 Good day, fellow investors. Now let me start by answering the question. Can Bitcoin go to 100,000? Yes. Can Bitcoin go to zero? Yes. So I won't take sides. I just want to present an objective, economic, professional assessment of what the Bitcoin is. We'll discuss whether the Bitcoin is a currency. Can it be valued? Can it be priced? And what are the main issues related to a currency such like a Bitcoin? Trust in authority, acceptance in transactions, and the actual possibility that the Bitcoin emerges as a real future currency. So we'll discuss that. I'll keep myself objective. I'm not invested in the Bitcoin. No plans to do so. So I want to deliver just an interesting objective assessment of what the Bitcoin is. Let's start with seeing if the Bitcoin is a currency. Well, it is accepted in transactions, at least some. It can be exchanged for the dollar. And the current market capitalization of the Bitcoin, now that it has passed 4,000 dollars per coin, is 66 billion. So all Bitcoin owners could buy a company like Tesla and they would still have some change left over to have fun and buy a big boat. So Bitcoin is certainly a significant player in the financial world now, bigger than Tesla. So it's very interesting. Is it a currency? We can definitely say yes. You can trade it, you can buy things with it, you can exchange it for dollars. So it can be considered a currency. So that's a yes. Just a funny fact, up to the 20th century, cowrie shells were also used as a currency. So many things can be a currency and therefore also the Bitcoin is a currency in its own form. Doesn't have to be all paper money issued by a central bank. Now the second question was, can the Bitcoin be valued? So some assets can have a value. It's not a cash producing asset and as it is a currency, it cannot be valued. It doesn't have intrinsic value. The only value it has is the trust that the people that own it use it, put in it. So if you hear analysis where the Bitcoin is valued, those are bullshit. You cannot value a currency. All you can do with the currency is price it. So pricing in where you compare that currency with other currencies and the price of one currency depends on the supply and demand of that currency in relation to other currencies. The price of the Bitcoin, be it in dollars, be it in other currencies will depend on the demand and supply of the Bitcoin. We already know that supply is pretty stable. You know exactly how many Bitcoins there will be up to 2141 or something. So the supply is there and now, especially in the last few months, the demand has surged for the Bitcoin. It became interesting. More and more people are buying. More exchanges are there. You can buy it in small small pieces of Bitcoin. So it became very interesting and the demand is definitely there and it's much higher than the supply and that's why you see the surge in prices. Where will the Bitcoin go? It all depends on demand and supply. As long as more people buy it, as long as more people want to go into the game, the Bitcoin can surge to 10,000, 20,000, 100,000. It's all demand and supply. As soon as nobody wants to buy the Bitcoin anymore because something happens and the people that own it now start selling it, it can go to zero as fast as it went to 4,000. So whether you own it or think about owning the Bitcoin, you need to know these two scenarios. You need to understand them. It's a currency, so it's demand and supply. So practically by owning a Bitcoin, you are a currency trader. That's it. You own a currency, you change one for the other, so you trade currencies with the hope of making a profit. So the first thing for pricing is demand and supply. Derivatives of that are the trust and the issuing authority. As long as the people creating the demand have the trust and holding the Bitcoin have the trust in the issuing authority, which in this case is a software, then the Bitcoin will remain as it is and probably demand will grow. So to compare it to a normal currency, you have here a software and here we have a central bank, where 80 year olds decide the monetary policies. So I must say I'm pretty convinced about the software in relation to a central bank, which is better. 80 year olds, a software, it's really difficult to make the decision. As I said, I won't take sides, but I understand the story of the Bitcoin. Just a quick look at the Bitcoin price. It's really not related to inflation. So the first premise of the Bitcoin to cover for inflation and go against central bank money printing is really out of the question now because the Bitcoin has surged much faster than inflation. We practically have no inflation. So that's another interesting perspective to look at the Bitcoin from. The second thing we have to look in a currency to determine the supply-demand puzzle is the acceptance in transactions. Bitcoin is accepted in transactions, but those entities that accept the Bitcoin are really not something that you can go around and enjoy your holiday or buy your bike or something like that with Bitcoins. For example, we have WordPress, okay, Microsoft, Xbox, Windows Store, high technology stocks, but then a pub in London, pub in Sydney, a diner in Tokyo, and other different vendors that are not really essential for the most people on this world. What's also very important to see is that as Bitcoin prices surged, the number of transactions went down, which means that those who owned Bitcoin now and who created the demand that made its surge are in it for the currency speculation. They are speculating that the Bitcoin prices will rise, rise and rise and they are not in for the transactional value of the Bitcoin. So now where the Bitcoin is, it's a pure currency speculation. And this currency speculation is exerperated by the fact that there are many, many new Bitcoins and cryptocurrencies out there. I think we already passed 1000 cryptocurrencies where everybody is trying to take a piece, get a piece of the speculative action. So if invested, if thinking about investment, be sure to understand the speculative perspective of the Bitcoin. As I said, it can go anywhere. As for the security we already mentioned, the software, there is no rate of return on the Bitcoin. So it's something like gold. Okay, perhaps in the future, you will be able to borrow to lend Bitcoins and there will be an interest rate on them if it stabilizes. The storage is, again, with the software, the conversion is pretty easy as you can trade it on. Bitcoin exchanges for money and things like that. So it's a very, very interesting currency. I definitely think that blockchain technology is here to stay, but who will win and what form it will take in the future? Nobody can know. It's like the internet in the 1990s. Nobody knew who will be the winner. The same for Bitcoin now. Nobody knows what kind of Bitcoin and what will be in the future, what will be the descriptor. Technology involves so fast that we'll have to see what happens. So don't think that the Bitcoin is here to stay forever. So to conclude, those guys that asked me two, three years ago about the Bitcoin that invested in the Bitcoin are now really sitting on a nice spot of money. So I congratulate them. People who want to invest now in Bitcoin can have the same success, but can also lose everything. And this is the same situation that those who bought Bitcoin two years ago were in. They could lose everything and have a huge upside. So nothing has changed then. The only issue with the Bitcoin is that the speculation, the high volatility makes it an unwanted transactional currency. So the speculation, the volatility of the Bitcoin doesn't make it a real currency that you can go and buy your groceries with, because you want a stable currency. And that's the job of central banks to skip the currency as stable as possible, because it's necessary for a good working economy. And it's necessary that what you have in your wallet, you know that tomorrow you can use it. That's the central principle of trust. So this leads to Bitcoin being a really speculative currency, not so much a transactional. So the current speculation might ruin the future for Bitcoin. Even if the price went up, a stability line would make it a significant player in the transactional environment. So it will be very interesting to see how it develops. Let me know in your comments what you think. Are you invested? Are you afraid of losing your money or are you sure that you will make much more money? Click like if you like the content. Don't forget to subscribe if you haven't yet. We discuss investments. We show what are the best risk reward investments in the current environment. Thank you for watching and I'll see you in the next video.