The Case Against Bitcoin: Are There Better Opportunities?

Well, finally happened. Bitcoin is at all time highs. Ethereum is flirting with all time highs. All of a sudden it's cool to be in crypto again. But doesn't it feel like this came out of nowhere? This is not just a technology, it's a new asset class. Nobody was talking about this just a few months ago. What's fueling this crazy run? Why has it felt so quiet? There's been no cuts from the Federal Reserve that have been driving this bull run and yet it has still gone to record levels. The reason for that is because for the is big money moving into the space. I expected the ETF launch to be successful, but I think it's quite impressive just how successful it's been. Wall street doesn't just like bitcoin, they love bitcoin. It's been over 5,500 ETF launches in history. Never have we had a fund get to $3 billion in AUM in the first 30 days. BlackRock and Fidelity both just did it. So two, for the first time in history, is it going to hit 150,000? Is Ethereum going to 10,000? And most importantly, should you buy more or should you sell right now? Well, let me tell you what I am doing with my money. I own a sizable amount of Ethereum and I own a little bit of Bitcoin. I have made a ton of money in this bull run, but am I buying more? No. I am not touching Bitcoin or Ethereum at these prices with the dollars that I have in savings. It's not because I don't think it's going higher. I think it will and it's not because I don't think there's going to be entire companies that are built and launched on blockchain and that it will be the new stock market within 15 years. Because I do think that the reason why I am not putting more money into Bitcoin or Ethereum is because I refuse to chase. The best time to make any investment is when no one else is making that investment. Remember a couple of years ago, remember 2021 when Bitcoin was passing 50,000 for the first time and everybody was making their price projections of it going to 150 and 200,000 and that is when you had the greater fool theory kick in. That means that I'm simply buying into this asset class believing that there will be a greater fool who will buy it from me at a higher price later. That is not the time to take your dry powder and put it into an asset class. The time to do that is when you believe in something long term and nobody else is paying attention to it. For example, I mentioned that Bitcoin has tripled since January of 2023. Do you know what else has tripled since January of 2023? Meta stock. I said it from stage publicly that Meta stock was insanely undervalued. But everybody was giving their attention to TikTok and nobody was buying Meta stock. It's gone up more than 3x in the same time frame. Carvana stock is up 10 times since January of 2023. No one talked about it, but you would have made three times the money last year if you had put your money into Carvana stock than if you had bought Bitcoin at its bottom of this cycle. Here's another example. I made my money in E commerce. I help people build their first million dollar business. I believe the way to get rich is to build a business and then invest the profits into long term assets. Right now E commerce where I made most of my money is in the toilet. People are on it across the world. Big E commerce companies are going out of business and I am rubbing my hands together so freaking excited to pounce in this space because I, I know exactly where it's going in five years because I know exactly what is going to happen in this space because I know exactly what platforms are going to win and what types of brands are going to take off. And I am loving the fact that I am growing by hundreds of thousands of dollars per month in revenue while everybody else is fleeing for the exits. I feel the opposite about crypto. I launched an NFT project in the middle of the biggest bear market in crypto history. I launched an NFT project when ethereum went from 4,000 to 1,000. That's when I launched my NFT project and I loved it because I knew everybody in the space was going to sleep on it and that meant that I had to build an actually good community and an actual good product that I have been fulfilling consistently for the last two years and I will consistently fulfill for the next three to five years because I have a very long term view and I want to pounce when everybody else is fleeing for the exits. That is how I think about my long term investments. Now the other argument here is to dollar cost average consistently into Bitcoin, Ethereum or the S&P 500 which also is right at record highs. That is an appropriate, safe, consistent strategy because you're not betting your house. Disclaimer I'm an idiot. You Follow on the Internet. I know nothing about investment, don't listen to anything that I have to say. But taking your dry powder or your life savings and putting it into one thing, hoping that it is going to pop, is not something to do once the bull run is already halfway through. Unless of course, you have a 20 year time horizon. In that case, you tend to win regardless of when you buy. When bitcoin was at 60,000 in 2021, I said, and I said publicly that I will buy bitcoin, I will buy more when it hits 30,000 again. If you liked Bitcoin at 50,000, you should love it at 30,000. You have to think, where is this going five years from now? And I was laughed out of the Twitter sphere. I was laughed out of the room, it'll never go back to 30,000. And I said, maybe, and if it doesn't, I'll never buy it. Lo and behold, not only did it come down to 30,000, but it went to 25, 20 down to 18. And I said publicly on this channel, this is the accumulation period. This is the time that if you like this asset, you should buy it. This is the time where you're going to have about an 18 month window to accumulate whatever you want to accumulate. This is that period. And I said, I'm buying crypto, I'm buying meta stock, I'm interested in real estate, I didn't buy any real estate, but these are the sectors that I was looking at. Now is not the time to do that. Now is the time to go back to your list of assets that you would like to buy and look at the prices in which you can't say no. So as everybody else is telling you why Bitcoin is going to 150,000, I will tell you that they might be right. I will also tell you that I will not buy as it continues to go up as everybody else is telling you that Ethereum is going to 10,000. I say I hope so, but I am not putting more money into it. If, however, it drops back down to 2000, I might be a player. There is, however, one other alternative and it's the alternative that I am pursuing. Because even though I am not putting more of my money into crypto, I do plan to accumulate more crypto. You see, I think that Bitcoin and Ethereum are eventually going to be more than just assets that we speculate on. I think that they will be ways that we transact. I happen to think that Square at some point is going to make it possible for Every hairdresser and every food truck and everyone who takes square payments to choose what currency they get paid in. You get paid in Bitcoin or Ethereum or whatever coin you want, or you can get paid in US Dollars. I do have a Mastermind. In fact, I used to run a $50,000 a year mastermind. Then I shut down and replaced with an NFT group that I still have Mastermind meetings with to this day. And I've been doing it for the last two years. And we launched it at 5 ETH, when ETH was $1000. I shut down my $50,000 a year mastermind in favor of taking $1700 a year for three years. That math doesn't math. Except if I am really bullish on an asset class and I want to get paid in that currency because I can see where the space is going. I knew that taking payments in that format was best for my customers. Why? Because it's an NFT instead of a Mastermind, which means that if you own a spot in that Mastermind, you can sell it to somebody else. And we have several members who came to a couple meetups, met some people, decided they got their value, sold their spot to someone else, and they recouped their entire investment. So they got all this value from this product that I had created and it was zero net cost to them. So I'm looking at this technology and saying, how do I make this the best possible experience for my customers? And then if I can participate in the asset class, Ethereum and Bitcoin and accumulate in that way, that's how it will increase my exposure to Bitcoin and Ethereum. But I will not take my dry powder that I have taken from savings and that I've built up after running profitable businesses and having liquidation events on investments that I made in the E Commerce space. I will not take that money and put it into things that have already started their bull run. Over the next year, you will hear so many talking heads tell you that Bitcoin is going to 150,000 because that's the stuff that gets attention and it gets clicks. You will hear that Ethereum is going to 10,000. You will hear that Brazil and Saudi Arabia and China and Russia are going to start their own cryptocurrency because that's the stuff that gets clicks. And you know what? All of those things might be true, but those are not the things to base your financial decisions on. If you do not yet have a net worth of $1 million or more the way that you Build it and you do it in the fastest way possible is you build a business first and then you take the profits from that and you invest them into long term assets. And if you build a business the right way, that will have a much better return on investment that almost any cryptocurrency has. For example, I started my first E commerce business with $600. I sold it with my partner four years later for $16 million. That is a good return on investment. That's the two part strategy. You build a business, you invest the profits. But chasing after what everybody else is doing I think is a fool's errand. Of course there's going to be one of you that buys now and sells at 250,000 a coin and you're going to rub it in my face. And you will be right and I will be wrong. But what I've chosen to do with my money is I invest when everybody else is scared. But I believe in an asset class. For me right now that's E Commerce and there's a few public companies that I'm tracking that I've already shared with you. But it's not chasing what everybody else has already discovered. Two years after the fact that I knew it was undervalued. The secret is for you to look at what's undervalued over the next two years that no one else is coming. I'm Ryan. Danny Moran with Capitalism Dot Com. Let me know what you're tracking in the comments of this video and I'll see you on the next one. Take care.