MSTR DUMP!!! WHY? Trade War and Tarriffs Looming!

All right, welcome back to the channel. So today's news: why is Strategy dumping? Man, what's going on with the tariffs in the marketplace? What can we expect moving forward? Let's get into it and figure out how we're going to turn this thing around. Okay, so um, let's take a look. Right, so uh, what I want to jump into right now is no, no Wall Street mumbo jumbo, just what you need to know in today's episode.

As we know, Strategy has been loading up on more and more Bitcoin, but that happened all last week, and uh, and they've been doing this uh, obviously for months and months and months. GameStop going full crypto—let's talk about that, as we touched on that yesterday. El Salvador Bitcoin bonds—I think they're relevant to talk about these in relation to the US potentially doing Bitcoin bonds in the future. Inflation is heating up uh, again, and that's why Wall Street is sweating. So I'm going to go over the inflation uh, reports today, tariffs, taxes, and a global power shuffle. Very important to discuss this because there are potential trade wars going on, and there's new developments on this. April 2nd is the day that's looming over everybody's head. And Bitcoin—it's still standing, but it's not standing so strong; it's around $84,000 or so. Um, so let's get into it, and let's start with Strategy.

Okay, quick recap on Strategy, present day into present time: 56,000 Bitcoin, 44 billion dollars worth of Bitcoin. Um, that's more Bitcoin than most countries, so that's good news. Average buy price of Strategy is $66,000. Now, when we look at Strategy's price right now, at today's time, we're down at about 291. So remember, we were up at 340 earlier this week; it's now at 291. Uh, Bitcoin's down to 83,700 to be exact, uh, and we just know two months ago Bitcoin was at 109,000; it's now down at 83,000 and change. No doubt, end of the year, end of the month, um, people are derisking, and we'll talk about what that is in a moment, uh, and so there's some considerations going on right here. So Strategy—we know that their main strategy over the year has been issuing common shares to buy stock, also issuing convertible notes—that's debt that they can turn into stock later. Okay, and uh, and they also have their preferred stock of Strike and Strife, uh, that are income plays for big investors who want to get an income stream. Now, some say that if Bitcoin keeps dipping, they'll have to sell their stock and dilute more shares, but here's the main kicker that I think is important for Strategy: they haven't used their Bitcoin really as loan collateral, uh, so that means they're not at risk of margin calls. Um, so uh, they're making bold bets, but they're being careful in doing it, so we don't really have to get all up in arms about Strategy. Are they going to go underwater? They're not going to go underwater, and they've got a good strategy in place—no pun intended.

All right. Now, GameStop has been big news, in case you haven't been following it. Um, just to give you a history on GameStop and why they might be shifting to more of a uh, MicroStrategy playbook, is they had a rough 2024. So sales for GameStop were down 27%; their profits were down 94%, um, and their US sales are down almost uh, 25%. But instead of giving up, they're they're definitely switching gears. And so GameStop just formed a Bitcoin investment committee; it's led by their CEO, Ryan Cohen. I was talking about this on yesterday's show. Uh, they've got $4.77 billion of cash, um, and they've got an opportunity to put some of that in Bitcoin. And the news on the street is $1.3 billion will go into Bitcoin. So they're basically thinking right now, what if we don't just sell games? What if we start buying Bitcoin? Uh, some people think that they may be a mini-Sailor; um, other thing, others think they might be a full crypto uh, you know, full crypto company, where they become the next Coinbase or Robin Hood, so to speak. Um, but the bottom line is they're not they're no longer just a a struggling video game store; they're actually moving into something bigger, which is exciting.

So let's get a little bit here into uh, Bitcoin bonds, and then we'll get into what's happening with uh, inflation numbers today, and we'll get into also the tariff wars that are taking place because that is affecting the market, and we'll get into April 2nd in just a minute because uh, that's what investors are looking at right now, and we see many at the end of the month that are moving into cash. So uh, important to look at these things, um, and important to know what's coming.

All right, so I think this is an interesting thing to look at because this is the future of where the US may go, and the US may put into place something called Bitcoin bonds. All right, and you've heard this, the talk of this—it's just an idea right now—but uh, El Salvador started doing this uh, or coming up with the idea of doing this back in 20 uh, 20 or 21, uh, to my knowledge, they have not implemented it yet, and uh, they're calling them volcano bonds for a for El Salvador, for a very specific reason. The idea is that these bond bonds would be a 10-year term, uh, they would pay a 6.5% interest, and then half the money would go to actually buy Bitcoin. So that's the plan that El Salvador has. Uh, the other half goes to build a Bitcoin city, uh, which is basically they're going to power their mining equipment through volcano power, um, and the and the US has been watching this closely, um, you know, Trump obviously signed this this executive order for the strategic Bitcoin reserve, um, and uh, and the goal is to buy more Bitcoin, and the goal is to obviously fund it with budget-neutral strategies. So this could be a way to do it with a budget-neutral strategy, so it may be launched, the strategic Bitcoin reserve by Bitcoin-backed bonds, you know, to raise cash for the US. So which means the US could start buying uh, Bitcoin, um, and using it as a national infrastructure. So El Salvador is kind of the experiment on this; they really haven't jumped into it, to my knowledge, um, because I think people who are investing in it see it as risky, uh, they see the 6.5% interest not as high as they'd like, based on some of the research that I've seen. So to my knowledge, it hasn't fully launched for El Salvador yet, but the US is considering the same strategy. The why, the reason why it would be powerful for the US is because the US is obviously a bigger country, and it would be more powerful for Bitcoin if the US jumped in and did something like this, um, and it could be massive, you know, they could buy uh, a trillion dollars worth of bonds, and a percentage of it would be backed by Bitcoin. Bitcoin uh, so rather than, you know, when they typically go buy bonds and it's backed by cash or treasuries, um, you know, they would go, excuse me, they would go issue these bonds, so when they issue bonds, it's typically backed by treasury or bit backed by US cash; they would be issuing these bonds, and some of it would be backed by Bitcoin, so which would be cool.

So anyway, let's get back to the bloodbath that's happened so far this week. We had MicroStrategy is down to about 291 so far; Bitcoin is down to 84,000; and Ethereum fell below 2,000. Uh, Solana and XRP hit took hits as well. Uh, we also see that the government has you has moved some Bitcoin, about 97 Bitcoin, um, and uh, and about 884, um, uh, Ethereum has been moved. So sometimes when this happen happens, you get traders that panic a little bit, um, and uh, when traders panic, it means usually they're about to sell, which floods the markets. Right, so the here's the key point of today is uh, the PC, the PCE report. So basically what that is is it basically says that um, it's the personal uh, consumption expenditure, I believe, and um, and so that's the acronym for it, PCE. And so basically, it's like how much are we spending? How how much do things cost these days? So it's kind of like the Fed's favorite inflation tool. And so when you look at last month, uh, the PCE year after year was up 2.8%, higher than expected, and month over month it was up 4%. So when we look at prices rising again, which is the basic bottom line of this, uh, and the Fed may not cut rates soon, that's that's not a good indicator. Right, so when prices are rising, um, and things are more expensive, that's not a great indicator for the US. We don't know when the Fed is going to cut the interest rates, but we know at some point in 2025 that will actually happen. But the main fear coming up and the big story is what we've been hearing about all week is April 2nd—new tariffs may hit imports coming into the United States. And so, you know, why that's not good is the markets don't like uncertainty right now, and that's just it, and it's uncertain as to how hard the tariffs are actually going to hit uh, the world and what's going to happen if the tariffs that are announced on April 2nd, um, become a bigger deal than the markets are expecting. And so I think what's happening is that the markets are pricing this in right now, and also you have uh, investors that are selling off right now and moving to cash, and they are moving to cash with the idea of what if it hits worse than we expect? So on April 2nd, what if the news is worse? Uh, you have a lot of investors who are selling off, going into cash, so if it does hit worse, they're not as impacted. You also have the end of the month, so there's rebalancing going on of portfolios, and so we have a drop today on Friday in the markets. So let's see what happens. Uh, you know, it's called de-risking. So you have Wall Street that is derisking right now, uh, you see this reflecting the price in the S&P 500, which is down I think more than 1.8% right now; the Nasdaq is down over two and a half percent, uh, and so we have the seventh weekly loss in nine weeks for the NASDAQ, and uh, the Dow dropped 650 points. So we've got some, you know, bearish news today, and we've had some bearish news over the last several weeks. Anyway, but um, but so that's what's going on in the markets right now, and that's why you see a a uh, dump going on with Strategy stock. Now, mind you, Strategy stock was at 940 or excuse me, 340 about uh, what, um, two, three days ago, and so that's a what we got, about a 15% drop from there, um, so it's a significant drop. Right, but we've been in this space before, and I also know that the um, you know, the level of resistance that Bitcoin needs to move through is uh, 89,000, and clearly we did not break through that this week, and so that's the current state of it, and uh, and so we need to hold right now with Bitcoin's price, and I'll get into that in a second. Really, the key support level for Bitcoin is 83,000, and so if you look right now, we're at 83,639. Um, if it if it goes below the 83,000 level, we could drop to 80 or even 76,000. So that's the support levels that we're looking for, um, is is hopefully it'll bounce off 83,000, but we have a several days till April uh, second comes, so uh, you know, I've got some dry powder right now that I was thinking about uh, dumping into today, but uh, Monday we could move lower. It's potential—not tax advice, not investment advice, not legal advice in the show at all—but uh, it's a potential that we could move lower, uh, so we need to watch for this and pay close attention. Also, with China—a big fear for April 2nd is uh, what's going on with China and the imports coming in from China. And so these taxes uh, that we're charging, um, you know, these imports that we're charging taxes on is to really protect the American infrastructure, is what Trump's trying to do. And so there's taxes coming in on EVs; there's taxes coming in on solar stuff; there's taxes coming in on semiconductors, um, and so there's big tasks going on, taxes coming on. So in April 2nd, when the announcement happens of like what's going to happen and what Trump's going to announce with these tariffs, you know, China could blow back and hit back, and and it could be an even bigger trade war. So that's what we need to be looking at. Companies that are going to be affected by this are Tesla, uh, General Motors, Apple, uh, you know, all the imports from China on the iPhones, uh, electric vehicles, things of that nature. So we need to be looking at this and be mindful. And this isn't new news—we knew this was coming up April 2nd, and hopefully the markets have priced it in, and hopefully the news is not like a big smack in the face where it's worse than is expected. If it is worse than is than is expected, I would expect that there would be a bigger sell-off than now. So that's the uh, basic idea.

Um, if uh, if Bitcoin bounces above the 50-day moving average at 89K, um, you know, we might have bulls jumping in again, um, and being more bullish. So that's basically the news of what's happening. Um, do I think it's going to drop below 76K? I I don't think so, but uh, we'll see what happens. Uh, we know that this past week whales have been buying those, so the indicators of whales buying 27,000 worth of Bitcoin worth $2.4 billion is still very bullish and good news, um, and we saw that um, uh, excuse me, not buying 20 2.4 billion was pulled off the exchanges, so that's a long-term bullish indicator when they're pulling money off the exchanges to hold in their wallets for the long term. So that's a a good indicator of uh, bullishness, um, so that's happened over the last week, and that's a bullish sign. Um, you know, there there's an element also of uh, stable coins and what's happening with bank rules uh, that are are good long-term indicators for what's happening. Uh, the US is publishing new laws to regulate them, so you have Wyoming uh, and Fidelity are testing US stable coins on platforms like Ethereum and also Avalanche. So it's good that we have companies like Fidelity and Wyoming getting into this stable coin marketplace, which is obviously a trend that's an indication of the Bitcoin reserve and also an indication of the US becoming a crypto capital of the world. So these are good long-term trends, um, and also the FDIC, which basically ensures your money, right? If if anything ever happens and banks fail, a certain amount of your money gets insured. Um, the FDIC recently said that banks don't need approval anymore to deal with crypto, so that's also a bullish sign as well. Um, so traditional finance is definitely warming up to uh, to Bitcoin and crypto fast. Unfortunately, the short-term marketplace of what's happening with the tariffs uh, has got markets uncertain, and uh, and the investors are de-risking right now, and that's kind of what's happening. So we've got a great movement, obviously, with all this infrastructure going in place. By no means am I bearish on the future; we're just sitting in a situation to confront reality of what's happening today and what could happen over the next couple days. Again, not financial advice, not tax advice, not legal advice, but we could go lower than where we're at right now, uh, pending the news, and it's also not the last day of the month. So if I look at the calendar right now, um, we've got what's the last day of the month here, so we've got whatever the last day of the month is, so we've got uh, what, the 30th or 31st, so we've got a couple more days in in next week to determine, um, you know, what's going to happen at the end of the month where uh, investors might be rebalancing portfolios, and then April 2nd comes mid-next week, and we'll find out what happens with the tariff. So next week's kind of a big week for what's happening, um, and you know, despite all of this, you've got Sailor who's not flinching, of course, still sticking to his strategy. Sailor believes that the ultimate long-term asset is Bitcoin; um, he believes that fiat is a melting iceberg, and we've heard him say this over and over and over again. And even if the price drops in the short term, we know that companies like Strategy are going to continue to gobble things up, whether the price goes up or the price goes down. Uh, but there is, you know, there is some talk of like if the MicroStrategy price goes down, he may need to issue more shares uh, if investors stop buying; the stock could take a hit. I mean, this is media speculation. I think overall what Strategy is doing to reinforce my point from yesterday is uh, the the new strategy that they have with issuing preferred stock with Strike and Strife is very bullish for 2025 because it's bringing institutional money into the stock, and also uh, there's lots of convertible notes that um, they can issue in 2025 that they haven't issued yet as part of their 2121 plan, which is their $42 billion plan. Uh, there's plenty of convertible stock that they can issue in 2025 to raise even more money to bit by Bitcoin. So I I don't think this is a real thing, per the media report of uh, you know, Strategy is going to have to just issue more and more common stock or issue more and more shares for uh, people to buy common stock. I I don't think that's a real um, uh, major concern for Strategy in 2025. I think they've got a great strategy for other ways to bring in money, and if they hit the ATM and they issue, you know, more shares, um, for people to gobble up, so be it. Right, uh, the NAV premium up until today was over two, so that NAV premium has obviously dropped, um, and I went over this on yesterday's show, but if you want to know what the NAV premium premium is again, um, it basically means net asset value. Somebody was asking me this again the other day, so it's basically the net asset value of Bitcoin, um, so with Strategy, they hold Bitcoin on their balance sheet, and so NAV means net asset value. So if you take all the Bitcoin that Strategy holds at today's value, uh, and then you minus off the debt, meaning the debt and money they borrowed to buy the Bitcoin, you get the net amount of Bitcoin. So let's say they had—this is for just example purposes; we know they have more—let's say they had 40 billion of Bitcoin, and they had three billion of debt, you would take the 40 billion minus out the three billion of debt, and then you'd get 37 billion as their net asset value. Okay, and um, and the M in NAV when you hear MNAV, that just means the market, okay? And so MNAV premium just basically means the market uh, in relation to the net asset value of Strategy's Bitcoin premium. So the market is willing to pay a premium over the net asset value of the Bitcoin that Strategy holds. So one more time, because this is important, you'll hear it all the time: you have the net asset value, so the net asset value of all Strategy's Bitcoin is X, right? Then you have the market, and the market, people like us, are willing to pay a premium, pay pay more than the net asset value of all their Bitcoin. And so when it we say that it's trading at a an MNAV of two, it's 2x the net asset value of their Bitcoin. So the market's willing to pay 2x what the net asset value of their Bitcoin is, so the market's willing to pay a premium for it, meaning pay more for it. So this just shows you how hot the stock actually is, um, in the eyes of investors because it sells at a premium, and it's been selling at a premium ever since. And the reason it sells at a premium—some people might go, "This is crazy; it sells at a premium; it's overpriced." The reason it sells at a premium is super simple: they don't just buy Bitcoin; they buy Bitcoin with leverage, and they use other people's money to buy Bitcoin. They issue shares, um, for people like us to buy common stock, um, so they issue paper basically, and we buy up common shares, uh, they they borrow money, and that's called convertible notes or convertible debt, and they buy Bitcoin, and they have Strike, and they have Strife, which is additional money they bring in through preferred stock that pays more of fixed income payments. So they have all these ways of leverage to bring in more money to buy Bitcoin, which is why they are actually trading at a premium. Super important to know because all this stuff that you hear that uh, you may hear from the media—they're overpriced, or they're in trouble, or they're this they're not overleveraged; they're just not okay; they're not—if you go look at it, look at the the debt that that Strategy has used to actually buy Bitcoin, it's low. All right, so they're in a very good position, and it warrants that people pay more for their stock compared to the amount of Bitcoin they hold on their balance sheet because of the things that I just said.

So despite the bearish news of the market dumping and Strategy down and all this crap that's happening, we need to pay attention to the good indicators and the solid uh, foundation of what this company is, and it's very important to always continue to remember that and to know the fundamentals of what they're doing, because if you know the fundamentals, when days like this happen, you don't get shaken, um, and that's the way that I look at it. Okay, but we have to report what's real and what's going on, and the truth is inflation isn't going away anytime soon, and it doesn't look like the Fed has an immediate plan, so that's the the reality, and the April 2nd tariffs are looming, and we we have to see what happens. Is is there going to be a a blowback that takes place, um, and we don't know; we've already seen some blowback, but we don't know. Positive: banks are joining crypto, so that's good; governments are holding Bitcoin, that's good; institutions are buying dips, so that's good; stocks are shaky; the dollar's weak; Bitcoin obviously low right now, uh, it's holding strong, but like we'd like to see it holding strong at 109,000, not at 83,000. So I do get the sentiment in the marketplace, so that's why I zoom in to what's happening now to not give fluff and then zoom out to look at what we're really uh, involved in, right? From an educational standpoint—not investment advice.

All right, so none of this is get-rich-quick right now; it's it's it's uh, for me, it's hold; it's stick to the strategy—no pun intended—believe the fundamentals of what I know to be true, and look at the freaking infrastructure; it's insane, right? The infrastructure of what's being built up right now, all the news I just gave you on the banks, right, and what they're doing—banks are now crypto-friendly. All the news on what's happening—we know there are some interest rate cuts coming in this year; we know Trump wants it; we know when interest rates get cut, it's good for the market; more money moves around; businesses can invest in more things; we have more capital available; our interest rates on our houses go down; payments go down; we have free liquid cash, and that flows into freaking Bitcoin. So these are good signs. Strategic Reserve—good sign. Okay, US looking to do Bitcoin bonds—good sign, right? Or some budget-neutral strategies to buy more Bitcoin—good signs, good things in terms of the infrastructure that's built for the future. Short-term today—shitty; nobody likes it. Okay, just get straight to it; no sugarcoating.

All right, so Strategy, in in the recap of today: Strategy has over a half a million Bitcoin; GameStop is a new crypto player; when are they going to pull the trigger on $1.3 billion? We'll see; I'd like to see it soon, so we have a nice boom in the market. Um, Bitcoin bonds are becoming real; they're being explored. Uh, inflation and tariffs are clearly shaking Wall Street uh, big time; the markets do not like uncertainty; I think they're pricing it in, but they don't know what's going to happen, so we'll see what the heck's going to happen by April 2nd. Uh, the FDI just opened the door to crypto banks, so the FDIC is allowing banks to just boom, get in the game more, um, and uh, it's a wild time right now. Let's face it—we we did not expect this to be happening, um, in 2025 to be at this point; we expected to be on an upward trajectory. Could April be the boom that we're looking for? Let's see, um, but uh, we we just we just don't know in the short term, and I sure as heck don't know in the short term what's going to happen, but I do maintain my bullish sentiment for 2025 and probably moving into 2026 at this point as well, um, because this this is the typical period where we would be getting some boosts and some spiking uh, based on previous bull runs, and we haven't gotten it in January, and we haven't gotten it in February, and we sure as heck haven't gotten it in March. So whatever you're you're experiencing right now on this, feel free to put it down below in the comments; I'll be happy to get back to some of the comments, uh, and see what you guys think about all this, but that's that's the weather in the sports, you know. Um, what are you thinking about it? Curious as to what you guys are thinking right now. TCC says, "Bought some MicroStrategy this week." I got you, man; I bought I bought some MSTU yesterday; I bought in yesterday, which is the 2x version of MicroStrategy, and uh, and it's down, right? So, um, and I've got more dry powder; I just transferred in there to I'm looking to pull the trigger; don't think I'm pulling it today; I think I'm going to wait till next week—not financial advice, just what I'm doing. Okay. Um, somebody's saying Carla, Carla says, "How do I convince my 60-year-old business partner uh, with a percent of income to invest in digital assets? She's a realtor, and I'm the business developer; I enrolled with the right trainers and make cautious personal investment in crypto blah blah; I want her to agree 4% of our savings." Yeah, that's good. So Carla's saying, "How do I convin convince my business partner to invest more into crypto?" Um, so not financial advice, uh, here's how I would do something like this if I were talking to a family member or somebody um, that I want to put money into to uh, to Bitcoin: number one, uh, I would focus on the things that are most conservative first and are most real, which is Bitcoin—that's the first thing that I focus on. Uh, if you start throwing around all these terms, um, with things that are popping up every day of like you could do this and you could do that, and you give them three different things to look at at once, you'll just create confusion; you'll create misunderstood words for this person, and they will be completely lost. Um, so get them to watch some videos on Bitcoin and understand what's going on. If you want to sell anything, the first thing to do is get them to understand the problem. So like if if you look at what's happening with companies right now, and and I know this because I I sell online for a living; I sell on stages; I sell on videos; I sell on all different platforms, right? So the way to sell anything is one—first you have to present the fact that there's a problem. And so when you look at companies like Strategy that have gotten into Bitcoin, it's because they had a major problem. When you look at GameStop getting into Bitcoin, it's because they have a problem; now they're heavy in cash reserves, but based on the way the stock looks, um, they've got they've got obviously or the company looks overall, they clearly have to build out a bigger future. So if you want to get somebody, a loved one, into these things, um, and and educate them, I should say—not get them into it, but educate them—you have to get them to understand first and have knowledge of it. So first, give knowledge of the problem, and you can literally print this out; go do the research. If you research the US dollar…

Since the beginning of time, we've we've increased the money supply by 6.57% every year for like the last hundred years, on average. So the first thing you just have to look at is, when you're talking to somebody about this who is not educated on it, is to like, "Here's the problem." You know, we keep printing more money, and so if we keep printing more money, it's just like a plane that's flying into a headwind. If you're flying at 6.5 miles per hour and then the printing of money is coming in your face, or the wind at 6.5 miles per hour, you're not going anywhere.

So when you're educating your friend on this, Carla, you just go, "Hey, like wouldn't it suck like if you were flying in a plane and going six miles per hour, but the wind coming was six miles per hour, and you're not moving anywhere?" Well, that's what's happening as the US prints more money. And so you have to look at the actual data, not what the Fed actually comes out with and not what they say inflation is, um, because their inflation reports don't typically include the the goods and services that you and I actually want to buy. So, so it's manipulated. So you got to look at like the printing of money causes problems, and it devalues the dollar. In fact, the what I shared on yesterday's show is the that the dollar since 2020, the purchasing power of the dollar in 2020, um, if you look at the terms from 2020 to 2025, a dollar today buys 74, 74 cents. So a dollar spends like 74 cents. So there's a 26% decrease. James from Invest Answer shared that yesterday; I shared it on yesterday's show. So there's been a 26% decrease in uh the purchasing power of the dollar in the last five years.

So if somebody's just sitting in cash, you're screwed. Um, if we're printing 6.7% more money every year, you you got to do 7% in your investments just to just keep up. So that rules out bonds, um, that rules out uh some mutual funds, that rules out some investments. So that's how I would I would explain this, Carla, um, to the person that you're talking to, is that you don't you're not actually maintaining your purchasing power, right? And then the the other explanation, if you want to help a loved one and get them educated, I know this because my 80-some-year-old stepfather bought Bitcoin, um, you know, uh, I think we got him to buy his first piece of Bitcoin in 2020. My brother and I convinced him in 2020, uh, so he bought, I think, 20,000 worth of Bitcoin. So we've been able to convince many people to do it, um, from an educational standpoint of why it's good, not buy it-- shouldn't say uh-- but he went and bought it. And so I'm doing it now with a trust company where we're literally having a conversation with them to educate them, and the and the one of the trustees is like, "Hey, okay." So we're sitting down and we're going to have an educational conversation of of what's happening with the economy and why the printing of money will continue to get worse, and if that happens, why that decreases decreases one's purchasing power. So that's the conversation that you should have, Carla. Does that make sense? Um, and that would help your friend understand that. And the other way to do it is great.

So if you go earn a dollar in the marketplace, Mr. Business Partner or Mrs. Business Partner, and you're earning that dollar, and then you take that dollar and you put it in cash, you're automatically losing about 7% every year. So that dollar then becomes like 93 cents because of the printing of money; you automatically lose that, uh, and that's just on average. During COVID, it was worse; we had years where you lost 25% of your purchasing power. All right, so you got to look at the averages on it. So if someone just sits in cash, you're in trouble. And this is the whole premise behind Strategy; they didn't want to sit in cash because they're like, "If we sit in cash, we're going to lose our purchasing power, and in five to six years the company will be bankrupt." Make sense? So this is why Strategy made the move. And so if you look at Strategy as a macro and you look at an individual as a micro, I mean, I have a huge portion of my company reserves in Bitcoin; huge portion. Okay, in fact, I don't keep any hardly any company reserves in cash; a very small portion in cash, the rest is in Bitcoin. So when you look at that, the the idea of this of like larger companies have done this because of that very point: you work hard and then you're going to store the money in cash reserves, and cash reserves are going to do nothing. Okay, great. So you stare you store it in T-bills, which may do 4%, but even at 4%, if you're printing money at a rate of 7% or some years 10%, I mean, in five or six years you're losing a huge amount of your your money. So that's the case point that you make to this individual.

Okay, the second case point is, um, you point out the fact that the US debt is worth $36 trillion. So the only way that the US is going to get out of the debt now, or manage or cope or put a band-aid over it-- and it's so funny if you look at so many of the different institutions, not to get philosophical, but I'm going to-- so many different institutions today, like even modern medicine, they they put they put band-aids over the wound; they don't necessarily fix the wound. Uh, the the US government, right, uh, they they they typically they put they put a band-aid over the wound, but they don't have a solution for it. And the band-aid for the US government is just print more money. You know, print more money. Uh, what I see in modern medicine, and I've observed with recent family members going through to the ICU, is like they just they they put drugs over the problem; we can't figure out what it is, let's put you on this drug. So they m they're not finding out like what's the symptom or the cause of it. So to get your friend, Carla, to answer your question, to understand why one needs Bitcoin, educate them on the the systemic problem that's going on in the United States and the world right now, and realize that there is no solution to the future for the US government; there is none; there's no solution. You can't you can't uh fed your way out of it with the these inflation uh ideas of, "We're going to lower inflation." What's that going to do? What's that going to do if if the Fed keeps inflation at 2.8% down to 2.5%? Is that going to change investor confidence? Yes, artificially, but is that going to solve the printing of money problem? No, it's not, because we have so much damn debt; how are we going to afford our debt payments? So there there's no solution right now, which is why the US is forced literally to look at buying Bitcoin, and the why why the US has to buy Bitcoin; they have to; there's no other way out.

And so if you look at the average investor right now, older people may think, "Hey, I'm going to go to the grave in 20 years or whatever; there's nothing I I don't really have to worry about new investment decisions and what have you, and I can continue to do 10% in the stock market." But older people aren't really doing 10% in the stock market; they're in more conservative, maybe dividend-based stocks, so they're not really doing 10%; they might be doing 8%. And so when you have the older generation that's doing that, and they're peeling off dividend dividends, and you have a 7% printing of the money supply, they're not getting anywhere. And so if they live another 20 years, they're actually quality of living is going to go down over those 20 years. So you can even sell an older person on this idea. So that's the basic idea; you like you can't you you got a wind coming in your face at 500 miles per hour, and you're flying 500 miles per hour; you don't go anywhere. And so if you if you if you turn the knife on on your friend to the problem, to wake up and go feel the problem and look out five to 10 years, if we keep putting our money and our reserves of our company in cash and we don't have a strategy to outpace inflation, the company goes under. I can tell you so much of my funding this year to fund my company came because of Bitcoin; came because of Bitcoin. And I and I I bought more Bitcoin in 2023; I've been buying since 2018, but in 2023 when I bought Bitcoin it was at $33,000. So even at the $84,000 price point, I'm up almost a 3x. What do you think I could do with that increase of the price to fund new investments, new things? If we ever have a bad month and I need to I need a way to pay for payroll or pay for new projects, I have the money. Make sense? So looking at this from that from that viewpoint to give your um to really give your business partner, Carla, that perspective can be huge. You know, and then all of a sudden they're like, "Wow, we have a problem." Then when the problem's established, somebody reaches for the solution. But if you start going in with Bitcoin and MicroStrategy and XRP, like no nobody brand new is going to understand this stuff; the people who have been for a while don't understand it; they don't have a clue, right? So the the then the then the basic premise is, okay, then you transition from the problem, and then if you want to go into the solution, you hit them with the fact of like, "What if you could take your hard-earned energy that you're putting into cash that is a melting iceberg, or you're putting into bonds in your business that is a melting iceberg, or you're putting into safe reserves that literally they're not safe because you're losing money; it's not safe." Right? If I have money in cash, it's not safe; it may seem that way in the short term, but over five years it's not safe; it's risky because you lose it. So then you go, "Great, so all this energy that you're putting into cash that you work for during the day, Mr. Business Partner that you're talking to now, the hard energy, you lose that energy, and so your work energy gets wasted in the form of the dollar, in the form of money printing, and the form of law. So you waste it." So the only choice at that point is to then, "How do I take my energy and how do I store it into something that's going to increase the energy that I put out and exponentially grow the energy, so I'm multiplying energy?" And that's monetary energy, and that's that's the entire premise of what Bitcoin is; that's the entire premise of what Sailor talks about, about taking energy instead of instead of wasting energy, preserving energy. And so you want to preserve your monetary energy, and you want to put it into a network that doesn't lose its energy. The US network, the United States of America, is a network where money gets put into it and it doesn't get preserved; it gets lost. And every citizen in the United or the majority of citizens in the United States are a symptom of a bigger cause and a problem, because if you look at the macro of the government and the country that's supposed to be the strongest country in the world that doesn't know how to manage its checkbook, then you look at every citizen in the US and you wonder why most people are in debt, because they don't know how to manage their damn checkbook, and they don't have investments that can get them ahead, period. And instead of that, they have institutions working against them, like credit card companies that charge 28% interest. And so if you have inflation at 7%, or excuse me, not inflation, but money printing at 7%, that's decreasing your purchasing power; if you have credit card debt whacking you at 28%; and if you have taxes, right, that are being used to fund government initiatives that are fraud, some of them, right? And the US tax dollars is now being wasted on government initiatives that are fraud, wasted on Social Security to individuals who aren't even in the system, and wasted on outdated systems that that you can't even balance the checkbook of the United States because they don't even have a checks and balances; when they spend money, they don't they don't have a checks and balances that says, "Approved, you should send this check out." So you you we're talking about an absolute pathetic disaster, right? Okay, you think that would sell them? Yeah, because that's the that's the current state; that's the current state.

If you look at the look at now, are there good things going on in the United States of America? Yes, we have capitalism; we have entrepreneurship. But we have things good being created by the entrepreneurs of the world and the hard workers of the world and the good employees of the world that are are putting their hard-earned energy into what a system that then doesn't reward them, taxes them. So the only way the only way to outpace a broken system, you can't wait for the damn government; you can't wait for them to get their together because they're $36 trillion in debt. What you have to actually do is look at where the puck is going and look at where the infrastructure of the United States is going that does set the pace, despite the fact that we have a pathetic pathetic pathetic infrastructure right now of how things are are actually run financially. All right, so now you have to look at, "Where is the puck going, and what do they have to do? They must do this; the US must do this, and they will do this; it's going to happen; mark my words. You will have a Bitcoin reserve that is going to continue to grow, and you will have a Bitcoin reserve that's going to get funded." Okay, I I feel like I can take that to the bank. The pace of what is happening is a different story, and so and and as for me, I look at I'm like, "I'm not going to wait for the US to get their craft together." I saw this in 2018 when I started investing in Bitcoin, right? I saw this with Strategy in 2020 when I started following Sailor and bought my first shares of Strategy in 2020. So what you do is you look at where the puck's going, but it's moving slowly, holy cow, right? Like it's so the infrastructure is so slow because it takes time to build because you're turning around a a a you're turning around an economy; you're turning around an economy that's $36 trillion in debt, and so you're trying to move that thing that's so slow and so wasteful. And what are we trying to move it into? We're trying to take a system that doesn't preserve your economic energy but wastes it; it wastes it like literally wastes it, and we're trying to take that wasteful system and put it into a monetary system, which is Bitcoin, that preserves energy, preserves monetary energy, and can outpace this wasteful system at such a rate of whether you believe Bitcoin is going to do 20% a year or 30% a year or 40% a year, the S&P 500 as the standard right now at 14% a year is not going to cut it; it's not going to cut it. And so and even if it did, you're not going to have companies putting their balance sheet into the S&P 500; that's not going to happen. But you are going to have companies that are going to put their balance sheet into a commodity, which is Bitcoin, which is a decentralized network at the end of the day, which isn't controlled by anybody, which can be manipulated at the end of the day, but actually preserves monetary energy. So if you're having this conversation with anybody, I I just think somebody has to if they if they understand this premise, if they get this basic concept of what's happening, you would have to be a fool not to seriously look at Bitcoin. And I can't say I'm not going to say invest, not to just look at it as a possible solution, but this isn't the narrative that's being told in the media; this isn't the narrative that they want spread. And consider the fact that there are people working against us right now that don't want this to happen; consider that fact. There are so you have people like Trump and his his cabinet and people around him that are are putting this stuff in place and trying to move the country in the right place and and making smart budget cuts. Like I don't understand how any media station on the face of the planet can sit there and go, "They shouldn't be making budget cuts," like what like what are you stupid? Like we we are in debt; we should be making budget cuts. If you're in debt in your f your household, would you look at things that are wasteful and start making budget cuts? Yeah. So anybody who's looking at this to say they shouldn't be making budget cuts, it's crazy. Now the tariffs, I get, can be a debatable thing; it's causing uncertainty; it's causing these problems; it's causing all this. Yeah, but I think in the in the case, I think Trump's trying to level the playing field. So like in the short term, are we going to take are we taking a hit? Yeah, we're taking a hit, but the US has to do something, and you have finally an administration that's taking some action to do it rather than spending money on all kinds of things that are ridiculous.

So as you explain this to your friend, what what sol-- somebody put a better solution on the table; please please present me with something better, and I'll look at it, but I don't see it; I don't see it anywhere. So that would be the talk, Carla, that I would have with your friend to to give them the the the idea of what we're actually dealing dealing with here. Okay? And and so to put hope into the situation, to not make this doom and gloom, we are all here because Bitcoin, right, is it educational content here? Is the solution. It is. And and all these companies are moving; MicroStrategy's moving; uh uh GameStop's looking at this. And why are these companies looking at this? Because they have to; they have to. And they're moving because there's there's large companies in the world that have so much money and they're ridiculously wealthy that they're not they don't feel the pinch and they don't feel the knife being dug in, but 99% of the population does, including most companies out there in the world. The large bohemists, like massive companies, they don't have to look at moving Bitcoin to their balance sheet right now because they don't have a major problem, but 99% of the world does have a major problem, and that's the that's who we should be governing for; that's who we should be educating; that's who we should be teaching, period, end of story. And and that's the problem. And if you don't think taxes are a problem in this country, geez, when just when when did we get to 49% tax rates to think that's okay? What what happened to taxation without representation? You know what I'm saying? We've just accepted, and we have a country and a world that's gone into apathy that allows governments and allows tax organizations to tax you whenever they want in a way that they want. No, we should be finding a way to lower the tax bill; this is ridiculous, ridiculous. How in a state you can pay 49% tax or 54% tax when you're in top income bracket; this is ridiculous. So thank God we have an administration that's trying to do something about it; it's about time. And so if we got to go to trade wars, I don't want to go to physical wars, but if we got to go to trade wars to go, "Hey, let's level the playing field; let's do something about it; let's cut some budgets; let's piss off the media stations." They're still sitting in the Biden administration and got their thumbs up their ass; let's do it, because the media s the most media situations and media stations, they don't come out with anything but bad news anyway. There's some good ones, but most of them are just spreading rumors, man; they're spreading rumors; that's their job; that's their job to to to forward the initiatives of the large the top people in power in the world who don't want people like you and me to rise up; that's their job. And and they're bought and paid for by the people at the top top top that are hiding in the dark corners of the night trying to keep themselves invisible while they're pushing their agenda on nations and countries and worlds and taxpayers and people like you so they can get rich and so the rest of the world can stay poor. So what are you going to do, Mr. Citizen? Right? That's how I would explain it to your friend, Carla, you know. So that's it, right? And there's not a better solution. So right now I'm going to take what's going on in the marketplace and go, "Yeah." Is Bitcoin down at 83,800? Yeah. Is is Strategy down at 289? Yeah. But like I'm I'm Bitcoin; I'm I'm in Bitcoin for the future, period. And that is the asset that will take us into the real 21st century because we haven't arrived yet; we're still sitting back in the Flintstone era, um, clearly with our systems of how we're running government right now and our our budget systems of how we run our technology, just to balance a balance a checkbook; we're sitting in the Flintstone era, clearly, right? In the way that we actually run our finance in America, and we need to get into the 21st century with technology; technology is going to get us out of it, um, and and Bitcoin is the new technology. So there you have it, right? So amen. Amen. Michael says, "Yeah." Um, yeah. And Dante: "Taxes are so horrible; they take 50%; it's unfair; it's unfair." So you know what? We people are voting with their wallets; start voting with your wallets, um, and and let's just uh um let's just let's just like let's make decisions; I I believe as a as a people that forces the hand of government to start doing something about it. And hey, we elected this administration; whether you like Trump or not, the people elected them, and because the people want change, man. So let's go in; let's continue to get the world educated on Bitcoin; let's continue to get the world educated on my on Strategy because this is what's required. All right, hope it serves you. Have a tremendous rest of the day and stay well, um, and have a great great great day. And hey, the markets are down; it happens, right? It's been happening a lot, and nobody likes it. One day, one day, I believe in 2025 we will be on a rocket ride-- not financial advice-- and good things will start happening. Okay, so uh so let's uh let's keep the hope; let's keep the faith; let's keep the you know the agreement that this is a good thing and uh in terms of the long-term future, and things will go well. All right, stay well everybody; have a tremendous rest of the day, and I'll see you guys on the other side.