Are Bitcoin Investors Doomed?

[00:00:00]Welcome back. So, in this video, I want to talk about a couple things. The first thing relates to Michael Sailor and strategy and stretch. Today, I got sent a video, old clip, an old interview of Sailor talking about how he came up with the concept of stretch and it's causing a lot of controversy. I remember when it came out. It's not a new thing, but now people, you know, they're digging and digging and there's a lot of hate on Sailor right now, a lot of pressure. So, I want to talk about address it. There's a lot of FUD out there. That's number one. Number two, I do have an update for you guys on the war situation, which is overall good. Uh things are progressing.

[00:00:40]So, let's talk about that. And three, of course, let's talk about what's going on with Bitcoin. Why did it fall down? Why did alts go down today for no apparent reason and decouple completely away from Tekken and AI who both rallied hard today? So, let me try to explain that as well. All right, let's get started.

[00:00:58]Well, first things first, let's talk about strategy and Michael Sailor and Stretch and what this viral clip is about. Right now, I know you guys, if you've been doing any kind of digging or searching uh on X or just anywhere crypto news, you'll see there's a lot of FUD about Sailor and Strategy. uh strategy is down 44% in the last 38 days, wiping out 30 billion from its market cap. Okay. Uh a lot of people don't really care about the loss for Micro Strategy other than Yeah, if you're a shareholder, it's been rough.

[00:01:36]It's been really rough. The most important thing is the 846,842 Bitcoin, right? Worth 53 billion.

[00:01:44]Unfortunately, he is underwater right now about $11 billion, but overall he's holding a good amount of Bitcoin right now. What kind of start all the FUD obviously was the selling of the 32 Bitcoin, which people are still not over, but there's more FUD not only around the stock, but also around his preferred share strategy, Stretch. Okay, Stretch is supposed to stay at $100. It is now at 85. Now, why $100? There's no magical reason. He just said it that way. Okay. The reason why he said it that way or how he has said it is he's paying 11.5 annual dividend, which is why so many investors flock to it because that is a crazy dividend, right?

[00:02:34]He recently decided to pay double dividend like twice a month rather than once a month. But whenever the $100 goes down, right, it shows that that dividend is not go enough. If this goes up, then he can sell more shares. That that's how he was able to raise. Okay, according at least according to my understanding, that's how it is. The $100 basically is like um it's like a price that he would love stretch to stay at. And if it goes below, it means that uh there's not enough appetite. People are selling it. They don't like the dividend or it's not enough. So he has to basically at this point increase the dividend in order to attract more people to buy stretch so that it goes above and hopefully when it goes above $100, he's able to issue more shares and then use that to buy more Bitcoin. Okay, that's how it works, right? To bring it back to its peg. All right, but there's really no magical reason why 100. It was just set up that way. The problem is in order for him to do all this, okay?

[00:03:47]In order to get people to buy 85 and get it back to 100, you basically have to give out more dividend. The problem is he doesn't have that much money. On paper, he did say that he had enough, you know, to last a while. And of course, if he had to resort to selling Bitcoin, that could last 32 years.

[00:04:11]Okay, but the thing is, we already saw what happened when he tried to sell 32 Bitcoin. If he starts selling every single week or a massive amounts, you know, his shares are going to tank. No one's going to buy Stretch anymore. And it doesn't matter if he ups that to 15% or 20% or 30%. If he sells and loses the confidence of Wall Street and everyone else, it's going to be absolutely disastrous. So, he's like kind of stuck between rock and hard place. And now with Stretch, there's a lot of people that are questioning it because they just don't understand how this works.

[00:04:47]They never understood. People kind of just went along with it since it was working, right? I even saw an interview from Jack Mullers that was trying to break it down and he's like, "I just not that I hate it. I just don't understand it." And and he's a smart guy. He was trying to break it down and people are, you know, questioning the MNAV, right?

[00:05:06]And how that's calculated with cash on hand and Bitcoin and how if he has to sell Bitcoin, does that improve MNAV or or how does that work, right? There's a lot of stuff, but one thing that relates to this is this this clip.

[00:05:22]I saw this before. This is not a new thing, but several people sent this to me. So, let me play it for you guys.

[00:05:29]Okay, when we did stretch, you know, I designed all these with AI. You know, I couldn't have done it myself. I I literally said and I used artificial intelligence and I and I went back and forth with the AI for a few hours. So you were just on pack PPT just like the rest of us figuring out how to design these different offerings >> and arguing with it and saying can I do this, can I do that? And at some point I said well I want a monthly preferred and I want it to be stable at 100. It says well you can do this and this and this.

[00:05:58]I said has anybody ever done this and it said and it scans for 10 minutes says no one in the history of the world has ever done this but it's totally legal and it's totally reasonable to do it. when we did stretch you know I designed all these with a >> there you go okay so he used chad to come up with this that's basically what it is now do I have a problem with this not really I use chip all the time it's very smart very intelligent chipd will always tell you I'm not giving financial advice go seek a lawyer and do all that it you know there's disclaimers right but I remember when he said this it wasn't a big deal but now this is under a lot of scrutiny because people are like really really you use chat to come up with this stretch thing this and people are calling it a Ponzi and uh it's causing a whole lot of FUD a whole lot of FUD right so I just want to share that with you guys do I personally have a problem with him using Chap DVD for ideas I don't you know hopefully he thought it through he he talked with his CEO his board and everyone before doing it And if they all said yes, you know, let's try it, okay, then then then that's one thing. But if he simply had this conversation with Chad GBT and just did it himself without asking, then maybe there's a problem with that. But yeah, that that's the FUD and people are are commenting and basically sharing their thoughts about what he can do. None of the solutions are good, right? either do nothing and watch MNAV go down and you know people lose confidence, right? Or he can sell which could buy him a lot of time but then will also cause a lot of negativity or the nuclear option which is to kill dividends. I mean the three options presented here with 75 25% none of these are good. Okay, none of these are good. Um, so you pick your poison, right? And maybe Sailor will figure it out. Maybe he's talking with Chad GBT or Claude at this point to kind of figure things out.

[00:08:13]Hopefully he is because he he's he's unusually quiet right now. And I get it because there's so much FUD around not just Bitcoin in general, but what he has done with Stretch and Strategy and now with the recent sale of Bitcoin, right?

[00:08:29]He's the one that always advocated never sell your Bitcoin.

[00:08:34]Now, outside of this, I said we got some good news about the war situation, right? Seems like it has been signed.

[00:08:43]Trump is now saying out loud, right?

[00:08:47]Everyone just has to fall in line, including Israel, right? They just have to kind of go with it. There's going to be peace.

[00:08:57]And Israel, it was just reported that Israel, I mean Iran is going to invite UN inspectors, okay, to look at their sites because there will be no part of this agreement is no nuclear weapons. So things are progressing. Also, the straight is moving and you could look at this and you could see all the ships that are now moving through the straight hormuz, which is good. We want this to happen because we want this to happen.

[00:09:25]We want oil to come back down. It is below $74. That's amazing. We started pre-war in the 60s, like low 60s. We climbed as high as 110 115. Now we're back to 74. And with oil coming down, prices are going to come down and then the Fed won't have to worry about rate hiking. And that was the big thing that came out yesterday. I scared the b Jesus out people, right? So this is good.

[00:09:54]Unlike the sailor strategy stuff, this is good all around. This is the reason why stocks and AI are skyrocketing.

[00:10:02]Okay, if you look at the stock screener, I mean today all almost everything with the exception of SpaceX, which I did warn you guys about too overheated, some profit taking from insiders, but you could see the list here. I mean, very green. Okay.

[00:10:20]Very green all around, especially with tech and AI. Maybe like some of the normal companies like like Walmart and Eli Lilly and JP Morgan didn't do well, but everything else, okay, in the tech sector, AI sector doing very well. So, how does it all relate to Bitcoin and crypto? Unfortunately, we're kind of following gold and silver at this point.

[00:10:43]It's almost like people are treating Bitcoin as a riskoff asset. one that you need to rotate money out of when stocks and and equities are hot, right?

[00:10:55]Unfortunately, that's what it feels like. Okay? And I've said this before. I I haven't been hiding it. There's been a capital rotation out. You could see it with the ETFs with the liquidity capital rotation out into the shinier shinier investments. And that's all this, right?

[00:11:12]I mean, just look at it. Everything in my watch list is pretty much green. And right now, that's what's happening. all this FOMO into tech and equities, especially since the war uh now has an ending or end date looks like to it.

[00:11:28]People are putting money back in, right?

[00:11:30]And that's the only reason why we went down today unfortunately. You know, it makes sense if we didn't if we just held, but unfortunately, we did. There's still this capital rotation out and it's very unfortunate. It's very unfortunate.

[00:11:44]I still maintain that money rotation will come back in, capital rotation will come back in into Bitcoin and crypto. As markets around the world in Asia, US become too high, too frothy, and there's too much FOMO, people will look for other kind of investments, undervalued investments. And I don't think anything more undervalued with a higher potential than Bitcoin at this point, right? So unfortunately, we just have to wait it out. I know some of you guys are sick of hearing that, but that's the reality. If you're a Bitcoin holder, bag holder, you just wait it out. Do what you can to hold on DCA, okay? Utilize the time to look at other investments, okay? that could be making you money and utilize that to profit and then you're able to continue DCA or buy more of your favorite Bitcoin or Soul or ETH or XRP, right? Utilizing your extra gains. I think that's the way you have to play right now. Okay, you got to be diversified. Now, outside of that, this morning a lot of people asked about AI plays. There are AI plays in the crypto sector. Okay, there are a few interesting ones including Clash.

[00:13:03]So, I think I'll be covering more going forward. I know a lot of you guys are looking still for uh for crypto bargains. I would argue right now there are many bargains. There are so many bargains. Um it's unbelievable. Okay, because we are we have so much red. So, I'll probably do my best and uh not probably I will start looking at some of these uh oversold oversold crypto. It won't be hard, but also ones that relate to what we're seeing with the broader market, especially with AI, right? And this morning, I kind of went through a couple deep pin plays, AI plays that actually do relate. And I'm gonna start covering a little bit more and hopefully you guys ask more questions and utilize Ask Clash because you have your own custom agent do research for you, come up with the reports, right? Look at momentum.

[00:14:02]You are free to ask the agent anything you want and it's really intelligent at helping you pick things out. So take a look at it. Okay.

[00:14:12]Uh that's about it, guys. Have a good one. Enjoy the rest of the day and I'll see you guys tomorrow. Have a good day.