The Future of Cryptocurrency: 6 Experts' Opinion on Cryptocurrency Investing

- Robert Kiyosaki
Jeff Booth
[Music]
we're talking about bitcoin today so i
got into bitcoin when it was it dropped
went from 20
and then i'm gonna basically watch the
trading formula when it dropped down to
i think seven
i moved back up so i came back in so i
went back in at nine so when somebodyw
says what do you think about bitcoin i
said i'm very happy
and they said what if it comes back down
i said then i'll buy more
that's a good answer that's a really
good answer yeah but i don't really know
much about it so when i was listening to
you and speak up on whose program it was
your depth of knowledge and why bitcoin
is the money is the future of money
would you mind going into that because
i'm just a guy who likes to make money
but i don't understand the point
sure and i think first off i need to say
it's way bigger than money for me it's
it's
what i did after the book i was looking
at these two forces and everything i
said in the book is is absolute facts
we have technology that's making things
cheaper and we have a system that's
trying to make things more expensive and
so what i was looking for is a solution
any solution could the existing system
change itself
to provide abundance to humanity
or would this existing system fail
through
war revolution everything else like it
has done in the past
and i looked and i wanted to actually
find a solution out of the existing
system but what i realized is is
system changes why kodak doesn't change
themselves why blockbuster doesn't
change themselves there's too much
inertia in the system
and so
out of everything that i found then i
found uh then what i
and i was already in bitcoin but i
became
all in no i don't know i say all in it's
not all my wealth but it's but i was
i thought this is going to be the best
thing to be able to transition humanity
from one system to another system and
the new system would be a way better
upgrade for humanity it would be
beneficial for everybody why why is that
why is that what to use as a technology
guy there's a lot of pieces to this
this question to do and it's quick
exactly a lot of pieces to this question
but first the scarcity so you either
have abundance and money and scarcity
and everything else
where you have scarcity and money and
abundance and everything else we are
moving to a more and more digital world
where prices should come down as things
become information
that means that you either have you have
two choices
if you run an inflationary system
which
you create more money out of nothing
against that system which is going on
with the fed and the treasury and
exactly that's the world we live in
today
then what you do then what you do is you
you concentrate all power in government
unilateral it just keeps on moving 26 to
gdp today is government spending and it
has to structurally get more and more
and more you centralize all control in
government
and proven throughout history if you
centralize all control and government
it looks really bad for human
humans communism exactly look if you
Anthony Pompliano
look at the recent price drawdown like
you just described right so in 2017 we
went from a thousand to twenty thousand
dollars it took about a year to draw
down to thirty two hundred uh that was
the bottom of this past bare minimum oh
don't don't make me feel
[Music]
and so from terrible 200 uh basically
between 2019 2020 and into 2021 it then
peaked again uh over 60 000 uh and then
recently fell again to uh somewhere
between 28 000 and 30 000 was kind of
the the most recent uh low and i think
to your point people see this high
degree of volatility that scares the
hell out of them but one of the beauties
of bitcoin being this decentralized
digital open system is that you can
actually go look on the blockchain and
you can see exactly who's buying and
who's selling right it's an open
transparent ledger and so when you go
and you look at those on-chain metrics
or on the blockchain
what you find is that entire drop from
60 down to 30 it was all new
investors new people in the market right
and you can tell that by how long have
they been holding on to the bitcoin that
they were selling um and so when you see
that all the new people are selling
you'd ask yourself well who's buying it
it's all the people who've been around
for a really long time right right
they're saying hey if you just got here
and all of a sudden a little bit of
volatility spooks you i'll surely buy up
your bitcoin at a lower price right and
so what you have is you just have
weekend selling to strong hands or kind
of new people selling to old people um
and so the people have been around a
long time this is nothing new going into
Robert Breedlove
2031 which as we left off earlier
uh i would expect the u.s money supply
to expand from 20 trillion ish today to
about 500 trillion in the next 10 years
i expect global m2 to
expand roughly 12x
from around 100 trillion to about 1250
trillion 1.25 quadrillion
uh and the difference there is that a
lot of the weaker international
currencies will have collapsed into the
dollar so the dollar will actually have
grown in purchasing power
overall
and i think by this time so going into
2031 let's say
that bitcoin will have continued its
growth trajectory
it will have
played out another one of these price
cycles possibly uh its price cycle will
have broken and it just gone into a long
slow grind upwards as people realize
it's a game of accumulation
and i think bitcoin by this time
will have reached about 20 percent of
global purchasing power
so this would imply
bitcoin's market cap in 2031
to be about 250 trillion dollars
so that's about one-fifth of global m2
stored in bitcoin
now
accounting for inflation
that means bitcoin's market cap and
today's dollars would be about 20
trillion
so in 2031
this is a very bright line to
distinguish i think bitcoin
by the year 2031
will be north of 12 and a half million
dollars per bitcoin
jesus
but a half million per coin over half a
million but adjusting for inflation
it will only feel like
north of one one million dollars per
bitcoin in 2021 because the dollar will
have lost so much of its value by then
12.5 million dollars will spend like 1
million
the internal revenue service is aware
that virtual currency see
you bitcoin guys they got you got target
Tom Wheelwright
on your back now they know you got some
money and they want it
well they say a couple of things that i
think's really important first of all
that any time you use or trade
your virtual currency that's a taxable
transaction so i mean let's let's give
an example let's say that bitcoin became
a you know normal trade you go buy
groceries when you bought groceries with
bitcoin that would be taxable
because it would be considered a trade
for bitcoin for us dollars so every time
you spend bitcoin every time you sell
bitcoin that's
all of that is taxable and here's the
thing so on your tax return now
there is a box you have to check to say
did you trade bitcoin well that means
did you do anything other than just buy
it
okay if you bought it you don't have to
mark that box but any other use of it
you have to mark that box if you don't
mark that box robert it's a felony
this is this is not a civil penalty most
things on a tax return are just civil
penalties right they're just okay paid
the penalty get my wrist slapped on
and i go on my way not with this one
this is a felony they will come after
you if you uh don't mark that and in
fact you should have marked it trust me
they are coming after i mean us because
i've done very well with bitcoin and
ethereum but tom knows my tax
strategy
i buy but i never sell
and if i paid somebody in bitcoin what
would happen then to him that would be
taxable so if you pay them the person i
pay
it could be taxable both for you and for
the person you pay that's right
so as long as as long as i'm buying my
bitcoin
after i've paid all the taxes which i
don't pay anyway
and i store the bitcoin into my
asset column and it sits there it's like
my gold and silver right as long as i'm
not using it it's not taxable it's
actually just like the gold and silver
so the same thing would happen if you
went and used silver or you know silver
gold to buy something that would be a
taxable transaction too so it's very
similar to gold and silver uh the one
difference is is that if you hold
bitcoin for over a year
you do get capital gains rates so you
get to tax that at 15 or 20 instead of
ordinary income gold and silver have a
different tax rate than that so you just
that's the one primary difference
between the two what is this thing
called d phi so d phi is a short for
decentralized finance basically it's
Jeff Wang
mimicking real life financial services
on blockchain and with bitcoin the main
mimic of financial service there is just
currency right it's a currency and it
can be traded
now with
2020 basically the decentralized
finance focused on borrowing and lending
first so people could deposit money for
interest rates and borrow for and paying
an interest rate on top and also we
talked about the uh automated market
makers which was the uh the liquidity so
people can trade stuff as well
now what we're seeing in 2021 are these
new developments of other financial
services so you're starting to see like
options trading you're seeing
uh insurance
you're seeing hedging you even see hedge
funds like urine finance that ecosystem
is really covering a lot of the
different ideas in finance and basically
all these things are being developed and
represented on chain so these are all
financial services decentralized
on blockchain that you can use
if you have a wallet that's it all i
understand about blockchain it's more
secure and more transparent
and less manipulable than what jp morgan
and goldman sachs were doing is that
your understanding too yeah i think if
we take a step back blockchain again is
just
um nobody owns
the infrastructure there's no central
bank there's no country
a bunch of different servers are out
there running at the same time and they
all own the same code the same chain the
same history so it's almost impossible
to come in and then break the system or
or develop a new code that like
catastrophically ruins the whole
ecosystem
so so what that means is you can build
new apps on it you can build new
services and there are
malicious services on there for sure but
overall
things that work the things that are
verified become adopted and you have
this like kind of
world computer where everybody can go in
and create their own app that everyone
could use
and again it moves fast because
something works
or something works better everyone
migrates so that everyone uses that
service instead you know 21 million
bitcoin
is it theoretically possible
that that could be the money for the
rest of the world can it keep expanding
out i mean i know that thing called
Raoul Pal
satoshis but i don't know what they are
but can they keep go
keep dividing
yes well it divides down to eight
decimal places and one
the eight decimal place is a satoshi
so it's divisible which means that it's
expandable so you know you could
theoretically get to one satoshi
equaling one dollar i mean that's a huge
number
um the reality is
is we talked about before about this
network effects with this but it also
applies for institutional money managers
and corporate treasurers because if they
have it on their balance sheet they're
outperforming everybody else so it
encourages other people to get involved
because they need to catch up
then the market cap goes up so it goes
from 350 billion to a trillion now the
trillion dollars it means blackrock can
get involved so they get involved and
the market cap goes up to two trillion
dollars and that brings in the sovereign
wealth funds and it goes up to five
dollars and as it broadens out in its
number of users the volatility comes
down
and it becomes
a more usable form of money right now
it's basically
a store of value plus a call option on
the future on the future of financial
technology which is why we've got such
this racy
it has
eventually that trajectory will flatten
out and it will look much more like gold
which is a stable store of value but
right now we're at the exciting part
where we get two parts of this the store
of value
and the future of technology that's
amazing