Bitcoin Is Already Telling You What Comes Next | Bitcoin Simply

**Dante Coco** (0:00)
In my last episode, I said that I believe that we're in an AI bubble. That's about to burst. And right now, I believe I think I know where the money is going next. Because when a bubble pops, money doesn't just vanish out of thin air, it rotates. In 2000, when the technology bubble burst, it went into housing, and then the housing market crashed. And then it went back into tech stocks. And right now, it's rotating into AI. After the government bailed out the system in 2008, Bitcoin was born. And ever since then, it's been the best barometer of global liquidity and what's about to happen next in the financial system. Today, I'm going to show you the next three stages that I believe we're about to enter after the AI bubble burst. The liquidation phase, the intervention phase, and the rotation phase. Today, I want to tell you what you should do to protect yourself to make sure that you're not forced to sell before the capital rotates back into Bitcoin. This is Dante Coco, Bitcoin Simply. Let's go.
In my last episode, I showed you why artificial intelligence can absolutely change the world. SpaceX can become one of the most important companies ever created. And even still, world-changing companies can be wealth-destroying investments. After the dot-com bubble burst, investors didn't suddenly become responsible adults. Why? Because the Federal Reserve intervened. In 2000, the federal funds rate was 6.5%.
In 2001, 1.8%.
In 2003, it was at 1%.
Money basically became free and the euphoria shifted from tech stocks into real estate. No down payments, adjustable rate mortgages, no documentation loans, cash-out refinances, HELOCs, and the final boss of them all, mortgage-backed securities. People were buying 3 houses when they had the budget to afford half of a house. But the crisis wasn't all bad. It actually produced one of the greatest rants of all time from Rick Santelli.

**SPEAKER_2** (1:49)
Also, we want to get to our task force right now. Rick Santelli and Jason Roney of Sharma Capital are standing by at the CME Group in Chicago. And Rick, have you been listening to this conversation?

**Rick Santelli** (1:58)
Listening to it? I've been just glued to it because Mr. Ross has nailed it.
The government is promoting bad behavior because we certainly don't want to put stimulus forth and give people a whopping 8 or 10 dollars in their check and think that they ought to save it. And in terms of modifications, I'll tell you what, I have an idea. You know, the new administration is big on computers and technology. How about this, president and new administration? Why don't you put up a website to have people vote on the internet as a referendum to see if we really want to subsidize the losers' mortgages or would we like to at least buy cars and buy houses in foreclosure and give them to people that might have a chance to actually prosper down the road and reward people that could carry the water instead of drink the water?

**Patrick Witt** (2:47)
That's a novel idea.

**Joe Kernen** (2:49)
Hey Rick, did you...

**Rick Santelli** (2:50)
What? Who thought of that?

**Joe Kernen** (2:53)
They're like putty in your hands. Did you hear?

**Rick Santelli** (2:56)
No, they're not, Joe. They're not like putty in our hands. This is America. How many of you people want to pay for your neighbor's mortgage that has an extra bathroom and can't pay their bills? Raise their hand.

**Dante Coco** (3:06)
How about we all?

**Rick Santelli** (3:09)
President Obama, are you listening?

**Jordy Visser** (3:11)
How about we all stop paying our mortgage?

**Rick Santelli** (3:13)
It's a moral hazard.

**Joe Kernen** (3:15)
This is like mob rule here. I'm getting scared.

**Jordy Visser** (3:19)
Don't get scared, Joe.

**Rick Santelli** (3:20)
They're already scaring you. You know, Cuba used to have mansions and a relatively decent economy. They moved from the individual to collective. Now they're driving 54 Chevys, maybe the last great car to come out of Detroit.

**Joe Kernen** (3:32)
They're driving them on water too, which is a little strange to watch at times. Hey, Rick, how about the notion that Wilbur pointed out, you can go down to 2% on the mortgage.

**Rick Santelli** (3:43)
You can go down to minus 2%, they can't afford the house.

**Dante Coco** (3:46)
Here's what happens next. Mark my words, when this AI bubble bursts, the Fed is going to have to intervene. The stock market is too systemically important. They're gonna bail out the hyperscalers, they're gonna lower rates, but most importantly, which is why I believe that they're rushing to get this Clarity Act done by July 4th, they're gonna prop up a new entire system and a new entire buyer of debt with the Clarity Act. The banks are gonna be able to create liquidity out of thin air to back these finance projects that are gonna go underwater. And that's why I think that they're in such a rush to pass the Clarity Act by July 4th. Patrick Witt, White House advisor, believes it's gonna get done.