“If You’re Buying Bitcoin Based On This, You Don’t Get It” | Max Keiser

“If You’re Buying Bitcoin Based On This, You Don’t Get It” | Max Keiser

‘Well, this is, I think, one of the bigger drawdowns we’ve had. I think I have three 80%-85% drawdowns. You know, we had from $30 back to a dollar, $1,200 back to $200, $20,000 down to $38,000, now $70,000 down to $30,000.’ – Max Kaiser said.

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In an interview with Blockware Intelligence bitcoin maximalist Max Kaiser, discusses the current state of bitcoin as bitcoin trades at around $31,700. It’s a slight rebound from $27k a few days ago. Although bitcoin saw this rebound, some pundits are calling for bitcoin to slide down to the $10k to $15k range, which would be about an 85% drop from the previous all-time high set in November of 2021. 

To Kaiser, an 85% correction is a non-issue as this would just be part of the normal cycle for bitcoin:

‘At this particular juncture, on this particular one, I don’t really think about it at all, which is different than the early ones. The early ones because, as Stacy points out, the main developing crew, the core developers of bitcoin themselves, were in revolt and they were talking about hard forking and the big blockers, which wasn’t resolved until 2017, but those types of issues were already being discussed and those would be existential threats to the success of bitcoin. So the downside was more palpable. The risk-reward on bitcoin right now is one of the most favorable ever. You know, in terms of you don’t really have that level of core contention that would be a risk vector. You just don’t have it, so um, at the moment it’s become almost a mature asset class, if you can believe it, but I mean, it’s getting closer to being certainly an established asset class. You have an established group of people owning it. I would say you know this question comes up. The answer is that if you’re buying bitcoin based on price, then you’re not really, you know, you’re missing the big picture. So when you buy bitcoin, it’s because you love bitcoin.

I’ll give you like this little scenario. Let’s say you go to a flea market and you see a van Gogh is on sale at the flea market and it’s priced at five dollars. So and you know with certainty that it’s a 100 million dollar Van Gogh, so now there are three options. Here you can go to the owner of the flea market and complain and say: ‘This is outrageous that van Gogh’s worth 100 million and you’re selling it for five. You can complain.’ Number 2: you can be certain it’s a van Gogh but  you don’t even want to put up five  dollars to own it. You’re just not even going to risk five  dollars, you’re just not going to do it. Number 3 is  you’re going to buy that van Gogh for five  dollars and you’ll be very happy you did  so let’s play this out.

The first scenario you’ve got right now, bitcoins are worth $30,000. It’s worth, you know, 10 to 20 million dollars a coin at some point. So you’ve got a lot of people that would complain about this, like the Christine Lagardes of the world or the Nouriel Roubini. They go to the regulators or whomever in the press, and they say they complain like “Look at this asset.” I’m going to complain about it. It’s worth millions, but you know it’s selling for $30,000 and they just complain and they talk about it.

Then the second group you have, “Oh, it’s at $30,000.” It’s worth millions, but they just don’t… They’re not going to bother buying it at $30,000. Now there is Peter Schiff of the world, who I told to buy bitcoin when it was a dollar, five dollars, ten dollars, and fifty dollars. But even though the case was clear that it’s a new asset class and it could be worth millions, he didn’t even want to put up five dollars, so that’s the Peter Schiff crowd.

Then there’s the third group, which is where we were, where it’s like: you know what, this is a new asset class, it’s going to be worth millions, and I’ll put it, you know, buy it at five dollars because, you know, um, I’m happy with that at the risk reward there.

That’s still true today. At $30, 000, it’s still dirt cheap compared to where it’s going. But you still have people who are going to complain about it, like Liz Warren or somebody that, oh my God, I just can’t believe that this thing is out there, or you have people that are just not going to spend the time to understand it.

Peter Schiff still doesn’t own it and then you have the folks that have put in a few hours of work and said, “Hey, you know, this is worth millions of dollars. I’m going to buy it at $30,000. I’ll buy it at $20,000. I’ll buy it at $60,000. I’ll buy it at $100,000.’ It doesn’t make any difference. I understand the value proposition. I understand how it exists in the ecosystem of the world of fiat money and I’m going to own it. So those are the three groups and it’s cheaper at thirty thousand. It’s cheap at a hundred thousand.

 [This article is a transcription of a video made by Only The SAVVY]

Original video: https://youtu.be/vfJCTkKjj-Y ]