Placeholder Image

Subtitles section Play video

  • Yeah, it's a fascinating observation and you can see it in the volatility.

  • You can see it.

  • And the people involved in this market, like you said, they were getting access to risk that used to be held for accredited investors, but why was it held for accredited investors?

  • And that's one thing I see that what you're doing well, you're so passionate about the financial education and I think you once said Bitcoin is the best chance for the median person to radically expand their economic horizons.

  • And it's an interesting concept just by trading crypto, you learn more about money or you get more comfortable about money than probably you ever have in your life.

  • And we're taught from kids that you're not smart enough to manage your money.

  • That's what the fund managers do.

  • That's what these people do.

  • And this is a way to have a real relationship with your money.

  • In a way where a conspiracy theorist would say, okay, the governments of the banks don't want you to, but regardless of the motivations, it's been something that's been missing in the past.

  • But crypto changes all that, right?

  • It really does.

  • And also think about it.

  • I try and think of the world in different people's eyes And let's say you're the typical millennial kid who's now 32 years old and the average age, so you're just starting to come into peak earnings, You've got no savings, you still got your student debt is trying to get rid of and then you look at real estate.

  • So look at traditional investment.

  • So what our investments, investments are basically future consumption.

  • You buy something now you hope to sell at a higher price to give you consumption in the future when you retire or whatever it is.

  • Right that's when the asset is to us in the investment world.

  • So what assets do they have?

  • They have the equity market all time, record high evaluations, they have the bond market all time, record high evaluations, they have the real estate market all time record high valuations.

  • So traditional assets to them, they're buying very expensively Now if you look at the size of those markets, equities bonds and real estate on a global basis like glow real estates about $100 trillion $200 trillion dollar market.

  • And then he got Krypto the faster adoption technology in all recorded history which is the internet of money where all of these things are gonna be tokenized and will be part of this will be Bitcoin because just one of the expressions of this so that space is currently about $1.5 trillion today.

  • So for it to meet somewhere around the equity bond market size That's 100 x.

  • From here.

  • If it actually absorbs all of those markets, That's a 500 x.

  • So 100 x.

  • You me nobody in history anybody has ever been given a whole asset class, entire asset class.

  • They can go up 100 x.

  • to a hut to $200 trillion.

  • So and it fractional sizes so it doesn't matter whether you earn £20,000 a year or you want £200,000 a year, you can both put 10% of your income in it because it's fractional.

  • So now you're on the same playing field.

  • Okay, that gets interesting.

  • So we can all have the same percentage of public one, but then it's going to get more interesting because like if you've got a um apartment in number one Hyde park, that thing costs £200 million pounds and of all of our reach.

  • But the guy who owns it probably bought it for 100 million about 100% about 100 million, but we can't, and you know the average apartment, you know in the outskirts of London hasn't gone up as much.

  • So how do we make the money?

  • Well we're going to tokenize real estate too because then maybe out of one of those fancy buildings, one of those apartments gets tokenized, So you can put in 10% of your net worth into it and I can put in 5% of my net worth and somebody else can put in 50% of their net worth.

  • And because it's fractional and it's tokenized, we all get to participate without it just being the rich get richer fascinating.

  • So there's a lot coming.

  • And so those millennials are looking even if they don't have a financial background, they're looking at like you said, these other asset classes and they all seem at their peak and then they see something that potentially could grow 100 X 2 500 X.

  • And they have access to it.

  • It's native on social media, there is crowd sourcing of information.

  • The quality of information that's out there.

  • Yes, a lot of noise, but the quality of information that people are trying to help in this space on twitter on reddit and all of these forums is extraordinary even on Tiktok.

  • So people are trying to help you because of network effects means if you bring more people into network, it goes up in value and also people passionately believe in the point of this thing.

  • So it is engaging young people because also All of those millennials grew up in 9 11, 2008 and now the pandemic, they have no trust in institutions.

  • They trust institutions implicitly in some ways, but finance is the big one that they don't because their parents lost their houses and jobs.

  • Um and so when you're seeing an opportunity that is social media in nature, there is native to the internet that they understand and live in that offers them huge potential reward and they can stick it to the man well, kind of gets interesting, right?

  • And then that's probably why you see this exponential option on the back of it and the way you were kind of opened this broadcast out with that incredible explanation where yeah, you had facebook and you had this whole information people layer here, but you never had the value layer and you never had a valuable air that was peer to peer and controlled by that peer group which then leads to the adoption and the growth.

  • And it's an incredible way of visualizing what's happening here.

  • And I worry I'm in a bubble here, Raul that I keep talking to people like you and Michael Saylor and you know, Ceos of Eva and Charles, Hoskin Seuin and everyone's telling me this.

  • But when you say it it just seems so clear.

  • Well I go and have to head check myself right, because we're all in the space we get each other fired up.

  • But I just use the adoption curve right?

  • If if networks are valued in a certain way, then let's just go back to first principles.

  • Okay, how is this network growing?

  • What is going to derail?

  • That is bad news about tether going to derail that highly unlikely is regulation going to slow it down?

  • Well, I think regulation speeds up adoption because then that West won't be saying, oh don't use finance.

  • They're like, okay, fine.

  • You do what you want.

  • Here's the rules.

  • So it's very difficult to find a world where adoption goes down.

  • Um, and at this pace of adoption it feels very difficult indeed.

  • So I just tried to first principles kicked out of all of this because everything sounds amazing and we don't know what's going to go to zero and what's gonna go exponential.

  • But generally it's that network adoption model.

  • That's that's the truth.

  • Yeah, that's such a great point and a great way to ground yourself.

  • Whenever you feel like you're in the echo chamber, go back to the first principles and just look at the order, look at that growth and say, okay, I can't argue against this at all.

  • Another one, the other easy one for people who don't really know how to do that is this free charting platforms like trading view.

  • You can just chart a log chart all exponential assets basically look like a beautiful trend channel in a log chart.

  • So facebook looks like this google looks like this Apple looks like this.

  • Well actually when you created the log chart, that is lovely linear trend, log trend, a big one is the same.

  • And if that changes, you know that log trend from from 2010 till current day.

  • If that changes, then you can reassess if not the ups and downs the noise, all of the screaming and shouting on social media.

  • Forget about it.

Yeah, it's a fascinating observation and you can see it in the volatility.

Subtitles and vocabulary

Operation of videos Adjust the video here to display the subtitles

B1 adoption log chart real estate record high estate

500x GROWTH IN CRYPTO? ? Raoul Pal on the Potential Value of Crypto

  • 3 0
    林宜悉 posted on 2021/11/16
Video vocabulary