Are You Being Reckless with Your Finances? Multi-Millionaire Patrick Bet-David Urges You to Prioritize Saving Money Over Bitcoin
You’ll see this multimillionaire’s stunning reaction to the lowest saving rate in American history.
Source — Patrick Bet-David YouTube
Patrick Bet-David is the epitome of the American dream.
He’s an Iranian who escaped a war-torn country to a refugee camp in Germany and eventually made it to America with zero money.
His father was a cashier at a .99-cent store, and his Mother was on welfare.
Patrick’s net worth is now estimated to be $200 Million, a staggering rags-to-riches tale.
He now uses his giant platform to be vocal about entrepreneurship and finance. He’s also a massive advocate for Bitcoin.
Patrick says he has a position in Both Bitcoin and Ethereum, but a person wouldn’t call him passionate about it.
It’s simply an investment vehicle for him.
He says that Bitcoin makes sense to him because the decentralisation part gives more power back to people and removes centralised government control over your assets.
Patrick Bet-David:
“The part that makes more sense to me the more and more I think about it is what took place in Ukraine and Russia and what happened in Canada with the truckers.
They (the government) can shut down your checking account if they want to.
They can shut down a lot of stuff.
I also can’t send Gold to my family in Iran if they are going through a tough time.”
Patrick says that the direction of how an exchange of value takes place is changing, and Blockchain is making more sense to the younger audience.
He says no one knows who’s right when disruption and change happen, but there’s a side comfortable with how it’s always been, afraid of change.
They are the people who invest in Gold and equities.
They invest in those things and expect others to do the same because they think the younger generation has no idea what they’re doing.
To them, Bitcoin is a scam.
Patrick Bet-David:
“Those people may be correct, but they also may be wrong.
Then there’s the other side, the younger generation, who say we don’t like how things are done.
They don’t trust the fed.
They would trust Gold if Gold backed their money, but it’s not.
They no longer trust the centralised monetary system and want it to be decentralised.”
Patrick says no one is 100% certain who will be correct, but we must pay attention to what young people are doing.
And granted, some older investors like Charlie Monger have called Bitcoin “Rat Poison.”
Patrick Sees a More Significant Concern Than Bitcoin.
The year-over-year personal saving rate in America saw a drastic increase between 2019 and 2020 but has dropped significantly over the past year.
According to the Bureau of Economic Analysis, Americans spend most of what they earn eating into their savings.
Today’s savings rate is the second lowest on record Ever.
Patrick thinks this is scary for young people with money tied up in digital assets and working a job where there may be layoffs if the economy gets bad.
Patrick Bet-David:
“Do you know how scary that is?
America is the wealthiest country with the 2nd lowest savings rate ever.
Thanks to higher prices and a return to everyday life that has folks travelling and going out again, Americans are spending more and saving less.”
Patrick says that people were sitting on considerable savings, had significant cash positions, and invested in digital assets.
Still, something has to give, with inflation trending higher than wage increases.
He says some real-life scenarios could happen for people with insufficient savings, who had frivolously invested in speculative assets and spent their savings when times were good.
Patrick Bet-David:
“People are not selling a house for what it should be worth because they have some money.
Cash is still available to people.
They are being reckless, not saving money, and thinking that money will be coming regularly.
People have yet to learn when unemployment goes up high next year, and eventually, in the next 6, 9, and 12 months, they’ll tell their partner we need to be realistic and sell the house.
Here’s what the conversation is going to be with the Realtor.
You think you have a million-dollar home when it’s a $790k home at best during a crash.
The Realtor has to sit there like a doctor in front of a patient and say the equivalent of, “if you don’t stop losing weight and eating sweets, you’re going to have a heart attack and die in the next 12 to 24 months.”
Doctors have to have that conversation.
People will realise their financial situation is leading to a heart attack.”
Patrick says that very few people like to pay attention to trending markers leading to terrible life events, whether with health, finance, or personal relationships.
He says people got very arrogant when times were good, but with no savings, they will go through rough times now, and some will experience pain because they’ll be on their company’s list for layoffs.
Patrick Bet-David:
“Imagine going to bed at night. That’s a scary place to be.
I will remind those same people that you were very arrogant a year and a half ago, bullying your employer for constant raises every 90 days.
And you were threatening to leave if they didn’t give you a raise.
You know who you are if you’re listening to this.
You did that.
Moving between jobs tells me you need to learn how to handle conflict but eventually quit.
You’re the problem, and it’s not the company. It’s not the organisation.
You have a negative attitude. You probably also get other people to quit. You suck the life out of the place.
There’s an issue with you.
You take five decisions out, and you’re in a different situation today.
And if your life is good, those decisions over the last five years would’ve helped you.”
Final Thoughts
Patrick Bet-David is a straight talker.
To be clear, he aims his argument at Americans who haven’t saved money.
He’s a vocal Republican who shoots from the hip and speaks his mind. Whatever your political stance, you have to admire his story, from practically coming from nothing.
And consider his advice.
Saving money was most likely a huge part of his DNA growing up, especially when he didn’t have much.
I think being an immigrant feeds you with a different mindset.
Being South African-born and living in the UK, I take less for granted and have also put saving money on a pedestal.
Maybe it was hardwired into me. I’m still trying to figure it out.
Patrick’s stance on Bitcoin is unemotional — he champions its value but warns saving money will help you survive.