🚫 Experts Are WRONG... And They Know It

Added: 2026-05-23

[00:00:00]They say crypto is backed by nothing.

[00:00:03]And I say they're full of soy. Welcome back, baby dolls. Crypto is backed by the network. That's all it is. It's a network. It's a digital network.

[00:00:14]Networks are priced based off metaf's law, which means the more people in the network, the higher your value squared.

[00:00:28]So if you have a network of two people, what's 2^ squared? It's four.

[00:00:37]If you have a network of 10 people, what's 10 squared? 100. Are you starting to see the power of the parabola? So you can draw a chart. If your crypto network has two people, your value is four.

[00:00:55]Okay? If you have 10 people, guess what?

[00:00:59]Your value is literally up here 100. Okay? It's literally 100.

[00:01:05]You literally, you go from this point up to this point.

[00:01:10]It's literally parabolic. That's how networks are valued. It's got nothing to do with cash flow. It's got nothing to do with utility.

[00:01:21]It's the number of people in the network. Now, you might ask, why are people holding in the network? You're asking a a loaded question here. I don't know. Why are people living in the middle of the desert? Why don't they go live near the beach?

[00:01:37]Why do people stay in third world countries? Why don't they just go swim to a better country?

[00:01:44]Why is that? Why do you live where you live?

[00:01:47]You might say, cuz you know the people there. You can speak the language. Your parents are next to you.

[00:01:54]You're familiar with your surroundings.

[00:01:56]You work there. Exactly. Now you're stepping outside of Metaf's law and you're talking about Reed's law, which is the strength of the bonds of the nodes. Why people actually choose to stay?

[00:02:08]Are you starting to see now? That is what crypto is all about. That's what most people don't understand. They still try to apply crypto through the lens of stock market boomers. stock market boomers. They have free cash flow calculations. They're trying to guess, okay, if I own a company, let's say I own the company that makes Pokémon. All right? You're trying to guess how much cash flow are they going to be generating next year and the year after and the year after that.

[00:02:39]FCF, free cash flow. How much free cash flow are they going to grab? That's what Warren Buffett is a genius at estimating. Hence his long career where he become the goat. Okay. He can see into the future. He can see that the cash flow is going to keep compounding and generating and he picks the right stuff. Like for example, when a lot of people were trying to think about which new car company to buy in the 1990s, Warren Buffet was thinking about Gillette. Gillette cuz they make razor blades for shaving. Cuz he's thinking, wait a minute, men who shave are going to need to shave in 20 years from now.

[00:03:17]So the cash flow is going to keep going up. You see, he's thinking differently.

[00:03:20]Most people are just thinking about what what cool car company to get. But he doesn't want car companies cuz car companies are for plebs.

[00:03:28]He's starting to think about this now.

[00:03:30]We can actually look at crypto and we can get a better understanding. They have network real economic value rev. So crypto fence remember crypto is a city.

[00:03:44]Okay? That's all it is. It's a it's a digital city. It's a nation without a border. It's a city on the internet.

[00:03:52]That is different to owning a company. A company is not a city.

[00:03:56]The company makes a product. You can own the company and you can own the product.

[00:04:01]They are separate. You can buy Johnson and Johnson stock and you can snort their baby bum powder.

[00:04:10]That is two separate people. There's baby bump powder lovers and there's the stock voters. Two ent entities. You see, with crypto, it's not separate. It's mashed potato together. It's the same.

[00:04:26]With crypto, the person using the network is the network and the owner of the network.

[00:04:32]One of the pioneers of this new phenomena was Tesla.

[00:04:37]If you listen to Tom Lee, crowd favorite, he will talk to you in the early Tesla days about how a lot of the Tesla stock owners also bought the car.

[00:04:50]Interesting. In crypto, a lot of the crypto owners also use their chain.

[00:04:59]H they participate in the network. They are shilling for their chain. It's a jersey. a sport team. They don't do that in stocks. It's a different game, friends. In stock market world, people who buy Amazon, there's no Amazon Maxis.

[00:05:17]You think it's like one of the biggest companies in the world. Where are all the Amazon Maxis? You don't see them around. You have Tesla Maxis. There's a guy Tesla. Um I'll just show you this as well. Fuz, cuz a lot of these people do capitulate over time. Ben, if you look at Tesla, Elon Mus company in 2022, there was there's there's a guy, I forgot what what's his channel name.

[00:05:36]It's maybe called like Tesla believer or something. I don't know what he's Tesla something. This guy, he sold Tesla here.

[00:05:44]All right. Now, him and his father, it's wild, dude. This guy, him and his father have a portfolio of like $10 million.

[00:05:52]They went all in on Tesla. Like, he it was Fenz was absolutely ridiculous. They put something like a million dollars here. I think they made like 7x. Maybe they put like $800,000. They made like 7x. But what this guy did is I think his father maybe had 10 million at the top.

[00:06:08]He lost 70%. And then he got out because he said, "I can't afford my father to not retire. My father's like, you know, I think he's like 75 years old. He's retiring soon." So he took the 10 million. He actually sold it here for 3 million. And then funny, Tesla actually went up. And even more hilarious, Tesla thing became one of the world's most shortest shorted stocks here. And it was funny after it became the world's most shorted stock, it actually went on a big pop-up. I can't believe I remember this.

[00:06:34]Okay, but this is the difference. This is Tesla. Okay, Tesla, that's the unique thing about Tesla. A lot of the people who own the stock also own the car. Now, we can actually measure participation of chains. That's what this chart is. Real economic value. Now, let's have some fun, fans. I'm going to play for you some pump music cuz this chart is going to be interesting [music] because it's really bad. [laughter] Look at this fence. This is real economic value, okay? It's been going down for six years. [laughter] This is what a great industry we have.

[00:07:14]This is hilarious.

[00:07:16]>> [laughter] >> So, so people we start to understand oh networks and people using the chain. So then people get a metric and they go hey let's let's calculate the people on the chain and the value they send like the GDP of a country [laughter] and then and then it goes down anyway which it is hilarious it is hilarious but it it's still there right it's still there look um so you have to see right friends what this actually thing is this this is this is right remember in uh crypto we're valued like networks so you're valued like a city or a country where it's GDP okay so if transactions go back and forth And they're real, not just bots sending money to each other.

[00:07:54]We look at that as health of the economy in there. Like I said, that's what crypto chains are. Yes. Yes. You're getting it now. Stocks got nothing to do with that at all. Stocks got a different mean. Cash flow, how they're valued.

[00:08:09]Crypto's got no cash flow. Where's the cash flow generated?

[00:08:13]I mean, you're meant to transact with somebody else. Where's the cash flow?

[00:08:17]The cash flows into one person, into another person. Yeah, we call that GDP cuz you're not dealing with a single country, a single company cash flow balance sheet anymore. You're dealing with literally economic activity. Okay, but then a few things once again they get flipped on their head because then you look at Doge. Doge did a 4,000x.

[00:08:37]Nobody use the chain. XRP, nobody uses the chain.

[00:08:43]Bitcoin, nobody uses the chain. You say, "Oh, people use the chain."

[00:08:48]Um, are people using Bitcoin?

[00:08:52]It's one over one trillion. Are they using it anywhere near as much as you were buying Amazon when that was 1 trillion market cap?

[00:09:01]So, what you actually find is you don't even really need the economic activity.

[00:09:07]You don't need that. You just need people to think that the digital real estate land of the city is worth holding.

[00:09:18]Some people call it a Ponzi, but that's why they just say a lot of people say crypto is not backed by anything. That's why they say that.

[00:09:25]So if you friends even look at Bitcoin here, Bitcoin's real economic value, friends, it's been going down for a long time. No one's even using it for anything. You know, this is funny. You know, this was the Bitcoin spot ETF run.

[00:09:37]The only reason why Bitcoin's got a lot of orange here is because of the ordinal JPEG NFTs. That's why people were speculating on the NFTs, the little ordinal sats. And now like they're weeding it out. So you pretty much went to zero. So you know you'd like some definitive answer to this. Like what do we do? What do we do? Find more believers and get them to believe with you.

[00:09:59]You know that's why people like Bitcoin because Bitcoin was the response chosen by the people released into the world for the people. It was a response to the deep state banking cartel, government authoritarian, bal worshipping central bank scum.

[00:10:20]It was our response. We used technology to liberate mankind. Give you an option for a long long-term store of value.

[00:10:30]Like, hey man, if you don't want your money to go to bombing kids and blowing their intestines out of their bodies, guess what? You can hold something else.

[00:10:38]You decide if you want it to be valuable. you the people, but you can hold something else. It's called Bitcoin. Long-term store of value. Okay.

[00:10:44]Now, we need to solve for the short-term one, don't we? We need a short-term stable coin mimicker. That's outside of the system. We do need that, right? But we have a long-term one now. So, baby steps.

[00:10:54]So, total crypto network RV declined 34% quarter to quarter down to 307 million.

[00:11:01]Bitcoin has been near zero for the past 24 months. People are holding Bitcoin because we want the price to go up and none of us are using it for anything.

[00:11:10]Which is true, which is a lot of people can't wrap their heads around that. I want to ask you something. Are you using gold for anything? What are you using gold for? Oh, jewelry. I have jewelry on my neck. I have jewelry on my wrist. The jewelery utility value of gold is only 10% of the ounce. Which means if gold's $4500, your base utility value is only $450.

[00:11:42]It's 90% lower. Everything else is monetary premium. People are storing gold for the future.

[00:11:49]It's just got a base utility value. So it's not even that much utility.

[00:11:54]You get it? So that's why crypto is sometimes like a stock because with a stock you own a company but with crypto you own the country, you own the city.

[00:12:08]It's digital real estate. That's why they're similar to stocks but it's not completely stocks. Okay? And then it's also like a commodity. It's scarce land.

[00:12:17]Scarish. There's no cash flow here. It's commodity like land, right? And then also there's a lot of copycats of a lot of chains and you're wondering how this block space is ever going to be useful. But you're thinking about the future now. I'm talking about today. Okay, we can worry about that later on. But you're starting to see why this is important and why people are holding. It's because they think one day we will put more use cases into the chain and the cities will build up.

[00:12:48]We'll be waiting a long time. That's why everyone's optimistic for AI agents, maybe social media, finance, DeFi, DeFi upgrades, stable coin super cycle, whatever it is. We're just hoping over time these things start to explode.

[00:13:02]Everyone's waiting for the moment that just the match gets lit. Okay, not everyone in the world is using it. It's going to get we have to get more seamless transactions, right? Remember, once you start throwing in privacy, once you start to throwing in tokenization of stocks, that's a big thing as well because once you have stocks on the chain, okay, you have arbitrage between the stock market and the actual stocks.

[00:13:24]So, there's bots that are constantly keeping everything. They're list linking everything all day. They're just trading with each other all day. Now, it is kind of fake volume and stuff, but not really fake, but like it's not really like you and me transacting something, me buying a cup of coffee. But you're getting closer.

[00:13:39]You're getting closer to the vision.

[00:13:42]So, don't let this stop you, friends.

[00:13:43]Crypto is still growing to the moon.

[00:13:45]It's going to the it's going to higher highs because there's going to be a week big wealth transfer from the baby boomers. It is currently happening. Just taking a sweet ass time. 10,000 baby boomers pass away every day. Their children are millennials. Their children are zoomers and they will be allocating a higher amount than 0% into crypto because they already do have that, right? staker holding Bitcoin for price appreciation is not the way to go.

[00:14:09]Holding hex for price depreciation is the way to go. Thank you very much sir.

[00:14:14]So of course we are speculating on this piece of land.

[00:14:17]Okay. If it goes up you're considered a genius. If it goes down people think you are buying land in the middle of the Saharan desert wondering you know why you put it in the first place. So we don't know. You don't have the answer but you actually do see now what crypto is backed by. It's backed it is a network. It's backed by the network.

[00:14:36]It's backed by people who just believe this thing is here to stay. Like, subscribe.