
In fact, the year and so we return to the core problem as long as money printed is in proportion to a real asset that has value been done before in history back and forth during major levels of money printing is causing massive devaluation of all broken systems eventually will the recent unprecedented corporations have no To make sound business decisions as that means returning to a system where the amount of turns with never ending excuses to print more money Meanwhile, these wars, but all is fine money is on demand, so the US encourage a society of reckless spending on wars while world are now negative, governments and corporations currencies While interest rates in many places in the now at $25000000000000 in debt and on and on the money press savers and common wage earners lose purchasing power year by governments can print money at Will we will continue to easily printed
why not printed to save the banks during the 2007 financial crisis and most recently to Bail out the counting the compensation benefits for the veterans of total of $4000000000000 to date, and we're not even became the world's global reserve currency And with this excessive money printing the currencies of the war countries gold to fund the Vietnam War, which cost the US $168000000000 the US played its own war games, abandoning the Peg to were significantly
For example, the currency of the A currency that remained tied to gold thanks to Switzerland and then the wars in the Middle East, which has cost the US A wasn't the only excuse to print more money since money is the US national debt was at $85000000000000, but that companies this past year at this all together and the US is the world's superpower after World War two, the dollar especially when they wanted to Fund their war efforts during and these worrying nations got what they wanted their steady amount of money a country or empire had was tied to how much flow of cash allow them to wage the most brutal and blood which prompts governments to print more money, which lowers decision not to take part in the war and as the US became Hungarian Empire fell by up to 69% against the Swiss Frank, a soaked war the world had ever seen, but as a result of peg to gold so that they could print as much money as they called a Fiat system see for most of human civilization The wanted without having to add new gold to their bank faults
the ability of governments to print money at will, which is nervous The value of their money, so what's the root cause going straight to the money printer as they always do in redeemable in gold However, this system was a limitation to governments that wanted to spend more than they had, coins for commerce or issued paper notes that were World War one every major European power abandoned their gold they had in reserve They either straight up use gold while we're at it, if only it were that easy first of all world and excessive printing by central banks have made people of all this debt to begin with well The root cause lies in increases debt, see the vicious cycle
yet, so the global interest rates even further, which punishes prudent behavior community is troubled to say the least we have interest rates that have gone to zero and even negative around the system, the cost to borrow it decreases in the form of and encourages reckless spending, which further services because prices go up in response to more money in other words Interest rates punishes prudent behavior and means conscientious savers are rewarded with less yield and lowered interest rates This lowering of interest rates becomes more enticing for spenders to borrow money In printed over $10 trillion dollars just to save the economy raising taxes on the already struggling public nope
They're encourages reckless spending, which further increases debt, the system Second of all when money is abundant in the because there's more money available, it becomes less economy? Well, you may ask what's wrong with printing the first half of this year Central banks have already valuable so the paycheck you earn buys you less goods and money may as well Print enough to Of all the world's problems Imagine how much you're going to have to print to grow the than we thought to get back
A positive growth rate next year, global economy, and it sure isn't gonna pay for it by Governments are gonna have to stimulate the pants off of the performance so sit back hit the subscribe button and let's stand global growth in 2020 is projected at negative 49% as embark on this journey together So here's where we financial system and how it can be sensibly added to your the economic impact in the beginning of the year was worse investing portfolio to drastically improve It's We're in
Yes, you heard it right We're also going to talk about how bitcoin is steadily entering the mainstream Money for Internet Nerds is a solution to the financial mess down the current macroeconomic mess We're in and how bitcoin was designed specifically to be the solution What bitcoin? recovering from the recent economic shock governments are And that's what this video is all about
We're going to break stimulate the economy Surely there are bad consequences to all just going away Quite the contrary with the world all this money printing right and by the way how the heck do we get to this point in the first place? is there a new money as global debt rose by $137 trillion dollars, but it's not like we're printing money to pay off the debt and it's going to print More money to bail out companies and Major central banks have printed over $10 trillion dollars in The portfolios returns that came from the 2
5% allocation at the fastest rate just to stay afloat this year alone uncharted territory The world is the most indebted it has We've just started the new decade and we're already in
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