The #1 Thing Coffeezilla Gets Wrong About Bitcoin

Added: 2026-05-17

[00:00:00]We are underwriting the next 8 to 10 years Bitcoin to go up 30 30 to 35% over the next 8 years 8 to 10 years compound annual growth rate.

[00:00:09]It's not going to do that. Personally, I'm not quite sure why he's so quick to say it's not going to do that given that if you look from 2011 to 2015, there's only four years where it didn't do that and the other 11 years out of those 15 years, Bitcoin was the best performing asset of all assets in the world. So, I don't think it's just based on history that unreasonable to expect something like a 30 to 35% average compound annual growth rate over the next 8 to 10 years. But, that's not the biggest thing that Coffeezilla gets wrong in this interview. If you didn't see this, this was Coffeezilla and Jeff Walton mostly talking about stretch and Strive's perpetual preferred equity offering, which is SATA. They were debating this basically went on for over an hour. It's pretty interesting. You should watch the whole thing. But, my favorite part was when they actually talked about Bitcoin. But, Coffeezilla revealed a lot of ignorances about finance and capital markets, but he really revealed ignorances about Bitcoin. So, I'm going to play you the number one thing that he was basically his biggest point about Bitcoin why it's not going to do that 30 to 35% CAGR.

[00:01:13]Then, I'm going to tell you why he's so so so wrong about what he thinks is his biggest criticism about that.

[00:01:20]>> It's a $1.6 trillion asset. Yeah, that's why I don't that that's exactly why I don't do because it's already such a big asset. So, I So, I kind of think of these things as as like adoption curves, right? You You're familiar with all adopt There's like an S-shape adoption curve. There's a There's like early adopters, then it kind of hits mainstream, and then there's a a you know, tails off not because the product isn't popular, but it's because it's It's maturing. actually is popular, it's matured, and there's not as many people or there's like there's starts to be an equalization of people who are selling, getting in the asset out of the There's not a lot of discovery. I look at Bitcoin. I look at the strategic reserve Bitcoin reserve, BlackRock holding Bitcoin, Michael Saylor holding 4% of Bitcoin or something like that. Most of the big events that are going to have massive, you know, kind of like Bitcoin will have addressed the markets it's going to address, a lot of those have already occurred. The people who have wanted it, who are going to it's going to address, largely it has addressed. Eventually, it will come to a point of I think you'll start to see like an equilibrium. And I think if you if you take of Bitcoin being an inflation hedge, if you agree with that, you would agree that when it once it's a mature asset, it's going to go up at the price of inflation, which is not 13%, which is definitely not 30%.

[00:02:36]>> So, his biggest point for why it can't do Bitcoin can't do 30 to 35% CAGR over the next 8 to 10 years is that most of the catalysts for Bitcoin adoption and growth that are going to come or were going to come have already come. I think this is a unbelievably insane and naive and ignorant take because, if you watch this channel before, you've seen me talk about how early we actually are. We are insanely early still to Bitcoin. It's only been around about 17 years. It's the hardest form of money that's ever existed and most of the world has no idea. I think people like him would probably argue, "Oh, most people in the world have heard of Bitcoin. So, anybody who is going to buy it has already heard of it and decided whether they're going to buy it or not." That's completely ridiculous. First of all, probably most of the world absolutely has not heard of Bitcoin. There's probably maybe 1%, you know, if you really count like how what percentage of the world actually owns some meaningful amount of Bitcoin, it's probably 1% or less. Maybe there's a some percentage of people in the West or in sort of developed nations who've heard the word Bitcoin, but literally have no idea what it is. Rest of the world, developing nations, whatever, probably have never heard of it for the vast for the vast majority of them. But, even in the West, if you just take the US or North America, or whatever you want to call it, developed countries, even people who've heard of Bitcoin have no idea what it is. And they basically have only heard of it in the context of 16, 17 years of mainstream media and government and institutional FUD.

[00:03:59]Basically, people saying, "It's a Ponzi coin. It's a tulip bubble. It's a Beanie Baby. It's not backed by anything and has no fundamental value." All the things they've ever said about it to FUD it that I've addressed on this channel, many, many, many of them. And that's all most people know about it. And maybe some people have bought it for speculative purposes and then sold it when they were up a little or down a little and just never thought much else of it. But Coffeezilla's speculation that most people who are ever going to buy Bitcoin or most catalysts that were going to drive Bitcoin adoption have already occurred and therefore its sort of adoption is going to plat- and price is going to plateau around here. I think that's unbelievably uninformed take cuz he just hasn't looked at it. Again, if maybe 1% of the world owns a meaningful amount of Bitcoin, the stats that are that probably less than a million people own a whole Bitcoin. I'll put my video on that right here if you want to watch it. And when it comes to he talks about institutions and BlackRock and the strategic Bitcoin reserve and all that stuff, if you just look at the institutional adoption, the ETFs launched I think it was basically 2 years ago and Bitcoin ETFs have been the best ETF product in the history of ETF products. For BlackRock, it quickly became their fastest growing ETF and their number one most profitable product that BlackRock offers is their Bitcoin ETF.

[00:05:11]So, I think it's maybe like 100 million dollars worth of inflows or something crazy across all Bitcoin ETFs. I I double-check that, but it's in that ballpark. So, it basically had got the fastest growing product in the history of ETFs.

[00:05:23]And therefore the growth is just going to plateau here? Like, why would that be the logic? Why why would you think the growth is now going to plateau? All of a sudden, everybody who's wanted to buy an ETF, a Bitcoin ETF, has already bought it. No chance. And I can definitely say definitively there's no chance because we know there's still large pools of capital that have not even been allowed to buy Bitcoin yet or Bitcoin ETFs or any Bitcoin related product. That's actually part of Jeff Walton, Michael Saylor, it's part of the theory for perpetual perpetual preferred equities like STRC is that there's a $300 billion global market of credit. That's what they That's what they refer to. I I did a video where I said it's a $145 trillion bond market. You can watch that here if you want to that could be the total addressable market for a stretch. Now, they'll say the credit markets globally are $300 trillion total addressable market. And that's money that probably has institutional mandates and cannot buy Bitcoin and probably maybe can't even buy Bitcoin ETFs. So, that's why they're creating these stretch products with that that institutional capital can buy those products. I don't know all the ins and outs of every single intricacy there, but it's kind of neither here nor there. I'm saying there are trillions and trillions and potentially hundreds of trillions of dollars that could not access Bitcoin up to this point and are now coming to the point where there are products that are offered to those capital allocators who can buy Bitcoin or Bitcoin backed products that translate into demand for Bitcoin or buying demand for Bitcoin. So, it's fundamentally untrue that like oh, the adoption curve for Bitcoin is already gone through its S-curve and it's petering out. There's just absolutely no chance. And the biggest reason I also believe that, if you've watched this channel before you've seen me talk about this uh chart that Jesse Myers made that basically shows all global wealth in the entire world.

[00:07:13]And couple years ago he first made it, he basically pegged it to $900 trillion of wealth in the world.

[00:07:19]Uh that's, you know, bonds, equities, real estate, gold, collectibles, money, cash, everything. And he recently updated it to say basically it's probably closer to a quadrillion dollars of global wealth in the world. That's a thousand trillion. What's Bitcoin's market cap? Today it's about 1.5 or 1.6 trillion. So, it's the again, in my opinion, best and hardest form of money that's ever existed. It's the best performing asset in the history of the world over and it's the best performing asset in the last 17 years. So, it's growth or it's adoption is basically faster than almost any technology in the history of the world. It's comparable to things like the internet and the smartphone. And like I said at the beginning, it's been the best performing asset in the world in 11 of the last 15 years.

[00:08:05]And yet, it's only less than 0.2% of all global wealth. That's insane. It's nowhere near reaching anything close to the adoption of where it's going to go.

[00:08:16]There's basically no evidence for the claim that oh, it's going to plateau.

[00:08:19]It's just It's just a theory that it's throwing out there because he he uh thinks oh, you know, anybody who would have bought Bitcoin by now has already heard of it and bought it. No chance.

[00:08:28]Most people have heard of it in a context where they've been told that it's bad and they don't understand it.

[00:08:33]So, people slowly come to the adoption because they have to unlearn all these things they've been told about Bitcoin and unlearn all these things they've been told about the fiat system and, you know, why bonds are safe and, you know, risk-free and why you should save money in in fiat and put it in the bank. All this stuff. You have to unlearn all those things, understand what money really is, why fiat is terrible money, why it's bad to hold your savings in dollars, and why you need a better alternative, and why the world needs a better form of money.

[00:09:04]Then, in my opinion, you have to understand what money is, why did gold become money, why did gold become the best store of value for, you know, 5,000 years, what are the fundamental properties that gold has that drove it to that degree of adoption.

[00:09:18]And now now even seeing gold can add 8 to 10 trillion dollars of market cap in the span of like a year or 18 months or 2 years, even though gold's already been around for 5,000 years. That's another point of why There's no way Bitcoin's reached the peak of its adoption. You would have thought gold of anything would have reached the peak of its adoption by now.

[00:09:40]But 5,000 years later, everybody in the world has heard of gold and everybody who would have ever wanted to buy gold would have bought it by now, right?

[00:09:46]Clearly not. There's been an insane run on the gold price in the last, you know, 18 months because people are always looking for a hedge against dollar debasement, a better way to store their value. They know that governments and central banks will never stop printing more money and adding more and more fiat to the system. And more and more that fiat will end up in all the hard assets.

[00:10:05]So, the gold price still has the ability to run 100% in a year, year and a half.

[00:10:11]Why hasn't the gold adoption curve flattened off yet? There's still demand for gold, clearly. So, the fact is you have a digital version of gold that is better than gold on the monetary properties. It's only been around for 17 years. Most of the world has no clue what it is or what's going on. And it is better at storing value than gold. Its supply is growing slower than gold supply. Your holdings of Bitcoin are being diluted slower than if you hold gold. So, there's just absolutely no world in which Bitcoin's adoption curve is flattening in any way, shape or form.

[00:10:41]It's volatile because it's so small compared to that ocean of fiat wealth that's washing in and out. And, you know, not that much inflows or outflows can have a large impact on the price.

[00:10:52]So, that volatility scares people away.

[00:10:55]But the volatility is a function of the fact that it's small and it's not that widely adopted. Like Copyzilla kind of hints at the fact or he basically says like you'll you should think you think if Bitcoin reaches a point where it's a sort of debasement hedge or a hedge against inflation, it'll reach like an equilibrium where it goes up at the rate of inflation, the rate of money supply increase. Like, yeah, I do think that will eventually happen.

[00:11:19]Decades, probably, in the future. And by the way, you would think that would have already happened with gold. Like gold would have reached an equilibrium and it'll only go up 6, 7% a year, you know, from here based on how much the money supply increases. That was maybe kind of true for like a couple decades where gold didn't really go up that much, but in the last couple years we just saw that it's actually not true. There's no equilibrium where gold, you know, hits a ceiling and it can't run faster than that. Clearly it can. So, Bitcoin also clearly can run faster than that.

[00:11:47]Eventually maybe some decades or centuries in the future, Bitcoin reaches a quote-unquote equilibrium where it only goes up at the rate of new money being printed, but it that would have to be a point where all the wealth that ever wanted to come out of other assets and go into Bitcoin has done so.

[00:12:04]Yeah, that thousand quadrillion, which that number keeps going up because more more and more fiat keeps being printed.

[00:12:09]More and more of that comes into Bitcoin's market cap. And as the more and more money keeps being printed, more and more of that also goes into Bitcoin's market cap. And then from there, we reach a point where if we have a fixed money supply that can't be inflated, now you have a money that can capture the deflationary aspects of productivity and technological innovation. And when that happens, that doesn't necessarily mean Bitcoin price keeps going up, but Bitcoin value keeps going up relative to falling prices. So, Bitcoin can keep going up forever in fiat or dollar denominated terms. It can keep going up as more and more wealth comes out of other assets and goes into Bitcoin, and as more and more fiat is printed and goes into Bitcoin, and it can keep going up in relative terms compared to the falling cost of goods and services. So, there's just literally no I mean, there's basically no world in which the quote-unquote adoption and price completely flattens out, especially relative to cost of goods and services. All prices fall in terms of Bitcoin forever because Bitcoin is fixed in supply. So, there you have it. That's my number one thing of what Coffeezilla did not understand about Bitcoin. I do wish that Jeff had gone like a little bit further into uh the Bitcoin explanation itself of like this is why it's the hardest money that's ever existed. This is why we believe I mean, he touched on basically why he thinks there'll be more and more demand and more and more adoption. I think some viewers who don't understand Bitcoin will be left with the but why does Bitcoin have value in the first place? Like that's what always they go back to. You're saying there'll be more demand for it and there'll be more adoption. Because more and more institutions want it. But they people don't understand well why does anyone want it in the first place? That's what that's what my whole entire channel is dedicated to. The other component that definitely not understand is the fact that Bitcoin is a bearer asset that you can hold. No one can take it from you and no one can debase it or dilute your holdings of the total overall supply.

[00:13:58]And Coffeezilla definitely does not understand that if you hold Bitcoin, you want to secure it in self-custody so that when it does go up 30 to 35% per year over the next 8 to 10 years, you are not at risk of being rug pulled by a an exchange that steals your money or goes bankrupt. To do that, I recommend you get the best hardware wallet on the market. That's the BitBox02 Nova, the Bitcoin only edition. It's Swiss made, open source, super easy to use, super thoughtfully designed. I love all the choices they made with the design and how the company really does things the right way including things like protecting your privacy. So go to the link in the description, bitbox.swiss/satstacker to secure your Bitcoin.

[00:14:39]Use the code satstacker at checkout to get a discount and support the channel which I really appreciate. Go watch that full interview with Jeff and Coffeezilla if you haven't done it yet. It's pretty good. There's also another thing that Coffee got wrong about Bitcoin that I think I might make another video about.

[00:14:52]If you like this video and you want me to do that, tell me so in the comments.

[00:14:55]I'll try to get to that this week. And of course, you never forget to quit slacking and start stacking.