Today, I will tell everyone that Bitcoin will become the best investment in the future, unmatched by any other. The only competitor, which is slightly less promising, is Nvidia. I'll start with the conclusion: Ten Bitcoins will grant you nobility for the next ten years, while a hundred Nvidia shares will secure your retirement.
AI is equivalent to the steam engine revolution, with AI computing power increasing tenfold every six months. The Qing Dynasty didn't understand this, so they failed. In the past decade, the value of Bitcoin was determined by the poor who longed to get rich overnight. In the next decade, the value of Bitcoin will be determined by the truly wealthy who have the purchasing power because it's ETF-ed. In other words, it's been legalized on the international financial stage. Laypeople can understand that the United States has legally allowed it to enter the US stock market, and people can trade it freely.
Once the United States can trade, how many retirement funds and various types of capital from Europe, Japan, and third countries that couldn't buy Bitcoin directly before will rush in? After the United States traded, other countries gradually launched Bitcoin ETFs to prevent their capital from flowing out. How much international new capital will be poured into the Bitcoin market then? When there's money, it will rise. Above all, these are just what's "visible" on the surface. The underlying logic behind the Bitcoin ETF supports its continuous rise to match the market value of gold.
Let's examine the United States' approval of spot ETFs. Gary Gensler, the chairman of the US SEC, previously supported Bitcoin futures ETFs but not Bitcoin spot ETFs. Futures products are used by large institutional investors to hedge risks or for speculative operations, which is more apparent in the stock market. This mechanism does not protect the interests of retail investors because the complexity and high volatility of the futures market increase the difficulty and risk of investment.
So, Gensler's initial claims of protecting small and medium investors were nonsense. In reality, he has always been biased towards large capital operations, not protecting the interests of ordinary investors.
His decision on January 10, 2024, was actually driven by large capital led by BlackRock. I mentioned in a previous video that this day would become a historic financial moment, comparable to "Nixon announcing the decoupling of gold" and "Germany leading countries to join the gold standard system."
It took 15 years for Bitcoin to grow into a poised young adult, officially entering the world financial stage.
Several capitals led by BlackRock drove Gensler's decision. It's evident that financial regulatory bodies are weak in the face of large capital operations and influenced by mutual interests. But why would large capital push for this? It couldn't be that simple.
Actually, there are three logics behind this, which I'll share with you today as my bottom-line insights.
Against the backdrop of the US dollar facing the challenge of "decline," the United States urgently needs to find a new mechanism to support its monetary policy. Bitcoin and its underlying blockchain technology offer such a possibility.
First, support for the value of the US dollar.
The continuous strength of the US economy and its currency hegemony largely depend on global trust and demand for the US dollar. As the world moves towards multipolar development and other countries and regions try to reduce their dependence on the US dollar, the United States faces unprecedented challenges. In this context, Bitcoin, as a globally recognized "digital gold" with its scarcity, immutability, and decentralization, provides a new means of value storage, potentially serving as a complement and support to the value of the US dollar.
Second, as a new reservoir for adjustment.
After the global financial crisis in 2009, the US stock market bull market has been rising for 15 years. It is still a big bull. By "raising interest rates" and "bull markets," the US continuously attracts capital from around the world to maintain its economic vitality.
Real estate is a "reservoir" tool in our country. So much has been overissued that prices for cucumbers, tomatoes, etc., need to be stabilized, which is a livelihood issue. CPI can't be high, so real estate became the reservoir, rising for over a decade.
The reservoir in the United States has always been in the stock market. So it has been rising.
What's next? If it rises further, the United States won't be able to bear it; the bubble is too big. AI is not yet mature and grounded, so it cannot support such a large value bubble.
What to do? Bitcoin spot ETF, you be the "new reservoir."
When the price of US stocks is high, you can pull Bitcoin, let the money flow to Bitcoin, and US stocks will come down. How to pull? Big capital is needed. So BlackRock and other capitals must get in first to get enough chips to control the market. How much money are BlackRock and a few other capitals entering every day after the approval of the Bitcoin ETF? It's pretty terrifying.
When the US economy catches up, and AI can support valuations, US companies will need a lot of funds for major development. Alright, draw some water from the Bitcoin "reservoir" and pour it back into the stock market.
Bitcoin ETF is essentially the "new reservoir" for the United States.
So, will its future rise be terrifying?
In short, By incorporating Bitcoin into the formal financial regulatory framework, the United States can use it to adjust the "water level" of the traditional stock market, guiding more investment into the cryptocurrency market, thereby somewhat diversifying and alleviating the risk of stock market bubbles.
Sometimes, I read comments on my videos, and in 2024, some people still think it's a Ponzi scheme or a tulip bubble. This kind of perception is hard to survive in a world of games. Being eliminated by the game is inevitable.
The third aspect is the establishment of a new financial hegemony system.
Historically, any currency decoupled from gold, losing its "anchor," has not indeed lasted more than 100 years.
Whether it's the "Jiaozi" of the Northern Song Dynasty, France's "Livre," or any country's currency, once the material "anchor" was lost, it transitioned from a currency supported by material value to one backed by credit value.
Credit can lead to mischief and the maximization of benefits. The emergence of the dollar hegemony was inevitable.
The dollar's weakening would also be an inevitable part of the historical cycle; it's the natural order of things.
It has been 53 years since the dollar decoupled from gold.
So, the United States wants to change, prevent, and maintain for a longer time. It needs new forces and consensus.
That's Bitcoin.
Have you noticed that after March 2023, the US government no longer sells confiscated Bitcoins?
Bitcoin can become a new value reserve for the United States, enhancing the dollar's strength.
Here's a common misconception that many people have. Previously, many people understood that "currency needs government credit endorsement to become a currency; Bitcoin, with the word 'coin' in it, obviously doesn't have government endorsement, so it definitely can't become a currency." Wrong. Bitcoin isn't about currency value; it's an asset akin to gold, understood as "digital gold."
Assets don't need government credit endorsement; they need consensus. Think about it: does gold need the endorsement and recognition of any country?
Bitcoin has consensus.
So, Bitcoin's value is in its ability to provide an "anchor" for currency, not about payment functionality. Satoshi Nakamoto set Bitcoin to use the original version without iteration, with no need for efficiency. From the beginning, he clarified Bitcoin's value; just "anchoring" is enough. He's a master.
Compared to traditional gold, Bitcoin is more portable, divisible, and convenient for transactions. In recent global conflicts, it has also been seen as a haven.
Stable, easily divisible, easily preserved. These are the three characteristics of gold, and it has them all.
So, the approval of Bitcoin ETF by the United States is laying a giant trap.
The core of the United States isn't just superficially approving a Bitcoin ETF; it's thinking about how to use Bitcoin, this new asset class, to maintain and strengthen its financial hegemony.
Once the Bitcoin ETF is listed in the US, it will provide a safe and compliant Bitcoin investment channel to the world. How many countries, people, and types of capital previously restricted from buying will now confidently flow their money into the US?
At the same time, the United States has firmly grasped the influence of digital currency in its financial system.
Simply put, they're quick thinkers.
They're thinking of occupying a spot first. Whatever happens in the future, they can handle it.
They can completely use the "Bitcoin standard" strategy.
By "controlling the exchange interface between Bitcoin and fiat currency" and "influencing the market price of cryptocurrencies," they can use Bitcoin to replace the dollar again or as an aid to the dollar to conduct a new round of financial harvesting worldwide.
This is an open strategy.
Above, I've discussed the underlying logic behind the United States' approval of Bitcoin ETF: first, as a support for the dollar's value; second, as a new economic reservoir for the United States; and third, as a tool for establishing a new financial hegemony by the United States. The depth and height of my discussion are not commonly shared in the market. Old players in the cryptocurrency field are still stuck in the past growth logic. The underlying logic of Bitcoin has changed.
Bitcoin was in its infancy in the past decade, belonging to the lower classes who were lucky to touch it.
In the next decade, Bitcoin will enter a high-speed development period. When traditional big financial capital starts to join Bitcoin, the current market value of over 1 trillion will be just the beginning.
The traditional big capitals haven't fully got their chips yet, and they will rise to unimaginable heights.
I've said it: Ten Bitcoins can grant nobility. If you're still expecting a major pullback like the one on March 12 during this bull market, Wall Street and the US government will not stand for it.
Hold onto your chips tightly this time and stay in the car without moving.
PS: I've discovered a new project in the Bitcoin field, and I'm still learning. It's a project by Old Zhu (Wei Sha Zhu) to complete "Hal Finney's $10 million Bitcoin conjecture." Simply put, it's about equipping Bitcoin with the ruler it lacks and measuring global economic development with Bitcoin. It has tremendous potential and is fully capable of changing the social class.
