Good morning allegedly squad, this is your friendly former senior financial analyst tom, currently a full-time youtuber, and in today's video we got ta talk about cryptocurrency and specifically, bitcoin can bitcoin go down all the way to twenty thousand dollars, or in other words, how low can it Go now, bitcoin has been on the rampage same for other cryptocurrencies. We had about 35 of the entire valuation of bitcoin crushed in just a matter of a couple of weeks, two weeks to be exact. We had some people who lost fortunes now, the main bitcoin and cryptocurrency billionaires lost about 16 billion dollars in the past two weeks. That is insane.

We have sam bankman freed the i look alike of ben askin, who lost like from 17 billion all the way down to 11 billion, the winklevoss brothers i mean they're a meme. They lost 900 million each actually now below 3 billion. Each also who just now became a billionaire when ethereum crossed the 4 000 mark, just just down back down to 850 million, which is not that amazing, but still i'll. Take 850 no worries, it's still vitalik you'll know in any case, so you know i feel bad for vitalik i mean, but still what an amazing ride so incredible stuff going on.

We saw bitcoin going all the way down to 30 going back to 42. That was insane, so the question is, and that's what i want to do in this video is what the hell is going on, where this thing is headed and can't bitcoin go all the way down to 20 000. Where is the floor of this insane right? I guess that's the question we want to ask in today's video and, as you know, in every single video, i'm going to give you the nuance truth: i'm not going to be hyping bitcoin, i'm not going to be hating bitcoin, i'm just going to give you the Facts like an objective person should be able to do but again no clicking, no smashing no buying. I don't sell any software or any courses or nothing just give me your attention for the next five minutes.

That is the only thing i ask and, of course everything you're going to hear in this video is strictly my own opinion, which means, by being accurate, might be wrong, might be the ramblings of a madman most likely it will be. Who knows you got to do your own research in any case, and you got to find out for yourself what the hell is going on, allegedly blah blah mother effing blah? My name is tom nash and i quit my corporate job as a senior financial analyst to break down companies for you there's one thing you need to know about me: i don't take from anybody now. First of all, we have to talk about what happened this week with cryptocurrency, because this is nothing short of one of those wwe matches when you have two people with chairs and bars against the ref. What the hell went on.

We had this coordinated attack by the chinese government and the us government pretty much trying to kill cryptocurrency what the hell. So the chinese came out and said: hey, hey we're gon na ban banks from working with cryptocurrency. Then they followed it up with basically we're thinking about banning mining as well. That is a huge thing, because mining in china is the leading location in the universe.

Now, almost simultaneously, you have the us government pretty much coming out and saying: hey we're going to ask everybody to report their bitcoin transactions about ten thousand dollars, which is a huge issue now beyond that, and it seems very coordinated the us government they actually sent jp Jerome powell, the fed chair to go on tv and pretty much say: hey um, we're going to launch our own digital currency and it's going to be amazing. It's going to be the best thing since sliced pudding and for those of you who are wondering, yes, i did say slice pudding, i didn't say sliced bread. We got to do it by law here, that's the term that we have been actually allocated to. It is what it is now moving on and, of course, just to make it a perfect dish.

We had elon musk, take a dump on it as well on twitter and essentially that sent cryptocurrencies and bitcoin down the toilet, and i mean one of those nasty toilets with the paws now. What essentially happened is that entire accounts got decimated. People were so leveraged on cryptocurrency because of how easy it was to make money, they all got margin called lost their entire accounts. It was hell, the price fell at some point to 30 000 and now it's kind of trading sideways.

So what the hell is going on what's next for cryptocurrency, what next for bitcoin, can it go down to 20 000? Is it a con? Is it for real in this video? I'm gon na play both sides much like one of those guys in the movies. You know i'm gon na be the double agent i'm gon na, be claiming why i think it's a scam and i'm gon na be claiming why i think it's not, and i'm gon na give you my conclusion at the end now. The one thing i absolutely hate is people who pretend to be cryptocurrency, expert or evangelist where in fact they can separate a blockchain from a freaking bicycle chain. I don't want to be that guy, i honestly have to admit i'm not an expert on cryptocurrency.

This is my layman opinion. I'm not going to be sitting here, pretending like i'm sort of a crypto, rnc rnc, what the hell is: crypto rsc a cryptocurrency expert, because i'm not i'm just a dude with some financial understanding who's going to give his opinion. Now. First of all, let's talk about the bulkies.

The four main arguments why i think bitcoin is gon na be revolutionary, disruptive and essential to the future of our financial system and i'm gon na. Let you in a little secret, because i don't hold you hostage in my videos. The conclusion will be that bitcoin is not a scam. I'm not going to be sitting here claiming that i think it's a positive schemas camp, but i will present the other side.

So if you want to hear that stick around so first of all, bitcoin is breaking through the mainstream. It's actually now being adopted by a lot of companies, who's adding bitcoin to their balance sheets. Now, tesla haven't sold nothing since elon's storm on twitter. Probably won't you want to have exposure to the entire cryptocurrency market as a massive company if you're sitting a lot of cash, this trend might slow down right now, with the way the prices are kind of being sideways.

However, the trend is still your friend, hey, i'm just kidding. The thing is that more and more companies are adding cryptocurrency to their balance sheets. Even after elon took a dump on twitter, they still hold 90 of the bitcoin they purchase. You want to have exposure.

The cryptocurrency market, as a massive company, with a lot of cash when you're sitting on a pile of cash you're sitting on a time bomb, it's so inflationary and every minute goes by the value of that pile of money is decreasing. So you want to put it in something that makes sense for protection against inflation and, unlike most people who can actually buy land or other assets to park their money during an inflationary period. Companies are not that easy as far as buying and selling real estate. Plus, it's not as liquid as actually owning a piece of coin that you can sell in seconds now, there's actually a lot of disadvantages, it's volatile and all we're going to talk about in a second.

Obviously, it's not a perfect hedging mechanism against inflation, but for a lot of companies, it's a really nice place to park your money and then now a lot of people say well, it just lost 35 of its value in two weeks. What kind of thing it is to hold a new balance sheet? Yes, that's true, but you got ta remember with bitcoin. It might gain it back tomorrow. Nobody really knows it's so volatile, that's part of the fun and it's the same reason.

That argument number two exists which is institutionals, are getting into it as much as they can. You have institutionals heavy heavy banks, central banks, you have a lot of massive players, have institutions actually getting into bitcoin and cryptocurrency to get some of the crypto money. They want to get that exposure. For the same reason.

They don't want to be left out of the party, because you have to remember that institutionals large banks, governments they have a much larger horizon they're, not looking at it as a one or two year when they're buying it's for five to ten years. They have a whole different horizon and if you widen out, if you zoom out, there is no doubt i mean you have to look at bitcoin and the way it behaves that zoom out is exactly all you need, most of us as rita investors as individuals. We usually need cash to eat, to pay rent to buy right. Banks don't operate in the same manner and for them to put that asset on their balance sheet is really important for the next 5-10 years and, of course, there's the global markets argument.

It's never been easier and faster to send money reliably to anywhere in the universe. Banks can't do it as fast can't do it as efficient and can't do it as reliably. You literally have to wait days until you can access your money, so you can use western union insane right, it still exists or you can use paypal with its ups and down sides. I mean there's a lot of different tools that simulate that speed, but the only place you get immediate execution immediately is still bitcoin and like the us dollar, which gets printed like it's 1999 everybody party in the usa, that's crazy, like what's going on with the dollar.

There's a finite amount of these coins and that's why i think, by definition, once it's gone, being volatile and crazy, it's gon na be a great inflationary hedge. However, there are certain issues we absolutely have to talk as far as bitcoin and inflationary hedges. It's not a perfect tool. There are other options i think would be better and that's part of the problems with bitcoin today.

Now here's the thing now. This actually ties me in perfectly two reasons why i think bitcoin is going down to 20 000, even though it's not a scam, even though it's not a positive scheme, i think it's going down to 20 000, because there's a lot of things that need to be Fixed before it can go and explode out of the stratosphere, which i think it will allow me to explain now. The first issue we have to talk about is criminal activity. Whatever you want to say, criminal activity and bitcoin are still related.

There's a lot of criminals who use bitcoin before you go and hate me in the comment section and dislike the video hear me out, because i still subscribe to the notion that bitcoin is not at fault here: criminals use cars and shoes, it doesn't make shoes evil And you know what i mean it doesn't make bitcoin evil. It was not created for criminals, but the way it's structured and its many benefits appeal to these criminals, which sucks. However, here's the thing while it used to be easier to you know, launder money. Do whatever 10 years ago now, with all the kyc know, your client aml anti-money laundering, the international information exchange agreements between countries, it's literally become almost impossible to move around cash anywhere without getting caught.

That's why bitcoin has become so much more appealing because 10 years ago, you still could have done it with cash. Now, it's very very hard now. What do i think about this argument? As far as will it ever stop bitcoin from becoming mainstream like really mainstream? No because criminals will find other ways to do their criminal. It's just the way it is.

You can't hold bitcoin against it. I think it's much more of an enforcement issue for the authorities and the regulators than bitcoin in itself as a currency, the authorities and the regulators have to find a way to regulate this thing without compromising the decentralization and the privacy of this currency. I know that sounds self-contradictory, but they got ta figure it out. Otherwise, you're going to be basically saying well, the operation has succeeded.

We have saved the patient's leg, but the patient is dead. I mean you got to find a way to save the leg without killing the patient. I'm not saying it's bitcoin's problem, i'm just saying it needs to be addressed. If anything, the last week proves to you how bitcoin can be so volatile, it's just insane.

We just spoke about it now. If you want to rely on bitcoin as some sort of an exchange, currency or inflation edge, it can't be that volatile. It can be going up 30 40 a day and then up and down like a crazy russian. I mean you can't you're, probably gon na tell yourself well, i might as well just buy a piece of land.

I don't need to haul this cryptocurrency nonsense. It's gon na go crazy. I don't know what it's gon na do. I might as well buy a piece of land and hold on to it during inflationary periods and yes for certain individuals.

That's a good solution, but still there's a lot of problems with that route. Companies can really do it and even as an individual there's a lot of transactional costs to buying land. It takes a lot of time, it's not as liquid, so you might as well try to figure out a way to make bitcoin less volatile. So you can rely on that instead of buying a piece of house whenever you have inflation, it's more efficient to have a coin that gives you that, instead of buying houses like a crazy man now the third issue that faces bitcoin is the governments.

The governments don't like losing control, whether it's the chinese government, the russian government or even the us government governments love being in control. That's how governments work, that's their modus operandi. If you may now here's the thing, the us government is not as crazy as the chinese government they're willing to basically fix the operation but kill the patient. The u.s will take a small hit and bitcoin just to subordinate it to their own regulation.

They might say well we're willing to live with bitcoin, not potentially going crazy, going berserk just bitcoin being at like 25, so we can still collect the taxable income from all these transactions as long as we can control it. So it's kind of this hybrid. Now, as long as the u.n government does not ease from that concept and does not say well we're going to release bitcoin into the wild and just let it play out they're going to hold the price back because nobody wants to be in this assets when they're. So regulated by the irs by the fed, it's going to be insane until they release and basically say well.

We'd rather have a hundred percent of the taxable income, and i think it's going to happen eventually, because i think governments also like cash and the u.s government will need a lot of money to pay for all the they're spending right now. So i think eventually they're going to say well, we might want to loosen up the boat a little bit and let bitcoin go crazy because then we're going to collect so much money from tax. Maybe it's worth giving up control a little bit, but right now the trend is definitely going. The other way more regulation, more of this genital nonsense and it has to stop in order for bitcoin to actually launch now.

The main issue is the fourth issue is lack of transactional support. I can't go out right now and get a pizza or coke, not that kind of coke. The coca-cola i mean come on. I can't get it with bitcoin.

It's freaking complicated, there's, no transactional support. Until that happens, it can't be currency, but it's kind of a circular argument. You can't have transactional support if it goes. Berserk, no a auto shop or a candy store will accept bitcoin.

If essentially, what you're paying can go up. 30. 40 a day i mean it's just crazy, so the volatility has to go down before that gets sold. So once the volatility comes down, the transactional acceptability will also come down, but it has to happen simultaneously until that happens, we're not there.

Yet that's why. I think it will push the price down even further. You know, and you know what i absolutely can't stand - the bitcoin haters who say well. Gold has actual value you can make with gold and paintings you can enjoy.

I mean come on gold and paintings. Nowadays is nothing but a store of value exactly like bitcoin, they don't do jack. They list squad so get off your high horse and accept the fact that every society needs a storage value, a reliable one. The problem with this one - it is just too volatile right now to put in the box and say: well i have that just for a rainy day.

It has to happen for this to get accepted and that's why i think in the short term, it's going to go down to 20 000. However, once we fix the problems i listed, it's going to go ballistic, it's going to go out of the stratosphere. The rubber brand effect is going to be insane. It can go up to 100 120 000, but these issues need to be fixed first and, as always, i hope you enjoyed the video.

Thank you so much for the channel members for the patrons. For all your support. It is much appreciated. We'll see you guys in the next video.