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Bitcoin it's called a digital gold it's
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called the future of money and it's a
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hedge against inflation but what have I
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told you that Bitcoin might actually be
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the biggest Financial scam of our time
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today we're pulling back the curtain on
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the crypto ecosystem exposing the fraud
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manipulation and speculative hype
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driving Bitcoin and why you should think
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twice before investing Bitcoin story
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starts with three key selling points
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that makes everybody's panties get all
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excited a limited supply of 21 million
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coins decentralization of a currency and
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freedom from government control this was
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the premise behind Bitcoin and why it
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would be a great changer for how we
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interact with each other financially but
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when you strip away all the budge words
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here's the reality Bitcoin has no
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intrinsic value no earnings no dividends
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if you think it has intrinsic value you
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are going to lose a lot of money in some
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way shape four maybe not on bitcoin but
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on some other thing its entire worth
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depends on people believing it's worth
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something more tomorrow than today
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you're hoping that you wake up tomorrow
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and somebody else says I will pay you
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more for that so you might sit there and
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say well you've said that before
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everybody keeps saying that it keeps
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going up in value that's what happens
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during hype look at the Tulips back in
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the 1600s why do those keep going up in
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value if Bitcoin feels familiar it's
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because we've seen these speculative
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bubbles many times before and we will
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never stop seeing them think about
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cannabis stocks like tillay which
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skyrocketed to $300 in 2018 before
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crashing into a141 a
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99.5% loss electric vehicle companies
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like Neo peaked at 6699 before plunging
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to 470 Workhorse going bankrupt tattooed
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Chef going bankrupt and going under what
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do these bubbles have in common a story
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that's too good to resist and prices
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that can't be justified but more
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importantly human envy and fomo people
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can't stand being the ones missing out
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on the skyrocketing price now I realize
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we're doing this video during a time
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when Bitcoin cannot stop going up so of
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course you can look at this going Paul
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you're wrong I could be wrong but let's
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understand what an investment is because
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a lot of people say I'm investing in
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Bitcoin and I always write immediately
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speculating in Bitcoin and guys there
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are other things that people speculate
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into that I've done artwork baseball
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cards these things are all speculative
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why they don't create anything they
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don't anything but when you buy a stock
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of a company that's generating cash if
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the market went away for that company
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tomorrow you would still have access and
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a claim to the free cash flow in the
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bank account and the assets of the
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business and until the stock market open
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again let's say 20 years down the road
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that business would continue to get more
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valuable as it drove revenue and profit
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but let's take away the value of Bitcoin
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how are you going to interact how do you
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know what your Bitcoin is worth before
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you buy something supporters claim that
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Bitcoin could one they replace fiat
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currency or rival gold as a store of
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value but there's no clear road map or
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economic Foundation supporting these
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claims as of now and people who try to
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say that what about gold yeah what about
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gold gold has thousands and thousands
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and thousands of years of evidence that
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is it has other uses besides just a
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backing of currency now we don't use it
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to back our currency anymore which has
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led to massive inflation but how is
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Bitcoin the solution for that when
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Bitcoin itself is valued in the very it
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wants to replace why was Bitcoin created
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it was created originally to keep
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transactions away from the government
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guys you think the government's ever
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going to allow that if the US government
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ever thought that people were getting
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away with defrauding them by using
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Bitcoin all the government to do is say
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bitcoin's gone it's done another thing
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that's interesting whenever I hear
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people talk about the merits of Bitcoin
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I say great tell me how you value
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Bitcoin and they list all these things
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about Bitcoin and I say okay you said a
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lot of qualitative things which is
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wonderful now let's change the price of
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Bitcoin by adding two zeros are all your
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statements still true yes they are okay
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let's take three zeros away are all your
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statements still true yes it's not an
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investment because if I look at a
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company like Microsoft and I name all
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the reasons why it could be a good or
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bad investment if I add two zeros to it
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it becomes a bad investment immediately
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those statements aren't all true if I
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take two zeros away those statements are
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even better but with Bitcoin as much as
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I hear people say the fun fals there
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there's limited Supply guys I can take a
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dump in a bag it's the only bag of my
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feces in the entire world does it make
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it valuable not necessarily because you
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have to have a use for that and you
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might sit there and say Paul you're
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missing it there's so much use for
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Bitcoin guys I own eight businesses
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upstairs I own a thousand Apartments I
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own luxury rentals around the world not
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one time ever in all of these things
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I've done has anybody said to me Paul do
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du accept Bitcoin not once now the
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internet there was a lot of Fraud and
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speculation on the internet didn't mean
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the internet was a fraud and that's why
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I always say crypto and its current
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Essence will not succeed it could change
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the US government came out and said
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we're making Bitcoin our official
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currency but my guess is then that the
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price of the currency will still drop in
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the long run why because it has to
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equate out and there's too much Euphoria
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around it there's too much fraud right
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now look at the people around you who
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love crypto if you've been around
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investing for a long time these are the
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people who always get burned let's look
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at some of the problems with this early
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adaptation of Bitcoin in 2022 FTX raised
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over $1.8 billion from investors
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promising safety and transparency behind
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the scenes founder Sam bankman freed
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funel customer funds to his trading firm
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alator research the result a bank Reed
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that temporarily wiped out billions in
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customer funds according to the SEC now
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they were all made whole at some point
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but it took a long time time and it took
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a rebound of bitcoin's prices for that
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to happen in 2023 bance and its CEO CZ
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who claimed to be the adult in the room
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pled guilty to federal charges of money
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laundering and failing to register as a
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money transmitter guys if it's supposed
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to be under the radar and away from
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government control why are these things
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happen the department of Justice's $4
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billion penalty marked one of the
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largest in US history and remember guys
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this led to everyone requesting that the
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government regulate crypto which
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absolutely melted my brain crypto was
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created to avoid all the government
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scrutiny all these things to avoid
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government interaction and then the
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crypto people said please come save us
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guys this is proof that the world of
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crypto is running around with their
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heads cut off they have no idea what
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they want it's purely a speculative
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asset it generates nothing just like
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artwork but at least with artwork I
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cannot go create another van go now you
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might sit there and say well there's
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only 21 million bit coins allowed okay
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but guys it's coding at some point if
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they need to make more crypto they'll
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figure out a way more Bitcoin if they
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don't they're going to create more and
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more cryptocurrencies which is what's
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happened over time at one point there
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over 20,000 cryptocurrencies out there
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in 2023 the FBI reported that Americans
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lost
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$5.6 billion to crypto scams alone with
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investment fraud accounting for 3.96
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billion of those losses the real cost of
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bitcoin isn't just in losses it's in the
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lives it disrupts the FBI highlights
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scams like Pig butchering where victim
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victims are groomed to invest their life
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savings into fake crypto Platforms in
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2023 retirees has lost over 1.6 billion
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to crypto fraud making the most targeted
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demographic crypto's decentralized
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nature makes it an easy playground for
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criminals from hackers to scammers now
00:07:51
bitcoin's decentralized nature is often
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celebrated as a technological
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breakthrough but it's also made crypto a
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prime tool for criminal activity and by
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the way that is going away there is no
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way the US government who owns crypto is
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going to allow crypto to have
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transactions without them knowing about
00:08:08
it you might not remember but there was
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a time when crypto was being promoted as
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taxfree you can sell your gains and
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guess what the IRS did no no no if
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that's an asset we want our change we
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want our cut between 2017 and 2021 bance
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the world's largest cryptocurrency
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exchange processed over $2 billion in
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transactions list linked to illicit
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activities including drug sales
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investment frauds and cyber attacks one
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notable example involved North Korea's
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lazarous hacking Group which laundered
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millions and stolen funds through the
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exchange this kind of criminal
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exploitation is not an isolated issue
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Bitcoin ATMs have emerged as a new tool
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for scammers frauders impersonate
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government officials or claim fake
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emergencies pressuring victims to
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deposit money into Bitcoin ATMs which
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are then transferred directly to
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scammer's wallets now guys you're going
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to sitting there going Paul everybody
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has scams cash has scams you're right
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but there's this new cryptocurrency this
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new way of giving money do you think the
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government's going to allow that to
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happen in even more common fashion look
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at cash for example if you go to a bank
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and you open an account and any given
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year you deposit or withdraw in excess
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of 10,000 you have to sign for it you
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have to make a report to the IRS about
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this that's how the government watches
00:09:23
you so you think they're just going to
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let you do whatever you want with crypto
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without any regulation whatsoever you're
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out of your mind the government does not
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want competition almost every crypto
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company has been implicated in some sort
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of fraud or some sort of SEC
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investigation nearly all of them in
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addition when you see assets being
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promoted by celebrities is that really
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an investment how often you see
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companies out there making commercials
00:09:49
for birkshire hathway how often you see
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Microsoft those guys making commercials
00:09:53
for buy our stock but celebrities like
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Matt Damon Tom Brady Kim Kardashian have
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all pushed Bitcoin and been sued for it
00:10:02
making it feel legitimate to the masses
00:10:04
FTX crypto.com these guys have even
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sponsored Sports Arenas and ran ads
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featuring A-list stars but these
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endorsements weren't about financial
00:10:13
advice they're about ly in their pockets
00:10:15
and doing more hype to promote the price
00:10:18
the history of Bitcoin has obviously
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been riddled with Rises and crashes guys
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is that what you want to see from a
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currency that is the fundamental
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backbone of the economy that everybody
00:10:27
thinks it is come on give me a break
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break in 2017 it hit a price of 144 in
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2018 it hit almost
00:10:35
$188,000 before crashing to the low
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3000s in 2019 and then rallying all the
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way to 60,000 in March of 2021 Falling
00:10:43
Again down to the low 30s recovering to
00:10:45
60,000 in October 2021 guys the ride's
00:10:48
been insane but when you compare this to
00:10:50
other assets Bitcoin is compared to the
00:10:53
price fluctuations simply don't occur
00:10:55
but just like every other thing in the
00:10:56
world when Bitcoin does well the Great
00:10:59
stories follow when Bitcoin does poorly
00:11:01
the bad stories follow but what I have
00:11:03
noticed is the correlation between
00:11:05
Bitcoin and QQQ a highly technologically
00:11:10
driven value driver in the US economy
00:11:13
the bull case for Bitcoin I believe is
00:11:15
best examined by following its most
00:11:17
popular and accepted experts and I put
00:11:19
experts in quotes there guys Michael
00:11:21
sailor has made the base case for
00:11:22
Bitcoin stating that it'll account for
00:11:24
7% of global wealth which each with each
00:11:27
coin being worth $13 million 2045 guys
00:11:31
if you bought a piece of real estate
00:11:32
that you wanted to be worth x amount of
00:11:34
dollars you know what has to generate
00:11:35
every year in profit to do that stock
00:11:38
same thing but to get to those levels
00:11:40
would require 29% returns per year for
00:11:43
the next 20 years his bull case calls
00:11:45
for almost $50 million per coin and
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accounting for 22% of global wealth by
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2045 but guys remember this has nothing
00:11:54
to do with fundamentals you might think
00:11:56
it is it is not stop convincing yourself
00:11:59
otherwise the best part is when I hear
00:12:01
crypto people say they don't just they
00:12:03
just don't understand I don't hear
00:12:04
Warren Buffett saying that I don't see
00:12:05
Howard Mark as saying that I don't hear
00:12:07
any of the smartest investors who have
00:12:10
the track record of doing so great over
00:12:11
a long periods of time you know what
00:12:13
they do they teach but when I see on
00:12:16
Twitter oh they just don't understand
00:12:18
what don't we understand that every
00:12:19
investment is the present value of all
00:12:20
future cash flows and Bitcoin has no
00:12:22
cash flow the Dynamics that make up
00:12:24
Bitcoin reaching these prices that
00:12:26
microor has talked about include a fixed
00:12:28
supply of only 21 million coins Global
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accessibility and resistance to
00:12:33
censorship and manipulation which will
00:12:35
then lead Bitcoin to become as valuable
00:12:37
as gold which would make it worth $13
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trillion now guys this journey also
00:12:43
includes a new group of buyers like
00:12:45
asset managers countries major investors
00:12:48
buying into Bitcoin I think part of the
00:12:50
reason my personal opinion is they just
00:12:52
don't want to miss out because so many
00:12:53
people are demanding it give the people
00:12:55
what they want included in this mix are
00:12:57
wealthy individuals with billionaires
00:12:59
claiming it's common for billionaires to
00:13:00
have 1% allocation of Bitcoin maybe so
00:13:04
gold holds 3.9% of global wealth and
00:13:06
Bitcoin is just. 35% and if it grow to
00:13:09
just 3% still below gold the market cap
00:13:12
would be 20 trillion and push the price
00:13:14
to 1 million per coin but guys again
00:13:17
there's no fundamental reason behind
00:13:19
that just like there's no fundamental
00:13:20
reason behind gold yet we have thousands
00:13:23
of years of data to show that gold has
00:13:25
an ulterior use besides just being used
00:13:28
at backing for for currencies but what's
00:13:30
amazing about all this is it's all these
00:13:33
speculators who are just relying on
00:13:35
other people to see the value and I see
00:13:37
that on Twitter all the time look at it
00:13:39
this way only this many people own
00:13:41
crypto own Bitcoin imagine when the
00:13:43
masses see it that is not a fundamental
00:13:46
investment case that is purely the
00:13:49
greater fool Theory somebody else will
00:13:51
pay more for it than I did claiming it's
00:13:53
basically digital gold and because of
00:13:55
that it'll command the same percentage
00:13:56
of global wealth that to me is not
00:13:59
investment thesis it's a hopeful pipe
00:14:01
dream The prominent investors Howard
00:14:04
Marx Warren Buffett Charlie Munger monis
00:14:06
P Michael bur they talk about trading it
00:14:10
they sit there even bur talks about
00:14:11
trading it but they have skepticism
00:14:13
towards Bitcoin and cryptocurrencies
00:14:15
Buffett often referred to as the Oracle
00:14:17
of Omaha has criticized Bitcoin for its
00:14:19
lack of intrinsic value stating
00:14:21
cryptocurrencies basically have no value
00:14:23
and they don't produce anything he
00:14:25
further emphasized his stance by
00:14:27
remarking I don't have any Bitcoin I
00:14:30
don't own any cryptocurrency I never
00:14:32
will now a lot of people tell me Well he
00:14:33
said the same thing about tech no he
00:14:35
never said he never will he said he
00:14:36
doesn't understand it and therefore he
00:14:38
doesn't buy it but now he understanding
00:14:40
more tech companies like apple he
00:14:42
started to buy some Charlie Munger
00:14:44
Buffett's longtime business partner was
00:14:46
even more forthright in his condemnation
00:14:48
of Bitcoin he has described it as
00:14:50
worthless artificial gold and liking its
00:14:53
trading to just dementia Munger has also
00:14:55
compared Bitcoin to rat poison and
00:14:58
criticized the crypto cryptocurrency
00:14:59
market for its association with listed
00:15:01
activities monus P very person we've
00:15:04
interviewed on this channel an investor
00:15:06
known for his adherence to Buffett's
00:15:08
value investing principles shares a very
00:15:10
similar Outlook he's expressed doubts
00:15:12
about bitcoin's future aligning with
00:15:14
Buffett Ander views on our Channel he
00:15:16
said Bitcoin and crypto is going to zero
00:15:20
collectively these investors critiques
00:15:22
highlight concerns about bitcoin's
00:15:24
speculative nature and its perceived
00:15:26
lack of fundamental value CAU against
00:15:29
its inclusion in traditional investment
00:15:30
portfolios guys I hate to be a snob but
00:15:34
I've never met somebody that I respected
00:15:36
in the investment world who said they
00:15:38
like Bitcoin everybody I know who says
00:15:40
they like Bitcoin is somebody I would
00:15:42
never ever talk to about investing I
00:15:44
just laugh about it by the way do you
00:15:45
many people tell me they're a crypto
00:15:47
expert like every single person talks
00:15:49
about crypto says they're a crypto
00:15:50
expert that's really odd to
00:15:52
me if you still want to get into it
00:15:55
treat it as a gamble not an investment
00:15:57
day trade it we believe in trading here
00:16:00
trade it as an asset that's fine by me
00:16:03
but diversify into traditional
00:16:04
Investments like ETFs or assets with
00:16:07
intrinsic value such as ETFs that are
00:16:09
driven by S&P 500 always conduct
00:16:12
thorough research and never trust
00:16:15
unsolicited investment advice especially
00:16:17
from social media or unregulated
00:16:19
platforms the Bitcoin story is
00:16:21
absolutely captivating but the evidence
00:16:24
to me is clear it's a speculative bubble
00:16:27
fueled by manipulation fraud and hype
00:16:30
from ftxs collapse to bance's record
00:16:33
fines the crypto ecosystem is riddled
00:16:36
with scams designed to benefit a few at
00:16:39
the expense of the many don't fall for
00:16:41
the hype understand what you're buying
00:16:44
and just because you buy it with some
00:16:46
sort of good story doesn't mean you're
00:16:49
understanding what you're buying it has
00:16:50
to be coupled with some sort of
00:16:52
fundamental analysis if I've convinced
00:16:54
you that there's a better way to invest
00:16:57
join our community of like-minded invest
00:16:58
ERS we have a community who share ideas
00:17:01
and support each other as we navigate
00:17:02
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market dips it will be the best
00:17:24
investing decision you've made all year
00:17:26
and guys it truly is an investment thank
00:17:28
thank you for your time
