**The BRUTAL Truth About Crypto No One Tells You — Transcript & Summary | SozAI**
Source: https://sozai.app/transcript/brutal-truth-crypto-no-one-tells/

The video reveals the truth behind Bitcoin sales by a major holder, debunking myths about market impact and explaining Bitcoin's long-term value.

## Key Takeaways

- Selling Bitcoin occasionally is necessary to maintain market confidence and company financial health.
- Bitcoin is positioned as a superior long-term investment compared to traditional assets like the S&P 500.
- Market misconceptions about Bitcoin sales causing crashes are false and have been disproven.
- Long-term holding and strategic selling can sustain dividends and protect equity value.
- Bitcoin investment suits patient investors with a long-term horizon, not those needing quick liquidity.

## What the video covers

- The speaker addresses why their company sold some Bitcoin despite advocating holding it long-term.
- They own 847,000 Bitcoin, second only to Satoshi, and emphasize their commitment to holding Bitcoin.
- Selling Bitcoin was necessary to break market misconceptions that selling would crash Bitcoin and the company.
- The sale demonstrated that Bitcoin can be sold without crashing its price, supporting dividend payments sustainably.
- The company uses Bitcoin sales strategically to maintain stock value and creditworthiness.
- Bitcoin is described as the best long-term capital asset, expected to appreciate 20-30% annually over decades.
- Long-term investors who don’t need liquidity for 4-10 years are ideal Bitcoin buyers.
- Short-term investors or those needing quick returns should avoid Bitcoin due to volatility.
- The speaker advises young investors to consider Bitcoin over traditional stocks for better long-term returns.
- Investing in education and tools like AI subscriptions is recommended before committing significant funds.

## Chapters

1. 00:00 Introduction and Bitcoin Sale Explanation
2. 00:45 Bitcoin as a Long-Term Capital Asset
3. 01:26 Market Misconceptions About Selling Bitcoin
4. 02:01 Proving Bitcoin Sales Don't Crash the Market
5. 02:58 Using Bitcoin Sales to Support Dividends
6. 05:16 Future Bitcoin Sales and Stock Strategy
7. 06:39 Bitcoin's Expected Appreciation and Investment Advice
8. 07:34 Advice for Young Investors and Education

Answers

## Questions about this video

Why did the company sell some Bitcoin after advising people to hold it?

They sold some Bitcoin to break the market misconception that selling would crash Bitcoin and the company, proving that Bitcoin can be sold without negative impact.

Who should invest in Bitcoin according to the video?

Long-term capital investors who do not need access to their money for at least four years, ideally ten, are the best candidates for Bitcoin investment.

What is the expected annual appreciation rate of Bitcoin mentioned?

Bitcoin is expected to appreciate about 30% per year for the next 20 years, then slow to around 20% annually.

## Full Transcript — Download SRT & Markdown

00:00

Speaker A

And the other thing people theorize a lot, and again I did a comment analysis to figure out what people wanted to hear from you, is you sold a bit of Bitcoin.

00:06

Speaker A

You've been asked this a few times. I know you sold a bit of Bitcoin recently after telling a lot of people maybe to hold on to their Bitcoin. People want to know why you sold the Bitcoin.

00:16

Speaker A

Okay. Well, so let's make the first point. The only person that's never sold more Bitcoin than me is Satoshi. Satoshi never sold a million, a million one Bitcoin.

00:32

Speaker A

Our company has 847,000 Bitcoin, and so we bought more and we're holding it more than anybody other than Satoshi, and Satoshi's not active. So we have a reasonable chance of never selling more Bitcoin than Satoshi if we just

00:45

Speaker A

keep at it for the next few years. Um, what I've said is, um, so I should probably show this. This is why there's a kidney.

00:53

Speaker A

You said sell a kidney if you must, but keep the Bitcoin. I have waged a campaign non-stop every day for six years to promote and advocate Bitcoin as a long-term store of value, right?

01:07

Speaker A

And what I would say is if you have money that you don't need for the next four years and your choice is do I invest it in the S&P or a house or a private company or soybeans or money

01:19

Speaker A

markets or debt instruments, I think that Bitcoin is the best, right? I think Bitcoin is digital capital.

01:26

Speaker A

It's going to be the best long-term capital asset. And, you know, so why did you sell the Bitcoin instead of your kidney?

01:34

Speaker A

Yeah. Um, we sold some Bitcoin a few weeks ago because there was a narrative or a belief in the market that our company had become so systemically integrated or important to Bitcoin that we could never sell, and if we sold, Bitcoin would go to

01:52

Speaker A

zero and our stock would go to zero because you own 4% of the total supply of Bitcoin.

01:58

Speaker A

Yeah. Because we own 4%, because we're the biggest buyer. We're the biggest buyer of Bitcoin in the world. So the first sentiment was, well, Bitcoin will never succeed if they don't keep buying.

02:08

Speaker A

And the second sentiment or belief, a misconception, was if we sell, it'll crash Bitcoin and it'll crash the company. And because of that, short sellers and certain people in the market took the position that the $55 billion of Bitcoin

02:25

Speaker A

we own was worth nothing. And so what we had was this ignorant, skeptical notion that all the company's assets were worthless. And because the company's assets were worthless, we wouldn't pay our dividends. And because we wouldn't pay our dividends, the

02:43

Speaker A

credit would go to zero and the equity would go to zero. The company would fail and Bitcoin would fail.

02:48

Speaker A

And we said, well, Bitcoin trades 20 billion a day or more, and we've got 55 billion of it. And if we were 0.01%, 0.01% of the market, we could still meet all of our obligations and it's not going to

03:01

Speaker A

change the price of Bitcoin. But no one believed us. So if you want people to believe that you can do a thing, you have to do the thing. If you told me you could do a backflip right now, but I

03:12

Speaker A

said you can't, at some point you have to do the backflip, right? Especially if I tell you that I'm going to throw you in jail if you can't do a backflip.

03:20

Speaker A

Who told you that? Well, that's exactly what's going on in the market. The market's position was the company is worthless. The stock is going to zero. Bitcoin is going to zero because they can't sell, right?

03:31

Speaker A

So if we want to defend Bitcoin, we have to prove that we can sell it on occasion, right? So what we're doing is we're commercializing the market in digital credit. And if you have a billion dollars of Bitcoin and

03:48

Speaker A

they believe it's worth a billion, you can sell $200 million of credit and then you can grow the business if they believe that. If they don't believe that the Bitcoin is worth anything, you can't, and you sell the 200 million of credit,

04:01

Speaker A

the credit's worthless and the company's worthless. And so we were in a doom loop or the market was in this doom loop.

04:08

Speaker A

This negative, short, I don't know, like a psychosis almost, like hyperventilating, saying that the largest buyer of Bitcoin can't sell it and if they do sell it, Bitcoin will fail. And what we needed to

04:24

Speaker A

do was demonstrate that if we sold Bitcoin, it wouldn't fail. So when we sold the Bitcoin, it was 60, 59,000, and it traded up. And so we broke that misconception. We broke that narrative. It turns out that the break

04:38

Speaker A

even point for us is about 3.2%. So if Bitcoin appreciates 3.2%, we can pay the dividends forever by just selling the Bitcoin. But you can imagine if you're a short seller, you say, "Well, you can't sell the Bitcoin." Haha. Because Bitcoin

04:51

Speaker A

will fail. And so they want to say that the credit is worthless because you won't sell the Bitcoin. So the way to break that cycle is you sell the Bitcoin. Now you can illustrate that the credit is actually good credit. We can

05:04

Speaker A

pay the dividends forever. And now the credit investors, without having to sell more Bitcoin.

05:09

Speaker A

Now the whole point of this was we were selling equity in order to pay the dividend on the credit.

05:16

Speaker A

Yeah. And the short sellers took the position that you're going to sell the equity until the stock goes to zero because you can't sell the Bitcoin.

05:24

Speaker A

Yeah. So how do you actually get, how do you break that? Well, you have to say, well, we can sell the Bitcoin, and you sold enough Bitcoin to pay the dividend. So, we sold enough Bitcoin to pay the dividends to prove that we could

05:36

Speaker A

fund the dividends with Bitcoin, which means we don't have to sell the equity. And if we don't have to sell the equity, then the equity trades at a premium to Bitcoin, trades rationally, and then the credit trades rationally.

05:48

Speaker A

So, it was a benefit to the equity investors and the credit investors to show that you can power the company with Bitcoin.

05:55

Speaker A

Do you intend to sell more? It's not our primary strategy. So if the common stock trades at a premium to the underlying assets, then probably we buy the common stock, but if the common stock ever sells at a

06:11

Speaker A

discount or trades at a discount to the Bitcoin assets, then you sell Bitcoin in order to protect the common stock.

06:18

Speaker A

And where do you think Bitcoin's going in terms of monetary value in terms of one Bitcoin currently? What did you say, is it what, 68,000 or something?

06:24

Speaker A

I think it appreciates about 30% a year for the next 20 years, right? And then it'll slow down to being appreciative about 20% a year. So you think it's the best asset to put your money in, really, irrespective of who

06:39

Speaker A

you are. Another way to say it is I think it outperforms the S&P index by a factor of 1.5 to two.

06:48

Speaker A

Who shouldn't invest in Bitcoin? The right people to invest in Bitcoin are long-term capital investors. So if you have a certain amount of money and you don't need it for the next four years and ideally 10 years, then you

07:02

Speaker A

would take a portion of your capital investment portfolio and buy Bitcoin. And if you believe in it, if you're a Bitcoin maxi, if you spend 100 hours studying it, you'd buy a lot. And if you're not sure, you'd probably

07:16

Speaker A

diversify that portfolio across, you know, some real estate, some equity, some other long-term assets, and some Bitcoin. The people that shouldn't buy it are people that need the money back in 12 weeks. What about like a regular 25-year-old? Um, the one of the questions

07:34

Speaker A

that I saw emerging from some of the interviews you've done is if a normal young person has a few hundred to invest today, why should they bother with Wall Street products like stocks or corporate stocks instead of just buying a real

07:46

Speaker A

Bitcoin and holding it themselves? Yeah, I think if you have money to invest for the long term, you're going to get double the performance from BTC that you would get from like the S&P index. But for that 25-year-old, would

07:59

Speaker A

would it not be smarter for them to spend it on something that's going to help them train their mind? Like you said, if you only have $100, I wouldn't go spend $500,000 on an expensive, you know, university education, but I would

08:13

Speaker A

month on an AI subscription. So, so yeah, you should definitely spend money necessary to get the the super grock or the pro or the professional edition.

08:25

Speaker A

Whether it's, you know, $20 a month or $200, $200 a month is the most I would spend. $20 a month is probably the least I would spend. But look, we're talking about your Netflix subscription at that point. But a after you've done that,

08:41

Speaker A

then you're talking about what you ought to be invested in. I think that uh that you ought to be invested in digital capital because you can take it with you anywhere in the world. If you invest in an Airbnb or real estate, you know,

08:54

Speaker A

you're locked into a certain city. You can't travel with it. It's high maintenance. There's a lot of risk. If you invest in an individual stock, you have a lot of anxiety because they come and they go and you got to pick the

09:05

Speaker A

right stock. And most stocks will fail, but some will succeed. But but it it really is much more challenging.

09:12

Speaker A

I I think really it comes down to if you have a liquid portfolio, you know, are you going to invest in like the S&P index if you're a conventional capital investor? Are you going to invest in Bitcoin if you're a

09:25

Speaker A

digital or, you know, a technology capital investor? Michael, we have a closing tradition where the last guest leaves a question for the next guest not knowing who they're leaving it for. And the question left for you is what is one thing you

09:38

Speaker A

believe that maybe you haven't talked about enough that you think likely 99% of the world don't yet believe.

09:48

Speaker A

If I look at my life and I think about something that's been that's had a real impact on me, it's after I got a full education, you know, uh from college, I I eventually went back and I studied two

10:02

Speaker A

topics on my own. one uh like practical applied statistics all the stuff that Nicholas Taleb wrote like fooled by randomness and skin in the game and the black swan and uh you know how do you know the difference between something

10:17

Speaker A

that's meaningful and something that's just misleading random data that was profoundly valuable to me and I would say you know anybody that hasn't read all of those books probably ought to go read those books and and obsess over

10:33

Speaker A

uh applied statistics. That's the one thing the AI will not be able to do for you when you have to decide whether to cross the street while you're typing on your phone. You know, the AI will not give you a neverending real time stream

10:48

Speaker A

of common sense to tell you you should or should not do that thing. And so I I think that that's really important. And the second thing that I did after I left school and and after a lifetime of

10:59

Speaker A

experience is like I went back and I just read uh the story of civilization by Durant. Every page 11 volumes 14,000 pages. Most of the history that you read in school is the cliff notes. But if you go through the entire thing, and I

11:20

Speaker A

recommend that one just cuz I think it was a pretty well balanced history that covered art and culture and politics and technology and mil it's not just military history, not just political history, but it was, you know, all a

11:34

Speaker A

very synthetic history. When you go back and you read it all as an adult, then it gives you such a profound appreciation for humanity and it gives you so much wisdom. And what you'll find is all these things you think you're

11:50

Speaker A

discovering, they got discovered in like 15th century Russia and then they got rediscovered, you know, like most of these things that people tell you or this is new and profound. Oh, it was new and profound a hundred times in a row or

12:04

Speaker A

a thousand times in a row. It was just the story was told a different way each time.

12:08

Speaker A

Give me an example of a thing that we think is new, but history tells you maybe the fact that currency started getting debased when Nixon went off the gold standard, you know, and what happened in 1971 or whatever. And the

12:22

Speaker A

truth of the matter is that was the point at which the US dollar started weakening at a much more rapid rate. But it turns out that every currency everywhere in history has been debased.

12:35

Speaker A

My point here really is uh I think people think that they that they learn stuff in college, but really it's not too late to go back and relearn math, especially applied statistics. And it's not too late to go

12:50

Speaker A

back and relearn history. And as an adult, you always appreciate those things much better. Yeah. you almost it's like the education is wasted on the youth you know because you don't you don't have the life experiences to appreciate what you're reading but also

13:08

Speaker A

you know they're they're summarizing editing and censoring a lot of the stuff you read and and uh if you just go back and say I'm just going to you know read the entire thing in its entirety and there are a lot of other things you

13:22

Speaker A

could also read full histories of other things but as an adult. Uh I think that that just makes you a better person and makes you a better business person, makes you a better leader. And also it helps you overcome the arrogance of

13:37

Speaker A

thinking, oh, I'm the first guy in human history that ever encountered it. And and what you'll realize is no, you're not. And the empowering part is someone else did and this is how they work their way through the issue. And and that can

13:52

Speaker A

be very inspirational for you. If you love the Diver CEO brand and you watch this channel, please do me a huge favor.

13:58

Speaker A

Become part of the 15% of the viewers on this channel that have hit the subscribe button. It helps us tremendously and the bigger the channel gets, the bigger the guests.

Topics: Bitcoin cryptocurrency long-term investment Bitcoin sale market misconceptions digital capital crypto dividends investment strategy crypto market The Diary Of A CEO

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