Why I Hold Bitcoin | Three Reasons Everyone Should Understand


Well, let’s go to everyone. My name is Nicholas Merten here, a day to dash in today’s April. Twenty eighth of twenty twenty. Well, folks, I hope you are having a fantastic day wherever you are. And in today’s video, I want to spend some time to make the rational argument as to why I personally believe that Bitcoin is an asset that everyone should have some form of exposure to. Now, I want to make it very clear right off the bat, this is not direct financial advice. You have to do your own due diligence and make these decisions for yourself. And again, the theme of the day, if you don’t feel you understand bitcoin and cryptocurrencies enough to feel comfortable, then don’t make any form of investment until you feel comfortable enough to do so. But in this video, I’m going to be exchanging more on a broader perspective as to why I personally believe that having some exposure to bitcoin is beneficial compared it to not having some form of exposure. And again, it’s just my opinion. OK. So we’re gonna keep it simple. There’s three major bullet points we’re gonna be talking about. But I do want to let you all know towards the end of the video that we have a sponsored review for hash wallet, an innovative harbor wallet solution to store your digital cryptocurrencies at into the video. So stay tuned for that. You won’t want to miss it. All right. Let’s go ahead and talk about these three key points. I just go ahead and get them out straight away and we’ll dive deeper in each of these. First off, we have to understand that Bitcoin itself is a great tool in order in this case to possibly become a store value with its cap supply at twenty 21 million coins and no inflation beyond that point. But over the next few years, a decreasing inflation rate until we reach that cap supply. It’s a very big selling point for bitcoin. The second thing is the macro environment. Understanding what’s going on in the world around bitcoin and along with that, the size and scale of wealth in other markets across the world that have a chance to flow into new assets like Bitcoin. And the third aspect here that we should be talking about is simple diversification and exposure to high yielding or performing assets, which Bitcoin has been leading the way with in many regards. OK, so we’ve talked about this three points. Please give me the time of day, though, to explain a little bit more in depth as to why these are all valuable, because I think not understanding the context behind it is going to leave a lot of investors confused or possibly caught up in the short term kind of thinking of watching the day to day price is a big one. All right. So let’s just go ahead and talk to you first about the first topic we discussed, which is Bitcoin is an asset understanding its fundamentals, its cap supply. So we’ve already talked about having of it. I think many of you here probably know about the having of it, which is actually coming up here in the next coming weeks. Basically, the fixed schedules supply reduction per block of bitcoin. Basically to put that in simple terms, as every 10 minutes there is a generation of a couple of bitcoin that no, it’s generated every 10 minutes is going to be cut in half. And this basically leads to a supply shock over the next coming months, in the next few years in Bitcoin’s price, which leads to these cyclical waves that we’ve seen here on the chart. And that’s mentioned the expanding cycles that we’ve seen. So we can see here that even though we have expanding cycles for bitcoin, we can see here that over time we’ve continuously time and time again have these very exponential rallies where valuations start to rise not only to new highs, but also usually tend to set new lows in this case, new significant lows that show that buyers are coming in at higher, higher levels in this case when we have corrections. And also, we’re willing to pay higher premiums as we go higher, as there’s more users on the network, as there’s more people owning or understanding Bitcoin as an asset. And then also, in this case, as the having of it causes a supply shock, rigor in regards to the demand that’s currently in store for Bitcoin in this case. So there’s a certain amount of the man in the market on a day to day basis. That number tends to grow after the having event over the next coming weeks and months after having Aventis Price starts to pick up. And then we enter into these exponential cycles and that initial spark to the cycles caused from the reduction in new bitcoin being issued. So again, a massive supply shock and therefore demand starts to heavily outweigh the supply side, which pushes prices even higher. All right. So very important to understand that caps supply and also, if you’re just talking about it on a fundamental basis, the important thing to realize is we take a look at a lot of major world assets like gold. In this case, it has a very limited supply, usually only has about 1 to 2 percent inflation every year, meaning that we basically mining refine in this case wanted 2 percent new gold every year. So it increases the base of place. After 50 years or so, you’re going to probably have 50 to 75 years. In this case, you’re going to have a doubling of the gold supply, but it’s still seen as a world reserve store value, whereas in the case of Bitcoin, we know that there will never be more than 21 million coins. And it’s the very big selling point here, not to have some of this just limited in nature, but something that’s finite. So my opinion, that makes it the the ultimate store value. And if you’re really looking for something that keeps things limited, it’s not deflationary in the sense that we’re starting to take apart some of the supply to a large degree. And it’s also not inflationary like gold is. At the end of the day, it does have an increase in supply. So, again, this is the perfect medium here where we have a fixed supply, perfect amount in order to have. A store value or a hedge in this case that you could store, well, now, next off, I want to talk about the macro perspective because this really puts things into context. We have markets across the world, whether it’s equity markets, whether it’s treasuries or other bond government bonds. Currency markets that total into the hundreds of trillions of dollars when you’re really taking it all into account. In this case, between currency markets, bonds and also equity markets, we have so much wealth parked in the world right now that is going through a very turbulent time. These assets are tied. All three of the ones we just mentioned are tied to the actions of governments and the actions of certain economic players, all types of different elements in the real world. And when these, you know, owners of these assets in this case write these assets that are worth these trillions of dollars, go through these turbulent times, investors look for alternatives. They look for ways to park their capital elsewhere. And there’s sometimes some direct reasons for that to markets that we can build a very clear example of this for or in this case, saving deposits when people just are owning physical cash or currency of some form. And along with that as well, treasuries or other government bonds, these again are multi-trillion dollar markets. There is a ton of wealth parked in here. It’s likely that if you own some form of four one K unit I.R.A. in this case, if you have any kind of retirement account that you likely not only have money in your savings account like practically every American or every other citizen house in the world to some degree. But along with that. In this case, you’ve also got exposure to some form of government bonds or otherwise known as fixed income assets. Now, these again are multi-trillion dollar markets. But I want to talk about something that’s changing in regards to the world stage, and it’s even happening to the large GI itself, the United States. And that is the concept of negative interest rates and hyper inflation. Now, again, these have been kind of, you know, things that again, now we’ve known of a hyper inflation, this case. But I I would doubt this. I would I would doubt anyone who would say that we thought a year or two ago that it would be possible for the United States to be seeing some form of hyperinflation or some form of negative interest rates. Where, to put it in context, we’re printing excessive amounts of money when we’re talking about hyperinflation or just mass amounts of inflation. The second component here being negative interest rates and the component that you are actually getting penalized for saving money. You’re having to pay the bank to hold deposits, whereas instead it previously was that in positive interest rate territory, which is, you know, what the norm has been for practically all of history. In this case, you get paid to have your deposits there because the bank would be living it out to other people. So we’re in this very interesting gray zone now where this kind of twilight zone mentality of central bank monetary policy has become the norm. We can see here that the Federal Reserve balance sheet, this is the central bank of the United States going here from four point two trillion dollars in assets to 6.5 trillion. And that number is set to go all the way to 9 trillion. We’re barely just getting started with this. So we’re nearly doubling the amount of base monetary supply of the economy. We’re injecting a ton of new capital, buying off a ton of assets like treasuries and things that like that are driving yields even lower because as the price of treasuries and government bonds go up, the value in this case will increase on those bonds. But the yields drop the yields in the sense of the percentage of basically yield that you get paid in order for holding that government debt, start to go down toward zero interest in negative territory. And again, we can see here that this is happening with all central banks from the European Central Bank to the Bank of Japan to the People’s Bank of China. You can see here that this is just measuring this for central banks. There’s other central banks in the world which would that this number is even larger. But we’ve added trillions of dollars of assets in this period of time, and that number is only going to expand. And then also, again, we have the central bank rates themselves. Right. This is very important to keep in mind here. We have Switzerland, for example, down to basically almost a negative percentage point. The Japanese interest rate down negative 0.1 percent. European Central Bank rate, as well as the Swedish interest rate as zero percent. Exactly. And then you have a variety of banks from the Danish, the British, Israeli, American, Australian, Canadian, New Zealand and Norwegian central banks that are very, very close to testing not only zero percent interest, but along with that, stepping into the same ballpark that the Swiss and Japan are in with negative interest rates. Don’t doubt for a second that over the next year or two, we are gonna have to probably put ourselves in a position where we test with negative interest rates or that central banks will be curious enough to try this. And quite frankly, we’re very close to it. We’ve gone from about 2.5 percent down to a quarter of a percentage point. Is it too difficult to think that in this short period of time that we’ve dropped so much that we wouldn’t take that step in the negative interest rate territory, that this won’t be enough and that we have to stimulate even further? It’s crazy. I mean, this is, again, Japan here that during the crash or everything went down to negative 1 percent, but still can’t escape out of negative interest rate territory. It’s still there. So we have to understand that this is going to have massive ramifications. If you’re a saver right now, if you have money in a retirement account and fixed income assets, you’re going to be penalized for this because if you have money in your savings account, then you’re getting penalized in this case for having money in a bank. Right. You’re you’re basically going to be paying out interest to your bag crazy enough in order to holder deposits and along with that as well. And just to be clear, this has been a reality in Europe, in Japan for the last few years. But a with that as well, you’ve also got treasuries and government bonds that are going to start penalizing you for holding. You’re going to have to pay in order to hold this IOU that the government has given you. Right. It doesn’t make much sense right now, cause the value of those treasuries and bonds will go up a little bit in the short term. But again, the negative yield you’re being penalized with eventually will start to outweigh the increase in bond price. So it’s very important to keep in mind here. And then also, again, if rates were to normalize, eventually, again, the bond value is going to drop quite harshly as well. So, again, at the end of the day, most people are going to get screwed in this if they’re holding these assets long term. So that guest is. This leads us really to our third point. You’re talking about looking at other assets in this case, not only in the sense of performance, but also assets that can hedge in this case. Right. The importance of diversification during these times. Bitcoin was one of the best performing assets here. This is this is a recent article those put together for the last twelve months of price action. And we can see here a bitcoin is actually performed quite nicely. Go ahead here. Grab this chart. This compares bitcoin to a variety of assets, takes a look at, for example, TLT, which is U.S. Treasuries. We’ve got G.L., the Gold QQQ, which is the Nasdaq on this case as well. You’ve got a variety of things. The Dix’s the dollar index. You get a lot of the different indices as well as the S sbx with the S&P 500. You’ve got oil in this case. You’ve got a lot of different measures here and you can see across all these different markets. Bitcoin has been the best performing asset with all its volatility, with all the scare, with all the crazy price increases and price drops that have happened over the last twelve months. We’re still the best performing asset. Now, again, even if he took it here from exactly 20, 20, we’re still the best performing asset here. Very important to take in mind here, very important. And I think this really speaks to the nature of Bitcoin being an emerging asset and why it’s important have some form of a diversification and exposure to these assets. Not saying much, but all of it in Bitcoin. That’s not the kind of risk profile that anyone needs to be taking, or least the vast majority people need to be taken. But it’s understanding that there aren’t many markets in the world that have this kind of small size of scale, but potential to grow. Let’s just take a look. For example, this is a really great visualization we’ve talked about before on the channel from the money project that came out back in twenty seventeen. And interestingly enough, we’re actually not too far off from the valuations here. Bitcoin is currently at around 140 billion instead of 100 billion from this chart. The rest of the cryptocurrency market cap is around eighty seven billion right now. And a theorem at the moment is sitting at around 21, 22 billion. So a little bit smaller. But we can see here this is roughly about the size of crypto market at the moment. You can see some of the biggest tech companies here. It’s the 50 richest people in the world. California’s GDP, the Fed’s current balance sheet. Currency markets, gold. The stock market. You can also see global money supply, which sucks, but the narrow money and broad money supply here. Now, I want to focus in on two categories here. We talked about Bitcoin being able to serve as a store value in this case and start to swallow up some of the valuation, a store valuation. Basically, the market for hedges and stores of value of gold is probably one of the best ones we can look at here. And this is taking gold at a seven point seven trillion dollar market cap in this case for the overall supply of gold multiplied by the current price per ounce. And in this case, the actual price is a little bit higher. So we’re over 10 trillion dollar market cap here. So tenderly in dollars, pretty great. Pretty crazy stuff. But even bigger than that is the global money supply. And in this case, we’re talking about nearly in this case. You know, if you want to rough it off, you’re right. You’re talking about well over in this case, I would say to the broad money supply that’s measured both of these 90 trillion dollars. All right. Now, again, this number is probably increased over time. But let’s just give or take it. Be very conservative at it. Ninety trillion dollars in this case in the form of currency wealth and then also through gold. That’s not even including treasuries. It’s not including other forms of government bonds. We’re talking again about this 100 trillion plus market in this case, right? Probably up to 2 trillion, 200 trillion dollars. We’re talking about the size of government debt across the world. Right. Give or take somewhere in that ballpark. Bitcoin right now sitting in one hundred forty billion dollar market cap, it’s this little square here a little bit bigger. You think there’s a chance that that could easily 10x go to a trillion dollar market cap, about two or three trillion. Would that really be too crazy to think that we could see valuations go that high? The bitcoin could become one of the many asset categories on this list that holds trillions of dollars of wealth. I think it’s very realistic. It’s not going to happen overnight. If that’s what you’re looking for, then sorry, this isn’t the market for you guys. This is a market that’s going gonna take some time to develop. But having anywhere between three or five percent exposure in your portfolio, you will have that 3 to 5 percent not only serves as a hedge in case Bitcoin does succeed, but it also does it risk the vast majority of your wealth in this case? It’s a hedge on betting in this case that bitcoin is going to be able to serve as a hedge, that it’s going to be an emerging asset, that it’s not going to be a small speculative 140 billion dollar asset. It’s going to be a multi trillion dollar market. That’s the whole goal. They’re having some exposure to Bitcoin. It’s to hedge against the depreciation of currencies across the world. The depreciation of you holding on to bonds or treasuries, we’re starting to be penalized for holding onto those bonds. And along with that as well, having your money in deposit accounts. And then also, not to mention it’s not just on the negative interest rate side. It’s on the printing side through inflation, through central bank monetary policy, where they inject massive amounts of cash and they appreciate your purchasing power. You think that’s helping out the everyday, Joe? It’s not. Anyways, I remember not enough. I hope you all enjoyed this segment here. Let’s go ahead and dive straight into our review for hash wallet. Already, everyone. So let’s go ahead and spend some time to take a look at today’s sponser. And it is no other than hash wallet. Now, for those who are out there who care about the security of your digital assets as much as I do, I highly recommend you stay tuned for this review to learn about what they’re doing. But it’s simple. Hash Wallet is aiming to build an innovative hardware wallet solution for your digital assets. They’re not only using a lot of Cutting-Edge techniques in order to make sure that anything important in relation to your wallet is done offline on the hardware device. But along with that, they’re utilizing a lot of interesting technologies like biometric data in order to validate that any transfer funds or movement of your crypto is done by you and you only. And I really like the approach of Hashwi and I’ve seen a lot of software wallets and a lot of hardware wallets. And I got to say, this is much more, I think, of a consumer facing product at the end of the day for hardware while solution. So we’re not going to take a look at the actual product itself, both in software and also hardware side. But along with that talk about the security, how it acts in a secure nature, and also about their Indiegogo campaign where they’re raising to make this a reality. All right. So let’s go ahead and dive straight into the actual product. So first off here with the hash wallet, we have to understand that there are two components to it. There is the hardware wallet and the software wallet, the hardware, while it is where you’re actually going to be nearly storing the keys in this case, but also validating with your biometric data in order to make any form of transaction. As you can see, it’s very sleek. It’s in the shape of an average debit or credit card. And you can see here you have the biometric input here where you put your thumb and your finger in this case. That’s again, unique to you. It’s a unique validation and key tool in order to make sure that any transactions are happening from you. And that’s of it as well. Of course, you can see the address here. You can see the amount of Krabi you’re sending to validate that you’re sending the proper amount to the proper address. And you can also use the software wallet in this case in order to manage your portfolio or watch what kind of assets that you have. And it’s important to note here that the Hashwi, it is a multi-asset tool. In this case, you can store a variety of cryptocurrencies inside your hash wallet, which is pretty unique. So let’s go ahead here and talk a little bit about the actual security aspect here. All right. So how does hash what actually keep your fund secure? Well, I want to go ahead and just talk a little bit about some of the potential attack vectors. A lot of the even hardware, while solutions deal with a lot of issues that software walls can deal with. Man in the middle attacks, for example, where someone in the middle of you actually processing or transferring this information, seeing your private key or that validation information and being able to corrupt it or use it to their advantage. And then along with that as well, in regards to programmable wallets, there’s a lot of flaws that can inevitably leave you vulnerable to other forms of attacks or possibly making, you know, problems yourself in this case when you’re dealing with seed phrases and a lot of other aspects of private key management. So the way that the wallet actually goes about keeping your funds secure is that no one, not even you, the user, will actually see the private key that gets generated inside the wallet. It’s all done off-line. And it’s not programmable. So people can’t take it apart. People can’t decrypted. In this case, everything is done on the wallet and it’s completely secure and off-line. So if no one sees the private key in this case and the only way that you can actually access that private key is through your biometric data, you’ve killed off any points of attack. In this case, it’s not generator on some Web site. It’s not generated through some software platform and even through a hardware wallet system that can be compromised. So I think it’s a really interesting approach at the end of the day. And the great thing about it as well is that it’s utilizing your fingerprint for the final validation here, as well as making sure that you know exactly what action you’re validating. So really cool here and something so small that you could fit inside your wallet. I think it’s a really big step, an improvement from some of the legacy hardware wallet solutions that’s been in the cryptocurrency space. And again, is much more consumer facing. Now, again, as we talked about, you’ve also got the hash wallet manager. So they’re not only gonna be building a mobile, but also desktop version that will allow you to actually visualize your current cryptocurrency holdings. Pretty self-explanatory here. Nothing too crazy or innovative, but this is where you can actually initiate transactions. So you initiate, for example, that you want to send a certain kind of cryptocurrencies or certain type of cryptocurrency to a certain amount to a specific address. And then you actually have to utilize the hardware while in order to sign it with your biometric data. So again, very clean user experience here. He has known a big user experience both here and I love the design of the wallet here, very sleek, very simple, doesn’t overcomplicate things. Now, all in all here, the product itself is very clean and I like the aspects of it security here. So I recommend if you guys are interested to go through the Web site to learn a little bit more about the product, watch some of the videos that they have showcased in the actual product functioning. And you can also check as well the Hashwi indie Gogo campaign. You can see where they’re at currently in regards to progress in developing the wallet and also possibly get your hands on. By supporting the project. So they’re currently aiming to raise about fifty four thousand dollars here in regards to their campaign. The flexible goal in this case of possibly raising more. So I recommend you guys take a look here, learn a little bit about the product here. You can read through the campaign here, see some kind of design concepts here and see the different perks that they offer. But I highly recommend you guys give them a chance and check them out. I’m always very pleased to see more hardware while the solutions coming out and just generally wall solutions in the cryptocurrency space. And I think Hashwi in this case has a real chance of competing with the likes of treasure as well as Ledger. I think that we need something that’s much more consumer facing and sleek, and I think in this case this really awesome merger between a clean user experience on the software side and also clean user experience on the hardware side is what’s going to be able to take this to a much larger mainstream audience. So if you guys are interested, check out the links, download the description to learn more and get your hands on a hash wallet today.


Ledger Nano X - The secure hardware wallet

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