The New World Order Is Being Built On Gold, NOT DOLLARS

0:00Hello, everyone. We've got a lot to discuss today. Central banks can't stop buying gold. Stable coins are becoming the hottest product on Wall Street, and prediction markets are infiltrating sports betting apps. And one of the CEOs that's driving this change is here to explain it all to us. We're live today from the desk of Anthony Pompliano.

0:26Before we get into today's episode, We have 20 ,373 followers on YouTube. We're making progress, but my goal is 1 million, and I need your help to get there. Make sure you hit that subscribe button right now, and let's get into it today. All right, there's a seismic shift underway in how countries think about preserving their economic value for the long term. It's imperative that you understand what's happening right now, because the ramifications are going to touch every asset class, every market, and every investor over time. Let me explain what's happening here. The story is best seen through the explosion of adoption related to gold as a reserve asset for foreign governments.

1:01Adam Kobisi, one of my favorite macro with mines, he writes that gold is replacing fiat currencies as a reserve currency. Gold's share of global international reserves rose 3 percentage points in Q1 of 2025. It's 24 % now. It's the highest in 30 years. Now, this marks the third consecutive annual increase. Meanwhile, the U.S. dollar share declined 2 percentage points to 42%. It's the lowest since the mid-1990s. Gold is now the world's second largest reserve asset after surpassing the euro in 2024. Gold is seeing historic levels of demand. Now, it's also important to understand that fiat currencies, they don't fluctuate in price.

1:37$1 equals$1. And gold's price is different. It can appreciate. My friend Val Kataya, he responded to Adam saying that this is based on value. As gold's price goes up, it will naturally be a higher percentage of global reserves since other currencies do not appreciate in value generally. Speaking of gold's price, it's up nearly 70 % since the start of 2024. 70! It's an epic run for an asset that historically has had much more stability. But even with Val's volatility caveat, the significant increase in gold adoption can't be ignored. So the market is obviously trying to tell us something. What exactly is it saying?

2:11Well, I asked Sylvia, the AI CFO that our team built, to explain why gold has been rallying over the last 18 months. Here's what Sylvia told me. Gold has essentially experienced a perfect storm of supportive conditions. institutional demand, inflation concerns, geopolitical risks, and favorable interest rate environments all aligning simultaneously. This combination has pushed gold to historic highs and fundamentally shifted its role from primarily a dollar hedge to a critical reserve asset for uncertain times. So that explains why gold's price is appreciating, but it doesn't explain why central banks maintained record high gold purchases in 2024.

2:47They accounted for over 20 % of global demand, which compares to only about 10 % of demand historically. For that answer, we've got to turn to Porter Stansberry. He writes that this is the end of America, the loss of our currency's world reserve status, and it's the beginning of the end of the world's post-Bretton Woods financial system. Anyone dependent on the government's credit, Porter says, will be destroyed over the next decade. Now, as you all know, I'm not usually someone who is fond of doomsday predicting. I'm an optimist. I think things are going to be pretty good. The demise of America has long been promised, yet it has never come true.

3:21But I don't think Porter is exclusively talking about the demise of our society and our institutions. He's explicitly talking about the loss of the US dollar as the world reserve currency. Now that doesn't seem too crazy, right? The Bitcoiners, they've been yelling about this problem for years. The gold bugs, they've been yelling about it for decades. And now you have central banks and foreign governments. They seem to have come to a similar conclusion. Maybe they aren't yet ready to completely abandon the U.S. dollar. Doesn't seem that way. Remember, the U.S. dollar is still the most popular reserve asset for central banks globally.

3:51But these foreign governments and central banks, they are definitely more open to reducing their allocation percentage than they had been in prior years. Changes upon us. So this brings us to the most important question for you all. What should you do in this scenario? Is there anything that you can do personally? What could you change to protect yourself and possibly benefit? Well, Porter says that to save yourself, you can one, own a great business. Two, you can hold real money like gold and Bitcoin. And three, you can sell the dollar, borrow long-term at fixed rates. Those three ideas seem reasonable to me, and they have been helpful to people throughout history who face similar situations.

4:24So central banks are gobbling up gold. They're losing their dependence on US dollars. And retail investors are buying gold and Bitcoin to leverage sound money properties to protect themselves. But maybe there's something even bigger brewing under the surface, potentially. This video of India's Prime Minister Modi, Russian President Putin, and Chinese President Xi Jinping went viral over the weekend. They're chopping it up like a bunch of schoolboys plotting how to skip class and get an extra recess session in. But this isn't elementary school, and these world leaders could significantly change the global world order if they decided to play nice with each other and if they did it in a highly coordinated fashion.

5:03Investor Kaishap Sriram threw out an interesting perspective. He wrote five years from now when people ask, how did we end up in a multipolar world order? It started with the U.S. policy of attempting to isolate Russia from the EU, doubling down by deglobalizing free trade through tariffs, and attempting to bully India into severing ties with Russia. Honorable mention goes to nationalizing U.S. tech giants, and export controls backfiring by inducing China to develop its own advanced semiconductor tech. I don't agree that all that's happening, but that's what he said. So it doesn't take Albert Einstein to get out a hypothetical calculator and add 1 plus 1 here.

5:38Central banks are looking to gold and other reserve assets at the exact same time that many of the largest countries have their leaders chumming it up with each other. Are we likely to see a multipolar world emerge? Maybe. I don't know what the end result will be. But I do know that a lot of things are changing right now, and it is absolutely essential that you pay attention. And it definitely won't hurt to have sound money assets like Bitcoin and gold in your portfolio. All right, there's brand new information from Binance Research that shows stablecoins are fast becoming one of the hottest products on Wall Street.

6:10Bankers, investors, and companies, they can't seem to get enough of these things. Now, we all think of stablecoins as digital dollars, and we're not wrong for thinking that. They're the bridge that lets money move across the internet instantly, 24-7, without needing a bank in the middle. It's pretty valuable. What's happening right now is that companies are building the next generation of rails. It's the payment networks that carry these digital dollars. It's just like credit card companies built the rails for plastic payments. they did that decades ago, stablecoin rails were aiming to power the next era of digital money.

6:40We need that. One of the big obstacles slowing down stablecoins historically has been that the general rails, like Ethereum or Solana, these general purpose blockchains, they were not purpose-built exclusively for stablecoins. But the market's quickly trying to solve for this problem. Circle just launched ARK, Stripe just introduced Tempo, which according to Binance Research are payments-grade stablecoin rails, And they compete directly with USDT's focused networks like Stable and Plasma, which are all backed by Tether as well. At the same time, new types of stablecoins are catching fire. Take Athena's USDE as one example.

7:15It just became the fastest stablecoin in history to cross$10 billion. It's already at$11.6 billion. It's growing nearly 90 % in a single month. With interest rates still relatively high, people are gravitating to stablecoins that not only move money, but also pay a yield. Just think of how powerful it will be to give access to yield to billions of people who have no access to the simple idea of compound interest today. Quite literally, that is life-changing. So stablecoins, whether they're being used for payments, they're being used as a store of value, or they're being used to capture yield, they're only going to continue increasing in popularity in the coming years.

7:48It is clear that this isn't a niche experiment anymore. Stablecoins have caught the attention of people across the world, and Wall Street is falling over itself to get into the game. All right, guys, today I've got a very special treat for you. We've got Jeremy Levine. He's the founder and CEO of Underdog. And today they're making a big, big announcement. They are the first sports gaming platform to bring prediction markets into their app. Prediction markets are fast becoming one of the most popular products across finance and now sports. And Jeremy's here to explain to us what these are, why they're different than sports gambling, how they work, how these guys make money, and where the world is going.

8:23This is one of those interviews you're going to pay attention to because it will inform you of what's in the future over the next 10 years. Here's my conversation with Jeremy Levine. All right, Jeremy, I thought a great place to start this conversation is prediction markets are now coming to sports. And obviously, sports gambling has become very popular in America. It's been popular internationally for a long time. When people hear prediction markets and sports gambling, many people confuse these two things. Help me understand what is the difference between traditional sports gambling and then what these prediction markets are offering to the user?

8:52Yeah, for sure. Thanks for having me. It's a super exciting moment for us at Underdog and for sports fans in general. Prediction markets allow people to trade event contracts on outcomes. And of course, some of those outcomes are now sports and sports games. So what we're launching today at Underdog in partnership with Crypto.com is the ability for our customers to trade event contracts on games. So if you're in Dallas, for example, now on Underdog, you can select the Cowboys to win the opening game. and beat the Eagles and trade those contracts through our partnership with crypto.com and through their CFTC regulated platform.

9:28Now, the difference would be in a sports gambling app or experience, there's lines and there is the concept of the house, right? It's basically, you're betting against the house, they're setting lines, and therefore many people would say that sports gambling is really in favor of the house because they're able to set that line. Now, what these prediction markets are allowing for is you simply are predicting, will the Cowboys win or will they not? And you're betting against other people in the market. And so it does feel like it evens the playing field a little bit in terms of odds. But then there is this idea of how much you can actually get paid in response to which side of that prediction you'll take.

10:11Is that a fair way to think about this? Yeah. So prediction markets are entirely peer to peer. And so you're trading in a marketplace with others. Now there's going to be market makers in that marketplace as well, but you're not trading primarily against the company, which is the more traditional sports betting model. All right. Now talk about what you guys have done so far at Underdog, right? You guys have gone out and you've acquired users all across the country for fantasy sports. So no sports gambling, no prediction markets initially. But now as these things are being legalized, it seems like you guys have a significant advantage in just rolling out these new products to a user base that you really acquired where there was no regulatory concerns because it was just fantasy sports.

10:50Exactly. Yeah. So our business to date is primarily fantasy sports. We allow customers to pick their favorite players and express their opinions through picking their favorite players. We are just over five years old. We'll do nearly 500 million in revenue this year. I think we might be the fastest growing sports company ever. And a big part of our growth is in the States without sports betting, because in those States, we've got the best way to legally express opinions on sports. Now in those states, we're able to add in team picks to our platform. So our strategy always has been to build the best sports experience we can, acquire customers across the country.

11:26Now that's largely gravitated to the states where there is no sports betting because in sports betting and sports books, there's a lot more markets you can offer. You can always pick teams in there. Fantasy sports, you pick players in Texas, California, Georgia. We've got the biggest customer base of any company that offers any type of sports betting or intends to. And now in those states, we're able to offer our customers teams. You can imagine that's our top requested feature by far, right? Our customers want to pick teams. They want to express their opinions on teams. You can imagine someone living in Dallas might want to say the Cowboys are going to win in a couple of nights.

11:59Now they can on underdog. So super excited about that. Do you think that the prediction markets will overtake kind of the traditional sports gambling? It's going to be really interesting to see where this goes. I mean, prediction markets has been all the craze. I'm sure you've talked about it. Everyone's been talking about it. There's obviously prediction markets on the elections and a lot of cultural moments. But there's one thing we've learned. Prediction markets are going to be about sports. And sports is what we do best at Underdog. And we're really excited to see where this goes and to offer more and more to our customers.

12:31And then when you think through if prediction markets do become the dominant way that people express this view, like what happens to traditional sports books or to Las Vegas in general or any of these kind of traditional gambling type businesses, do they either, you know, kind of adopt prediction markets or are they just screwed and they're going to get disrupted? It's going to be really interesting to see. I mean, today through licensed sports betting, you can offer more markets. There's a lot more you can offer to customers than you can through prediction markets, but prediction markets are moving really fast and are evolving.

13:03So it's going to be really interesting to see where it goes. Got it. And now you said that you guys are going to do somewhere around$500 million in revenue this year. If you look out two, three, four years, how do you think about prediction markets as a percentage of your revenue? Is that something that's going to be 10 %? It'll be kind of a nice business, but not the bulk of the business. Do you think this can become the bulk of your business? Yeah, the honest answer is we don't know yet. We're putting in front of our customers for the first time today. We know it's going to be a massive accelerant of the business.

13:30How we've always thought of it is as states open up for sports betting, we want to be in prime position to capitalize on that moment because because we've already got the customers, they're already an underdog. We get to offer everything in a single app because we build all our own technology, which makes us really unique in the legacy sports gaming space. Now, right now we're launching in 16 states, right? So it's a massive accelerant and we think it's going to be really big, but ultimately our customers are going to tell us what they prefer most. And how is this different for you guys as a business, right?

13:57In terms of sports gambling, there's a pretty well understood kind of, you know, the house, the line, what they're taking when the house wins versus when the better wins. What about in the prediction marks? You just take a percentage of like volume or something else? Yeah. So right now with our partnership with crypto.com, economics are a bit different, but ultimately there's contracts and there's a fee per contract. So that's how it's expressed to the customer. Got it. And does that fee per contract change depending on the state you're in or the game that you're betting on? Is there like variability to it?

14:28Or is it something where it's just, you know, a fixed percent or a fixed amount? Right now it's a fixed fee per contract, but that of course could change. And I think anyone can do it differently. Any operator can do it differently. Yeah. Well, what's fascinating to me here is you can start to predict all kinds of things, right? I mean, just to give prop betting all of a sudden it's like, hey, I want to predict what the coin flip is going to be. I want to predict what the first song is going to be. I want to predict, you know, it doesn't feel that different, but the mechanism of now I'm not betting against the house.

14:58I'm betting against, you know, peers feels like a seismic shift that is happening in an industry that I think people are really excited about. Yeah, we're really excited about the application specifically for sports news and for the offseason, right? The offseason, some of the time we get the most traffic. Right now, one of the things we do at Underdog is we break the fastest player news. So if you follow us versus any single source, you're going to get news from us first over 90 % of the time. So we get a ton of traffic during the offseasons. But there's been no real way to kind of capitalize on that and for fans to really express their opinions on that.

15:29And now with prediction markets, we're really excited that we're going to be able to offer that. So in that scenario, you could do something like, is Micah Parsons going to get traded or not by the end of August? And that could be something that people could go and they could actually express their view on. Same thing could be in terms of whether somebody comes back from an injury, something in terms of personnel at the front office. You could even do things around like who's going to get drafted and what specific, you know, top 10, top five, first round, whatever. Like, I mean, it seems like the possibilities here are endless when you start thinking about it from a prediction market standpoint.

16:03Think about after last night, is Bill Belichick going to last the season at UNC? Is Archman going to win the Heisman? Will it be the number one draft pick, right? Those odds are going to fluctuate in real time. And it really makes sports and sports in general more fun, right? which is the entire thing we're built for is our own mission, make sports more fun. Well, what's fascinating to me is from a news and information standpoint, you know, my brother, Joe, who's obviously very into sports, he's an investor in Underdog, which he reminds me of daily. In terms of using the prediction markets after the Texas game, Arch Manning, his odds in the prediction market went from like 24, 25 % dropped down to like 6%.

16:43Now, of course, these markets are going to overreact in the short term and probably find some equilibrium in the long term, but it didn't seem that crazy compared to the sentiment coming out of that game. And so seeing the fluctuation, the volatility of the prediction market odds actually was a pretty unique piece of information that confirmed what I think a lot of people were feeling coming out of that game. And so it seems like that is going to become just part of what people will incorporate into their daily lives when trying to understand what's happening in the world. Yeah, it creates a whole new dynamic around sports information.

17:15And we know sports fans, because one thing we know about them is they have an insatiable appetite for information about their favorite players, their favorite teams, the things they're passionate about. And this is another form of information and maybe the most accurate form of information. So we think it's going to be something that really becomes a huge part of the zeitgeist and a huge part of sports culture. What are the contracts that you guys are launching? So 16 states, what are the ones that people can go start playing with this week? So right now it's team picks, right? So who's going to win a game?

17:44Who's going to win the kickoff game? Cowboys or the Eagles. But there's absolutely more coming. Yeah, well, as a Giants fan, hopefully both of them could lose. But since Saquon's on the Eagles, we'll go with the Eagles. Where can people find you online or find out more about Underdog? Underdog's easy. Just type in Underdog in the app store and we'll pop right up for you. And for me, it's just Jerry Levine on Twitter or really any of the social platforms. Amazing, man. You've been assaulting this industry for a very long time. And it's cool to see not only that the kind of core product that you built at Underdog Working, but being at the forefront of so much of this, I think that the world is changing so quickly when it comes to sports and gambling and these prediction markets.

18:23And so having one place where people can go and do it all, I think makes a lot of sense. So wish you guys the best of luck. Thank you. Thank you. That's been over 15 years for me in this space now. This is the third company in the space. and I think this is probably the biggest thing we've launched across any of those companies ever. So we're really excited for it. I told you that conversation with Jeremy was going to be pretty eye-opening. Obviously, prediction markets in sports are going to be massive. Now that's it for today's show. Remember, we have 20 ,373 subscribers on YouTube. I need your help to get us to get my goal of 1 million subscribers.

18:54Please make sure you subscribe right now and I'll see you guys live tomorrow from the desk of Anthony Pompliano.