The Stage Is Set For Bitcoin To Soar

Recording in March 2020, we breakdown the fall of the stock market, the printing of lots of fed money, interest rates hovering at zero, and what this actually means for Bitcoin. Even though Bitcoin fell with the stocks, what will the rise of this cryptocurrency be? 

Gary and I break all this down because this, exactly, is why Bitcoin was developed. It's as if the stage was specifically designed for this type of currency. 

Interested in getting your feet wet in Crypto?

Download the Chrome Extension Lolli to get money back on some of your favorite purchases. Get $10 in Bitcoin when you use this link: https://lolli.com/ref/su72Kpnsem

Get the Fold App to receive Satoshi's (a type of Bitcoin) for gift card purchases from some frequently used brands (Starbucks, Amazon, Target, etc. Use this link to receive 20,000 Satoshis after your first purchase. https://use.foldapp.com/r/gTcqtrPk

Ready to start Investing?

I use Coinbase for Bitcoin purchases. Use these links for $10 at Coinbase.

Coinbase: https://www.coinbase.com/join/smith_2o5

Want to Join BitBlockBoom in August?

Head over to BitBlockBoom.com and use the code COUSINS for 30% off!

Here's the official Episode Breakdown:

Erin Gregor: All right welcome to another episode of clarifying crypto. I'm Erin Gregor here with my co-host, Gary Leland, Gary. Welcome.

Gary Leland: All right. Howdy. Howdy. Glad to be back. Glad to be here, talking more, lots of stuff happening.

Erin Gregor: We're recording this March, I guess 26 is what it is. We are in the middle of quarantine still.

The stimulus package has just been announced and approved.  Things went up a bit today, but I still don't trust anything. Bitcoin is up. We just hit 6,700 as we're recording this. So that's good to see. but Gary, tell me, tell me your thoughts through all this. Cause I know a lot of people are really excited to get their checks.

From pretend money,

Gary Leland: I'll take a check. I mean, you know, you could always my Bitcoin, you could always buy Bitcoin with it. I don't know if I'm going to get a check though, because you have to make  $150K. I don't think I'm ready to get a check up.

Erin Gregor: You could get a check. It just may not be as much. Okay.

Gary Leland: And I don't have any kids. My kids are gone. So I kind of weird on the, like for instance, I'm just going to go through some examples here.  My daughter's a nurse she's getting overtime right now. Is she going to get a check? I don't mind if she gets a check, but will she get a check? She's not losing any money.

Erin Gregor: She will get a check. Cause it's based on last year's earnings, as far as I'm concerned.

Gary Leland: And then my son in law. And daughter are in the he's in the Air Force and she's staying home. His pay hasn't been cut at all. So is he getting a check and is she getting a check? I mean, their pay hadn't been cut one bit.

Erin Gregor: I don't think this is about pay cut. I think this is about giving people cash to stimulate the economy. So it doesn't matter if you got a pay cut.

Gary Leland: I think it's

Recording in March 2020, we breakdown the fall of the stock market, the printing of lots of fed money, interest rates hovering at zero, and what this actually means for Bitcoin. Even though Bitcoin fell with the stocks, what will the rise of this cryptocurrency be? 

Gary and I break all this down because this, exactly, is why Bitcoin was developed. It's as if the stage was specifically designed for this type of currency. 

Interested in getting your feet wet in Crypto?

Download the Chrome Extension Lolli to get money back on some of your favorite purchases. Get $10 in Bitcoin when you use this link: https://lolli.com/ref/su72Kpnsem

Get the Fold App to receive Satoshi's (a type of Bitcoin) for gift card purchases from some frequently used brands (Starbucks, Amazon, Target, etc. Use this link to receive 20,000 Satoshis after your first purchase. https://use.foldapp.com/r/gTcqtrPk

Ready to start Investing?

I use Coinbase for Bitcoin purchases. Use these links for $10 at Coinbase.

Coinbase: https://www.coinbase.com/join/smith_2o5

Want to Join BitBlockBoom in August?

Head over to BitBlockBoom.com and use the code COUSINS for 30% off!

Here's the official Episode Breakdown:

Erin Gregor: All right welcome to another episode of clarifying crypto. I'm Erin Gregor here with my co-host, Gary Leland, Gary. Welcome.

Gary Leland: All right. Howdy. Howdy. Glad to be back. Glad to be here, talking more, lots of stuff happening.

Erin Gregor: We're recording this March, I guess 26 is what it is. We are in the middle of quarantine still.

The stimulus package has just been announced and approved.  Things went up a bit today, but I still don't trust anything. Bitcoin is up. We just hit 6,700 as we're recording this. So that's good to see. but Gary, tell me, tell me your thoughts through all this. Cause I know a lot of people are really excited to get their checks.

From pretend money,

Gary Leland: I'll take a check. I mean, you know, you could always my Bitcoin, you could always buy Bitcoin with it. I don't know if I'm going to get a check though, because you have to make  $150K. I don't think I'm ready to get a check up.

Erin Gregor: You could get a check. It just may not be as much. Okay.

Gary Leland: And I don't have any kids. My kids are gone. So I kind of weird on the, like for instance, I'm just going to go through some examples here.  My daughter's a nurse she's getting overtime right now. Is she going to get a check? I don't mind if she gets a check, but will she get a check? She's not losing any money.

Erin Gregor: She will get a check. Cause it's based on last year's earnings, as far as I'm concerned.

Gary Leland: And then my son in law. And daughter are in the he's in the Air Force and she's staying home. His pay hasn't been cut at all. So is he getting a check and is she getting a check? I mean, their pay hadn't been cut one bit.

Erin Gregor: I don't think this is about pay cut. I think this is about giving people cash to stimulate the economy. So it doesn't matter if you got a pay cut.

Gary Leland: I think it's about giving people cash to keep them happy. So they aren't bitching and going crazy when they see how much money that they are told out there everything helps. If they really wanted to keep everybody happy. I think when this ends up being like $6 trillion, I think I saw the math the other day, you can give every citizen a million dollars, for that kind of money. People don't realize, a trillion is like a hundred, 999,000 billion. I mean, it's not a little bit of money, right?

It's like a thousand billion or something. I mean, you know, it's not a little bit of money. So for $6 million, you could give everybody a million dollars. Just say you gave everybody a hundred thousand. You think that was stimulate the economy. If that's what we're going for. Oh my gosh. The economy would be on overdrive.

So I don't know. I don't know, understand the, just given people, small mass... that some people, you know, if you got two people in your household that work, minimal menial jobs, you know, if you're not educated, I'm not giving anyone a hard time. I'm just staying facts, you're not educated person. And you're working full time.

Maybe McDonald's, you know, as a cook, I don't know what the cooks make. That could be the wrong example. And you've got four kids. You actually could be bringing home more money than you make when you work. Cause you're making like $4,000 a month era case, but then someone else, you know, like we, my businesses are all shut down.

I'm not making any money. I'm not sure I'm going to get anything, you know, so, and then my son, he's not taking any cuts, so it's kind of a weird deal to me.

Erin Gregor: Well, what freaks me out about it is where the money's coming from. I mean, it's just pretend at this point. I know we talked a little bit about this last week.

This is the whole validation of Bitcoin, they're printing money. It's going to drive down the value of the U S dollar. As excited as people get about this. It's like, okay, where we're already in so much debt, where did we suddenly get $3 trillion from? Because..

Gary Leland: And then you have to ask this question. If you could just print money, anytime you want. And this is, there's like the extreme case we're talking about putting now, why are they even collect taxes? Why don't they just print money? Why are they even collect taxes at all? They just print the money when they need, they don't have to take it from the people.

Erin Gregor: Exactly. So I hate to be a sky is falling person.

it's a little bit. Yeah, it's frightening a bit. So it's going to be interesting to see how this all pans out, but for me, I know we talked about this last week. It just means. More money for me into Bitcoin, because it's the exact reason why it was created because the dollar..

Gary Leland: This is

exactly why

it was created was for this the last time it happened, when George Bush and Obama was saying, when it was created, it was created.

And it says if that situation on overdrive, They're going to print like I used, cause they're really not printing it. maybe just doing it in a computer, but they're going to create more wealth or more money or take away more wealth, I guess, with the relation, they're going to create more money right now, than they did on all the Obama stuff.

For sure. Probably half of our debt. So if we're $20 trillion in debt, it's going to go up. Our debt's going to go up 30% in a matter of months, not years.

It's frightening.

Erin Gregor: So I guess it's good things for Bitcoin. there's been predictions. I was reading actually today about, you know, some people think this will actually do well for Bitcoin because the price, people will possibly use the stimulus money to invest in Bitcoin could be something that's true.

But I want to talk more about Bitcoin, because you had mentioned before the call, and I said, I'm not even going to ask you these questions. Cause I have so many questions right now. Let's save them for the recording. You, and I don't know if this was in your podcast. I always like to pimp out Four Minute Crypto, it's your podcast.

You produce five days a week with format a four minute, blurb about Bitcoin. I don't know if this was in here or going to be in there, but you mentioned today the level of difficulty, correct me if I'm wrong. .. rose, you said for Bitcoin?

Gary Leland: No, it drops. It drops.

Okay. And you said difficulty, the mining difficulty factor, I think is.

Erin Gregor: Okay. And you said it, it has in the past, we're not going to predict anything. We are not financial advisors. Please do not take our financial advice. We were just two people who like Bitcoin, but you said the last couple of times that's happened. There's actually been a reduction in Bitcoin. So can you talk a lit or reduction in price?

Price of Bitcoin. Yes. Yeah. So can you talk about what that means and why it has a negative impact on the price of Bitcoin?

Gary Leland: Well, Bitcoin, you know, comes out with a new block of approximately every 10 minutes and, when hash rate is going up for mining and then every two weeks and adjust and it sits substandard, there more people with mining and they're all making a ton of  money because it's easy to do right now. So we're going to go through blocks faster. So we gotta make it harder. So will make it more difficult to mine. And so people are not getting as much Bitcoin, but they're still getting enough. So they're still coming on board. And then two weeks later he goes, ah, They're still hash rate is still real high.

They're still mining like crazy. We're going through these blocks too fast, then it'll adjust again. And then it will harden again, and people will start dropping out. Meyers will start dropping out, but the whole goal of the difficulty adjustment is to keep the locks at 10 minutes or as close to 10 minutes as possible.

Cause it, it happens every certain amount of blocks, the difficulty. changes but it's approximately every two weeks. And so that's, what's happening with that adjustment. That's what that adjustment.

Erin Gregor: So how does it have a negative impact? Cause if I'm listening to that, I think, okay. So that means Bitcoin, isn't, it isn't as easy to obtain, which means the value of my Bitcoin should go up because it's not as much.

So can you explain why that has a negative impact?

Gary Leland: Well, your Bitcoin is not going be going up necessarily into, an adjustment because the fact that it lowered okay. That it lowered for a reason. And the reason is, no one was getting any Bitcoins. Okay. It was hard to mine. Miners quite mining and miners now they're not getting any new Bitcoin or it's costing them more to get Bitcoin because so many people are competing with them and they're just like any company they've got to have tasks, they're going to pay all their bills in cash. So they're selling their Bitcoin. Okay. So that's, what's happening to the miners.

They can't sit on their Bitcoin and keep mining. That's their profit. So they've got to start selling Bitcoin to pay their bill, but they're not bringing any new Bitcoin in. So they're dumping the Bitcoin off the market there. Now, the reason I'm not exactly sure to be a hundred percent why it would go down after it got easier.

But I do know that the it's happened in, maybe February of this year. And then hadn't really a lot and happened maybe a year and a half or two years ago. And what happened the time before, it went down 50% in a matter of a few months, price of Bitcoin. It just happened. And this time in February, it went down and went down about 25 or 30%, you know?

So the reason it goes down after it's easier, I'm not sure as to whether it's because they're already selling it and it takes some water to get geared up or what the deal is, but it has the last two times. So that's why people are looking for a correlation there because a lot of people work off of history is what happened before.

And the last two times. Then it dropped instead of going up the price drop. So that's what they're going with. 

Erin Gregor: And it makes sense too, because it says still Bitcoin is via, is more Bioteau because. There aren't as many people who own Bitcoin. Right. And so it can be, if there is a bigger sell off, if somebody who's hanging onto a lot of Bitcoin and like a miner ends up selling it off, it can have a negative impact or will have a negative impact.

So that makes sense.

Gary Leland: And if someone had offered a lower price, so they're having to sell it more. Okay. So that's about it. So you're mining Bitcoin and you're going, you know, we can mine Bitcoin and we're making 50 Bitcoin a day. But say, it takes 30 Bitcoin a day to cover our expenses. So we're making a profit at 20 Bitcoins a day, and all of a sudden people aren't getting as much and they're selling off.  And now they can't sell it 30 Bitcoin a day and pay their expenses are still on 40 Bitcoin a day to make their expenses because it's dropped. So they're selling more Bitcoin, more Bitcoins in the market and blah, blah, blah, blah, blah, blah.

Erin Gregor: All right. So it could be an opportunity to pick up some more Bitcoin, I guess.

Gary Leland: The coins up today. I mean, it's looking good right now, so it's just really moving.

Right, right now, as I look at it, you know, 67, 56, you know, it's had a hard time passing that 7,900 mark. Every time it hits 7,900 wham, it drops, you know, right there. You just can't.. If it can pass that, I think we've probably go up a few more hundred. They just can't pass that barrier.

Erin Gregor: Yeah. No, I well, and again, I'm I see it going past there eventually.

I think right now we're kind of in a perfect storm of crap.

We do have 50 days until the halving. Right? Not exactly, but it's in the 50 day area till I have them. So the amount of Bitcoin miners get for their work is going to cut in half. So yeah, that's kind of a two edge sword, you know? some smaller miners may not be able to afford to mine.

Gary Leland: It's not going to shoot up overnight. I mean, it's not like it's ever gone. Okay. It's in half and it doubled the next day. Just one of those things. I think one time maybe it went up going towards that and then what happened, it dropped a little, and then later it went back up, you know, it's kind of like buy on the rumor, sell on the news.

Yeah, type thing. And so I think it will go up, but not right away. So it kind of can do harm to itself by the fact that some people go, I can't afford to mine cause I'm want to get half as much now, you know, as Bitcoin shoots up, so then they're not mining. And then the whole thing happens again. It gets difficulty rating adjumstent and get more back.

Yeah. And we have such a new thing. So it's exactly.

Erin Gregor: Yeah. Yeah. And we were talking about this before, too. Like I'd read about the mining being going down because of the having, because they're not going to get as much and it could have a negative impact on the price of Bitcoin too. But I know you and I've talked about too.

I mean, I don't, we're, we're ho ho holding it for a long time, hoddlers, as you call them, but it's too, it's not one of those things where, you know, I'm sitting here waiting for a $30,000 Bitcoin price in June, right? Like, I mean,

Gary Leland: I'm waiting for Christmas.

Erin Gregor: I was going to say next year is what I'm thinking.

I mean, I think we'll see something good happen next year.

Gary Leland: You know, I'm not a financial advisor either.  I know it's possible because you know, in 2017, you know, Bitcoin went from in August $3,600 and by Christmas it was $19,000. Wow. So it can move like that. I'm not saying it's gone. I'm just saying it's very possible to do.

Yeah. Once you see MSNBC and Fox news and everybody starts talking about it and it starts moving and people start getting FOMO scared. They're going to miss out. It really is a, it creates its own thing. But this time, you know, this will be our third halving. You know, for those who don't know, every 4 years, the amount of new Bitcoin brought into the market goes in half.

And so it started that you got 50 Bitcoins every 10 minutes, and then it dropped to 25 and now it's a 12 and a half, and it's getting ready to drop to six and a quarter. And when it drops to six and a quarter, the inflation rate, because they're only 6 and a quarter Bitcoin created every 10 minutes is actually lower for Bitcoin for the first time than it is on gold.

They don't have the like lowest inflation rate, especially compared to the U S dollar, but it will have the lowest inflation rate out there. So there's a lot of stuff going in, but it's a lot of stuff that there's not a long record out there is with the stock market. You know, so people are having used small amounts of data, to form, their opinions.

Erin Gregor: Yeah. Well, and even still, even with long amounts of data, it's not like, I mean, nobody can predict what's happening now. You can't look at it. So it's data is, Oh, they can do so much, from a prediction.

Gary Leland: This Coronavirus could be the best thing that ever happened for big point. It's like the, all the mass storm is all coming at one time, growing a virus.

The trillions of dollars, money being created, the halvening a lot of stuff happening at one time here for Bitcoin just couldn't be the perfect storm of everything happened. you know, banks are shuttingCdown. People have a hard time getting money out of banks. We talked about that last. Yeah, yeah, yeah, yeah.

And so I'm missing a lot of stuff going on. Right. And then you have. You know, you were talking about earlier, it was in the bill for the coronavirus money. I don't know what the bill is actually called. They had in there for, cryptocurrency for our federal, federal cryptocurrency in there.

Talk about that because I had sent that article to you, I guess it was.

A couple of days ago when it was proposed, it was in the proposed bill. It  did not make it, but one of the things that was writtenin there was a, a cryptocurrency that we could, that could create a digital wallet and they could send the money via crypto. And so I'll be honest with you. Having my limited amount of education in Bitcoin.

So learning about it, I kind of freaked out. I was like, Oh my God, is this the thing where the U S you know, we've talked about, like why we have to protect our money in case they're going to come and try to steal my Bitcoin. And I said to you, you know, I really want to talk about this. Is this a good thing for Bitcoin?

Erin Gregor: Is this a bad thing? Is this mean the U S is trying to get their hands on the wealth of, of the people who have Bitcoin. So I'd love your feedback on.

Gary Leland: I don't think there's anything that you would get in the money or Bitcoin people's Bitcoin. I don't think it has anything to do with that.

They just shut down all of the exchanges if they wanted to do that and take the Bitcoin. Cause there's probably more money sitting on exchanges that just idiots...