Bitcoin Is In a CLASS OF ITS OWN — The Data Is Shocking

0:00Hello, everyone. We've got a lot to discuss today. The latest inflation report proves that tariffs are not inflationary, we have hard data to now show that Bitcoin is in a class of its own, the incoming AI future is going to be absolutely wild, and the US dollar is still king in a major way. We're live today from the desk of Anthony Pompliano.

0:27Alright, it's time for some real talk. Everyone I know promised that inflation was going to come roaring back after the tariffs were put in place. But of course, that hasn't happened. Instead, we continue to see CPI at depressed levels to just a few months ago. Truflation, which is an important alternative real-time inflation metric, that currently has inflation sitting at 1.8%. It's a narrative violation if I've ever seen one. Now, this is down significantly from the 3 % reading that Truflation was showing in January of this year. Today's CPI report is gonna get twisted a million ways. You can hear all kinds of different opinions.

1:00Month over month core CPI, that's lower than expected. Year over year CPI metric, that came in higher than expected. But guess what? None of the government's data matters though. No, seriously, stop listening to the nonsense. The government's CPI data is completely flawed. The way they gather data, the way they calculate the inflation metric, and then the timing of their data release, it sets up anyone for failure who's looking at it. Remember, the government's using decades old methodologies. They send physical humans into grocery stores with tablets. They call people and say, what do you think you could rent your home for?

1:31And they want to tell us what happened months ago, rather than using modern techniques of real-time data to tell us what's actually happening right now. That's why I personally prefer Truflation over the BLS data. And Truflation is telling us that inflation has been crashing, not increasing. We were promised that tariffs were going to be highly inflationary, but that didn't happen. In fact, the opposite happened, that inflation fell, because as I've been screaming from the mountaintop for weeks and weeks and weeks, tariffs are deflationary. They're not inflationary. So stop listening to all the economists.

2:01They don't know how the real world works. They're simply academics. They told you the world was ending. That didn't happen. They told you the shelves would be empty. That didn't happen. And they promised that inflation was going to explode higher. But that didn't happen either. Now they're telling you that inflation from tariffs may still be a problem. But what they aren't saying is that any inflation that creeps back in the second half of this year, it's going to come from the only place that inflation can actually be created. It's Washington, D.C. through monetary policy. We can't continue to print money and expect inflation not to return.

2:32So I actually expect the inflation number to increase in the second half of the year, but it's not from tariffs. It is all money printing. And as Milton Friedman once said so well, we can only create inflation in Washington. And so now from my perspective, it's on Washington to stop inflation from coming back. Now, most of you probably know this, but Bitcoin's in a class of its own. That was my message during a recent conversation with a friend of mine. This individual was asking me about the difference between Bitcoin and various altcoins. Common question for people to have. After running through the different technical differentiation points, Bitcoin's decentralized, Bitcoin operates on a proof-of-work system, Bitcoin has a finite supply, and Bitcoin has no known founder, it struck me that my friend wasn't actually looking for that.

3:15They were looking for a financial argument. So I did what I do. I dug deep into the Bitcoin data, Ethereum, Solana, over the last couple of days, and here is what I found. First, Bitcoin has dominated the performance of the largest altcoins over the last year. Bitcoin's up 96 % in the last 12 months, while Ethereum is down about 10 % during the same timeframe. One's up, one's down. Solana hasn't fared much better. The sixth largest cryptocurrency is up about 10 % in the last year, which is dwarfed by Bitcoin as well. Another way to think about these three assets is that Bitcoin is hitting a new all-time high almost every day recently.

3:50Ether, well, it's down 38 % from its all-time high in November of 2021. and Solana is down 44 % from its all-time high in January of this year. You could also take a look at Bitcoin dominance for another data point. We watched Bitcoin's dominance fall from 2013, where it was really high, all the way through Q4 of 2022. But in 22, immediately Bitcoin did a U-turn and has seen its dominance rise from a low of 38 % to more than 63 % today. As I mentioned, Bitcoin is in a class of its own. The decentralized digital currency seems to have been intentionally created to serve as a reserve asset for billions of people.

4:26The store of value is doing an excellent job. Opening bells, Phil Rosen pointed out yesterday, the S &P 500 is down 85 % in Bitcoin terms since 2020. 85%. Bitcoin is the new hurdle rate. No other assets are able to keep up over the long run. And this is a big reason why we have seen the crypto fear and greed index go from a low of 15 on April 8th to a high of 70 for this year. We're living through the good times right now and I'm enjoying it. I am sure that we will see bear markets in the future and you should prepare for them. But nothing feels better than holding onto an asset with volatility, especially when your contrarian trade becomes the consensus.

5:02And don't let your friends make the mistake of confusing Bitcoin and any of these other altcoins. Artificial intelligence is going to take over our lives and I'm here for it. We just saw Grok 4, which is now the best AI model coming out of XAI. They were able to be used to build a video game from scratch. Take a look at this thing. This looks like something that you would expect to take hours and hours and hours. Tons of people working on it. But instead, Grok 4, a couple of prompts. Next thing you know, we got a video game that anyone can play. On top of that, Meta just announced their new Prometheus, an AI supercluster that will be large enough to fill the island of Manhattan.

5:40Look at the size of this thing, man. This is what it looks like to have massive CapEx investment into the AI superclusters. Everyone wants compute. Everyone wants hardware. where everyone wants electricity. If you can fill up the island of Manhattan, obviously you think that this is the future of where the world's going. But don't take it just from XAI or Meta. Instead, also listen to Travis Kalanick. Travis built Uber. He smashed through walls and got around all the regulations needed to be able to build a product that a lot of people use on a daily basis. And now Travis, he's focused on building better infrastructure for food with the use of robotics.

6:15Take a listen to what Travis recently said about that use of robotics. Imagine you just order online exactly the kind of bowl you want. And actually, this machine could run like many brands at the same time and does. You build the bowl you want, whatever ingredients. If you look at that bottom, you see those little white bricks at the bottom? That's what carries the bowl underneath dispensers. It fills up. The machine puts it sauces the bulb and it puts a lid on it. It takes the bowl, puts it in a bag, puts utensils in the bag, seals the bag and the bag goes down a conveyor belt where then another machine, what we would call an AGB, takes the bowl to the front of house.

6:59The bowl gets put into a locker. the courier be a door dash who breeds courier will wave their app in front of a camera and it will open up the locker that has the food that they're supposed to pick up so it just it takes out a lot of what we would call the the cost of assembly um which is more reduces mistakes right it's hard for to make a mistake yeah we know exactly how many grams of every ingredient are put in that's exactly what you're supposed to get and so you get a higher quality product, it takes a lot of the cost out. You imagine ultimately, there are going to be couriers with that as well.

7:38I like to say autonomous burritos, like is a Waymo going to carry a burrito? Or is Tesla going to have a machine that carries food? Or is there another company that ends up doing the things, the autonomous delivery of things? And the point is, well, where we are right now is we've got customers. And so those customers are starting to deploy this quarter. And it's pretty interesting. I mean, you can see that in our delivery kitchens, the cost of labor is about 30 % of revenue. That's what the successful guy, let's say 30%, 35 % of revenue. In a brick and mortar restaurants, it's even higher, okay?

8:24When they're running our machine, it's between seven and 10 % of revenue. Pretty cool to see one of our generation's best entrepreneurs talking about robotics in this way. But it's not just for things like food. I also saw a wild video recently. This video is using drones to respond to active shooters in schools. Imagine all of a sudden the police department showing up. They've got drones flying all over the place. They're trying to find the bad guy and neutralize the threat. Now, of course, anytime that you see technology advancing and there are actually positive things that start to get created, you got to immediately ask yourself and say, well, how could this be used for negative, for some sort of evil?

9:01And my guess is that just like technology before it, drones, robotics, AI, machine learning, and all these technologies, we're going to get a lot of good out of them, but it's not going to come without trade-offs. Now, a lot of you hear me talk about Bitcoin and how Bitcoin is on the rise. But one of the things that I've changed my mind on is that the US dollar is also becoming more popular. Yeah, that might be a little mind bender for most of you. So when I first got into Bitcoin, I thought, well, if Bitcoin wins, the dollar's got to lose. That's not what's happened. Completely changed my mind on this.

9:30Bitcoin has been winning. New all-time highs, prove it. But the US dollar continues to be more popular on the global stage than ever before. Adam Kubisi shows that the US dollar share of global payments is now at 48%. It's the highest in 13 years, according to the SWIFT data. He says that this percentage is twice as large as the euro and 16 times higher than the Chinese one. The US dollar is involved in 88 % of all foreign exchange transactions globally, making it the most liquid and accessible currency in the world. So next time someone tells you the dollar's dying or all of a sudden the dollar's not going to be popular, just remember that the US dollar is the best thing that most people in the world have access to and they want to use it.

10:08They want to use it for bilateral trade. They want to use it for foreign currency. They want to use it to actually store value compared to their local native currency. And so Bitcoin is going to keep winning, but the dollar's doing just fine. I actually think it's all the weak fiat currencies, all the things that aren't Bitcoin or dollars. Those are the things they're going to lose moving into the future. So remember, the US dollar is still king of all the fiat currencies. And I don't think that's going to change anytime soon. That's it for today's show. I hope you guys are enjoying this. I'm having a blast putting it together.

10:34I really appreciate every single one of you watching this every day, telling your friends about it, following us on X. And also, please, please, please make sure that you're subscribed on YouTube. That's it for today. And I will see you guys live from the desk of Anthony Pompliano tomorrow.