WARNING: The Truth About Bitcoin

The views and opinions expressed in this video are just that: opinions. This content is for entertainment and informational purposes only and should not be taken as investment, financial, or other advice. Aka, don't listen to some random dude on YouTube and then FOMO into something to make money. Instead, consult a professional, do your own research, always smash that like button, and invest at your own risk. Enjoy.

Okay, so with that out of the way, we need to talk about what's been happening lately with Bitcoin. Without exaggeration, in the last 24 hours, I've received hundreds of comments either asking me to talk about Bitcoin or telling me I need to buy Bitcoin before I miss the train. There are also people just commenting "Bitcoin." That seems very common for some reason. I had no idea why, but everyone just seems to comment "Bitcoin."

Now, before anyone gets triggered—and this happens every single time I make a single video on Bitcoin or cryptocurrency—people say, "Well, I didn't subscribe for you to make videos on cryptocurrency. You're not a cryptocurrency channel, gram; you should stay in your own lane." And you know what? Those people are very much right. I am NOT a cryptocurrency channel. However, my main focus on this channel is investing, and that’s what the focus is on. Regardless of where you stand in the whole cryptocurrency thing, chances are anyone investing really just cares about one thing, and that is making money and then using that to go and buy a Lamborghini.

So that's what we're going to be discussing today—not so much the Lamborghini part, but more so Bitcoin and then making money, because at the time I'm filming this right now, Bitcoin has just passed eight thousand dollars, which officially puts it in bull market territory. And that is something that I think is deserving of a video.

Now, some of you may remember the last time I made a video about Bitcoin was back in November of 2018, when Bitcoin at the time was thirty-five hundred. It's really no surprise; prior to that, Bitcoin had just a very bad year. It hit a high in December of 2017 of nearly twenty thousand dollars, and then a mass sell-off ensued, causing it to drop significantly.

Some of that drop was really fueled by, I believe, just an over-exuberance of investors willing to buy in at any possible price they could, combined with overseas regulation and government taxation, and year-end profit-taking. And get ready for it: even more sinister than that is price manipulation, which artificially inflated Bitcoin way beyond its true value.

In the video I made when Bitcoin was at $3500, at the very end, I jokingly said I wasn't going to be making a Bitcoin video for another seven months, and I am officially going back to cryptocurrency retirement for another seven months. But you know what? Funny enough, enough time has gone by; it's pretty much seven months, and here we are.

So let's start here: what happened, and what caused Bitcoin to more than double in price within the last 60 days from 3,500 all the way to over 8,000? These are my own personal theories with what I think is really going on.

Now, my first theory when it comes to this is global turmoil. This happens anytime investors are worried about the overall economy or strength of the stock market, and for many people, this could be a very nerve-wracking time. Now, even though I'm a firm believer in the century-long proven method of the buy and hold strategy and not trying to time the market, if one wanted to play devil's advocate, one could argue that right now, interest rates are historically low, and if we do enter a recession, we don't have much room to lower interest rates much further to then boost the economy, and this could be an issue in the future.

Someone can also argue that there's a lot of uncertainty with tariffs and how this may play out. It's no surprise that the only thing investors really don't like is uncertainty, and it becomes very difficult to price this into the market until it actually happens. Finally, one can also say that we should see a drop in the stock market prices because they've just been going up for way too long.

Even though some of those arguments might be overblown or more based on paranoia, many investors do get antsy and decide to sell and move their investments over to different asset classes, and that might include bonds and gold and also Bitcoin. So, given all of that, I do think that there's a valid argument to say that the worse the economy does and the worse people expect it to do, the less they trust it, the more they put them in other asset classes, including Bitcoin, causing the price just to go up.

Now, the second theory I have is that Bitcoin is slowly gaining more mainstream acceptance. Now, I think one of the unforeseen benefits of having Bitcoin drop in price is that for the first time in a while, it was not fluctuating in price ten to twenty percent in a day, and it can actually be used for the purposes it was created for, which is to be used as a currency.

Just imagine what would happen if the US dollar traded like Bitcoin, and everyone expected this 100 dollar bill to really be worth a thousand dollars in just a few months. Well, first of all, if that were the case, then everyone would just hoard cash and no one would spend it, and that would cause the demand for money like this to skyrocket beyond what is ever reasonable. Secondly, you would never be able to actually buy anything with this because one day the cost of avocado toast could be ten dollars, and then a week later it might be sixty dollars, and then a week after that it might be two dollars. You could never have a successful currency like that.

So now you're starting to notice a lot more mainstream businesses beginning to use and adopt Bitcoin, and this includes companies like Starbucks, Nordstrom’s, Whole Foods, and Home Depot. While it's rumored to really just be an experiment for right now, it's very evident that more and more people and businesses are starting to take it seriously.

Now my third theory when it comes to this is definitely going to be very controversial, and I'm sure a lot of people are going to be very upset at my opinion, which is really for entertainment purposes only: the price of Bitcoin is being manipulated yet again.

Now again, all of this is just my opinion, and none of this is fact, and all of this is hypothetical, but hypothetically, if this is happening, here is what I think could be going on, if you catch my drift. All of this, I think, comes down to two things: tether and Bitfinex.

No, tether is a type of cryptocurrency that is allegedly backed by the US dollar. This means that you can go and buy five dollars' worth of tether, and you know it's always going to be worth about five dollars because they go and back it up by buying five dollars' worth of US currency. Now, many investors like to use this because it means they can keep their money in cryptocurrency, they can move it around very easily, and most importantly, they're not gonna have to worry about the price of this fluctuating up or down like ten, twenty, thirty percent in a day.

No, it's at this point that we get to gather around the campfire, boys and girls, and get into the nitty-gritty of this: over the last few years, there's really been some suspicion that there isn't actually any proof that tether is indeed backed by any real money. For example, it would be very easy for someone—let's call that someone Bob—to go and just hypothetically create his own cryptocurrency like tether, and then you can have investors go and buy your cryptocurrency thinking it's actually backed by real money. Then what happens is that Bob goes and gets all the real money and in return gives that person the cryptocurrency that they just created.

And then one day, if Bob just wants to go and run off with all of the money and just disappear without a trace, Bob can do that because Bob has all of the real money, and all the investors get is something that's backed by nothing. Now remember, I'm not saying that this is the case. All of this is purely hypothetical and all of this is just my wild imagination, but I'm obviously not the only one who's thought these thoughts because the New York Attorney General has begun investigating whether or not tether is actually what they say they are because, like I said, there is no actual proof that if I go and buy $100 worth of tether, that they go and actually back it up with $100 of real US currency.

Now, this is the real sort of juicy drama that people should be investigating and paying attention to—not all of this social media stuff going on. This is what people should be looking into. Now, what makes all of this drama even more juicy is that according to the Attorney General's filing, tether is under the same management, control, and ownership of one of the largest cryptocurrency exchanges, Bitfinex.

Now here's why all of this is relevant and all of this is very important. Previously, Bitfinex ran into banking issues after it was cut off from Wells Fargo and needed money to serve as customer deposits and withdrawals. So Bitfinex went and wired $1 billion overseas to a company that was supposed to act as an intermediary between the exchanges and the customers. But obviously, though, you know, things happen and things don't quite go according to plan, and oh, $850 million just went missing. Poof, gone, vanished. That's interesting.

Yeah, I don't know. And obviously, Bitfinex had no idea that money was just going to go missing when they wired a billion dollars overseas like that. And that's a massive inconvenience. So what do they do? They try to cover the losses by borrowing money from tether, which remember, like I had mentioned earlier, is under the same control, management, and ownership as Bitfinex.

So they basically just lost close to a billion dollars and then just borrowed money from themselves to pay back the customers. Now, if this isn't interesting enough, tether originally said that it was backed one-to-one with the US dollar, and to show this, I will put up a screenshot right here on the screen so that you can read this out loud. They say they're backed one-to-one with the US dollar, but given all of the recent suspicions and allegations and government investigations, they changed the verbiage on their website. Now it may include other assets and receivables from loans made by tether to third parties, which may include affiliated entities.

Which, wait a second, affiliated entities? Loans? Could that potentially be Bitfinex? I don't know, wild guess; entertainment purposes only, just a hypothesis here. I'm thinking out loud. Hmm, this is some food for thought there.

But now let's flash forward just a few weeks ago, where tether was ordered in court to produce information and documents, as well as the injunction as required. You know, this doesn't mean that they're guilty or that they've done anything wrong. All of this means is that the government says, "Hey, we see you're making these claims; now just show us some proof that this is actually true."

Now, this has happened a few times before, and every single time, Bitfinex and tether say we're telling the truth; we have absolutely nothing, but you can't see the proof. We shouldn't have to show you any proof, but just take our word for it; we're telling the truth. With you guys, it's just you can't see it; we don't want to show anybody, but just believe us.

But the government does maintain the authority to say, "Yes, we will need to see some proof," and this is what's going to be ordered. And now just a few days after they've been ordered from courts to go and produce documentation of having money, they go and come up with this: Bitfinex confirms initial exchange offering to raise up to $1 billion in tether. Now that is a very weird coincidence that tether is subpoenaed in court to produce documentation, and then magically, a few days later, raises $1 billion worth of tether.

And then at the same time, Bitcoin spikes 4% within just a few minutes. Bitfinex and tether were also suspected of price manipulation in the last run up of Bitcoin as well, but again, all of that is suspected. There is no proof; everyone is innocent until proven guilty, and all of these are just allegations.

Now here's my own conspiracy theory with what could be happening, and again, this is just my wild imagination, entertainment only, if you guys understand that. If you wouldn't mind just hitting the like button so I know that you guys understand; just opinion. I'm not accusing anyone of doing anything, but here is my own theory—not based on fact.

I think one could hypothesize that if tether is not really backed by USD, then they could hypothetically just create as much currency as they want to out of thin air. Then they can go and do that to buy Bitcoin at very pivotal moments that then drive up the price of Bitcoin due to false demand. And then they can do all of this anonymously within shell companies and then move the money overseas. Oops! $850 million is gone; don't know where that went, but yeah, that's okay, we can print more.

And I believe until we see a legitimate third party audit on both Bitfinex and tether, that this could hypothetically, in my own imagining, should be correct, especially when they raised $1 billion worth of tether at conveniently the same time that Bitcoin is going up in price. And especially considering that they've never produced a third-party government audit, I'm just saying the whole thing just doesn't add up, and all of it comes up to you to come up with your own conclusion.

No, anyways, I realize that was very long-winded, but anyway, my fourth theory as to why Bitcoin is going up is really just a lot of people FOMOing into it. And that means fear of missing out. It's people seeing that the price of Bitcoin is going up, so they go and buy in so they don't miss their chance at getting rich. But the very act in and of itself causes the price of Bitcoin to go up a little bit further, which causes other people to want to go in and buy as well so they don't miss their chance of getting rich either.

Then more people go and buy in because they see the prices going up even faster, and they think, "I don't want to miss out on all of this money! This is my chance now; I can get rich!" And that causes the price to go up even higher. And then it happens again and again and again. Given the price history of Bitcoin, we can see some huge swings almost instantaneously in price.

All of the other things that I've mentioned in this video are really just my own opinion, and none of this is fact. But the one thing that I do 100% see happening right now with Bitcoin is FOMO. And when it comes to investing, this is never the habit of a successful, profitable long-term investor.

Ever do not ever invest in something just because you feel like you're missing out on profits. And now is your chance to strike it big and get rich. While I certainly don't doubt that the price of this could continually climb higher just because more and more people just pile into this wanting to make a profit, this is not the sign of a healthy long-term investment.

People rarely ever get rich by jumping into investments on a whim just because they feel like they don't want to be left out. And now, in terms of where I see this going in the future, I'll just end it with this: no one knows. We could certainly guess, and some of those guesses may prove correct. But at the end of the day, it's really just taking a shot in the dark.

If you're okay putting your money in Bitcoin and you accept the risk that you could potentially lose a lot of money, then by all means, go for it. But never jump in because of FOMO. Always do your own research, and never invest money that you cannot afford to lose.

So with that said, you guys, thank you so much for watching. If you haven't already, smash that like button. Make sure to do that. And again, all of this is just my opinion for entertainment purposes only—not legal advice, not financial advice. None of this is fact; this is all just hypothesis in my head. And that's it. Make sure to subscribe, and also feel free to add me on Instagram. I post here pretty much daily, so if you want to be a part of it, feel free to add me there. Thank you again for watching, and until next time.