Ultimately, the total adjustable market for bitcoin would be $400 trillion. That’s the total sum of the global financialized world. Bitcoin will eat that, essentially. So we’re going to see a lot higher prices. Million. $2 million for bitcoin.
Harry Ethereum has now transitioned to proof of stake. Is this not going to put pressure on bitcoin to do the same?
Ethereum has nothing to do with bitcoin. Proof of stake is essentially a recreation of the Fiat money model and they changed the code on a whim many times. It’s completely insecure and now it’s even worse. So this is putting a spotlight on bitcoin and attracting capital to bitcoin. I see that Ethereum is selling off versus bitcoin. I think that trend will continue and we’ll see Ethereum trading at zero versus bitcoin, as we will see all coins because none of them offer anything that would attract capital for any serious reason.
I would also point out that Chancellor bringing a second bailout for banks is the genesis of bitcoin. And bitcoin burdened the world because of the failure of the proof of stake system. We tried proof of stake for the past 50 years, since 1971. So it’s 51 years now, I guess. So we already tried it and it failed. There’s been three-layer, one money in history gold, then US Treasuries, and now bitcoin. And that’s it. US treasury fails because of the inherent proof of stakeholder system to it and you’ll see the same exact thing with any evidence of stake system.
I recently read that hedge fund manager Michael Burry has actually blown all seven trumpets of the financial apocalypse. Now, in light of this, is bitcoin a bargain? $20,000 each.
Right. Well, Michael Barry and a lot of others have been pointing out for years that the central banks have painted themselves into a horrible corner that they cannot extricate themselves from at this time. So we’re having this global financial meltdown, which is actually part two of the global financial crisis that started in 2008, pretty much for the same reason. The policymakers, instead of trying to solve the problems that led to the global financial crisis of 2008, simply gave banks a more significant line of credit to do exactly the same thing for another 10, 12, and 13 years and cause an even bigger problem. And that’s where we’re at right now. So we’re at the moment of the bond apocalypse if you will. Bonds are melting down and stocks are melting down and we have a liquidity crisis and an insolvency crisis simultaneously. So the credit cards we saw in 2008 will be with us again very soon, and we’re going to see more of what we’re seeing in Lebanon. Customers are going to banks with guns and saying, Where’s my money? And now several more copycats are out there in Lebanon trying to get their money back.
So the government is not closing banks. So again, if you don’t have bitcoin, remember, anytime you put money in a bank, the money is owned by the bank. You don’t own your money anymore once you put it into a bank.
Also, this is bigger than that. If you ask about whether or not it’s a good bargain, it’s a price you could still exit, and that’s all that matters. And that’s talked about what’s happening in Lebanon, where people are going to extremes. All they want is this thing that they thought was their money. They taught a notion of what money is. They thought that was their money. They thought that was their savings. They thought that was their wealth. And in fact, it’s not. So it evaporated overnight. It is not money. What is in the bank there, just like Ethereum, is not money. Bitcoin is money. Gold is still money. It’s being demonetized by bitcoin. But the US dollar is no longer money. When we froze Russia’s reserve of $630,000,000,000 worth on February 26, it ceased to be money, like to the whole world. So it’s just a currency. It’s just another currency that could be ripped from your hands, and deleted from your bank account.
At the moment, most leading economists, and actually the mass media, are saying that El Salvador’s experiment with bitcoin has been a failure. You’ve been there. Has it been a failure?
Well, if that’s a failure, I wish America would fail as badly as El Salvador is reportedly failing. GDP is skyrocketing, tourism is skyrocketing. Investment in the country is skyrocketing. The leader’s popularity is over 90%. The ancillary benefits of going on making bitcoin legal center have been extraordinary and continue to show what can be done when you have a courageous leader who’s willing to say, turn their back on the global central banking establishment like the IMF, and give his people sovereignty.
I believe that El Salvador is winning, and they’re winning big. And that is why the headlines say otherwise. Just like the mainstream media headlines say America is winning by destroying the dollar, that Europe is winning by freezing to death this winter. El Salvador is winning in a very hard-to-quantify way because it’s not measured in fiat necessarily, like the US. Can, as it did over the last two years. During the pandemic and the aftermath, they printed out trillions and trillions and trillions and trillions of dollars. Everybody saw that. We saw the balance sheet. We saw the money printer go boom. We saw it. And what happened? GDP boosted, and house prices went up. Everything looks great, right? Well, in fact, the disintegration, the underlying disintegration was profound and devastating.
When we see that now, finally, Max, earlier you were mentioning that tech stocks are plummeting. Well, bitcoin still seems to be marching in lockstep with the NASDAQ. When is it going to decouple from this pattern?
I don’t think bitcoin correlates with anything. If you look at the eleven years that I’ve been in it since it was a dollar, it’s been compounding it over 100% a year for over 1011 years, and it’s on its own vector. Occasionally, it would appear to have a correlation with something for a short time, but that doesn’t correlate with anything. It’s taking humanity in a new direction. And ultimately, the total addressable market for bitcoin would be $400 trillion. That’s the total sum of the global financialised world. Bitcoin will eat that, essentially. So we’re going to see a lot higher prices.
$2 million per bitcoin. It has volatility, which is why you shouldn’t borrow to buy bitcoin because it is a volatile thing. But ultimately, that volatility is needed to really show that it is kind of breaking apart the systems.