Making Sense of Bitcoin and Unpacking the Crypto Craze
Transcriber: nvidia/parakeet-tdt-0.6b-v2, sat-12l-sm, and large-v3-turbo
|
Time
Text
Hey everybody, what is happening with Bitcoin?
What is the status of our economy?
We go through the cryptocurrency craze and we dive deeper into what might be coming, which is inflation.
Email us your questions, freedom at charliekirk.com, to contact us directly.
If you'd like to support this program, go to charliekirk.com/slash support to support our team of editors, researchers, fact checkers at charliekirk.com/slash support.
The economy is on our mind.
Cryptocurrency is rising.
We dive into it.
Buckle up, everybody.
Here we go.
Charlie, what you've done is incredible here.
Maybe Charlie Kirk is on the college campus.
I want you to know we are lucky to have Charlie Kirk.
Charlie Kirk's running the White House, folks.
I want to thank Charlie.
He's an incredible guy.
His spirit, his love of this country, he's done an amazing job building one of the most powerful youth organizations ever created, Turning Point USA.
We will not embrace the ideas that have destroyed countries, destroyed lives, and we are going to fight for freedom on campuses across the country.
That's why we are here.
I still get excited to get a package in the mail, don't you?
Well, after spending some time on the phone the other day speaking with Dr. Douglas Howard, the doctor who formulated Balance and Nature's blend of fruits and veggies, he sent me my first month's supply.
I've actually been taking Balance of Nature for quite some time, so listen carefully.
So now I'm taking responsibility for my own health.
With Balance and Nature, I get 10 servings each day from a proprietary blend of 31 different fruits and veggies.
10 servings each day.
When I'm eating my lunch, I have my Balance of Nature capsules, and they're pretty awesome.
For me, there's no other way I could get even close to getting this level of valuable and wholesome nutrition.
I just pop a few capsules and I'm good for the entire day.
Please join me in the quest for your best health.
I want to make it easy for you to experience the Balance of Nature difference for yourself.
Order today, and as a new preferred customer, you'll receive an additional 35% discount and free shipping on your first Balance of Nature order when you use discount code Charlie.
Call 800-2468-751 or go to balanceofnature.com and use the discount code Charlie.
I'm going after my best health.
What about you?
Balanceondnature.com.
Use the discount code Charlie.
What on earth is causing this increase in Bitcoin?
What is Bitcoin?
What is cryptocurrency?
Now, some of you already know what it is and some of you own it, but you probably actually don't know how it works, to be honest.
I've met a lot of people that say, yeah, I own a lot of crypto.
I'm like, okay, that's terrific.
Can you tell me actually how it works?
And look, I even have limited knowledge to the extent of how the technology works, but I understand enough of how it works at least pragmatically, at least how we use it and how its limitations and its difficulty.
The Biden administration is now trying to pass a $1.9 trillion stimulus bill, $1.9 trillion.
So where are we right now as far as our economic conditions?
Well, if you look at the stock market, everything looks great.
Record highs, booming indexes.
I call this stock market a sugar high.
This is not based in reality.
Valuations have gone to unrealistic limits.
We have tens of millions of people still underemployed or unemployed.
Here are some facts just of where we are right now in the economy.
In the last year, we have seen the largest increase in personal income in 20 years.
In three months, there's been more increase in our deficit than the last four recessions combined.
The Federal Reserve, the Fed, in six weeks has bought more treasuries than they did in the last 10 years, six weeks.
Corporate borrowing, which traditionally goes down in a recession, went up in the last year, $400 billion.
Borrowing went down in 2008, just to juxtapose that.
In 2018 to now, M2 money supply grew 25% more than nominal GDP.
So the M2 money supply grew by 25% more than our actual growth.
We have seen massive liquidity inputs.
And these are not investments.
These are transfer payments.
We are borrowing from our future to try and keep the current unrealistic economic model alive.
It's a long-term debt cycle.
We are heading to 4% to 5% inflation easily.
For the first time in recorded history, international net investment into China is greater than international net investment into America.
First time in recorded history.
China is basically wide open, and China has not in the last two years embarked on massive central bank quantitative easing.
We are borrowing against ourselves to keep our addiction to cheap money alive.
The central bank has nearly destroyed the price of money.
So the Biden administration is going to have a couple choices.
They can either admit that we are going to stay in this long-term debt cycle and inflate our way out of it with very little growth, which is really good for people that have debt.
Why do you think corporations went and borrowed $400 billion in the last year?
You know, the best way to forgive debt?
The best way to forgive debt is through inflation.
By best, I mean best for the borrower, not the creditor.
The easiest way, I should say, to forgive debt is when your dollar is next to nothing.
It's worthless.
We are on the verge of not necessarily an economic collapse, but economic chaos, where we will have dozens of different issues that we will simultaneously try to be addressing at once.
Now, mind you, I think we are up against some pent-up demand.
If we can open our economy in the next 30 to 60 days fully and completely, a lot of these problems will naturally be solved.
But there is one indicator that is fascinating to me that goes to show that there is a growing distrust in our institutions beyond just the political elite.
We're talking about the thing that all of us use every single day, dollar bills.
As the China virus spread across the globe in the spring of 2020, Noble Gold investors flocked to precious metals as a financial safeguard.
Gold is up more than 30% since March of 2020.
Silver surged more than 50% over the same period, reflecting the correlation among precious metals during the time of financial volatility.
But providing financial protection is not the only role that precious metals play in this fight.
Precious metals also have broad applications in the medical field that go well beyond the dental uses most people associate with their value.
But providing financial protection is not the only role that precious metals play in this fight.
Gold and silver nanoparticles are an essential part of virus research and prevention.
As the China virus mutates, science will have to adapt its prevention methods accordingly, and precious metals will continue to stay in demand.
As for me, I will continue to trust the team at Noble Gold, a leading authority in the precious metals industry.
If you have the kinds of questions I do about your financial mix and how to best leverage precious metals as a hedge against market uncertainty, I encourage you to visit NobleGoldInvestments.com and call their team for a free gold guide called Noble Gold Today and tell them Charlie Kirk sent you for a special gift with all qualifying transfers.
We've been getting a lot of emails from freedom at charliekirk.com of people saying, Charlie, should I buy Bitcoin?
I say, slow down.
First, let you have to understand what Bitcoin is before you even think about purchasing it.
Bitcoin, as of the broadcast right now, is worth $46,485 per Bitcoin.
Just in that sentence is going to be one of the problems Bitcoin has to overcome.
Why?
Because I'm valuing Bitcoin in dollars.
That's why.
So Bitcoin is what is called a cryptocurrency.
Started by someone, we don't actually know who this guy is, Satoshi Nakamoto.
It could have been a group of people.
It could have been a pseudonym.
We don't know.
It's revolutionary in more ways than one.
And you could see why the central bankers have hated this.
Russia tried to ban it a couple years ago before actually just deciding to completely embrace it as a way to try to send money quickly outside of the international banking system.
But what exactly is Bitcoin?
Well, it's open source.
So you actually, it has a decentralized ledger.
You can see every Bitcoin transaction that happens in real time.
Millions of them that are happening.
It's all open sourced.
And also, it's anonymous.
Now, it's not anonymous if people can trace your Bitcoin wallet ID number to you.
But if you have an anonymous Bitcoin wallet, no one knows who's actually doing these purchases.
This is different than a normal bank where you can never see the ledger of a bank.
You don't know who their depositors are.
You don't know how much money they actually have.
But the brilliance of Bitcoin in the blockchain is that anyone can create a Bitcoin.
If you have the coding capacity or even the amount of power it takes, and I'll get to that in a second, to have high computer processing power, anyone can create a Bitcoin.
A Bitcoin is really just a series of numbers.
But when you have millions of people trying to create the next Bitcoin, and a number is anywhere between 40 to 55 digits with numbers and letters, it takes an extraordinary amount of computer processing power, a lot of energy to be able to guess what the next Bitcoin is.
And I'm going in very much layman terms of how I'm describing it.
There's a much deeper technological coding infrastructure behind this that even goes beyond my above my head.
However, owning a Bitcoin is like owning a specific number.
It's within the blockchain.
It validates it.
It's open source.
People can say that that number that you own cannot be replicated or duplicated.
The brilliance, though, of what Bitcoin was able to accomplish and solve is that the more people that try to actually create Bitcoin, the harder it becomes to create a Bitcoin.
And this was supposed to be a hedge against inflation.
For example, the more you try to create Bitcoin, the more energy it's going to take to actually do that.
Basically, the mining difficulty becomes exponentially harder with the mining power that is needed as more people get into the space.
It was supposed to be a hedge against inflation, and so far it's worked.
If I was doing this broadcast one year ago, today, Bitcoin was about worth $9,904 a piece.
It is now worth $46,485.
How is that possible?
The answer is actually has very little to do about Bitcoin and a lot to do about the side of circumstances around us.
People no longer trust the fiat currency, which is Latin, that means by decree, because I say so.
It's no longer backed by gold system that we have.
The gold standard, which predated the fiat currency system, restricted the amount of dollars and the money supply that could be introduced into the economy.
There's only so many gold bars.
There's only so many dollars.
And so the way it used to work is you'd have one gold bar, you go to the bank, you trade in your gold bar for $1,000.
They protect your gold.
You get the dollars.
You can do what you want with it.
Created a stable currency.
Do you know what a stable currency also used to be a hedge against?
Out-of-control government spending.
You see, it's harder to engage in deficit spending.
It's harder to declare endless and reckless wars when you do not have a fiat currency.
When you can't go to the Fed and say, hey, we just need a couple trillion dollars.
Don't worry, it won't happen again.
Well, you do that a couple times, then you're all of a sudden going to have a quickly deteriorating currency.
So what this tells me right here, the fact that Bitcoin is now worth $46,485, is that people are saying, I trust the computer that spits out a number more than I trust the Federal Reserve.
That should be a fire alarm, everybody.
Some people say Bitcoin's a bubble.
Some people say it's completely speculative.
That might be true.
There's other cryptocurrencies that I think are absolutely speculative.
But explain to me this.
How is the dollar not speculative?
How is the dollar not built on faith and trust?
When it comes down to it, our dollar is basically as good as our military.
It's that simple.
Our dollar is only as strong as the brute force that we have to protect it.
It's really that simple.
And the psychological trust people have behind it.
When you introduced multi-trillions of dollars into the system and not even do investment, it'd be one thing if every one of these stimulus packages, they were doing massive infrastructure projects, rebuilding highways, rebuilding airports, actually improving the condition of the country.
Instead, these are transfer payments.
These are we're going to go borrow from the 2040 generation that hasn't even come to age yet so that we can pacify our own selfish interests today.
It's that simple.
So what the rapid increase of value around Bitcoin tells us is that we are on shaky ground.
Now, what's amazing, though, is that you know where people used to go to when money was created out of thin air is gold.
Now, gold is up, but gold is up nowhere as much as Bitcoin.
If you go to the price of gold over the last year, it's up.
It's up significantly.
In fact, gold is right around, what's it trading at today, 1,800, where a year ago is around 1,600.
But that's an expected increase.
That's about, what, about a 20% increase, more or less?
15%?
Pretty good.
Nowhere near the increase that we've seen with Bitcoin.
Why?
It's because the economy is now being driven by late 20 and early 30s somethings.
We saw this with GameStop.
We saw this with trading volatility.
We saw this with a short squeeze.
We see this with housing prices.
And yes, we now are seeing this with Bitcoin.
And you have 32-year-olds that are earning a decent wage that are saying, I trust an anonymized computer program more than I trust the Federal Reserve.
What's going to break the back of the U.S. dollar and what is going to only increase the price of Bitcoin is when more and more companies start to accept Bitcoin as a means of currency.
Expedia already does.
Microsoft is beginning to.
Certain car dealerships are saying we now accept Bitcoin.
Now, the only problem with that is that Bitcoin fluctuates so much day by day, it's not stable.
I think they're going to be able to figure that out.
So the question is, is Bitcoin a stock or is it a currency?
And the answer is we don't know.
What we do know, though, is that Bitcoin is behaving the exact opposite of the US dollar.
For example, the first ever purchase of Bitcoin was for two pizzas.
Satoshi Nakamoto bought two pizzas for 10,000 Bitcoin.
10,000 Bitcoin.
Now, my math is a little bit rusty, but if I'm doing the numbers correctly, 10,000 Bitcoin times $46,500, I believe, is $46.5 million.
Is that right?
Might be more, actually, might be $465 million.
I think it's $465 million.
Connor will do the math.
So the point is that Bitcoin is getting more valuable while the dollar is getting less valuable.
It's inverted.
It's the opposite of what the current currency model is showing us.
So what does that mean for you?
What does that mean for you listening right now, if you're driving in your car or listening on the podcast, or if you're listening on the live stream?
Because this impacts all of you.
The answer is invest in products that will be able to survive inflationary pressures.
Land.
If you're in an area where property values are going up, the equity you have in your home is going to be well protected.
It's going to do well.
Land will go up in value.
Currencies, gold, silver.
This is beyond politics.
And let me be very clear, both political parties are to blame for this.
But I try to be solution-oriented.
If you're in a blue state And you have the opportunity to move to a red state, go there immediately.
Because I'm of the opinion that some states now, like Florida, are now going to go seek other currencies.
I'm telling you right now, it's coming.
You are going to see South Dakota and Florida that are fully open and they have economic success.
They're going to say, wait a second, our schools are open.
Our businesses are flourishing.
Crime is going down.
The only thing that might be weighing down the people of Florida is the currency that we're using.
What if Florida all of a sudden created their own cryptocurrency?
I'm not kidding.
People would use it and they believe in it.
So what it means for you could be a variety of different things.
I'm not going to tell you a certain thing to buy or not buy, but this is a fire alarm.
$46,500 for a number that a machine pops up.
Now you might say, oh, this is the new tulip craze.
It might be.
The only difference is that people are buying products with this stuff.
It's storing value.
There's only a finite amount of it.
So I think people scoff at this crypto craze at their own expense.
I want to talk to you about how MyPillow has literally changed my life.
They won't go flat.
You can wash and dry them as many times as you want, and they maintain their shape.
They're made in America.
And for a limited time, Mike Lindell is offering his premium MyPillows for his lowest price ever.
You can get a queen-size premium MyPillow for $29.98.
Regular, it's usually $69.98.
That's $40 of savings.
Kings are only $5 more.
Not only are you getting the lowest price ever, $29.98 for a queen-size premium, but Mike is extending a 60-day money-back guarantee to March 1st, 2021.
So go to mypillow.com right now and click on Radio Listeners Square and use the promo code Kirk.
That's it.
If you want to support Mike and you want to support MyPillow, you will also get deep discounts on all MyPillow products, including the Giza Dream bed sheets, the MyPillow Mattress Topper, and MyPillow Towel Sets.
Or call 800-876-0227.
Use the promo code Kirk.
Mike Lindell, fighting for America, go to mypillow.com.
Use the promo code Kirk when you check out.
I want to get to this story here.
It's just more of a human interest story around this New York Times reporter that did nothing wrong.
So there is a New York Times medical reporter that went on a trip to, I think, Peru, and he went with a group of high school kids.
And it came out in the last couple of weeks that this professor said a very bad word while he was there.
He said a word that no one should say.
And the kids accused him of saying the N-word.
And so I first read this story.
I'm like, yeah, that's pretty bad.
But then I took a pause as I just read the article.
I thought to myself, why would a professor do that in front of high school kids?
Pretty logical question.
And I thought to myself, what was the context of how this guy said it?
And so I read this article further.
And it turns out that this medical reporter did say this in a certain context.
So he was asked by a high school student.
This is that chief medical reporter of the New York Times.
And he was asked by a high school student on this trip in South America.
His name is Donald McNeil Jr.
They said, hey, a 12-year-old, high school, not 12-year-old, I'm sorry, 14 or 15 or 16-year-old, says, hey, Mr. McNeil, one of my friends, when she was 12, used the N-word.
Do you think that should be reason to kick her out of whatever?
And Donald McNeil then asked the kid, and he said, well, what's the context?
Did she say it in a rap lyric?
Did she say it in a title of a book?
Did she say it as a pejorative?
And then he repeated the word.
He said the word, but he did not say the word with the intent of racism.
He simply stated the word as what she was talking about.
So the New York Times comes out and says, quote, we do not tolerate racist language regardless of intent.
Regardless of intent.
You understand that one of the cornerstones of the U.S. justice system is intent.
Intent matters a lot.
Intent is the difference between somebody who accidentally gets in a car accident and someone dies versus premeditated murder.
It's that big of a deal.
Intent matters a lot.
Did I get in the car wanting to go kill somebody this morning?
Or did I get distracted while I was texting and was it reckless manslaughter?
It matters a huge difference.
In fact, it is the whole point of the U.S. justice system.
Intent is supposed to matter.
It really is.
But according to the New York Times, intent means nothing.
Donald McNeil Jr. has now been fired, resigned.
You know, that kind of thing where he resigns, but he was really fired because he said this.
Now, he also said to the kids he doesn't think white privilege exists.
That's the real reason he was fired.
Let's not kid ourselves.
That's the real reason he was run out of the building.
Now, I hesitate to say he did nothing wrong, but he did nothing fireable.
Did he have bad judgment to use the word in front of a bunch of high school kids?
Probably.
Is that worthy of his whole career being obliterated?
And by the way, I probably agree with this guy on nothing.
If this guy was in charge of the virus coverage of the New York Times, he's been wrong about everything.
He's been a fear-mongering writer.
That's all I'm going to say.
He's been a fear-monger.
But I'm going to defend this guy.
I'm going to defend Donald McNeil Jr.
He goes on a trip with these kids, repeats the word that somebody else said in reference to it, not calling a kid that, and then he loses his job.
It's happening, everybody.
And you say, what's that?
They're going after each other.
You see, the Democrats and the left, they're running out of targets to obliterate.
And they're going to start going after their own writers, their own journalists, their own screenwrites, their own actors, their own politicians.
If they are not appropriately woke enough, and if they have the one thing that they might have done wrong, we will run you out of the building.
Donald McNeil Jr. did not purchase the correct progressive insurance.
Remember, we talked about progressive insurance being you say a bunch of woke stuff so that in the future, if you use something wrong, you have insurance against retribution.
Thanks so much for listening, everybody.
Email us your questions, freedom at charliekirk.com.
If you have any questions or comments or points of feedback, if you want to get involved with Turning Point USA, go to tpusa.com, where we play off into the sense of urgency to win America's culture war.
And if you want to support us, go to charliekirk.com slash support.