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Rainbow Chart shows just how high Bitcoin could go | Bitcoin For Idiots - YouTube
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we're gonna pull up a chart here and
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this is something that you put me on to
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a while ago this is the uh the bitcoin
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rainbow chart which i'm sure you know
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is kind of like a newbie thing i'm sure
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that like you know some people who
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really look at charts um are gonna think
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that this is like an oversimplification
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but
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that's what i'm talking about here like
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um
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keeping it simple
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this is a log chart so if you'll notice
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um on the left that it's not consistent
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it's it it basically is a way to show
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show exponential growth on all on one
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chart because let me see if i can pull
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up the the i'll pull up that's the oil
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chart but this is bitcoin right so
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switching over to bitcoin here um and
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let me switch on
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here so we're going to just jump over to
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like the regular bitcoin chart for a
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second
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share
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um
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there's got to be a quicker way to do
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this but we're going to figure it out
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right um so you know if you zoom far
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enough out
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it just looks weird and you don't
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realize that down here
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there were there were
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millions and millions of dollars made
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down here
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so when you click on log
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it it basically let me take off uh if
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you click on log it's going to give you
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this um
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a similar line here so uh when we look
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over back i'm gonna have to switch back
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now
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um switching back and forth yeah this is
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not the uh the easiest or well produced
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uh video right now but we're gonna get
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the hang of it that's why we're doing
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these shows but all right so we're gonna
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switch back to the
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rainbow
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so you see here it's like 50 to 100
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is the same distance
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um between 500 and uh and a thousand and
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then it doubles and it doubles and it
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doubles so you know right here you're
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seeing like not that much move in terms
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of dollars and up here you're seeing 50
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000 you're seeing 400 000 jumps
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so the rainbow is just showing you
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how
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basically like bitcoin is right on
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pace and
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you know when we were up here when we
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were up here this was the dip this is
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when it you know it went last year or
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yeah last year it went from 60 down to
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30 and we were all panicking but then it
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went back
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up
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um
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to 68 69
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and i was looking down here and i was
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like it's never gonna hit this blue
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again
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and here we are
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right back down in what what what uh the
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chart calls a fire sale um but you know
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this is where the money is made and then
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you see this long
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accumulation period um so that would be
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that'd be interesting if we kind of go
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into that here
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but if i clear this off um you can see
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that this is still increasing so like if
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you're still in the blue
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um by like the beginning of next year
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you're you're at like you know 25 000
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not 20 000 like we're at right now and
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if you're buying the twenty twenty
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thousand that's twenty five percent
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returns that's not right that's not that
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right so if you're buying now and it
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stays in the blue which is still
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like supposedly scary
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it's it's still showing an increase i
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wish i could like zoom in a little bit
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uh here to see it let's see what that
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real bottom is but i thought for sure uh
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once after that first step when we when
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it started turning back upwards i
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thought we were for sure it was headed
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towards max bubble territory you start
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looking to see like what it would be at
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like around those dates that's what
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exactly that's right around those
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products yeah prices
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come up here because it got into that
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you know in the in in the 2017
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um and then yeah if you if you look uh
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if you look at it here if we continued
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up even just into the the orange again
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because it was already in the orange
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earlier in that year it would be like
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the 100k um and then you know this is
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sort of designed see this is what's
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scary though because over here you do
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see that it did sort of exceed the
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rainbow so you think maybe it could it
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could do that on the downside too which
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i don't know at this point
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i don't even know if it would be that
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bad if we go to 10 it's like nobody
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thought it was going to go to 20. so
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what one yeah
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one pattern i would point to that i
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would always point out on when i used to
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do live streams on my tic toc page
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there's your first halving and then it
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goes to max bubble territory and then it
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goes back to down to fire sale
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then we start the pattern again having
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max bubble territory
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fire sale
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so we've had our having but
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interestingly enough we didn't go to max
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bubble territory and now we're back at
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fire sale so i'm i'm thinking will we
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see max like maxwell territory by the
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next having in 2024 because
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there has been after each having at some
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point where it gets to max bubble
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territory right right right so like
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yeah but
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that's interesting to think and and but
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the the whole thing is i i honestly
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think that that covid and
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um
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uh
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you know just printing a jillion dollars
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kind of threw a wrinkle into this i know
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that you know 2008 um i guess it was
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born out of 2008 so we don't really have
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like
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true
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um financial
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like shake-ups like this like you know
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this is the first time bitcoin's kind of
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like going through the other side of
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that but you're right it could be
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interesting to think of it as like if
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this is still part of a cycle
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that's going to go here and then i don't
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know what just like crash like oblivion
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before the having because you're trying
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to think of like which patterns is it
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going to follow and which patterns are
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being broken yeah so you know you're
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trying to figure out which patterns
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you're going to stick to and and apply
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um
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and then you know which patterns are
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breaking because you know like you could
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say yeah we didn't we didn't we had to
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having and we didn't go
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to max bubble but we we have now
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returned to fire sale i could i could
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see your theory sort of holding up if we
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if we held up somewhere in here
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um and then turn back up but now the
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fact that we've got gone so low it makes
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me think that's the end of the cycle and
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that it's probably gonna like ping pong
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in around here probably you know give us
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one last scare and and then you know do
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its normal having and then i don't know
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maybe it'll only maybe it'll only reach
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this area again but but
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on the positive if after the next having
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i mean this is where uh you know we were
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talking before the show and we were
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saying
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you can't use charts you can't predict
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anything well it's like we've got
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10 years worth of data here right so
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like to think that it's wildly gonna
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deviate
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in either direction
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from this chart
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like
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i think that's the crazier idea now to
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say it's going to adhere to this exactly
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but if it does
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even if it only gets to like the yellow
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so say say this is what's happening say
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we are are getting sort of these
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diminishing returns where where we one
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time we went all the way through the top
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of the the rainbow now we only reached
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the top and now we only reach the middle
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okay so if if you just play it out
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and uh
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and we only reach here but we do it
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after this having which is you know 2024
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i know that's a ways out nobody everyone
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wants to get rich now and not uh you
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know three years from now but it's 187.
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uh the orange is 269.
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it's 20 000 right now if you're telling
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me that uh before 2025 it could hit 269
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now i don't know everybody thought it
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was going to hit 100 000
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this year it didn't some people thought
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it was going to hit much more some
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people thought it you know it was going
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to go to max bubble i mean if it went to
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max bubble uh
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in here
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170 180 190 200 000 it didn't
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but if we get to the middle of the
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rainbow
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sometimes even towards the lower half
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yeah
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100k
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almost triple
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from where we are right now so you want
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to make triple your money before 2025
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i don't know you know i mean again not
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financial advice and we're not saying
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that it absolutely has to happen but
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when you look at the chart and you look
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at data and you say you know it's
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obviously still taking a risk but it
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looks like it would still be a good bet
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right historically when it gets to these
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levels
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you don't have it it can go below it but
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you don't have much more downside like
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it really doesn't deviate too
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much just even even when it went above
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back in 2014 if you look at the the
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y-axis it's that it wasn't that crazy of
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a thing it was like 500 versus the
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x-axis or the y-axis sorry that we're
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looking at now where it's like in the uh
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20 to 30 000 range
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right now and and you know what's funny
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is and we talked about this before where
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where it was like this is supposed to be
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um the hedge against all this
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um
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but
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and it doesn't you know like everybody
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says it's a hedge against inflation to
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me
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i think
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it's always been a hedge against
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the
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inflation of fiat currency meaning
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the printing
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like you can't print more bitcoin so
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that's why it's the hedge but when it's
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not
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the default currency of the world when
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not that many people are transacting in
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it it's going to be affected
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by inflation as we're seeing so
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everybody was like oh well this is what
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you promised it's like yeah well it's
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not it's not there yet it can't it can't
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it can't fix the dollar it's it's meant
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to replace the dollar
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again i don't know if that'll ever
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happen but
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it it seems like more and more people
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are going to
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uh hedge
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toward it and that's how it goes up
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because there's more and more demand for
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it you know when more and more people
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want part of that 21 million bitcoin
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that will that is all we'll ever see
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um you know it just it just means that
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the price kind of has to go up so if
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somehow
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your uncle is right
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and and
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uh
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bitcoin is really garbage it's just like
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what really needs to happen is all the
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people who are convinced that it's worth
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something right now need to be
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unconvinced and then no more people
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can be onboarded and that's like you
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know that's what my bet is that like
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more people will be interested in this
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because of what's happening right now
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you know i'm not saying they'll solve it
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i'm saying more people will be
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interested in it because it's like this
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it's a technology it's just like more
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people became interested in the internet
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um you know and and all the people who
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said nah we're gonna do things like
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paper and pencil
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whatever you know it's just that's that
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seems to be the trend in that direction
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now is something where to go
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um cataclysmic like
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i don't know like satoshi shows up and
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he has control over the whole network
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like we didn't know he wrote something
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in if there could be some sort of bug if
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it could somehow get hacked then yeah
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that that is like a catastrophic event
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that i you know think
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would be very bad for it so that that's
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always an option but that's fud i hate i
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hate the term fudd too but
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yeah i i would say that bitcoin is like
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in it's trade it's trying to transition
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into a currency it's not there yet it's
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more of a commodity right now and and
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like all other commodities it will be
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affected by macroeconomic factors such
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as inflation such as a recession so that
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that is what you would say to the people
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who said oh it's supposed to be a hedge
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