those looking to hit it big in bitcoin bitcoin the digital currency created a dozen years ago as an alternative to cash is exploding in value will it last i do think people get bought into these manias who may not have as much money to spare so i'm not uh bullish on bitcoin and you know my general thought would be uh that you know if you have less money than elon you should probably uh watch out so what is bitcoin and will it reach new heights of a hundred thousand three hundred thousand or maybe even a million or will it just crash well we're going to be going over that plus if it's going to be regulated taxed or if it's going to be the world reserve currency status so if you're unfamiliar with what bitcoin is it was created by an anonymous group or individual under the name of satoshi nakamoto bitcoin was then released in 2009 but then the source code was handed off to a man named gavin anderson which i thought was kind of suspicious and weird but okay whatever so bitcoin is a peer-to-peer network which uses a collection of computers to mine codes or nodes which then stores that information into what's called blockchain and in each block is a number of transactions so as you can see in this chart the more miners or nodes in the system the more safer the blockchain or bitcoin as a whole is except for the effect of you know emp strikes or someone hacking your codes or losing your codes just in general you know whatever so one great advantage of bitcoin versus like something like gold is there is actually a cap of 21 million bitcoin and the last bitcoin that is supposed to be mined in circulation will be in 2140 and also to point out there are fractions of bitcoin which are called satoshi's and there are 100 million satoshi's to one bitcoin now since bitcoin is decentralized meaning there's no central power it has become very popular for a way of transacting and making it a currency now many people are seeing bitcoins the store of value similar to gold or some other kind of asset many people like elon musk or top investors or some banks are more so seeing as a speculation so it's getting mistrued into this false sense of security as some people pile in the bitcoin as it's going to go to the moon or something like that which is not really the case because it's not ready for that at all because of the volatility it has and if it is to be a currency it's going to compete with the us dollar and many other currencies around the world so that's going to become a problem and that's going to lead to regulation taxes and more issues down the road and bitcoin may see a crash because of that so since bitcoin is a speculative asset it's only good when the people have faith in it so if people don't have faith in it obviously bitcoin price is going to fall people are going to get scared afraid of losing their money and they're going to back out and if people get greedy and think it's going to go to 1 million people are going to have more faith in it and it's going to raise the bitcoin price the problem with that is if that's to go to a currency that's going to be extremely volatile and it's not going to be stable to become a currency so bitcoin may fail because of this and the stock not the stock but the price of bitcoin may crash so bitcoin is very volatile compared to other currencies around the world such as the us dollar which is around point five percent to one percent average volatility rate and gold is somewhere around one point two percent volatility rate bitcoin is around five point five percent on average of volatility in the last 30 days or 60 days and bitcoin has seen a volatility rate of upwards of 15 percent i don't know about you but i don't consider that a store of value i consider bitcoin a real speculative asset will it go to one million maybe it will maybe but if it doesn't you have to assess that risk and bitcoin to me is pretty risky so since bitcoin is pushing its way to become a currency instead of a speculative asset it needs to fight an upward battle to become successful as a currency against the government the fed regulations taxes and it needs to fight its volatility problem if it can do all that then maybe it will be a world reserve currency or maybe it will be more used by americans or even the world but recently janet yellen just came out and said bitcoin is an extremely inefficient way of conducting transactions she has also demonized bitcoin and said it's being used for illicit finances and financial transactions it's pretty ironic that she says that because other currencies around the world are used for illicit finances as well so that brings us on to the next idea which is the digital dollar that they're trying to push out and they don't want bitcoin to be the world reserve currency they want digital dollars instead so central banks can control the financial system so meanwhile janet yellen is pumping out the treasury general account of 250 billion per month until it's all gone and the fed is still doing their quantitative easing in the system which is 150 billion dollars a month and one that that does is the tga the treasury general account with the treasury of the united states government what that does is that's going to put money directly into the system and the fed's quantitative easing is just to liquidate the banks and make sure they have money on their balance sheets as simple terms and it's funny that she would say all this because the us dollar is starting to fail as with other currencies around the world that's due to living beyond our means and quantitative easing and all this mumbo-jumbo stuff so bitcoin will have to compete with the fed the us government Janet Yellen even and currencies around the world as it moves on to try and replace currencies in centralized banks and what will happen from this is taxes will come regulation will come and bitcoin will have to find a way through that even if it does and if it does get through it maybe it will be the world reserve currency maybe but if it doesn't bitcoin will most likely crash and people lose faith in bitcoin altogether so not only that but bitcoin has another problem and that's digital currencies and they're being issued around the world including china united states new Zealand Sweden and more and china is even actually testing this as we speak right now in their country and in Africa so for those saying that bitcoin will be the world reserve currency first need to look at these digital dollar systems that are about to be released and the competition they pose to bitcoin because if people use a multitude of different currencies around the world who's to say they're going to use bitcoin first and why would they they don't need to so no one carries around you know bitcoin in their wallet or their phone or whatever all the time they're gonna have a bunch of other currencies with them you could say the same thing about gold but gold has a history and gold has actual use bitcoin does not have a real use or physical use it's just coding so it's not a matter of if it's a matter of when digital currency will come out and replace the dollar and replace currencies around the world and when this happens and it will happen bitcoin may not be able to compete with that or just will be used as a store of value similar to gold or something like that after writing this video and preparing for this video that you're watching now jay Powell or papa Powell came out and said that he's making digital currency his number not number one priority but he's making it his highest priority that they get this digital currency under wraps and get it sent out so they can get it legislated so Janet Yellen wants to regulate bitcoin and this is some evidence of that she was asked about potential regulation of bitcoin and said it was important to ensure that cryptocurrency is not used as a vehicle for illicit transactions and that there's protection for investors see that keyword there protection for investors that means regulation when the government wants to protect you that means regulation or laws and she also noted that she worries about potential losses that investors can suffer in that case that's volatility and the risk that bitcoin has which is true but that means she wants to regulate it and make sure there's more laws for bitcoin or more taxes when I was researching the title of this video i was looking to see how many people were interested in a bitcoin crash and it's interesting to see because as you can see here there's no market volatility really and then once you get the market as volatile and you have these velocity of money exchanging hands and people trying to find assets to throw into you have people worried about a bitcoin crash because it's in a bubble right so bitcoin is most likely in a bubble because people are obviously worried and stocks and assets are psychological so if people fear losing their money or say their bitcoins they're gonna pull out and the bitcoin price is going to crash so will bitcoin crash this year with all my research and understanding of bitcoin and the psychology of investors bitcoin will most likely crash to maybe 20 000 or even lower than that and the reason for that is because people don't really have faith in bitcoin as much as they could have if it was a world reserve currency or a currency like USD or you know any currency like that and remember this is not investing advice this is for entertainment purposes only so do what you want with your own money and even though bitcoin can be used as a currency it's not really a reliable currency or an established currency system and as people have faith in it it will remain a currency as a way of transacting but is not an established currency so is mostly a speculative asset and should be treated as such and with speculation there is risk and with risk there is losses so make sure you do your research and do your understanding of things you invest in because if you don't you will lose your off okay people are also worried about inflation that's coming and they're worried about where to put their money because of the velocity of money that's going on and the inflation we're having so they're just stockpiling into anything that will earn them income and you're seeing that with real estate you're saying that with stocks you're seeing that with bitcoin and you're not really seeing that with gold and gold's actually kind of cheap right now so if you enjoyed this video make sure to like and subscribe i do videos every Friday about finance real estate and anything related to investing so I post them every Friday around 1pm and I'm Travis Jacobs helping you be productive and building wealth and I'll see you on the next video you
