Raoul Pal - BE PREPARED For What's coming to Bitcoin!

if you know that something is being adopted at this speed and it's a networking of money at its core and you can buy an infinitesimal fraction of it so everybody can buy 10 of their net worth then everybody who takes this opportunity will probably have the biggest opportunity in history to make money a friend of mine one of my clients tapped me on the shoulder and said you should take a look at bitcoin this was 2012. and i've been aware of bitcoin and i took a good look at it and he explained to me both the store of value proposition and the blockchain element that anything could be trusted on the blockchain i looked at this and i'm like oh my god this is the future that we need because the problem we've got is when a firm like lehman brothers goes bust nobody knows who owns what and somebody's going to get screwed in that equation just one of the very issues at the center of the system nobody knows who owns anything so i started looking at that and i wrote i started writing articles and invested in it first time in 2013. 2014 i started real vision because i wanted to democratize the very best financial information nobody gets access for an hour to the world's most famous hedge fund managers unless you've invested a hundred million dollars real vision changed that equation entirely and said listen forget all these sound bites on cnbc of three minutes it's worthless we're going to give you an hour of the world's most successful investors the best independent analysts and strategists and then you have a level playing field and that was a game changer i mean since real vision starts in 2014 there's probably been 200 podcasts that's copied that model so this is this movement there's two things there's the democratization of information and then there's crypto so crypto as it starts building out as an ecosystem you start to realize that okay this is now the fastest adoption of any technology in all recorded human history from 1990 to 2000 grew at 63 percent a year that was the fastest adoption of any technology in all recorded history prior to that mobile phones was the other one but what happens is the internet technology and the mobile phone technology allows for these networks to be built and once that network's in place it's faster to build the net next network so in india for example they've just basically given out free data to every mobile phone in india so guess what data usage is the highest in the world and so their internet scaling becomes faster so this so the internet was huge as we all know and it remains huge so at 63 a year it then flattened out over time as more and more people got adopted so at 1997 it was growing at 63 a year and it was 140 million users of the internet in 2021 there are 140 million crypto users and it's growing at 113 a year double the speed now this is where humans struggle linear numbers and exponential numbers because it's exponential it means that growing at 113 a year we're going to go from 140 million people to a billion people by 2024. i mean so so so when you go back and what you how are you introduced all of this so if you know that something is being adopted at this speed and it's a networking of money at its core and you can buy an infinitesimal fraction of it so everybody can buy 10 of their net worth then everybody who takes this opportunity will probably have the biggest opportunity in history to make money there's a bunch of retirees the baby boomers and they've kind of screwed it all up because they've got all the debt um they've got too much equity exposure it's really hard for them to retire this is why the federal reserve don't like equities going down because you've got this richest group on earth who are kind of stuck they never got enough money to retire on but i want to look through the eyes of the millennials so they are 32 years old at the same age their parents at 32 the baby boomers had all-time cheap valuations of equities all-time cheap bonds all-time cheap credit all-time cheap property right so they couldn't help but make money they kind of screwed it up because they actually ended up going into debt as well but they couldn't help but make money so then the millennials had the opposite all-time record valuations equities all-time record valuation for bonds all-time record credit all-time record highs in property so i'm like these guys are screwed unless something else comes along and that thing is crypto because the future expected return of crypto it's been growing at 213 a year in returns i that's how much it makes even though it's very volatile sometimes it's down 70 percent over time you're making 213 a year it has grown as an asset it's gone up i think it's two million percent since inception no other asset in all recorded history has ever done this and we haven't even started i still think there's probably another hundred x from here not even the baby boomers got given that the s p didn't go up 100x since 1980. so this is the magnitude of what's there so i'm screaming from the rooftop saying you might be cynical you might think you don't understand it you might think you can't afford to play in this but you have to listen because this is the opportunity you can't come back to me in 10 years time and say well we missed all of that all the rich people got richer no you i everybody else is saying now is your time don't be irresponsible you know dollar cost average do all the right things but here is your opportunity this is the biggest opportunity i've ever seen and i'm going to take advantage of it and so should everybody else this is not rich or poor this is an every person opportunity and we've never had this before ever you start with understanding money which most of us don't think about then you kind of understand how we're getting screwed by central bank printing and that the debt-laden economy and what it means and then you start saying okay but that's bitcoin and then what's this ethereum business and then you start realizing decentralized finance you're like it's kind of a finance thing but that's kind of cool because i can get yields now you know i can get instead of getting zero on my bank account for my hard savings i can now get six percent a year wow that's a difference it's like going back 25 years in time and then suddenly nfts come and community tokens and suddenly your mind is completely blown that this is not just money it's the entire exchange transfer and storage of value for the internet whole business models are about to change massively because of what this technology unlocks and then once you get your head around that you're like oh god i can't even hold this in my mind any longer it's so big and that it's not just buy some bitcoin i'm going to make some money over time you know it's actually an entirely parallel financial system and business structure for the world and it's being adopted faster than anything we can ever imagine the world has a history of money whether it's backed by gold or not where government gets themselves excessively into debt and they devalue the money so the romans used to clip the edge off the coins so there was less gold in each coin and eventually people would lose faith in the coins because they blend them with silver and then blend them with copper and you know the coins were worthless because that was supposed to be worth the value of the of the dinari in roman times but governments can't help themselves humans we're just humans right humans are fundamentally flawed creatures and we always will be so then we have the gold standards you know the us and the uk we're on gold standards world war one world war ii we all have to leave it because we've got too much in debt again we've overly financialized yet again because humans love leverage above all things it's kind of sex and leverage are the two things that drive humans for some reason then we adopt a new system which has been around before but it keeps getting abandoned called fiat money fiat money's money not backed by anything it's backed by the promise of the central bank paying it so that's the dollar bill that we all are familiar with and every country in the world now adopted fiat currency but as with everything if you're really thirsty and i gave you a bottle of water or sold it to you you'd probably pay me 10 times too much for that bottle of water if i give you a million bottles of water they're worth precisely zero to you so scarcity has value that's arts that's cars that's almost anything um humans value scarcity for whatever reason we do um and so if you're printing too much money you're creating less scarcity so yes there's money everywhere but the money has less value so once you understand that you say well what does it mean the dollar hasn't collapsed it's kind of where it was versus the euro in the last five years or whatever it is and then you say huh but my fifty thousand dollar salary now can buy me much less shares in apple amazon google microsoft in fact units of the s p 500 i i suddenly can't buy as much since 2008 it's a fraction i can buy like a third of what i could same with real estate same with gold and then you're like huh assets have suddenly got expensive they haven't the value of your savings has gone down or your money so you can't afford to buy assets what is an asset an asset is deferred consumption from the future i buy a house i sell it in the future i get to retire whatever the the things are right we don't buy the s p because we want to hang it up in our wall we buy it because we want to sell it at a future date to realize money so that means our future sales are now poorer that's essentially what this means that's what currency debasement is so bitcoin comes along in 2008 in the middle of the crisis it's kind of like it was perfectly prepared for this and said satoshi goes hey look at this i can create an algorithm that only creates so much of this thing the bitcoin and it can never vary ever so therefore this is scarcity that humans can't around with

Channel: Money Talks

Views: 15,545

Rating: 4.8907104 out of 5

Keywords: stock, altcoins, bitcoin, bitcoin news, btc, crypto, crypto news, cryptocurrency news, eth, ethereum, investment, stock market, michael saylor, stocks, bitcoin crash, bitcoin crash 2021, michael saylor interview, bitcoin price, cryptocurrency, bitcoin analysis, michael saylor bitcoin, bitcoin price prediction, investing, bitcoin news today, btc price, raoul pal bitcoin, raoul pal ethereum, ethereum vs bitcoin, btc today, btc news, btc dip, bitcoin raoul pal

Id: QDL_3EWCGpQ

Length: 11min 20sec (680 seconds)

Published: Mon Sep 20 2021