The Bitcoin price jumped nearly $4,000 in minutes today as the richest (and arguably the smartest) man in the World put one word in his twitter bio early this morning….
He followed that up with the tweet..
In retrospect, it was inevitable
Now, apart from just screaming I TOLD YOU SO to all of you who have been reading this letter for months…. :)
I can’t UNDERSTATE the significance of this moment…
I know, it’s just a twitter bio.
But oh my goodness is it so much more than that.
Let’s break down why this is so incredible, one step at a time.
1) The entire World has been exposed to the benefits of decentralization, overnight.
If you haven’t heard about what is happening with GameStop right now you should probably use the internet more…
I wrote about it yesterday for those who have been busy, go read it.
Yesterday, we truly hit a unique point in human history.
Censorship has been rampant for months, with Trump’s twitter account being the prime example.
However, yesterday, this censorship went down to the core beliefs of society.
The thing that holds it all together.
Our money.
A group of people on reddit (r/wallstreetbets) decided to buy the stock GameStop, and due to a variety of market factors, the price has gone vertical.
Instead of allowing this to happen, as a free market should, Wall-Street stepped in.
They bullied RobinHood and many other exchanges into literally PREVENTING anyone from buying the GameStop stock (sell only).
The price crashed.
Real people lost a TON of money.
It’s absolute insanity, and one of the most unfair and ridiculous things I’ve ever laid eyes on.
However, it has shown the world’s brightest spotlight on the true issue that I’ve been yapping about for months.
The chairman of the WallStreetBets community put it best with this tweet..
“They can only control us because we use their currency.”
The fact that Bitcoin is just sitting there, off to the side, while all this ridiculous, unfair manipulation is happening right in front of the World’s eyes….
Is one of the craziest things I’ve personally ever seen.
For those that are new to this letter, Bitcoin has no CEO, no one in charge. It is completely decentralized.
There is literally zero way to manipulate it, which is what makes it so beautiful.
2) Elon Musk is not a dumb guy, but he’s been playing dumb.
Ever since Elon Musk started pretending he didn’t know about Bitcoin, I knew something was up.
Let’s just back WAY up for a second.
Guess what the STATED MISSION of PayPal was (Elon Musk’s first company that he built…)
Yep, you guessed it, to create a DIGITAL CURRENCY to replace the U.S. dollar.
That was Elon Musk’s life mission, back in 1999, 10 YEARS before Bitcoin was even invented.
And you’re telling me he doesn’t understand Bitcoin?
Give me a break.
But that’s what he’s been trying to convince people of…
It’s hilarious…
He asked Michael Saylor pretty average questions about it publicly on twitter…
He tweets about a random joke coin called DogeCoin…
He basically just avoids the issue or plays dumb altogether when asked about it.
And then, all the sudden, boom.
Bitcoin in his bio + the “inevitable” tweet.
I’m sorry, but Elon owns Bitcoin now.
Probably many Billions of dollars worth.
There is no way in actual hell that Elon didn’t buy a couple billion worth AND THEN put that word in his bio.
He’s NO DUMMY.
He saw what Michael Saylor did, buying all that BTC and effectively 10xing the value of his company (MicroStrategy)
My guess is Tesla and SpaceX now have Bitcoin on their balance sheets.
And if not, Elon owns a ton personally.
Time will tell.
3) It’s deeper than just the money here.
Elon doesn’t need more money.
He’s already the richest man in the World.
If ANYONE has shown that his goals and aspirations are NEXT LEVEL it’s Elon.
Here are some of his stated goals…
Man on MARS by 2024.
City of 1 Million+ people on Mars by 2050.
Electrify the entire world and rid the world of gasoline vehicles.
Pretty tiny goals, huh?
By tweeting, “in retrospect, it was inevitable” I believe that Elon means a lot more than just him putting Bitcoin in his bio.
I think he means that Bitcoin itself was inevitable.
And I tend to agree.
4) As I’ve stated in previous letters, the global financial system is hanging by a thread.
Interest rates are at zero (and negative in many countries).
Global debt is soaring completely out of control, the governments aren’t even trying to hide the fact that taxes no longer come anywhere close to covering it.
Technology is deflationary in nature, and accelerating at a pace that no one can really comprehend.
In response, the governments of the world are printing money out of thin air in order to fund the never ending stimulus that is necessary to keep the wheels on the bus.
AND, a global pandemic accentuated all of these cracks in the system.
Without Bitcoin, I would truly be very worried about how the next 10+ years would play out.
For example, what happened yesterday with GameStop is NOT new in the history of the World.
In Weimar Germany in WW1, the currency went through a hyper-inflationary collapse.
The German Mark LITERALLY wasn’t worth the paper it was printed on.
It was so bad that waitresses would stand on the tables and yell out the new menu prices halfway through your coffee, because it now cost more Marks to purchase the same food.
Right before all of that happened, guess what the people were doing?
You guessed it, gambling in the stock market.
People were desperate to preserve their purchasing power, and it was clear that there was so much funny money floating around that people started doing crazy things.
The German stock market went through the ROOF in the last days of this, but it didn’t matter, because even though stocks went up up up up the value of the CURRENCY went down much faster.
If you don’t believe me, go read about it, it really is a fascinating topic.
5) The great experiment
The parallels to what is happening right now are shocking, but honestly, not surprising.
Many people don’t know this, but the US dollar we are using today, which seems like its been here forever, is just an EXPERIMENT.
In 1971, we removed ourselves from the Gold Standard, which effectively meant that we created a new type of financial system.
Instead of being backed by something physical, something with scarcity, all of the currencies would now be pegged to the US Dollar.
What’s the catch to that?
Unlike Gold, you can just keep printing more US dollars out of thin air.
That’s why a hamburger was 20 cents in 1971 and $15 today…
And it’s all coming to an end folks.
The US is the World Reserve Currency.
That means that everyone is pegged to our dollar, and it basically controls the economies of the World.
Here’s a graph of other World Reserve Currencies, and how long they lasted.
As you can see, this isn’t the first time people have tried to “mess with the money”.
Anytime someone gets this ridiculous power of being able to print as much money as they want, human nature takes over.
The USA has had this privilege for nearly 100 years now, and the cracks are starting to show.
Ever hear the term “it’s a bubble”? That’s because it is. It’s a global bubble 100 years in the making.
6) The pin to the bubble.
Back to Elon.
He says “it was inevitable”.
Hmm…
You don’t think he knows the history of the reserve currencies?
You don’t think he knows about Weimar Germany in the 1920s?
Of course he does.
My belief is that Elon believes, and has believed for a long time, that Bitcoin really is the pin to this bubble of a financial system.
There’s only 21 million.
It’s the scarcest asset in the World, it’s not even close.
Its digital in nature, you can just as easily send $100 Billion worth of Bitcoin as you can $1.
And, it’s totally decentralized, something that the World is LITERALLY SCREAMING FOR on a day to day basis on every social media channel (that isn’t actively censoring them and proving the point further).
Elon Musk knows all of this, and his tweet and change of bio today could not come at a more important moment in the History of the World.
—-
So what now?
Buy some Bitcoin, and hold on tight.
It’s not going to be a smooth ride to $1,000,000 a coin (although it is headed there, and farther).
Like I’ve been saying, there has never been anything like Bitcoin.
People constantly underestimated Amazon, Facebook, Google, all of the big network effect businesses.
Financial advisors with fancy degrees kept saying “it’s a bubble” and “you should diversify”.
What they missed is that Network Effects, once they reach this size, are nearly impossible to stop.
At nearly $800 Billion in market cap, Bitcoin is a monster that is far past the “stoppable” point.
That doesn’t mean that people won’t try.
Eventually, governments may even try! (But we’ll likely be at 500k a coin by the time they realize what’s happening).
Even then, there’s nothing they can do.
I could write on for another 3 hours on this topic.
It is truly fascinating and today was honestly one of the happiest moments of my life, waking up to realize that the smartest man in the World GETS IT, and even though he likely got it (or invented it himself let’s be honest) long before me, the fact that I’ve been writing about this for a long time now feels pretty good.
Stay safe out there, hold on to your damn coins like your life depends on it.
See you subscribers on Monday.
Kale
P.S. if you are reading this far you should 100% be subscribed to this letter. It’s free for 30 days and if you would have been reading it back in July you’d be up 300%+ on Bitcoin right now.
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