➡ The $345 trillion fixed income market, which many people rely on, is failing due to three main reasons: inflation caused by the Iran war, too much debt and not enough buyers, and foreign investors selling their holdings. As this market declines, a new one is rapidly growing, already worth over $3.5 billion and expected to reach $21 billion within a year. This new market could potentially save your retirement if you’re aware of it and understand how to use it.
➡ From 1980 to 2040, the number of boomers buying has increased, but now they’re retiring and spending their money, reducing their market presence. Meanwhile, foreign demand for U.S. treasuries is dropping, with many turning to gold instead, especially after the Russia-Ukraine war raised concerns about the security of U.S. treasuries. This shift is part of a larger trend affecting financial markets, including Bitcoin and gold. The situation is complicated by financial repression, where governments keep interest rates low and let inflation run high to reduce their debt, effectively acting as a hidden tax on savers. This makes bonds less attractive, as they lose value and don’t keep up with inflation, leading to a search for safe income with good rates.
➡ The government’s increasing interest payments could limit its ability to raise rates, which is problematic for older populations who rely on fixed income from bonds. However, the financial system’s reliance on future cash flows is risky, especially with AI disrupting business models. A new approach is suggested: digital credit, built on Bitcoin and backed by companies that already own the asset, offering a more secure form of fixed income. One such product, Stretch, has seen significant demand, offering a stable investment with an 11% yield.
➡ This text discusses a new type of asset, digital credit, which offers an 11.5% yield and is not taxed as income. Despite seeming risky, it’s backed by substantial cash reserves and Bitcoin assets, providing security for up to 41 years. The text also warns about the dangers of private credit, which is opaque, illiquid, and potentially risky for investors. Lastly, it suggests that digital credit could disrupt the treasury market and reduce Bitcoin’s volatility as it grows.

While everyone’s arguing about whether bitcoin replaces gold, what if I told you it doesn’t matter? You see, gold’s a $30 trillion debate. It’s pretty big. But the real story is a 345 trillion one. And almost nobody is paying attention to this. And what I’m talking about is the biggest market in the world, 345 trillion of fixed income. The same market over 100 million people depend on every day. And it’s been failing. Now it’s only getting worse fast. And there’s three specific reasons why. But we’re. While this market falls apart, a new one is quietly being built faster than anyone could even ever believe.

It’s already over three and a half billion dollars. In less than a year, it’s on pace to jump to 21 billion. And this could save your retirement now, of course, if you know about it. So in this video, I’m going to explain those. I’m going to break it down. I’m going to show you the three reasons why the $345 trillion fixed income market will continue to crash and fall apart. I want to show you the new market that’s being built up to replace it right now and how you can use it today to fix your retirement faster than you ever imagined.

You ready? Let’s go. All right, we’re gonna have a fun one today. I got a lot of data to go through and we’re gonna talk about bitcoin versus gold. I know a lot of you are hate bitcoin or you hate gold or whatever. We’re gonna talk about them. But I’m gonna show you that the battle is not what you think it is. Now, for you guys that love to hear about bitcoin versus gold, you might be interested in a debate I just recently did with Peter Schiff on Zero Hedge where we went at it for about an hour talking about bitcoin versus gold.

Of course, I won. But we’ll link to that down below if you want to check that out. But let’s talk about something different. And this is much bigger than bitcoin replacing gold. All right, we’re going to talk about, first of all, the deal that broke. You have to understand what the markets are, the purpose, the intention of those things sort of at a first principles level so you can start to understand why things might need to change, how they might change, and then why a potential solution could be a good one. Okay, let’s take a look at that.

So the deal broke. So what deal am I talking about? I’m talking about the 40 year deal. For the last 40 years we’ve seen one constant and that is that bonds have continued to go down. Bonds are debt, right? So you loan money to the government, they issue a bond and they pay, you yield on that. So we can see from 1980 at a peak right here of about 14%, the, the price of bonds has continued to go down. And it hit this crazy world where like they paid zero in some, in some nations they paid less than zero, meaning when you gave them money, when you loaned the government money, you were guaranteed to lose.

Crazy, crazy, right. But it got all the way down to zero and now it’s been returning. And the problem is, is that for the last 40 years everybody who’s been investing has been doing, you know, some sort of a stock and bond portfolio, 60, 40 split, something like that. And that was a good deal because the bonds kept becoming worth more and worth more and worth more. And the bonds were going up, up, up. When the yield comes down, the bond goes up. It sort of works in this inverse relationship. But now it started to reverse, which means bonds are losing value.

It’s part of the reason why right now, today banks are sitting on something like $300 billion of losses because they’re holding U.S. treasuries that are continuing to lose value over and over. And so the deal was for the last 40 years that all you got to do, make money, put some into bonds, you get that fixed income and everything’s going to be good. But now that deal is broken, there’s three main reasons why it’s breaking and it’s never going to come back. Then we’ll talk about the replacement and what we can do about all this. But number one, there’s three external forces that are really causing a shake up here.

Obviously right now we have the Iran war that’s going on right now and that’s created a lot more inflation and we get more inflation in the system then it, number one, makes the bond yields not near as attractive. But number two, it changes the tools in the toolbox that we have from a monetary perspective that the Fed can do and things like that. And so we can see the monthly change in inflation has been going up. And a lot of this is what we call cost control. Push inflation. So you have demand inflation, you have cost push.

Demand is when you print too much Money, like in 2020, they send out the stimmy. Now you have more money chasing a fixed supply of goods, but in this case cost push, meaning the cost of Oil went up. And so when the cost of oil goes up, then everything goes up on top of that. And there’s really nothing the Fed can do to prevent that, except for try to destroy demand. Meaning make you broker, make you not be able to afford more gas and you buy less. That’s all they can do. It’s terrible. Okay, the second force that I see going on is too much supply and not enough buyers.

What do I mean by that? There’s too much supplies. There’s too, there’s too much debt. There’s too many US Treasuries being sold, and there’s not enough buyers that want to buy the debt. The United States government continues to run $2 trillion deficits. Right now the deficit is on track to be blown out again. Obviously with the war, it’s very expensive. And so the U.S. treasury Department must sell this massive amounts of bonds. They have to sell more bonds, more bonds, more bonds. But at some point, there’s not enough buyers. It’s always about supply and demand. You can boil all of economics, all of investing down to supply and demand.

It’s that simple. Okay, well, there’s a million reasons why supply and demand, but it’s always that. So we can see in, in year 2026, projected to be 1.9 trillion. That is the deficit. Not quite 2 million. I’m sorry, 2 trillion. 1.9 trillion. But of course, that’s going up rapidly. I’ll show you a chart in a second. The market is demanding higher yields. So shoot. In order to get more buyers to come in, we have to offer them higher yields. We have to make it more attractive for them. Okay, that’s a problem. And then we have. Because.

Why is that a problem? Because as we start having higher yields, it makes bonds lose more money. Right? It’s a bad deal. It’s an inverse correlation. It’s a terrible way that the market is built this way. I’m going to show you how we’re fixing that. Okay, the third one, real quickly, is that foreign investors are selling. So not only are not enough people, there’s not enough buyers for the amount of debt that we need. On top of that, buyers are actually getting out of the market they’re selling. We can see that the, the assumption broke. We can see total holdings dropped from 29 billion down to 19 billion for the German and Dutch markets.

So they’re, they’re actively selling. So they’re not just not coming to buy, they’re actually selling what they have, which means there’s even more volume being Dumped into the market we saw Japan’s ten year Treasuries, which used to provide negative yields, are now delivering one of the highest yields since, since 1999. So the yields are going up. So there’s three structural reasons, three underlying forces that are causing this. And again, these are sort of moving targets. Right. So we can see right here, this is the deficit blowout scenarios that the Iran war could have an impact. Now we don’t know how long it’s going to continue going on, nor do we know how much we’re going to spend.

So these are just some potential scenarios. But if this were to go on, let’s say for where we’re kind of past the six weeks, if this goes for, for let’s say up to four months, that could put us up to about 2.2 trillion on the deficit instead of 1.9, 2.2. It’s pretty big. If this goes on for let’s say a full year now we’re at 2.5, 6 trillion. It’s a pretty big deal. So this kind of blows out all the numbers. And then we also have to understand this one more piece before we start looking at potential solutions and where we go from here.

But we also have this. So when we talk about buyers moving out, we’re talking about governments moving out, not buying as much debt, selling the debt, but we also have the retail buyers moving out. So this is the net buyer to net sellers. This is the US boomers from 1980 to 240 to the year 2040. So you can see that we had more and more boomers buying. But now the boomers are getting out of the market. They’re getting old, they’re retiring and they want to spend their money before they die. You know the book Die with Zero, they’ve all read that and they all want to spend down and they’re not buying either.

And that’s contin continue to project all the way down through 2040. All right, so that sort of sets up where we’re at. But there’s a replacement, there’s a shift already taking place. What are we talking about? Well, some of the shift that we’re seeing are things that you’ve heard me talk about. I’ve actually already talked about them just on this video. Let me show you two charts from another video I did, I think last week. A foreign official treasury demand is having a structural collapse. So what I’m talking about foreign treasuries that hold U.S. treasuries. The demand is collapsing.

We can see here from 2015, there’s about 34% at the peak. It’s down 10 percentage points all the way here to about 24% this year. 10 percentage points in only about a decade have disappeared from demand from other countries. Okay, so that’s a pretty big deal. Where are they going? Well, we can see back to my gold bugs here. We can see that a lot of them are buying gold. So we can see during the same timeframe here was gold buying. 2020 and 2021 small step up. But here we have 22, 23, 24. Look how much the increase in gold buying was, and it’s only continued now.

Why this year, you ask? Well, this year, if you can remember all the way back to 2022, was when Russia and Ukraine got into war and the United States, NATO, the west, decided to freeze Russia’s bank accounts, basically seize them. And the whole world realized, shoot, I guess those U.S. treasuries that were supposed to be risk free aren’t so risky or aren’t so risk free because, shoot, they could just take them whenever they want. So if that can happen to Russia, it can happen to any of us. So we should probably not hold as much as Treasuries and we might hold something like gold in our own safes that they can’t steal.

And so we’ve seen that huge demand. So for all these reasons, we’re seeing this happening. Okay, but that’s just for gold, and that’s just for Treasuries. And more specifically, it’s for specific use cases. But there’s something even bigger going on. Let’s take a look at this. So this is why I’m saying it’s not just a replacement for gold. Let’s take a look at financial markets in the world. You see, right now, bitcoin is right down here. It barely registers on this. And right here is the gold market. So for all my gold bugs out there, they love to see how much bigger gold is than Bitcoin.

And as I said in the intro, Bitcoin’s not coming to replace gold. As you can see, there’s much bigger markets at play here. So when we talk about the couple factors like we talked about where bond yield, bonds are going to continue to lose money. They’re forced to be liquidated. I’m going to show you that what that means in a second. And part of the reason why people buy bonds, as I showed you, like those boomers, is they need fixed income. So the tradable fixed income, securitized fixed income, market is about $145 trillion. That’s this. Look how much bigger.

And then we have here about $350 trillion in debt. So debt is also income. So look at these markets, and this is what we’re talking about. If I can’t trust a government to hold their debt and them to pay me back, if I can’t trust a government to pay me the yield or pay me the yield without debasing me, then what do I do? So we’re not just coming for gold. Well, we’re coming for something much bigger. Let me show you what we’re talking about here. Okay, so the real reasons really come down to the rates.

The problem, or the reason why we’re seeing rates go up really twofold. One, as I said, we have to entice more people to buy them. But the bigger problem is something called financial repression. If you’ve been watching my channel for any period of time, you see me talk about this many times. And the reason why I talk about it is because it’s literally written as a playbook when I say that. Meaning like the BIS literally wrote a white paper, the IMF literally wrote a white paper explaining what it is and why we’re going to do it.

And we’ve done it in the past, we’ve done it in history. So when you watch my channel and you see me talk about this, the reason why is because this is what we’re doing. And if you don’t watch my channel regularly and you haven’t heard this, you probably should. So hit that subscribe button real quick so you don’t miss any of these important alerts. Okay? What does this white paper say? I’m going to give you the. Give it to you in a nutshell. Basically, in order for governments to liquidate their debt, get rid of their debt, they need to hold rates low and let inflation run hot.

They can steal, they can liquidate, they can pass that on like to a tax to their bondholders. All right, so what that means is that even though the government’s going to pay you 4% or 5% or whatever percent they’re going to pay you, you’re still be losing money because inflation will be hotter than that. That. So on top of the bond losing value, I’m losing money on my holdings because the yield’s going up. The yield is still not keeping up with inflation. I’m losing. So that’s financial repression. So why, no matter what they pay me, why would I want to hold that? If the amount they’re Paying me is less than what I’m losing to inflation.

That’s a problem. All right. You can see the financial repression definition right here. In case I didn’t explain it properly, it acts as a hidden tax on savers. It’s artificially low interest rates. Why? What is the purpose and the impact? The purpose is debt liquidation. You can just get this right from Wikipedia. The purpose is for debt liquidation. And what does it do? It creates a wealth transfer where it transfers resources from private savers to the public sector. That’s the purpose, to steal your money and give it back to the government. That’s why nobody wants to do it.

We want to ignore the white paper. Now, if that wasn’t bad enough, if that wasn’t bad enough, most portfolios out there are using a 6040 bond portfolio or some sort of a percentage like that in order to bring the volatility or we say bring the risk down. So if equities go down, I have my fixed income and it evens itself out. However, you might be surprised if we take a look. This is the five year Sharpe ratio. A Sharpe ratio is how we measure how volatile an asset is. Now this is the last five years and I’m comparing the most volatile asset, the one that everyone’s afraid of because it’s so volatile, Bitcoin.

We’re going to compare gold and we’re going to look at U.S. treasuries, the risk free asset, right? The one that we use to limit volatility, the one that we use to limit risk. And what we can see on the five year sharp ratio, here’s the zero line. So what we can see is that on a sharp ratio basis, the US Treasuries is the highest risk, it’s the highest volatility asset you can own. So not only am I losing money because they have to keep raising rates, not only am I guaranteed to lose money because they’re going to liquidate me regardless of what the financial repression liquidate me regardless of what they pay me.

On top of that, it’s more risky than holding Bitcoin or gold. So that you might ask yourself, why would we want to hold it? And now you’ve answered your own question. So what, what people need, the reason why they put money into debt is because they need income. Safe income with good rates. I need yield. I need income, but I don’t want to lose my money. I want to, I want to keep my capital and I want to earn yield or I want to earn income off of it. Now why can’t they just pay good rates.

Here’s a chart from a keynote I did in Hong Kong. Last, last. This is the debt math. Okay, so what this chart is showing us is that right here at about a 5% rate, the. The amount of interest the government has to pay is about 36% of all the revenue collected. But if they were to raise the rates to pay people something fair, something that would actually work, let’s say that they raise that to about 7% now, they’d be paying out more than 50%, 53% of all collected revenue just on interest alone. That’s obviously unsustainable. And the bigger problem is that if we look out over a long period of time, per the Peterson foundation, we can see that the 10 year interest calculation is expected to continue to skyrocket.

So the government’s going to be paying more interest as a percentage of gdp and that means they can’t pay more rates. As a matter of fact, they need rates to go down. It’s pretty much guaranteed. Now the question is, who the heck needs this yield anyway? A lot of you guys are like, why would you ever buy bonds? Just buy bitcoin, buy stocks, buy Nvidia. Why would I want yield? I want my income to go up. Okay, that’s cool. But here’s who needs yield? All the old people. As I showed you the demographics, this is sort of all the developed countries.

Japan, Russia, Italy. And so you can see in Italy, the percentage of old people is very high and it tapers off for the amount of young people down below all these people. Same thing here in China. You have all these old people sitting at the top with less young people. Sorry, this is Canada, sorry, China. And here we have all the developed world. We have about 100 million people in the developed world that are in this bracket that need fixed income. They can’t wait five years for bitcoin to go up. They need income right now to pay their bills, to pay for their medical expenses.

They need income right now. They’re dependent on their income to come every month. They need an income level that will pay more than the rate of debasement, more than the rate of inflation, which bonds can’t. U.S. government bonds can because of financial repression. And they’re losing value anyway. So what do we do? One more thing. Before I give you the solution, we also have to understand that the entire financial system is built on a hope and a prayer, hope and a promise. It’s all built on hope and a promise. What do I mean about that? The entire financial Markets.

Everything in the financial markets is built on hope, or what we call discounted future cash flows. What that means is when I invest into a bond or an equity, stocks and bonds. If I invest into an equity, I’m buying a company based off of their future cash flows. They’re trading on a PE ratio, a price to earnings ratio. If I’m buying Tesla or Apple or Google, I hope, I pray, I cross my fingers and Hope that in 30 years or 40 years, the PE ratio, 30, 40 times, they’ll have the cash flow to be worth what I paid today.

Or if I do a bond, I buy a Google bond, I buy a Tesla bond, I’m going to give Google money as debt, a bond, Google bond on. And they’re going to invest into a data center. And I hope and I pray that. And they promise to pay me back. But how do I know if that investment pays off? What if they don’t have the money to pay me back? In today’s day and age, with a and I disrupting every single business model that we know, how do we know what businesses are going to be around in five years, much less 30 years? So everything in the financial markets that we know, all equities and all debt, all bonds, are built on that, all equities and bonds.

But again, with AI disruption and financial repression being the playbook per the IMF and bis, they’re guaranteed to lose money. So we need a new approach. Obviously, the entire system is built like this, but it’s not going to work. Not in the age of AI, not the age that we’re looking for, not in the age when it comes to fixed income. Now, if you don’t care about fixed income, then you could just. I guess you don’t have to watch the rest of this video. I still recommend it. But. But who needs income? 100 million people, $345 trillion, just the single largest financial market in the world, period.

That’s who needs the better system. So let’s take a look at what that better system might be. All right, so as the world advances, we’ve digitized everything. We’ve digitized music and movies and books, everything, right? Even our meetings, our messages. And now we’re digitizing capital. And now we’ve digitized credit. What are we talking about? So, digital capital. Bitcoin. You’ve heard Michael Saylor talk about this. He’s calling it digital capital because it’s capital, but it’s digital. So it’s faster, it’s stronger, it’s obviously more transparent, more Portable, all of these things. But now we have a new product being built on top of that that’s called digital credit.

All right? And everything else is the 1.0 version built on that hope and a promise, House of Cards. And now we have digital credit, which is something completely different. What am I talking about? Well, number one, it’s built on Bitcoin, but it’s backed by a publicly traded company. It’s backed by a company that has the asset. Now, what the difference is here is that typically, again, if I loan money to Apple or Google and a Google bond, they’re going to spend the money on a data center and hopefully it pays off. And hopefully in the future, they have the cash flow to pay me.

The difference is when we give our money to a company. And there’s several companies doing this. I’ll break this down for you. But a company like MicroStrategy, they don’t hope to have cash flow in the future. They have the asset right now. Today they went and bought the asset and the asset is sitting there. And they can use the asset to pay me back anytime. They don’t have to get a return. There’s no operating expenses. There’s no operating efficiency. There’s no operating risks. It’s not like, you know, Budweiser, they hire some marketing person that does like a Dylan Mulvaney campaign and crashes their stock or something like that.

There is no stock. There’s no marketing campaign. Right. And so they have the asset today. It’s not built on a hope, it’s not built on a prayer. It’s not a better bond. It’s a completely different kind of fixed income altogether. Remember, bonds hopefully have the money, but also, especially when it comes to government bonds, they cannot pay me enough to keep up with the rate of inflation anyway. So it’s sort of like a bond where it’s. It’s sort of based off of debt, but they have the asset today. I’ll break this down for you. So let’s just take a look at this.

It hasn’t even been out a year yet. So this vehicle that we’re going to highlight, there’s other ones out there. This is called Stretch strc. And you can see when it launched, they had set an IPO target of half a billion dollars, about 500 million. But however, the. The response was so overwhelming, I think it was two or three times oversubscribed. And so the actual launch was in July of last year, so not even a year yet. And yeah, I got about two and a half Billion. So if they projected half a billion, they got two and a half billion.

And then you can see they’ve continued to raise money over time. This sort of shows the, the, the volume, but here is a chart so you can actually see the trajectory. And what you can see since their launch in July of 2025, it’s gone from half a billion to now over 7 billion in not even a year. You can see the amount of demand is just incredible for this. And the reason why is because what stretches is sort of like a replacement for bonds. It’s a, it’s what I would call a cash equivalent. It, it’s meant to hold level like cash.

It’s not an, it’s not a stock. It doesn’t go up in value. I don’t buy it to hope to make money on it. I buy bond. I hope to not lose my capital and want to earn a yield. So it’s more like a money market account. They hold it at a stable peg and they pay me a yield on it. That’s sort of how it works. And we can see, as I said, it has a overwhelming market demand. They called Michael Saylor called this the iPhone moment, meaning we finally released a product. This was the fourth one they released.

We finally had released a product that was a, that was a big hit. The market has validated and told us this is the product that they want. And Michael Saylor has used these examples. I did an interview with him recently. We’ll put a link to it down in the description down below. But he just said, hey, how many people have a bank account? Of course, you know, in America, everybody raised their hand and he said, you know, how many people would like their bank account to pay you 11% instead of 0? And of course everybody raised their hands and it’s sort of like that.

Similar some of the stats on this and sort of the demand and how this works here. So you can just go to the strategy website, you can pull this up for yourself. But we can see right now it’s paying 11 and a half percent yield. That means you put in 100 bucks or a thousand bucks or 10 million bucks or 100 million bucks and you’re getting paid 11 and a half percent yield. I don’t want to go deep into this point. If you want another video, I can. But this is not a return of income, so it’s not taxed as income.

So when you typically get a dividend off of an Apple stock or a at&at&t dividend paying stock or something like that it’s taxed as income. This is not. It’s technically considered a return of capital. Anyway, we do a whole other video on that. Let me know down if you want, if you want that down below. Now, a lot of people think this is super risky. Like, man, this sounds like a Ponzi scheme. How could they afford to pay me? Well, remember, the entire financial system, all of the equities, all of the bonds are based off of a hope and a prayer that they have cash flow in the future.

Talk about a Ponzi hope and a prayer. Here they have the asset. What do I mean? They’re sitting on 2.2 billion of cash, 2.2 billion in cash, and that’s to pay out the dividend. So they have, I think it’s 18 months, a year and a half. They could sit there and make payments for a year and a half without ever doing anything, number one. So you have 18 months to get covered before you see trouble. You want to get your money out. But more importantly, they have the asset. They have the Bitcoin right here. So they have 41 years, 41 years of capital to pay before they hit the wall.

41 years. Not a hope and a prayer. Not I hope AI doesn’t disrupt, disrupt my business. I have 40 years. I can sit there and I can make that payment. Okay, now there’s even a bigger catalyst. There’s a lot of ways that people go out to try to get the yield. As I said, 100 million people in just the developer alone need this. Fixed income. Need this. Everybody wants income, right? Well, there’s other place that we go because we know that the bonds, the government bonds are guaranteed to liquidate, liquidate us away. So private credit has been completely blowing up.

I did a whole video on private credit that explains this and how it might be sitting in your portfolio. Could be dangerous. We’ll link to that down below as well. But we can see that investors are desperate for yields. They’ve been going into these crazy types of investments like private credit. I think it’s about $13 trillion sitting that ready to blow up at any point. And that we can see the capital migration is already happening. Right. They’re leaving treasury bonds that are guaranteed to liquidate them and trying to go to more exotic. They’re going further out, another risk curve to try to earn more yield.

But the problem is that private credit is extremely opaque. I have no idea what’s going on. I have no ideas what they’ve lend money out to. It’s extremely illiquid meaning I can’t just get money in and out of it. Once I put money into it, it’s fixed for a long period of time and I don’t even know what the risks are. I’ll just pull out one blurb from the video I did and you can see that retire, retirees, anyone living on fixed income retirees are the ones exposed. Pension plans have been pouring billions, billions of your pension monies being poured into these private credit funds.

Why? Because those pension funds are trying to get the yield. Because they’re behind on what they owe you, the hope and the prayer. They have the money and they don’t. They’re going into the risk curve to try to get the money. And the participants, that’d be you, your money participants do not choose these complex allocations. You didn’t choose them, your plan administrator did. And the savers rarely see or understand private fund documents. So you didn’t see those documents. If you did see them, you don’t understand them. You just trust your fund administrator and you’re getting the short end of the stick.

We can see here that these private credit funds aren’t returning money. Trapped in private credit, investors wait to pull out. 5 billion blue owl peers push back on private credit risk. Here we have private credit product credit funds face redemption crisis. Everyone’s trying to get their money out, but they can’t give the money out because they’ve loaned it out for long periods of time and they just can’t get the money back. Whereas something like stretch is liquid. It just trades like a stock. I can go to my broker account, buy it today, sell it today. There’s none of that.

And so just this alone, there’s $13 trillion in demand coming for this new type of asset. It’s a brand new asset, digital credit. Now where does all this go? Go? Let’s think about this. Let’s think in second, third, fourth order effects. Where does this go? Well, it starts to pull capital out of the treasury market. The bis, the imf, they told you that you’re guaranteed to be liquidated. Plus we know that the rates have to go up, which means your bonds lose money at the same time. Terrible place to be. Then we can add on the trust and that.

Then they could freeze it and seize it. I’ve already broken all that down for you. Okay, so it starts to pull money out of the treasury market. There’s a feedback loop here. So what happens is when you take, when you issue digital credit, that money goes into digital capital. So the more digital credit they issue, the more digital capital gets purchased, meaning the more money that Microsoft gets into Stretch, the more money that goes into bitcoin. Now what happens is when more money comes into here and here, bitcoin gets bigger and bigger and bigger and bigger.

And what happens is bitcoin becomes less volatile over time. It’s the law of large numbers. The bigger an asset is, the harder it is to move that asset, right? A very small like a penny stock, like enough buying, you could move the market. But like almost no amount of money is going to move like the treasury market, right? So the larger it gets, the less volatile it becomes. And so the irony is what made it too risky for many people, too volatile for many people, what made it too volatile for many people actually solves it. It’s interesting.

And that’s why I’m saying bitcoin isn’t replacing gold. That’s the small number. That’s $30 trillion. It’s big, but it’s small. That debate was always too small. It was never coming for just gold. It’s replacing the 345 trillion fixed income market. Not with another promise, not with a hope, cross my fingers, but with property. Property it’s holding right now, today. If you want to know more about this, watch those other videos. We’ll link to them down in the, in the show notes down below in the description. I’ll link to one right here. That’s probably the next one you should go watch.

And that’s what I got. All right, to your success. I’m out.
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