Summary
➡ The key to building generational wealth is not through accumulating money, but by acquiring assets that appreciate in value and provide a steady cash flow. This strategy, used by wealthy families like the Rockefellers and Carnegies, involves buying and holding assets like real estate or Bitcoin, and passing them down through generations. Instead of selling these assets, they can be leveraged with debt to create tax-free income while still appreciating in value. This approach, while complex, can ensure that your hard work benefits future generations.
➡ The text discusses a strategy of investing in Bitcoin and using a small percentage of its value as leverage each year. The author compares debt to fire, useful but dangerous if not handled correctly. They suggest borrowing only 5% of the total Bitcoin value each year, which would provide a significant amount of free cash flow. The author also discusses different methods to predict Bitcoin’s future value, including Metcalfe’s law, venture capital, and inflation, suggesting that Bitcoin could reach a value of 1 million by 2030 and possibly 10 million per Bitcoin if it captures 10% of the store of value market.
➡ The Congressional Budget Office predicts a $20 trillion increase in debt over the next 20 years, which could double the money supply and raise the prices of homes and stocks. This could also affect Bitcoin, potentially increasing its value by at least 30%. Using a model that factors in Bitcoin’s historical growth and future projections, an initial investment of $100,000 could potentially grow to $37 million by 2043, even with periodic drawdowns. This model suggests that Bitcoin could be a viable asset for generating generational wealth.
➡ This video discusses a unique strategy for retirement using Bitcoin, an asset that doesn’t generate regular income. The goal is to build assets that provide ongoing income for you and your children. The video also offers a free book that explains this strategy in detail. Feedback and opinions on the video are encouraged.
Transcript
And I’m going to show you the math behind it. I’m going to show you a tool that I created, which we’ll use to back test this strategy. And then we’re going to forecast this strategy into the future. Now, just in case you’re wondering why you should listen to me, let me introduce myself real quick. My name is Mark Moss. I created this channel to take complex financial subjects like bitcoin and make them easy to understand for everyone. Now, since then, my videos, podcasts and stuff have gone on to receive over 100 million views. I’ve spent the last seven years speaking at the biggest bitcoin conferences in the world.
And I’ve been buying bitcoin since 2015, when it was only $300. And so, believe me when I say that I’ve seen, I’ve heard it all. And no matter where I go, I get asked the same question, which is, mark, at which price will you sell your bitcoin? And I always have the same reply, which is, you don’t understand the game that we’re playing, do you? So before I break down exactly what I mean by that statement, I want to tell you just a real quick story that’s not only just personal to me, but it’s also really the reason behind me making this video today.
Now, about a week ago, I was over at the gym, and I saw one of my good friends, dad, my friend Rich, his dad was there. We. We call him paparich. Now, he mentioned, you know, I watched some of your videos, and I still remember the time we were at the beach and you were sketching out on the ground about bitcoin. And I remember bitcoin was about $16,000 at the time. And I was looking at you like you were crazy, but now I see that you’re not. And we started talking about this, and I asked him if he has bitcoin.
And he talks about how, you know, he’s retired and he doesn’t have a lot of money. He basically has enough money saved up that he hopes that it will last the rest of his life. All right? So think about that. He’s hoping, just like everybody else, go to school, get good grades, save for retirement. He’s hoping what he saved will last him for the rest of his life. And basically, he’ll just spend it and he’ll try to match it perfectly to kind of have, like, no money left by the time he dies. But, like, what if there’s a market crash, like, in 2008, and everyone had to go back to work? What if there’s, like, really high inflation? Which there will be.
And even if he makes it, then he’s got nothing to pass down to his kids, no legacy. Now, the reason I say that you don’t understand the game we’re playing is because we don’t want to save our whole lives with the hope that we’re going to have enough to spend until we die, all right? That’s how you end up in the same position as papa rich. Now, no offense, papa rich, but that method doesn’t take into account market crashes, like I said, or inflation. It’s all fundamentally wrong, okay? The game of money that we’re playing is to turn fiat currency into.
Into assets, not assets into currency. And the ultimate goal in this game is to buy the most scarce, hard trophy assets and continue to add to them, not cash them in. So I buy assets to keep forever and eventually pass them down to my kids and even my grandkids. So how do I do that with bitcoin? Well, let me explain, okay? Now, before I show you the really cool tool that I built, that back tests this strategy as well as projects out where this could take you. And I’m going to give it to you for free.
So you can kind of put in your own assumptions there. Before I get there, let me just tell you the, you know, the behind the scenes, the background of the strategy, and what I call the game of money. And like I said at the beginning, and like I’ve said in this tweet right here, I’ve shown you before, when someone says, when are you going to sell your bitcoin? I say they have no idea the game that we’re playing. In the game of building wealth, certainly wealth is not the single most important part of our life. But in the game of building wealth, you have to understand the game.
Now, I don’t want to go deep into what the game is. I wrote a whole ebook on this. It’s for free. If you want. There’s a link in the description, but in this game, you have to know a couple things. All right? Number one, you don’t know the game because it’s been hidden from you. It’s been hidden from you intentionally, not just taught to you, but it’s been hidden from you. And more importantly, we need to know that the system that we’re in, the game, it’s a debt based game. It’s a debt based monetary system. Now, we can see this in a couple of ways here.
We can see right here like this. I pulled this up on Reddit. Why doesn’t anyone understand? Why doesn’t anyone understand America’s debt based monetary system? The answer is because it’s not taught. Right? So most people don’t even know it’s a debt based monetary system. They don’t even know what that means. And it’s because it’s not been taught. In Canada, I found there is no reserve requirements. Talking about the bank, the system that we’re in. Money is created on demand for loans. Money is created on demand for loans. Remember that. Back to the question, which is, why doesn’t anybody know that we’re in a debt based monetary system? As Henry Ford told us 100 years ago, that if the people of the nation understood the banking and monetary system, there would be a revolution before the morning, not tomorrow, not next week, before the morning.
And so that’s where we’re at. So we are in a debt based monetary system. Okay, now back to everybody’s wrong. Not just traditional finance is wrong. I did a whole video about why boomers in retirement, why they’re having a problem, we’ll go ahead and link that to here, and we’ll link it in the show notes. If you want to watch that video, if you want to understand why the financial system is fundamentally wrong, but back to bitcoin. All these people posting videos just like this, you’ll see them all across YouTube right here. How much bitcoin do you need to retire? How much bitcoin do you need to retire? How much bitcoin do you need to retire? They all just make the same videos, and they’re all based off the exact same fundamental problem.
The exact same fundamental problem, which is our financial system that’s broken. Okay? And so you’ll see like this. This is a YouTube search that pulled it up. They say that you need 2.5 times as much bitcoin as to retire rich than you would have. You need 6.25 bitcoin. You know, all these things, according to another video, you would need 2.63 bitcoin to reach $1 million. See that? This is what’s broken. You need 2.63 to reach $1 million bitcoin. So basically what they’re thinking is just like traditional finance, which is whatever, for the american. For the average American, you need about $1.5 million to retire.
Well, some people need more, some people need less, but they say 1.5 million. So what they’re saying is if you had 2.63 bitcoin, it’ll be worth about a million dollars and you’ll be okay. But that’s completely, again, understanding the entire game that we’re playing. Even one of my friends, pomp, he writes a daily newsletter, which is really good, by the way, but he wrote this in his newsletter and he said that, I hate to break it to the bitcoiners, but if bitcoin is trading at 1 million and you hold one of them, then you don’t have the 1.3 million necessary to retire today.
The 1.3 million will continue to go up in value too, because the dollar is being devalued. So what he’s saying is the same thing. Look, the average person needs 1.3. Most people aren’t going to get that much in bitcoin. And so it’s still the same thing, which is how much bitcoin do I need to retire so that I can spend that money down and it will hopefully last until I die, just like papa. Rich. So that’s the old way. This is what everybody’s got wrong, is what traditional finance has wrong. If you want to understand this from a deep level, like I said, I’ll link a video down below that really breaks this down.
But there’s a better way. Let’s just talk about the better way, okay? The better way that the wealthy build wealth is that they buy wealth. Wealth is measured in goods and services, not currency. Goods and services. Remember, we don’t want money. We don’t. Goods and services. We don’t want the money, the currency, we want the goods and services. So the families that have generational wealth, the ones that you’ve heard about, like the Rockefellers and the Carnegies, they buy assets. They build wealth through assets. And they pass those down to generations. They don’t spend them down to zero before they die, you don’t get generational wealth.
So like Michael Saylor says is you never sell your bitcoin. You buy and you hold assets, you never sell them. You take the currency, you buy assets, then those assets continue to appreciate. They continue to go up in value. And then when I give them to my kids, they hold them and they go up in value. When they go to my grandkids, they hold them, they go up in value. But here’s the key. A lot of people are asking yourself right now, but, Mark, when do I get my money out? What if I want to buy something? And that’s the key.
So what we want is we want assets that can provide us cash flow. And not just cash flow, but cash flow forever. Let’s go back to Papa rich for a second. So if Papa Rich has his savings, let’s call it whatever. Let’s call it a million dollars for round numbers. He has a million dollars, and he’s hoping that he can pull, whatever, 100 grand a year until he dies. But what if he took that million dollars and bought real estate that paid him 100 grand a year? Now, he could continue to pull the hundred grand a year out, and that million dollar balance never goes down.
As a matter of fact, it goes up because the price of the home is going up. Then when he dies, instead of spinning it down to zero, the house goes to his kids, which continues to pay them 100,000 a year and continues to go up in value and goes to their grandkids, and it continues to pay cash flow forever while you hold the asset, and it continues to go up. That’s how you create generational wealth. Sounds pretty easy, right? But you’re saying, mark, mark. But that’s fine for real estate or dividend paying stocks or businesses. I get that.
But bitcoin has no cash flow. So what do we do? How do we make this work with bitcoin? And that’s what I’m going to break down for you right now. Okay? So what we want to do is, remember, in the game of money, we’re in a debt based monetary system. That means money is created through debt. We talk about the federal reserve, you know, printing money, putting ink in the printers and printing the money. That’s not how it works, right? When the banks issue loans, when you take a house, a car or a boat loan, when you take that loan, the money is created into existence through debt.
So what we wanna do is we wanna leverage our assets with debt. I know Dave Ramsey tells you, don’t use debt, pay off your debt. All you guys are sitting here trying to figure how you can pay your house off faster. No, no, no. We want to use debt. Obviously responsible. And I’m gonna show you how. Don’t worry, we’ll break down the math. So we have to understand, we’re in a debt based monetary system. So what we wanna do is we wanna hold the asset. We don’t wanna sell the asset. If I sell the asset, bitcoin, I have to pay tax on that.
I lose a huge chunk of my wealth right off the bat. Then I take whatever’s left over, but I no longer have the asset for the appreciation. Back to the house. Example, I can keep the asset to go up. Now, the other benefit of doing this, by leveraging debt against the asset. Not only do I keep the asset for appreciation, but the income or the money. I take off the asset with debt, tax free. So, option one, I sell the asset, pay a big chunk of tax, and I have a little bit left over to spend.
But I no longer have the asset going up in value. Option number two, leverage it with debt, get tax free income, and keep the asset to go up in value. This is how you create generational wealth. It’s the same thing. You’re already doing the work. Why not just make sure that your hard work lasts for future generations by making this small shift? Now, I know you got a whole bunch of questions about this. It’s a little bit more complex than I make it seem. So let me break this down for you, okay? Now, in order to understand how this works, leveraging bitcoin with debt so I can have generational tax free income, my kids can have it.
My grandkids can have it. We have to look at two things. The past. And we have to look at the future. Okay? So, number one, we want to look at bitcoin’s past. Now, we’re going to go back to about 2010 and till now, 2025, about 15 years. Now, we can see that bitcoin has been the best performing asset. You already know this. We can see the types of returns. It’s been averaging over a 200% compounded annual growth rate. Compounding, that means it adds on to each additional year. Now, what does a 233% compounded annual growth rate actually mean? It means your money is tripling every year.
Imagine that. And it’s the. It’s the triple. The triple. The triple. The. They keep getting bigger, bigger, bigger like a snowball. And so, 233%, that’s been the history. Now, we can see that, of course, you know this and you’re already telling me in your head, but, mark, bitcoin’s so volatile, the price goes up and down. Yes, you’re absolutely right. It’s extremely volatile, which is good and bad. We want volatile for the upside. But then you want to make sure we don’t have too much volatility on the downside. Now, when you measure this volatility, or what we would consider a risk adjusted return, you get what’s called a sharpe ratio.
Now, a sharpe ratio gives you a return based off of the risk or the volatility that you have. And this is a report from Fidelity, I believe, the second largest asset manager in the world. And you can see that the sharpe ratio, which is the risk adjusted return, is about on par with gold. All right, so it’s pretty high. It’s not the highest, but it’s about on par with gold. That’s what you can expect. And what we can see when we look back through bitcoin’s volatility is we typically have like three or four good years and then a bad year.
Then we have like three good years and we have a bad year, three good years and then a bad year. So we have these four year cycles. This is all important to understand the history. I’ll show you back tested results so we can understand the future. Okay, so now let’s take a look at some of these back tests results. Now, by the way, I do just want to let you know, this is a tool that I created. You can have it for free. You can put your own numbers in and see where you would turn out.
If you scan this QR code that’s up on the screen, or we’ll link to it down below, you can download this whole workbook that explains it and get access to the tool. But let’s just take a look at some of the math that I pulled from the tool. Okay, so basically what this is showing right here, we’re going to start at year 2011. The first recorded price was in 2010, but there wasn’t really much trading. It’s really hard to find pricing. So let’s just start at 2011. Now, what we do is we start at January 1, 2011, the price of bitcoin was thirty cents.
Thirty cents. Now let’s say in 2011, year one, I had $5,000 I put into it. Most people didn’t because it was so risky. What the heck is this thing? I’m not going to put 5000. I’ll put 500 maybe. But for the purpose of this back testing results, put 5000 again. You can have this calculator. You can put any number you want in 5000. What that means is that we would had 16,667 bitcoin. Okay. $5,000 gets a 16,000 bitcoin. Now this is back tested. So that year, bitcoin went up by 1100 percent. The next year it went up 270.
The next year it went up 5500. And then the fourth year went down by 76% because bitcoin has all these big crashes. Then it went up 80%. 160, 1250. And then it crashed again. It went up, up, up, and then it crashed again. Okay, so these are actual real historical numbers. Now, what this tells us, if I would have put $5,000 in here, year 120, 2011, and I would have waited till the year five, I would have approximately $3 million in bitcoin. So I started with 5000. I now have 3 million. Now, here’s where we leverage it with debt.
So what we can do is if I would borrow only 5% of my total valuation. You see, what most people get wrong is they don’t understand leverage. They don’t understand debt. They get themselves into too much trouble. I think about debt or leverage like fire. I can use it to heat my home, but it could also burn my house down. Little kids shouldn’t play with fire because they don’t understand how to manage it. And like Dave Ramsey, most adults don’t know how to manage debt either. They shouldn’t play with it. And so most people are like, well, I want to borrow 50% of that money.
And then they get themselves into trouble. The volatility gets them into margin call requirements. They get liquidated. So I don’t advise that. I advise 5%. All right? That means the price of bitcoin would have to drop very, very far, farther than it has in history to get liquidated. All right? So if we take 5%, that’s $156,000. So we have $156,000 of free cash flow. All right? That’s money I can go spend. It’s debt. It’s non taxable. Okay? Now, the next year, bitcoin went up by 80%, which now puts my valuation at 5.6 million. Next year, I borrow 6%.
I have to take some of the money of the 337, pay off the debt from the year before because they’re one year loans. And then I still end up with about $180,000 of free cash flow. The next year, I’m at 5.6. I borrow 3%, I pay off the old. I keep 190 as free cash flow. But the next year, it crashed. Then it went down by 72%. So in order to do that, the next year, I have to increase the amount that I borrow in order to get that amount. And basically, each year, I’m borrowing more to pay off the year before, and I end up with about 150 to 250 of free cash flow each year.
Now, this is back tested results from 2011 through 2024. Okay, now, what we can see here, as you play around with this tool, like I said, we’ll link to it down below. You can get it for free. This gives you the price of bitcoin. So again, price of bitcoin was at today, well, at the beginning of 2024, January 1, we were about 45, $46,000. So this kind of shows you how much free cash flow you could have by borrowing just a little bit of your stack each year and what the price of bitcoin will be. That is back tested.
Now, as we say in investing, past performance is no guarantee of future performance. So let’s take a look at where this future performance could go. No guarantee. Let’s take our best guess. Now, I’m going to give you some assumptions of some very big financial analysts. I’m going to give you my assumptions. I’m going to give you a calculator, and you can put your own assumptions in. How does that work? Again, if you want the calculator, just scan the QR code on the screen, or we’ll link to it down below. Now, the first thing we want to do to project out how much bitcoin we’re actually going to need to retire based off of this model.
Not the save and spend and die with zero model, but in this model, I want to look at bitcoin’s future valuation three ways. Now, I’m not going to spend a lot of time doing this because I have many other videos where I’ve broken it down in depth. So I’m going to go over this very quickly. If you want to get this more in depth again, download the free book. I have links and resources you can dig more into it. So we’re going to look at it three ways. Number one, Metcalfe’s law. Number two, venture capital. And number three, we’re gonna look at through inflation.
Okay, so three ways to identify what bitcoin’s valuation is. So the first one is what we call Metcalfe’s law. Now, fidelity. Again, fidelity is the second largest asset manager. They have been in bitcoin, I believe, since 2014. They put out amazing research on bitcoin and the kind of cryptocurrency space in general. Highly advised. Just google it. Fidelity bitcoin report, as well as in the free resource I have down below. I have their research pretty well expanded. Plus I have links to all of it, if you want to go look at it. But one of the ways they value bitcoin’s future potential is using what they call Metcalfe’s law.
And that means that the more nodes there are on a network, the more they’re worth. If you’re the only one in the world with a telephone, it’s not worth very much. As a matter of fact, since I’m pretty old, my first mobile phone that I had, I was the only one that I knew. I was the first one of anybody I knew that had a mobile phone. So I had no one to call, and I didn’t even really carry it around with me. I just pretty much left it at home. And it wasn’t really valuable to me because not a lot of people had phones back then.
But the more people that get phones, the more valuable they are, which is more people that use bitcoin, the more valuable it becomes. And what. What fidelity has put out is, they say, using these analogs of past market cycles like this, they predict, per fidelity, they predict bitcoin will be 1 million by 20, 31,000,000,000 by 2040. Now, that’s pretty high. It’s a lot higher than my own valuation is, but I do believe in this 1 million by 2030 number. I think this billion by 2040 is pretty high. We’ll come back to that in a minute. But Fidelity says 1 million by 2030.
Let’s hold that number. Now, another way we can look at this is venture capital. So the way venture capitalists look at something is like, if I was in Silicon Valley 15 years ago, they’re pitching me on Uber. I look at it, and I say, well, how much could Uber be worth one day? Well, what are the markets it’s disrupting taxis, limos, vans, et cetera. How much is the total valuation of those markets, and what percentage do I think is reasonable that we could get from those markets? All right, that’s a way that a venture capitalist would approach this.
What markets are we disrupting now? I did a video recently where I broke all this down in depth, and I showed that bitcoin gets to $43 million per bitcoin. I think this is, in, like, 50 years, so much more conservative than what fidelity thinks. If you want to watch that video, we’ll put it right here, or we’ll link to it down below. You can go watch that later if you want the in depth. But let me give you the cliff notes. So, basically, bitcoin is a lot of things. It’s more things than what we know it will be.
But one thing that we do know it is, is it’s a store of value. So we can say it’s disrupting store of value. Assets like gold, cars and collectibles, fine art stocks, real estate, bonds, and money, those are all just things we just store. We save our money in. Okay? If we add all those up, we get to $900 trillion of value. Do you think it’s realistic for bitcoin to get 10% of that, 5% of that, 50% of that? You can decide on your own again, I’ll give you the calculator. You can play with it. But let’s just say that it takes 10% of that.
Now, Goldman Sachs, JP Morgan, they’ve said that bitcoin will overtake gold. I’m just saying it can get 10%. All right? They’re saying it will overtake it. If we did that, that gives us 10%, gives us 200 trillion, which puts bitcoin at $10 million per bitcoin. So if ideally said 1 million, by 2030, here we’re looking at $10 million per bitcoin. If we only get 10% of those. And another way we can look at this is through inflation. So what do I mean by that? The reason why prices go up is because the government won’t stop making money.
They won’t stop printing money. And what we can see right here is the supply of the. Or the growth of the money supply. And I put some trend lines here. So you can see this is the old trajectory that we are on. And then we started going much steeper. And then we started going much steeper. And we started going much steeper. And now we’re, like going, like, straight up. And as the money supply increases, the costs of goods and services go up. So the money supply increased by about 35%. Real estate went up by about 35%.
Stocks went up by about 40 or 50%. So as the money supply increases, the cost of all these assets, like real estate, go up. And so then I would say, well, how much money do we think will be created in the future? Well, we can just turn directly to the government’s own projections. This is from the CBO, Congressional Budget Office. And what they show us is that the amount of debt that we have today ain’t nothing. They expect us to add another $20 trillion of debt in the next 20 years, another $20 trillion of debt, basically doubling.
So if you increase the money supply by that much, then the price of homes goes up that much. The price of the stock market goes up that much. And we can see it in this chart right here. So the money supply went up by about 35%, and the S and P five hundred’s three year return is what, 33%. Do you understand this? So another way we can look at it is, well, how much more will the money supply increase? Well, they already told us 20 trillion. We can see what happened with it before. Put stocks up by 30%.
We know that bitcoin moves up many multiples more than stocks, so we would expect it to go up at least 30%, if not more. Okay, that’s three different ways we can look at it. Now, let’s take a look at the calculator and see what this looks like. And now, again, you can get this calculator and you can play with it on your own. Just so you know, I would only play with the Green Arrows. You don’t want to mess up all the formulas that I have here. But now we’re going to start in year 2024. January 1, 2024, bitcoin was about $43,000 per coin.
And if I started with $100,000 in January of 2024, that would be about 2.3 bitcoins that I have. Okay, now, this year 2024, bitcoin will go about 200%. We haven’t finished the year yet, so we have to kind of wait and see. Based off of the 200% annual compounded growth rate, maybe that’s approximate. We don’t know. All right, then let’s say next year it goes up 150% because we’re in the halving cycle. As most of you know, if you’re following along, most of the growth in the. In this, uh, in this four year cycle should come over the next twelve months or so.
So let’s say we have that, and then we’re probably going to have another big crash. I hate to tell you, but it happens on a four year cycle. We’ll probably have another big drawdown right here. Then we’ll have a couple good years, we’ll have another big drawdown, a couple good years, we’ll. Another big drawdown, couple good years, and another big drawdown. Because of the four year halving cycle that happens. This is what’s been historically. It’s no guarantee will continue, but I think it probably will now, I don’t think that it’s going to continue going up by 200% forever.
As a matter of fact, it’s going to continue to slow down pretty aggressively. But if the money supply continues to increase like the Cebo says it will, and it pushes stocks up at least 30%. And bitcoin moves up multiples of that. Then I think it would be pretty conservative to think that bitcoin would go up at least 30%. Right. So I have it going up by 200%, and then slowing down to 150, then a massive drawdown, then slowing down to about 100%, 100%, 50%, 50%. A big drawdown. And eventually, it’s only going up by 25 or 30% down here, in my opinion.
I think that’s somewhat conservative based off of all of these numbers that we’ve taken a look at. And if we look at where does this put us by 2030? Right here, it puts us at about a million dollars per bitcoin, which is in line with what fidelity predicts, which is in line with sort of what I predict as well. None of us have a crystal ball. You might think I’m out of my mind, and so you can put in whatever valuations you want. But let’s just take a look at this. So, let’s say, hypothetically, you put $100,000 into bitcoin, and it follows this model.
This is very conservative, based off the historical and off of these three forecast looking ways that we looked at it. But you decide. So, $100,000 goes in here, we wait four years, then we have about $750,000 worth of bitcoin. We borrow 10% against our stack, a little bit more than I said in the original model. Now we’re borrowing 10%. That gives us about $75,000 of free cash flow. It goes up. The next year, we have 1.5. We borrow 10% again, gives us enough to pay off the old debt, plus keep another 75,000 of free cash flow.
And on and on and on. This year, it had a big drawdown and went down by 35%. So the next year, I have to borrow 20%, which is a little bit more than I’d like to. It’s a little bit more risk. Again, play with these numbers as you see fit. Now, I got to borrow 20% to pay off the old debt and still get me my 100,000, but then it starts coming back down. And as you can see, I’m never really borrowing more than about 10% of my stack. So I’m keeping my risk low. But there is risk.
But I’m keeping my risk low. Now, again, I don’t have a crystal ball, but assuming that it goes somewhere in line with this, what happens is my $100,000 in the year 2043, Fidelity said it’d be worth a billion dollars. I think that’s crazy. I’m saying that bitcoin would be worth 16 million, a lot less than 4 billion. But assuming that this model in 2043, you would have about $37 million worth of bitcoin. Now, that’s the valuation of the bitcoin, but you would also owe two and a half million dollars. But you owe 2.5 million out of the 30 million that you have.
I think that’s a pretty good deal. And what you’ve done is you’ve continued to hold the bitcoin for this appreciation, and you’ve pulled out free cash flow every year because of inflation. Starting at 75 grand down here last year, you’re at $230,000 of free cash flow, never drawing down on your bitcoin stack, but still having all the money that you need to live. And then, of course, your kids can hold the. What do we have? 2.3 bitcoin. Your kids get the 2.3 bitcoin, your grandkids get the 2.3 bitcoin, and on and on and on. This is what we call generational wealth.
Now, I pulled this data again from historical data that shows you the three plus one cycle that we’re in now. Again, I don’t have a crystal ball, and as they say, past performance is no guarantee of the future. But that’s kind of what I think. And you can play with the numbers yourself. Now, I know this brings up a ton of questions. I can already hear them because I’ve talked about the subject quite a bit. Like, for example, hey, Mark, where do I get these loans? Well, there was a video just recently of Michael Saylor explaining that he believes in the future, all the financial institutions and banks will be offering bitcoin based loans.
Let’s play a clip from that. I mean, anybody wanting a mortgage or wanting a credit card or a home loan, they would normally go to a mega mega bank anyway. And the problem in the market is those banks haven’t. They haven’t custody bitcoin. And because they don’t custody it, it’s not part of the collateral package. And there are a lot of reasons why they haven’t or they couldn’t. But as soon as they can, I actually think the rest of the credit issues become very straightforward. And you’ll find a bank will give you either that margin loan in lieu of Apple or Microsoft stock, or sometimes they’ll give you a mortgage and they’ll say, post some other assets, security against the mortgage and you end up posting some securities and you get, you get a 30 year mortgage with some securities posted to get it going.
And they may just take bitcoin as that security to top up your mortgage. Okay? So right now, today, there’s two or three places you can get these loans. But in the future, I said to wait five years. In five years, as Michael Saylor believes, and I probably agree, most of the financial institutions and banks will offer loans because they give loans on your stocks and your equities and your assets anyway. I can get loans against my car as an asset, my house as an asset, my stocks as an asset, and yes, my bitcoin. Probably a lot of questions about what are the risks? Mark, this is super risky.
All these people got loans from Celsius and Blockfi and they got the rug pulled. Well, there’s a lot of ways to mitigate that. There’s a lot of ways we can offset that risk. What if your numbers are off? Well, again, make your own assumptions. Use the calculator you see fit. What about inflation? How does that affect it? And what if the government makes this all illegal? Now these are a lot of questions. This video has already gone long, but I’d happy to make any additional videos on this. If you want to leave me a comment down below, let me know which ones of these you want.
And most of these questions are all answered in this book. Retire off a bitcoin tax free. It’s completely free. My gift to you. You can download it. There’s a link down below. All right. Now, hopefully this video one changed your entire assumption of how the monetary system work, and more specifically, the adage of save for retirement. Forget that the goal is to build assets that provide cash flow, that pay me until I die and let my kids continue to own those assets that continue to pay them. What I’ve shown you is a unique strategy of how to actually use that billionaire strategy and apply it to bitcoin, an asset with no cash flow.
Hopefully this makes sense to you, but I’d love to hear what you think. Leave me a comment down below and let me know what you think. Of course, as always, if you like the video, give me a thumbs up. And if you don’t, give me a thumbs down, that’s okay. But at least tell me why in the comments down below. And that’s what I got. All right, to your success. I’m out.
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See more of Mark Moss on their Public Channel and the MPN Mark Moss channel.
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