hi this is mike maloney and i've got jeff clark with me again uh and we're gonna revisit the hot topics of the day jeff how are you doing i'm doing great mike great to be back with you of course and uh yes the bitcoin topic is uh one of the more popular topics that's being discussed right now um some claim that bitcoin is actually taking some capital away from the gold and silver markets the capital that would be going into gold and silver is instead going into bitcoin and it is


true some wall street firms are starting to get behind the crypto movement uh mike have you seen any capital going away from gold and into bitcoin and regardless of your answer does that change your view of how high the prices for gold and silver may ultimately go well i believe there's going to be a currency crisis one day and there's no central bank on the planet that holds uh cryptocurrencies as their assets no central bank holds bitcoin they many many many of the world's central banks


hold gold and gold is considered a tier one asset by these banks the uh most stable trustworthy assets that there are and uh the federal reserve for instance if faith is being lost in fiat currencies then the banks that do hold gold on their balance sheets have the option of backing their currencies once again with gold but it takes an enormous revaluation if they stop printing currency today it takes a price a little over eight thousand dollars per ounce to back all of the um the paper dollars the currency in


circulation uh and it takes a price of around twenty thousand dollars per ounce of gold to back that plus the rest of the base currency that the banks use so if there's probably problems with faith in the banks uh then they may need to back those they're not going to back it with bitcoin so you're not going to get this revaluation by all of the world's central banks uh by bitcoin however i believe that cryptos are and and i don't refer to cryptos as bitcoin i refer to them as cryptos it's


a it's a very broad asset class of a whole bunch of different types of cryptocurrencies that are cryptocurrencies and tokens uh that do different things they're they're created for different reasons and uh bitcoin is just one of them and bitcoin is basically used as a store of value and a speculation and i believe it it will do very well and it will probably but it's a probably it's not guaranteed gold and silver are like the absolute sure thing they've been money for 5 000 years


well they've been money for about 2 2500 years they've been the predominant currency on the planet for about 5 000 years and they have never failed other currencies come and go and gold and silver are always there throughout the centuries and so um uh i do see them being big winners against all of the other assets that are out there with the exception of some of the cryptocurrencies i don't know which cryptocurrencies uh i know that when there whenever there's a rush into bitcoin it becomes very slow and very


expensive however they've done things like developed a lightning network and these side chains and and uh then there's other currencies that are going to be able to carry bitcoin on them like ethereum and so on uh and so uh there are answers to the problems with bitcoin i think that cryptos uh many of them are going to do very well there's going to be uh probably more than 95 of them that uh 10 or 20 years from now won't even exist they're gonna go to zero uh so because there's there's so


many that exist and uh only the very best ones are going to do better than precious metals and so that means that um uh the cryptos are a speculation i own kryptos i've been buying them since 2014. i believe they're going to do very well uh in uh episode 8 of hidden secrets of money you can see me buying my first bitcoin in 2014 and i went back and immediately when i got to my office when i got back from this uh bitcoin conference it was called bitcoin on the beltway held in washington dc


and when i got back from that i told all of my insiders that i was going to probably put 10 percent of my portfolio into cryptocurrencies such as bitcoin and uh since then it's become a larger it's i'm overweight cryptos right now um i'm probably going to convert some i like to you know when uh cryptos are having a huge run-up it's nice to be able to have some profits that i can turn into something that is three-dimensional and has weight to it something i can hold in my hand that's real that is still


there if i don't have power if my if i lose my cell phone or if uh you know there's in puerto rico here power is a very iffy thing you get very use my the building i'm in has its own power plant because you have several power outages per week sometimes several in a day uh and uh but it power is sort of a speculative thing in puerto rico you're not really sure if it's going to be there and so uh uh you know even dan larimer uh the developer of uh the most uh the the uh cryptocurrencies that do


the most processing and i'm not talking about processing as far as mining i'm talking about processing as far as uh making blocks and processing the information the vast majority of all of the uh information processed by cryptos uh on the internet is is cryptos that were designed by dan lirimer uh eos shares and so on uh he uh said that you know if there is a uh coronal mass ejection or the solar the solar flare can wipe out the or if we eventually end up in a real war with china uh an electromagnetic pulse


wipes out uh the power and at that point you're not re if you're only in kryptos then you're you're not anti-fragile you're becoming fragile i see being in cryptos and precious metals as uh being uh much more resilient and at this point anti-fred if you're in stocks only or bonds only or a mixture of stocks and bonds you're also fragile you want to have some resilience and i i most of my precious metals i keep in storage accounts it brings security is highly liquid i can have the cash back into my bank


faster than i can have a cash cash back if i sell a stock on my merrill lynch account and it's connected with my bank of america account and still it takes longer than if i sell some precious metals and and uh uh i i've only sold tiny little odds and ends i don't sell any of my core holdings but when i had some odds and ends in storage i was paying minimum storage fees on things that i had very few ounces and it just didn't make financial sense so i sold those and i converted them


uh once i had the cash i bought uh ounces of [Music] the same types of gold and so silver eagles and gold bars um and i was amazed at how much quicker the cash was back in my bank of america account and bank of america and merrill lynch are basically the same than when i had to sell some uh stock in my merrell lynch account and uh it took much longer to get that settlement and get it into my bfa account so it's highly liquid it's uh stored uh it's fully insured it's guarded with guys


with by guys with guns uh so uh that's where i keep the vast majority but for the extreme tail risk of an event like this where there is no internet or no power uh and this could be cyber warfare that attacks all of the servers and servers and the internet is gone your access to it at that point your access to bitcoin or any other cryptocurrency is basically gone as well and so having both gives you the versatility and i do believe that some cryptos are going to vastly outperform precious metals and when you look at the


way i look at things which is through what i call a wealth cycles perspective taking the currency out of the equation and looking at assets versus how much that asset is worth compared to other assets to gasoline groceries those things which one is performing best and if you're doing that you can see what's really going up and going down in that case gold and silver might be going down measured in a couple of cryptos but measured against the real stuff like real estate and businesses and the stock market i think gold and


silver are going to vastly outperform those things so i've placed uh you know i'm not just betting on the winner when i've got like a trifecta going or something like that where you pick what is it win place and show gold silver cryptos uh i've got all three i believe in all three it's very disappointing disappointing and disheartening to see that um there's uh crypto people out there that want to beat up on gold and silver for some reason and they only pick gold and silver they don't beat up


on bonds or stocks these things that are incredibly overvalued that people should be running from for their for their lives uh and you know real estate is in a bubble in in so many areas uh they're picking on gold and silver which are fundamentally undervalued by most measures i mean i don't know how to measure gold uh as being overvalued when you measure it against the other stuff in society it isn't it's severely undervalued i personally don't know how to measure crypto cryptocurrencies i think though


that the demand for them in the future is going to be big because you know i'm sort of uh an oddball i'm in my 60s and i've got cryptocurrencies people that are over 50 don't understand cryptocurrencies usually as well as people that are 40 and under if you're 30 years old in your 20s virtual assets are just as real to a lot of these people as as a an ounce of gold or a house and so that is one of the fundamental reasons that these are going to do well in the future is that there's you know some of the older guys


uh treat cryptos with a lot of suspicion and distrust they they uh they just don't understand what they are and how they work i'm not one of those guys i believe in both i own both and my major bet in uh i've bet my life on gold silver and cryptocurrencies because i you know i now have a couple of stocks but not much i've got some uh silver silver mining explorers and a couple of other uh silver stocks uh but it's a very small percentage of my portfolio uh however they gain leverage if gold


and silver do great i expect them that they will in a market crash the stocks will go down uh while gold and silver go north stocks will go down with the market crash but when they rebound i mean if your cost is um if gold is two thousand dollars an ounce and your cost to uh mine gold is eighteen hundred dollars an ounce you got a two hundred dollar profit per ounce if it goes to uh three thousand dollars an ounce now you've got a twelve hundred dollar profit per ounce so the the amount that gold went up is nothing


compared to the amount that the profit of the mining company went up and so uh it does give you some leverage but it is a lot more risky and i've taken what i consider a balanced risk approach i think the cryptos are more risky i think what the fact that so many of the world's central banks hold gold as a tier one asset and trust it and that's what one of the things that they can fall back on should the you know the world's central banks back their currencies by promising to tax their populations in the future


they're buying uh the treasuries of their countries uh and you know here in the u.s the majority of the the fed's balance sheet is u.s treasuries so they have bought future taxation uh of the american people uh should this the dollar and uh and potentially bonds all come under uh doubt and suspicion distrust by the population and there's a crash in these things then the central banks can always fall back on their gold but it takes astronomical prices today and they're never going to stop printing


so those astronomical prices become even more astronomical i just see it guaranteed either way the more they dilute the currency supply the higher the prices of real stuff has to go the more distrust there is in fiat currencies one day uh the more the higher the price of gold and silver have to go in an official revaluation so either way you win with precious metals uh i i do think cryptos are going to do very well and i don't see these things as working against each other i see them working


with each other but covering different covering your ass in different ways uh and uh when it comes to kryptos taking from the gold sector no there's a flood of cash coming into both that's what's happening i don't see uh uh bitcoin or any other cryptos drawing currency away from the precious metals sector they are both uh i think gold and silver are much more of a safe safe haven i think cryptos though are also going to offer this safe haven from the crazy currency printing that


every central bank on the planet is doing right now they're destroying their own currencies so that's my long answer yeah that was there's some very good points that you made there mike for me it's about a monetary crisis the system is not sustainable as it is whether you look at debts or deficits spending stimulus the status of the u.s dollar it's not sustainable at some point as you've highlighted many times over many years now there's going to be a monetary regime change


something's going to have to happen and when that does what investments do you want to be holding and for me the clear first answer is gold and silver i think every portfolio needs to have gold and silver in it and you probably need physical gold for lifestyle protection you might actually need the physical for the kind of events that we were probably gonna go through when there is a monetary regime change uh kryptos probably will do well uh i think the response from gold is i will do well yeah that's great mike thanks for all


your input great topic and i'll see you on the next video okay see you later jeff