Podcast Summary: "Can Bitcoin Reach $1,000,000 In 2 Years? Gary Cardone Says Yes. Here’s Why."

Episode Overview: In this dynamic episode of "The Wolf Of All Streets," host Scott Melker engages in an insightful conversation with renowned entrepreneur and investor Grant Cardone. The discussion centers around the ambitious claim that Bitcoin could soar to $1,000,000 within the next two years. Melker and Cardone delve deep into the factors driving Bitcoin's potential meteoric rise, the role of institutional investments, the risks associated with treasury companies, and the evolving landscape of cryptocurrency within mainstream finance.

1. Bitcoin's Current Trajectory and Potential Surge

Bitcoin's Recent Performance: Scott Melker kicks off the conversation by highlighting Bitcoin's recent performance, noting that after a prolonged period of stability above $100,000, Bitcoin recently achieved a new all-time high. Melker reflects on the anticipation within the crypto community and introduces the pivotal discussion with his friend Gary Cardone (Grant Cardone), emphasizing the significance of this breakout moment.

Grant Cardone's Optimism: Grant Cardone expresses immense confidence in Bitcoin's upward trajectory. At [00:05], he remarks, "You know, we all find creative ways to lose our bitcoin over time," setting the stage for a candid discussion about market dynamics. By [02:32], Cardone states, "Over the next two to four years, we're going to see an exponential move from Bitcoin. I think it's going to break all these models," directly challenging prevailing market sentiments.

2. The Role of Institutional Investments and Treasury Companies

Institutional Influx: Both Melker and Cardone discuss the influx of institutional money into Bitcoin, emphasizing how significant investments from wealthy individuals and corporations are propelling Bitcoin's price. Melker points out, "There's so much money coming in and there's so much money still yet to come in that can't even get access to it," underscoring the untapped potential in institutional adoption.

Treasury Companies Explained: A substantial portion of the conversation revolves around Bitcoin treasury companies. These entities allow large investors to deposit Bitcoin in exchange for shares, which trade at a premium to the underlying asset's net asset value (NAV). Melker expresses skepticism about the sustainability of this model, questioning whether these treasury companies deserve to trade at such high premiums compared to traditional financial institutions like JP Morgan or Goldman Sachs ([14:08]).

Risks and Sustainability: Cardone and Melker acknowledge the profitability of these treasury companies in the short term but caution about the long-term risks. They draw parallels to Initial Coin Offerings (ICOs) from 2017, suggesting that while early investors might benefit, retail investors who buy into the hype-driven treasury company stocks risk significant losses if premiums collapse or if there's a market correction.

3. Entry Strategies and Investment Philosophy

Dollar-Cost Averaging: Melker advocates for a disciplined investment approach, recommending dollar-cost averaging as a strategy to mitigate the risks of market volatility. He advises, "Just start dollar cost averaging. You don't need to think about the price except that this is something that you want to own," emphasizing patience and consistency over market timing.

Avoiding FOMO: Both hosts caution against the fear of missing out (FOMO) that can drive investors to make impulsive decisions. Cardone reflects on missed opportunities in high-return trades, urging listeners to maintain a steady investment strategy rather than chasing quick profits. "Your entry point should just be all the time," Melker advises, highlighting the importance of long-term holding over short-term gains.

4. Regulatory Environment and Political Influence

Government Stance on Crypto: The conversation touches upon the shifting regulatory landscape, particularly the influence of political figures like former President Trump. Melker posits that crypto's rise was partly fueled by political backlash against stringent regulatory actions, stating, "They [the government] are going to do what it's going to do and Bitcoin is a good solution to that."

Implications of Pro-Crypto Policies: Melker highlights how pro-crypto sentiment within the current administration could further legitimize Bitcoin, making it more accessible and integrated into mainstream financial systems. He cites developments like Bitcoin being recognized for mortgage net worth calculations, boosting its legitimacy as an asset class ([31:02]).

5. Technological and Security Considerations

Self-Custody vs. Institutional Custody: Melker discusses the shift from self-custody to institutional custody solutions. He notes that while self-custody requires significant technical understanding and security measures, institutional custody through reputable firms offers enhanced security and insurance, making it more appealing for large-scale investors ([29:30]).

Security Practices: Emphasizing the importance of security, Melker advises listeners to implement robust security protocols for their exchange accounts, such as using encrypted emails and two-factor authentication on separate devices, to safeguard their investments against hacks and scams.

6. Market Dynamics and Future Projections

Potential Market Corrections: Both Melker and Cardone acknowledge the possibility of significant market corrections, drawing attention to historical patterns where assets experience rapid gains followed by sharp downturns. They predict that even if Bitcoin reaches unprecedented highs, retracements to levels like $88,000 could occur, presenting buying opportunities for disciplined investors ([43:06]).

Long-Term Outlook: Despite acknowledging short-term volatility, the hosts maintain a bullish long-term outlook for Bitcoin. They argue that the combination of increasing institutional adoption, favorable regulatory developments, and the inherent scarcity of Bitcoin positions it well for substantial future gains.

7. Personal Experiences and Lessons Learned

Investment Mistakes: Melker shares personal anecdotes about past investment mistakes, such as losing Bitcoin on the Voyager platform due to its failure. He uses these experiences to underscore the importance of simplicity and security in cryptocurrency investing, reinforcing his advice to "Kiss. Keep it simple, stupid."

Strategic Advice: Drawing from their experiences, both hosts advocate for a balanced approach to investing in Bitcoin—embracing its potential while being mindful of the inherent risks. They encourage listeners to focus on fundamental investment principles rather than get swayed by speculative trading or overly complex strategies.

8. Closing Thoughts and Future Engagements

Industry Growth and Employment: Cardone reflects on the burgeoning Bitcoin industry, highlighting the creation of high-paying jobs such as Bitcoin strategy managers and strategic advisors. He envisions a future where the Bitcoin sector becomes a significant employment hub, contributing to the global economy.

Community and Collaboration: The episode concludes with a lighthearted invitation from Cardone to host high-stakes poker games, symbolizing the camaraderie and collaborative spirit within the Bitcoin community. Both hosts express gratitude for their roles in the industry and optimism for Bitcoin's future.

Notable Quotes:

• Grant Cardone [00:00]: "If you got a lot of money and you like to lose, contact me or Melker. We're going to put a game together."

• Scott Melker [02:13]: "But I think anybody who's paying attention has been chomping at the bit to buy as much as they can as fast as they can before it inevitably goes up."

• Grant Cardone [02:32]: "We're going to see an exponential move from Bitcoin. I think it's going to break all these models."

• Scott Melker [04:41]: "At 100,000, with ETFs and legislation and regulation and a pro Bitcoin president, what's your downside? Long term, right?"

• Grant Cardone [12:59]: "That's why I think you need to see the two hundreds. And then you'll have a big old retracement or 250 or 300."

• Scott Melker [25:17]: "Just buy Bitcoin, make sure that you have it well secured and stop trying to beat it."

• Grant Cardone [44:57]: "I could have done."

Conclusion: This episode provides a comprehensive exploration of Bitcoin's potential to reach unprecedented heights within a short timeframe. Through the expertise of Grant Cardone and Scott Melker, listeners gain valuable insights into the interplay between institutional investments, regulatory changes, and personal investment strategies. The discussion serves as both a motivational call to action and a cautionary tale, urging investors to approach Bitcoin with a balanced mindset—embracing its transformative potential while remaining vigilant about the inherent risks.