In brief, only the first inning theyve got enough authors on here to fill out an entire baseball team, but by the numbers, its estimated that 21.2 million u.s adults own digital assets about 14 of us adults own digital assets. They believe that another 13 plan to buy in 2021 that would bring us to a total of 27 percent of the united states population will use our own cryptocurrencies before the end of the year. Now, on top of that, they say that there are over 200 million crypto users globally. There are now 11 500 plus altcoins or tokens outside of bitcoin. Although many do not have a clear use case, they are incredibly bullish in this report. They say we are only in the first innings of a major change in applications across most industries that will take place over the next 30 years, so kind of a multi decade outlook here from bank of america. The estimates indicate that 221 million users globally, as of june 2021, have traded a cryptocurrency or used a blockchain based application, which is up from 66 million at the end of may 2020 and then also. The second point is that, due to technological advances in decentralized software that is native to the internet, a new medium with distributed ledgers and blockchains at its core, it is emerging rapidly, and so, when we think about this 14, as of june of u.s population, own cryptocurrency. But they believe that that will jump all the way up to 27 of us adults will own cryptocurrencies before the end of the year.

That is a big number, but not very surprising when you start to look at the numbers like a coinbase which has over 55 million registered users, the bigger number to me and the more surprising numbers that they estimate now over 220 million people globally, own crypto assets Or have used blockchain based applications. That seems like a really really big number, and so, when you see a large organization like a bank of america going out and putting in a ton of work, creating a report like this and releasing it and being ultra bullish, you have to think that over the Next couple of decades, we are likely to see a drastic increase in the adoption of these assets, more participation from the legacy system and also, if you see an increase in adoption and an increase in institutional participation, it will likely lead to prices of various assets and Various technologies continuing to appreciate for years to come what was the most surprising part of this report to you, john um, the fact that they said 14 use it now. I wasnt surprised by that number. I was surprised that they said this report was released earlier this week, that 13 more people will hold digital assets. Uh us adults will hold digital assets by the end of the year. Basically right. The report said in 2021., so it was a little bit surprising to me that within a three month span or whenever they started working on this report – that we are actually going to double the amount of people of u.

s adults that hold digital assets. That was the most surprising and obviously bank of america is very bullish on bitcoin and very bullish on cryptocurrency joe. What do you think yeah? I think uh whats surprising me is kind of whats been happening over the last week or so right. When you look at uh, bitcoin has traditionally moved alongside other risk assets right when you look at kind of the the four five six seven year history here, uh theres obviously been some booms cycles, some bull markets and bear markets et cetera, and it hasnt been kind Of a perfect outlay, but especially over the last couple of years, its its been moving alongside traditional risk assets, assets and, over the last one to two weeks, its really decoupled from that right. So if you look at everything, thats happening in the equity markets and kind of the other markets, uh in finance, bitcoin is moving outside of that. So we have a bunch of uh jobs. Arent growing as fast the unemployment rate is high. Inflation is bad uh. You know all these things that theres regulatory uncertainty covett is stalling and people arent going back to work. All this stuff right has put equity markets in kind of a standstill over the last few weeks. Bitcoins up 25 this month were what were eight days in right. So when you look at it kind of its out performance, its done really well over the last month, uh and then i think, if you look at it from kind of the adoption that were seeing its obvious, that 2017 uh 2020 and going forward its not just Kind of fear or fomo or people trying to get rich or people trying to uh realize profits all this stuff and chasing all that theres real adoption, uh thats happening both in the institutional world and the retail world countries have it as legal tender theres a bunch Of other stuff going on, but i think the main thing to realize is that, like this isnt going anywhere right, like the saying i believe is just bitcoin is inevitable and when you look at it from kind of the adoption numbers that legacy banks are now putting Out and all these other institutions are saying, hey look.

This is going to grow by a lot over the next short time period, but also over the long run, a bunch of people are going to adopt these assets. A bunch of people are going to hold them. Personally, i think what were going to see is that massive price appreciation continue, and i wouldnt be surprised if uh, if we get further and further away and decouple ourselves further from traditional risk assets like equities john. What do you think about that? At what point in time? Do you think that we get more uncorrelated with the other cryptocurrencies like bitcoin in general and then um equities as well? I think the decoupling is only going to continue for for quite a while here, but it all feeds together right, if you think about, if you zoom out for a second here, is like the the um uh heres, like the macro view of whats happening in the World right now you have technology as a deflationary force. Part of the reason why theres 11 million open jobs, theres high unemployment et cetera, is because technology is driving the cost of labor down drastically its actually allowing businesses to do more with less human labor right. So you have this massive technology uh force that drives down deflation. On top of that, you have politicians who now are essentially the drivers of fiscal monetary policy when they tell people to jump, they jump, and so what theyre incentivized to do is mitigate short term pain.

If all of a sudden, we are going through a transition from lots of human labor needed to do tasks to now replacing that with technology, you then have humans that are displaced from their jobs. That short term pain. Politicians will not allow to occur because its bad for business, it doesnt, get you reelected. If your people are suffering so what they do, then is they use both their direct powers and indirect influence to get the treasury, the federal reserve and other organizations to go ahead and participate in the devaluation of the currency. The entire idea is, we can basically borrow a bunch of debt, which is a complete ponzi scheme in terms of borrowing more debt to pay off earlier debt. Then, on top of that, what we can do is we can continue to devalue that currency. We will hand out direct stimulus, well manipulate interest rates. Well, do everything we can to keep kicking the can down the road, but what ultimately occurs is that, while it feels good in the short term to give somebody money a 1200 stimulus check, it actually hurts them over the next 18, 36 or five months or five Years, because what they really start to see is then they get high inflation so right now, if you look over the last 18 months, what happened was there was a public health crisis. It drove economic slowdown that economic slowdown led to short term pain. Short term pain.

Was addressed by politicians and central bankers they stepped in, they intervened in the market, manipulated interest rates down to zero. They printed trillions of dollars. They handed some of that money directly to people. They also handed it directly to corporations, and they also stuffed it in every corner of the complex financial system when they did that it felt good im, getting a 1200 check im, getting a boost to unemployment etc, but now, all of a sudden, the bottom 45 of Americans that hold no assets and didnt participate in the insane asset appreciation that occurred by owning a house by having some sort of stock portfolio, crypto portfolio, etc. Those individuals also happen to be the people who buy the most amount of inflationary goods. Their groceries is a very large percentage lets say of their actual monthly spending and so theyre the ones who get hurt the worst by the inflation that is now here. So if youre in the bottom, 45 percent of americans talking about 150 plus million americans, what ends up happening is that you literally got the public health crisis. Then you got the economic slowdown, then you got handed money, but that money ended up actually being a net negative over the long term, because now youre dealing with insane levels of rent of grocery prices, other assets going up et cetera, and so now, as you start To try to operate your life, what youre realizing is wait a second, the politicians who are mitigating the short term pain did it at the expense of the medium to long term, and so we get in a situation where what can i do with my wealth? Well, i cant hold dollars, i cant buy treasuries, i can go buy stocks, maybe theres some commodities i can buy or i can buy cryptocurrencies.

But if i know that the stock market is susceptible to the same exact manipulation, the second that they say, ah, you know were going to taper the stock markets going to crater. So, okay, i dont want to maybe participate in the same thing: im going to seek out uncorrelated assets, wheres the uncorrelated assets, well, treasury stocks, etc. They all move together the most uncorrelated asset or the most attractive uncorrelated asset from a risk return standpoint is bitcoin. Its got a 0.15 correlation level. This sharp ratio is off the chart, its returned over 400 of the last 12 months and if you can actually stomach the volatility in the short term and hold for a long period of time, its been the single greatest performing asset over the last decade. So you start to say to yourself: okay, well, maybe im not crazy, and i dont go put a bunch of my net worth into this or my liquid portfolio, but i probably should own a little bit of it and thats where youre seeing uh. You know jamie dimon say that uh or im sorry jp morgan say that uh bitcoin has replaced gold as an inflation. Hedge youre, seeing bank of america come out and say hey. This entire industry is going to explode its not just about the short term issues.

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