- 19 hours ago
In this Flash X Space on Tuesday, 7 October 2025, Stefan Molyneux explores Bitcoin’s recent rise to $126,000, discussing trading strategies, market corrections, and institutional ETF interest. He analyzes macroeconomic influences on Bitcoin's appeal and suggest a rebound to $130,000-$135,000 may be possible. The episode invites listener engagement, blending humor with insightful market analysis for both crypto veterans and newcomers.
SUBSCRIBE TO ME ON X! https://x.com/StefanMolyneux
Follow me on Youtube! https://www.youtube.com/@freedomain1
GET MY NEW BOOK 'PEACEFUL PARENTING', THE INTERACTIVE PEACEFUL PARENTING AI, AND THE FULL AUDIOBOOK!
https://peacefulparenting.com/
Join the PREMIUM philosophy community on the web for free!
Subscribers get 12 HOURS on the "Truth About the French Revolution," multiple interactive multi-lingual philosophy AIs trained on thousands of hours of my material - as well as AIs for Real-Time Relationships, Bitcoin, Peaceful Parenting, and Call-In Shows!
You also receive private livestreams, HUNDREDS of exclusive premium shows, early release podcasts, the 22 Part History of Philosophers series and much more!
See you soon!
https://freedomain.locals.com/support/promo/UPB2025
SUBSCRIBE TO ME ON X! https://x.com/StefanMolyneux
Follow me on Youtube! https://www.youtube.com/@freedomain1
GET MY NEW BOOK 'PEACEFUL PARENTING', THE INTERACTIVE PEACEFUL PARENTING AI, AND THE FULL AUDIOBOOK!
https://peacefulparenting.com/
Join the PREMIUM philosophy community on the web for free!
Subscribers get 12 HOURS on the "Truth About the French Revolution," multiple interactive multi-lingual philosophy AIs trained on thousands of hours of my material - as well as AIs for Real-Time Relationships, Bitcoin, Peaceful Parenting, and Call-In Shows!
You also receive private livestreams, HUNDREDS of exclusive premium shows, early release podcasts, the 22 Part History of Philosophers series and much more!
See you soon!
https://freedomain.locals.com/support/promo/UPB2025
Category
📚
LearningTranscript
00:00Hello, my friends, to the show that never ends.
00:04We are talking Tuesday, the 7th of October, that's 2025.
00:11And let me just tell you, James, the intrepid soul with whom I wrangle to bring philosophy
00:19to the world, James gave me a presentation yesterday, which was about Bitcoin's all time
00:27high.
00:27Now, I don't mean to blame James.
00:30Obviously, I like to, I want to, because otherwise, I mean, what's the alternative?
00:34I mean, take responsibility myself?
00:35No, no, no, no.
00:36That's something I talk about.
00:37I mean, you don't really want to do it, right?
00:40So anyway, we're going to do a show this morning.
00:44I didn't get to it last in the night because what was the reason last night?
00:48I did something, something to do with the show.
00:50Oh, yeah, that's right.
00:51I did a call-in show.
00:52All right.
00:52So I was going to do it last night.
00:54I was thinking, oh, what's the problem?
00:56You know, hit an all-time high yesterday afternoon, itty-bitty diddy coins.
01:00And then I'm like, that's not biggie.
01:02I'll just do it in the morning, you know, because what does eight hours mean in the land
01:09of Bitcoin?
01:10Well, let me tell you, it means quite a bit because, as I'm sure you are aware, if you
01:15follow this stuff at all, and again, not blaming James specifically, just more generically.
01:22It's James, but with a G, you know, like Gemma or Gem or Junja.
01:28So this morning, I was like, oh, I think I'll just boot up and see what Bitcoin's at.
01:35And there was a smoking Arizona cradle where the all-time high had been.
01:39And so it was, in fact, time to revise the presentation.
01:44And so thanks again to James for doing that while I naturally lounged in a hammock and
01:50picked up my toenails with a toothpick.
01:52All right, so it was, in fact, 3 p.m. Eastern Standard Time, Monday, 6 October, Bitcoin hit
02:01a new all-time high.
02:04Sorry, I'm just going to make sure I block James in case he wants to come in and set the
02:07record straight.
02:08Okay, good.
02:09So it was $126,000.
02:12These are U.S. dollars around 3 p.m.
02:15And then this afternoon, it dipped to $121,403.
02:23Now, I'll give you my little mental tip.
02:26Here's my little mental tip, just so you know.
02:29You might find this helpful, too.
02:31So my mental tip is, let's say Bitcoin is at $100,000, right?
02:38Last time you checked it was at $100,000.
02:40Now, don't obsessively check it.
02:42Don't obsessively check it, unless, of course, you're right about to sell.
02:45But what you want to do is you want to be happy at the price.
02:50So if it's at $100,000, I check and I say, oh, I bet you it's going to be $95,000.
02:55Now, let's say I think it's going to be $95,000 and it's $98,000.
03:00I'm happy.
03:00I'm up three from my guess.
03:03Whereas if you say, oh, I bet you it's $105,000 and it's $98,000, oh, seven large gap.
03:09It will crush your heart like a walnut under the heel of a well-heeled brontosaurus.
03:17So, and listen, I'm happy to take your questions and comments.
03:20Bitcoin preferred, not absolutely essential, but that's the key thing.
03:24That's the key thing.
03:25So we're getting the coin.
03:28We're getting the prices from coinmarketcap.com.
03:30Let me screw my courage to the sticking place here and see what are we at at the moment.
03:37Oh, I have to do it in U.S. dollars out of love for my delightful American friends.
03:43All right.
03:43What are we at?
03:45122, 177.
03:48This is 535 p.m.
03:50So, not bad.
03:54Not bad.
03:55So, yeah, when it dipped down to 121, 403, it's recovered.
04:00And you know what?
04:02I have the weird, it's kind of a weird coincidence of things.
04:06You know, you think you came here to hear about Bitcoin?
04:09Oh, no.
04:10Let's go over my resume for the 10,000th time over the last 20 years.
04:14But just so you know, like I've studied a lot of economics, both in grad school and also
04:18I've read a lot of Austrian economics in my teens and 20s.
04:21And I was involved in taking a company public not once but twice in the same way that if
04:30you have a really bad meal, you get to taste it not once but twice.
04:33And I also was a programmer at a stock trading company and learned a little bit about how
04:40computer code works with stocks, bonds, ETFs, investments, assets as a whole, right?
04:47And of course, in this case, we're talking Bitcoin.
04:50Bitcoin now, for those of who've been around when it's crashed from like 20,000 plus down
04:56to seven or 8,000, that is almost certain to never happen again.
05:00In my humble opinion, right?
05:01I'm not an expert.
05:03I'm not licensed.
05:05I'm only licensed to thrill, but I'm not licensed.
05:08And nothing I say is any kind of investment advice.
05:11Make your own decisions.
05:12Do your own research.
05:13Talk to your advisors.
05:14Take their advice, not mine.
05:16But when it's going to dip, then the dip is going to get caught because there are long
05:23and short positions, right?
05:25So you can make money if the stock goes up, obviously.
05:28And you can make money if the stock goes down.
05:32And so most places, because they don't have a whole lot of flexibility in terms of the
05:39money they can lose because they're often leveraged, right?
05:41So what they do is they'll say, okay, I'll bet a hundred bucks that this thing is going
05:47to go up.
05:48I'll bet 80 bucks that it's going to go down.
05:51So if it goes down, you don't lose too much.
05:53If it goes up, you're good.
05:55You just, you know, you get your profits minus the 80 or whatever.
05:57So this is pretty simplified, but my point is that there are a lot of correction mechanisms
06:05built into Bitcoin now because of the institutional adoption after the last year to 18 months.
06:10So when the price falls in the past, when it was like hobbyists and Austrian addict lunatics
06:16like me, when it fell, there was no bottom because there was no institutional coding.
06:22And honestly, like the majority, if I remember rightly, the majority of stocks are bought and
06:25sold on computer code, which is the kind of stuff that I, again, completely fortuitously
06:30happened to be programming for a while in my first professional gig as a COBOL programmer.
06:36But I know, isn't it weird?
06:37Like I do all this programming and yet I can actually talk to people.
06:41It's a strange coincidence of skills.
06:43But anyway, so in the past when it was just hobbyists and, and, and caps and libertarians
06:50and so on, then when the price would fall, there was no institutional long, short complexities
06:54to buoy it back up.
06:56So don't worry.
06:57Don't worry when the price dips, it's going to go back out.
07:01And of course, of course, all you want to do to make yourself happy in the Bitcoin universe,
07:07it's called the zoom out.
07:11So if I look at it over five days, the five days ago, it was 119.
07:15Now it's 122.
07:16It's still up five days, 2%.
07:18That's pretty good.
07:20That's pretty good.
07:21A month ago, we were cooking at 112.
07:23Now we're at 122.
07:24That's 10k up over a month.
07:26Oh, should we do it?
07:27Should we do it?
07:28Let's do it.
07:29Six months ago, what were we at?
07:31We were at 72.
07:35I have 72.
07:36Yeah.
07:3672,000.
07:3872,000.
07:39It's not quite double, but it's pretty close.
07:42It's pretty close.
07:44So that's pretty good.
07:45Oh, let's do it a little further.
07:47A year ago, it was dipping at 60.
07:50So it's doubled in a year.
07:52Five years.
07:53Dun, dun.
07:54Five years.
07:57Well, in 2020, it was, gosh, what were we at?
08:02Sorry.
08:02This is not the best interface, but it was around 10k.
08:04Sorry.
08:05Let's go back here, because it takes me to the bottom, which is the bottom of the y-axis.
08:09So, sorry.
08:10So a year ago, 62 and change.
08:13Six months ago, 76.
08:16And one month ago, we were cooking at 112.
08:20But five years ago, it was 10,000.
08:24And if you want to really, really get excited, I mean, the kind of excitement you don't see
08:30every day, you really want to get excited, you can go out to all, right?
08:37So the five-year growth in Bitcoin, 1,045%, 0.16, because that makes all the difference in
08:44the world.
08:45Year-to-date, like one year, sorry, calendar year back, not year-to-date, calendar year back,
08:4996.31%.
08:50Year-to-date, 30.77%.
08:52Six months, 54.2%.
08:55One month, 9.9%.
08:57Five days, 1.24%.
08:59One day, one day, minus 2.27%.
09:02So you just, you just need to zoom out.
09:06Hopefully, hopefully you're not on your deathbed, because, you know, zooming out when you're on
09:10your deathbed is so tricky, to say the least.
09:13But just remember to zoom out.
09:16So what's going on?
09:17Not investment advice.
09:19Remember that.
09:19Just random, idiot, amateur observations.
09:23All right.
09:24So Bitcoin dropped about 2.3% October 7th, 2025.
09:28That's today.
09:29Trading around 1.217.33 after it hit its ATH.
09:33Oh, see, that's nerd for all-time high.
09:35$126,000 earlier this session set a new all-time high.
09:39The pullback erased some recent gains and brought a crypto market dip of about 1.4%, with altcoins,
09:45patooey, patooey, like XRP and Dogecoin falling 5% to 7%.
09:50All right.
09:51So what's, what's going on?
09:53So this information is based on market data, on-chain activity.
09:57I think that's 50 shades of gray and sentiment from sources like X discussions, which are full of nothing but facts and truth.
10:03All right.
10:05So Bitcoin surged to a record 126, 279, October 6th, driven by strong ETF inflows, the second largest ever recorded.
10:15So the ETF exchange traded funds, these are more institutional buys, ETFs open up Bitcoin to, I hate to say boomers because I'm like, I'm like a hair's whisker away from being one myself, but it opens up Bitcoin to people who just want to throw money at investment advisors and don't want to worry about, you know, wallets and security and TF2FA and stuff like that.
10:39So it is a way for people to get involved in Bitcoin without the technical risk and confusion.
10:44And of course, everyone's heard these stories of like, what is it?
10:46A quarter of Bitcoins have been lost or something like that.
10:49Some guy threw out his computer and spent the next year or two trying to get the government to let him look for it.
10:54And some guy had a flash drive with like 200 grand, no, 200, was it?
10:58Huge number of Bitcoin's value.
11:02And he had like 10 password attempts, couldn't figure it out.
11:04And I think it just, it did that men in black pen to the face thing.
11:09So everyone's heard that kind of stuff.
11:10So in ETF inflows, second largest ever recorded spot demand and derivatives activity and investors are locking in gains.
11:19On-chain data showed over 1600 Bitcoin moved to exchanges in the last day, signaling selling pressure from short-term holders.
11:25So when stuff moves to exchanges, that's good.
11:32That's good.
11:33Open interest in futures compressed from 12.7 billion to 12 billion, reflecting leverage unwinding while hourly RSI cooled to about 36 from overnight levels above 70.
11:43Sorry if this all sounds like faxing to you, but I want to get through to this to get to your questions and comments.
11:48Next, X users described this as a healthy retracement or shakeout after 11 green days, with some expecting a retest of supports like 118,000, 120,000.
11:57So you know the old things, paper hands and diamond hands.
12:00Diamond hands are the ones who hold on to Bitcoin, like Charlton Heston and a gun.
12:05And the paper hands fold and sell and portnoy.
12:09Portnoy?
12:10Is that the right phrase?
12:12Paper, paper hands is that.
12:13It's like the weirdest game of rock, paper, scissors known to men.
12:16And so there are lots of people who are into Bitcoin to hold on to it for the sake of saving society from hyperinflation and rescuing the world from the scourges of fiat currency, exploitation, debt, unfunded liabilities and war.
12:31And then there are people who just want to make some coin.
12:34I mean, in general, I prefer the ideologues, but it doesn't really matter because the people who want to make some coin are going to come into the space anyway.
12:41And they are going to take their profits, right?
12:44You make some money, you take your profits.
12:46And you take your profits for a variety of reasons because the ETFs usually aren't just focused, obviously, just on Bitcoin.
12:52So ETFs are not just wrappers, usually just for Bitcoin.
12:54They have a bunch of other stuff in there as well.
12:57And of course, you want to take your profits because if you've ever had an investment advisor, they give you this lovely little piece of paper, more than one usually, which says basically how seasick do you get in market oscillations, right?
13:12So are you willing to risk a lot, high gains, high losses?
13:15Is it moderate?
13:15Is it small?
13:17And so on.
13:17And in general, the closer you get to retirement, my understanding is the more valuable it is or the more sensible it might be to take less and less risk.
13:26So they need their liquidity because if there is a certain band of risk that has exceeded, they need to claw back to stay within that band of risk depending on how many people have checked low risk on their portfolios.
13:42And if there's a bunch of boomers who swarmed into the Bitcoin marketplace as a result of the ETF wrappers, ETF wrappers, good name for a band?
13:51Let me just make a note of that.
13:52All right.
13:53So if the boomers came in, then the boomers usually have low tolerance for risk.
13:57So if the money goes up, they're going to want to sell to stay within that up and down stuff.
14:02Again, this is sort of my obviously foolish understanding of it all.
14:06So this is a standard correction in a bull market.
14:10It's never going to go straight up.
14:12That's that's the reality.
14:14It's never going to go straight up like for week after week.
14:16It's never going to go straight up unless we're in total hyperinflation, Weimar Republic freefall.
14:20But that's the downside is it's never going to go up.
14:24But the upside is it's also never going to fall like it used to because there's going to be a bottom, a cushion, right?
14:29A bounce, right?
14:30Dead cat bounce.
14:31Live Bitcoin bounce.
14:34So a standard correction, recycling liquidity from weak hands to stronger ones, from paper hands to diamond hands.
14:39Historical patterns show such resets often precede resumed uptrends, especially with 99% of supply in profit and no signs of panic selling.
14:46This is wild.
14:47I mean, it's wild to be able to see the whole market through the blockchain.
14:53Like the fact that you can say 99% of supply is in profit.
14:58I mean, that's a whole lot harder to do with stocks a lot of times, but because you can't see necessarily the whole thing.
15:04People could have stuff in their basement.
15:05It's just paper.
15:05So it's pretty wild that you can see that, right?
15:09It sets up for potential higher lows, supporting a push towards 130,000 or more US later in October.
15:17So what have I got here?
15:20Looks Algo said, you know what comes after Bitcoin runs 15%?
15:24Liquidations.
15:25Yeah, it goes up and people take their profits.
15:28I mean, it's how, you know how it is if you gamble.
15:32I don't gamble, except with my reputation.
15:35But if you are around people who gamble, I mean, the only way that you can win is to take your winnings, right?
15:41You make a certain 10%, 20%.
15:42Don't pull a full Dostoevsky and just stay in there until you lose your marriage.
15:46But you got to take your profits.
15:48And that's what people are doing.
15:49Not that I'm saying it's gambling, but I'm just saying that you want to take, people want to take their profits, right?
15:53So the US dollar index broke out technically, gaining against major peers while 10-year treasury yields rose, creating a risk-off environment for assets like Bitcoin.
16:06Bitcoin's recent rally had benefited from US dollar weakness linked to potential US tariffs and rate cuts, but this reversal pressured risk assets, right?
16:15So as the US dollar becomes stronger, then people flee out of safe haven, right, gold, silver, and into other assets and Bitcoin.
16:25Bitcoin is still not considered a core asset.
16:28It is considered to some degree an inflation hedge by a lot of people or a, you know, when the stukas of fiat currency are screaming down, everybody scatters and hides in the basement.
16:42And then when the planes go away, everyone comes back out.
16:45And so when fiat looks shaky, then people will flee to Bitcoin.
16:52If the dollar looks stronger, people will emerge out of their bunkers and buy some bucks.
16:59On X, users noted this as a key macro headwind with some linking it to institutional short selling in related markets like small cap stocks.
17:07So what does this mean when I say the US dollar index broke out technically?
17:11Well, I think it ate a lot of chocolate and got some zits.
17:15It also looks like the US dollar index, which measures the dollar's value against the basket of major currencies, rose to 98.44%, sorry, rose to 98.44%, marking an increase of 0.34% from the previous close of 98.11.
17:28One, it's important to not draw broad conclusions from this, of course, as the US dollar is still 10% weaker year to date, and the larger market did not respond strongly to this signal.
17:38Remember, 40% of all dollars that have ever existed, US dollars were created pandemic and post-pandemic.
17:46So that's, and I had a debate with some guys about MMT theory because I've been hearing about hyperinflation since I first began reading about Austrian economics as a teenager.
17:55Because I was that popular with the girls, because, you know, literally, if I'm Mises, I'm getting hot and bothered just thinking about that guy.
18:04All right.
18:05A stronger dollar historically correlates with Bitcoin pullbacks.
18:08It reduces appeal for dollar-denominated assets and tightens global liquidity.
18:12So if this continues rising, it could stand at the correction beyond lower supports like 115K delaying the bull run.
18:19However, this is counterbalanced by ongoing global stimulus, China and Japan, which could limit the downside.
18:26So Bitcoin hit resistance at a little over 122,000 after the all-time high, forming a potential bearish double-top pattern on some charts,
18:35with RSI signaling overbought conditions post-rally.
18:39Aggregated data shows buyer exhaustion with CBD.
18:42Cumulative volume data, delta, falling due to dominant sell orders, right?
18:46Sell, sell, sell.
18:47Again, a lot of which are automated in order to limit exposure.
18:51This aligns with a Monday reversal pattern after a weekend consolidation as New York traders returned and initiated sales.
18:58Because, again, I mean, you know, you've seen this in a million high-finance dramas, you know?
19:04I've got to be awake for when the market opens in Japan.
19:06And, well, Bitcoin, the market is always open.
19:10The traders still work.
19:11Well, they're, I don't know, seven to seven or whatever nutty stuff they're working with on their blow-and-hookers treadmill.
19:17But it's always open, right?
19:20But there is still going to be dips and ups when the traders boot up to begin with.
19:26So, short-term bearish, says some people, due to potential for extended consolidation or deeper retracement, 217,000 gamma flip zone.
19:36Also, not a bad name for a band.
19:38But bullish longer term as it confirms strong underlying structure.
19:43Analysts note the move index favors bulls.
19:46And a hold above 118 to 120K could lead to fresh highs by mid-October.
19:50So, as goes Bitcoin, so also goeth the AU, the gold.
19:56I know, what was it?
19:58Nobody ever said that Bitcoin was fool's gold, like pyrite.
20:01But that's the stuff when I was looking for gold up north.
20:03Oh, I told you we'd bring up my resume when I was looking for gold up north.
20:06And when you got fool's gold, it was very tragic.
20:09Gold surged past $4,000 an ounce.
20:12It's up 50% year-to-date, driven by central bank purchases and debasement trade sentiment.
20:18Peter Schiff, of course, was, I think, doing the Macarena and some sort of TikTok dance or something to do with, oh, by Gangnam Style.
20:27So, that's fun to watch.
20:30So, what's the impact?
20:31It's kind of mixed.
20:32While Bitcoin and gold often correlate as hedges against inflation, gold's outperformance temporarily drew capital away.
20:36The Bitcoin-to-gold ratio fell from 31.6 ounces per Bitcoin, down from 40 in late 2024.
20:44Early morning on-chain movements included large Bitcoin transfers, possibly seized assets, or whale activity, contributing to the dip.
20:50Yeah, what was the guy?
20:51It was a couple of weeks ago.
20:52Somebody transferred, like, I don't know, half a billion dollars worth of Bitcoin without even a test transfer.
20:57I mean, oh my gosh, I guess they know what they're doing.
21:00So, this overlapped with profit-taking from overheated levels, and some ex-users speculated on liquidity, quote,
21:05sucking events tied to other crypto news.
21:08People, of course, who are in a bunch of different cryptos, we talked about the Doge, and I think it was XRP,
21:16dipped even more so than Bitcoin.
21:19And sometimes, if people are in a bunch of cryptos, those other cryptos go down more,
21:23they have to sell Bitcoin to cover those losses.
21:27So, that's a possibility.
21:29Bitcoin dominance pulled back from 59% resistance to 58.7%,
21:33potentially shifting liquidity to altcoins.
21:36No major panic is evident, as spot ETF flows remain supportive overall.
21:41So, what is the impact of on-chain selling pressure liquidity events?
21:45Eh, bearish in the short term, due to immediate selling pressure and potential for altcoin rotation,
21:50but bullish as it represents a leverage reset without breaking key supports.
21:53That's the aforementioned 115 to 118k.
21:56Anyway, this could attract buyers at lower levels, reinforcing the up trend.
22:01Watch a guru reported at 11.13am Eastern, just in,
22:06160,000 worth of crypto longs liquidated in minutes.
22:11So, that's good.
22:13Binance, breaking from Weimar.x, or at DeFi Weimar, W-I-M-I-R.
22:19I wonder if that's Weimar Republic, probably, right?
22:21It says, Bitcoin is dumping millions of Bitcoin and Ethereum.
22:27Sorry, I, let me, oh no, I can't see it.
22:31I can't see it.
22:32That's me, not you.
22:33Let me just go to, landscape should do it.
22:37Landscape.
22:37There we go.
22:38Bitcoin is dumping millions.
22:40Oh, word, stop repaginating.
22:43Bitcoin is, sorry, Binance is dumping millions of Bitcoin and Ethereum
22:46at all-time highs to liquidate longs.
22:48Classic exchange manipulation.
22:51And almost done.
22:52And then I'll take your questions and comments.
22:54Appreciate you guys for the update.
22:55This is the stuff that's like real throwaway because like nobody's going to care about this
22:58apparently eight minutes after I'm done.
23:00But I think it's important to talk about what's going on.
23:03Broader macro uncertainty and delayed data releases.
23:05So mixed signals from upcoming U.S. consumer price index data, October 10th, and potential
23:11delays in jobs reports added hesitation with ECB's Lagarde dismissing Bitcoin's value, adding
23:18to sentiment drag.
23:19Global factors like U.S. shutdown risks and stimulus in Asia created caution, leading to
23:24a risk-off pause.
23:26Ex-discussions highlight this is a minor setback with optimism for rebound post data.
23:30And I mean, if you've been following all of this stuff, I mean, jobs data, CPI data is
23:34so heavily politically manipulated that, you know, buy the rumor, sell the news.
23:39Nobody can trust any of that stuff anymore.
23:42Uncertainty could prolong the dip if data disappoints, pushing Bitcoin towards 115,000.
23:47However, positive surprises, if there are dovish Fed signals, could flip this bullish very
23:51quickly.
23:52And last but not least, Bitcoin ETFs have seen a combined $4 billion net inflow over the past
23:58seven days.
23:59Monday, ah, I mean, that's just one trading day, saw $1.19 billion alone, right?
24:07So that's pretty wild.
24:09We won't know if the net inflows or outflows for ETS until after today's market closes,
24:13which I guess is now-ish, but we would expect to see some ETF holders taking profits as well.
24:18Overall, this decline seems like a healthy consolidation in an ongoing bull market with
24:22strong fundamentals like ETF inflows and institutional adoption intact.
24:26Analysts project a potential rebound to $130,000 to $135,000 by late October.
24:31If supports hold, they'll watch $118,000 as a key level.
24:35So also, of course, if you've got some Bitcoin, Bitcoins, plural, if you've got a few sats that
24:41are stacked, then you probably have a job or some other source of income.
24:46And so you don't need to take profits in that way.
24:49You don't need to report profits on a quarterly or annualized basis.
24:54You don't have a bunch of people taking out, right?
24:58So if you run a finance company, people have parked their money with you and they will start
25:04taking it out when they retire, right?
25:05You know, the whole 401k thing in Canada, it's called the RSPs, where you put money away
25:10in a tax-reduced circumstance when you're making good coin, and then you take it out and
25:14you're taxed at your income after you retire, which is lower.
25:17And it's a way to try and prop up the retirement market.
25:20And so if you run a finance company, you've got people who constantly need money, right?
25:25They want to sell some stuff so that they can go and travel around Europe because apparently
25:31they just love handing over biometric data to the upper echelons of the EU bureaucracy.
25:39And what was it I saw?
25:40It's like $350 for some people to get into the States these days.
25:43That's something nuts.
25:44Anyway, so when you run a finance company, you've got a much shorter window that you have
25:50to show your profits in.
25:51You have a huge expense, IT, maintenance, you've got office space, usually in pretty
25:58swanky, gold-dusted downtown stuff.
26:02And you've got, you know, high-paid coke addicts that you need to...
26:05I'm just kidding.
26:06It's a cliche, right?
26:07It's a cliche.
26:08But we'll take the cliches once in a while.
26:10But you've got a lot of high-paid salaries.
26:11You've got to pay people their bonuses.
26:13And so you have a burn rate.
26:16A burn rate, of course, in business is how much money you need every month just to keep
26:20the doors open.
26:21And in business, this is the big thing I learned as an entrepreneur.
26:26Cash flow is king.
26:28A lot of businesses, you know, you've got your metronome of every two weeks, you've got to
26:33pay your employees.
26:33Every month, you've got to pay your bills.
26:36You've got to pay your rent and so on.
26:37You need money aside for taxes.
26:39But sometimes big corporations settle 30, 60, 90 days.
26:42Sometimes you have to hassle them if they're having a slow year.
26:45And it doesn't matter if you're going to get paid in two months if you have no money
26:48for payroll right now.
26:49So bridge financing is key, but that stuff can really accumulate and eat you alive.
26:53And in fact, I remember signing very big notes with a personal guarantee to make payroll
26:58sometimes.
26:58So you've just got this constant drawdown of money that you need to liquidate.
27:03And so there's going to be sales.
27:05This is why you take your profits to make sure you have enough money to cover all of your
27:09expenses, if that makes sense.
Recommended
1:25:05
|
Up next
1:35:22
23:53
40:02
59:32
2:15:07
1:14:51
1:19:27
42:33
1:25:08
23:47
1:18:49
43:12
1:38:37
1:46:42
4:52
25:46
2:06:05
1:19:08
2:02:38
1:41:58
1:29:21
56:27
1:40:26
Be the first to comment