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How’s it going everybody this is beat the bush today i’m gonna talk about bitcoins again mainly because of a stratospheric increases in the last few months just a few months ago it was at $2,500 and today it’s at $7,200 it’s close to three times the original cost when i started talking about them now this time i’m not gonna be like oh look you should have bought it and
Stuff this time it sort of worries me because it’s increased so much so quickly this is what i and many other people would call hockey sticking whenever some asset price they start to kind of exponentially increase like this it looks like a hockey stick it just goes joomla goes up now this reminds me of the story of tulip prices where people were bidding on tulips
About 400 years ago and they kept on bidding it higher and higher whatever the currency was a tulip price as long time ago it saw its price increased by one thousand one hundred percent in about a single month now in comparison bitcoin increases prices about 7080 percent in the last month alone so no it’s not gaining as crazy as tulip prices back then but it’s kind
Of getting there i’m seeing the price accellerate in increases so i would have been a lot more comfortable if bitcoin was slowly rising if like right now it was at like three thousand five hundred or so half the price of what it is then i would be pretty comfortable but at this moment i feel like it’s a highly elevated danger right now and just take a look at this
Google trends chart where you can see how many times people are looking at bitcoin and recently the interested in bitcoin searches on google increased to a level of 100 now i can’t help but say probably because people are reading on the news oh yeah bitcoin it went up to 7,000 or something and like they keep talking about these newly minted millionaires and then
They go and buy cars or something or whoever that like bought like 300 bitcoins and then they’re like super rich right now then people are paying attention to this because it’s like oh i want a piece of this and then you have a sort of like a word-of-mouth thing where it spreads more and more so in a sense how do you value a bitcoin you can’t the people all over the
World is like they don’t know no one knows how to value how much one coin is worth we know currently there’s about 16 point 7 million bitcoins in circulation and in the future there’s gonna be at most 21 million this is the limit of how many bitcoins there will be in the universe this is how it is designed so yes it has some sort of scarcity which causes is price to
Increase and the value people place on this is how much faith they have in this bitcoin how much it can actually exchange for real goods and services now in the future if this faith in the bitcoin ever cracks if there is some super duper hacking or maybe if there’s another coin or something else that’s better than bitcoin or maybe like a bunch of governments around
The world they like banned bitcoins or something something that causes a bit going to no longer be valued any more than yes sure it’s gonna plummet all the way to zero but currently and this is all speculation by me is that i feel like the bitcoin prices has increased way too quickly in way too short a time and i feel like right now it’s probably in some sort of
Midterm bubble here what i value this at is about 2000 $3000 so if it hovers around there and it slowly creeps up maybe i don’t know 20 percent a year then i would be okay with with that pace but 70 percent every single month is kind of crazy so here’s something fun to do which is purely speculative and i like to speculate that is why i have a little bit of money in
It and if i ever lose it all completely it’s not gonna affect me in one bit so here’s my speculation i think maybe just maybe it might quadruple in price in another three months or so it’s gonna try to double and then double again on top of that perhaps at that point of about thirty thousand dollars per bitcoin people are gonna start to go oh my gosh this is just
Crazy why would anybody pay thirty thousand dollars that’s like the price of a car for one single bitcoin at that crazy level maybe people are gonna start to wake up and then go no no this is too crazy i’m just gonna sell out and then once you have some people starting to sell it’s gonna start a panic especially for people that joined in at a higher price because
They have a lot to lose if you bought it at 7,200 dollars and you paid good hard-earned money for this and you see it plummet like 20 percent you’re gonna go oh you’re gonna get scared and then you’re gonna start selling and then it’s gonna cause a domino effect with everybody else now i did say this is highly speculative and i think currently is in a short-term
Bubble long term if bitcoin has as much value as a united states dollar this would mean a lot of things would need to happen because if you have a bitcoin that as strong as a united states dollar this is super big news here because that basically means you know almost half the world or something is using bitcoin as a currency and it’s gonna be widely used and that
Is the point where a bitcoin could be valued a lot more us currency is worth 1.2 trillion dollars if you add up all the dollars all the coins together if the 21 million bitcoins in the future is gonna work 1.2 trillion dollars it means each bitcoin it’s gonna be valued at roughly 500 thousand dollars each so i think for me all of this is pretty crazy money right
Now and i’m probably gonna look to sell a small portion of it just so that i can recuperate the money that i put in already the rest of it i can just let it ride because there is a possibility that bitcoin could last for a longer time than the tulips during this time i’ve been getting more and more messages more and more comments about saying oh i want to invest in
Bitcoin how should i invest in it my recommendation is be very very careful right now like right now i’m not buying any more bitcoin than it is because i already had some from long time ago but if you’re really itching to get into this bitcoin business i would allocate 10% of your total investable assets what is total investable assets this is the amount that is
Over and beyond your one year worth of emergency savings your emergency savings is how much you need to survive for one single year so you look at your burn rate and you go okay i spent this much for one single year you need to have this much in cash put aside and you don’t touch this and anything over and beyond this is your amount of investable assets let’s say
You have ten thousand dollars of total investable assets then i would not ever put more than $1,000 this is 10% of your investable assets into cryptocurrencies in general now if you have this $1,000 and you want to invest in cryptocurrency today that means you really should not put all of it in at this single moment in time what i would recommend is to just put
1/10 of it 1/6 of it even for one month ok wait till next month and then buy another 1/10 or 1/6 of it and then keep on doing this for six months or ten months so that you average in because there’s a really really high chance that right now we’re in a huge bubble and we might see things drop quite a bit in a few months even with all this warning if you’re still
Interested in buying bitcoin you can check out my affiliate link to coinbase down in the video description below or if you buy more than a hundred dollars of bitcoin you can get another ten dollars added on to it for you now coinbase does have a 1.5% charge for any kind of transaction when you buy or sell if you buy anything less than $200 so you’re gonna charge
You a flat rate of $2.99 so the best way to minimize your fees as a percentage of what you buy is to buy a two hundred and four dollars worth of it so that you would pay the three dollars if you buy one hundred dollars you also pay the three dollar flat rate so – well just buy just enough so that it’s three dollars exactly now if the ten percent of your total
Investable assets it’s less than two thousand dollars which means if you divide it into ten pieces it’s gonna be exactly two hundred dollars if you have less than 2000 dollars that means yeah you’re gonna have a little less than that which means you have to pay a little bit more fees so with all this bitcoin craziness i hope you really see the parallels to tulips
And also the dot-com bubble because back then people were just like swimming and money people were just buying all these fancy cars and they’re like oh my gosh it’s great and then you know the dot-com bubble came it crashed and you know people lose fortunes in this people get greedy and they’re gonna go oh i’m gonna put all my investable assets in it okay seven
Thousand two hundred dollars okay i’m gonna put everything’s but we’re gonna put like seventy two thousand dollars in it and then all of a sudden it drops to a thousand dollars and then most of your savings just evaporate it in the thin air so be very very careful never invest more than 10% of your investable assets here and going slowly as well don’t forget to
Give me a like on this video let me know what you think that the peak is gonna be before the localized dip if you’re interested in supporting my channel have an audible link down in the video description below or you can get a free audiobook and if you don’t like this audiobook you can cancel it before the subscription expires you can still keep this audiobook
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Transcribed from video
$7000 Bitcoin and Impending Crash By BeatTheBush
