There's a group of people that I-- that I align with,
the Bitcoiners,
that believe that the true inflation rate is not CPI,
but rather it's the asset inflation rate.
Billionaires
and many of the smartest people in the world
are buying Bitcoin right now.
That's right.
Jamie Dimon,
Jack Dorsey,
PayPal,
MicroStrategy,
myself,
and many more
have been all over the news the past few months,
singing the praises of Bitcoin.
So, why do so many of the world's elite love Bitcoin all of a sudden?
And why now?
It's because they know something the rest of the world doesn't.
And I'm gonna tell you what it is today.
Let's get it!
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My name is Ben.
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The future of the US dollar isn't as certain as it once was.
However, to combat inflation, the world's wealthiest people and companies are constantly looking for new ways to diversify their wealth.
They go after scarce goods,
which is why real estate, gold and Bitcoin are all top choices for smart money right now.
We're especially seeing an emergence of companies and smart money invest in crypto
since the Bitcoin 2020 halving.
If you happen to have taken a look at a block explorer anytime over the past few months,
I'm sure you have seen some of these insane transactions,
like one where 1,000 BTC was transferred worth around $18 million,
another with almost 2,000 BTC transferred worth around $37 million.
One even had 10,000 BTC transferred at once.
That's $186 million at the time of this recording.
Who in God's name has that much money to invest in crypto other than me?
Well, guys, the obvious answer is billionaires.
In the last few months, news broke out how billionaires and companies are starting to purchase more and more Bitcoin,
like the 4,709 Bitcoin purchased by Twitter CEO Jack Dorsey's other company, Square.
You know, chump change for guys like Jack Dorsey with cool nose rings.
MicroStrategy also made headlines for the same reason,
a company you didn't know existed before they bought Bitcoin.
The company led by CEO Michael Saylor now holds over $700 million worth of Bitcoin.
It was $400 million about when they bought it.
And other companies are following suit.
In fact, as of November 16,
MicroStrategy announced it would take its Bitcoin investment one step further
when Saylor announced the company was adding Bitcoin data products to its core intelligence suite.
So, what's the deal?
Why is it suddenly the case that all of these billionaires and massive companies are investing money in Bitcoin?
After all, they can invest in any number of other assets.
Even private deals that most people don't have access to.
So, why Bitcoin and why now?
Well, the simple answer is that Bitcoin has consistently proven itself
as an increasingly valuable asset over the past few years.
Bitcoin is currently on its latest bull run towards its highest value ever,
closing in on the all-time high of $20,000.
It's no secret that money hungry billionaires are eager to get a slice of the Bitcoin moon pie.
Wow!
Moon pies are usually whole,
but I guess, in this case, they get a slice.
However, the real reason the world's richest people,
major corporations and some of the world's smartest investors are suddenly diving into the Bitcoin pool
is a bit more complex.
It all comes down to one word---
inflation.
Inflation is a term that almost everybody knows,
but very few understand.
While it seems like a very straightforward concept,
the more you start to peel back the onion-like layers of complexity,
the less straightforward inflation becomes.
Onions are disgusting by the way.
You know, not everybody like onions.
Cake!
Everybody loves cakes!
Cakes have layers!
The traditional measure of inflation though is calculated as the consumer price index,
or CPI for short.
The CPI is an average of different aspects of the economy basketed into one index.
This basket of goods includes things like food, transportation and medical care.
CPI is calculated by taking the changes in prices for each item in the basket,
then averaging them.
However,
that isn't the real measure of inflation as a lot of smart investors know.
You have to look further beneath the surface.
I love watching this video of Michael Saylor ripping apart Keith Mccullough on Hedgeye TV.
Saylor argues that if you use CPI to calculate the inflation rate as most economists do,
then you typically get around 1%.
Hmmm?
However, there are lots of people out there that think this inflation rate is total nonsense,
used by economists to mask the true inflation rate.
They think that using hot dogs, Hummers and health care to determine inflation is a wildly inaccurate measurement,
an extremely poor representation of the real inflation rate.
Like Saylor,
this group of CPI-bucking inflation realists also included a bunch of hardcore Bitcoin purists.
These people believe that the true measure of inflation is actually the real asset inflation rate!
Ha!
How novel!
When you want a high yielding secure investment,
you look to park your money in things like
Treasury Bills,
10, 20 and 30-year bonds,
and equities.
They look at how much the price of these investments has increased over time.
In addition, they factor in the expansion of the monetary or money supply.
This is how much cash the Fed is issuing,
which has been a lot recently.
Trillions of dollars.
The more currency that enters the market, the higher the real inflation rate.
And this means your dollars won't buy you as much next year as they will this year.
If you focus on the real asset measurements.
Some people estimate that the true rate of inflation is around 15%!
That's because this is the rate that the money supply expands at,
but there are other people, like Saylor, who thinks it is even higher.
When he takes a look at how the price of the 10-year bond has increased over the past decade,
it has skyrocketed from $1 million to $10 million.
That's an inflation rate of a whopping 22%, guys.
The real asset inflation rate illustrates a more accurate interpretation of economic conditions
that investors face in all markets,
from bonds to Bitcoin.
People that use this real asset inflation rate to measure economic inflation
are able to make huge amounts of money
because they don't view the investment world through rose-colored 1% inflation glasses.
69%
As Saylor notes here,
If you're trading with people that-- that buy into your CPI definition as inflation,
then that works,
but if you're looking over the long term,
and you're trading with people that actually buy into the asset inflation rate as the inflation rate,
you come to a different conclusion.
That is one of the main reasons why Bitcoin has suddenly become incredibly attractive
to successful investors and the super rich alike.
And let's keep it real, guys.
As the price of Bitcoin continues to rise,
we know that the investment frenzy is only going to keep getting bigger.
We are very close to seeing this scenario unfold.
Keith, in the near term, these things work,
but over the long term,
adoption makes sense.
What happens to all these wonderful models
if 10 billionaires decide to buy $1 billion a Bitcoin each
and announce "We bought it,"
"We're not ashamed of it,"
"We're gonna buy more"?
All your models are destroyed.
Completely devastated.
Bitcoin goes to the moon.
As Saylor says later in the video,
governments can just continue to print money,
but no one can ever place more than 21 million Bitcoin into existence.
Everyone is expecting the world currencies, like the dollar, the euro and the Chinese yuan
to keep printing more.
At this point, we expect them to continue printing
even if they eventually make their own digital currency,
which as you and I both know,
government-backed digital currencies are coming,
known as CBDCs.
Saylor spends the rest of the interview tearing into Mccullough.
Saylor puts him in his place,
telling him about how he was dead wrong
when he told people to short Facebook
and that he is dead wrong about Bitcoin.
Saylor has bukus of bucks.
And he is loaded up with Bitcoin, so
if you ever want to be a successful investor like him,
you should load up on Bitcoin as well, guys,
as I've been telling you for years now.
It would have been much easier at $3,000.
So, what do you guys think?
Will we see more billionaires rushing into Bitcoin soon?
What was Saylor's strongest point?
Or do you think that he was totally off here?
Drop your comments down below.
That's all I got.
Be blessed.
BitBoy out.