02:56.0
Apparently, there are 11 banks, big banks, the 11 biggest banks are now committing to deposit a total of $45 or $43 billion into First Republic Bank to show confidence that they're not going to lose the money. And yeah, I think it could work on the short term. But unless they fix the broken banking system, these are band-aid solutions. Why is that?
03:24.0
I wonder if I'll be able to share with you on this stream. If I can share my screen right now with you guys. This is the first time I'm going to do this. I'm not really sure on how to share a screen. Obviously, I don't know how to share a screen, but let me just give you guys an idea.
03:42.0
I have a list of 10 banks that I've looked at in the United States, 10 big banks with $1 to $17 billion in assets that are in trouble. First Republic Bank is one of them with $17 billion in assets and they have unrealized loss of $331 million.
04:11.0
Other banks have a higher exposure of unrealized losses, meaning that whatever their investments are, have losses in them already if they were to be liquidated today. One of them is customers, Bancorp Inc., Sandy Springs Bancorp, which $132 million in unrealized losses. New York Community Bancorp has $620 million in losses, unrealized.
04:35.0
Ally Financial Inc. in Detroit has $4 billion in unrealized losses. The total assets of Ally Financial is only $12 billion. That's a 24% exposure that they have.
04:53.0
This goes on and on. I have a lot of these figures and it's really scary to see some of these figures. Then I've looked at some of the big banks like Zions Bank Corporation has $4.8 billion in equity, in assets. They have a $3 billion loss on their books, unrealized.
05:17.0
If they had to sell it today, they would have lost $3 billion. Some of them are big banks with a billion dollars in unrealized losses and the list goes on. This is where the problem lies.
05:31.0
What happened with Silicon Valley Bank, Signature Bank, and all the other banks, Credit Suisse, and now First Republic, these are not isolated incidents. These are systemic problems with the banking system.
05:45.0
Unless they change the fractional system to be more conservative, where they don't spend our money or invest our money in risky investments, or that when we want to withdraw the money, we can't withdraw it because it's somewhere else, this is going to keep happening.
06:04.0
What we need to do is this. We need to get rid of the fractional system or at least change the fractional system. Increase the reserve requirement to 50%, for example, because right now in the Philippines, fractional reserve requirement is at 10% or 12%. In the United States, it's 0%. They're not required to keep any of your money in the bank.
06:27.0
In the Philippines, they're required to keep about 10% to 15%. Now, here's the thing. In the Philippines, I think we're fairly safe. There's no problem in the Philippines. I think we're going to be okay for now, but this will catch up to us, especially if there's a bank run and we're losing confidence in the banking system.
06:45.0
So, what can you do? And what does it mean when there's a bailout? When there's a bailout, the money has to come from somewhere. In the case of First Republic, the money came from the other banks. In the case of Credit Suisse, it was loaned to them. They're getting a $40-plus billion loan.
07:03.0
In the case of Silicon Valley Bank, they're getting a bailout from the government that is going to be paid back now. So, I don't know if it'll be paid back or if they can afford to pay it back. Here's the thing about the Silicon Valley Bank that's also endemic with other banks. I want you to think about this.
07:20.0
So, Silicon Valley Bank had an unrealized loss of just about under $2 billion. And when they were trying to raise capital to be able to sell those unrealized losses and basically realize the loss, they wanted to cover it with a capital infusion of about $2 billion.
07:37.0
Nag-panic yung mga tao and then they panicked. That's when the problem started. When the corporations panicked and they started to withdraw their money, that's what caused the bank run. So, it's a combination of bad management, bad PR, and panic by customers, by depositors like you and me.
07:56.0
So, that's what caused the bank run. Now, how do you prevent a bank run? You prevent a bank run by developing confidence. And right now, there is no confidence with the banking system. And honestly, I'm not confident with the banking system and I don't have a lot of money in the bank right now.
08:16.0
You guys know that I'm a crypto guy and my money is in crypto. And there's a reason why it's in crypto and in Bitcoin in particular. And I'll explain that in a second. But right now, I just want to talk about the banking system so you guys understand how dangerous it is to keep your money in the bank.
08:30.0
First of all, when people lose confidence in the bank and everyone wants to withdraw at the same time, the bank doesn't have your money in the bank. Now, next thing that I don't like about the banking system is this. You deposit your money in the bank. Most of our money is in the bank. Do you make money off your money? No, you don't.
08:50.0
Think about it. Your money is in the bank and you make no money from the money that you put in the bank and yet the bank makes all the money. You make zero. We all make zero and yet we're charged with all these ridiculous bank charges for every transaction we have to do. And they make money off our money. That's why bankers are the richest people in the world. That's unfair. And they could possibly lose our money. So, that's where the banking system is problematic, number one.
09:18.0
Number two, it's hackable. The banking system is easily hackable. As you guys know, in BDO, recently, was it last year? 350 BDO accounts were hacked for 50,000 pesos each at the minimum. That's because it is centralized, meaning the system of every bank is in one server. So, all the hacker has to do is go into that one server to be able to hack the system.
09:48.0
That's why your money is not safe. Number three, banking is only available during banking hours. Pag non-banking hours, sorry ka na lang, you're not gonna be able to do any banking. Online, you can. Nowadays, you can, right?
10:02.0
Number four, you know that if you try to move $10,000 or 500,000, over 500,000 pesos, that it will flag AMLA, the Anti-Money Laundering Act, right? AMLA. And they will ask you, what are you doing? Why are you moving the money?
10:21.0
Can you imagine, pera mo yan, and yet they're gonna ask you why you're moving the money? Where are you putting the money? Dapat wala na silang pake where you put the money or where it goes, right? It's your money. They shouldn't give a crap what happens to your money. That's your money. So, it's kinda interesting that you have to defend yourself on why you're moving your own money.
10:43.0
So, those are the problems I see with the banking system and why it is broken. That's why I have lost faith in the banking system. Okay, not just the banking system, the monetary system is also broken. So, that's part of the banking system because Philippine pesos, unfortunately, are gonna keep going down in value. We all know that.
11:09.0
In history, you've never seen the Philippine peso appreciate in value. If you zoom out and you look at the overall trend, it's on a downward trend and it's gonna keep going down. I'm honestly predicting it's going to hit 60 pesos to the dollar very soon. If not this year, next year. If not next year, the year after. But it will hit 60 pesos to the dollar.
11:33.0
And eventually, it might even go 70 pesos to the dollar and just keep depreciating in value. And why does it depreciate in value? Two reasons. Number one, the U.S. dollar is getting stronger because it's the world reserve currency because people do trade with U.S. dollars. So, that's one reason.
11:51.0
The other reason is the weakening of the peso. And the Philippine peso is weakened by several factors. Number one is abuse by our government. Number two is mismanagement by the government. Mismanagement comes in the form of, for example, the government spends more than it makes increasing the national debt. You guys know that the national debt is going to go up by about 2 trillion pesos this year alone.
12:20.0
And if every year they keep going up by 2 trillion, by the way, it's already at 13 trillion. And in 2020, at the start of 2020, it was only at 6.5 trillion. By the end of 2022, it was at 13 trillion. And by the end of 2023, it'll be at 15 trillion.
12:41.0
And every year onwards, if the government doesn't improve the way they spend the national budget and doesn't cut back, it's going to keep going up by about 2 trillion a year for the next five years. That's 10 trillion increase. So, every time the budget and the national debt goes up, the value of the peso will keep going down.
13:01.0
Inflation will happen. That's where inflation happens. That's why inflation is very high. And now they're proposing a 100 peso increase in the salaries, minimum wage salary. That's going to increase inflation as well. So, a lot of these factors are not isolated. So, because of that, I don't want to keep my money in the bank anymore.
13:22.0
And now the question you probably are asking yourselves is, okay, if you're not going to put your money in the bank, where should you put your money so that you can protect your money, protect the value of your money, and be able to hold it and be able to grow it faster than the rate of inflation?
13:41.0
So, what are the options? Okay. So, you guys know I'm a crypto guy, but you know what I'm going to tell you guys first? One way to protect your assets is, actually Michael brought it up in the chat right now, is by putting it in land. Land is one of the safest ways to invest your money because with land, it's a hard asset.
14:01.0
And when you have the title to that asset, you basically have custody of it. So, nobody can take it away from you. And land, as we know, will grow in value over time, always grows in value. It never goes down in value when you look at it from a long-term perspective.
14:20.0
The only problem with real estate is this, with land, is that it is not liquid. So, if you need the money, you won't be able to get it right away. But the beauty is that it's a hard asset that ensures that the value of your money is contained and protected. So, that's the beauty of having land as an asset.
14:43.0
The second one is gold. Gold is actually a great way to be able to hold the value of your asset because gold's value is also appreciating and steady. It's very, very stable. So, you can put it in gold.
14:58.0
The problem with gold is that it is slightly volatile on a short-term perspective, but on a long-term, it's fairly stable. And the good thing about gold is it's not as long-term as land. Because land, it's very hard to convert land to cash if you need cash. With gold, it's a lot easier to convert from gold to cash.
15:24.0
So, it's a lot easier than land. And it's a great way to secure the value of your money. So, for those that don't know, before 1971, all currencies were pegged to the gold standard, meaning the value of your money was pegged to gold. And because of that, the value was maintained.
15:43.0
1971 onwards, Richard Nixon announced that the U.S. dollar was not going to be held to the gold standard anymore. And when that happened, that's what created the fiat currency system we have today. And that fiat currency system has been around for over 50 years. 1970 to today, yeah. Okay, 50 years.
16:07.0
And it's already an old system. And right now, the problem with that is that's what created all the debt that we have now all over the world. We are too leveraged. And that's why we're seeing volatility in the stock market. That's why we're seeing all the problems with economies. That's why we're seeing problems with countries like Lebanon, Argentina, Venezuela, and Sri Lanka.
16:34.0
And trust me, Philippines could be one of them very soon. So, that's because of the fiat system we have. And that's also because of the fractional system of banking that we have. So, that's why it's important to be able to have investments in assets that are hard assets.
16:53.0
The two that I can recommend is gold and real estate. The third one I can recommend, this is going to be hard for you guys to understand, I'm sure for some of you, is Bitcoin. Now, I know that for some of you, they're like, yeah, but what is Bitcoin? And why is that valuable? And why is it safe?
17:14.0
So, remember I told you that land is valuable. And land is valuable because it keeps going up in value. And the reason it goes up in value is because land is scarce, meaning there's only so much land that can go around it. It's limited, obviously, by the amount of land in the Philippines, for example.
17:32.0
So, dahil doon, it retains its value because there are more people and as the population grows, more money comes in, but the total number of land stays the same. So, the value goes up.
17:43.0
Gold is the same. There's only a certain amount of gold, but more people have more money and it goes up. With Bitcoin, it's the same. With 21 million Bitcoins, that's it. That's never going to be mine. But yet, the adoption rate is going up a lot, very, very high. And because of that, it goes up in value.
18:05.0
And tama si Jay, Bitcoin is very volatile on the short term. Stocks are volatile too. But what I like about Bitcoin is this, on the long term, because of the adoption, is that it will keep going up in value.
18:19.0
And for those that don't know, by the way, and I've done this and you can do your own research for this one, and I encourage you to, if you check what is the best performing asset over the last 10 years, the best performing asset, and that includes all from real estate to commodities to stocks to bonds to mutual funds to everything, the best performing asset is Bitcoin.
18:43.0
It outperformed all assets combined in terms of total asset appreciation in 10 years. So, what will happen in the next two to three years with Bitcoin? I'll tell you what's going to happen.
18:57.0
What do you think happened when the SVB, Silicon Valley Bank, collapsed? People withdrew their money. Big investors withdrew their money. Where did the money go? It went to Bitcoin.
19:11.0
When the US dollar was a little bit in trouble and the US economy is looking like it's going to be a little bit problematic, where does the money go? Bitcoin. When Credit Suisse was experiencing a bank run and they needed money and people were withdrawing their money, where does the money go? Bitcoin.
19:30.0
Because even with the short-term volatility, on the long-term, you will win with Bitcoin. Now, feel free to ask me any questions right now in this live stream. I would love to hear from you guys. And trust me, I don't mind dissenting opinions. I love to be able to discuss this and be able to talk about the different points and to see what is the strongest argument.
19:51.0
And the point of our discussion is for understanding. So, why is Bitcoin, in my opinion, better than gold? And why am I putting my money in Bitcoin? It's this. What I love about Bitcoin compared to putting your money in the bank is in the bank, they're using your money and you have no say in where they put the money.
20:11.0
With Bitcoin, you have self-custody. It's with you. I'm holding on to my own Bitcoin. Nobody holds it for me. That's what I like about it. That's the paradigm shift that people have a hard time with. People are afraid to hold their own money. They want somebody else to hold it for them. But in reality, it's actually better to hold your own money.
20:31.0
And the great thing about Bitcoin is it's called self-custodial or non-custodial, meaning you hold your own money. And remember earlier, I was telling you guys the problem with the banking system. If you wanted to move $10,000 outside of the Philippines, you're going to be questioned on why you're moving it. With Bitcoin, nobody questions you on what you can move in and out of the country.
20:55.0
That's what I like about it. It's borderless. I can go anywhere with my Bitcoin and be able to transact with anyone all over the world with my Bitcoin. I can't do that with a Philippine peso. Actually, it's even hard to convert Philippine peso to another currency anywhere in the world. I'd have to convert it to dollars first. After I convert it to dollars, then I convert it to that country's currency.
21:23.0
With Bitcoin, it's borderless. That's what I like about it. If you're carrying gold, that's kind of hard. Can you imagine trying to carry gold outside of the Philippines? That's difficult. Land, you're still held by the government of that country because they control all the papers of all the land. And land is very hard to maintain.
21:48.0
If it's in the province, you'd have to take care of it, fence it around, make sure that it's okay, that it's protected. You have to pay real estate taxes. You have to pay a lot of different things. With gold, a little bit safer, a little bit less maintenance. With Bitcoin, it's practically no maintenance. That's what I like about it.
22:08.0
Now, I don't tell people how much Bitcoins you have or how little Bitcoins you have or how many because that's like asking what your worth is. But definitely with Bitcoin, it's something that you can hold on to and nobody else has custody of it. And that makes you a sovereign person. You are now financially free. You are now outside of the banking system. You are now outside of the financial system. That's the beauty of Bitcoin.
22:36.0
Now, again, I always love a good debate and I always love a good challenge. Feel free to challenge me on this view on why Bitcoin works and why Bitcoin is an amazing technology that allows you financial freedom. Feel free because that's the way we're going to learn about this and that's the way we're going to learn and be better.
22:53.0
There is an evolution in banking and it's called Bitcoin. This is the next evolution of money. Money as we know it right now, cash, the physical form of cash, that's analog. This is the pure digital money. Now, somebody asked me this, what's the difference between Bitcoin and Gcash or Paymaya?
23:13.0
Gcash and Maya is a third-party custodial app that holds your money. When you transfer money from one person to another, it's an accounting transaction. It's still in Gcash. They're still holding it. And Gcash is actually investing your money somewhere else.
23:35.0
So they just pass around the, oh yeah, now Chris owns the 100,000 pesos. Now he sends it to his friend Robert and Robert has it. But in reality, it's just in Gcash and you need a third-party to verify it. Gcash. With Bitcoin, there's no third-party verifier. It's completely peer-to-peer.
23:52.0
Bitcoin, what I like about it is there's no office for Bitcoin. There's no secretary. There's no 1-800 number. It is literally like a commodity living on the internet and it can't be stopped. I told you guys that the problem with the banking system is that it's centralized and because it's centralized, it's easily hackable.
24:14.0
Bitcoin is not on one server. Bitcoin is on 1 million servers all over the world. To hack it, you have to hack all 1 million servers at the same time. That's what makes it unhackable. And the blockchain is what secures it because on the blockchain, you have to break the encryption of block after block after block, every block on that chain at the same time.
24:40.0
It's impossible. It cannot be broken. And over the last, what is it now, 14 years Bitcoin's been around, it's never been hacked. And another problem, Bitcoin's very safe actually. It's very safe because of the fact that it can't be hacked. You cannot hack a Bitcoin. You cannot counterfeit a Bitcoin. You cannot print more Bitcoin than what's out there.
25:05.0
The government can't abuse it. They cannot corrupt it. They cannot mismanage it. And that's why Bitcoin is safe because you have full custody of the Bitcoin.
25:17.0
I know some of you are probably still wondering, how is it unhackable? It's unhackable because of the 1 million servers that you have to hack to be able to do it. And the blockchain, you have to break every single block on the chain at the same time. That's impossible. 13 years, 14 years, it's never been hacked.
25:33.0
And this is another problem in our banking system. Do you know why it takes 3 to 5 days to wire transfer money from one country to another? It takes 3 to 5 days to wire transfer from one country to another because banks have to verify that you have the money in the bank and then they have to verify that it's able to be transferred and then they have to do the actual slow transfer, my God, to get it to another country.
25:56.0
And then they pay you high fees to do a wire transfer. With Bitcoin, it's instantaneous. If you're an OFW watching this, you can send money from anywhere in the world to any part of the world in a snap with practically zero fees through the Lightning Network. That's what makes Bitcoin superior to any other currency.
26:20.0
So Bitcoin doesn't have one server like traditional banks. Yep. Yes, yes. You're absolutely right, Jay. You are absolutely right. And that's why they cannot stop Bitcoin. That's why no country owns Bitcoin. That's why no government can stop Bitcoin.
26:34.0
The banking system is the exact opposite of Bitcoin. That's why Bitcoin fixes the problem with the banking system, the broken banking system, this banking system. The reason Bitcoin was created because of the broken banking system. The first time we saw it broken was several years ago.
26:52.0
One of the key banking crisis that happened that created Bitcoin was in 2008. Do you guys remember this? For those old enough to remember this, in 2008, there was a banking crisis in the United States, the mortgage banking crisis. This mortgage banking crisis was in a movie called The Big Short. You have to watch it. It's a great movie.
27:09.0
And also a movie called Margin Call. It really explains to you what happened during that time. Now, what happened is what's happening now. Banks were over leveraged and then they realized that the leverage was bad. Bad credits. They couldn't pay. And then it went under. And because of that, Bitcoin was created.
27:29.0
Because the creator of Bitcoin said, you know what? Enough of this. Enough of governments abusing the system. Enough of governments and banks abusing our system. Abusing our money. And that's why Bitcoin was created in 2009 of January 3. Because no country, no government should be able to control the money supply.
27:53.0
Because when they control the money supply, they abuse it. They keep printing more. In Venezuela, that's why there's hyperinflation because they keep printing more money. That's why the value of the Venezuelan currency went completely under. Recently, Lebanon. If you had a million Lebanese currency, it's worthless right now.
28:17.0
And that's why for me, I do not trust any government. And I do not trust banks. Sorry, I don't. Banks have never served me well. And I don't like the fact that AMLA will ask, what are you doing with your money when you send money? They have no business asking me what I do with my money. They have no business asking you what you do with your money.
28:38.0
Did you know AMLA, because of AMLA, I made a transaction and they froze my access to my account and I could not access my bank account for five days, begging for access. And I said, I didn't do anything wrong. And they're claiming that they're protecting me from anti-money laundering.
28:58.0
Did you know that that anti-money laundering act actually only detects less than 2% of all the money laundering happening all over the world? Doesn't really help. It's BS. It's just a way for government to control your money. And now the government wants to come up with a CBDC. Do you know what a CBD is? Central Bank Denominated Currency. CBDC.
29:22.0
The problem with the CBDC is that they have complete control over that money. That's even worse than fiat currency. Because when a CBDC happens and let's say the government decides, let's say you're a critic of the government, like me, then they say, you know what? I don't like the way you're using the money. I'll restrict access to your money. I'll confiscate all your money. It's over. You're done.
29:49.0
By the way, I'll give you a good example. What happened with the Ukraine-Russia war? Remember, all of the world is using the dollar as the reserve currency. So every country holds a certain amount of US dollars. Russia had a lot of US dollars. When the war started, the US punished Russia by freezing their US dollar reserves.
30:14.0
I agree with that because I think Russia is an absolute terrorist in this world, invading Ukraine. I agree with what the US did. But the scary part about what they did is that they can do that to anyone all over the world where they say, you know what? I don't like you. You're a bad actor. Let me freeze your account. That's what's scary. That's the other side of it.
30:36.0
That's why Bitcoin was created so that no government can have control of your money. That's why CBDCs, don't ever trust CBDCs, especially the one coming from China. Good luck. Look at how authoritarian that government is. And for the people watching, I'm not talking about any political color or any political leaning. For me, period lang. Ito lang isang sabihin ko sayo. No matter who the government is, I just don't trust government because government is fallible. Government are made of people. People make mistakes.
31:04.0
People are prone to greed and they are prone to abusing power. And for that reason, I cannot trust people. And what I like about Bitcoin is that it's trustless. Meaning, I do not have to trust it for the money to flow from me to another person. No trust is needed because it will happen. That's the beauty of Bitcoin. It doesn't require anyone's trust.
31:28.0
Unlike the current system where they say you have to have confidence in the bank para hindi magka-bank run, have confidence in it. Well, the problem with that, as you can see, is that if you lose confidence in the bank, a bank run happens and then wala na. In Lebanon, do you guys know what happened in Lebanon? When the bank run happened, the banks closed and they put guards and they put the military with guns saying you cannot withdraw your money.
31:53.0
And in other banks in Lebanon, you know what the people did? They actually robbed the bank. And what they did is they robbed the bank with their own guns and when they got in just to be able to withdraw their money and then they ran off with their own money, they didn't take anything else. They just took their money. You have to rob your bank of your own money? My God, that's ridiculous.
32:12.0
This is why Bitcoin is needed. This is the evolution of money. CBDCs is not the evolution of money. If you are one of those people that still trust banks, trust me on this one. You need to change the mindset that you have about how banks work.
32:28.0
Because banks and the government, the banking laws are not made to protect the people. The banking laws are made to protect the banks, not the people. That's the problem with the banking laws. And that's why you need a sovereign currency or a sovereign money or a sovereign asset. And that's Bitcoin.
32:53.0
But again, if you're scared of Bitcoin, go with gold. If not gold, go with land. Either one, land, gold, or Bitcoin. Those are my three. Or another one, if you trust the government, go with a treasury bond or any treasury bill.
33:08.0
The problem with the treasury bill in the Philippines is that the Philippine peso is depreciating in value. That's why I don't want to hold Philippine pesos. Between Philippine pesos and Bitcoin, I'd rather hold Bitcoin. Think about it. Philippine pesos, you can't take anywhere in the world. Nobody will accept it.
33:25.0
You'll have to convert it. And you try converting it. It's going to be hard to convert. With Bitcoin, I can go anywhere in the world and convert it. And it's instantaneous. So feel free to ask me any questions about Bitcoin. I would love to be able to answer your questions. And there are no dumb questions, by the way. Not a lot of people understand Bitcoin at this point.
33:44.0
And it is hard to grasp. It's such a paradigm shift in thinking, in how money works. And that's why people are having a hard time accepting the concept of Bitcoin. And that's totally understandable. And with the current monetary system, I remember somebody would say to me, yeah, but there's no bank to trust. That's exactly the point. There is no bank to trust.
34:08.0
Because it doesn't require trust. That's what I love about it. And that's why I recommend Bitcoin for everyone. Not any other cryptocurrency. I'm not talking about the other cryptos. I think 99% of the cryptos out there are going to fail. But I do believe one, there's one, that's Bitcoin. That's going to be the world currency.
34:28.0
And for those that are interested in learning more about Bitcoin or experiencing how Bitcoin works, there's going to be a Bitcoin Island retreat in Boracay. For those that don't know, Boracay was recently coined as Bitcoin Island by Pouch.ph, a lightning wallet that actually helps people transact Bitcoin in and out of the country to be able to pay for goods and services. It's amazing.
34:50.0
Okay, so Sid said, behind the scenes, they are all in the same boat because of their bloodlines dating back to the pharaohs. They're playing us against one another. Yeah, you could say that, Sid. You could definitely say that. I wouldn't say that. But yes, I can imagine why you would think that. And that's a fair assessment of it.
35:12.0
Honestly, I like being a sovereign person. I like the fact that I could literally live anywhere in the world right now and be anywhere and bring my assets with me. That's what I like about it. And my assets are with me. I have full custody of my assets and my assets cannot be taken away from me. That's what I love about it. And that's how safe Bitcoin is compared to any other asset.
35:38.0
Again, by the way, I'm talking about long term. If you're thinking short term, there is volatility in Bitcoin because it's still a new asset. It's still growing. When does Bitcoin mature? Bitcoin starts to mature. For those wondering, Bitcoin will probably take another two decades to mature. Actually, honestly, even more than two decades to mature. When it matures, it'll stabilize. But in the meantime, while it's growing, it'll keep appreciating in value.
36:04.0
So what's my prediction? I'm going to make a bold prediction of Bitcoin's price so you guys know. And this is what I'm betting on this. I bet my money on this. Bitcoin right now is at, I'll tell you guys what Bitcoin's at right now. I'll actually look at the price right now. It's at just under $26,000 right now per Bitcoin. $26,000. Now at $26,000, where is it going by 2025?
36:29.0
Okay. So for those that don't know, every four years, the flow of Bitcoin, that means the number of Bitcoins that are minted per block is going to be cut in half. When it's cut in half, okay. Thank you for the conversion. I don't know how to convert it in pesos. I think in dollars. That's what I mean. When I told you I'm out of the Philippine peso, I am out of the Philippine peso.
36:52.0
Okay. So when the Bitcoin flow is cut in half, okay, that actually lessens the total flow of Bitcoin by half. What happens and what has happened over the last three halvening sessions in Bitcoin? After 18 months of the halvening, the price of Bitcoin shoots up. For the last three halvenings, that's already happened.
37:17.0
So in 2017, December 2017, the price of Bitcoin went from $1,000 or $2,000 or $3,000 all the way to $17,000. Then it collapsed to $3,000, 2018. By 2020, I said it was going to hit $20,000. It hit $20,000 in December 2020.
37:37.0
People were like, wow, it's high already. It's too high. No, it's not. From $20,000, it went to $40,000 by January. By November of 2021, it hit almost $70,000. It was $1,000 short of $70,000. It was $69,000.
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And then it collapsed all the way to $20,000 where we're at today. And now it's even as low as $16,000, I think. And then now it's at $26,000. So where is it going from here to 2025? Here's where it's going.
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The Bitcoin halvening will happen around May to July, around there. It's not an exact date. It's depending on the number of blocks minted. But around May to July, the halvening will happen. And when it happens, the flow of Bitcoin, like I said, will be cut in half.
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When it's cut in half, 18 months from that time, let's say it's June and we count 18 months, that's going to take us around November to December of 2025. I predict Bitcoin. And you can quote me on this. And if I'm wrong, I'm wrong.
38:45.0
I predict Bitcoin to hit a minimum of $150,000 per Bitcoin to as high as $250,000 per Bitcoin. That's the range I'm looking at. I said it's going to hit $100,000 by end of 2021. I missed it. It only hit $70,000. So I missed it by $30,000. Still hit $70,000. That's pretty good.
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So from where we are today, my prediction is about $150,000 to $250,000 per Bitcoin. After that, there'll probably be another correction. It'll probably drop again to about $70,000 to $100,000 per Bitcoin.
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And then on the next halvening in 2028, by 2029, 2030, it'll probably go up to about half a million dollars per Bitcoin. It's just going to keep going up. And that's a fact. Because adoption of Bitcoin is growing very fast. It's growing at an extremely fast rate.
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And that's what all of you guys should know. Whether you believe in it or not doesn't matter. Bitcoin is being adopted all over the world and it will become the world currency. It'll become the world reserve currency. I am making that bold statement. It'll become the global reserve currency.
40:02.0
I think the US dollar will lose its position as the global reserve currency. I think it'll be Bitcoin. And when that happens, the question you got to ask yourself is how many Bitcoins do you have at that point? It's not going to be called Bitcoins anymore. It's going to be called Satoshis, which is the denomination of Bitcoins.
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And that's where we're at. And that's it for today. So I hope you guys learned something today on this live stream. And I'll probably be doing a lot more of this live stream. Maybe once a week I'll try to do a live stream for you guys. And we'll be doing different topics.
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Ang goal ko lang naman with doing these live streams is to be able to interact with you guys and to make us 1% smarter than we were yesterday. And that's the importance we learn from each other. That's why I actually appreciate all the comments that I get.
40:48.0
And the interaction, even if you disagree with me, by the way, you can disagree with me. It's okay. We are all entitled to our opinion. And I like the disagreement. So I'll just read some of the comments.
40:58.0
Sid said, always buy the dip. And when blood's on the street, after BTC goes up, sell. So you get back at least what you invested in the dip.
41:06.0
So here's my strategy for those watching right now. So for you to know my strategy, when Bitcoin hits 200,000, I will probably sell half of my Bitcoin holdings. I'll keep the other half for the long term. I'll sell half and see what happens.
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If it collapses and corrects to 100,000, then I'll buy back in. That's what I'm planning to do. But I'll keep the half in case. I don't want to sell all my Bitcoins. I'm scared to do that.
41:32.0
With the recent spike of Bitcoin, by the way, that's exactly what I did. I bought Bitcoin when it hit about $18,000 per Bitcoin. And recently I just bought at $22,000 per Bitcoin.
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And then it just pumped up right now to 26. That's the way to go. At $26,000 per Bitcoin, it's still fairly cheap. I still bought, actually bought today. So it's always a good idea to keep accumulating.
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Buy pieces at a time, 0.01 Bitcoin at a time and increase it, accumulate until you start generating more Bitcoins. Trust me, it's a good investment.
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Now for the people that, by the way, this is not financial advice and please do your own research. I'm not giving you financial advice. I'm just telling you what I'm doing.
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But for the people that want to know what I'm doing or what I sometimes tell people that ask me, I always tell them, put 10% of your holdings in Bitcoin, your assets in Bitcoin, just 10%.
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You know what would surprise you? What if that 10% is going to be more than the 90% that you have in cash? You would be surprised. You can thank me and even treat me for dinner if you want.
42:33.0
Okay. So that's it. Francis Tan said, what are the potential risks and benefits of using Bitcoin as a hedge against inflation, particularly in countries with unstable or hyperinflationary currencies?
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Okay. There is no risk with using Bitcoin as a hedge against inflation, especially with hyperinflation. It's actually risky to keep your money in a hyperinflated economy like Venezuela, Lebanon, Afghanistan.
42:58.0
I mean, I can name you Sri Lanka. By God, that is risky to keep your money in the currency of that country. Your hedge is Bitcoin and that is the safest place to go. Either that or you put it in dollars.
43:11.0
Or gold again, but gold is just so cumbersome. Dollars or Bitcoin, the way I see it. So you can mix it up. I tell my friends that are scared of Bitcoin, put it in dollars. It's safer. It's safer than the Philippine peso.
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Not a knock on our government. It's just unfortunate that governments are not really well run. In the Philippines, we don't have a great government to be honest with you guys. You see so many flaws with our government and no matter who the president is, by the way, it's just really because we're not that sophisticated in terms of our monetary system.
43:42.0
I have to commend though our Banco Centrala. They're actually pretty good compared to the rest of our government. They're financial whiz kids. They know what they're doing. So I'm pretty confident with them. They kind of know what they're doing better than the rest of our government.
44:01.0
Here's my take on life insurance guys. I'm going to end with this one. I like the question, what is life insurance? My friend is an insurance broker. He explained this to me. I actually sold all my life insurance and converted it to Bitcoin. That's because I don't have dependents.
44:16.0
Now, I want you to look at life insurance this way. If you're buying VULs or term insurance, here's the problem with that. You're paying a higher premium, say 10 years, but it's a higher premium. By the time you get to a certain point, you've paid almost the amount of the entire premium.
44:33.0
And the mutual fund has a probability of going up or down by the time you sell it. So there's a risk on that. Now, if you have dependents, and let's say you're insured for let's say 10 million, you're probably paying a premium. Okay. I don't know the exact numbers, but I'll just give you an idea.
44:50.0
If let's say your premium is 10 million for the beneficiary, let's say you're paying only, let's say 100,000 a year, right? 100,000 a year for the rest of your life. Think about that. If anything happens to you on the first year, you paid 100,000, your beneficiaries will get 10 million.
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On the second year, you paid 200,000 and your beneficiaries still get 10 million. Let's say on the 10th year, you've paid only a million and your beneficiaries still get 10 million. You're ahead of the game. That's where life insurance works. Life insurance is for savings. And I like the fact that it's for savings, but they make money off the for savings.
45:32.0
But if you can save the money yourself, that's also good. But you won't get that benefit in case something happens to you if you have beneficiaries. So if you have dependents, insurance is good. But when you get to a point where you have enough money that you don't need to have a safety for your beneficiaries, you won't need insurance if you have enough for that.
45:51.0
So I've come to a point where I don't have beneficiaries, so I don't really have dependents, so I don't have a life insurance. And that's why I'm in Bitcoin. Will I get life insurance in the future? Maybe. Maybe I will. Because it's a good idea that you're only paying a small amount, but you have a big amount in case something happens to you.
46:10.0
So Jay Felix said Bitcoin will not be affected by the country's inflation since Bitcoin doesn't rely on economics and monetary system of the particular country. You're exactly right, Jay. You're correct on that. That's why when people are saying Bitcoin is going up and down in value, the way I see it, one Bitcoin is always equal to one Bitcoin. Everything else revolves around Bitcoin the way I see it, not the other way around.
46:34.0
I look at everything as it relates to Bitcoin. Bitcoin is my reference point. And you can go to any country with Bitcoin. It is non-sovereign and it's borderless. And that's the beauty of it.
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And with that, I'm going to end with this. I hope you guys financial prosperity. I hope you guys learned something from this live stream. Feel free to let me know what you guys learned today. Whatever one thing you learned, type it down in the comments because that actually, when you type it down, it sticks in your head, the one thing you learned today, whatever that is.
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And build on that one learning you had today because with that one learning, you become 1% better than you were yesterday. And our goal is to learn from each other. And my goal with doing this live stream, and I'm going to be doing more of this, is that we can all be better and be better critical thinkers, be more aware, and be more open to different ideas and to grow financially free and independent and become sovereign citizens. And that's it for me.
47:32.0
Thanks everyone for attending this live stream. I hope to see you guys again. And if you like this live stream, please comment, give me a thumbs up, subscribe to my YouTube channel, and I'll do more of this for you guys. Alright? Have a good day everyone and have a great weekend. I will see you again soon. Thanks so much for watching. Take care. Bye-bye.
